Nearly 96 percent of enterprises at 17 processing and industrial zones in Ho Chi Minh City have resumed operations after over one month after social distancing measures were lifted, according to the HCM City Export Processing and Industrial Zones Authority (HEPZA).

More than 230,500 workers, or 80 percent of the total number, have returned to work. Notably, the rate hit 95-100 percent at some factories.

Businesses are currently recruiting more labourers, HEPZA Director Hua Quoc Hung said, adding that many factories are stepping up operations to meet demand and handle orders of their partners at home and abroad, particularly those in the year-end months.

The number of workers at the processing and industrial zones of the southern hub fully vaccinated against COVID-19 has reached 94.4 percent so far, showing that the city’s workforce has met requirements to bolster operations and production in the new normal.

The firms also stopped operating in the ‘three-on-site’ and ‘one route-two destinations’ models while continuing to apply  COVID-19 prevention and control measures in the new normal and boost economic recovery.

Earlier, HEPZA set up a temporary concentrated quarantine establishment at a research facility of the Institute of High Technology at the HCM City University of Technology (HUTECH). The facility is designed to receive COVID-19 patients with mild symptoms or asymptomatic patients.

There are two other quarantine sites at Thu Duc city’s Linh Trung 2 processing zone and Cu Chi district’s Dong Nam industrial park./.

Shares to continue gains but in narrow range

Analysts from securities companies said that there is still room for the VN-Index to increase this week but the index's gaining momentum will be narrowed.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) ended last week at 1,456.51 points, up 8.17 points, or 0.56 per cent.

It had gained a total of 0.85 per cent last week.

An average of 1.1 billion shares were traded on the southern exchange during each session last week, worth VND32 trillion (US$1.4 billion).

On the Ha Noi Stock Exchange (HNX), the HNX-Index inched up 5.22 points, or 1.24 per cent, to end last Friday at 427.64 points.

“After VN-Index surpassed 1,400 points, investor sentiment in the past week remained quite positive. However, short-term profit-taking also started to appear, so the index's gaining momentum will somewhat be narrowed,” said Vietcombank Securities Co Ltd (VCBS).

“Technical indicators show that some stocks are in overbought territory, a term that analysts use to refer to stocks that are traded above intrinsic value, which could cause oversupply. The market becomes stronger in the coming sessions,” it said.

VCBS said that investors can still hold a high proportion of stocks in the portfolio, and at the same time need to pay attention to risk management.

According to MB Securities Joint Stock Company (MBS), last week from November 1 to 5, the market went up sustainably in both points and liquidity, the VN-Index continued to maintain the gaining streak as it rose for the second consecutive week last week.

“Notably, the cash flow continuously shifted from real estate stocks to banking, securities, oil and gas stocks, and most likely continued to seaports, building materials, industrial real estate."

“It shows that the profit-taking cash flow has not left the market but is constantly looking for new opportunities, especially in speculative stocks," said MBS.

According to Saigon Securities Joint Stock Company (SHS), market liquidity last week set a new record, showing that the buying demand was significantly strong and the cash flow was still pouring into the market.

“Foreign investors were net selling more than VND2 trillion on the two bourses. However, from a technical point of view, the market is still in an uptrend with the target of around 1,550 points,” it said.

“Therefore, there is still room to increase this week, VN-Index may continue to increase to reach new highs, however, shaking sessions may occur during this progress,” it said.

In the negative scenario, if selling pressure increases, the VN-Index may need to retest the demand around the psychological threshold of 1,450 points, SHS stated.

Most of the major sectors had positive growth last week. Banking stocks gained the most with typical gainers of Military Bank (MBB) up 0.5 per cent, Asia Commercial Bank (ACB) up 1.5 per cent, Techcombank (TCB), rising 2.7 per cent, Vietinbank (CTG) gaining 3.8 per cent, Sacombank (STB) gaining 3.9 per cent, Lien Viet Post Bank (LPB) rising 10.8 per cent and Saigon-Hanoi Bank (SHB) up 12.7 per cent.

They were followed by financial, pharmaceuticals and healthcare stocks

On the other hand, oil and gas group decreased with falling stocks such as Petrovietnam Transportation Corporation (PVT), PetroViet Nam Coating JSC (PVB), Binh Son Refinery (BSR) and PetroVietnam Technical Services Corporation (PVS).

Ha Noi promotes all efforts to help enterpries restore operation amid COVID-19 impact

The capital city has been mobilising all efforts to support businesses in minimising impacts of the COVID-19 pandemic, overcoming difficulties, restoring and maintaining operations.

Accompanying and sharing difficulties with enterprises in the city, authorities in Ha Noi are implementing many drastic and synchronous measures to control the pandemic, ensuring “the health of enterprises is the health of the national economy”.

Secretary of Ha Noi Party Committee, Dinh Tien Dung, stressed the aim of putting businesses and people at the centre the city has been focusing on promoting administrative procedure reform, improving the business investment environment, solving difficulties and obstacles and removing bottlenecks and inadequacies in policies, mechanisms and administrative procedures to boost the fast and sustainable development of enterprises.

The city has determined “external force” from foreign investors as an important factor, while “internal force” from domestic enterprises is a decisive factor for the economy’s autonomy and sustainable development.

Ha Noi will also organise a dialogue conference with domestic enterprises to listen to and discuss their problems as well as receive recommendations, proposals, initiatives and experience so that the city can develop solutions to support, remove difficulties and promote business development, according to the official.

Vice President and General Secretary of the Ha Noi Small and Medium Enterprises Association (HANOISME), Mac Quoc Anh, highlighted the timely and drastic support of the Government and city authority.

He said in the context of the COVID-19 pandemic, the Government and the city authority have been very active in promulgating comprehensive fiscal and monetary policies.

Long-term policies have been issued, including those on reducing loan interest rates and business costs, developing the domestic market, promoting the connection of domestic enterprises, forming Vietnamese linkage chains, promoting and supporting enterprises in digital transformation.

“The promulgation of support policies for employees is really a timely and practical encouragement for them so it is highly appreciated,” Anh said.

However, he also pointed out some “gaps” in the implementation of such policies: “Although such support is considered to be useful, there is a long distance from the policies to their actual implementation, which requires solutions to make them come to life faster.”

“In some policies to support employees, most businesses do not benefit because the accompanying conditions are difficult for them to implement such as those related to the number of employees quitting jobs and the enterprise revenue. Policy on 0 per-cent interest rate in payment of wages for employees is considered the most difficult to access," said Anh.

Meanwhile, Chairman of Ha Noi Association of Key Industrial Enterprises, Le Vinh Son suggested the city should immediately have solutions to concretise Government’s Resolution No 128/NQ - CP creating conditions and opportunities for enterprises to recover and develop the whole economy. At the same time, it should speed up the disbursement of support packages for businesses.

For enterprises, Son said they should actively set up their own plans of operation to promptly deal with the developments of the COVID-19 pandemic, improve the quality of management, operations and the ability to cope with business “shock” in both internal and external situations.

Vice Chairman of Ha Noi People's Committee Nguyen Manh Quyen said the city has actively reviewed and urged the implementation of 22 projects that still faced obstacles. The city has so far completed the grant/adjustment procedures for nine projects and is expected to complete licensing procedures for the remaining 13 in the first half of November.

The city is also focusing on directing and speeding up the construction progress in at least 20 industrial clusters in 2021 and 18 industrial clusters in early 2022. It continues to apply and expand online public services in the direction of maximum support for enterprises, cooperatives and business households.

The city has issued Plan No. 246 on November 1, 2021, on safe, flexible economic recovery and adaptive development, and effective control of the COVID-19 pandemic in the fourth quarter of 2021, 2022 and 2023.

To fulfill the plan, Ha Noi will continue to focus on various targets including controlling the COVID-19 pandemic, improving the healthcare system, maintaining sustainable economic development, and ensuring budget balance.

It will also boost administrative reforms, improve investment and business environments, and establish special working teams to help remove obstacles for enterprises and increase the city's public investment.

Anh said Ha Noi has assigned tasks for departments and agencies as well as local authorities to focus on implementing the plans.

Accordingly, they should continue to actively survey, capture, record and synthesise problems and proposals of enterprises, focus on solutions and proposals to competent agencies to immediately deal with such problems.

The city and local authorities will also continue to focus on implementing the Government's regulations and policies on pandemic prevention and support businesses and people during the pandemic.

At the same time, promote the effective implementation of the city's work plans and programmes in 2021 and the period up to 2025, especially those related to the activities of enterprises.

Anh requested business enterprises coordinate with the city to maximise creativity in coping with difficulties to proactively implement production recovery strategies and plans associated with pandemic prevention and control ensuring business sustainability.

He appealed for the business community to co-operate with the city in the implementation of guidelines and policies to support workers to stabilise their living conditions and maintain work for their employers.

According to a report from the city's People's Committee, in the first 10 months of 2021, some 19,848 business enterprises were established, down 10 per cent, with a registered capital of VND275,152 billion, down 2 per cent. This figure has pushed the total number of businesses in the city to more than 320,000.

There were 2,566 enterprises carrying out procedures for dissolution, up 26 per cent, 11,034 enterprises registered to suspend operations, up 17 per cent and 9,144 enterprises resumed operation, up 76 per cent.

The GRDP in the first nine months increased by 1.28 per cent - the lowest level ever. The target of 7.5 per cent growth in 2021 is forecasted to be difficult to complete. 

Dong Nai helps workers return to work

Authorities and businesses in Dong Nai Province are making intense efforts to get back workers who returned to their hometowns when the COVID-19 pandemic was raging.

Many businesses in one of the South’s key economic hubs have huge orders to fulfil in the remaining months of 2021, and so have big demand for labour.

Almost all businesses in industrial parks have reopened, and around 86 per cent of workers there have returned to work.

Dong Nai is offering returning workers incentives such as prioritising vaccination so that they can return to work safely and cash support to help them rent houses for their families.

The province has also instructed local authorities to help businesses arrange workers’ transportation from their hometowns back to Dong Nai.

Dinh Sy Phuc, labour union chairman at shoe manufacturer Taekwang Vina Industrial JSC in the province’s Bien Hoa City, said his company is arranging to transport around 2,000 workers back.

He told Nguoi Lao Dong newspaper that it is offering incentives, including subsidising their transport and housing costs and helping them finding housing.

It is offering full salaries and gift packages for workers who are being treated for COVID or came into contact with infected people, including items such as foodstuff, health items, and milk and diapers for workers' families with infants.

Other companies are offering gifts and cash to workers to cover their transport and COVID testing costs, and financial support in case they contract the disease or were in contact with people who test positive.

Some companies such as Toyota Bien Hoa Co., Ltd., supplier of Toyota products and services in Dong Nai and Binh Duong provinces, were able to keep their workers through the pandemic.

Nguyen Thuy Trang, general director of the company, said the company had good short- and long-term policies for its staff such as full salary payment, financial aid for struggling workers and their families, offering accommodation for staff faced with COVID risks, and keeping in touch with employees to know about their problems.

“Our policies helped our workers feel assured. We treat them like our partners, and so we always work together to overcome difficulties in our business and society.”

The province department of Labour, War Invalids and Social Affairs has also been quick to offer financial support to help the company pay workers who have temporarily stopped working due to the pandemic, she said.

According to Dong Nai Employment Service Centre, businesses in the province want to employ around 50,000 new workers by the end of the year.

Dong Nai is the country’s third biggest COVID hotspot with over 68,000 cases as of November 4.

But more than 72 per cent of its adult population has received two shots of vaccines.

On October 15 the province was designated as being at ‘low risk’ of COVID. 

Over 98 percent of financial aid delivered to pandemic-hit workers

As of November 5, more than 21.851 trillion VND (965.5 million USD) of the almost 22.29 trillion VND, equivalent to 98 percent of the approved amount, in financial support has been delivered to over 9.1 million out of nearly 9.4 million pandemic-hit workers applying for help, according to the Ministry of Labour, Invalids and Social Affairs (MoLISA).

MoLISA Deputy Minister Nguyen Ba Hoan released the information at the press conference following the Government's regular October meeting on November 6.

Detailing the aid disbursement for workers and employers affected by the COVID-19 pandemic, he said relevant agencies have decided to delay or reduce the insurance contribution by 363,600 establishments with 9.68 million workers. Their insurance contribution will be cut down by about 9.595 trillion VND between October this year and September 2022.

The COVID-19 pandemic affected 9.1 million workers aged 15 and above in the first quarter (Q1), 12.8 million in Q2, and 28.2 million in Q3.

In Q3 alone, 4.7 million people lost their jobs, 14.7 million had to suspend production or business activities, 12 million suffered from working hour cuts or furlough, and 18.9 million earned less income, according to the official.

He added the number of people with jobs in Q3 was 47.2 million, down nearly 2.6 million from Q2 and 2.7 million from the same period last year, which was also the lowest figure in many years.

The monthly per capita income dropped to 5.2 million VND in Q3, down 877,000 VND from the previous quarter and 603,000 VND year on year.

There was a labour shift from urban to rural areas and from big economic centres to provinces. The restriction of worker flows among localities has led to a risk of labour shortages in certain regions and industries once economic activities are resumed, Hoan pointed out.

He added to prepare a sufficient workforce for production and business resumption, the Government will increase measures ensuring social security for workers, assist them to return to work, and boost connecting labour supply and demand./.

Reference exchange rate down 10 VND at week’s beginning

The State Bank of Vietnam set the daily reference exchange rate at 23,123 VND/USD on November 8, down 10 VND from the last working day of previous week (November 5).

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,816 VND/USD and the floor rate 22,429 VND/USD.

The opening-hour rate at commercial banks remained stable.

At 8:30 am, Vietcombank listed the buying rate at 22,540 VND/USD and the selling rate 22,770 VND/USD, unchanged from November 5.

BIDV also kept both rates unchanged at 22,575 VND/USD (buying) and 22,775 VND/USD (selling).

During the week from November 1-5, the daily reference exchange rate fluctuated variably but ended the week down 7 VND from the beginning of the week./.

Vietnam, France promote cooperation in green, circular economy

Vietnamese Minister of Natural Resources and Environment Tran Hong Ha has highly valued initiatives of France’s Bureau Veritas company in building a sustainable future in Vietnam and the world at large.

The minister made the praise at a recent meeting with leaders of Bureau Veritas, where the two sides discussed solutions to respond to challenges caused by climate change and reduce carbon emissions in Vietnam by 2050.

The meeting took place within the framework of Prime Minister Pham Minh Chinh’s trip for attending the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow, Scotland, a working visit to the UK and an official visit to France.

Ha said Vietnam has chosen a sustainable and positive approach, towards the green and circular economy.

The two sides sought ways to boost strategic cooperation for sustainable development, and exchanged views on challenges facing Vietnam on its path towards the goal of net-zero emissions by 2050.

The company's leaders expressed their hope for cooperation opportunities with the Vietnamese Government in fulfilling the target of cutting carbon emissions.

Established in 1828, Bureau Veritas is global leader in Testing, Inspection and Certification (TIC) services.

The company has carried out investment projects in Vietnam over the past 25 years. It now employs more than 1,000 employees and has 10 offices and labs in the Southeast Asian country./.

Credit packages proposed for social housing development after pandemic

One of the most important hurdles to restoring the economy after the COVID-19 pandemic is further investment in social housing development, especially for workers in industrial zones, according to the Ministry of Construction (MoC).

To this end, the Ministry of Construction (MoC) has proposed the Prime Minister put forward two credit packages, with a total value of 65 trillion VND (2.82 billion USD), for social housing development, as part of a programme of socio-economic recovery after the COVID-19.

Ha Quang Hung, Deputy Director of the Ministry of Construction Department of Housing Management and Real Estate Market, said: “A credit package of 15 trillion VND is under the medium-term public investment plan 2021-2025 to develop social housing products.

“The second credit package of 50 trillion VND will be refinanced by the State Bank, with appropriate interest rates and terms for commercial banks, to give preferential loans to developers of housing projects for industrial parks (IPs) that workers lease; investors of social housing projects for sale, lease, or hire-purchase; and workers at industrial zones borrowing to buy or lease housing.”

According to the ministry, social housing is in dire need of support, particularly in areas that house workers near industrial parks, especially in the southern localities such as Ho Chi Minh City, Binh Duong, Dong Nai and Long An.

Le Hoang Chau, Chairman of the Real Estate Association of HCM City, said at present, only 8 percent of IPs and export processing zones (EPZs) in HCM City have accommodation for workers, while workers of the remaining IPs and EPZs must rent housing outside, causing difficulties in pandemic prevention.

“The Government has issued the Resolution 128 providing temporary guidance on "Safe adaptation, flexibility and effective control of the COVID-19 pandemic" to support for recovery of the economy, including the real estate market. However, real estate businesses, including social housing investors, expect the State to have specific solutions. We do not request financial support, we just need solutions on solving difficulties caused by overlapping regulations,” Chau said.

Vietnam has had a policy on developing social housing products for workers for ten years, but when the pandemic began it found that workers have not benefited yet, according to expert Vu Dinh Anh.

"Therefore, Vietnam needs to continue the policies on developing housing areas for workers in the next few years. If the housing security for workers is ensured, we will not see tens of thousands of workers without work and money moving thousands of kilometres back home, as happened recently," Anh said.

The credit packages aim at promoting investment in social housing aimed at workers in urban areas, especially employees and workers working in industrial parks, Deputy Minister of Construction Nguyen Van Sinh said.

According to Sinh, the additional credit package aims to ensure the 'dual goals' of social security and housing for the disadvantaged while promoting economic recovery and removing difficulties for businesses in housing development and the real estate market.

With preferential policies, the State encourages all economic sectors to invest in building social housing products to help workers and employees in IPs improve their quality of life and accommodation conditions.

The MoC has also suggested that the People's Committees of provinces and centrally-run cities coordinate with the ministry in reviewing progress and conditions, and compiling a list of eligible projects for loans.

Priority will be given to investors of social housing projects that have been approved but delayed due to lack of capital.

The MoC has proposed that localities begin planning for investment projects, especially housing products for workers and employees in IPs.

The localities need to review and add housing projects for workers of IPs into the local five-year and annual housing development programmes and plans. They should also have specific mechanisms and solutions to create favourable conditions and administrative procedures to attract investors.

In addition, investment in essential infrastructure, such as schools, kindergartens, medical treatment facilities, cultural, training and sports facilities, both inside and outside social housing projects, needs to be paid attention to. According to the Ministry, some localities have not paid much attention to formulating plans to develop social housing projects in those areas.

The ministry also urged the Government to propose the National Assembly add social housing projects, including those to develop homes for workers in industrial parks, to the mid-term public investment plan in the 2021-2025 period.

Vietnam needs an estimated 220 trillion VND (9.6 billion USD) to build about 294,600 units of social housing for low-income earners in urban areas and industrial parks in the 2021-2025 period, according to the ministry.

Low-income people in urban areas need about 131,100 units with a total investment of about 138 trillion VND.

Vietnam has 266 completed social housing projects with more than 142,000 units, totalling more than 7.1 million sq.m, Sinh said. Another 278 social housing projects on a total area of 13.8 million sq.m with 274,000 units are under development./.

 

15-year WTO membership: Vietnam affirms position in international integration

Since Vietnam joined the World Trade Organisation (WTO) 15 years ago, the country has made big strides on the path of international integration, confidently joining the global playground.

With 17 free trade agreements (FTAs) whose negotiations have been completed or underway, Vietnam has become an open economy with a trade to GDP ratio of up to 200 percent.

According to the Agency of Foreign Trade under the Ministry of Industry and Trade (MoIT), Vietnamese firms have maximised advantages to boost exports and penetrate into new markets.

The country’s total export-import value rose from 84.7 billion USD in 2006 to 545.3 billion USD last year. In the first 10 months of this year, the figure was 537.31 billion USD.

Vietnam has always recorded a trade surplus, from 1.77 billion USD in 2016, to 2.1 billion USD in 2017, 6.8 billion USD in 2018, 10.9 billion USD in 2019 and 19 billion USD in 2020.

The structure of exports has been improved significantly, with the turnover of processed industrial goods increasing from 80.3 percent in 2016 to 85.1 percent in 2019 and 85.2 percent last year.

Deputy Minister of Industry and Trade Tran Quoc Khanh cited a report by the WTO last year as saying that among the top 50 merchandise traders, Vietnam recorded the biggest increase in the world's rankings, leaping from the 39th place in 2009 to the 23rd position in 2019.

The numbers reflect that Vietnam is an open economy after joining the WTO and seriously realising its commitments, he stressed.

Moreover, the signing and implementation of FTAs have helped the country attract more foreign direct investment (FDI), creating momentum for the national economy, the official added.

Ngo Chung Khanh, Deputy Direrector of the MoIT’s Multilateral Trade Policy Department, said apart from reducing administrative procedures, the ministry will continue with the communication work to raise domestic firms’ awareness of the FTAs.

Notably, the ministry will speed up the building of the FTA Portal (FTAP), he said, adding that more than 20 ministries and agencies will join a working group to operate and upgrade the portal.

Deputy Minister Khanh affirmed that Vietnam will further promote trade policies comprehensively and synchronously to boost economic development in tandem with sustainable development.

Vietnam will work harder to effectively implement the present international commitments and FTAs, while seeking potential partners to conduct negotiations on new FTAs, thereby helping to expand trade ties in the future, he said./.

Vinfast obtains US$20.5-million tax credit for operation in California

The California Governor's Office of Business and Economic Development (GO-Biz) has granted VinFast US$20.5 million worth of tax credit, the Vietnamese automobile manufacturer said on November 5.

Vinfast has committed to investing more than US$200 million in establishing its US subsidiary in the state and creating at least 1,065 full-time jobs.

The granted sum comes from the California Competes Tax Credit (CCTC) – an income tax credit available to businesses that want to locate or stay and grow in California. Accordingly, businesses of any industry, size, or location compete for over US$180 million available in tax credits by applying in one of the three application periods each year. Applicants will be analysed based on 12 different factors of evaluation, including number of full-time jobs being created, amount of investment, and strategic importance to the state or region.

Recently, Vinfast, established in 2017, has announced its plan for the global debut of VF e35 and VF e36 electric SUV models at the 2021 Los Angeles Auto Show, which runs from November 19 to 28. This global premiere marks the official introduction of the VinFast electric vehicle brand to the North American market, with pre-order beginning in the first half of 2022.

Businesses equipped with knowledge about RCEP

Domestic businesses were provided with more information about the Regional Comprehensive Economic Partnership (RCEP) at a conference held virtually in Hanoi on November 5.

The event was co-hosted by the Vietnam Chamber of Commerce and Industry (VCCI) and the Central Institute for Economic Management (CIEM), with the support of the Aus4Reform Programme – the Australian Embassy in Vietnam.

Speaking at the conference, Nguyen Thi Thu Trang, Director of the VCCI’s Centre for WTO and Economic Integration, cited a survey conducted by VCCI last year unveiling that only 23% of Vietnamese enterprises have fairly good understanding of FTAs.

VCCI will roll out more information providing activities to help local firms get an insight into the deal and guide them how to optimise its opportunities in specific sectors, she said.

Nguyen Anh Duong, Director of the CIEM's Department for General Economic Issues and Integration Studies, pointed out impacts of the agreement on Vietnam’s economy and the operation of local businesses.

On this occasion, the organizers introduced a business manual on the RCEP complied by VCCI with the support of the Aus4Reform Programme.

De Heus acquires Masan’s feed business, strengthens strategic position in Vietnam

De Heus Vietnam on November 5 announced the signing of a strategic agreement with Masan, pursuant to which De Heus will obtain control of 100% of the feed related business of MNS Feed (100% ANCO and 75.2% Proconco).

The feed business of MNS Feed covers 13 animal feed mills and one premix plant, with a total combined production capacity of nearly 4 million tonnes, strengthening De Heus’ position in Southeast Asia’s largest animal feed market. As part of the transaction, De Heus and Masan have also entered into multiple long term strategic supply agreements for the supply of feed and pigs by De Heus to Masan.

The transaction allows both companies to optimize and drive productivity of Vietnam’s 3F (feed-farm-food) animal protein value chain, by leveraging on each respective parties’ strength and capabilities.

As a growing family business in animal nutrition, De Heus is strongly committed to support and contribute to the sustainable production of safe and healthy feed and food. It has the ambition to be a strong partner in the farming value chain, enabling farmers and dealers to grow sustainably. The acquisition of MNS Feed supports De Heus’ focus on and ambition to offer high-quality nutrition, genetics, and farm management solutions to the Vietnamese market.

A promising future is ahead for the combined feed organisation of De Heus and MNS Feed, which will become the largest animal nutrition company active in the Vietnamese independent feed market. The combination will bring together the rich history, knowledge, and expertise of both organisations: De Heus’ more than 100 years of nutritional experience and more than a decade of dynamic growth in Vietnam, and MNS Feed as a pioneer in animal nutrition with successful heritage brands.

Johan van den Ban, General Director De Heus Vietnam and Cambodia commented: “Looking ahead, De Heus will continue to develop new value chain initiatives, focused on safeguarding product quality and improving the position of the livestock and aquaculture farmers and dealers. This transaction will accelerate the implementation of our commitment to bring the animal protein value chain in Vietnam to a higher level in terms of food safety, productivity, and sustainability. Together with the independent farmers, our feed distributors, employees and strategic partners we are ready for further growth and success.”

The transaction will take effect upon receiving the customary regulatory approval (expected in 2021).

Retail of goods, service revenues enjoy positive growth

Retail of goods has seen positive growth in the first ten months of this year, reported the Ministry of Industry and Trade (MoIT)’s Department of Domestic Markets.

As many provinces and cities across the country have entered a new normal, a number of wet markets have resumed operations. Travelling and circulation of goods have become easier.

Apart from winter apparel, the demand for household appliances and stationery have also increased following a social distancing period, pushing up the October retail of goods and service revenues by 18.5% month-on-month.

In the structure of retail of goods and service revenues, retail accounted for the largest share with 82.8%; lodging and dining services, 8.3%; tourism 0.1% and other services, 8.8%.

Between now and the year-end, the MoIT will step up the distribution of goods, especially necessities to meet public demand, launch domestic consumption stimulation programmes like nationwide discount month, mobile selling points and market stabilisation.

It will also continue with supply-demand connectivity and trade promotion activities at home, make full use of e-commerce and launch the domestic market development strategy and project till 2030 with a vision to 2045.

Korean semiconductor manufacturer to pour US$1.6 billion in Bac Ninh

The Republic of Korea’s Amkor Technology, Inc. will embark on the first-stage construction of its plant at Yen Phong II-C Industrial Park (IP) in the northern province of Bac Ninh in the first quarter of next year, said provincial authorities announced on November 5. ​

Accordingly, the Korean company will invest US$1.6 billion between now and 2035 to build a plant to manufacture, assemble and test semiconductor products on a site of 23ha in the IP.

In the first quarter of 2022 and the first five years, it will pour US$520 million into assembling and testing solutions for the world’s leading electronics and semiconductor manufacturers.

The provincial authorities pledged to offer all possible support for the project to put into operation on schedule.

According to the provincial Department of Planning and Investment, Bac Ninh granted new licences to 108 projects with a total registered capital of over US$535 million from the beginning of this year to October 18.

It also recorded an additional US$132 million invested in 76 existing projects and more than US$145 million in capital contributions and share purchases. The province revoked 35 projects worth over US$223 million .

As of October 18, Bac Ninh had granted licences to 1,704 valid foreign projects valued at more than US$20.4 billion.

Third Industry 4.0 Summit and Expo to be held

The third Industry 4.0 Summit and Expo themed “Accelerating modernisation and industrialisation in digital era” will be held both online and offline from November 9 to December 6.

Chairing a press conference in Hanoi on November 5, Vice Chairman of the Party Central Committee’s Commission for Economic Affairs Nguyen Duc Hien said the event will be hosted by the International Events & Consulting (IEC) Group.

Attracting over 2,000 delegates at home and abroad, the event has become one of the annual largest-scale forums on Industry 4.0 in Vietnam. This year, it is expected to serve strategy planning and contribute to post-pandemic economic development in the new normal in accordance with conclusions of the fourth plenum of the 13th Party Central Committee and the Prime Minister’s directions.

The summit will be chaired by leaders of the Party, National Assembly and Government on December 6 while a series of 10 thematic seminars will be held throughout November.

It will focus discussions on the industrialisation and modernisation strategy till 2030 with a vision to 2045, reports on industrialisation in th edigital era, the future of the global economy in the post-pandemic period, innovation – key to recovery and development, and national digital transformation towards the digital economy and society.

Thematic seminars will feature new approaches to industrialisation and modernisation, smart production and smart urban development, green and new energy, new business models, building e-government towards digital government, development of digital infrastructure and human resources, digital transformation in agriculture and rural development, and smart banking.

The event is expected to draw about 100-150 delegates to the International Convention Centre and over 2,000 others online via 63 locations in all cities and provinces and other venues at home and abroad.

Activities on technology investment connectivity are also planned to seek business cooperation opportunities.

Vietnamese exporters advised to grasp opportunities in EU market

The recovering European economy together with higher demand is providing Vietnamese enterprises with opportunities to promote exports and optimise advantages from the EU-Vietnam Free Trade Agreement (EVFTA), and speeding up the recovery of production and business activities.

The experts gathered at an online conference on November 5 in Ho Chi Minh City to discuss prospects and solutions to promote exports to the EU market in the new context.

They held that the EU is facing a first-ever shortage of goods, as many suppliers are struggling with COVID-19, while logistics costs are rising and demand is increasing in the rest of the year.

Therefore, they advised Vietnamese exporters to grasp this chance to conquer the EU market.

Nguyen Thao Hien, Vice Director of the Department of Europe-America Markets under the Ministry of Industry and Trade, said that the biggest advantage in the EU is preferential tariffs from the EVFTA.

However, the advantage will not last for a long time as the recovery process of the EU will take place in a short time. Moreover, many other countries in the region have been negotiating free trade agreements with the EU, increasing pressure of competition, they said.

They asserted that despite difficulties after a social distancing period, Vietnamese businesses should focus their resources to recover production and make full use of the current opportunities.

Vu Chien Thang from the Vietnam Trade Office in Spain held that after the pandemic, European consumers have prioritised smart products, food safety and products of clear origin that are traded through e-commerce platforms.

Lawyer Dinh Thi Anh Tuyet from the Vietnam International Arbitration Centre asserted that as businesses have to grasp all opportunities to seek orders, the signing of trade contracts should be carefully considered to avoid legal risks.

Vietnam’s rice export price outstrips Thailand’s

The export price of Vietnamese 5% broken rice has surged recently, surpassing that of Thailand and other Asian rice exporters such as India and Pakistan.

Specifically, Vietnam’s export price of 5% broken rice is being traded at US$438 per tonne, while the price of the same rice type of Thailand, India, and Pakistan hovers at US$373, US$358, and US$363 per tonne, respectively.

Tran Chi Hung, director of Hau Giang province’s Department of Agriculture and Rural Development, stated that rice prices have already inched up and are poised to reach stable high levels in the future.

According to a number of rice exporters, the price of several rice varieties, especially fragrant and specialty rice, is forecast to increase moving forward.

At present, Vietnamese enterprises have exported approximately five million tonnes of rice worth US$2.6 billion.

With difficulties faced in the transportation of rice for export gradually removed, local businesses have been primarily focusing on delivering rice orders that were previously stuck due to the COVID-19 pandemic.

Foreign markets have also returned to place additional export orders, which will duly contribute to boosting Vietnamese rice exports in the near future.

Danish enterprise invests in garment-for-export factory in An Giang

Specter Real Estate A/S Company of Denmark began construction on the Specter An Giang Garment Technology on November 6 at the Binh Hoa Industrial Park in Chau Thanh district, An Giang province.

The factory has received total investment capital of roughly US$11 million and is anticipated to produce an array of high-tech garments, with an expected annual production capacity of two million products.

When coming into operation in January 2024, Specter An Giang Garment Technology Project will create jobs for over 1,200 local workers.

Nguyen Thanh Cuong, head of An Giang province’s Economic Zone Authority, said that Specter Real Estate A/S is a 100%-Danish invested company which specializes in manufacturing outdoor sports apparel for export to Europe, North America, and Japan.

Specter Real Estate A/S Company has developed two garment technology projects in Thai Binh and Nam Dinh provinces, and the new factory in Binh Hoa Industrial Park will be the company's third project in Vietnam.

The Specter An Giang Garment Technology Project is anticipated to bring about huge benefits to investors, positively improve industrial production value and the export value of goods, as well as to accelerate socio-economic development throughout the region.

Viet Nam faces slow economic recovery: VEP

The pandemic has hit Viet Nam harder than previously anticipated and recovery will likely be slow.

Strong and effective measures are needed in the last quarter of 2021 and the beginning of 2022 to check the spread of the virus and to address the country's numerous economic bottlenecks, according to the National Centre for Socio-Economic Information and Forecast (NCIF) under the Ministry of Planning and Investment (MPI).

"The pandemic has also exposed shortcomings and limitations in Vietnamese firms' management capacity and the ability to absorb and adapt to disasters," said Tran Toan Thang, NCIF's senior official at the Viet Nam Economic Pulse (VEP) - a semi-annual forum analysing trends and exploring emerging issues in economics and policymaking - held yesterday in Ha Noi.

Thang said the fourth virus outbreak has severely disrupted Viet Nam's socio-economic activities, especially in major industrial hubs in the north and the south. It has resulted in the MPI's recent forecast for economic growth this year capped at 1.5-2 per cent in the best-case scenario.

The worst-case scenario, according to the MPI, was at 0.8 per cent if the country failed to rein in the virus. A more optimistic outlook for 2022 was shared by the MPI, which projected Viet Nam's 2022 GDP growth at 5.8-6.7 per cent.

Economists continued to urge the government to speed up vaccination and double down on virus control. Meanwhile, urgent and meaningful measures must be taken to support the business community.

Vo Tri Thanh, former deputy head of the Central Institute for Economic Management, said the government's mission objectives during the pandemic included carrying out economic reform and restructuring, implementing policies to attract greater and high-quality FDI and speeding up the digitalisation process.

Jonathan Pincus, a senior economist from the United Nations Development Programme (UNDP), said it was time Viet Nam starts restructuring its financial institutions. The country must also form new bodies to provide long-term financial support for the development of infrastructure and national competitiveness.

Pincus said if Vietnamese firms failed to compete on their home turf and on an international level it's unlikely the country would see improvements in saving and investment.

Viet Nam's long-term goals should focus on raising labour productivity and improving the business environment. Post-pandemic economic recovery should be considered and utilised as an opportunity to restructure, to roll out radical policy changes and adjustments to government management of the economy.

Another key area is speeding up public investment, especially digital infrastructure and digitalisation projects.

The forum this year highlighted the developments in international finance in the wake of COVID-19 and opportunities for Vietnamese firms to leverage global value chains to raise productivity and profits. 

EVFTA implementation creates momentum for Viet Nam-EU ties

The implementation of the EU-Viet Nam Free Trade Agreement (EVFTA) from August last year has created a new impetus for Viet Nam-EU relations.

The deal has opened up vast co-operation opportunities, promoted trade and investment connectivity for business community and citizens, said Deputy Foreign Minister Dang Hoang Giang at a seminar reviewing one year of EVFTA implementation.

The Ministry of Foreign Affairs co-ordinated with the Ministry of Industry and Trade to organise the seminar in Ha Noi on Thursday.

The total two-way turnover between Viet Nam and the EU reached US$41.29 billion in the first nine months of this year, up 13.4 per cent over the same period last year, of which, exports reached $28.85 billion, up 11.7 per cent.

The above result is very meaningful amid the COVID-19 pandemic, which has negatively affected economic and trade activities of countries.

Deputy Minister Dang Hoang Giang affirmed that the Ministry of Foreign Affairs and Viet Nam's diplomatic missions in the EU would continue to participate, contribute and accompany agencies and businesses in implementing the EVFTA and the country's integration strategy in the new period.

In the opening speech, Deputy Minister of Industry and Trade Tran Quoc Khanh also emphasised that the positive results after one year of implementing the EVFTA have met the expectations of the set trade turnover.

After a year, the export turnover of Viet Nam's goods to the EU market using the form of certificate of origin for the EU market reached a relatively high rate at nearly $8 billion, showing that many businesses have paid attention and made good use of tariff reduction incentives in the agreement.

An assessment of the Viet Nam Chamber of Commerce and Industry revealed that the level of understanding and expectations of enterprises for the EVFTA was relatively high compared with other FTAs ​​which have been in effect.

Thirty per cent of surveyed enterprises closely understand information about EVFTA commitments compared to an average of 22.95 per cent in other FTAs.

Luong Hoang Thai, director of the Multilateral Trade Policy Department, Ministry of Industry and Trade, said that thanks to the EVFTA, two-way trade turnover between Viet Nam and the EU has grown in a more sustainable direction, both in terms of quality and quantity, with both exports and imports achieving positive results.

Agricultural products, textiles, and fishery are industries that have taken advantage of opportunities from the agreement, he said.

In addition to the opportunity to expand and diversify the market, the EVFTA also gives Viet Nam the opportunity to reform institutions, enhance transparency, improve the business and investment environment and transform the product structure towards the exports of high value-added products.

At the talks, ambassadors and trade counselors provided useful information about the market, consumption trends in some EU countries, and trade promotion events.

However, the fact that the competitiveness and level of deep participation in the value chain of Vietnamese enterprises are still limited; exports have not been combined with high-tech investment co-operation to produce and distribute products.

Representatives of enterprises suggested that management agencies continue to improve mechanisms and policies to support enterprises to improve their capacity, access information and preferential policies, and innovate production methods towards sustainability.

Companies also hoped that the representative agencies would strengthen the provision of information about the market, have a plan to co-ordinate in promoting the national brand image, and promote trade promotion activities synchronously in European regions.

Research on the one-year implementation of the Europe-Viet Nam Free Trade Agreement (EVFTA) was launched at a workshop in Ha Noi on Wednesday.

The study, entitled “One Year Implementation of EVFTA: Impacts on the Vietnamese Economy and Policy Formation", was implemented by the Viet Nam Institute for Economic and Policy Research (VEPR) with support of Konrad Adenauer Foundation (KAS) Viet Nam.

Along with bright spots during one year of the implementation of the agreement, in general, Vietnamese firms have still faced many difficulties in making full use of the deal.

Addressing the event, Associate Prof. Dr. Nguyen Anh Thu, VEPR Director, said that the legal system of Viet Nam was being changed positively to meet requirements of the deal.

However, Thu held that Viet Nam was facing many challenges from both inside and outside. She advised businesses to be more active to improve their capacity and products’ quality to deeper engage in the global supply chain.

Meanwhile, Pham Van Long, a representative from the research team said that among eight businesses involved in the research, only two said that they saw rises in export revenue from the EU thanks to increasing orders, and the remainder said that they suffered a reduction.

He said that the reasons behind the situation were tighter export conditions and higher logistics costs due to impacts of COVID-19.

In general, the EVFTA is one of the new generation FTAs that brings about strategic benefits to Viet Nam through the development of the promising trade and investment partnership with one of its biggest and most important partners.

Due to COVID-19, the effectiveness of the deal is remarkably restricted. One year since the deal become effective on August 1 last year, export value of goods might reach $51.04 billion, up 12.27 per cent in case of no COVID-19 and no tariff reduction, and 36.28 per cent compared to the same period in the previous year.

Participants at the event proposed a number of recommendations on the reform of administrative procedure to make more favourable conditions for businesses in taking advantages of the EVFTA. 

Int'l conference highlights digital transformation for smart cities, businesses post-pandemic

The COVID-19 pandemic has resulted in an unprecedented upheaval worldwide and ushered a "new normal" way of conducting sustainable business during the global crisis, Dr Nguyen Minh Ha, president of HCM City Open University, said at online two-day conference held on November 4 and 5.

“In several industries such as public services, healthcare, finance and retailing, businesses and organisations have had to transform how they engage with customers and clients through digital platforms,” Ha said.

“Governments and businesses are increasingly accelerating digital transformation, tapping into technologies and adopting innovative solutions specifically designed to help build intelligent businesses and smart cities in the new normal,” he added.

The Vietnamese government has prioritised digital transformation as a key strategy to fully exploit opportunities offered by the technology revolution and attain sustainable socio-economic development.

In the coming months and years, businesses that can capitalise on digital technologies and smart solutions will thrive in the new normal.

The 4th International Conference on Business with the theme of "Digital Transformation for Smart Business - Smart City in a Post-Pandemic World" aimed to bring together leading academic researchers, scholars and practitioners to an interesting knowledge-sharing and exchange event.

The conference was organised by the HCM City Open University in conjunction with the University of Economics HCM City, the United Nations Industrial Development Organization, Berlin School of Economics and Law in Germany, University of Rouen and University of Paris 13 in France, International Association of Sustainable Tourism Management, Solvay Brussels School of Economics and Management in Belgium, and University of International Studies of Rome in Italy.

In the conference, four panel or industry talk sessions were held to open discussion among the panellists and participants. The topics of the sessions included re-imaging marketing in the next normal, optimisation in supply chain management, and smart city approach to support the start-up ecosystem.

In the discussion session of the smart city approach, delegates said that start-ups have had many development opportunities, especially technology-driven businesses.

Shankar Subramanian Iyer, researcher at Australia’s S. P. Jain School of Global Management, said that digital transformation has had a huge impact on society, organisations and people. Companies are struggling to adapt to new technologies, he said, adding that Blockchain has the potential to transform business models and processes.

Governments should adapt to changes in technology and provide the right regulations to guide its usage, he said.

Training workshops can enhance the usage and acceptance of Blockchain for government policymakers, lawmakers, the judiciary, regulators and key stakeholders in the private sector.

The regulatory framework also needs to protect user’s data and Blockchain technology usage, he said. 

Trade cooperation provides momentum for Viet Nam-US ties

The relations between Viet Nam and the US would continue to grow stably in the future, with economic and trade cooperation the centre and key momentum of bilateral ties, Vietnamese and US officials said.

Deputy Minister of Industry and Trade Do Thang Hai, also Vice Chairman of the Viet Nam-US Trade and Investment Framework Agreement (TIFA) Council, and Dawn Shackleford, Assistant US Trade Representative (USTR) for the Office of Southeast Asia and the Pacific, shared the view during their working session in Ha Noi on Thursday.

Hai said Viet Nam always considers the US a leading important partner and hopes the economic and trade ties will develop stably and sustainably, and serve as a pillar of the Viet Nam-US comprehensive relationship.

The deputy minister highlighted joint efforts in rolling out an action plan towards harmonious and sustainable trade with strong measures, contributing to building strategic trust between the two nations.

Viet Nam supports fair trade and has no intention to impose any measures that would cause discrimination, place a burden on trade activities, or harm the production and labourers in the US, he said.

The Vietnamese Government will continue to cooperate with US partners to address issues of shared concern in a comprehensive manner, thus maintaining stable trade ties, towards harmonious, sustainable and mutually beneficial trade balance, Hai pledged.

As Vice Chairman of the TIFA Council, Hai called on the US to issue objective and fair assessments in line with WTO rules during investigations into trade remedies.

He welcomed the US’ recommendations on Viet Nam’s legal framework, which he said helped to create an open business environment and bring benefits to both sides.

For her part, Shackleford highly valued the Ministry of Industry and Trade (MoIT)’s views on fair trade and acknowledged results of substantive, effective policy dialogues between the two countries.

She said issues relating to economy, trade and rights of labourers will be priorities under President Joe Biden's administration, and the USTR will continue to hold working programmes with Vietnamese ministries and agencies within the dialogue framework of the TIFA.

According to the European-American Market Department under the MoIT, Viet Nam’s export value to the US expanded 230 per cent over the past five years, while the US’ exports to the Southeast Asian nation increased more than 175 per cent.

The US has become Viet Nam’s biggest buyer and Viet Nam is also the US’ 10th biggest trade partner.

Statistics from the General Department of Viet Nam Customs show that this year to September, two-way trade reached US$80.6 billion and the figure is expected to hit $100 billion this year.

Plastic companies experience worst quarter due to high material prices and COVID-19

Many plastic enterprises witnessed strong declines in revenue and profits in the third quarter of the year due to higher raw material prices and disruptions in production and business activities caused by the COVID-19 pandemic.

At the online meeting on the third-quarter business results of Binh Minh Plastic JSC (BMP), General Director Nguyen Hoang Ngan admitted that this year’s third quarter was a bad record in 44 years of operation, with all three months posting losses.

This was the first quarterly loss since it was listed on the stock market in 2006, with a consolidated loss of nearly VND26 billion (US$1.14 million). In the same period last year, it posted a profit of VND153 billion.

During the period, its output was only 11,000 tonnes, down 59 per cent year-on-year. The fall was due to production suspension after HCM City applied social distancing. Its two key factories in Binh Duong and Long An provinces have a total capacity of 120,000 tonnes/year, but during that period, they could only run at 15-20 per cent.

Bao Viet Securities Company (BVSC) said that the third quarter of 2021 was an extreme quarter for Bao Minh as the price of raw materials increased, revenue decreased and the “three-on-site” model resulted in more expenses, including allowances for workers, medical tests and on-site accommodation.

As of September 30, Bao Minh Plastic’s revenue reached VND3.1 trillion, down 8 per cent, with profit after tax down 75.7 per cent to VND99.8 billion.

Higher raw material prices since the beginning of 2021 have created huge pressure for businesses in the plastics industry. Bao Minh Plastic leaders said that the prices of plastic materials increased sharply in May, then fell slightly, but have now rebounded.

Last year, the average price of plastic raw materials was about $1,000/tonne, but in 2021 it could rise to $1,600/tonne due to the influence of supply and difficulties in transportation.

Tien Phong Plastic JSC (NTP) said that its third-quarter profit still posted a big fall after adjusting the selling price due to a rise in raw material costs.

Of which, Tien Phong Plastic recorded consolidated revenue of VND1.01 trillion, down 15 per cent over last year, while its consolidated profit after tax slid by 43.6 per cent to VND77.7 billion. The company said that the reduction in interest expenses and other operating expenses helped increase profit after tax by VND24 billion, but a decrease of VND176 billion in sales caused profit after tax to fall VND53 billion.

In the first nine months, Tien Phong Plastic’s revenue was nearly VND3.4 trillion and profit after tax was VND347.7 billion, up 1 per cent and 2 per cent year-on-year, respectively.

Similarly, the pressure of rising input costs and struggles in operation due to COVID-19 caused Da Nang Plastics JSC (DPC) to record a fall in revenue and profit after tax by 43 per cent and 62 per cent, respectively to only VND8.21 billion and nearly VND543 million.

For the first nine months of 2021, Da Nang Plastic’s revenue slid by 27 per cent in revenue to VND39.4 billion, but profit after tax still rose 40 per cent over last year to VND6.06 billion. This was thanks to high profit in the first quarter, which was mainly due to cost savings.

Bao Minh Plastic has prepared all resources to return to production, Ngan said. As of October 19, about 98 per cent of the company's employees have received the first dose of the COVID-19 vaccine and 92 per cent the second dose. The rate of workers ready to return to work was 95 per cent.

The general director added that revenue is showing signs of improvement as in the first 20 days of October, it recorded an average daily revenue of about VND21 billion. This motivates Bao Minh Plastic to expect better business results in the fourth quarter of 2021.

However, the pressure of raw material prices is still a burden. Ngan forecast that in the last quarter, the prices of raw materials could reach $1,800/tonne, and could even set a record of $2,000/tonne. Accordingly, businesses will have to raise selling prices to ensure profit margins.

Plastic enterprises entered the fourth quarter with great pressure when business results were far from the whole year’s targets.

Bao Minh Plastic planned to achieve revenue of VND5.2 trillion in 2021, with profit after tax of VND523 billion. However, by the end of September, it completed more than 60 per cent of the revenue target and more than 19 per cent of the profit target.

Da Nang Plastic set a revenue target of VND85 billion, but only completed 47 per cent after nine months. Meanwhile, it expected to earn VND9 billion in profit after tax, down 11 per cent over 2020, and it has accomplished 84 per cent of the target.

Tien Phong Plastic also lowered its profit target in 2021 to VND432 billion, down 17 per cent. By September 30, it completed 70 per cent of the revenue plan and 80 per cent of the whole year profit plan. 

Measures sought to promote private investment for green growth

Attracting private investment in activities towards promoting green growth will contribute to realising Viet Nam’s green growth strategy and commitment to reduce greenhouse gas emissions, experts have said.

According to deputy director of the Central Institute for Economic Management (CIEM) Nguyen Hoa Cuong, green growth is a very important issue and an inevitable trend for long-term development of the world and Viet Nam in particular.

Businesses are both subjects and partners in the issues of global warming, environmental pollution and natural resources degradation, therefore drawing private investment in green growth activities is essential to Viet Nam’s green growth strategy, Cuong said in a workshop on enhancing the role of private investment in green growth for the 2021-30 period on Wednesday.

The workshop, jointly held by CIEM and the German development cooperation agency (GIZ), is part of activities within the framework of the “Macroeconomic Reforms/Green Growth Programme” implemented by GIZ in Viet Nam under the authorisation of the Federal Ministry for Economic Cooperation and Development (BMZ).

Michael Krakowski, Director and Chief Technical Advisor of the Macroeconomic Reforms/Green Growth Programme in Viet Nam, said that Viet Nam is experiencing rapid economic growth but also suffering negative impacts from climate change, air and environmental pollution.

This is a huge challenge that requires timely and effective response measures to ensure sustainable development, he said, adding that Viet Nam needs to persistently promote and support clean production on a large scale and expand investment in clean and renewable energy development.

Meanwhile, Ho Cong Hoa, a representative of the CIEM’s research team, said that it is necessary to have a consensus in opinions on building and completing a legal corridor, mechanisms and policies towards encouraging private enterprises to invest in green growth and environmental protection.

He proposed the Government and relevant agencies issue a pilot mechanism to implement projects in the form of public-private partnership (PPP) in water and waste collection and treatment and water supply in rural areas.

Besides, it is necessary to force polluters to pay, and accelerate administrative reforms to ensure a transparent and fair investment environment for private firms in this field, he added.

Participants also mentioned shortcomings and weaknesses in formulating and implementing solid waste treatment plans, and unstable power purchasing and selling policies, saying that these are reasons that affect the access, investment and implementation of private-funded projects to serve the goal of green growth.

The Government needs to synchronously carry out solutions to create an attractive investment environment, improve the legal framework quality and capacity in realising policies to attract private investment in green growth in the 2021-30 period, they said. 

Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan