Online fraud is expected to increase rapidly in the coming years due to the robust development of e-commerce. This issue requires stronger State governance.

As of this October, the market surveillance forces nationwide have inspected nearly 2,500 commercial activities online and detected 2,300 violations, including violations on e-commerce platforms and other acts taking advantage of e-commerce to trade in smuggled goods, goods of unknown origin, goods infringing intellectual property rights and counterfeit goods, with fines handed out totalling more than VND18 billion (US$782,600).

According to a recent report by the Ministry of Industry and Trade, prevalent trading of banned goods, fake products, goods infringing intellectual property, goods of unknown origin and poor quality goods on websites, e-commerce platforms and social networks are threatening the sound development of the e-commerce sector and seriously affecting consumer confidence.

Tran Huu Linh, general director of Market Management Department under the Ministry of Industry and Trade, said new methods of fraud were appearing on e-commerce platforms, focusing on high-value goods and imported products.

Scammers may set up multiple facebook accounts and run ads, using professional product photos to attract buyers and only reply to questions on addresses and phone numbers through private message. Some even livestream and receive hundreds of orders per day.

Along with the strong development of technology, consumers now just need a mobile phone to access any e-commerce site and they can conveniently place orders with many discounts.

Facebook in July shared key insights into Vietnamese consumers’ behaviours towards year-end and mega sales days and found that up to 79 per cent of shoppers said they had made purchases online and 82 per cent used mobile devices because it was safer and more convenient.

A further 60 per cent of shoppers reported turning to remote and online channels to send gifts.

"E-commerce is an inevitable trend of the technology age, but it also presents a big challenge for the fight against smuggling, trade fraud and counterfeit goods,” Linh said.

The leader of the Market Management Department said in the next 2-3 years, the rate of trade fraud in the e-commerce environment would account for about 50-60 per cent of all forms of commercial fraud in general.

Linh said in 2021 and the following years, the market surveillance forces would focus on the fight against online fraud and counterfeit goods.

The forces would check owners of e-commerce platforms and sellers on social networks, Linh said.

“Because even traditional sales are now pre-agreed on social networks," Linh noted.

To strengthen the management and supervision of online trading, build trust for consumers and protect merchants and businesses, the Ministry of Industry and Trade said it would continue directing the Market Management Department to collaborate with other relevant agencies to review and propose amendments to regulations on handling violations in e-commerce.

In which, special attention would be paid to conditions for setting up e-commerce websites and employing e-commerce to do business; increasing transparency of product information; management of new business models, intermediary service providers, or auxiliary services for e-commerce such as warehouses, delivery and payment.

The authority would review and categorise the list of e-commerce websites and thereby propose appropriate inspection and handling plans to ensure efficiency.

On September 25, the Government issued Decree No. 85/2021/ND-CP regulating e-commerce platforms and activities in Viet Nam. Decree 85 amends and supplements a number of articles of Decree No. 52 issued in 2013 on e-commerce activities. Decree 85, taking effect on January 1, 2022, will cover local traders as well as foreign businesses that conduct e-commerce activities in Viet Nam.

In addition to many new regulations on the management of e-commerce activities, the decree includes a number of new regulations to strengthen the protection of consumers when trading online.

For example, the sellers are responsible for providing information about their products and services. The decree provides detailed regulations on registration procedures for authentication of e-contracts. Traders providing logistics services are now officially recognised as a subject of e-commerce activities.

The regulations will also impact foreign investors that are involved in e-commerce activities as well as foreign traders who are e-commerce suppliers and service providers.

Foreign businesses including those involved with cross-border e-commerce and B2C e-commerce businesses must comply with local laws. As per the decree, foreign traders engaged in e-commerce activities are defined as those who set up e-commerce websites under Vietnamese domain names (for example .vn); those that set up e-commerce websites that are in the Vietnamese language; and those that set up e-commerce platforms that have more than 100,000 transactions originating from Viet Nam in a year.

For such, the foreign business will be required to set up a representative office in Viet Nam. 

Hanoi metro contractor demands compensation for slow site clearance

Hyundai E&C-Ghella, the main contractor for Nhon-Hanoi Station metro line, has demanded compensation of USD114.7 million for its losses caused by the project’s sluggish site clearance.

The government has sent the National Assembly a report on the implementation of six metro projects in Hanoi and HCM City. All of these projects have been behind schedule, including the Nhon-Hanoi Station project invested in by Hanoi Metropolitan Railway Project Management Board.  

According to the Hanoi Metropolitan Railway Project Management Board, Hyundai E&C-Ghella has asked the board for USD114.7 million in compensation resulting from the project’s delays in site clearance.

The project which was started in 2009 was initially slated for completion in 2018. But the deadline for beginning operations has been extended to 2022. However, currently, only 74% of the project’s work has been finished, which has been partially attributed to the slow site clearance and compensation for affected households.

The project contractor said that they will not be able to continue the current work and will seek international arbitration if the compensation is not paid.

A representative from the Hanoi Metropolitan Railway Project Management Board will work with the contractor about the issue to assess the actual damage brought about by the site clearance delays. The city would focus on boosting the pace of site clearance to hand over the land to the contract in the fourth quarter of this year.

Hanoi’s authorities are considering the establishment of a board to handle the contractor’s complaints.

The 12-kilometre Nhon-Hanoi Station metro line starts from Nhon in Nam Tu Liem District and ends at Hanoi Station in Dong Da District, and includes an 8.5 elevated kilometre-section.

The project has cost an estimated VND33 trillion (USD1.42 billion), mainly sourced from the Official Development Assistance of the European Investment Bank, the French government and the Asian Development Bank.

EVFTA serves as leverage for Viet Nam in recovery after pandemic

The EU-Viet Nam Free Trade Agreement (EVFTA) will open up many opportunities for Vietnamese businesses to attract investment capital and expand export markets in the post-COVID-19 period.

In the context of economic recovery in the post-COVID-19 period, along with the shaping and development of new trade and investment trends, the EVFTA would facilitate and increase competitiveness for domestic enterprises so that Viet Nam can participate in the process of restructuring supply chains with European Union (EU) partners, Deputy Minister of Industry and Trade Dang Hoang An said.

The participation in the chains would open up opportunities to attract investment capital and advanced technology, and create new resilience and sustainable growth in the future, he added.

The two sides could be optimistic about a strong surge in the Viet Nam-EU trade and investment cooperation development in the new normal, An said.

EuroCham chairman Alain Cany said over the last few weeks, Viet Nam had begun to emerge from lockdowns and resume normal business activities. This is now giving EuroCham members renewed optimism about the prospects both of their enterprises and of Viet Nam’s business environment.

“We need to work together - to cooperate - to ensure that both domestic and foreign business communities can rebound and recover in the ‘new normal’,” Cany said.

Business leaders needed centralised rules implemented in a clear and consistent manner across all provinces and cities. This would enable companies to plan their re-opening in advance and resume at their full capacities wherever it is safe to do so, he said.

"In short, the challenge now is to ensure that private enterprise is able to rebound and recover as fast as possible. In doing so, we can help to achieve the second of the Government’s twin goals: maintaining economic growth. The EVFTA gives us a tool with which to achieve this."

“If we can unlock the full potential of the EVFTA and resolve the teething problems of doing business in the ‘new normal’, we can help our companies to benefit from preferential tariffs and privileged market access. This, in the end, will benefit consumers on both sides who will get greater access to more competitive goods and services.”

Viet Nam is in a stronger position than most to prosper in this post-pandemic period. The fundamentals that have underpinned its three decades of almost uninterrupted economic growth remain strong, according to Cany.

“And now that COVID-19 has been brought back under control, with the EVFTA in force, and the EVIPA soon to follow, Viet Nam has the chance to attract a new wave of foreign direct investment (FDI) from European investors looking for a prosperous, safe, and competitive place in which to invest and do business,” he said.

With a strong commitment to ensuring transparency, openness and favourable conditions in the trade and investment environment, Viet Nam has gained access to high-quality investment sources from the EU with projects using advanced technologies, An said.

In the context of the COVID-19 pandemic, Viet Nam attracted US$22 billion from the EU in the first nine months of the year, up 4 per cent year on year, accounting for 5.5 per cent of Viet Nam's total FDI, according to an official from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

"This figure is a small part of the total FDI but it has an important meaning in the context of the pandemic," Vu Van Chung, deputy head of FIA, said.

The investment agreement between the two sides had not yet taken effect, but EU investment had increased to anticipate business and investment opportunities in the future, Chung said.

“The EU is considered one of the strategic markets in the policy of attracting FDI to Viet Nam in the future. Therefore, preferential policies will be adjusted to suit actual needs,” he said.

"After the fourth outbreak of the pandemic, Viet Nam still strengthens measures to fight the pandemic and also restore production, including reduction of input costs. It also solves the barriers to entry of experts into Viet Nam."

"In the long term, Viet Nam will restructure the economy and develop railway and energy infrastructure to attract more FDI as well as restructure the labour force to serve investors."

Meanwhile, “the Ministry of Industry and Trade (MoIT) and trade offices of Viet Nam in the EU will stand side by side with businesses of the two sides to maximise opportunities offered by the EVFTA, thereby creating favourable conditions to foster trade and investment and address difficulties,” An said.

Businesses are urged to take the initiative in innovating themselves, raising capacity and adjusting business strategies to quickly adapt to the new situation.

To effectively take advantage of the EVFTA and new investment and business opportunities after the pandemic, An said that it needed great efforts from both the Government and the business community, especially as the pandemic was still complicated and unpredictable.

"Viet Nam should also build suitable scenarios to adapt to the new situation in a flexible and effective manner and seize all resources for recovery of economic growth, as well as address bottlenecks of businesses,” An said. At the same time, the Government needed to stabilise the business and investment environment.

"The pandemic also leads to changes in consumption trends, including online transactions of goods and services, thereby promoting the development of digital transformation and e-commerce," An said.

E-commerce has become a bright spot when traditional commerce methods are limited by the pandemic and this cross-border trade channel will have great potential of development in the future, according to An.

The pandemic has partly forced the domestic enterprises to have sustainable development and to actively change their business methods to catch up with new trends and improve competitiveness.

For example, tonnes of Bac Giang lychees have been exported to the Europe through Viettel Post's Seashell e-commerce platform.

Cao Cam Linh, strategy director of Viettel Post Corporation, said there had been only 1,200 orders of lychees to the German market, but this is opening a new path for exporting Vietnamese farm produce.

If Seashell can connect Vietnamese enterprises to foreign markets, including the EU, the beneficiary is the local enterprises, according to Linh.

Deputy Minister An affirmed that the EVFTA not only provided leverage to promote bilateral trade but also an advantage for the business communities of Viet Nam and the EU in the context of the global economy and trade being affected by COVID-19.

According to the General Department of Vietnam Customs, bilateral trade between Viet Nam and the EU after this agreement came into effect in August 2020 reached US$54.87 billion, up 12.1 per cent year on year, including the export turnover of $38.48 billion, up 11.3 per cent and import turnover at $16.39 billion, up 14 per cent.

Although Viet Nam was heavily affected by the fourth outbreak of the pandemic, bilateral trade value in the first nine months of 2021 still recorded growth of 13.4 per cent year on year to $41.3 billion, including an export value of $28.85 billion (up 11.7 per cent) and an import value of $12.4 billion (up 17.6 per cent).

According to Eurostat, Viet Nam has become the largest commodity trade partner of the EU in ASEAN just one year after the EVFTA took effect with the bilateral trade value of 43.2 billion euros ($50.5 billion).

Besides that, more and more domestic businesses are taking incentives from the EVFTA by using certificate of origin (C/O).

According to MoIT’s Import-Export Department, in the first year of implementation of the agreement, agencies and organisations authorised to issue C/O of the EUR.1 form granted about 207,682 certificates to Vietnamese products worth a total of about $7.71 billion, allowing them to export to 27 EU countries.

Enterprises exporting goods to the EU have also implemented self-certification of origin for 6,115 batches of goods to enjoy preferential tariffs under the EVFTA. 

Vietnam eyes building blue economy partnership group

The Vietnam Administration of Sea and Islands (VASI) at the Ministry of Natural Resources and Environment and the World Bank have jointly held a virtual consultation workshop on the building of a Blue Economy partnership group.

At the event, VASI Deputy Director General Nguyen Que Lam said the proposal to build a partnership group on blue economy aims to mobilise the participation of stakeholders for the efficient management and sustainable development of Vietnam’s maritime economy.

Participants discussed and share information on programmes and projects related to the field.

According to the World Bank, the Blue Economy refers to the sustainable and integrated development of economic sectors for healthy oceans and seas. Nguyen Thi Tho, an expert at the VASI, said that the blue economy model aims to improve welfare and social fairness, as well as mitigate risks in environment and scarcity.

The annual Vietnam Blue Economy Forum is among major activities of the country’s seas and islands week. The forum helps the community understand the potential and challenges in the realisation of maritime economy development targets./.

Forty-two new wind power plans put into commercial operations: EVN

Forty-two out of 106 wind power plans registering for commercial operation received Commercial Operation Date (COD) acceptance as of October 29, according to the Electricity of Vietnam (EVN).

According to the EVN, the 42 plans have total capacity of over 2,131 MW.

It said that the 106 wind power plants have a total capacity of 5,621.50 MW.

EVN units are accelerating paper processing work on granting COD to the remaining plants./.

Vietnam faces difficulties welcoming international tourists with package tours

Package tours that feature stringent anti-Covid-19 prevention measures seem unattractive to international tourists to Vietnam, according to some local travel agencies.

According to a pilot plan announced by the Ministry of Culture, Sports and Tourism, some provinces and cities including Phu Quoc, Khanh Hoa, Quang Nam, Danang, and Quang Ninh can receive overseas visitors with Covid-19 vaccine passports and negative Covid-19 testing results from November. These tourists can register for package tours of less than seven days or over seven days and can begin the tours right after their arrival. Those who register for tours of more than seven days must take another Covid-19 test on the 7th day and can continue their tours if the test results come negative.

Tourists following these package tours are not allowed to travel freely and are advised to limit contact with people from other tourist groups.

The plan has not been welcomed by local travel companies who think it is only suitable for some Asian tourists coming on short tours but not for those from Russian and European markets who usually come on long tours.

A representative from Anex Vietnam Travel and Trading Company which serves Russian tourists said that this plan is more suitable for visitors from some Asian countries like China, South Korea and Japan who usually come on short tours of between 4-6 days.

"It will be difficult to attract tourists from Russia and English-speaking countries who usually go on tours of more than 10 days," he said. "I think this kind of package tour which bans them from coming into contact with local people to learn about local culture and customs won't attract them. The limited number of tourism products in Phu Quoc, as well as other destinations, means that visitors will not have many activities to do besides laying on the beaches, playing golf or visiting a few sites."

According to Anex Vietnam, they used to receive over 30,000 Russian tourists to Vietnam before the Covid-19 pandemic. The company had expected to have between 3,000-5,000 tourists in the first two weeks after the pilot plan took effect. But they haven't been able to organise tours due to the limited number of customers.

"We've only received some 20-30% bookings for the flights of between 300-400 seats," the company said. "And we've had to cancel all the tours."

Anex Vietnam said that they will only be able to resume operation when local tourist destinations are fully open to international tourists.

Predictions from some travel companies show that Vietnam tourism industry can recover by between 30-40% in 2022 and 70% in 2023 compared to the pre-pandemic period in 2019.

Textile and garment sector to recover with labour support

As the fourth wave of COVID-19 is brought under control in Viet Nam, the billion-dollar textile and garment industry is overcoming difficulties to resume production.

The worst wave of the pandemic so far has caused garment inventories to increase, production activities to be delayed, and the labour supply disrupted as many workers left for their hometowns.

According to a survey by the Research Center for Employment Relations (ERC), the industry could be exhausted with more than 60 per cent of migrant workers leaving or deciding to leave for their hometown.

Meanwhile most experts said as many orders were unfinished, demand for production and business from now to the end of the year was very high, adding if localities do not soon ease social distancing restrictions and implement measures to promote economic development, the export target of US$39 billion this year will be difficult to achieve.

In the most positive scenario, experts from the Vietnam Textile and Apparel Association (VITAS) said Viet Nam would control the pandemic and realise a ‘new normal’ from the beginning of this month, with exports reaching between $37.5 billion and $38 billion. In the worst-case scenario, when restrictions remain in place until the beginning of December, exports were expected to reach $33.5 billion to $34 billion.

Director of the Center for WTO and Integration, under the Vietnam Chamber of Commerce and Industry (VCCI), Nguyen Thi Thu Trang, said during the pandemic many enterprises had their production chains broken, leading to a number of orders signed being cancelled or transferred to another country by customers.

Concerned about the export future of these products in such a situation, Trang said large textile and garment brands could move their orders to be produced in areas with good pandemic control to meet the needs of the year-end shopping season in European and American markets.

Therefore, Trang said: “If enterprises quickly restore production and smoothly complete the remaining orders in the coming months, there is no need to worry too much about the future,” adding that in the long run, compared to many competitors, Viet Nam's textile and garment sector still has certain advantages in terms of product quality, technical level, ability to meet strict requirements on labour and environment, and especially preferential tariffs under FTAs.

Trang said the most important thing for garment enterprises was direct support policies such as financial support, exemption or reduction of taxes and other fees and an interest rate support package to quickly restore full production.

She said at the same time, the State would need to develop policies to help businesses make effective use of existing labour resources, loosen or remove restrictions on the maximum number of overtime hours, and help businesses attract workers to return to work through supporting the cost of meals, accommodation, or organising free periodic testing for employees.

While experts predicted most textile and garment enterprises would experience a challenging and difficult year in 2021, they also said the period until 2023 was a decisive time for recovery and enterprises needed to take advantage of opportunities.

As one of the biggest production firms in the northern province of Thai Binh and one of Viet Nam’s leading apparel manufacturing and exporting companies, Tan De Garment launched a mobile app earlier this month to connect all its employees from all nine factories in Thai Binh and Hung Yen provinces.

A representative of the firm said the app was not just a venue for more than 17,000 workers to exchange their activities and training but also to get updates on the company’s policies, adding that all workers had been given at least one dose of vaccine and received cash thanks to Government policies.

Nguyen Tien Phuong, chairman and CEO of Tan De Garment Company, told Viet Nam News: “As the company has policies to support employees from the beginning of the pandemic and actively recruits employees in Thai Binh Province, it does not have to face the issue of workers leaving this time.”

Phuong added that a quick vaccine roll-out and insurance support also helped in keeping workers at this time.

Deputy general director of Garment 10 Corporation, Bach Thang Long told local media that thanks to many flexible solutions, the firm’s revenue in the past nine months remained the same as in the same period last year, adding that he was striving to increase year-end profit compared to last year through cost cutting and increased productivity.

Vinatex General Director Cao Huu Hieu also said that the group had implemented many response measures to limit the negative impact of the pandemic and the increase in input material prices.

Hieu said: “There is no other way, the production unit must work closely with customers for the most optimal solution.”

Hieu added: “In addition, the enterprises must work with suppliers to avoid excessively high prices affecting output, improving market forecasting to have a plan to import raw materials for reserves, avoiding the impact of high prices.”

He said enterprises needed to develop many response scenarios in 2022 when the market recovers and production is resumed, adding that at the same time, they needed to take advantage of new-generation free trade agreements (FTAs) to boost exports.

Hieu said in the first nine months, Vinatex's total revenue reached VND24.68 trillion, down 12.4 per cent and profit was up 136.9 per cent, reaching VND1.14 trillion over the same period in 2020 thanks to active solution and good support of customers.

Commenting on the textile and garment market in 2022, Le Tien Truong, chairman of Vinatex, said that the global market would continue to recover in terms of demand, especially in developed countries.

Truong added that in the first half of 2022, textile and garment enterprises would still have to implement solutions to prevent and control the pandemic. He said thanks to the Government's continuous promotion of vaccinations, localities would not implement large-scale social distancing, so in the second half of 2022, businesses would adapt and feel secure to work under the "new normal".

Conditions ripe for long-term stays

A promising economic outlook, the reopening of society, and new major investments are hinting that Vietnam will remain an incredibly welcoming environment for expatriates that want to live and work long term in the country.

New moves by leading multinational corporations on additional investments to expand production in Vietnam are reflecting their confidence in Vietnam’s prospects for economic recovery, which in turn is opening up new chances for non-nationals to visit the country for the first time and, perhaps, stay for much longer.

Swiss corporation Nestlé earlier this month poured an additional $130 million into its facilities in this country, raising its total investment in Vietnam to $730 million, to carry out a number of projects over the next two years. Over the long run, Vietnam is flying high on Nestlé’s agenda as an international and regional manufacturing hub.

Elsewhere, Sweden’s Tetra Pak has pumped in $5.86 million to expand its existing multi-million-dollar plant in the southern province of Binh Duong, while South Korea’s LG Display has acquired an investment certificate for projects with added capital of $750 million in the northern port city of Haiphong.

The large chunk of high-quality investment not only demonstrates foreign investors’ trust in Vietnam’s strong economic recovery after the pandemic, but also opens up job opportunities for those yet to arrive.

The HSBC Expat Explorer Survey 2021 – a global survey of over 20,000 people living and working abroad published last week – showed that 83 per cent of expatriates in Vietnam are optimistic about living here for the next 12 months, anticipating a return to strong economic growth after the pandemic subsides.

This is similar to the rates in Australia and New Zealand, while Taiwan has a rate of 85 per cent. As many as 20,460 overseas experts based in 46 countries and regions were questioned in April and May this year.

Just over half of those surveyed in Vietnam said the local community has become more supportive of each other since the start of the pandemic, compared to 46 per cent globally.

Currently, Vietnam has an overall rank of 19th globally as the best destination for foreigners to live, up three places from 2020, although it ranks as the fifth-best location in the Asia-Pacific region.

HSBC believed that there is a growing sense of optimism among expatriates in Vietnam that with the vaccine rollout picking up pace, the country will return to a more normal existence.

“In Vietnam, this will mean a return to strong economic growth in a very vibrant and exciting country, where apart from the benefits of being in a fast-moving and vibrant economy, the country also offers a wide variety of geographies from mountains, jungles, and beaches to wonderful food and very hospitable people. As an expat living in Vietnam, I would not want to be anywhere else at this exciting time for the country,” an HSBC Vietnam representative said.

According to Dr. Greeni Maheshwari, lecturer at the School of Business and Management at RMIT University Vietnam, her family has felt safe staying in a country like Vietnam during the pandemic, as people have been provided with detailed, up-to-date information and advice. “In the past 15 years, my family has called Vietnam our second home. It has been amazing to see that whenever issues arise here, such as the avian flu in 2016, flooding in central Vietnam last year, or the various waves of the pandemic, the country always bounces back strongly,” she said.

Meanwhile, the Expat Insider 2021 survey published by InterNations in May saw Vietnam ranked first in both personal finance and cost of living indices, out of 59 countries. Around 85 per cent of expats rate the cost of living positively although the percentage globally is 48 per cent, and 78 per cent are satisfied with their financial situation, compared to 64 per cent for the rest of the world. Overall, Vietnam placed 10th out of the 59 nations surveyed.

Specifically, 9 per cent of expats in the country have an annual income over $250,000, while the average percentage for the globe is only 3 per cent.

As of April this year, Vietnam reported 101,550 non-nationals working in Vietnam – 12 per cent of who are in a managing position, 8 per cent in operating director roles, and nearly 60 per cent are classed as experts, according to the Ministry of Labour, Invalids and Social Affairs (MoLISA).

Foreign experts working in Vietnam currently come from 110 countries and territories. This labour force is mostly living in Hanoi (4,400 people), Bac Giang (4,600), Long An (5,600), and Ho Chi Minh City (27,000). But with this year’s complexities, many sectors are looking out for more help from abroad.

“There is an urgent demand for a high-quality foreign labour force in some major industries, such as construction and energy, due to the lingering pandemic,” the MoLISA stated.

Being aware of the utmost importance of the presence of foreign experts from elsewhere, Mary Tarnowka, executive director of the American Chamber of Commerce in Ho Chi Minh City, said that the government should continue to issue flexible policies and simplify procedures to license them to work in Vietnam.

“Loosening procedures for foreign experts to enter the country during the ongoing pandemic is considered an urgent requirement to help local manufacturers resume full operations,” Tarnowka said.

Tra Vinh’s wax coconut enters Australian market

The first batch of wax coconuts from the Mekong Delta province of Tra Vinh worth 70,000 AUD (52,620 USD) exported to Australia has sold out after a short time of marketing, according to the Vietnam Trade Office in Australia.

This is the first time fresh wax coconuts have been exported by air to the country, it noted, adding that this shipment is the result of the work of Hoa Uu Dam Trading and Service Co., Ltd, and the trade office in a programme to develop trademarks and improve the value of Vietnamese agricultural products in Australia.

Previously, only a small amount of Tra Vinh waxy coconuts, mainly frozen ones, were exported to Australia, the trade office said.

Tra Vinh fresh waxed coconut is sold at a price tag of 30 to 35 AUD (about 22-26 USD) per coconut.

The trade office has conducted advertising campaigns on social networks, and also published publications to introduce this product and other Vietnamese fruits, with the aim of further promote the export of Tra Vinh waxed coconut in Australia.

Like durian, wax coconut met difficulties to make inroads into Australia before. The trade office is coordinating with Vietnamese enterprises to build Vietnamese fresh coconut brands in the market.

Red Dragon Co., Ltd has cooperated with the Australian importer 4waysfresh to export fresh coconuts from Vietnam to South Australia and Western Australia states in the coming time.

Meanwhile, the Mekong Import and Export Fresh Fruit Co.,Ltd is also urgently negotiating to ship two containers of Ben Tre fresh coconuts to Melbourne and Sydney, the office said./.

CPI in first ten months is lowest in last five years

The Consumer Price Index (CPI) in October was down by 0.2 per cent from September, meaning the CPI in the first ten months of this year grew 1.81 per cent over the same period last year, the lowest growth rate since 2016.

According to the General Statistics Office (GSO)’s meeting yesterday in Ha Noi, the CPI in the two remaining months of the year could increase as the driving factors change after social distancing measures are eased.

The GSO said in October, prices of food and catering services decreased by 1.28 per cent from September due to the drop of 0.25 per cent and 9.38 per cent in the prices of rice and pork, respectively, thanks to abundant supplies after social distancing.

It also said prices of housing and construction materials in October fell by 0.26 per cent due to a cut in housing rental rates to support people amid the pandemic, while electricity prices were also reduced because cooler temperatures affected demand for power and water compared to the previous month. Prices of post and telecommunications inched down 0.04 per cent.

Among eight groups of commodities and services experiencing rising prices last month, transport witnessed the highest month-on-month increase of 2.51 per cent, which was attributed to the fuel price hike.

Also rising, education prices inched up 0.25 per cent against September.

GSO said core inflation in October experienced a month-on-month decline of 0.17 per cent but a year-on-year rise of 0.5 per cent. In the first 10 months, the figure increased 0.84 per cent compared to the same period of 2020, reflecting price movements driven by the hikes of food, petrol and oil and gas prices.

GSO said core inflation in October and the first 10 months of 2021 compared to the previous year stood at the lowest level since 2011.

It also said as November-December will be a time to focus on production, travel and procurement for major holidays, while CPI in tourism services and entertainment is projected to see growth.

Also at the meeting, GSO announced industrial production in October prospered when social distancing measures were eased, production and business activities were gradually restored to a new normal state.

The office said the index of industrial production (IPI) in October 2021 was estimated to increase by 6.9 per cent from September and down 1.6 per cent year-on-year.

In general, in the first ten months of 2021, the IIP increased by 3.3 per cent over the same period in 2020. This figure was higher than the growth rate of 2.6 per cent in the same period of 2020.

In which, the processing industry and manufacturing increased by 4.5 per cent, contributing 3.99 percentage points to overall growth while electricity production and distribution increased by 4.1 per cent, contributing 0.36 percentage points.

Statistics show that the IIP in the first ten months of some key industries belonging to level II increased sharply compared to the same period last year.

Specifically, metal production increased by 25.1 per cent; motor vehicle production increased by 12.5 per cent; production of coke, refined petroleum products by 10.5 per cent; textiles increased by 7.8 per cent; production of electronic products, computers and optical products by 6.4 per cent; and garment production and waste collection, treatment and destruction, and scrap recycling both increased by 5.1 per cent; and production of leather and related products increased by 4.3 per cent.

On the other hand, the IIP of some industries decreased, including production of drugs, pharmaceutical chemicals and medicinal materials, crude oil and natural gas exploitation, repair, maintenance and installation of machinery and equipment, beverage production and the production of other means of transport.

The office also said a number of key industrial products in the first ten months increased sharply compared to the same period last year, which included phone components, rolled steel, petrol and oil, LPG, iron, crude steel and automobiles.

While some products such as televisions of all kinds, natural gas, assorted beer, and crude oil extraction decreased.

The number of employees working in industrial enterprises as of October 1 increased by 7.7 per cent compared to the same time last month. Compared to the same period last year, it still decreased by 7.9 per cent, showing production firms were still facing many difficulties and labour shortage has become a key issue, said the office. 

EC recognises Vietnam’s efforts to fight IUU, to conduct inspection in Q1, 2022

The European Commission (EC) continued to recognise Vietnam's efforts to fight illegal, unreported and unregulated (IUU) fishing, according to Deputy General Director of the Directorate of Fisheries (Ministry of Agriculture and Rural Development) Nguyen Quang Hung.

Hung said at the recent online meeting between the directorate and the EC, the EC appreciated the changes in terms of legal matters, one of the four groups of recommendations made by the EC to Vietnam to solve IUU fishing. The EC basically approved the revisions Vietnam has made to the legal framework.

It is noteworthy that the EC said Vietnam had done fairly well regarding seafood origin control, with very small volume of aquatic products returned from the EU markets compared to previous years, according to Hung.

However, the monitoring of fishing vessels has faced many difficulties in the recent past due to the resurgence of COVID-19, and the number of operating vessels also reduced.

As for law enforcement, localities have been active in popularizing laws and regulations on IUU fishing among fishermen, and tightening punishments on violations, with the aim of ending fishing vessels’ violation of foreign waters as soon as possible.

Hung noted that the EC pointed to limitations and slow improvement in some localities, one of which is the operation of the Vessel Monitoring System (VMS), with a number of vessels over 24m long not keeping their VMS devices connected.

The EC also required Vietnam to extend management of seafood from the current 49 designated fishing ports to 66 other fishing ports for 15m fishing boats, in order to ensure that all seafood catches are legal.

Another problem is the limited punishment of violations of foreign waters, Hung said, adding that the EC requested intensifying the investigation of such violations for due punishment.

On the implementation of the Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing (PSMA), there are many things Vietnam needs to improve, as it is not long since the country acceded to the agreement.

The official said if the pandemic situation allows, the EC plans to conduct direct inspections at seaports and localities in Vietnam in the first quarter next year./.

Green growth strategy promotes post-COVID-19 economic recovery

The national strategy on green growth for 2021-2030, with a vision to 2050 plays a crucial role in promoting economic restructuring alongside growth model renovation, said Minister of Planning and Investment Nguyen Chi Dung.

“It is an important approach to pursue sustainable development, thus contributing to post-COVID-19 economic recovery, transitioning to green economic development, and at the same time creating a premise to realise the long-term targets of low-carbon emissions and carbon neutrality so as to contribute to limiting global temperature rise,” he said.

Minister Dung made the statement at a conference to implement the strategy chaired by the Ministry of Planning and Investment in Hanoi on October 29.

Attendees at the conference included representatives from ministries, sectors, localities, embassies of the UK, Germany, the Republic of Korea, international organisations, the World Bank, Asian Development Bank, UNDP, UNIDO, UNICEF, GIZ, KOICA, AFD, USAID, as well as representatives from businesses, academia, and researchers.

In light of the approved orientation, the strategy was developed on the basis of extensive consultations with stakeholders in ways consistent with recent COVID-19-pandemic prevention regulations, the minister said.

The development process of the strategy received strong support, cooperation and input from ministries, sectors, localities, relevant industry associations, embassies, international organisations, and development partners, he said.

By acknowledging and taking into consideration the inputs from stakeholders, the Ministry of Planning and Investment has completed the strategy and submitted it to the Prime Minister for promulgation under Decision No 1658/QDTTg dated October 1, 2021.

The Prime Minister's approval of the strategy on the threshold of the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) in Glasgow, UK, which will take place in the next few days, has demonstrated Vietnam's strong commitment to reducing greenhouse gas emissions through practical and concrete actions.

“The strategy sets four important goals, namely reducing greenhouse gas emissions, greening economic sectors; greening lifestyles and promoting sustainable consumption, and greening the transition,” said Le Viet Anh, Director of the Department of Science, Education, Natural Resources and Environment under the Ministry of Planning and Investment.

“The first objective of the strategy is to reduce the intensity of greenhouse gas emissions per GDP, which was also the objective of the previous strategy. This aims to assess comparative greenhouse gases (GHG) emission mitigation potential per unit of economic output, helping to determine the extent of environmentally-friendliness of the economy as its size is increasing, contributing to realising the dual goal of protecting the environment and developing “rapidly and sustainably,” he said.

Under the strategy, by 2030, the intensity of greenhouse gas emissions per GDP will decrease by at least 15% compared to that of 2014. By 2050, the intensity of greenhouse gas emissions per GDP will reduce at least 30% compared to that of 2014.

Hai Phong was the first locality to develop and implement a green growth plan for the 2014-2020 period. The city has succeeded in attracting a number of sustainable investment projects in accordance with the local economic development conditions.

Vice Chairman of the Hai Phong municipal People's Committee Le Khac Nam said that the city had implemented a number of outstanding projects in the 2014-2020 period, such as waste treatment projects and an electric bus on Cat Ba island.

International organisations have supported and co-ordinated with Hai Phong to implement green and environmentally friendly projects. The city will move towards applying digital technology, digital transformation, transforming the economic model towards greening, comprehensively implementing green economic development models including green ports, green islands, environmentally-friendly production model, reducing energy consumption in production activities, and applying renewable energy sources such as wind and wave energy.

Representatives from ministries, sectors, localities, embassies, international organisations, development partners, and businesses spoke highly of the new approach which was employed to determine the feasibility of the goals set forth in the strategy.

They also agreed with the plan and roadmap for the implementation of the strategy and believe that the Strategy will help realise the goals that Vietnam had set for 2030 and 2045. Ministries, sectors, localities, agencies and relevant organisations agreed to work together immediately to devise a National Green Growth Action Plan and Action Plans on sectoral and local levels. Development partners and international organisations are committed to accompanying and supporting Vietnam to implement the strategy.

To conclude the meeting, Minister Dung emphasised the importance of collaboration during the implementation process, saying the support and close coordination of ministries, sectors, domestic and international organisations, the business community and experts play a fundamental role to ensure that the implementation of the strategy adheres to the views and orientations of the Resolution of the 13th National Party Congress, the 10-year socio-economic development strategy 2021-2030, and the 5-year socio-economic development plan 2021-2025.

Following the conference, the Ministry of Planning and Investment will preside over and coordinate with ministries, sectors and localities to research and propose to the Prime Minister to establish a national steering committee on green growth, make arrangements to devise a national green growth action plan, and implement other important contents.

Japanese committed to ODA infrastructure ventures

With Vietnam strongly accelerating infrastructure construction in service of the country’s socioeconomic development, Japan is expected to continue supporting its strategic partner via official development assistance.

Shimizu Akira, chief representative of the Vietnam Office under the Japan International Cooperation Agency (JICA), said that Vietnam is boosting economic activities with a balance between infrastructure and human resources development, which plays a crucial role in economic recovery.

“However, Vietnam still faces bottlenecks in basic infrastructure. JICA will continue to support Vietnam’s socioeconomic development by implementing infrastructure projects under the policy of the Japanese government,” he told VIR.

JICA’s figures show that in the fiscal year from April 2020 to March this year, the total official development assistance (ODA) commitment for Vietnam amounted to $436.56 million; the technical grant stood at $38 million; and other grants sat at $18.6 million. The period saw about 100 projects funded by Japan in total.

Japan’s total financial support for Vietnam in infrastructure development, especially transport, is estimated to be over $10 billion so far. Many projects are in good progress.

For example, workers at the six ramps of the Mai Dich-South Thang Long viaduct section are finishing the final works so that these ramps can be put into use in the coming time. The viaduct of Hanoi’s Ring Road 3 was funded by Japan’s ODA loan, and was officially opened in October 2020 to traffic after over two years of construction, helping to end chronic traffic jams in the area.

The project aims to construct a high-standard inner-city expressway in the western section, connecting the Mai Dich intersection and the South Thang Long intersection of Ring Road 3 which runs along the outskirts of the capital. The 5.34-km section has 4.8km of viaduct.

JICA and the Vietnamese government signed a loan agreement worth $195.48 million in 2013 to implement the project.

JICA has a long history of cooperation for the development of Ring Road 3 in Hanoi. Japanese ODA loans were provided for the Red River Bridge, the New National Highway 3, and the Regional Road Network.

In 2007, Thanh Tri Bridge connecting to Ring Road 3 was completed. After that, the northern and southern approaching roads of the bridge were opened to traffic in 2009 and 2010, respectively. Subsequently, in 2012, a 9-km section connecting the intersection of National Highway 32 with the northern side of Linh Dam Lake, which is the southwestern section of Ring Road 3, was opened to traffic.

Finally, in 2014, the section connecting Hanoi and the northern city of Thai Nguyen was also completed.

In addition to supporting Vietnam to implement projects such as new terminals of the Noi Bai and Tan Son Nhat international airports, and Lach Huyen seaport, JICA has also been carrying out projects to connect roads and bridges among localities, such as on the North-South railway and the Ke Nam bridge in the central province of Nghe An.

“About 70 per cent of Vietnam’s national roads have been built and upgraded with ODA from Japan. Completed projects have helped boost connectivity within ASEAN and facilitated the flows of goods and public travel. This has also helped localities attract more foreign direct investment,” said a JICA report released last week.

To help Vietnam achieve high economic growth amid a rise in population, JICA has also been deploying projects to improve people’s lives, involving power generation, expressways in urban areas, and water treatment facilities. Japan has helped Vietnam generate 10 per cent of the latter’s power output.

“Amid the COVID-19 pandemic, the Vietnamese government’s policy is to continue implementing public works while ensuring safety precautions for workers. The continuance of all JICA’s loan projects have sustained employment, thus contributing to support the economy,” Akira said. “On the other hand, infrastructure development is also very important for improving the domestic investment environment.”

For example, he said, in August, the Japanese-backed project to expand the Da Nhim hydropower plant was completed and has just been put into commercial operation. This plant’s construction was funded by Japan and became operational in 1964.

Earlier in May, JICA inked another deal to provide a loan worth $25 million for an onshore wind power project of 144MW in the central province of Quang Tri. The project’s investors are Vietnam’s Power Construction No.1 JSC and Japan’s RENOVA Inc. The borrowers include Vietnamese wind power groups such as Lien Lap, Phong Nguyen, and Phong Huy.

Meanwhile, the Ho Chi Minh City Urban Railway Construction Project, backed by Japanese ODA worth $1.58 billion, has resumed construction after a delay due to COVID-19. “I hope the project will soon become operational,” Akira said.

The Asian Development Bank estimates that Vietnam would need at least $16.7 billion per year on average for 2015-2025 to finance its infrastructure development needs. The World Bank forecasts up to $25 billion a year, much higher than the average level in 2011-2015.

Reform should be maintained in post-COVID-19 economic recovery: workshop

Reform should be the top priority for Vietnam in the 2021-2025 period, heard a workshop held by the Central Institute for Economic Management (CIEM) in Hanoi on October 29.

Participants at the high-level consultative workshop on “Reform towards sustainable development and international economic integration: focus and roadmap to 2025”, emphasised the need to maintain reform during the recovery process and the requirement to reform in parallel with economic recovery.

They highlighted the importance of mobising resources for new economic activities in a sustainable way. 

It is necessary to implement effective international economic integration, create impetus for institutional reform, take advantage of incentives from new-generation free trade agreements and improve the internal strength of the economy, they said, adding that attention should be paid to the private sector and the autonomy of the economy.

Tran Thi Hong Minh, director of CIEM, said economic difficulties have once again tested the will and determination of Vietnam.

“We still see bright spots in economic institutional reform thinking by the adoption of many solutions to create motivation for economic recovery and development, effectively carry out international economic integration, promote green growth and sustainable development”, Minh said.

According to Can Van Luc, chief economist of the Bank for Investment and Development of Vietnam, the COVID-19 pandemic has left a negative impact on the economy in recent times and may last for the next few years. 

Currently, Vietnam has to ensure three goals, namely pandemic prevention, economic recovery and social welfare.

Luc said that it is necessary to quickly overcome the consequences of COVID-19. Accordingly, digital transformation and digital skills should be carried out. A better social safety net system should be created together with the resilience of the financial system.

Countries that can adjust their model appropriately and have the ability to coordinate between health and the economic policies as well as promulgate a quick and consistent policy mechanism will overcome the pandemic more effectively, he said.

According to Luc the quality of legal documents and slow implementation of policies are the bottleneck that should be dealt with.

Vietnam, Russia review economic, trade, scientific cooperation ties

Vietnamese Deputy Prime Minister Le Van Thanh and his Russian counterpart Dmitry Chernyshenko co-chaired the annual 23rd meeting of the Vietnam – Russia Inter-Governmental Committee on Economic, Trade and Scientific-Technological Cooperation via videoconference on October 29.

Both sides reviewed the implementation of the 22nd meeting’s minutes and discussed orientations and measures to further improve the efficiency of bilateral cooperation, towards the 10th anniversary of bilateral comprehensive strategic partnership (2012-2022).

Despite the COVID-19 pandemic, bilateral political exchanges, especially those at high level, have been maintained via videoconference. Trade between the two sides still grew at an encouraging pace while joint works across energy, oil and gas, industry and agriculture remained effective.

The two leaders suggested expanding cooperation into promising fields such as anti-pandemic, banking or renewable energy.

Thanh affirmed that Vietnam wishes to further enhance cooperation with Russia and stays ready to offer all possible support to the two countries’ energy, oil and gas firms. He agreed to step up a project on nuclear science and technology research centre, and other cooperation fields.

Chernyshenko, for his part, described Vietnam as a top significant partner of Russia in Asia-Pacific, especially in Southeast Asia.

He stressed that Russia wishes to further deepen ties in fields of potential and demand. He also pledged to further promote the efficiency of free trade agreement between Vietnam and the Eurasian Economic Union.

Concluding the meeting, the two deputy PMs signed the minutes of the meeting and agreed that the next meeting will be held in Vietnam next year.

Number of newly-established enterprises rises 111.2% in October

Business registration in October enjoyed a vast improvement over the previous month with the number of newly-established enterprises up by 111.2% compared to the figure from September, according to the General Statistics Office.

The country witnessed approximately 8,233 new enterprises in October this year, with a total registered capital of VND108,600 billion, along with 58,800 registered employees.

The average registered capital per new enterprise stands at VND13.2 billion, a drop of 17.6% from the previous month and a fall of 2.8% over last year's same period.

The past ten months saw roughly 93,700 enterprises set up, with total registered capital of roughly VND1,304,400 billion and a total of 707,700 registered employees

The average registered capital per enterprise during this period reached US$13.9 billion, a decline of 2.9% over the  corresponding period from 2020.

Furthermore,  As many as 35,300 businesses resumed operations, bringing the total of newly-established enterprises and firms returning to operation to 129,000, a fall of 13.3% over the same period from last year.

Despite this, a total of  48,500 enterprises register to temporarily suspend their operations during the reviewed period, up by 16%, with 35,000 enterprises halting operations and waiting for dissolution procedures, an increase of 15.7%. In addition, a total of 13,600 enterprises finalized dissolution procedures, up 0.8%. On average, 9,700 businesses leave the market every month. 

Firms encouraged to prepare workforce for digital economy

The Fourth Industrial Revolution is both creating opportunities and posing challenges to developed countries and countries entering the 4.0 revolution, including Viet Nam, from a perspective of readiness, ability integration and adaptation of the workforce.

To prepare the national workforce for the coming digital economy, multilateral cooperation initiatives that keep up with the requirements of the corporate environment, as well as in society generally, are needed.

This information was released at the Multi-stake Holder Forum (MSF) 2021 with the theme “Partnership in preparing a future-ready workforce for an inclusive digital economy in Viet Nam”, held in Ha Noi on Thursday. The forum was jointly organised by the Viet Nam Chamber of Commerce and Industry (VCCI) and the Viet Nam General Confederation of Labour and Samsung, under the technical co-operation of Viet Nam Business Council for Sustainable Development and Institute for Development and Community Health (LIGHT).

Pham Tan Cong, the VCCI’s chairman said: “The inclusive digital economy enables all employees and businesses to contribute to the growth process and enjoy the results of that growth. This is completely in line with the sustainable development goals set by the Vietnamese Government, most recently the National Action Plan to implement the 2030 Agenda for Sustainable Development in response to the United Nations Sustainable Development Goals.”

Cong said that as a national organisation representing employers in Viet Nam, VCCI always worked closely with the stakeholders in developing and promoting harmonious and progressive labour relations at enterprises, as well as solving the problem of a skilled workforce that meets the requirements of businesses and the economy. This included training skills for vulnerable groups such as women and young people.

This was also achieved through co-organising stakeholders including VCCI, Samsung Vietnam and the Viet Nam General Confederation of Labour for this year's Multi-Stakeholder Forum 2021. The aim was to build harmonious labour relations in the inclusive digital economy, bringing both economic and human values.

Ngo Duy Hieu, Vice President of the Viet Nam General Confederation of Labour said: "The COVID-19 pandemic has created unprecedented difficulties for the majority of employees and the business community. Resonating with the enormous challenges from the Industrial Revolution 4.0, it has set unprecedented and extremely difficult demands for every single employee in the present and future. Only quickly changing mindsets, catching up on awareness, improving self-efficacy, and finding the fastest approach will help employees have firm foothold in their work and be proactive in life and not be left behind. As a representative organisation of employees in Viet Nam, the Viet Nam Trade Union wishes and believes that all stakeholders will work together in good faith. This will help to define a common vision and come up with effective solutions to improve the adaptability of employees amid rapidly changing socio-economic conditions while industrial relations 4.0 is getting clearer.”

Choi Joo Ho, President of Samsung Viet Nam, said: “The global crisis caused by COVID-19 in the past two years has not only caused difficulties for the world economy but also poses unprecedented challenges to the competitive advantages that Viet Nam has built up in the global supply chain. On the way to overcome and fight against the COVID-19 pandemic, we are more and more aware of the value of health and life, and once again Samsung's business philosophy, 'People first', is inspired and motivated. Through the 2021 multi-stakeholder forum, Samsung hopes to be able to share more of our insights with stakeholders and discuss with them the new opportunities that the Fourth Industrial Revolution has brought for employees, especially the vulnerable, in accessing learning and development opportunities. This will make a positive and useful contribution to the sustainable development of Viet Nam.”

The Multi-Stakeholder Forum (MSF) is an initiative of Samsung Vietnam, which has been held annually in Viet Nam since 2018. The forum aims to connect the knowledge, enthusiasm, resources and energy of all stakeholders, including policymakers, NGOs, civil society, experts, researchers and businesses. Through this annual event, ideas, solutions and initiatives are shared and discussed, from which inspiration for action is spread, contributing to solving Viet Nam’s important social problems effectively.

The forum was attended by more than 300 delegates from government agencies, ministries, sectors, non-governmental organisations, social organisations, associations, businesses, research institutes, international and domestic trade union organisations, and professionals to participate directly at the event and through an online form. 

Green Growth Strategy promotes post-COVID-19 economic recovery

The Green Growth Strategy plays a crucial role in promoting economic restructuring alongside growth model renovation, said Minister of Planning and Investment Nguyen Chi Dung.

“It is an important approach to pursue sustainable development, thus contributing to post-COVID-19 economic recovery, transitioning to green economic development, and at the same time creating a premise to realise the long-term targets of low-carbon emissions and carbon neutrality so as to contribute to limiting global temperature rise,” he said.

Dung made the statement at a ceremony chaired by the Ministry of Planning and Investment in Ha Noi on Friday.

Attendees at the conference included representatives from ministries, sectors, localities, embassies of the UK, Germany, the Republic of Korea, international organisations, the World Bank, Asian Development Bank, UNDP, UNIDO, UNICEF, GIZ, KOICA, AFD, USAID, as well as representatives from businesses, academia, and researchers.

In light of the approved orientation, the National Green Growth Strategy (VGGS) was developed on the basis of extensive consultations with stakeholders in ways consistent with recent COVID-19-pandemic prevention regulations, Dung said.

The development process of the Strategy received strong support, co-operation and input from ministries, sectors, localities, relevant industry associations, embassies, international organisations, and development partners, Dung said.

By acknowledging and taking into consideration the inputs from stakeholders, the Ministry of Planning and Investment has completed the VGGS and submitted it to the Prime Minister for promulgation under Decision No 1658/QDTTg dated October 1, 2021.

The Prime Minister's approval of VGGS on the threshold of the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) in Glasgow, UK, which will take place in the next few days, has demonstrated Viet Nam's strong commitment to reducing greenhouse gas emissions through practical and concrete actions.

“The VGGS sets four important goals, namely reducing greenhouse gas emissions, greening economic sectors; greening lifestyles and promoting sustainable consumption, and greening the transition,” said Le Viet Anh, Director of the Department of Science, Education, Natural Resources and Environment under the Ministry of Planning and Investment.

The first objective of VGGS is to reduce the intensity of greenhouse gas emissions per GDP, which was also the objective of the previous strategy. This aims to assess comparative greenhouse gases (GHG) emission mitigation potential per unit of economic output, helping to determine the extent of environmentally-friendliness of the economy as its size is increasing, contributing to realising the dual goal of protecting the environment and developing “rapidly and sustainably,” he said.

Under VGGS, by 2030, the intensity of greenhouse gas emissions per GDP will decrease by at least 15 per cent compared to that of 2014. By 2050, the intensity of greenhouse gas emissions per GDP will reduce at least 30 per cent compared to that of 2014.

Hai Phong was the first locality to develop and implement a green growth plan for the 2014-2020 period. The city has succeeded in attracting a number of sustainable investment projects in accordance with the local economic development conditions.

Vice Chairman of Hai Phong City People's Committee Le Khac Nam said that the city had implemented a number of outstanding projects in the 2014-2020 period, such as waste treatment projects and an electric bus on Cat Ba Island.

International organisations have supported and co-ordinated with Hai Phong to implement green and environmentally friendly projects. The city will move towards applying digital technology, digital transformation, transforming the economic model towards greening, comprehensively implementing green economic development models including green ports, green islands, environmentally-friendly production model, reducing energy consumption in production activities, and applying renewable energy sources such as wind and wave energy.

Representatives from ministries, sectors, localities, embassies, international organisations, development partners, and businesses spoke highly of the new approach which was employed to determine the feasibility of the goals set forth in VGGS.

They also agreed with the plan and roadmap for the implementation of VGGS and believe that the Strategy will help realise the goals that Viet Nam had set for 2030 and 2045. Ministries, sectors, localities, agencies and relevant organisations agreed to work together immediately to devise a National Green Growth Action Plan and Action Plans on sectoral and local levels. Development partners and international organisations are committed to accompanying and supporting Viet Nam to implement the VGGS.

To conclude the meeting, Minister of Planning and Investment Nguyen Chi Dung emphasised the importance of collaboration during the implementation process, saying the support and close co-ordination of ministries, sectors, domestic and international organisations, the business community and experts play a fundamental role to ensure that the implementation of VGGS adheres to the views and orientations of the Resolution of the 13th National Party Congress, the 10-year socio-economic development strategy 2021-2030, and the 5-year socio-economic development plan 2021-2025.

Following Friday’s conference, the Ministry of Planning and Investment will preside over and co-ordinate with ministries, sectors and localities to research and propose to the Prime Minister to establish a National Steering Committee on Green Growth, make arrangements to devise a National Green Growth Action Plan, and implement other important contents. 

Businesses fear hard times aren't over yet

The hard times are not over yet, warned Le Anh Tuan, Deputy Director of Investment of Dragon Capital, even though the economy is forecast to rebound in 2022.

He made the comments at the “New opportunities – New actions” seminar held by the Ha Noi Young Entrepreneurs Association last week.

Tuan said the worst was over and the economy would soon recover thanks to two driving forces, namely public investment and low-interest rates. However, some hardships will persist.

According to Tuan, the economic recovery will likely be uneven across industries. Those less affected by COVID-19 and more capital-intensive will be back on track sooner than those hard-hit by the pandemic, like the more labour-intensive textile or footwear industries.

Vaccination rates are high in pandemic hotspots and are expected to be on par with developed countries like Japan or the US by March 2022. This means that Viet Nam can fully reopen the economy soon. However, it will take time for the service industry to recover as connections between provinces still remain tenuous.

The Deputy Director of Dragon Capital also said that the economic recovery would come with a drastic structural change in the economy. Big companies might continue to expand whereas small ones might weaken and wither away after the pandemic. This could already be seen in the stock market where the earnings of public companies were expected to rise by 38 per cent in 2021 and 28-30 per cent in 2022. On the other hand, dark clouds were on the horizon for small and medium ones as many of them ceased operation and awaited dissolution.

Tuan warned that it would take up to 4-6 months for the south to return to normality, and labour shortages may persist due to uneven vaccination rates between localities.

He expects the government and the National Assembly to pass large-scale aid packages to lift the economy out of hardship and kick-start recovery.

“Oil price went up from US$30 per barrel last year to US$80 this year, yet inflation still stays under control. Eight-month core inflation rose just 0.9 per cent. This means that inflation is quite favourable for big plans to be implemented”, Tuan said.

Additionally, a well-managed national debt had allowed Viet Nam to keep interest rates low. Thanks to these favourable conditions, the country could also introduce large-scale loans, with preferential interest rates, to help businesses in need of liquidity, Tuan said. 

Professional support for Ha Noi businesses provided by Czech experts

A two-week professional training programme, specially designed for small-and-medium enterprises (SMEs) in Ha Noi, has been provided by specialists from the Czech Republic.

The training was co-organised by the Association of Small and Medium-sized Enterprises and Crafts of the Czech Republic (AMSP ČR) and the Ha Noi Small and Medium Enterprises Association (Hanoisme).

As part of the AMSP ČR's 'Aid For Trade' project, the event is taking place from October 18 to November 2, with the aim of providing information and support on import-export, legal issues, business, and finance, among others.

Director of the Aid For Trade project, Kristyna Strnadova, said the training programme for Vietnamese SMEs was jointly planned by AMSP ČR and Hanoisme.

"Under the programme, specialists share information about the law and capital mobilisation for starts-up, such as financial issues and market experience, and issues relating to the opening of branches and business opportunities abroad. This is for all business and production areas, including commercial services, industry, agriculture, finance, education, e-commerce, and so forth," said Strnadova.

She said she hoped that the training will help build up more knowledge for young Vietnamese enterprises towards sustainable development.

In the opening session of the training on October 18, Strnadova presented information on start-ups in the Czech Republic, including statistics. To provide a clear picture, she presented the AMSP ČR's programme 'Young Business' which focused on supporting the entrepreneurial spirit of the youth and providing know-how on how to start an entrepreneurial business.

According to Hanoisme Vice Chairman and General Secretary, Mac Quoc Anh, Hanoisme was established in 1995. Its current membership is almost 4,000 enterprises.

Over the past few years, the association has supported enterprises with human resources training, business networking, finance, and so on, Anh said.

"Through this training, Hanoisme members are expected to gain useful knowledge about business, capital mobilisation, building and developing markets, and developing human resources, among others," Anh said. 

Enterprises in south-east resume production as COVID restrictions ease

With the COVID-19 pandemic basically controlled, businesses in the south-eastern region are gradually resuming production.

The pandemic has been gradually brought under control in hotspots such as HCM City and Binh Duong, Dong Nai and Long An provinces, paving the way for them to relax measures to revive the economy.

They have tweaked many policies to adapt to the new context, giving hope to businesses during this hard period.

Resolution 128 issued recently by the Government on ‘Safe adaptation, flexibility and effective control of the COVID-19 pandemic,’ which lists criteria to assess the level of pandemic risk and unified response measures by all localities, agencies and businesses, is good news for enterprises.

According to businesses, the spelling out of risk levels lets them know when they can continue operation and when they need to temporarily stop.

Unified regulations also prevent local authorities from creating their own regulations, enabling companies to develop and implement business plans, they said.

In Binh Duong Province, 3,330 businesses with 331,585 workers have resumed operations. The province has made efforts to sustain production to prevent supply chain disruption.

Local authorities said they are striving to ensure 90 per cent of businesses resume operations by the end of this month and 100 per cent by the end of this year.

The management of the province’s industrial parks is speeding up vaccination for experts and workers to achieve the goal of returning to normal by early 2022.

In Binh Phuoc Province, 42,540 workers at 166 enterprises in industrial parks have returned to work. More than 3,000 businesses outside the parks with over 56,000 workers have also resumed operations. Nearly 100 companies have announced plans to hire 9,200 workers.

In Dong Nai Province 1,582 out of a total of 1,713 companies with 497,050 employees have resumed operations.

But they face numerous challenges like a shortage of workers after a large number returned to their hometowns during the lockdown, rising costs of inputs and lack of funds.

Businesses have taken a cautious approach to reopening since the vaccination rate in some localities is only 20 percent.

Vo Tri Thanh, director of the Institute for Brand and Competitive Strategy, said support policies need to be implemented quickly and in a co-ordinated manner to help businesses recover and catch up with the rest of the world.

“The most important thing for businesses now is a support package which is big enough … and is implemented quickly enough,” he told Viet Nam News. 

Amended law to make VN insurance market keep pace with int’l practices

It is time to amend the Law on Insurance Business to help create a safe, transparent, sustainable and efficient insurance market that is close to international practices, National Assembly delegates said.

NA deputies discussed the draft amended law at the second plenary session of the 15th National Assembly (NA) this week.

On the sidelines of the discussion, Vu Trong Kim, a deputy of Nam Dinh Province said the amendment was important, especially in the context that Viet Nam had joined many new-generation free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Viet Nam-European Union Free Trade Agreement (EVFTA).

“The amendment of regulations on insurance business, which was issued 20 years ago, will contribute to improving competitiveness, helping the insurance market become an important capital provision channel for the economy besides the monetary and stock markets,” Kim said.

Notably, he said, the amended law would encourage more investors to participate in the local insurance market as it supplemented regulations on State management of insurance business activities to create a safer legal corridor.

According to the Ministry of Finance, the draft amended law closely follows seven main contents, aiming at increasing autonomy for insurers in business activities. Management agencies will give priority to supervising and promoting transparency and healthy development of the insurance market.

This draft completes regulations on financial management models for businesses, completes insurance contracts, and ensures the principles of equality, transparency and safety.

It also specifically encourages businesses to use and apply information technology to standardise insurance activities and transactions in the market, as well as supplementing regulations on developing and improving the quality of human resources in this field, and regulations on safety assurance, loss prevention and control, insurance fraud prevention, and improvement of dispute settlement.

According to deputy Nguyen Ngoc Bao from Bac Ninh, the amended law needs to pay more attention to agricultural insurance as it is not clarified in the law.

Agricultural insurance regulations should be clearly defined in the amended law to help develop agriculture, forestry and fishery programmes, Bao said.

In the first eight months of the year, the Vietnamese insurance market still recorded positive growth despite the COVID-19 pandemic. By the end of August, total assets in the insurance market were estimated at nearly VND643.6 trillion (US$28.3 billion), up 22.1 per cent year-on-year, with total premium revenue during the period also rising nearly 17 per cent to more than VND133 trillion.

Viet Nam is high potential for insurance services, but the development pace is still low compared to the region and world. The amended Law on Insurance Business is expected to take effect from 2023.

VietinBank posts pre-tax profit of nearly VND14 trillion

VietinBank has reported pre-tax profit of VND13.91 trillion (US$612 million) in the first nine months of 2021, up 34.2 per cent compared to the same period last year.

The commercial bank’ quarterly pre-tax profit also hit VND3.06 trillion in Q3. Meanwhile, net interest income reached VND9.87 trillion in the same quarter, accounting for the lion’s share of total operating income and going up 24 per cent year-on-year. By late September, loans and advances to customers topped VND1.08 quadrillion, presenting an increase of 6.8 per cent against early 2021.

In regard to provisions against credit risk, the commercial bank’s provisions for loans to customers rose to VND21.5 trillion by September 30, VND8.9 trillion higher than in early 2021. Bad debt coverage ratio was at 119 per cent on the same date.

VietinBank has been adopting various policies to help customers overcome their difficulties during the COVID-19 pandemic. To name a few, the commercial bank was cutting interest and fees, rescheduling debts, keeping debt classifications in accordance with regulations of the State Bank of Viet Nam, and offering supportive packages to customers facing hardships.

VietinBank said it would continue to stick to sustainable growth policies and not lower the bar in credit criteria in order to keep credit risk in check. 

VinaCapital open-ended funds easily beat index

All of VinaCapital Fund Management JSC’s open-ended funds achieved outstanding performances in the first nine months of the year.

They include the Vietnam Equity Special Access Fund (VESAF), VinaWealth Equity Opportunity Fund (VEOF), VinaCapital Insights Balanced Fund (VIBF), VinaWealth Enhanced Fixed Income Fund (VFF), and VinaCapital VN100 ETF.

VESAF reported a return of 57.6 per cent, making it the best performing open-ended equity fund in the market, a repeat of its market-beating performance in 2020.

VEOF and VIBF achieved returns of 45.2 per cent and 31.9 per cent, outperforming the benchmark VN-Index and putting them among the top three performers in their respective fund classes.

The VN100 ETF, launched in 2020, returned 31.8 per cent.

Bond fund VFF provided a return of 5.45 per cent, the highest in that category.

The total assets under management by these five funds were worth more than VND2.9 trillion as of September 30.

VESAF mainly invests in listed medium- and small-cap stocks with high growth potential and foreign ownership limits.

VEOF mainly invests in large and medium-sized companies.

VIBF is a balanced fund, investing in bonds and listed stocks, to mitigate overall portfolio volatility.

VinaCapital VN100 ETF is an exchange-traded fund with a portfolio that tracks and replicates the performance of the VN100 Index, with a tracking error maintained at less than 0.4 per cent.

Brook Taylor, CEO of VCFM, said, "We are very pleased that VinaCapital’s open-ended funds are giving investors outstanding returns that are well above their benchmarks and in the top tier of their asset classes.

“We are very optimistic about the growth prospects of Viet Nam's stock market in the years ahead. However, to be successful in stock investment, investors should have a long-term vision and solid investment knowledge.” 

Cyber security becoming a big concern for firms, individuals

Cyber security is now a concern for everyone, said Deputy Minister of Information and Communications Nguyen Huy Dung at the Viet Nam Security Summit 2021.

"Viet Nam needs to maintain and continue to improve its capacity to protect national prosperity, create digital trust and deploy cyber information for organisations, individuals and people in cyberspace," he noted.

The Authority of Information Security under the Ministry of Information and Communications co-ordinated with IEC Group to organise the Viet Nam Security Summit 2021 this week.

With the theme "Cyber Security In The Digital Age: Challenges And Solutions", the event is a forum to gather opinions of domestic and international experts on experience in improving response capacity towards cyber security risks.

The Ministry of Information and Communications will promote a basic cyber security campaign for people, providing basic information security applications and services on mobile devices.

Cyberspace is becoming a “global village", blurring geographical, regional and national boundaries. In particular, due to the impact of the COVID-19 pandemic, the whole world shifted activities online.

Viet Nam is ranked 25th in the Global Cybersecurity Index. This is the result of Viet Nam's efforts in ensuring cyber information security in the activities of agencies, organisations and individuals.

On average, each Vietnamese person uses the internet for about seven hours a day, which is expected to continue to increase in the near future. This also means that cyber security risks will increase.

The Department of Cyber ​​Security and Crime Prevention using High Technology (A05) discovered that more than 1,550 Vietnamese websites and portals with the domain name ".vn" were attacked by hackers in the first six months of this year, including more than 400 sites under the management of State agencies.

The number of hacked websites and portals under the management of State agencies has doubled compared to the first six months of last year.

Tens of thousands of customers and domestic internet service providers were infected with malware.

Colonel Nguyen Ngoc Cuong, A05 deputy head, said that cyber attacks targeting systems of important agencies such as telecommunications, aviation, energy, and medical sectors to destroy and steal data continued to take place, causing increasingly serious impacts.

Hacker groups continued to take advantage of the COVID-19 pandemic to attack the network by sending fake information and documents to spread malware.

Towards the goal of reducing the risks of cyber attacks in the near future, the Ministry of Information and Communications organises a basic cyber security campaign for people, focusing on providing applications and basic information security services on mobile platforms.

The Authority of Information Security, Ministry of Information and Communications and VTC Multimedia Corporation introduced the first solutions in the campaign.

It is the ViSafe application, which helps people improve their ability to protect themselves and be safe in cyberspace.

In the future, the Authority of Information Security will co-ordinate to promote cyber safety applications, raise awareness, change behaviours and habits online, and help internet users in Viet Nam have the opportunity to regularly protect themselves and protect Viet Nam's cyberspace.

Hanoi metro project acceptance report approved

The State Inspection Council has agreed on the acceptance report for the Hanoi-based Cat Linh – Ha Dong urban railway project and the line is expected to be put into operation soon.

The State Inspection Council has agreed on the acceptance for the Hanoi-based Cat Linh – Ha Dong urban railway project

Speaking at a meeting held on October 29 by the Ministry of Transport and the State Inspection Council, Minister of Construction, Nguyen Thanh Nghi, who is Chairman of the State Inspection Council announced the agreement and asked the project investor to closely co-operate with Hanoi authorities and concerned agencies to ensure legal issues and safe operations of the line.

At the meeting, CEO of the Hanoi Metro Co. Ltd., Vu Hong Truong, said that they are ready to operate the project and have sent reports to the Hanoi People's Committee on the plan for the first phase of the project's operation.

So far, 13 trains have received technical safety and environmental protection certificates from the Vietnam Register and a certificate from the Vietnam Fire and Rescue Police Department. They have also been put into trial runs since last December.

Invested by the Transport Ministry, the Cat Linh – Ha Dong metro line runs over 13 kilometres with 12 elevated stations from Cat Linh Ward in Dong Da District to Yen Nghia Ward in Ha Dong District.

The line has 13 trains and each has four carriages capable of carrying over 900 passengers. The trains have a design speed of 80 kilometres per hour but the commercial run’s speed would be capped at an average of 35 kilometres per hour. The project has a total investment of USD 886 million.

Unravelling the conundrum of the Great British market

For businesses to build on the progress of the Vietnam Value Programme and penetrate the UK market, experts say they will require a suitable branding strategy, including initiating long-term relationships with customers and distributors.

Vietnam has been emerging as a new manufacturing hub in Southeast Asia and the market with the world’s fastest-growing national brand, according to the Nation Brands 2020 report from Brand Finance. This is even more meaningful after the UK-Vietnam Free Trade Agreement (UKVFTA) took effect from January 1.

The prices of Vietnam’s agricultural products have become more competitive in the UK as more than 94 per cent of the total 547 tax lines for fruits and vegetables had been set to zero.

Vietnamese branded goods continue to benefit from the UKVFTA. Previously, it was difficult for Vietnamese fruits to enter the UK to compete with those from Indonesia, China, and Malaysia. Subject to the same tax rates, Vietnamese fruits had higher selling prices than their counterparts, making it difficult to attract consumers.

According to the Ministry of Industry and Trade, the export of agricultural and processed food accounts for about 10 per cent of the total value of Vietnam’s exports to the UK, equivalent to nearly $3 billion per year. This group of products boasts ample growth potential. Therefore, Vietnam can double its export value by 2025 if Vietnamese enterprises can exploit their advantages, increase investment in deep processing, and promote their brands in overseas markets.

To avail of the opportunities from FTAs, Vietnamese businesses can take advantage of rules of origin to jointly implement projects, exploit their networks, and develop logistics and e-commerce cooperation mechanisms for the processed food sector to penetrate the EU and UK markets.

The UKVFTA also provides the textile and garment sector with a solid commercial foundation based on mutual support. Vietnam’s textile and garment can diversify its raw material sources by importing from Japan and South Korea and then exporting to the UK to enjoy preferential tariff duties.

Very few ASEAN countries have similar advantages. However, the UK sets high technical standards and quality requirements for goods imported to its market. Nevertheless, the trade deal is a great opportunity for businesses with national brands to promote exports to the UK, such as Hoa Tho Textile and Garment JSC, Garment 10 JSC, and Viet Tien Garment JSC.

Vietnamese brands have already successfully penetrated the UK market. Bui Duc Tue, representative of Swiss-based One IBC Vietnam Group, said that the market share of Vietnamese-branded rice in the UK was only 0.43 per cent in 2019 and 0.45 per cent in 2020. The main reason is that Vietnamese exporters are often willing to allow distributors to use their own brands instead of Vietnamese ones.

One IBC Vietnam Group is providing trademark registration services in the UK. The company found that many businesses tried to bring Vietnamese brands to the UK market but found this difficult. Meanwhile, it is crucial for Vietnamese businesses to formulate a highly practical strategy to build their brands and gain stronger foothold in the UK.

The UK maintains a free trade policy to promote economic development, and has a large demand for agricultural products but remains very competitive for importers.

“Vietnamese products are still quite new to many Brits,” said John Gavin, director of the Southeast Asia Trade Support Organization, at a trade conference held in September.

Thus, Vietnamese brands can only enjoy benefits from the UKVFTA if they know how to take advantage of market opportunities with branded and quality products that meet the requirements of British consumers. “Vietnamese businesses have a lot to do to sell goods in the UK, including formulating a suitable branding strategy, establishing long-term customer relationships and building trust,” said Gavin.

Last year, Vietnam had 124 enterprises with 283 recognised-national branded products thanks to the Vietnam Value Programme. These businesses have gained a competitive edge when approaching overseas markets and, with a strong foundation product quality, they can learn faster.

One crucial element is that national brands cannot approach overseas markets without professional websites in English. Besides this, another effective method for businesses to approach customers is to display sample products at international trade fairs.

Currently, major UK supermarkets and retail groups tend to order directly from reputable manufacturers to diversify products as well as keep track of product origin and quality. Businesses with branded products can register to become suppliers to major UK supermarket chains through the instructions on their websites.

The UK market has a huge consumption demand. However, the export turnover of Vietnamese goods to the UK remains modest.

According to Nguyen Canh Cuong, trade counsellor at the Vietnamese Embassy to the UK, Vietnamese manufacturers should team up with local distributors to develop their own brands suitable for each market segment. These brands can also contact supermarkets or retail stores directly to bring their products into the UK.

If Vietnamese brands have yet to be recognised in the UK, it could be difficult to penetrate the market this way, and they may want to use local agents and distributors to gain access to the UK market, which could be an exporter or a factory to present their products or services to potential UK customers.

Another important thing, according to Cuong, is that Vietnamese businesses need to ensure that their distributors are knowledgeable about their products, marketing capabilities, financial potential, and reputation. They should always fulfil commitments to ensure the success of penetrating the UK market.

Master plan sets out seaport revitalisation

Domestic and international investors are expected to receive fresh opportunities to venture further into seaport projects in Vietnam, driven by expected investment mechanisms and new plans.

At a meeting to announce the master plan for seaport development over the next 10 years in early October, Minister of Transport Nguyen Van The said that the ministry is working on special mechanisms that could create more favourable conditions for private investments in seaports.

The minister urged cities and provinces to work closely with the Ministry of Transport (MoT) on project development and investment attraction. According to Deputy Minister Nguyen Xuan Sang, the plan gives priority to international gateway and large-scale seaports serving the socioeconomic development of the country, as well as large-scale terminals serving industrial and economic zones.

“Private investment will make up 95 per cent of the $13.6 billion going into the development of seaports in this period. State funding will focus on public infrastructure and key areas to encourage investment,” Sang said.

Seaports are among the most attractive segments in the transport sector in this country thanks to a certain control of revenue sources. The plan could thus bring about more opportunities for investors, with domestic and international ventures enjoying equal potential.

Under the master plan, seaports could be able to handle 1.1-1.4 billion tonnes of goods and commodities by 2030, with container throughput reaching 38-47 million TEU. By 2050, the seaport system is hoped to be developed on par with regional and global counterparts.

According to the MoT, funding by corporations such as Hutchinson, PSA, DP World, APM Terminals, and SSA has changed the shape of Vietnamese seaports, especially the Cai Mep-Thi Vai port complex in the south.

Foreign investors also funded Lach Huyen International Gateway Port in the northern port city of Haiphong. In 2018, the first two foreign-invested terminals were put into operation through a joint venture between Saigon Newport Corporation, Mitsui O.S.K. Lines Ltd. and Itochu Group from Japan, and Taiwan’s Wan Hai Lines Ltd., rendering them the first public-private partnership port project in the country.

Before the pandemic, other investors from Japan, the United States, and South Korea also expressed strong interest in acquiring state stakes in major ports in Haiphong, Ho Chi Minh City, and Danang.

Six major seaport clusters in the 2021-2030 master plan for Vietnam

The first seaport cluster plan will focus on upgrading the Haiphong seaport system and upgrading Lach Huyen International Gateway Port for container throughput. Dinh Vu-Song Cam Port is to serve local industrial zones. Goods in bulk, liquid cargo, and gas form will be transported to the South Do Son and Van Uc areas. The South Do Son and Van Uc wharves are developed to not only promote the development of industrial zones and industrial clusters in the south of Hanoi-Haiphong Expressway but also present a driving force for the industrial development in the northern province of Thai Binh. Infrastructure around the northern seaport complex will be more favourable when the beltway 4 and the inland waterway port system along the Red River are put into use.

The second seaport cluster lies in the central province of Thanh Hoa, alongside Tho Xuan Airport, Nghi Son Economic Zone, and a series of key national transport projects like the North-South Expressway, the North-South High-speed Railway. Moreover, the Hanoi-Vientiane expressway will connect with seaports.

The third seaport cluster is in the central city of Danang, closely connecting to the south of Laos, the north of Cambodia, and the three-way crossroads of Indochina via Thailand. In addition, Danang International Seaport, the North-South High-speed Railway, and the North-South Expressway could act as a magnet for attracting regional economic development and investment.

The fourth seaport cluster lies in the central province of Khanh Hoa. Van Phong Seaport has favourable natural conditions and deep stream depth, which could be developed into the largest gateway seaport in Vietnam.

The fifth seaport cluster is the Cai Mep-Thi Vai port complex in the southern province of Ba Ria-Vung Tau. The cluster is promising fresh opportunities following the opening of a series of expressways, including Bien Hoa-Vung Tau, beltways 3 and 4, and Ben Luc-Long Thanh, among others.

The last seaport cluster is Tran De Seaport. At present, the Mekong Delta region is home to Can Tho International Airport, connecting inland waterways and a road system. However, currently this seaport can accommodate a limited number of vessels, and regional cargo for export to the EU and the United States has to go through Ho Chi Minh City and the Cai Mep-Thi Vai connection, with high transportation costs involved. Source: Ministry of Transport.

Haiphong lifts sustainability footprint with eco-IP model

The northern port city of Haiphong is calling for more investment into its eco-industrial zones, with investors growing more aware of sustainable development.

According to Haiphong Economic Zones Management Authority, the city’s industrial zones (IZs) and economic zones (EZs) contribute about 80 per cent to its export turnover and 70 per cent of the total industrial production value.

Regarding the development orientation of Haiphong’s IZs and EZs, Chairman of Haiphong People’s Committee Nguyen Van Tung said, “Haiphong has been driving the development of sustainable IZs, especially ecological ones, enhancing its competitive advantages in attracting investment and developing a sustainable environment.”

Since Vietnam has yet to deploy its first eco-industrial park (eco-IP), Haiphong has been communicating with its sister city in Japan to implement a green IP development model. The city also applied to join such a programme launched by the Ministry of Planning and Investment (MPI) and the United Nations Industrial Development Organization.

As a result, DEEP C Industrial Zones were approved by the MPI as one of the pilot zones to transform into an eco-IP model.

Currently, there are two IZs that aim to transform themselves into eco-IPs in Haiphong, DEEP C (540 hectares) and Nam Cau Kien (nearly 270ha). These eco-IPs will account for more than 16.5 per cent of the nearly 5,000ha in Haiphong’s 12 IZs.

Melissa Slabbaert, head of the Sustainable Development Department of DEEP C Industrial Zones, said that tenants at DEEP C can benefit from and resonate with sustainability values in fields like chemicals, firefighting, Internet of Things, rooftop solar energy, and road construction from plastic waste.

DEEP C will continue promoting renewable energy generation, mainly solar and wind. By 2025, DEEP C expects to supply 50 per cent of the power demand in its zones from renewable energies.

Haiphong has been an attractive destination for domestic and foreign investors alike. Its flourishing construction scene for high-quality IZs and EZs adds to its appeal and promises to place the province even higher on foreign investors’ agendas.

The city is now home to 570 investment projects, including more than 400 with foreign participation, offering jobs for about 160,000 workers, including 4,500 overseas ones.

Data from Savills Vietnam in 2020 shows that the occupancy rate of Haiphong’s IZs and EZs hit 73 per cent with rental prices reaching $96 per square metre per lease cycle, up 3.2 per cent compared to 2019. Although rents had been rising, more investment has been pouring into the city.

“The market excitement and the sudden demand increase for industrial land can be explained by better development of infrastructure and accessibility to new locations, roads, piers, and airports,” Matthew Powell, director of Savills Hanoi, said.

Currently, Haiphong’s IZs and EZs are backed with convenient logistics locations, good infrastructure, and many synchronous utilities to serve investors. It has been forecast that foreign investment into Haiphong’s IZs and EZs may reach about $5 billion in the near future.

Of this, Sao Do Group registered $1 billion in Nam Dinh Vu IP; VSIP Haiphong Co., Ltd. registered $1-1.5 billion; and Saigon-Haiphong JSC registered $1 billion in Trang Due IP.

According to Haiphong’s development strategy by 2025, the city will develop 15 more IZs, aiming to attract an additional $12-15 billion in investment capital. Following such ambitious goals, the development of eco-IPs will be one of the key points to ramp up Haiphong’s appeal to foreign investors.

Tra Vinh fresh sap coconuts officially introduced in Australia for the first time

The Vietnam Trade Office in Australia has shared that Tra Vinh sap coconuts have been exported by plane to Australia in large quantities for the first time, and were distributed after a short time of marketing, with the total value of shipments sold in Australia at around AUD70,000 (over US$43,000).

Specifically, the Trade Office has accompanied enterprises to ship 2,000 fresh sap coconuts from Tra Vinh Province to Australia for consumption. After a short time waiting on customs clearance, the importer said that all the produce had been distributed.

Previously, Tra Vinh sap coconut was exported to Australia in small quantities, mostly frozen. This is the first time that 2,000 fresh sap coconuts have been exported by air.

The shipment is the result of efforts made by Uu Dam Company and the Vietnam Trade Office in Australia towards the realisation of a programme on enhancing the branding and value of Vietnamese agricultural products in Australia.

With a retail price of AUD30-35 per each coconut, Tra Vinh sap coconuts are high value items, therefore, the Trade Office has deployed advertising on social media and is releasing a publication introducing cuisine made from sap coconut combined with other Vietnamese fruits to further popularise Vietnamese products in Australia.

Sap coconut, a specialty with soft, thick pulp, is grown only in Cau Ke District, the southern province of Tra Vinh where the soil is suitable for it. The variety has soft and thick pulp and is used mostly for desserts like coconut shakes and flesh mixed with milk, sugar and ice.

A mature sap coconut tree can produce 120-150 nuts a year, but only 40-50% have the soft and thick pulp that qualify them as sap, and the remaining have normal pulp.

Timber enterprises rapidly recover production

A workshop on wood industry enterprises' preparation to recover in the new normal was held on October 29.

President of the Association of Vietnam Timber and Forest Product (VIFOREST) Do Xuan Lap said the COVID-19 epidemic has gradually been placed undercontrol in provinces and cities, many localities have step by step reopened while allowing production and business activities to reopen in the new normal.

According to a number of export wood processing, in the context that orders are very abundant, timber enterprises are urgently embarking on building production organisation project, in the context of the new normal,along with policies on attracting workers back to work, mobilising financial resources, and taking initiative in raw materials and auxiliary materials in the context of high prices.

Deputy Director General of the General Department of Forestry Bui Chinh Nghia emphasised that, despite facing difficulties in exporting in the third quarter, from the beginning of October, wood industry exports have grown significantly again.

With the current recovery momentum, the whole year export target of over US$14 billion is positive, he said, adding that state management agencies will continue to accompany businesses in supporting and creating favourable conditions for wood industry enterprises to overcome difficulties to achieve the set growth targets in the last months of the year.

Deputy Minister of Agriculture and Rural Development Le Quoc Doanh also affirmed that up to now, the epidemic in localities, especially in the Southeast region, has been basically been put under control.

Implementing Resolution No.128/NQ-CP of the Government, it is expected that localities and businesses will actively develop scenarios and plans for epidemic prevention and control along with effective production recovery to ensure the dual goals of both controlling the epidemic and promoting production and stable and sustainable socio-economic development, he noted.

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