More than 50 suppliers, technology companies and universities attended the first Vietnam Aerospace Industry Forum on August 25 to seek cooperation opportunities with Boeing, a leading global aerospace company.

Held by Boeing, the forum was part of Boeing’s collaboration with Vietnam and its commitment to enhance the country’s aerospace capabilities, said Micheal Nguyen, country director of Boeing Vietnam.

It is estimated that in the next 30 years, Southeast Asia will need 3,000 new airplanes to meet people’s travel demand and Vietnam is a leading country in the region in terms of aviation industry growth.

Boeing is willing to cooperate with Vietnamese suppliers and support them to become an important part of the company’s global supply chain.

In addition, Boeing also wants to partner with Vietnamese technology universities to train pilots and aviation engineers and researchers to prepare an emerging workforce with sophisticated technical skills for the future.

At the forum, Boeing also shared the company’s strategy to decarbonise aviation with a focus on fleet renewal, operational efficiencies, and renewable energy transition with an emphasis on sustainable aviation fuels and advanced technology.

“The significant opportunities outlines at the forum align with the Government’s ‘Make in Vietnam’, ‘Digital Vietnam’ and Green Energy goals. We will continue to work with Vietnamese industry and universities to provide a foundation for long-term industrial growth,” Micheal Nguyen said.

Speaking at the forum, Do Nhat Hoang, director of the Ministry of Planning and Investment's Foreign Investment Department, suggested Boeing continue collaborating and transferring technology to Vietnamese companies in aviation infrastructure development and technical services provision such as component production and aircraft maintenance.

Boeing was also asked to develop a pilot and aviation engineer training centre, help connect Vietnamese companies with global suppliers as well as establish an aeroplane production facility in Vietnam.

Airline’s environmental tax exemption proposal rejected

Based on the current situation and the environmental protection tax law, the Ministry of Finance has turned down a proposal on exempting environmental projection tax on jet fuel.
The Ministry of Finance has written to Vietnam Airlines saying that the jet fuel tax exemption has yet to be prescribed by the environmental protection tax law.

Environmental protection tax is designed to restrict the import, production and consumption of goods that are not eco-friendly and to encourage the development of the green economy. Jet fuel tax exemption is not in line with the current regulations, according to the ministry.

The ministry has rejected airlines’ similar proposals on fuel jet tax exemption in the past as the Government still needs many enterprises to share its burden of ensuring social security and improving people’s living standards after the pandemic.

Moreover, the fuel market worldwide has shown signs of cooling off with the recent decline in oil prices.

The Government has taken measures to reduce inflation and help the aviation sector ride out difficulties and recover in the new normal in recent years.

After the resolution on jet fuel tax reduction in 2021, the Government continued to issue another one to extend the tax reduction until the end of 2022. Under the resolution, the tax is cut by 50% from VND3,000 to VND1,500 per liter to enhance support for the aviation sector.

On July 6, 2022, the National Assembly Standing Committee issued a resolution to reduce the environmental protection tax on gasoline, oil and grease, including jet fuel, to the floor level in the tax bracket from July 11 to December 31, 2022.

That was the maximum adjustment the National Assembly Standing Committee is allowed to make under its authority. If necessary, the request for further environmental protection tax reduction will be considered and decided by the National Assembly.

Investors to be selected for components of Long Thanh International Airport

The Civil Aviation Authority of Vietnam (CAAV) is now selecting investors for maintenance workshops and ground-handling services, which is a part of subproject four of Long Thanh International Airport.

According to the plan, the CAAV will submit to the Ministry of Transport the evaluation result of dossiers registering to develop the workshop in the construction and operation of ground-handling service facilities and aircraft cleaning treatment areas at Long Thanh International Airport.

These works are the first segments of subproject four of the airport. The expenditure for developing these segments stands at $6.3 million, excluding the fees for compensation and support resettlement for residents and land rent.

Pham Van Hao, deputy director of the CAAV, said that to date, the authority received four dossiers from four investors, including Hanoi Ground Service JSC, Saigon Group Serve JSC, Vietnam Airport Ground Services Co., Ltd., and Vietjet Aviation JSC.

The result is planned to be published in late September. The selected investor will develop the segments with their own capital and is allowed to exploit the projects within 25 years.

Deputy Minister of Transport Le Anh Tuan said that, along with the project in construction and operation of ground-handling service facilities and aircraft cleaning treatment areas, as of mid-August, the authorities approved the remaining seven segments of the subproject to be ready for investors' proposals.

According to CAAV, the leading criteria to select investors is experience and must have experience in base maintenance ofat least 4C level.

Vietnam – Laos expo helps boost bilateral trade

The Vietnam – Laos Trade Fair 2022 (VIETLAO EXPO 2022) officially kicked off in Vientiane, Laos on August 25. 

This is the biggest trade promotion event held annually by the two countries' Ministries of Industry and Trade in the Lao capital city, with the aim of promoting exports and expanding the sale network for Vietnam's goods to Laos and the northeast region of Thailand. 

It also provides a venue for producers and investors of Vietnam and Laos to share experience, set up partnerships and ventures, and foster technology transfer. 

In his opening remarks, Vietnamese Deputy Minister of Industry and Trade Do Thang Hai emphasised that this is one of the large-scale trade promotion activities to practically celebrate the Vietnam – Laos, Laos - Vietnam Friendship and Solidarity Year in 2022. 

There are 250 pavilions at the five-day event, including 120 run by nearly 80 Vietnamese companies which are exhibiting their pharmaceuticals; medical equipment; agro-forestry-aquaculture products and processed foods; textiles; handicrafts and interior - exterior decorations; plastics and consumer products. 

A number of business matching meetings, and art performance and cultural exchange programmes will be held in the framework of the expo. 

The Lao market is considered as an important gateway for Vietnamese enterprises to reach further to other ASEAN countries.

In recent times, the Bilateral Trade Agreement and the Vietnam-Laos Border Trade Agreement have contributed to promoting trade in goods and services between the two countries. Their two-way trade turnover hit 4.5 billion USD in the 2018-2021 period with an average annual growth of more than 10%. 

Last year, the trade reached 1.37 billion USD, up 33.3% year-on-year. In the first seven month of 2022, the two-ways trade reached nearly 949 million USD up 24.2% compared to the same period of 2021. Notably, exports from Vietnam to Laos have increased for the last four consecutive months, and strongly surged by 33.9% in July./. 

42nd ASEAN Railways CEOs’ Conference concludes in Da Nang

The 42nd ASEAN Railways CEOs’ Conference wrapped up in the central city of Da Nang on August 25, according to General Director of Vietnam Railways (VNR) Dang Sy Manh.

The three-day conference discussed 45 reports focusing on the theme of post-pandemic recovery and development.

The VNR delivered five reports recommending solutions for the sustainable recovery and development of the sector and a master plan on expanding rail networks from 2021 to 2030, with a vision towards 2050.

Manh said all reports and discussions at the conference provide useful lessons and experience for the railway sectors of ASEAN member states. Participants agreed that each regional country must play a more active role to effectively operate their own railways and beef up regional and global integration.

Manh unveiled that in the coming time, the VNR plans to further boost cargo transportation and develop infrastructure with greater focus placed on expanding rail links among countries.

Additionally, the State-owned corporation will strive to ramp up passenger transport by offering a wider range of services and vehicles to satisfy different segments of customers.

The next meeting is scheduled to take place in the Philippines in 2023.

Firms urged to limit risks in foreign trade

The trend of international economic integration has been opening up many trade opportunities for the Vietnamese business community. However, there are also many scams that cause local firms to suffer heavy losses.

This was heard at a workshop "Prevention of disputes and fraud in international trade - experiences for Vietnamese businesses from the case of cashew nut containers" held in Hanoi on August 23.

In March, the business community expressed concern regarding a case in which cashew nut containers had problems with shipping documents sent to Italy and Turkey, meaning there was a risk the shipments would be lost.

With the desire to share experiences on the case with the business community as well as help improve their understanding of international commercial law, the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Ministry of Industry and Trade organised the event. This also aimed to identify similar risks in commercial activities; thereby preventing and avoiding disputes and fraud when implementing import-export transactions.

Dau Anh Tuan, head of VCCI’s Legal Department, said according to the Global Association of Anti-Fraud Professionals, every year, businesses globally are scammed and lose about 5% of their revenue. The average scam is worth about US$1.7 million. In 2022 alone, up to 46% of global businesses said they were victims of fraud and economic crime.

He hoped that experts, associations and the business community seriously consider this problem and find solutions to avoid such scams and minimise losses due to fraud.

Bah Khanh Nhut, Vice Chairman of the Vietnam Cashew Association (Vinacas), spoke about the fraud of 76 containers of cashew exports to Italy and gave recommendations to associations and businesses in other economic sectors and fields.

He said in this case, Vietnamese businesses were overly trusting of brokerage companies and did not check out information. During the COVID-19 pandemic, large orders made it easy for businesses to be negligent because they wanted to sell goods; especially at a time when there were few transactions in the market. In addition, the payment method has risks.

He said, in international business, the role of a broker is very important, but businesses need to have an independent check on partners. This is why the role of the Trade Office in foreign countries is very important.

Ngo Khac Le, an arbitrator of Vietnam International Arbitration Centre and Deputy General Secretary of Vietnam Logistics Business Association, suggested that Vietnamese firms could appoint a collection bank or require a deposit to limit losses and prevent risks. They should be more cautious when dealing with new partners for the first time. They should also call to find out the specific person's name, mobile number and use the company's email address to make it easier to identify the person or company in the future.

Lawyer Phan Vu Anh, Head of the Legal Department, inspector of Northern Food Corporation, said that when resolving disputes, businesses should pay attention to the specificity of each country and market.

He added that even when winning in overseas disputes, the enforcement is also very complicated. Therefore, businesses need to approach and choose a dispute resolution unit suitable to the actual conditions.

He also noted that businesses always have to build many scenarios to anticipate and respond to risks. At the same time, it is very important to determine how to build business relationships with the Vietnamese Trade Office abroad because even if there is no dispute, businesses can still receive a lot of support from these agencies./.

Vietnam, India have potential for automobile cooperation: insiders

Vietnam and India have substantial opportunities to cooperate in the automobile industry as Vietnam is accelerating FDI attraction in the sector, an official has said.

Nguyen Anh Tuan, Deputy Director of the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment (MPI), pointed out that investment ties between Vietnam and India have yet to match their potential.

India’s investment accounts for only 0.2% of the total FDI in the Southeast Asian nation, he told the India-Vietnam Business Meet on Auto Sector held recently in Hanoi.

Indian Ambassador Pranay Verma said the 800-member Automotive Component Manufacturers Association of India (ACMA) wanted to explore investment opportunities in Vietnam.

Nguyen Thi Thu Ha, General Director of Invest Global, which offers consulting services, stressed that Vietnam has great potential to boost the auto industry, which is expected to significantly contribute to the national economy.

However, the number of Vietnamese suppliers in the sector remains limited, and only a few of them are part of the country’s supply chain for producers and assemblers.

A deal between the Vietnamese and Indian auto sectors would be reciprocal, Ha said, adding that a number of Indian firms are already operating effectively in Vietnam, such as Minda, Spark Minda and Star Engineering.

Sharing Ha’s view, Dang Hoang Mai from the Vietnam Institute of Strategy and Policy for Industry and Trade said Vietnam has the potential to expand the market for electric vehicles as its car ownership is just 2.3%, equivalent to one tenth and one twentieth of Thailand and Malaysia, respectively.  

Vietnam aims to attract major businesses and groups, with priority given to high-tech, support industries, innovation and digital economy, Tuan said, emphasising that it is suitable time for Indian investors to join the Vietnamese auto sector and its support industry.

Vietnam int’l furniture, home accessories expo to resume later this month

The Vietnam International Furniture and Home Accessories Fair (VIFA-EXPO) will open in Ho Chi Minh City on August 31 after two years of hiatus due to the COVID-19 pandemic.

As heard at a press conference held by the organiser HAWA Corporation on August 25, it will take place at the Saigon Exhibition and Convention Centre (SECC) and last until September 3.

Director of HAWA Corporation Dang Quoc Hung said the expo has been the largest annual fair and biggest export promotion event of the sector for years.

This year, 175 domestic and foreign enterprises will run 975 stalls on an area of 15,000 sq.m, offering visitors a diverse range of woodwork products such as furniture, handicrafts, interior décor, and gifts.

Notably, of the total, there are 140 booths operated by 34 foreign enterprises from 12 nations and territories, including Belgium, Canada, China, Denmark, Indonesia, and the Republic of Korea.

To date, the organiser has confirmed the registration of nearly 2,000 visitors, of whom 79% are foreigners.

Hanoi seeks measures to propelling supporting industries

Over the years, Hanoi has recorded encouraging outcomes after years of implementing many programmes, plans, mechanisms and policies for supporting industry development, as heard at a conference held in the capital city on August 24.

The event, organised by the municipal Department of Industry and Trade, focused on Hanoi’s supporting industries, gathering a large number of managers, policy makers, scientists, and businesses.

According to a representative from the department, enterprises in the local sector has seen a continuous increase in their quantity, scale and quality. Most of them operate to produce components and spare part; products serving garment-textile and footwear manufacturing; and those serving the high-tech industry. A significant number of firms boasts production systems and products meeting international standards, which makes them capable of joining the global supply chains of multinational conglomerates.

However, because the capital’s supporting industries in Hanoi and Vietnam were formed and developed later than that of other nations in the region, their growth process requires right orientations, mechanisms, policies and solutions that are strong enough to keep pace with other countries regionally and globally.

At the workshop, the delegates focused on discussing three main topics of localisation needs and the adaptation of domestic enterprises; digital transformation in production; and innovation trends given participation in the global supply chain.

From the discussion, the city’s related potential and demand for growth were presented, with solutions to its shortcomings and policies for its supporting industry development proposed.

Speaking at the workshop, Tran Thi Phuong Lan, Acting Director of the municipal Department of Industry and Trade, said that in the nation’s industry development, supporting industries play an important role, as the supply of materials, spare parts, semi-finished takes place domestically to ensure the initiative for the industry, and avoid being heavily dependent on foreign countries and fluctuations of the global economy.

The growth of the sector contributes to well exploiting resources, reducing imports; limiting the export of resources and raw processed products; increasing value added of industrial products; expanding the ability to attract foreign direct investment; and developing a system of small and medium enterprises, she added.

Dr. Pham Xuan Khanh from the Hanoi Vocational College of High Technology, said currently, the competitiveness of Vietnamese youth when participating in the regional and international labour market is still limited. Vietnam's trained human resources are mainly located in the processing and assembly stage of the production and business chain, while the number of highly qualified employees remains modest, he added.

150 businesses participate in Vietnam Startup Day in 2022

Vietnam Startup Day 2022 kicked off in Ho Chi Minh City on August 25, attracting the participation of 150 Vietnamese and international startups.

The event was jointly held by the Business Startup Support Centre (BSSC) and the Vietnam Communist Youth Union of Ho Chi Minh City.  

It represents the largest annual function of the startup ecosystem in the country and throughout Southeast Asia, that has attracted the participation 15,000 visitors, including more than 1,400 investors, representatives from various investment funds, entrepreneurs, as well as experts from Vietnamese and international start-up support organisations.

The programme witnessed the involvement of leading corporations across multiple sectors, major Vietnamese and international enterprises, and investment funds such as ThinkZone Ventures and Zone Startups Vietnam.

During the day, start-up firms have the opportunity to introduce their products and services to visitors, investors, the startup community as a whole, along with getting advice from reputable investors from Vietnam and abroad.

Int’l Furniture and Home Accessories Fair to open in HCM City next week

The Vietnam International Furniture and Home Accessories Fair (VIFA-EXPO 2022) is anticipated to take place between August 31 and September 3 at the Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City.

This information was unveiled at a press conference held on August 25 in Ho Chi Minh City to introduce VIFA-EXPO 2022, which is being organised by HAWA Corporation.

This year’s expo is expected to attract 175 domestic and foreign firms from 12 countries and territories worldwide, including Belgium, Canada, China, Denmark, Indonesia, the Republic of Korea, the Netherlands, Singapore, Thailand, and the United States.

On the sidelines of the fair, international buyers will take a fact-finding tour of wood processing factories in Binh Duong, Dong Nai, and Long An provinces.

Tran Hoai Huu, director of Gia Nhien Company, noted due to disruption in trade exchange as a result of the COVID-19 pandemic and continuing global fluctuations, several wood processing enterprises are facing a shortage of orders.

The function is expected to create a platform for export businesses to meet international partners and buyers and stay updated on market trends, establish co-operative relations, and sign export orders in the near future, he said.

At present, roughly 2,000 visitors have registered to participate in the event, of which international visitors accounted for up to 79% of the total.

300 local, foreign businesses attend Vietbuild 2022

The 2022 Vietbuild International Exhibition opened in Ho Chi Minh City on August 25 themed “Construction - Building Materials - Real Estate - Interior and Exterior Decoration.”

The exhibition showcases a wide range of products in construction, building materials, exterior-interior decoration, and household appliances across 1,000 booths from nearly 300 local and foreign exhibitors.

The event offers a platform for companies to meet, exchange information, explore prospects for future co-operation, and introduce their latest products and technologies, according to details given by organisers.

Seminars and business-matching sessions are also being held on the sidelines of the exhibition aiming to seek innovative technologies and materials in the construction industry and encourage businesses to continue their research and produce new, high-tech products to meet urban construction and housing market demand for green and sustainable development.

The exhibition is being co-organised by the Ministry of Construction’s Information Centre and the Vietbuild Construction International Exhibition Organisation Corp. It will run until August 29.

Quang Ninh Province emerges as new manufacturing hub
     
Quang Ninh has emerged as a new manufacturing hub in northern Viet Nam by transforming its rural tourism-based economy and industrialising to attract foreign investments, especially in the tech sector, experts said.

Speaking on Wednesday in HCM City at a conference held to promote investment in the north-eastern province, Chau Thanh Hung, deputy head of the Quang Ninh Economic Zone Authority, said the province's economy has gradually shifted, with the services and industrial sectors increasing their share at the cost of agriculture.

The province has a strategic geographical location, and serves as a gateway connecting Viet Nam with China and Southeast Asia, he said.

It has extensive transport infrastructure with an international airport, seaports, the Mong Cai international border gate and modern facilities.

It is home to major economic zones such as Quang Yen, Van Don and Mong Cai and 15 industrial parks (IPs). Another eight IPs are expected to be built in future.

It possesses the longest highway network in the country, linking it with Ha Noi and Hai Phong port city and onward to northern Viet Nam and southern China, he said.

It has sped up construction of the Van Don - Mong Cai expressway to reduce the time to the Chinese border to 50 minutes from two hours when it opens to traffic next month, he said.

Quang Ninh is also focused on administrative reforms and improving the business climate and competitiveness, he added.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes