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He urged the implementation of measures and tools to manage and regulate the supply for both gold bullion and gold jewelry production, in order to ensure that market activities and transactions are managed and controlled tightly without affecting the exchange rate or foreign exchange reserves, and to prevent speculation, manipulation, or price hikes.
The PM also underlined the need to speed up the IT application and digital transformation in the management work, noting the compulsory issuing of e-invoices for gold transactions isto improve transparency.
The SBV, the Ministry of Public Security, the Ministry of Industry and Trade, the Government Inspectorate, and other relevant agencies were asked to continue to seriously perform their tasks of monitoring, inspecting, supervising, and dealing with law violations such as cross-border gold smuggling, profiteering, speculation, manipulation, and taking advantage of policy loopholes to hoard gold and drive up prices, causing instability and jeopardising the safety of the gold market./.
VinFast begins selling VF DrgnFly electric bike in US market
Leading Vietnamese electric vehicle maker VinFast began selling its VF DrgnFly electric bike in the US on April 12, with the product’s price listed at US$2,599.
This comes after the product marked its debut at the Consumer Electronics Show (CES) in January, affirming its strong relevance to the US market and its potential to be at the forefront of the global green transportation revolution.
The bike's design draws inspiration from the image of a flying dragon in the Vietnamese culture. As a smart electric bike, the VF DrgnFly supports a mobile application that allows riders to enjoy a range of smart features, including multiple driving modes, ride statistics records, and opening/locking with special modes.
Most notably, the product boasts an impressive range of up to 110 km on a single charge supported by an advanced energy optimization system that allows riders to travel longer distances.
Businesses bullish on Q2 outlook: GSO
Processing and manufacturing enterprises have forecast better performance in Quarter 2 despite global headwinds posed by conflicts and high production costs, according to the General Statistics Office (GSO)’s survey.
The GSO said more stringent requirements on quality, production process, information and green production will exert pressure on domestic businesses, but 82% of the surveyed firms expect their business will improve from Quarter 1, while only 18% anticipate more difficulties.
Director of the GSO’s Industry and Construction Statistics Department Phi Thi Huong Nga said that industrial production thrived in the first three months of the year, with the sector’s index growing 5.7% year-on-year. She noted that 26 out of 33 industries showed growth, with 12 of them posting two-digit expansion.
Strong growth was recorded in production of electrical equipment (24.8%), that of metal (16.6%) and furniture (18.1%), she said, adding production of key exports bounced back such as garment and textile (14.6%), clothes (3.7%), and shoes and related items (5.5%).
Industrial hubs posting high increases in index of industrial production (IIP) in Q1 included Bac Giang (23.9%), Thanh Hoa (20%), Quang Ninh (14%), Hai Phong (12.6%), Vinh Phuc (6.7%) and Thai Nguyen (6.2%).
The IIP growth in Q1, nevertheless, was lower than the pre-pandemic level, and the lowest for Q1 in the past 10 years except for 2023.
GSO General Director Nguyen Thi Huong proposed that the Government roll out stimulus measures to boost consumer demand so as to support production as well as stabilise prices and material supply for enterprises./.
Investment in HCM City’s industrial zones tops 190 million USD in Q1
Industrial and export processing zones in Ho Chi Minh City attracted 191.93 million USD in investment in the first quarter, equivalent to 34.9% of the target for 2024 and 112.12% higher than the figure in the same period last year, the HCM City Export Processing and Industrial Zones Authority (HEPZA) reported on April 12.
Of the total sum, foreign investment stood at 176.7 million USD, rising 3.6-fold from a year earlier. Meanwhile, domestic investment fell 63.15% to 352.42 billion VND (14 million USD).
Head of HEPZA Hua Quoc Hung said that in Q1, businesses based in local export processing and industrial zones operated stably. Many got orders again after facing difficulties for a long period.
Businesses at the zones posted an estimated export turnover of 2.17 billion USD in Q1, up 6% over the same period last year. They employed about 277,000 workers, an increase of 10% against the end of 2023, he noted./.
Foreign experts discuss ways to help Vietnam upgrade stock market
Chairwoman of the State Securities Commission (SSC) Vu Thi Chan Phuong has held a working session with representatives from FTSE Russell and Morgan Stanley to discuss how to upgrade the Vietnamese stock market.
FTSE Russell is a subsidiary of the London Stock Exchange Group that produces, maintains, licenses, and markets stock market indices. Morgan Stanley is a multinational US investment bank and financial services company.
The FTSE Russell delegation includes Du Wanming, Director of Index Policy for the Asia-Pacific, and Chris Williamson, head of Asia-Pacific, Index Investments Group. Morgan Stanley representatives are Stella Jaeger, co-head of Institutional Equity, Southeast Asia; and Young Lee, Managing Director for Asia, among others.
At the April 11 meeting, Phuong provided the guests with information about recent achievements of the Vietnamese stock market, as well as the policies that the Government and Ministry of Finance have been implementing to promote the development of this market and create the most favourable conditions for foreign investors to participate in the domestic financial market.
Representatives from FTSE Russell and Morgan Stanley shared that major customers have given positive feedback and praised the determination and efforts of the Vietnamese Government, as well as the state management agency in charge of securities and the stock market to achieve the goal of upgrading the stock market from the frontier to emerging status.
Phuong said that the SSC is ready to discuss with FTSE Russell and Morgan Stanley through both online and in-person to continue sharing more useful information for investors about the Vietnamese stock market./.
Webinar sheds lights on Vietnam-Latvia trade potential
Trade between Vietnam and Latvia reached 311.73 million USD in 2023, an increase of 33% from 2020, the year the EU-Vietnam Free Trade Agreement (EVFTA) came into effect, heard a recent webinar titled “Gateway to Vietnam.”
The event was co-organised by the Vietnamese Embassy and Trade Office in Sweden and Northern Europe and the Latvian Chamber of Commerce and Industry (LCCI).
In his remarks, Vietnamese Ambassador Tran Van Tuan expressed pleasure with the coordination between relevant Vietnamese and Latvian agencies in planning the virtual seminar as well as the participation of a Latvian business delegation in the upcoming Global Sourcing Fair 2024 in Vietnam from April 24-26.
The diplomat said he is confident that the activities will enhance mutual understanding and put forth concrete measures to strengthen bilateral cooperation, bringing greater benefits to both sides.
Currently, Latvia stands as Vietnam's largest economic partner in the Baltic region, while the latter is the former’s largest trading partner in the ASEAN region. Tremendous room remains for them to team up in various fields, particularly agro-forestry-fisheries, pharmaceuticals, education, science-technology, and labour.
However, despite the potential, Vietnamese goods are not widely present in Latvian distribution channels, and there are no major warehouses or supermarkets in the Northern European nation that import and distribute Vietnamese products. The main challenges include the considerable geographic distance and the lack of direct air or sea routes between the two countries.
Tuan suggested that as a first step, Vietnamese businesses could consider establishing warehouses and representative offices in Riga – the capital of Latvia – to better understand the Baltic market demands. They should increase participation in Latvia’s trade fairs and cultural-commercial events to promote Vietnamese products, he added.
He also called for the establishment of direct flight routes and maritime routes linking Vietnam's airports and ports to those in Latvia and the Baltic region./.
Meeting charts course for sustainable marine economy
Deputy Prime Minister Tran Hong Ha chaired the first meeting of the National Steering Committee on the implementation of the Strategy for Sustainable Development of Vietnam's Marine Economy till 2030, with a vision to 2045.
The virtual and in-person meeting connected with officials from 28 centrally-run coastal cities and provinces.
Speaking at the event, Deputy PM Ha highlighted a need to develop a set of indicators to evaluate what constitutes a strong and sustainable maritime nation where maritime economic sectors are competitive and there are shifts in awareness and policies related to investment, finance, environment and resource allocation.
The committee was asked to urgently complete the national marine spatial planning and a master plan on the sustainable exploitation and use of coastal resources. Additionally, developing metrics for evaluating programmes, projects and tasks outlined in the strategy is crucial.
Minister of Natural Resources and Environment Dang Quoc Khanh reported positive developments since the strategy's inception five years ago. The gross regional domestic product (GRDP) of coastal provinces reached 4,786 trillion VND (199.4 million USD) in 2022, or 49.8% of the country's GDP.
At present, there are 110 seaports nationwide with a total capacity of over 328.6 million tonnes. As many as 19 coastal economic zones are included in the approved master plan, attracting 553 foreign-invested projects worth 54.36 billion USD and 1,604 domestic projects valued at 1.37 quadrillion VND (57 billion USD).
Vice Chairman of the Quang Ninh provincial People's Committee Nguyen Xuan Cuong suggested a broader and more thorough assessment of the tasks related to the establishment of a marine economic framework.
Meanwhile, Vice Chairman of the Da Nang municipal People’s Committee Ho Ky Minh admited challenges in ensuring the quality of input data for the implementation of marine economic projects that match the local potential and advantages, such as in energy and logistics sectors./.
Vietnam Airlines to add over 100 flights for upcoming holidays
Vietnam Airlines announced on April 11 that it will add more than 100 domestic and international flights to its schedule, equivalent to over 15,000 flights, to serve the increasing travel demand during Liberation Day on April 30 and May Day on May 1.
According to the announcement, the national flag carrier will serve a total of 575,000 seats, or more than 2,900 flights, between April 26 and May 2, up 12% against the same period from last year.
The airline will focus on increasing the load on several key tourist routes from Hanoi and Ho Chi Minh City to destinations such as Da Nang, Hue, Quy Nhon, Nha Trang, Da Lat, Phu Quoc, and Con Dao.
Meanwhile, on its international routes, the carrier will also move to increase the amount of flights to Japan, the Republic of Korea, China, Thailand, Laos, and Cambodia.
The airline also took actions aimed at minimising flight delays and cancellations, as well as intensifying control to ensure aviation safety. It also conducted plans relating to aircraft maintenance to serve urgent travel needs during the upcoming holidays.
Hanoi to host 2024 int’l industrial machinery, equipment, technology expo
The 2024 International Exhibition on Industrial Machinery, Equipment, Technology and Products (VINAMAC EXPO 2024) is scheduled to take place from May 16 to 18 in the capital, with the event attracting the participation of over 300 businesses from 15 countries and territories around the world.
On display across 400 pavilions at the event will be industrial equipment and machinery, automated, welding, cutting and metal processing, and high-tech products.
The function is anticipated to provide fresh impetus to helping domestic businesses renovate technologies, improve product quality, enhance competitiveness, and get further involved in the global value chain, thereby contributing to the country's socio-economic stability amid the new trend of green growth and the circular economy.
With the participation of a large number of both domestic and foreign corporations, VINAMAC EXPO 2024 will also provide an ideal venue for them to share experience, introduce products, expand co-operation, and gain access to the world’s high technological achievements.
Last year witnessed the occasion attract more than 700 foreign and local businesses from 15 countries and territories such as India, Germany, Taiwan (China), the United States, the Republic of Korea, Japan, Russia, Malaysia, China, and the Czech Republic.
2024 a year for making breakthroughs: Forum
The year 2024 is considered a crucial period for accelerating and achieving breakthroughs in the implementation of Việt Nam's five-year socio-economic development plan for 2021-2025, according to experts.
They made the saying in a forum on "Unlocking the New Growth Drivers," held recently in Hà Nội. The purpose of the forum aimed to discuss and highlight the need for transforming the growth model to adapt to new development dynamics in Việt Nam.
The country's economy has been facing a mix of opportunities, advantages, difficulties, and challenges, with the latter being more prominent.
Some of the challenges include strong inflationary pressure, anticipated difficulties in production and business operations, and declining demand from traditional import and export markets. In light of these challenges, it becomes essential to transform the growth model by adopting new thinking, perception, and action, according experts.
Hoàng Quang Phòng, the Vice President of VCCI, emphasised the importance of transforming the growth model and highlighted the role of the Vietnamese business community and entrepreneurs in driving this transformation. However, one of the major difficulties faced in this process is the availability of investment resources.
A specific example of this is the need for approximately US$368 billion for green transformation in Việt Nam until 2040, according to estimates by the Asian Development Bank. However, the green finance market in the country is still relatively small, and there is a lack of mechanisms and policies to encourage private capital investment in green sectors.
Apart from the green transformation, other new growth drivers such as the digital economy, circular economy, knowledge economy, and sharing economy were also discussed during the forum. While the relevant ministries and agencies have proposed mechanisms and policies to create a legal framework for businesses operating in these areas, many of these legal documents and regulations are still in the process of being finalised.
The traditional growth drivers, including investment, exports, and consumption, were recognised as needing promotion. Simultaneously, the forum emphasised the importance of promoting new growth drivers such as science and technology, innovation, digital transformation, green transformation, and emerging industries like semiconductor chips and hydrogen.
SBV to increase gold bar supply to stabilise domestic market
The State Bank of Vietnam will increase the supply of gold bullion to handle the existing huge difference in domestic and world gold prices, Deputy Governor Phạm Thanh Hà told the press on Friday.
This is one of the bold solutions raised by the SBV after the Prime Minister Phạm Minh Chính asked for prompt efforts to be taken to stabilise the domestic gold market, ensuring its transparent, healthy and efficient operation.
For the gold jewellery segment, the SBV will strive to ensure raw materials for production and export.
In addition, the SBV will increase cooperation with relevant ministries and agencies to ask enterprises to issue e-invoices for every transaction which will help improve transparency of the domestic gold market as well as the management efficiency, Hà said.
The supervision will also be enhanced to prevent smuggling of gold, speculation and gold price manipulation.
Inspection on the gold business of enterprises and credit institutions will be carried out this month, he stressed.
The SBV has proposed amendments to the Decree 24 on gold business management towards ensuring on-track development of the domestic gold market and efficiency in management.
The domestic gold prices have increased strongly recently to set new records, widening the gap with the global prices.
SJC gold prices were listed at VNĐ82.8 million (US$3,310) for buying and VNĐ84.8 million for selling per tael at 3pm yesterday to set new records, an increase VNĐ900,000 per tael compared to Thursday trading session.
SJC gold buying prices have increased by 17.5 per cent and selling prices by 15.4 per cent from the beginning of this year.
At Bảo Tín Minh Châu, plain gold rings are listed at VNĐ75.78 for buying and VNĐ77.68 per for selling per tael, an increase by VNĐ1.3 million per tael over Thursday closing.
On Kitco.com, gold spot price increased 1.17 per cent to $2,399.20 per tael as of 3.05pm (local time). The bullion hit an all-time high for an eighth straight session on Tuesday
Bullion prices hit an all-time high for an eighth straight session on Tuesday after softer-than-expected US producer prices data boosted hope for US rate cuts this year. Year on year, gold is up around 16 per cent as central banks are stocking gold, seeing gold as a safe haven during time of economic and international turmoil.
At a recent meeting about gold market, the PM asked the State Bank to promptly implement solutions effectively manage the gold market, especially handling the existing huge gaps between SJC gold prices with the world prices.
The focus will be on ensuring supply of raw materials for the production and gold bullion and jewellery and increasing the export of gold jewellery.
The PM also asked inspections to be enhanced on gold business to prevent smuggling, speculation and price manipulation. Violations must be strictly handled.
Two major cities have different performance in residential property prices in Q1
In the condominium market, the average selling prices of projects in both primary and secondary markets in Hà Nội have increased rapidly in the first three months of 2024, approaching the price levels recorded in HCM City, according to CBRE Việt Nam.
CBRE's report on the property market in the first quarter of this year stated that condominium prices in HCM City witnessed hardly any significant changes. At the end of the first quarter of 2024, the primary price of condominiums in HCM City remained at VNĐ61 million per sq.m (excluding VAT and maintenance fees) but down by 3 per cent year on year. Developers continued to maintain attractive sales and payment policies to increase liquidity.
Meanwhile, the majority of new supply in Hà Nội continued to focus on the high-end segment, which has driven up the prices of condominium projects in the primary market. The average primary price of condominiums in Hà Nội reached VNĐ56 million per sq.m, up by 5 per cent quarter on quarter and 19 per cent year on year.
This quarter witnessed a significant reduction in the price gap between condominiums in HCM City and Hà Nội's primary markets. From a difference of 35 per cent observed at the end of 2022, the current primary price in Hà Nội is only lower by approximately 10 per cent than in HCM City.
In particular, the secondary price of condominiums in Hà Nội this quarter experienced the highest annual price increase ever recorded, rising by 17 per cent year on year and reaching an average of over VNĐ36 million per sq.m. Strong growth was observed across districts, particularly in western Hà Nội, where the existing supply is abundant and the population is dense.
Nguyễn Hoài An, Senior Director of CBRE Vietnam's Hà Nội branch, commented: "There is an increasing interest in condominium products in Hà Nội. With the ongoing limited supply in HCM City and the lack of substantial movements in Hà Nội's landed property market following the booming 2021-2022, several investors have shifted their investment focus towards condominium projects, particularly in Hà Nội."
In the landed property market, the average primary price in Hà Nội continued to rise and reached over VNĐ190 million per sq.m. Compared to the fourth quarter of 2023, the prices have increased by 4 per cent, mainly due to the limited new supply and the sold-out primary stock of a project located in an outlying area of Hà Nội.
On the other hand, the secondary price of Hà Nội's landed property began to increase, reaching nearly VNĐ160 million per sq.m and up by 1 per cent quarter on quarter. In HCM City, secondary prices slightly decreased in several landed property projects far from the city centre, while projects in the inner districts remained relatively stable.
One notable bright spot of the primary residential market in both key cities in the first quarter of 2024 was the bookings of upcoming projects.
"By the end of the first quarter of 2024, we have observed many projects initiating booking activities not only in the two major cities of Hà Nội and HCM City, but also in neighbouring provinces such as Hưng Yên, Hải Phòng, Quảng Ninh and Bình Dương," An said.
"This indicates a more booming market in terms of supply and absorption in the upcoming time. Abundant new supply with relatively good locations is likely to attract investors, resulting in a stabilising price level in the secondary market in the coming quarters following a period of rapid growth," she said.
Meanwhile, Đỗ Thu Hằng, senior director, advisory services, Savills Hà Nội said: "In general terms, the Hà Nội property market continues to improve however there is a heavy stock bias of Grade B apartments. Key infrastructure projects could well deliver more affordable mass market product."
Amended laws are expected to give the housing market room to grow. From 2025 onward, about 84,400 units from 101 projects will enter the Hà Nội property market, she said.
Products in satellite provinces will increasingly meet Hà Nội's housing demand. Hưng Yên and Bắc Ninh will provide about 203,000 units from 2024 to 2026 onward. Improving infrastructure, more affordable products and diverse facilities are key success factors, she added.
Laws related to real estate were passed, plus continuing infrastructure development, upcoming mega projects, and buyers' returning confidence all signal a promising year for the Hà Nội real estate market, according to Savills Hà Nội.
For the general real estate market in the first quarter of 2024, Dung Dương, Executive Director of CBRE Vietnam, commented, "Economic recovery along with the government's efforts to accelerate the implementation of the amended Land Law 2024 have contributed to strengthening the market sentiment of both developers and individual investors."
"2024 is considered a pivotal year for the real estate market to transition into a healthier and more sustainable stage of development."
"Market participants across all real estate sectors in 2024 expect to continue to benefit from residential sales policies and commercial rental policies with numerous attractive incentives, helping to reduce investment costs."
According to CBRE, New supply in the first three months of 2024 continued to be limited in both Hà Nội and HCM City residential markets.
Particularly, the new supply in Hà Nội in the first quarter of 2024 was mainly high-end condominium projects in the city's West, with over 2,300 condominium units and 30 landed property units, up 11 per cent year on year.
Meanwhile, in HCM City, only about 500 condominiums were launched in the first quarter of 2024, mostly from the subsequent phases of existing projects launched in 2023.
There was only one new project in the high-end segment, launching over 80 units in the south of the city. New supply in the first quarter of 2024 in HCM City dropped to its lowest level in about 15 years, down 17 per cent year on year.
The absorption rate in Hà Nội's condominium market witnessed some positive signals, although most of the new supply was launched towards the end of the first quarter.
In HCM City, along with limited new supply in this quarter, the number of sold units for condominiums also remained low, with around 600 condominium units sold in the first quarter of 2024, down 74 per cent quarter on quarter but higher than quarterly new launches.
The absorption rate of new launches in the first quarter reached approximately 80 per cent, thanks to stable selling prices from new selling phases of existing projects and a new project launched at reasonable selling prices.
Viettel and Singtel co-found new direct Việt Nam - Singapore submarine cable system
Viettel Business Solutions Corporation (Viettel Solutions), representing Viettel Group (Viettel), has signed a Memorandum of Understanding with Singapore Telecommunications Limited (Singtel) to collaborate on deploying the Việt Nam - Singapore Cable System submarine cable system (VTS) directly connecting Việt Nam and Singapore.
This marks a significant milestone for Viettel in its efforts to implement the “Development Strategy of Việt Nam's International Optical Cable System by 2030, vision to 2035” of the Ministry of Information and Communications (MIC). With the goal of becoming a regional data centre (Digital Hub), Việt Nam's international optical cables are identified as a critical component of the digital infrastructure that must be invested first in to ensure Việt Nam's international connectivity with super-large capacity, ultra-wide bandwidth, sustainability, greenness, intelligence, openness and security to promote the national's digital transformation, digital economy, digital society and international integration.
Under the agreement, both parties plan to deploy the submarine cable system having its trunk to connect Việt Nam to Singapore (VTS cable) with a configuration of 08 fibre pairs (08FP), using the most advanced wavelength division multiplexing technology available today. The main trunk landing station is in Vietnam (managed by Viettel) and Singapore (managed by Singtel). Additionally, the VTS cable is expected to have branch landing stations in Cambodia, Thailand, and Malaysia. The VTS cable is scheduled to be operational in the second quarter of 2027.
Thus, VTS will become the first cable jointly established by the two largest operators in Việt Nam and Singapore, promising to be the shortest cable directly connecting Việt Nam to the largest Digital Hub in Asia, Singapore, with the most advanced bandwidth and technology. The deployment of this cable system is in line with Việt Nam's strategy for developing its international optical cable system by 2030, with a vision to 2035. When put into operation, the cable will add hundreds of Tbps to Viettel's total international connectivity capacity, contributing to providing a large amount of high-speed capacity, opening up a new connection direction to the South, and enhancing the redundancy and security of Viettel's international connection infrastructure.
Nguyễn Mạnh Hổ, General Director of Viettel Solutions, said: “Through investing in the VTS submarine cable project, Viettel affirms its pioneering role in accompanying the Government in building and developing digital infrastructure in Việt Nam, promoting comprehensive digital transformation, meeting the demand for high-speed data transmission, efficiently utilising 4.0 technologies, and ensuring information security of national communication.”
Ooi Seng Keat, VP, Digital Infrastructure & Services of Singtel said: “Việt Nam is one of the world’s fastest growing digital economies in Southeast Asia with enterprises and consumers adopting new technologies such as artificial intelligence and data-intensive applications. The construction of the VTS cable will support this increasing demand for higher-bandwidth and lower-latency connectivity. We look forward to partnering with Viettel to support Việt Nam’s and the region’s digital and economic growth ambitions.”
According to this strategy, by 2030, Việt Nam needs to increase the total number of submarine cables to a minimum of 15 ones with a total capacity of at least 334 Tbps, of which there should be at least 02 submarine cable systems established by Việt Nam going into operation, with priority given to short routes directly connecting to major Digital Hubs in the Asia region. Furthermore, the submarine cable system should be deployed evenly in all three directions: connecting to the North of the East Sea; connecting to the South of the East Sea; connecting to the Southern sea area.
Recognising its role, Viettel has closely followed the strategic direction of submarine cables set by the MIC to develop and propose the implementation of submarine cable projects with a vision to 2030, aiming to meet the capacity needs, ensure safe connection for Viettel's network in all circumstances in particular, and ensure national information security in general. Among these projects, the Việt Nam - Singapore Cable System (VTS) is a key target for Viettel.
With investment in and ownership of new submarine cables, Viettel expects to play a significant role as a crucial link in the digital infrastructure and international and regional data transmission infrastructure, deploying international Internet connection applications requiring high-speed connection such as: 5G, Internet of Things (IoT), Automation, Artificial Intelligence (AI) and Virtual Reality (AR/VR). Additionally, Viettel will ensure the safety and redundancy of its network, ensuring the quality of internet services and other international connection services, as well as national information security.
Prior to this, Viettel announced the investment in Asia Direct Cable (ADC), the largest bandwidth cable system in Việt Nam, with connections to all three largest IP Hubs in Asia (Hong Kong, Japan, Singapore), and Viettel owns the landing station of this cable in Quy Nhơn. Viettel is also the largest investor in The Asia Link Cable (ALC), connecting to the two main IP Hubs in Asia (Hong Kong, Singapore), and owns the landing station of this cable in Đà Nẵng.
Conference drives Northern Midlands and Mountains' trade expansion efforts
The Ministry of Industry and Trade (MoIT) in collaboration with the People's Committee of Lào Cai Province convened a conference on Friday, aimed at bolstering trade activities and import-export operations across the Northern Midlands and Mountainous region.
Drawing about 300 delegates, comprising leaders from relevant localities, representatives from Vietnamese Trade Offices abroad, industry associations and businesses, the gathering delved into pivotal economic concerns within the region.
The conference stemmed from Prime Minister Phạm Minh Chính's directive, outlined in Decision 975/QD-TTg dated August 19, 2023 on establishment of a Coordinating Council for the Northern Midlands and Mountainous Region from 2021 to 2025. This council aims to enhance trade promotion, facilitate production partnerships, address supply-demand gaps and promote regional industries and products. It also seeks to empower businesses to leverage Việt Nam's free trade agreements for product development, market expansion and robust import-export activities.
Addressing the conference, Deputy Minister of Industry and Trade Phan Thị Thắng underscored the significant contribution of the Northern Midlands and Mountainous region to the nation's import-export landscape.
Notably, between 2022 and 2023, amid the post-COVID-19 recovery phase, the region's total import-export turnover exceeded US$119.5 billion and $115.5 billion, respectively, constituting nearly 16 per cent of the nation's total import-export turnover. Export alone amounted to approximately $67.4 billion in 2022 and surpassed $64.8 billion in 2023, equivalent to 18 per cent of the country's total export turnover.
The region boasts a diversified export structure, encompassing key commodities such as computers, electronic components, mobile devices and select agricultural products. The agricultural, forestry and fishery sectors have emerged as regional strengths, transitioning toward commercial production, enhanced efficiency and quality improvement.
However, the region is facing significant challenges, including modest economic scale compared to other regions, and disparities in economic growth among localities, with leading localities such as Thái Nguyên, Bắc Giang, Phú Thọ and Lào Cai outpacing others. The predominance of low-productivity labour in the agricultural sector and the region's sparse business landscape hinder economic dynamism, impeding trade promotion efforts and import-export development.
Addressing these issues head-on, conference attendees focused on key economic imperatives for the region. Discussions centred on establishing export production chains, formulating import-export strategies for forthcoming years, identifying foreign market opportunities and modernising logistics to facilitate export and cross-border trade.
To unlock the region's export potential, Director of MoIT’s Planning and Finance Department Bùi Huy Sơn stressed the importance of innovation, quality training and human resource development. He emphasised the need to refine investment attraction policies to leverage the region's strengths effectively. Furthermore, promoting industrial clusters is essential for local industrial development.
Vice chairman of Lào Cai People’s Committee Hoàng Quốc Khánh said the province aims to spearhead investments in transport infrastructure, particularly railway connectivity, to enhance national and inter-regional linkage, including border gate connectivity.
Plans are underway to transform the Lào Cai Border Gate Economic Zone into a cutting-edge logistics hub, facilitating seamless trade connections and serving as a pivotal transit point for import-export activities, Khánh said.
Meanwhile, Sơn La Province and other regional counterparts aim to bridge income and trade development disparities by fostering regional connectivity, facilitating industrial infrastructure development and leveraging governmental incentives to attract investment projects and spur value-added industries.
In a bid to elevate the Northern Midlands and Mountains' trade standing, Director of the Trade Promotion Agency Vũ Bá Phú outlined plans for enhanced trade promotion programmes in 2024. These initiatives include international trade missions to strategic markets such as Bulgaria, Kazakhstan, France, South Africa and the United States, alongside participation in prominent domestic and international trade fairs and exhibitions.
Local trade promotion centres will also play a pivotal role in information dissemination and exhibitions, harnessing regional resources and strengthening export endeavours, particularly with neighbouring markets like Laos and China, according to Phú.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
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