Die Presse - a German-language daily broadsheet newspaper based in Vienna, Austria, on April 14 ran an article highlighting favourable conditions that make Vietnam more attractive to foreign investors.

The newspaper also emphasised that the official visit to Vietnam by Austrian Federal Minister for European and International Affairs Alexander Schallenberg from April 16-18 will help promote Austria's cooperation with Vietnam and the region.

According to the article, thanks to solid growth, trade agreements, and favourable investment conditions, Vietnam is increasingly attractive to foreign businesses who are looking to diversify their supply chains.

As a regional growth engine, since the beginning of this millennium, Vietnam has consistently achieved an average Gross Domestic Product (GDP) of 6.2%, one of the highest growth rates in Asia. Vietnam has also overcome the COVID-19 pandemic without a recession, even last year, it recorded growth of over 8% - the highest growth rate in more than ten years.

The article cited a report from the Pacific Basin Economic Council (PBEC), which said that Vietnam's market has recently become increasingly attractive to foreign investors as companies move their production to the country. 

According to the article, export control measures and economic sanctions in the trade war, difficulties related to the supply chain as well as unpredictable consequences of the COVID-19 pandemic have forced businesses to consider diversifying the supply chain. Besides, lower production costs in Vietnam are also attractive to investors.

In particular, many foreign enterprises, including Austrian firms, have to find new markets after withdrawing from Russia due to the conflict in Ukraine. In that context, Vietnam emerged as an attractive destination for investors. 

According to Dietmar Schwank, Commercial Counsellor of the Trade Office of the Austrian Embassy in Vietnam, companies that are doing business in China will still keep their locations there, but they, with a geopolitical mindset, tend to seek new investment destinations rather than concentrating on just one country.

The article mentioned that over the past decade, Vietnam has transformed itself from an agricultural product/footwear/garment exporter to an electronic component/computer equipment manufacturer. This is partly related to Samsung Electronics as half of this Korean company's mobile phones are manufactured in Vietnam and account for one-fifth of Vietnam's exports.

Vietnam's participation to free trade agreements (FTAs), including the EU-Vietnam Free Trade Agreement (EVFTA), makes the country different from other ASEAN nations.

According to Schwank, this is special because so far, the EU has not signed an FTA with any other emerging countries. 

It is the trade agreements that provide security for companies looking to find other reference markets, he said.

The article assessed that the visit to Vietnam by Austrian Federal Minister for European and International Affairs Alexander Schallenberg and a business delegation led by Vice President of the Austrian Federal Economic Chamber (WKÖ) Philipp Gady will contribute to boosting Austria's export-driven economy. 

According to Schallenberg, the Austrian Federal Ministry of European and International Affairs will take the lead and support Austria's exports to Vietnam, which will contribute to consolidating and diversifying Austria's relations with the region. 

Meanwhile, WKÖ sees many opportunities for Austrian businesses in Vietnam, especially with industrial products. According to Gady, Austria can support the development of Vietnam's supply chain, such as machines for plastic processing, recycling or wood processing.

Supporting businesses to build a digital transformation roadmap

The Ministry of Planning and Investment with United States Agency for International Development (USAID) has been deploying activities to support businesses in building a digital transformation roadmap.
 
Currently, the application of digital technology in some businesses, especially small- and medium-sized enterprises (SMEs), is fragmented due to the lack of clear goals, plans, and strategies for digital transformation. Therefore, digital transformation did not result in the expected success.

Digital transformation is an inevitable trend and an important solution for businesses to improve production and performance, expand markets, cut costs, and adapt to the new context of the digital economy.

MPI's Agency for Enterprise Development in collaboration with USAID has recently approved a project "promoting reform and enhancing the connectivity of SMEs" to build tools and guiding documents, as well as implement awareness-raising and training in digital transformation for businesses.

The support package has received registrations from more than 200 businesses in mechanical engineering, electronics, agriculture and agro-processing, wood processing, and furniture. The scheme has selected 50 businesses with high readiness to implement digital transformation based on several criteria.

Since then, experienced experts in the scheme's network visited each enterprise to study, evaluate, and provide in-depth advice on digital transformation. They have worked with each other for three consecutive months to help businesses gradually gain a methodical direction and roadmap to invest in digital transformation.

Such digital transformation pioneers will become successful examples, inspiring other businesses to be more confident to do and see good lessons learned in digital transformation. This is also one of the main goals of the programme to support businesses in digital transformation for the period 2021-2025.

According to the 2022 Annual Report on Enterprise Digital Transformation of the Agency for Enterprise Development, the number of companies undergoing doing digital transformation activities had rapidly increased.

Vietnam, France boast huge cooperation opportunities: business forum

More than 500 managers, scientists and businesspeople from Vietnam and France gathered at a business forum in Hanoi on April 15 as part of the 12th Vietnam-France decentralised cooperation conference.

The forum offered an opportunity to connect authorities of cities, investors and enterprises of the two countries, said Vice Chairman of the Hanoi People’s Committee Nguyen Manh Quyen.

The sides also exchanged views, initiatives and solutions to raise mutual understanding and promote cooperation, while expanding exchange and collaboration between Vietnamese and French partners, he continued.

Quyen briefed the participants on Hanoi’s situation, with its GRDP growing 5.8% in the first quarter of this year, 1.7 times higher than the national average, and its budget collection reaching 128 trillion VND (5.48 billion USD), equivalent to 40% of the estimate.

For cooperation with France, he said since 1989 the capital city has attracted about 494.4 million USD in foreign direct investment from the country, including 7.8 million USD in 2022 and 0.92 million USD in the first three months of this year.  

In his remarks, French Ambassador Nicolas Warnery noted that the year 2013 marks the 50th anniversary of the bilateral diplomatic ties and 10 years of the establishment of the strategic partnership between the two countries.

Over the past three days, the conference looked into solutions and projects on smart cities, sustainable urban and rural development, heritage and tourism, the diplomat said.

The French embassy will work to promote mutual understanding and deepen the bilateral relations across spheres, he pledged.

Vietnamese Deputy Minister of Planning and Investment Nguyen Thi Ngoc Bich noted that the two countries boast huge cooperation opportunities in the time ahead, explaining that Vietnam is an active, responsible member of ASEAN while France is a key member of the European Union. Both are members of the Francophone community as well as the EU-Vietnam Free Trade Agreement.

Vietnamese enterprises must prepare in advance for CBAM: experts

The European Union (EU)’s Carbon Border Adjustment Mechanism (CBAM), which is set to take effect in 2024, will impact production and trade activities of Vietnamese manufacturers, especially in high carbon emission industries like iron and steel, aluminium and cement, as well as the whole economy, said experts.

The European Union (EU)’s Carbon Border Adjustment Mechanism (CBAM), which is set to take effect in 2024, will impact production and trade activities of Vietnamese manufacturers, especially in high carbon emission industries like iron and steel, aluminium and cement, as well as the whole economy, said experts.

The mechanism, just updated by the EU and the European Parliament (PE) this February, is created to make a fair playing field for European businesses facing carbon prices by imposing a carbon border tax on imports from countries that do not apply equivalent carbon pricing measures.

CBAM will directly affect Vietnamese products and exporters to the EU, said Sirpa Jarvenpaa, Director of Southeast Asia Energy Transition Partnership (ETP), adding that exporters will have to ensure that products exported to the EU meet a corresponding tax rate as EU manufacturers are imposed.

CBAM will initially apply to imported goods such as steel, cement, fertiliser, aluminium, electricity and hydrogen. They are sectors with a high risk of carbon leakage and high carbon emissions, accounting for 94% of the EU's industrial emissions.

All 27 EU member countries are expected to begin piloting CBAM in October.

Reducing greenhouse gas emissions is now a trend and a requirement that businesses must follow if Vietnam wants to compete in the international playground.

In research published at the consultation workshop, Vietnam’s steel industry suffers the most from CBAM, followed by the aluminium sector.

According to the research, steel production is estimated to drop 0.8% in 2030 under the effect of CBAM, while export value decreased by 2.3%. In the aluminium industry, the output is estimated to fall by 0.4%, and the export value will be down 4.3% in 2030.

Many surveyed businesses currently do not see CBAM as a threat, but the impact will be significant if the mechanism is expanded.

Even though many countries like the US and Japan showed mixed reactions toward CBAM, they are considering their regulations and raising the need to accelerate global decarbonisation.

Therefore, early preparation for CBAM is necessary, said Do Nam Thang, a political expert from Applied Economic Modelling and Data Analysis.

Vietnam most promoted in EIU's business climate rankings

The Economist Intelligence Unit (EIU), a research and analysis division of the Economist Group of the UK, has recently announced the ranking of the global business environment for the second quarter of the year, which recognises that Vietnam has the highest ranking among the targeted economies.

The EIU offers many categories on order to evaluate economic management activities over both the previous five years and the next five-year prospects of countries and regions, thereby assessing the quality or attractiveness of the business environment in 82 countries and economies globally.

The nations that improved the most in the EIU's ranking over the past year included Vietnam, Thailand, Belgium, Sweden, India, and Costa Rica.

Of these, Vietnam is considered to have the greatest motivation, increasing 12 places in the ranking, while Thailand rose by 10 places and India grew by six places.

In the 2023 EIU rankings, Singapore retained its position as the world's best place to do business for the 15th consecutive year and will continue to be the best place to conduct business over the next five years. Canada and Denmark shared the  second place.

Meanwhile, the countries that were most significantly downgraded include China, Bahrain, Chile, and Slovakia. China is the country with the deepest drop globally, falling 11 places from a year earlier.

HCM City business group suggests economic pump-priming measures

The Ho Chi Minh City Union of Business Associations has proposed authorities to resolve difficulties faced by businesses suffering from a sharp drop in export orders.

The city’s export in the first quarter of the year is estimated at 10.1 billion USD, a year-on-year decline of 16.8%.

According to HUBA, most industries struggled to maintain production and do business.

Nguyen Phuoc Hung, its permanent vice chairman, said the biggest difficulties faced by export firms, especially in the woodwork and garment and textile industries, are a lack of export orders and cash flows and inability to borrow from banks.

Businesses are also virtually unable to borrow from the Government’s lending package that offers interest rate subsidies of 1.5-2%, he said.

Agricultural land is appraised at very low by banks, so when firms apply for loans using agricultural land as collateral, they will get a very small loan that is not enough to serve their production and business needs.

In addition, the mortgaged asset value for their existing loans was reduced significantly, requiring them to have additional collateral but they almost have no more asset to do that.

HUBA's surveys have found 41.2% of firms saying they are facing difficulties due to the shrinking market, 17.6% due to higher raw material prices, 11.2% due to human resource shortage and 17.6% due to lack of capital.

Enterprises said though the Government has many supportive policies for economic development, beneficiaries are few in reality, with less than 10% of businesses benefiting from financial support.

Small and medium-sized enterprises often lack assets to mortgage, HUBA said.

It wanted the Government to address this issue by valuing agricultural lands at market prices, increasing the ratio of loan to mortgaged assets, and offering unsecured loans.

It said the State Bank of Vietnam should continue to roll over medium- and long-term loans, and bring down bank lending interest rates.

It called on the Vietnam Bank for Social Policies to provide businesses with low-interest rate loans so that they could pay wages to employees, which would boost purchasing power and benefit the consumer market.

It said the city should promote the 2% interest subsidy programme from the SBV, and direct relevant agencies to organise programmes to link businesses and banks to easy the credit bottlenecks.

The city needs to enhance ties with Vietnamese trade agencies abroad to help foster investment and trade with foreign markets, it added.

EU-funded project promotes sustainable clam, bamboo value chain in Vietnam

The sustainable clam and bamboo value chain development in Vietnam (SCBV) project, funded by the European Union (EU) and implemented by Oxfam Vietnam in collaboration with Vietnamese partners, has benefited a large number of rural residents and stabilised these production areas in Vietnam, heard a conference in Vinh city of Nghe An on March 23 to review the project.

The project covers five provinces of Tra Vinh, Ben Tre, Tien Giang, Thanh Hoa and Nghe An, aiming to contribute to promoting economic development and business efficiency of small-scale firms and processors towards sustainable standards, while strengthening market access and creating favourable policies for inclusive and sustainable development of the clam and bamboo value chain in Vietnam.

It also focused on reducing poverty nd inequality in rural areas of Vietnam, assisting clam and bamboo producers and processors in applying sustainable practices, and promoting public-private partnerships in fair and responsible chain governance.

A report from the project showed that in 2018, there are about 1.5 million small-scale producers and processors engaged in clam and bamboo industries. However, they face many challenges, mostly due to the impoverished situation of material areas as a result of degradation, overexploitation and lack of understanding of sustainable maintenance.

In this situation, the project coordinated with the localities to improve farming techniques in order to achieve international certificates such as MSC (Marine Stewardship Council) and ASC (Aquaculture Stewardship Council) for clam, and FSC (Forest Stewardship Council) for bamboo, enabling their products to enter large markets such as the US, the EU and Japan.

In 2019, Quan Hoa district in the north-central province of Thanh Hoa became the first locality in Vietnam to achieve the FSC certificate for bamboo production, followed by Que Phong district in neighbouring Nghe An province and Quan Son district in Thanh Hoa.

In early 2023, the Mekong Delta province of Tra Vinh became the third clam production area to achieve ASC certificate. These are considered big steps for Vietnamese clam and bamboo industries.

Phan Van Thang, Director of the Research Centre for Non-Timber Forest Product, said at the event that after receiving the FSC certificate, the bamboo forests are grown and maintained better, generating higher productivity and more stable quality products, resulting in higher socio-economic and environmental values.

Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), said that thanks to the project, more than 34,000 people have enjoyed sustainable income from clam and bamboo, while 125 production groups were better organised, 63 businesses have seen their business situation advance, and more than 4,000 new jobs have been created.

At the same time, the project has helped increase Vietnam's clam exports to Europe by 38-40%, and bamboo exports by 42%, he said.

Vietnam exports 1.7 million tonnes of rice in Q1

Vietnam exported 1.7 million tonnes of rice in the first quarter of 2023 worth over 900 million USD, a 19% increase in quantity and 30% rise in value compared to the same period in 2022.

These latest figures were released in a latest report by the General Department of Customs.

According to the Ministry of Industry and Trade (MoIT), Vietnamese rice has seen some success in improvements in quality and demand over the last several years. 

The majority of exported rice came from the Mekong Delta, with the rest of the country's rice production centres mainly serving the domestic market. 

Le Thanh Tung, deputy head of the plant cultivation department under the Ministry of Agriculture and Rural Development (MARD), said rice production this year for the Mekong Delta alone is projected to reach 24 million tonnes. Consumption for the Delta and Ho Chi Minh City, Vietnam's most populous city, will stay around 11 million tonnes, leaving 13 million tonnes for export.

Of which, premium-quality rice for export accounts for 3 million tonnes, specialty rice 2.1 million tonnes and regular rice 1 million tonnes.

Vietnamese rice will likely continue to be sought after in the second quarter of the year as demand has been on the rise in major markets including the Philippines, China and Africa, said the Vietnam Food Association (VFA).

Nguyen Ngọc Nam, President of the VFA, said Vietnamese rice has been fetching good prices on the international market despite a gloomy outlook for the global economy as countries look to stock up on food for uncertain times ahead. 

In addition, major free trade agreements including the European Union - Vietnam Free Trade Agreement (EVFTA) have seen tariffs on Vietnamese rice reduced by as much as 175 EUR per tonne, giving Vietnamese premium rice an advantage in the European markets. 

As demand soars, exporters have been trying to purchase additional amounts from farmers to maximise efficiency and profit. However, many have voiced concerns over a lack of capital.Phan Van

Chinh, Director of MoIT's Agency for Foreign Trade, said the ministry has been working closely with exporters to find solutions to minimising logistic costs and dealing with import/export protocols in international markets. 

On the other hand, the ministry said it is to keep a close watch on the amount of rice being exported to ensure the country's food security. 
In an earlier development, the State Bank of Vietnam (SBV) has ordered commercial banks to review and streamline the borrowing process for rice traders to help them access additional capital sources.

Vietnam, France discuss smart city development

A seminar on building smart and digitalised cities was held in Hanoi on April 14, as part of the 12th Vietnam France decentralized cooperation conference.

The event was co-chaired by Permanent Vice Chairman of the Da Nang municipal People’s Committee Ho Ky Minh and President of the Nevers Agglomeration Denis Thuriot.

Speaking at the event, Minh shared the approach to smart city development in Da Nang under the pillars of infrastructure - data – intelligence, with people and organisations being placed at the centre to assess its effectiveness.

Thuriot, for his part, said the smart city model in Nevers Agglomeration encompasses various themes, including education, culture, safety, as well as green technology to become an even better model of waste management.

Deputy Minister of Information and Communications Nguyen Huy Dung said his ministry always encourages cooperation and sharing of knowledge about digital transformation and transfer of modern and eco-friendly technology to Vietnam.

The ministry pledges to continue partnering with localities in national digital transformation process, he said, adding that French companies are strong in various fields such as telecommunications, renewable energy, environment, health care, manufacturing, food, infrastructure and logistics services, which presents an opportunity for cooperation between the two countries' localities.

Data key to developing smart city in HCM City

Building digital data has been identified as a core element in Ho Chi Minh City’s digital transformation and smart-city development, and the city has begun a data building strategy, according to its Department of Information and Communications.

Speaking at a seminar titled “Vietnamese Smart City Strategy: Achievement and Challenges in HCM City” on April 12, Vo Thi Trung Trinh, the department’s deputy director, said the city aims to become smart with e-government, e-enterprises and an electronic society by 2030.

She said it would focus on developing three main data groups by 2025: citizens (administrative, civil status, health, education, and welfare), finance-business (summary and statistics of budget revenue and expenditure, public investment management, enterprises, and household businesses), and land-urban areas (geographical information, construction, transport, and planning and architecture).

All would be stored and managed at the city’s data centre, she said.

Going forward, data would be the city’s core asset, and it would have regulations for sharing and use of data by administrative departments to better serve the people, she said.

The city would encourage the effective use of shared data to promote innovation and start-ups, she added.

Nguyen Phu Tien, deputy director of the National Digital Transformation Department, said provinces are also making their cities smart, but their focus is still mainly on services and utilities associated with e-governance and digital government, and they do not pay much attention to smart city management to address fundamental urban issues like transportation, environment, healthcare, and education.

Many localities are facing difficulties with their smart city projects and need new direction from the Government, he said.

Vietnam wants to learn from other countries that have successfully developed smart cities, he added.

The seminar was held as part of the Smart City Asia International Expo and Forum 2023 being held in HCM City from April 13 from 15.

Enterprises given support in digital transformation

Dozens of enterprises have been supported to raise their awareness and be trained to implement digital transformation which has become an inevitable trend and an important solution for current businesses.

Digital transformation is believed to help enterprises improve their production and business efficiency, expand markets, cut costs, and adapt to the new context of the digital economy.

The Enterprise Development Agency under the Ministry of Planning and Investment (MPI), in collaboration with the United States Agency for International Development (USAID), has carried out a project entitled 'Promoting the reformation and enhancing the connectivity of small and medium enterprises'.

It focuses on creating tools and guidelines, implementing activities to raise awareness of digital transformation and training digital transformation for enterprises in a methodical way during the period of 2021-2025.

More than 200 applications from enterprises in different fields, such as mechanical engineering, electronics, agriculture and agricultural product processing, wood processing and furniture products, were submitted to the project in September 2022.

Among them, the most suitable 50 that met the project's requirements have been selected.

Experts came to survey, evaluate, and provide in-depth advice on digital transformation at each enterprise.

In three months, the experts have, step by step, helped enterprises build up their direction and roadmap to invest in digital transformation in the next few years and also supported them during their digital transformation processes.

In a recent review by the MPI, the digital transformation roadmap package for enterprises was appreciated for its successful implementation, helping businesses determine the right direction, saving time, costs, and resources, and improving their competitiveness.

These digital transformation pioneers are expected to inspire other enterprises to be more confident and motivated, and to make use of good lessons learned to carry out their own digital transformation.

According to a representative from Tien Thinh Trading Service-Production Co., Ltd, the project has not only helped to standardise production processes and corporate governance but also comprehensively changed the company's culture, opening up new ways to solve problems in organisation, production, and sales.

The manager of Lien Vinh Production and Trade Joint Stock Company said that the support of the state would help solve the problems they were facing, such as the decrease in orders, while the standards of major partners abroad are increasing.

In January 2021, the MPI issued and implemented the 'Promoting the reformation and enhancing the connectivity of small and medium enterprises' project for the 2021-2025 term.

In the early period, the project achieved positive results such as over two million visits to its website's instructional materials, training videos, and experience sharing about digital transformation. About 1,500 enterprises self-assessed to be ready for digital transformation, and over 10,000 enterprises in 40 localities were trained directly about digital transformation.

According to the Enterprise Development Agency's 2022 report, in the 1,000 surveyed enterprises, the number of enterprises doing digital transformation increased, and many maintained budgets for this activity.

In 2021, enterprises were only at the first steps of learning, researching, and consulting information to prepare for the implementation of digital transformation.

Counsellor suggests ways to boost halal product exports to Singapore

The dynamism and experience of a producing country will be advantages for Vietnamese businesses when joining the global halal market, to which Singapore is the nearest gateway, said Vietnamese Trade Counsellor to the city state Cao Xuan Thang.

Talking to the Vietnam News Agency (VNA) on April 14, Thang cited experts as predicting that Singapore’s halal food market will sustain growth of 7 - 10% in the coming years.

The Muslim community, which accounts for 13.3% of Singapore's population, has high income and purchasing power. The country, which also attracts a large number of Muslim tourists, owns a widespread distribution system for halal products, he noted.

Pointing out certain challenges for Vietnamese firms, he said halal standards vary among countries, so halal food producers will face difficulties in maintaining different production methods for different markets. Besides, the high costs and long time for verifying each halal product may also be non-tariff barriers to Vietnamese businesses.

Suggesting ways to boost halal product exports to Singapore, the counsellor said businesses of Vietnam should quickly and proactively change their production methods and management to meet common hahal standards as well as specific rules in different countries.

He also described halal product and brand marketing as difficult, noting that it is even harder to maintain their presence in Singapore after entering this market. Therefore, businesses need to ensure product quality consistency and satisfaction of standards.

In the time ahead, the Trade Office of Vietnam will continue assisting Vietnamese enterprises to advertise their products and brands, seek partners in Singapore, and meet the country’s authorities in charge of halal standards to update information about the field, Thang added.

National railway investment requiring foreign push

Foreign investors are being urged to explore funding railway lines linking seaports as part of the country’s railway development plan – despite high costs, few successful projects, and a lengthy period to see returns.

East Japan Railway Company (JR East), Japan’s largest rail operator, has expressed interest to the Ministry of Transport (MoT) about upgrading and renovating the Hanoi-Haiphong railway line, as well as building the route to Haiphong Port.

Since the railway network master plan for the decade was approved in 2021, Japanese investors have been paying attention.

Under the plan, the Hanoi-Haiphong route will be upgraded. The long railway to Haiphong port connecting with Lach Huyen port and Dinh Vu port, worth about $1.5 billion, has also been included in the list of projects seeking foreign investment.

In June 2022, a JR East delegation took part in the first working session with the MoT and Vietnam Railway Corporation, and made a field trip to the Hanoi-Haiphong railway.

The Hanoi-Haiphong railway will be 102km long and will be developed as a double-track railway. The Haiphong side connects the railway to Dinh Vu, Nam Do Son, and Lach Huyen ports. The Lao Cai side links the railway with Chinese railways to exploit intermodal and transit transport.

The upgrade for the existing railway will be conducted after 2025. The single-track railway gauge of 1,000mm remains unchanged with both passenger and freight trains. Meanwhile, the new 1,435mm railway line will specialise in freight trains only.

In addition, the MoT is also evaluating the feasibility of restoring Thap Cham-Dalat railway under the public-private partnership (PPP) model by Bach Dang Hotel Complex Trading-Service. The railway passes through Phan Rang-Thap Cham city of the south-central province of Ninh Thuan and the Central Highlands city of Dalat, with a length of 83.5km and passing 16 stations.

However, it will not be easy to lure private and international investment in transport. After nearly a decade of development with private engagement in railway infrastructure, only Yen Vien station, developed under a railway infrastructure lease, has been truly successful. Other projects have been suspended despite reported investor interest.

JR East is not the first foreign investor interested in railway infrastructure. In 2018, South Korea’s Lotte E&C sought approval to invest in upgrading Yen Vien-Lao Cai railway, and building a railway connecting Lao Cai and Ha Khau through PPP. Lotte E&C proposed the development of the project under a build-lease-transfer contract, across two components. However, the project has seen no signs of development despite support from the MoT.

According to Duong Hong Anh, deputy director of the Vietnam Railway Administration, the biggest barrier to rail funding is that projects require huge capital but generate low profits. This, coupled with a lack of guidance on incentives, makes it hard to lure investors.

To implement the railway network master plan for 2021-2030, the MoT has proposed increasing public investment capital in the medium term. Priority is to be given to investment in several large railroad projects to reduce logistics costs in the next few years. The MoT is also currently completing a pre-feasibility study for building a North-South high-speed railway.

Mekong delta embarks on foundation building for organic agriculture

The Mekong Delta, Vietnam's vital agricultural and aquaculture hub, is witnessing the coming-into-being of various organic farming models, laying a basis for future development of the sector.

In Tam Nong, a large rice production area of the region, an organic farming model that combines rice cultivation with fish and duck rearing has proved suitable to the local conditions. The fish is raised in organic paddy fields, and the ducks released to feed on vermin around the area.   

Minister of Agriculture and Rural Development Le Minh Hoan said the model follows the natural cycle, reduces emissions, and increases incomes in a limited area of arable land.

Hoan noted that such a feasible method should be further studied for larger application in areas with similar conditions.

Meanwhile, the farming sector in Can Tho city has been collaborating with businesses to launch organic production models for rice and fruit, with high-tech models and the VietGap (Vietnamese Good Agricultural Practices) standard widely applied. After thorough assessment, the city has planned to have 4,000ha of paddies, 1,3000ha of fruit trees, and 150ha of vegetables following organic farming.

According to the minister, perceptions of the agricultural economy have improved significantly. Enterprises, cooperatives, and farmers are aware of the need to reach higher-level export markets for better value and profit.

Such improvement has helped form material areas of a strong connection between businesses and farmers, Hoan said.   

Statistics showed that the total agricultural land for organic farming in the country reached some 174,000ha in 2022, an increase of 47% over 2016, putting Vietnam in the list of the top 10 countries with the largest organic agricultural land in Asia. The nation has set a target of increasing its total organic land area to 2.5-3% of the agricultural land area by 2030.

Organic farm produce has brought home 335 million USD in annual export value and is present in over 180 countries and territories. Europe is the main importer of those products from Vietnam.

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