Samples of corporate bonds. — VNA/VNS Photo

The HCM City Real Estate Association (HoREA) has proposed commercial banks lend to real estate firms so they can fund maturing bond obligations amid ongoing market turbulence.

Le Hoang Chau, chairman of HoREA, said the move is expected to help bolster investor confidence in the market as many real estate firms have failed to make bond principal and interest payments on time.

"A credit package worth up to 70 per cent of the value of the issued bond batch should be disbursed directly to bondholders," he said.

For the other 30 per cent of the bond batch value, the association has proposed issuers negotiate with bondholders on a bond payment extension under a recently issued Government decree, he added.

“Decree 08, aimed at removing difficulties for the corporate bond market, is not effective enough to regain investor confidence in the market,” according to Chau.

The decree, which allows issuers to extend bond terms by up to two years, only helps prevent the market from collapsing but it does not actually protect the rights and benefits of bondholders, experts said.

The controversial proposal comes at a time when the State Bank of Viet Nam (SBV) has tightened credit into risky sectors, such as real estate, to ensure capital flows into priority fields, such as manufacturing.

The SBV has recently inspected commercial banks to ensure they are in line with the Government’s requirements related to monetary policies and the restructuring of bad debts.

According to data from the SBV, credit to the real estate sector was worth VND2.58 quadrillion (US$109 billion) as of the end of 2022, up 24.3 per cent year-on-year and accounting for 21.2 per cent of the entire economy’s total outstanding credit.

The corporate bond market boomed in 2020 and 2021, with an issuance volume of VND462 trillion and VND658 trillion, respectively, according to the Viet Nam Bond Market Association.

However, following arrests and investigations related to the bond issuance and improper use of capital by several major real estate developers last year, the market has suddenly become frozen.

Aggressive bond issuance for the past few years has caused huge pressure on issuers, mostly property developers, as they are now facing serious liquidity crises and cannot issue new bonds to restructure debts.

VNDirect Securities Corporation estimates the maturity value of corporate bonds this year at nearly VND273 trillion, mainly in this quarter and the third quarter.

Many issuers have constantly violated their obligations to pay principal and interest while a number of individual bond investors are looking to sell bonds at a 14-17 per cent discount to get cash back.

Despite the stagnant corporate bond market, it has potential to grow due to high capital demand from businesses, experts have said.

They have, however, pointed out that investor confidence will not return unless the Government addresses all the problems they face and safeguard their rights.

In a related issue, the city government has ordered the Department of Construction to continue working with relevant agencies to remove challenges facing 156 real estate projects in the city, mostly legal bottlenecks, a demand also made by HoREA.

Bui Xuan Cuong, deputy chairman of the People’s Committee, has instructed the department and relevant agencies to work with HoREA and real estate developers on this issue and report back to the city by April 15. 

Officials highlight measures to fulfil growth target for 2023

Representatives of ministries and sectors highlighted measures to achieve the GDP growth target for 2023 at the Government’s regular press briefing on April 3.

Deputy Minister of Planning and Investment Tran Quoc Phuong said that amid difficulties in the global situation, in order to achieve a 6.5% GDP expansion this year, it is necessary to maintain macro-economic stability and rein in inflation, while paying great attention to monetary and fiscal policies.

The official underlined the need to review the growth drivers of the economy, using advantages to offset difficulties.

The country should take its strength in agriculture as the foundation for its development, while developing services to support production, he said, stressing the need to speed up public investment disbursement and promote the development of the domestic market.

Meanwhile, Deputy Minister of Industry and Trade Do Thang Hai clarified the price frame for renewable energy, affirming that it has been carefully calculated basing on data gathered from feasibility study reports and technical designs of 102 solar power plants and 109 wind power plants.

After introducing the frame, the Ministry of Industry and Trade has asked Vietnam Electricity (EVN) to urgently coordinate with investors to negotiate and reach agreements on electricity prices to soon put the plants into operation, avoiding wasting resources, he said.

Cashew industry sees unusual trade pattern in early 2023

The cashew industry saw an unusual trade pattern in the first two months of 2023 as Viet Nam net-imported nearly US$7 million of the nut.

Trade data shows that Viet Nam purchased 272,000 tonnes of cashew from abroad in January and February, most of which came from Cambodia.

The General Department of Customs (GDC) said this trade deficit is unusual given that the country is an exporter of cashew, having net-exported about $400 million of the nut last year.

It is not the first time that unusual trade patterns hit the sector. In fact, the industry also suffered a trade deficit of around $500 million in 2021, the first deficit in three decades.

The customs authority looked into the deficit and uncovered a number of trade frauds behind the atypicality. Two fraudsters were brought to court and all of their imports were subjected to inspection.

GDC was concerned that the unusual trade pattern in early 2023 may be linked to similar frauds that caused the deficit two years ago.

According to the Deputy Chairman of the Vietnam Cashew Association (VINACAS) Bach Khanh Nhut, the boom in cashew imports in the first two months of 2023 could be attributed to the abundant cashew supply in Cambodia where the nut was in season.

The geographical proximity of Cambodia to Viet Nam allows Cambodian traders to incur fewer costs exporting cashew to Viet Nam than to other countries, such as India. This has led to a staggering 99 per cent of Cambodian cashew ending up in its neighbouring country.

"With a higher profit margin and easier payment options, it is no surprise that most of the Cambodian cashew was exported to Viet Nam," said Nhut.

The deputy chairman believed that the trade deficit in the early months of 2023 was not atypical because Vietnamese traders tend to increase their cashew purchases from Cambodia when the supply is abundant.

Meanwhile, many cashew importers, including Tanzania and Mozambique, have yet to enter into contracts with Vietnamese traders during this time. As such, it is too soon to draw any conclusion about the overall trade pattern for 2023.

Regarding trade fraud, he did not rule out the possibility of cashew smuggling in January and February. He revealed that smugglers may have used vehicles with a loading capacity of fewer than seven tonnes to manoeuver cashew into the country.

However, the extent of the problem remains unclear because Nhut did not have sufficient data to tell how much of the imported cashew was contraband.

With an aim to secure a higher position in the global supply chain, VINACAS is building a roadmap that envisions a broad-based switch toward extensively-processed cashew and the cultivation of more high-quality nut farms.

The move is expected to reduce the industry's reliance on imported nuts and enable producers to add more value to their cashew, thereby gaining greater international recognition.

According to trade data, Viet Nam exported 61,500 tonnes of cashew in the first two months of 2023, raking in around $353 million. The figure was 7.4 per cent lower than that in the same period last year.

The US was the largest importer with 15,858 tonnes, followed by Holland with 5,714 tonnes and China with 5,118 tonnes. 

Petrol prices slightly increase in latest adjustment

The Ministry of Industry and Trade and the Ministry of Finance revised up the prices of petrol in the latest adjustment on April 3.

Accordingly, the retail price of E5 RON92 went up 60 VND per litre to 22,080 VND (0.93 USD) from 3pm the same day.

The price of RON 95 rose 90 VND per litre to 23,120 VND while diesel price increased 130 VND per litre to 19,430 VND.

Since the beginning of this year, petrol prices have been revised up six times, down three times and kept unchanged once.

Vietnam learns from RoK’s experience in agricultural development

The successful experience of the "New Village Movement" in the Republic of Korea (RoK) is being applied in some Vietnamese localities through the Haeng Bok (Happy) Programme funded by the Korea International Cooperation Agency (KOICA), Deputy Prime Minister Le Minh Khai has said.

During a reception for Lee Sung-hee, Chairman of the National Agricultural Cooperative Federation (NACF) of the RoK, in Hanoi on April 3, Khai emphasised that Vietnam has received active support and close cooperation from the RoK government in agricultural and rural development.

As a country with a strong agricultural foundation, Vietnam wants to learn from experience of other countries, including the RoK, thus applying good practices in this scheme, he said.

In the process of industrialisation and modernisation, the Vietnamese Party and the State have always focused on developing agriculture and improving the lives of farmers, considering these as an important foundation for sustainable socio-economic development, Khai noted.

He expressed his hope that the Memorandum of Understanding (MoU) on cooperation signed recently between the Vietnam Cooperative Alliance (VCA) and the NACF, will contribute to developing agricultural cooperatives and increasing incomes for farmers in both countries.

Established in 1961, the NACF played an important role in promoting the "New Village Movement" in the RoK in the 1960s, contributing to changing the face of the countryside and improving the lives of Korean people. The movement has become a "brand" and symbol of the great development process of the East Asian nation.

Khai showed his belief that the NACF would actively coordinate with the Vietnamese Government to support the development of agriculture and rural areas, contributing to Vietnam’s socio-economic development.

For his part, Lee said that the signing of the MoU between the NACF and the VCA would create a basis for cooperation between the two nations in terms of cooperative development, thus helping the two countries make new strides in agricultural development.
The RoK is currently the biggest foreign investor in Vietnam. The country ranks second in development cooperation, tourism and labour partnership with Vietnam, and remains the third largest trade partner of the Southeast Asian nation.   

The two sides have also witnessed strong development in people-to-people exchanges, with over 200,000 expatriates from each country living, studying, and working in the other country, including about 80,000 Vietnamese-Korean multicultural families.

Viet Nam-Sichuan investment and trade promotion conference opens

A conference on trade and investment promotion and economic cooperation between Viet Nam-Sichuan (China) opened in Ha Noi on April 3.

About 120 companies, including manufacturing and import-export groups from many different fields of Viet Nam and China, attended the event organised by the Viet Nam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade and China Council for the Promotion of International Trade (CCPIT)'s Sichuan Sub Council, on the occasion of the CCPIT's business trip to Viet Nam.

Three memoranda of understanding on promoting investment and trade cooperation between Vietnamese enterprises and Sichuan enterprises (China) were signed at the conference.

At the conference, Le Hoang Tai, deputy head of Vietrade, said the conference created chances for enterprises of Viet Nam and Sichuan to connect and promote cooperation for boosting the official import and export of agricultural and aquatic products, machinery and equipment between the two sides.

Therefore, Viet Nam's enterprises could take opportunities to increase export activities to China, especially in the context that China has officially opened on January 8, allowing many kinds of Vietnamese agricultural and aquatic products to be exported to China, Tai said.

Meanwhile, Huang Li, head of CCPIT's Sichuan Sub Council, said this conference would open up new opportunities and continue to create favourable conditions for businesses of Viet Nam and Sichuan (China) in further strengthening exchanges and cooperation in trade and investment, contributing to promoting the stable and sustainable development of Viet Nam - China economic-trade relations.

Also at the conference, representatives of agencies and businesses in Sichuan Province (China) introduced the potential and opportunities in trade and investment cooperation between Viet Nam and China enterprises.

With a large population and strengths in tourism, heavy industry, manufacturing, mining and modern transportation facilities, Sichuan Province (China) is a potential partner of many localities of Viet Nam.

In recent years, the cooperation between Viet Nam and Sichuan (China) has continuously expanded in many fields thanks to the Regional Comprehensive Economic Partnership (RCEP) and operation of the China-Viet Nam intermodal railway.

Many large enterprises of Sichuan Province have invested in Viet Nam, contributing to localities' economic development in Viet Nam, Tai said. However, Sichuan's economic and trade cooperation with Viet Nam is still not commensurate with the two sides' potential.

He said there is still plenty of room for trade and investment cooperation between Viet Nam and Sichuan (China).

Especially, the operation of international air-railway model and the opening of the Chengdu – Lang Son – Ha Noi freight train will further improve the transport network in western China, helping the enterprises strengthen international trade connections between China and ASEAN countries, including Viet Nam.

In 2022, the trade turnover between Viet Nam and Sichuan only reached over US$11 billion, accounting for a very modest proportion of the total trade turnover between Viet Nam and China. Moreover, this trade turnover decreased by about 20 per cent on year due to the impact of the COVID-19 pandemic. 

Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries export value was estimated at 1.85 billion USD in the first quarter (Q1) of this year, a fall of 27% compared to the same period last year due to lower consumption and import demand under the impacts of inflation and economic recession, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

As of the end of Q1, shrimp exports earned 577 million USD, a year-on-year drop of 40%, while the export of tra and tuna fish brought home 447 million USD and 179 million USD, down 32% and 31%, respectively.

Le Hang, communications director of the VASEP said it’s forecasted that aquatic product exports will bounce back from Q2 after several international programmes were held in the US and EU, helping to attract more buyers.

Regarding to market, Hang noted that China will become Vietnam’s biggest seafood importer, but there will be great pressure from other competitors in this huge market.

Over the past time, the Ministry of Trade and Industry, Ministry of Agriculture and Rural Development, and the Ministry of Foreign Affairs have actively organised trade promotion programmes to connect Vietnamese seafood exporters with potential customers in key markets.

Meanwhile, firms in the fisheries sector are looking for more preferential loans and measures to remove difficulties for both aquaculture farmers and exporters to stabilise material supply sources and boost exports.

Vietjet to operate first Hanoi - Phuket direct service

Vietjet will be the first airline to operate the direct service between Hanoi and Phuket (Thailand) starting this summer.

The direct service between will operate one daily return flight from May 19 with around 3 hours per leg.

The flights take off from Hanoi at 11:35 and landing in Phuket at 14:40. The return flights will depart Phuket at 15:45 and arrive in Hanoi at 18:35.

Tickets can be reserved now at or Vietjet Air mobile app. The airline is also offering a 50% discount, excluding taxes and fees, to customers purchasing SkyBoss/ SkyBoss Business tickets by applying the code ALL50SBB for SkyBoss Business and ALL50SB for SkyBoss.

This programme is valid until this May 5 with travel dates available from now until December 12 this year.

Phuket, the airline offers busy weekly flight schedules from Vietnam’s major cities to Bangkok (Suvarnabhumi Airport) besides the Ho Chi Minh City – Chiang Mai route to meet demand of efficient and time-saving travels to the famous tourist country of Thailand.

Officials seek to bolster ties between Vietnamese, Chinese cooperatives, enterprises

President of the Vietnam Cooperative Alliance (VCA) Nguyen Ngoc Bao had a working session with a delegation of Chongzuo city in China’s Guangxi Zhuang Autonomous Region in Hanoi on April 2.

Giving a brief introduction of Vietnam’s collective economy, Bao said the sector, with cooperatives being the core, has nearly 30,000 cooperatives, 123,000 cooperative groups, and 130 cooperative alliances gathering more than 11 million members and workers.

He noted Guangxi holds a significant role in economic and trade ties between Vietnam and China as it shares a borderline with four northern provinces of Vietnam, namely Ha Giang, Cao Bang, Lang Son, and Quang Ninh. It also serves as an important trading gateway on the Nanning - Lang Son - Hanoi - Hai Phong - Quang Ninh economic corridor that covers three cities of Guangxi (Nanning, Chongzuo, and Pingxiang).

Bao said the two sides should seek measures to boost investment and trade links, connect supply chains, and encourage the two sides’ cooperatives and enterprises to take part in fairs and exhibitions to advertise their products and brands and connect supply and demand.

For his part, Lan Xiao, Secretary of the Chongzuo Party Committee, asked the VCA to help seek Vietnamese authorities’ provision of support and optimal conditions for economic and trade partnerships between Guangxi cooperatives and enterprises with Vietnamese partners, including between the Guangxi Federation of Supply and Marketing Cooperatives and the VCA.

He also proposed more phytosanitary protocols on Vietnamese fruits exported to China be issued so as to enhance the customs clearance capacity of border gates.

At the meeting, eight cooperatives and enterprises of Vietnam and China signed cooperation agreements.

Ministry proposes lower tax rate for small, micro-enterprises

The Ministry of Finance has proposed corporate income tax rate on small and micro-sized enterprises be lowered than the common rate in an effort to support them to overcome the difficult time and promote their development.

The proposal was raised in the report to the Government about the compilation of the draft amended Law on Corporate Income Tax (CITT) which aims to ensure synchronisation with the Law on Supporting Small and Medium-sized Enterprises (SMEs). The tax rate could be fixed or progressive according to the size of the income of small businesses.

According to the Ministry of Finance, small and micro enterprises account for a majority of the total number of existing enterprises and are holding an important role in the country’s socio-economic development.

As small enterprises remain the central goal of economic development policies, many countries offer lower CIT rates for them, the ministry said.

For example, in China, the common CIT rate is 25 per cent while small enterprises are entitled to a preferential rate of 20 per cent.

The common CIT in Thailand is 20 per cent and small enterprises with revenue from 300,000 baht or less would be exempted. A tax rate of 15 per cent is imposed on those with revenue from 300,001 – three million baht and 20 per cent for those with revenue from three million baht and higher.

In Korea, the tax rate is 10 per cent for the first 200 million won, 20 per cent for the taxable income from 200 million won to 20 billion won, and 22 per cent for the taxable income over 20 billion won.

The Netherlands applies a tax rate of 20 per cent on the first 200,000 euro of taxable income, 25 per cent on taxable income of over 200,000 euro.

Agreeing with the proposal, Tran Xoa, director of law firm Minh Dang Quang, said that proposal of a lower CIT rate on small enterprises had previously been raised in the draft amendment to the Law on CIT 2016 but later abolished.

The Law on Supporting SMEs which was approved and took effect from the beginning of 2018 regulates that SMEs would be given a lower CIT rate than normal. However, there are no specific regulations and SMEs are generally subject to 20 per cent CIT like other companies.

The reductions of CIT for SMEs were implemented some times before following different decisions in each period. For example, in 2020-21, small enterprises were given a reduction of 30 per cent of CIT as support to help them overcome the difficulty caused by the impacts of the COVID-19 pandemic.

The CIT on small and micro–sized enterprises should be lowered to 10-15 per cent, which, he said, would encourage the establishment of new firms and prevent tax avoidance.

Nguyen Quoc Anh, chairman of HCM City Rubber Plastic Manufacturer Association, said that SMEs accounted for around 97 per cent of the total number of enterprises in Viet Nam and were considered a major growth driver of the economy.

The fact, however, was that SMEs were struggling with the business more than big or FDI enterprises, he said, adding that SMEs were facing difficulties in accessing banking credit and they must bear higher interest rates.

He said that the tax rate on small enterprises should be lowered to 17 per cent and 15 per cent for micro-enterprises.

According to Nguyen Thi Ngan from Ha Noi Association of SMEs, SMEs expect that the proposal of reducing CIT on them would be approved, which would help them to have resources for investing in production and business, especially in the context of post-pandemic difficulties and increasing uncertainty in the global market.

Nguyen Duc Nghia from HCM City Union of Business Associations said that a fair playground should be created for both domestic and FDI companies.

He pointed out that most FDI enterprises in Viet Nam were provided with preferential tax rates, around 10 and 15 per cent as a tool to attract foreign investment. Meanwhile, SMEs which contributed 45 per cent to GDP, 31 per cent of the budget revenue and created more than five million jobs, were bearing higher rates, which undermined their competitiveness.

SMEs should be given similar preferential rates, he said.

Pham Xuan Hong, chairman of the HCM City Textile and Garment – Embroidery Association, said that besides tax reduction, it was necessary to have flexible management policies in response to fluctuations in the economy, such as tax payment extensions and credit packages to support enterprises together with simplified procedures.

The ministry proposed to include the amended Law on CIT in the 15th National Assembly's law and ordinance building programme in 2024 at its seventh meeting.

The draft would be submitted to the National Assembly for discussion at the 8th meeting in October 2024 and for approval at the 9th meeting in May 2025.

MARD targets $14 billion in agro-forestry-aquatic exports in Q2

The Ministry of Agriculture and Rural Development targets $14 billion in export turnover of the agro-forestry-acquatic sector in the second quarter of this year, an increase of 3 per cent on-year.
The MARD targets $14 billion in export turnover of the agro-forestry-aquatic sector in the second quarter
The target was issued in the context of the agricultural sector expecting the international market to recover from the second quarter of this year.

At a press conference on March 31, Deputy Minister Phung Duc Tien said, “To achieve this goal, it is necessary to continue to simplify administrative procedures, establish creative and appropriate production models to reduce production costs and ensure the supply of raw materials."

"In addition, the industry also needs to mobilise all resources for agricultural development, creating favourable conditions for farmers, cooperatives and businesses. At present, the agricultural infrastructure and logistics system are still weak, thus promoting the Distribution of public investment is an important factor to switch from agricultural production to an agricultural economy. Science and technology associated with innovation are the driving forces to change production in the industry,” he added.

MARD leaders noted that it was necessary to determine markets and products, and then focus on trade promotion via agricultural counsellors, and ambassadors. In addition, the ministry will organise business trips for business delegations to visit production facilities to learn from the experiences of others.

The ministry will focus on expanding export markets, removing barriers, and creating favourable conditions for domestic consumption and supporting enterprises to sign new export orders.

It will also coordinate to organise conferences at border provinces to promote trade in agricultural products between Vietnam and China. In addition, in the second quarter of this year, the ministry will participate in a series of events promoting Vietnam's key agricultural products in the United Kingdom for the 50th anniversary of Vietnam-UK relations.

Production and export boost acknowledged to fortify targets

With a decline in trade for Q1, looming risks both in the global markets are posing challenges for the country to reach its export target this year.

The government has warned that geopolitical uncertainties may continue affecting Vietnam’s efforts to boost production and exports this year.

“In the coming time, it is forecast that the global economic growth will slow down with a rise in risks, in addition to strategic and geopolitical competition among major nations becoming increasingly complicated and unpredictable, while the Russia-Ukraine conflict still continues,” said Prime Minister Pham Minh Chinh last month at a government cabinet meeting on Vietnam’s economy. “This will affect domestic production and exports.”

The General Statistics Office reported that in Q1, Vietnam’s trade turnover reached $154.27 billion, down 13.3 per cent from nearly $178 billion recorded in the same period last year, which was 15 per cent higher than in Q1 of 2021. In Q1, total export turnover hits $79.17 billion, down nearly 12 per cent on-year, and imports are valued at $75.1 billion, down 14.7 per cent on-year.

The government has targeted total goods export-import value to be about $795 billion this year, up about 8 per cent against last year. In which, the export turnover will be $398 billion, up over 8 per cent on-year. The trade surplus will stay at about $1 billion, far lower than the $11.2 billion recorded last year.

To realise this goal, it is clear that bigger efforts must be made in boosting production and expanding exports, but the task is not so easy given difficulties escalating in the global economic landscape.

According to a new World Bank report on long-term growth prospects, nearly all the economic forces that powered progress and prosperity over the last three decades are fading. As a result, between now and 2030 average global potential GDP growth is expected to decline by roughly one-third from the rate in the first decade of this century, to 2.2 per cent a year.

“In the near term, Vietnam faces heightened risks associated with external headwinds and domestic vulnerabilities. Persistent inflationary pressures and the prospects of more aggressive monetary tightening, especially in the United States and other advanced economies, could induce volatility in global financial markets and hamper economic growth even further,” the World Bank said in its latest Taking Stock report for Vietnam.

“Additionally, the risk of de-globalisation looms, with heightened geopolitical tensions and conflicts raising uncertainty about the future path of global trade and growth and would substantially affect small open economies,” it said.

At present, Vietnam’s key export markets include the United States, China, and the eurozone, and the Economist Intelligence Unit has forecasted that their growth rates in this year at 0.7, 5.7, and 0.7 per cent, respectively.

According to the Ministry of Planning and Investment, Vietnam’s total export-import turnover is double of GDP. Thus any fluctuations in the global market such as high inflation, high prices of materials, and supply chain disruptions can have negative impacts on macroeconomic stability and growth.

Nguyen Minh Cuong, principal country economist at the Asian Development Bank in Vietnam, told VIR that while headwinds are often discussed, tailwinds can also be significant, and they are bright spots in the global economy in 2023, including in Vietnam.

“Firstly, there is the US Fed’s policy shift. When it has begun to mitigate the intensity of interest rate hikes, this has helped subdue pressure on Vietnam’s exchange rates. The declining exchange rate of the USD and VND will relieve pressure on the country’s monetary policy,” Cuong said.

Secondly, China has opened its doors to the world, creating opportunities for Vietnam. “Of course, China’s move may also create pressure on the global energy market. Although the US economy is slowing down significantly, it can likely avoid a recession. This may still give Vietnam export opportunities,” he said. “Finally, ASEAN member states are maintaining good growth momentum. ASEAN is the fourth-largest export market of Vietnam. Those ahead of Vietnam have been doing a good job in controlling inflation and maintaining growth – and this is a massive opportunity for the country.”

The World Bank also stated that the baseline outlook for Vietnam’s economy remains favourable. Reflecting domestic and external headwinds, GDP is expected to grow by 6.3 per cent in 2023.

“The domestic demand is expected to be affected by higher estimated inflation of 4.5 per cent average in 2023. In the first half of 2023, manufacturing exports will moderate as demand from the US and eurozone weakens, while the path to China’s economic recovery remains uncertain,” the World Bank said. “The expected recovery of Vietnam’s major export markets during the second half of the year will positively impact exports. Growth is expected to reach 6.5 per cent in 2024 onward as exports strengthen in response to recovery in Vietnam’s primary markets of the US, China, and the eurozone.”

South Korea plans waste treatment industrial cluster with ODA funds in Vietnam

A new memorandum of agreement is expected to be signed by the South Korean Ministry of Environment and the Vietnamese Ministry of Construction in September.

The notion of conducting an official development assistance (ODA) project on the construction of an industrial cluster concentrating on waste treatment in Vietnam, from which to undertake information exchange and technology transfer between the two countries, was offered on March 31 by Kum Han Seung, the South Korean Minister of Environment.

Similar to Vietnam, South Korea had a period of fast economic expansion and addressed environmental issues by modifying its policies. Deputy Minister Seung said that based on this experience, South Korea is ready to help Vietnam secure the attainment of shared global objectives.

Early in December, Vietnam and South Korea created a comprehensive strategic alliance. At the 19th meeting of the Intergovernmental Committee for Economic-Commercial and Scientific-Technological Cooperation in October, the Ministry of Planning and Investment (MPI) stated that ODA and subsidies will be prioritised for healthcare, climate change, poverty alleviation, education and training, and large-scale infrastructure projects.

Vietnam is Korea's top-priority partner for development assistance, receiving around 20 per cent of Korea's overall funding in this area. According to the MPI, South Korea's yearly aid to Vietnam exceeds $500 million, of which 90 per cent is official development assistance and 10 per cent is grant aid.

According to MPI data, South Korea has pledged to offer Vietnam roughly $3.75 billion in ODA loans since the end of 2020, and there are presently 22 active projects employing this financing, totalling around $1.3 billion.

As pledged by the Vietnamese prime minister at COP26, Vietnam is advancing towards green and clean technology to realise the goals of green growth and zero emissions by 2050.

According to research from the Ministry of Natural Resources and Environment, rubbish generated within homes in metropolitan areas grew by 10-16 per cent between 2016 and 2020. It totals around 35,600 metric tonnes per day, which accounts for about 55 per cent of the total across the nation.

According to this data, 71 per cent of the volume is handled by burial, 16 per cent is treated at composting facilities, and 13 per cent is burned.

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