In March alone the country grossed US$85 million from exporting rattan, bamboo, sedge, and carpet products, representing an increase of 79.9% compared to February and hitting a record high over the past two years.

Experts assessed that this marks a good sign as the product category experienced a downward trajectory in February due to the extended Lunar New Year holiday, with turnover reaching only US$47.26 million, down 40.7% compared to January.

Over recent times, rattan, bamboo, sedge, and carpet products have been shipped to 59 markets worldwide with exports to the US, the UK, Japan, and Spain rising by 8.4%, 30.4%, 3.1%, and 9.1% to reach US$14.48 million, US$2.75 million, US$2.26 million, and US$2.19 million, respectively.

Thanks to the robust export growth being recorded in rattan, bamboo, rush, and carpet products, timber and wooden products during the first quarter of the year soared by 18.9% to US$3.4 billion on-year. Currently, the number of export orders has rebounded by between 80% and 90%, with some enterprises securing orders until mid-2024.

Industry insiders predict that with the ongoing recovery from some key export markets such as the US and the EU, there is a positive outlook ahead for Vietnamese wooden furniture and handicraft exports moving forward.

Vietnam Airlines to open direct flights from Hanoi and HCM City to Manila

Vietnam Airlines will open direct flights between Hanoi and Ho Chi Minh City to Manila, the capital city of the Philippines, starting from June 17.

There will be a total of three flights a week departing from Hanoi on Tuesday, Thursday, and Saturday; along with four flights a week departing from Ho Chi Minh City on Monday, Wednesday, Friday, and Sunday. All flights will be operated by wide-body aircrafts.

Vietnam Airlines is the first domestic airline to open direct flights to Manila. The new route marks a milestone for the airline in the international flight network development strategy as they connect the three leading economic hubs of Southeast Asia.

According to Vietnam Airlines’ representative, the launching of the flights also contributes to promoting economic, cultural, and tourism exchanges between both countries as well as the Southeast Asian region in general.

Vietnam-Taiwan business forum held in Hanoi

Vietnam has solidified its position as the most attractive investment destination for Taiwanese companies in Southeast Asia and globally, Deputy Minister of Planning and Investment Tran Duy Dong told the Vietnam-Taiwan business forum in Hanoi on April 8.

Investment from Taiwan (China) in Vietnam surged in 2023, reaching 2.2 billion USD, a fourfold increase from the previous year. This impressive growth placed Taiwan as the fourth largest investor in Vietnam, out of 105 countries and territories, with nearly 3,200 projects valued at over 39.5 billion USD. Additionally, Taiwan has become Vietnam's fifth largest trading partner.

Dong commended Taiwanese enterprises for their contributions to Vietnam's economic development. He highlighted their role in fostering technology transfer, increasing the use of locally-produced materials, and upskilling the Vietnamese workforce. These efforts, he noted, contribute significantly to the establishment of robust global supply chains.

Pham Tan Cong, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) and Chairman of the Taiwan Affairs Committee, pointed out the extensive presence of major Taiwanese electronics conglomerates like Foxconn, Wistron, Qisda, Pegatron, Compal and Quanta in Vietnam, saying that this is a promising signal for cooperation between the two sides.

On the occasion, the Vietnam-Taiwan (China) 2024 international investment and trade promotion exhibition kicked off on April 8 and runs until April 9. The event, co-organised by DVL IPT Investment and Trade Promotion JSC and the World Taiwanese Chambers of Commerce (WTCC), provides a platform for networking and collaboration among businesses across various sectors.

Nguyen Hong Chung, General Director of the DVL IPT Investment and Trade Promotion JSC, said the event takes place during a pivotal year - Vietnam marks its 35th anniversary of attracting foreign investment. Over the past three and a half decades, Taiwan (China) has emerged as a key partner, ranking fourth in foreign direct investment (FDI) with nearly 40 billion USD, and fifth in overall trade, with two-way trade of almost 25 billion USD./.

SaigonTex & SaigonFabric 2024 expo to get underway in Ho Chi Minh City

More than 1,000 foreign and local exhibitors are expected to attend the Vietnam Saigon Textile & Garment Industry Expo (SaigonTex & SaigonFabric 2024), which will run from April 10 to April 13 in Ho Chi Minh City.

This year's expo brings together exhibitors from 20 countries and territories, including Belgium, China, Germany, Hong Kong (China), India, Italy, Japan, the Republic of Korea, Malaysia, the Netherlands, Pakistan, Portugal. Portugal, Singapore, and Switzerland.

On display at the event will be an array of machinery, equipment, spare parts, textile materials, and fabric products from several of the world’s leading brands.

The highlight of the expo will be a Product Presentation Program (PPP) which combines static displays and catwalk performances.

The occasion will be organised for the first time as a means of introducing a range of fashionable products, applying the latest technology provided from both Vietnamese and international exhibitors.

Furthermore, there will also be a trade exchange hosted by the Vietnam Textile and Apparel Association (VITAS) to strengthen connectivity among exhibitors and buyers.

Within the framework of the exhibition, there are to be a number of seminars held to provide participants with experts’ experiences in policy, the circular economy, and green transition in the garment and textile industry.

French businesses interested in Vietnamese market

French enterprises gathered at a recent talk held by the Chamber of Commerce and Industry (CCI) of Nièvre province and the administration of Nevers city to seek investment opportunities and promote economic and trade cooperation with Vietnam.

Attending the event, Vietnamese Ambassador to France Dinh Toan Thang as well as trade and investment representatives affirmed that Vietnam always roll out its red carpet for foreign investors, and the Vietnamese Embassy together with trade and investment representative offices in France stand ready to accompany French businesses who want to set up cooperation and investment ties with Vietnam.

LOOK CYCLE, renowned as a producer of ball bladder, carbon fiber frames and components for high end racing bikes, has an intention to open its factory in Vietnam.

Its director Christophe Lorbat expressed his desire to partner with Vietnam to launch environmentally-friendly bikes in the market, elaborating environmental protection is a big concern while the global bike market is growing in size.

Meanwhile, Chairman of EXAGON Engineering Luc Marchetti said his firm wants to cooperate with Vietnam in the production of electric vehicles (EV).

Vietnam has an industrious and skilled labour force while EXAGON has considerable experience in developing the transport industry, he stressed, stating EXAGON could help Vietnam become a global EV manufacturer.

With 30 years of experience in design and manufacturing of welded heat exchangers, pressure vessels and filters, Nexson Group attended the event to study the Vietnamese market and wants to seek partners in the areas of energy, petrochemicals, paper, steel, liquefied natural gas, and plastic recycling.

According to Chairman of the CCI of Nièvre province Jean-Philippe Richard, his organisation is willing to support local firms to develop in the Vietnamese market and vice versa.

Mayor of Nevers city Denis Thuriot told the press that the city wants to boost economic cooperation with Vietnam, highlighting local firms who operate in ceramic production and transport industry have shown interest in the Vietnamese market.

Thuriot said he has been impressed by Vietnamese EV maker VinFast, and expressed his belief that the company could develop in Europe and in France in particular.

The CCI of Nièvre province, established in 1888, has supported 3,000 business leaders in management, operation, digital transformation and startup. Besides, it has an important role to play in helping enterprises promote economic, trade and investment cooperation with domestic and international partners./.

Bangladesh centre’s report highlights Vietnam's success in FDI attraction

Central to Vietnam's economic narrative is the substantial influx of foreign direct investment (FDI), which has played a crucial role in driving growth and fostering development across various sectors, according to an article published by the KRF Centre for Bangladesh and Global Affairs on its website cbgabd.org.

The period from 2002 to 2023 witnessed Vietnam's remarkable economic expansion, underscoring the significant impact of strategic investments and forward-thinking policies, it said.

It added that over 35 years, Vietnam's registered FDI has experienced remarkable growth, surging from 2 million USD in 1988 to a staggering 550 billion USD by the end of 2023. The current foreign investment landscape in Vietnam is characterised by billions of US dollars fueling economic growth.

The country's strategic focus on high-tech sectors, including agriculture, manufacturing, services, and travel, further enhances its appeal for international investors. Also, Vietnam boasts over 36,000 active FDI projects with a total fund of 441 billion USD. Notably, 57% of these funds have been disbursed, reflecting the robustness of the foreign investment landscape in the country.

Over the past three decades, the Republic of Korea, Singapore and Japan have emerged as the top contributors to Vietnam's FDI landscape. With the upgrade of Vietnam-US relations to a Comprehensive strategic partnership in September 2023, expectations rise for a forthcoming fourth wave of FDI.

According to the article, Vietnam's strategic geographic location as a manufacturing hub and its pivotal role in the "China 1" strategy highlight its significance in East Asia's economic landscape. Vietnam provides a conducive environment for investment, thanks to its stable government, well-defined economic vision, fair policy control, minimal investment barriers, and attractive incentive schemes.
         
The nation's dedication to enhancing its business environment is apparent in its increasing rankings for ease of doing business, bolstered by a regulatory framework that emphasises efficiency and transparency. With a population of over 95 million, a growing middle class, and a services sector that contributes over 40% to its GDP, Vietnam offers a promising market for businesses. This is further supported by the rising consumer spending in the country. This combination of factors underscores Vietnam's impressive economic growth and its potential for reliable investment returns on both regional and global levels.

Moreover, Vietnam's active involvement in major global trade agreements, including the Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the EU-Vietnam Free Trade Agreement (EVFTA), has solidified its status as a sought-after destination for international trade. Vietnam's extensive network of Double Tax Avoidance Agreements with over 80 countries and territories is a crucial factor that attracts foreign investors. These agreements create a tax-friendly environment and encourage investments across borders, relieving the burden of double taxation.

Vietnam's focus on infrastructure development, as highlighted in its transport infrastructure master plan, also demonstrates a proactive approach to bolster economic growth. It has a labour market that is both large and highly competitive, with around 60 million individuals. The Vietnamese Government's consistent efforts to draw foreign investors through a range of incentives, particularly tax incentives, are crucial.

In conclusion, the article said with a stable government and a clear economic vision, Vietnam provides investors with a favourable environment characterised by fair policy control, minimal investment barriers, and robust incentive schemes./.

FDI prospects remain bright spot of Vietnamese economy

While near-term trade is about to take off again, long-term FDI prospects remain a bright spot of Vietnamese economy, according to the Hong Kong and Shanghai Banking Corporation (HSBC).

The HSBC report “Vietnam at a glance” outlined that greenfield FDI rose almost 60% year-on-year in the first quarter of the year, 65% of which is concentrated in the pillar manufacturing sector and the rest in the real estate.

Singapore has regained the crown as Vietnam’s largest FDI provider, with an impressive share of 50%. Greater China, that made up half of Vietnam’s FDI in 2023, came second with a share of 30%. The Republic of Korea and Japan, that traditionally are Vietnam’s two largest investors, only accounted for a share of 15% combined.

According to HSBC experts, while Vietnam is set to see better growth prospects in the Year of the Dragon (2024), its GDP in the first quarter of the year expanded by a slower-than-expected pace of 5.7% year-on-year.

Think tanks pointed out that this does not mean that the recovery story is derailed. Rather, Vietnam remains firmly on a rebound path, led by better trade prospects.

Indeed, high frequency indicators continue to point to sanguine trade outlook, largely thanks to an upturn in the electronics cycle. Not only has the short-term trade cycle turned, but the long-term positive FDI prospects also carry on. But to return to pre-pandemic growth, Vietnam’s growth requires a broadening out from its trade sector to domestic-oriented services.

HSBC economists kept their yearly growth forecast unchanged at 6.0% for 2024, but have tweaked their quarterly forecasts, accounting for a stronger pick-up in activities in the second half of the year.

With regard to inflation, they expect inflation to average around 3.9%, albeit elevated but still below the State Bank of Vietnam (SBV)’s inflation ceiling.

Price movements likely to be affected by inflation landscape

Factors such as the upcoming rise in power tariffs and salaries are expected to pressurise the government’s efforts in bringing inflation under control this year.

Deputy Prime Minister Le Minh Khai last week signed a decision on a mechanism to adjust the average electricity retail price in Vietnam.

Under the decision, as of May 15, in case the calculated average electricity retail price decreases 1 per cent or more compared to the current average electricity price, Electricity of Vietnam (EVN) is responsible for reducing the price by a corresponding level. If the average electricity selling price needs to be adjusted to increase from 3 to less than 5 per cent compared to the current average price, EVN is allowed to decide to adjust the average price to a corresponding level.

However, when the average electricity selling price needs to be adjusted to increase from 5 to less than 10 per cent as compared to the current average price, EVN is allowed to adjust such a price to a corresponding increase only after it has reported the situation to and received approval from the Ministry of Industry and Trade (MoIT).

And in case the average electricity selling price needs to be revised up by 10 per cent or higher as compared to the current average price or it can affect the macroeconomic situation, any price hike will depend on the examination results of the MoIT in combination with other relevant ministries, and the results must be reported to the prime minister.

In January, the MoIT suggested a rise in electricity retail price for this year so that EVN could ensure money flow for its performance and projects.

Despite two electricity price hikes of 3 and 4.5 per cent, respectively, in 2023, EVN is reported to have suffered big losses in the year of around $708 million due to high prices of materials and exchange rate differences. In 2022, the figure was reported to have been around $864 million.

Nguyen Hoang Anh, chairman of the Commission for Management of State Capital at Enterprises said, “If electricity prices fails to be increase, the losses will continue in 2024,” Anh said, adding that the government is considering a mechanism that may allow an electricity price hike of below 5 per cent within every three months.

According to the General Statistics Office, a hike in power prices contributed to an on-year rise of 3.25 per cent in the consumer price index (CPI) last year. Specifically, the price of household electricity rose 4.86 per cent, leading to a 0.16 per cent increase. In Q1 2024, a 9.38 per cent rise in electricity price caused a 0.31 per cent climb in CPI, which climbed 3.77 per cent on-year.

Meanwhile, in a draft decree on minimum wage for contracted labourers in 2024 that it is formulating, the Ministry of Labour, Invalids, and Social Affairs has proposed a 6 per cent climb to Vietnam’s regional minimum wage, effective July 1. The move came after unanimous approval from the National Wage Council.

If the draft decree is adopted, monthly minimum wages will be adjusted in four regions. Region 1 will see wages increase to VND4.96 million ($206), region 2 to VND4.41 million ($184), region 3 to VND3.86 million ($160), and region 4 to VND3.45 million ($144). This increase surpasses the estimated minimum living standard of workers until the end of 2024 by 2 per cent.

Region 1 embraces the urban areas of Hanoi and Ho Chi Minh City; Region 2 consists of the rural areas of these two cities, along with major urban areas in the country such as Can Tho, Danang, and Haiphong; Region 3 covers provincial cities and the districts of Bac Ninh, Bac Giang, and Hai Duong provinces; and Region 4 includes the rest of the country.

According to the Asian Development Bank, Vietnam’s prudent and proactive monetary policy, supported by price controls on petrol, electricity, food, healthcare, and education, should keep inflation in check. The inflation forecasts are maintained at 4 per cent for 2024.

Three new port added to Vietnam ICD system

Thạnh Phước, Nam Đình Vũ and Phú Mỹ have been added to the list of inland container depots (ICDs) in Việt Nam, which now reaches 14 in total, according to a newly-released decision by the Ministry of Transport.

The remaining 11 ports include Hải Linh, Km3+4 Móng Cái, Tân Cảng Hải Phòng, Đình Vũ, Hoàng Thành, Long Biên, Tân Cảng Hà Nam, Phúc Lộc, Tân Cảng Nhơn Trạch, Tân Cảng Quế Võ and Tân Cảng Long Bình. Most of them are located in northern cities and provinces.

The Thạnh Phước ICD located in Tân Uyên City, Bình Dương Province helps businesses transport goods between Bình Dương and other provinces and cities nationwide.

Phú Mỹ ICD in the phase 1 located in Phú Mỹ 3 industrial park, Bà Rịa - Vũng Tàu province covers an area of 37.8 hectares with six wharves.

Meanwhile, Nam Đình Vũ ICD in the phase 1 belongs to Đình Vũ - Cát Hải economic zone, Hải Phòng, conveniently connecting to industrial parks such as Nam Đình Vũ, Minh Phương and Deep C, Lạch Huyện International Port and many other seaports of Hải Phòng. 

Major markets sharply raise imports of cameras and camcorders from Việt Nam

The export of cameras, camcorders and components earned more than US$720 million last month, an increase of 75.6 per cent year-on-year, according to the General Statistics Office (GSO).

Overall, this product group earned more than $2.15 billion in the first quarter of this year, an increase of 69.5 per cent over the same period last year.

The standout feature of this selection of export goods is the notable surge in imports across all key markets.

China was the largest market for Vietnamese cameras, camcorders and components with more than $931.72 million as of February 29, a sharp increase of 105 per cent over the same period last year. Thus, the Chinese market accounts for 43 per cent of this product.

The US is Việt Nam's second largest market with a turnover of more than $136 million in the first two months of the year, accounting for 6.3 per cent.

South Korea ranked third with more than $92.8 million, an increase of 22.5 per cent over the same period last year, and the proportion reached 4.3 per cent.

Besides the three main markets above, Việt Nam also exports to Hong Kong (China), Japan and India.

By the close of the first quarter of this year, this product category has emerged as the second-fastest-growing, trailing only behind plastic products.

The export of cameras, camcorders and components brought in more than $7.6 billion last year, an increase of 19.5 per cent over the same period, to be the product with the third highest growth rate, only after fruits and vegetables and rice.

Bank shareholders to receive high dividends, stock bonuses

Banks are presenting to their shareholders plans to distribute cash and stock dividends while issuing bonus shares to shareholders.

At the end of last month, the shareholders' meeting of Nam A Commercial Joint Stock Bank approved a 25 per cent dividend distribution plan for 2023 in the form of stocks to increase capital and enhance financial capacity.

The bank aims to raise its capital to over VNĐ13.7 trillion (US$551.3 million) this year and reach about VNĐ16.2 trillion by 2025.

In 2023, Nam A Bank released over 211.6 million shares to increase its share capital, with a dividend rate of 25 per cent.

Vietnam International Commercial Joint Stock Bank (VIB) was expected to propose a dividend distribution plan with a 29.5 per cent ratio at its shareholders' meeting on April 2, including a maximum cash dividend of 12.5 per cent, a stock dividend of 17 per cent and an issuance of bonus shares to employees at a rate of 0.44 per cent.

In detail, the bank will pay dividends in two stages: an interim cash dividend of 6 per cent and a cash dividend payment of 6.5 per cent. The total dividend payment amount will be VNĐ3.17 trillion.

The Board of Directors of VIB also proposes to increase the capital by issuing bonus shares to existing shareholders and its employees.

Meanwhile, Orient Commercial Joint Stock Bank (OCB) has set a target to increase its capital by an additional VNĐ4.2 trillion in 2024 through three options.

The first option involves issuing around 411 million shares to pay dividends to existing shareholders at a rate of 20 per cent.

The second option is to issue 5 million shares for employees, while the third plan is a private placement, where OCB will offer a maximum of 882,353 shares for sale.

If all three options are successful, OCB's charter capital will rise from nearly VNĐ20.55 trillion to over VNĐ24.7 trillion.

The specific timeline for implementing the capital increase phases will be determined by the Board of Directors, once approval is obtained from the relevant authorities.

This year, several banks in Việt Nam are taking a new approach to dividend distribution.

Instead of solely issuing stocks as dividends, they are paying both cash dividends and stock bonuses to increase their capital.

Techcombank, for example, plans to distribute a 15 per cent cash dividend and a 100 per cent stock bonus to its shareholders.

The lender’s Board of Directors will propose a 15 per cent cash dividend for 2023.

In addition, Techcombank's Board of Directors has proposed a capital increase scheme. The objective is to raise the charter capital from over VNĐ35.2 trillion to more than VNĐ70.45 trillion by issuing new shares from owner's equity.

This includes utilising undistributed profit after tax, additional reserves for charter capital and surplus capital based on the audited financial statements for 2023. The planned issuance ratio is 100 per cent, meaning that each shareholder will receive an additional 100 new shares for every 100 shares owned.

Asia Commercial Joint Stock Bank (ACB) plans to distribute dividends for 2023 from retained earnings, totalling nearly VNĐ19.9 trillion. The dividend rate will be 25 per cent, with 15 per cent in stock dividends and 10 per cent in cash, amounting to VNĐ9.71 trillion. This dividend ratio will also apply to 2024.

The dividend distribution will increase ACB's charter capital to nearly VNĐ44.7 trillion, with an additional VNĐ5.8 trillion and over 582 million new shares issued. The capital increase is expected to be completed in the third quarter of 2024.

MBBank's Chairman of the Board of Directors, Lưu Trung Thái has revealed that the bank plans to distribute cash and stock dividends in 2024, but the exact ratio has yet to be finalised.

Last year, the bank successfully raised its charter capital from VNĐ45 trillion to over VNĐ52.1 trillion by distributing stock dividends. 

Southern tourism enjoys sustained stable growth

Southern localities’ tourism sector has recorded impressive results, indicating sustained growth in the first quarter of 2024 thanks to efforts to diversify products and take several solutions to address challenges and difficulties facing the industry.

The Hồ Chí Minh City Department of Tourism reported that the southern hub welcomed 1.38 million international tourists and 8 million domestic ones in the period, representing year-on-year increases of 3 per cent and 6.6 per cent, respectively. Total revenue from tourism activities reached nearly US$1.79 billion, surging by nearly 24 per cent compared to the same period last year.

In the Mekong Delta province of Kien Giang, travel firms have offered many tours to ecological areas, beaches, and islands, which are popular choices for many tourists. The locality served over 2.7 million holiday-makers in the period, up over 22 per cent year-on-year.

The Mekong Delta province of Đồng Tháp, known for tourism products associated with agricultural production experience, craft village, ecotourism, and culture, attracted 1.15 million tourists in the last quarter, earning $20 million in revenue.

According to Vice Director of the HCM City Department of Tourism Lê Trương Hiền Hoà, the 20th Tourism Festival of HCM City, which will take place from April 4 – 7, is eagerly awaited by many tourists who are looking to purchase tour packages with preferential policies. 

At the event, accommodation, travel agencies, and culinary businesses will introduce 400 tour programmes, accommodation and culinary services, and health care services combined with tourism, he said. 

The Saigontourist Travel Service Company said it introduces to tourists many domestic and international tour packages with well-connected itineraries and diverse experiences, including those to domestic attractive destinations such as Phan Thiết, Đà Lạt, Nha Trang, Phú Yên, Côn Đảo, Vũng Tàu, and the Mekong Delta region, with flexible transportation options.

Similarly, the Việt Nam Travel and Marketing Transports Joint Stock Company (Vietravel) offers various experiential tour packages with discounted prices, aiming to stimulate the demand in the summer tourism season.

To attract more visitors, Kiên Giang’s tourism sector will continue to develop new tourism products; and focus on promoting and connecting more international flight routes to make it more convenient for the travel of tourist, and providing tourism products associated with environmental protection and community-based tourism towards ensuring sustainable tourism development. 

Vietnamese startups bag $35.7 million in first quarter of 2024

Vietnam's tech ecosystem received total funding of $35.7 million in the first quarter of 2024, according to a report released by Tracxn Technologies on April 2.

The Q1/2024 funding of $35.7 million was a 39 per cent drop from the $58.6 million raised in the same period in 2023, but a 467 per cent increase compared to the $6.3 million raised in Q4/2023.

Vietnam ranked third in terms of funding raised by Southeast Asian countries in Q1/2024 after Singapore and Indonesia, while it was fourth in Q4/2023.

Early-stage funding in Q1/2024 stood at $31.2 million, while Q4/2023 did not witness any funding rounds at that stage. However, this was a 47 per cent drop from the $58.6 million raised in the same period last year.

In Q1, total funding of $4.5 million was received in the seed stage, while Q1/2023 did not witness any notable funding. However, this was a 29 per cent drop compared to the $6.3 million raised in Q4/2023.

Trancx noted that this space had not witnessed any late-stage funding in the last three quarters.

Be Group, an app-based aggregator that offers booking services for motorbikes, cars, air tickets, and fast deliveries raised $31.2 million in a series b round, making it the highest funding round so far in 2024.

Autotech, edtech, and enterprise applications were the top-performers based on funding in the Vietnamese tech sector. While Q4/2023 did not witness any notable funding in the autotech and edtech sectors, Q1/2024 witnessed $31.2 million and $2.5 million respectively.

Inversely, the real estate and construction tech and retail sectors did not attract any funding in Q1/2024. Funding into enterprise applications dropped from $4 million in Q4/2023 to $1.5 million in Q1/2024.

Vietnam's tech space saw no Unicorn or IPOs in Q1, which was the same scenario to Q1 and Q4 in 2023.

CyberAgent Capital, Nextrans, and Vietnam Silicon Valley were the overall top investors in this space, while Northstar Ventures, Monk's Hill Ventures, and R2 Venture Partners were the top seed investors Q1/2024.

Construction on Suntory PepsiCo's largest factory in Asia begins

Suntory PepsiCo Vietnam Beverage Co., Ltd. started construction on a beverage factory on April 8 in Huu Thanh Industrial Park of Duc Hoa district in the southern province of Long An.

Boasting total investment capital of more than US$300 million, this will be the largest and most modern factory of Suntory PepsiCo throughout the Asia-Pacific region.

When being put into operation, the factory is expected to have a production capacity of up to 800 million litres per year to meet rising demand among consumers and strongly enhance Suntory PepsiCo's leading position within the Vietnamese market.

The factory will be operated by renewable energy such as biomass fuel and solar energy, a factor which will help to significantly reduce greenhouse gas emissions throughout production activities.

This marks a strong step forward for businesses in terms of realising the Vietnamese Government's sustainability commitments, especially the commitment made to reducing net greenhouse gas emissions to zero by 2050.

Jahanzeb Khan, general director of Suntory PepsiCo Vietnam, said the factory will receive the largest investment in the company's history in Vietnam, noting that the state-of-the-art factory will help to raise standards for both productivity and sustainability, thereby paving the way for the company's long-term growth and enhancing its ability to serve consumers.

This is also the firm’s sixth factory in the Vietnamese market, a feat that demonstrates the company's vision in its long-term development strategy in the country.

Upon addressing the groundbreaking ceremony, Nguyen Van Ut, chairman of Long An provincial People's Committee, emphasised the province has so far received large investment from major investors such as Lotte, VinaCapital, Saigontel, Coca-Cola, and Aeon.

These represent positive signs for the province’s economic picture, whilst also demonstrating the rapid economic development of the locality moving forward, he noted.

The selection of Long An as an investment destination of Suntory PepsiCo therefore affirms the locality’s attractiveness in luring foreign investors, especially well-known financiers and leading brands in the world.

Deputy Minister of Planning and Investment Do Thanh Trung said the Vietnamese Government highly appreciates Suntory PepsiCo's continuous investment and sustainable development in the nation.

The company's project in Long An is one of the largest foreign-invested projects in the province and is expected to further contribute to socio-economic development in the Mekong Delta region.

Vietnam-Taiwan business forum held in Hanoi

Vietnam has solidified its position as the most attractive investment destination for Taiwanese companies in Southeast Asia and globally, Deputy Minister of Planning and Investment Tran Duy Dong told the Vietnam-Taiwan business forum in Hanoi on April 8.

Investment from Taiwan (China) in Vietnam surged in 2023, reaching 2.2 billion USD, a fourfold increase from the previous year. This impressive growth placed Taiwan as the fourth largest investor in Vietnam, out of 105 countries and territories, with nearly 3,200 projects valued at over 39.5 billion USD. Additionally, Taiwan has become Vietnam's fifth largest trading partner.

Dong commended Taiwanese enterprises for their contributions to Vietnam's economic development. He highlighted their role in fostering technology transfer, increasing the use of locally-produced materials, and upskilling the Vietnamese workforce. These efforts, he noted, contribute significantly to the establishment of robust global supply chains.

Pham Tan Cong, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) and Chairman of the Taiwan Affairs Committee, pointed out the extensive presence of major Taiwanese electronics conglomerates like Foxconn, Wistron, Qisda, Pegatron, Compal and Quanta in Vietnam, saying that this is a promising signal for cooperation between the two sides.

On the occasion, the Vietnam-Taiwan (China) 2024 international investment and trade promotion exhibition kicked off on April 8 and runs until April 9. The event, co-organised by DVL IPT Investment and Trade Promotion JSC and the World Taiwanese Chambers of Commerce (WTCC), provides a platform for networking and collaboration among businesses across various sectors.

Nguyen Hong Chung, General Director of the DVL IPT Investment and Trade Promotion JSC, said the event takes place during a pivotal year - Vietnam marks its 35th anniversary of attracting foreign investment. Over the past three and a half decades, Taiwan (China) has emerged as a key partner, ranking fourth in foreign direct investment (FDI) with nearly 40 billion USD, and fifth in overall trade, with two-way trade of almost 25 billion USD./.

Vietnam, Laos sign new trade agreement

Minister of Industry and Trade Nguyen Hong Dien and Lao Minister of Industry and Commerce Malaithong Kommasith signed a new Vietnam-Laos trade agreement following their talks in Vientiane, Laos, on April 8.

At the talks, Minister Dien described industry and trade ties as a pillar of bilateral relationship. In the first three months of this year, two-way trade between Vietnam and Laos hit 417.8 million USD, down 1.8% annually. Vietnam mostly exported petroleum products, iron and steel, machinery and equipment to Laos while importing rubber, wood, ore and minerals from the neighbouring country.

Dien acknowledged Laos's growing production capacity, evidenced by its transition from a trade deficit to a surplus with Vietnam in recent years. He also underscored Laos's increasing importance as one of the important suppliers of raw materials for Vietnam’s manufacturing within ASEAN.

According to him, Vietnam has a significant demand for imported raw materials and electricity, including those from Laos.

Dien affirmed the Vietnamese Ministry of Industry and Trade’s readiness to help Laos secure a stable supply of petroleum products.

Both sides agreed to hold more trade promotion activities such as business forums, networking conferences, trade fairs and market information seminars; as well as develop border trade infrastructure.

They called for effectively implementing the Memorandum of Understanding on the development and connectivity of Vietnam-Laos border trade infrastructure signed in January 2024 while reviewing to amend and supplement the 2007 Hanoi Agreement and the Vietnam-Laos Border Trade Agreement to align with the current realities.

Following the talks, the two ministers signed the new Vietnam-Laos trade agreement, and witnessed the signing of a Memorandum of Understanding (MoU) between the General Department of Market Surveillance (GDMS) and the Department of Business Competition and Trade Inspection under the Lao Ministry of Industry and Commerce, and another MoU between the GP Holdings – the National Research Institute of Mechanical Engineering and Phonesack Group on building warehouses and conveyor belts for coal transportation.

Under the MoU between the GDMS and the Department of Business Competition and Trade Inspection, both sides will update each other about respective policies and laws, offer support in market management training for officials, share the best practices in enforcing administrative penalties on business and trade violations while combating cross-border smuggling, commercial fraud and illegal transportation of goods between the two countries.

Specific cooperation plans will be determined annually or periodically, taking into account each country's legal frameworks and strategic priorities./.

Vietnam termed a bright spot in R&D field: RoK newspaper

Vietnam is seen a next generation workshop and a growing market to become an advanced research and development (R&D) centre, said an article published by Dong-a Ilbo newspaper of the Republic of Korea (RoK).

According to the article, there are about 1,000 R&D employees of automotive electronics and electronic equipment working at R&D subsidiaries of LG Electronics Vietnam in Hanoi and the central city of Da Nang, including only six Korean staff.

In 2019, the number of R&D personnel of LG in Vietnam totaled 200, but by January 2023, a R&D department of the firm with about 750 employees was splited into an independent unit.

The article said Vietnam's R&D competitiveness benefits from changes in the Government’s policies.

The Vietnamese Government aims to go beyond the previous “Made in Vietnam” model, which was limited to be a hired processing facility, to become a manufacturing centre with its own technology and production capacity, and stepped up efforts to promote the information and communications technology (ICT) sector.

Domestic universities have recently focused on training engineers specialising in information technology (IT).

Following this trend, the presence of R&D centre of LG Electronics Vietnam is also growing stronger. The role of Vietnamese developers, who are mainly responsible for developing and testing basic electronic functions by analysing orders from automakers, has been expanded to the design of core functions.

Jeong Seung-min, director of the R&D centre of LG Electronics Vietnam - said that the establishment is responsible for developing software related to LG's automotive electrical and electronic equipment.

Initially, LG’s research facilities in Vietnam could carry out only 20% of the R&D process, but now they can carry out up to 60% and are expected to increase in the near future./.

Forty-five provinces and cities issue logistics service development plans

Forty-five provinces and centrally-run cities have issued logistics service development plans up to this point, while 47 provinces and cities have reported on the implementation of logistics activities over the last year.

Nine provinces and cities have held conferences to promote investment and develop provincial logistics services, and five provinces and cities have organised logistics knowledge training for local officials.

The Agency of Foreign Trade (AFT) under the Ministry of Industry and Trade (MoIT) held a meeting with municipal and provincial departments of industry and trade concerning State management of the logistics sector in Hanoi last week.

Speaking at the opening of the meeting, AFT Director Nguyen Anh Son said that with a special geopolitical location in a dynamic development area of the world, along with increasingly deep integration with the global economy, Vietnam's growth rate of import-export and e-commerce was always in the double digits.

Vietnam was becoming an attractive destination for logistics activities in the Asia-Pacific region, added Son.

The World Bank’s report published last year showed that Vietnam ranked 43rd in the logistics efficiency index ranking, in the top five of ASEAN after Singapore, Malaysia and Thailand, and the same position as the Philippines.

Along with that, the average annual growth rate of Vietnam's logistics was from 14 – 16%, making an important contribution in bringing Vietnam's total export and import turnover to 638 billion USD last year.

Vietnam’s logistics services not only contributed significantly to the country's economic development but also played an important role in creating an effective transportation network, connecting domestic trade with international markets, he said.

Sharing at the meeting, Vu Bich Hao, Deputy Director of the Department of Industry and Trade of Ba Ria - Vung Tau province, emphasised that logistics services in the province were quite diverse, including transportation, warehousing and other support services.

The province currently has a total of more than 300 businesses providing goods transportation services and logistics warehousing services, according to the official.

Regarding seaport logistics infrastructure, Ba Ria - Vung Tau has 69 planned ports. Of which, there are 50 projects in operation with a total wharf length of 17,735 metres and a total design capacity of 180 million tonnes per year; and eight container ports with capacity of 8.3 million TEUs per year.

Cai Mep – Thi Vai Port cluster is the main port cluster of Ba Ria - Vung Tau seaport. There are currently 24 projects in operation with wharf length of 10,988 metres and total design capacity of 155 million tonnes per year.

It had the potential to be an important gateway not only for Vietnam but also for Southeast Asia, said Hao.

To improve competitiveness and develop the logistics industry, she proposed the MoIT continue to improve policies and laws on logistics services; especially detailed guidance on State management in the field of logistics to serve as a legal basis for localities to deploy and implement./.

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