Hanoi has emerged as a bright spot as it was one of the leading localities in terms of tourism revenue during the early months of 2023, according to Savills Vietnam.

In the first half of 2023, Hanoi served 10.3 million domestic visitors and 2.03 million international arrivals, 22.6% and seven times higher than those of the same period last year. Total revenue from tourism activities hit an estimated 44.88 trillion VND (1.89 billion USD, surging by 74.3% year-on-year.

Experts noted that the tourism sector’s recovery has positively impacted the hotel market. Although the accommodation segment in Hanoi has not fully returned to pre-pandemic levels, it is experiencing a fairly good resumption with high expectations for the future.

With support policies from the Government and a positive outlook for foreign direct investment (FDI) inflows, the hospitality and serviced apartment markets are predicted to fully recover after 2024.

According to a market report in the second quarter of 2023 by Savills Vietnam, the hotel supply in Hanoi increased by 7% quarter-on-quarter and 10% year-on-year, reaching a total of 10,962 rooms.

However, the room occupancy rate in the period reached only 62%, much lower than the 73% recorded during the same period in 2019.

Experts said the slow recovery pace is partly due to the fact that the number of international tourists coming to Vietnam has not met expectations.

To attract more foreign tourists to Vietnam, the Government and relevant agencies have introduced various special incentive policies, including visa exemptions.

Specifically, from August 15, people with Vietnamese e-visas can enter and exit the country any number of times within 90 days. The policy is expected to revive tourism and hospitality, creating opportunities for breakthroughs in the coming time.

Vietnam served 70 million tourists in the first two quarters of 2023, equivalent to 63% of the target set for the year, Savills Vietnam reported.

Of the figure, the number of domestic tourists increased by 5% annually, reaching 64 million, while the number of international visitors surged by 826% year-on-year, totaling 5.6 million. The highest proportion comes from the Republic of Korea, accounting for 29% of the total international arrivals, followed by China with 10%, and the US with 7%.

 Nearly 16.24 billion USD in FDI is poured into Vietnam in the first seven months of this year. (Photo: VNA)

Data from the General Statistics Office shows that nearly 16.24 billion USD in FDI was poured into Vietnam in the first seven months of this year, up 4.5% compared to the same period last year.

Hanoi was ranked first among localities nationwide in foreign direct investment (FDI) in the period with a total investment of over 2.28 billion USD, accounting for nearly 14.1% of the total registered investment capital in the country, and up 2.76 times year-on-year.

Hanoi’s tourism sector will focus on diversifying tourism products to lure more holiday-makers to the capital city. The municipal Tourism Department also plans to organise a series of events, programmes, and festivals to promote the city’s tourism.

By late 2023, Hanoi will welcome new hospitality supplies from international brands, including L7 West Lake Hanoi in Tay Ho district operated by Lotte.

From 2024 to 2025, the market is projected to see an addition of over 2,600 rooms from various international hotel brands such as Dusit Hanoi – Tu Hua Palace, Fairmont Hotel, Shilla Hotel, Four Seasons, and Hyatt Regency, among others.

National energy, minerals planning announced

The Ministry of Industry and Trade held a conference in Hanoi on August 9 to announce the national plannings in the fields of energy and mining for the 2021-2030 period with a vision to 2050.

These include one on the infrastructure for the reserve and supply of petrol, oil and gas products; another on the exploration, extraction, processing and use of minerals; and a master planning on energy for the 2021-2030 period with a vision to 2050. They were all approved by the Prime Minister in July, aiming to expand the development room for energy and mining sectors in line with the country’s development direction of green, circular and low-carbon economy, the Party and State’s policy as well as the growth trend in the world.

The national energy master planning’s objectives include ensuring the country's energy security, developing forms of energy in a systematic, suitable and diverse manner, encouraging and creating favourable conditions for all economic sectors to engage in energy development, applying science-technology achievements in energy development, and promoting the efficient use of energy.

It underlined the need for the harmonious and smart infrastructure of all energy sectors to the regional development level, while implementing digital transformation in the field of energy, contributing to realising the net-zero emission goal by 2050. 

Meanwhile, the planning on the infrastructure for the reserve and supply of petrol, oil and gas products aims to develop the infrastructure system for strategic reserve, production reserve, commercial reserve as well as the transport, circulation and distribution of the products to meet economic, technical and environmental standards, ensuring sufficient, safe and uninterrupted reserve and supply of the products for socio-economic development, security and defence.

Under the planning, the total national oil and petroleum reserves, including crude oil and products, is expected to rise to 75-80 days of net imports by 2030 and gradually to 90 days after that year.

The objectives of the planning on the exploration, extraction, processing and use of minerals is to strictly manage, extract, process, economically and effectively use minerals in association with demands for economic development, environmental protection, adaptation to climate change and achievement in carbon neutral level. It also aims to promote investment and establish harmonious and effective extraction and processing industry with advanced technology and modern equipment in conformity with trends of the world.

All of the plannings comprise new mechanisms and policy that are expected to contribute to making breakthrough improvement in energy and mining activities.

They also create a sectoral and regional connectivity in the fields, making the domestic infrastructure design systematic to that in the region and the world, ensuring the effective allocation and use of resources for particular regions and localities in line with the capacity of the economy.

One of the highlights of the plannings is encouraging the engagement of all economic sectors in energy development towards green and circular economic direction.

State budget collection tops 1 quadrillion VND in 7 months

The total revenue to the State budget between January and July exceeded 1.01 quadrillion VND (42.53 billion USD), equaling 62.7% of the yearly estimate and dropping by 7.8% from the same period last year.

According to the Ministry of Finance, of the 63 localities nationwide, eight saw annual increases in their collection revenue, while the 55 others recorded decreases.

Minister Ho Duc Phoc said due to objective reasons, some sources of revenue declined significantly, such as the environmental protection tax on gasoline and oil and revenue from houses and land, which went down by over 38% and 53% year-on-year, respectively.

The official noted the collection work has so far ensured progress to meet the 2023 estimate of more than 1.62 quadrillion VND. However, difficulties are abundant for the remaining part of the year.

The ministry said the total State budget expenditure for the first seven months reached 957 trillion VND, or 46.1% of the estimate, marking a 13.7% increase from the same period in 2022.

Indonesian firms export first batch of Oolong tea to Vietnam

Indonesia’s PT Perkebunan Nusantara (PTPN) Group and PT Suntory Garuda Beverage have kicked off their maiden export of Oolong tea to Vietnam.

This milestone marks the beginning of a strategic collaboration between the two corporations to supply high-quality raw materials for ready-to-drink (RTD) beverages across Asia.

The joint work for the export began in 2021 and underwent various preparation stages, including trials, assessments, and audits. The Oolong tea produced by PTPN Group has met the Indonesian National Standard (SNI) and passed pesticide content assessment with 268 required active ingredients.

In Vietnam, the tea will be utilised by Suntory Pepsico Vietnam Beverage to create ready-to-drink products.

Suntory, a Japanese consumer packaged goods company established in 1923, is renowned for its leading packaged beverage brands such as TEA , Ribena, and Okky Jelly Drink.

PTPN Group manages over 23,000 hectares of tea plantations in Indonesia, with an annual production capacity of 50,000 tonnes or accounting for 40% of the national production.

Supporting industries play a significant role in economic restructuring

Supporting industries play a significant role in the economic restructuring towards industrialisation and modernisation, contributing to enhancing labour productivity, competitive capacity, and value creation, and increasing the contribution of the processing and manufacturing industries to the wider economy.

Deputy Minister of Industry and Trade Đỗ Thắng Hải delivered this statement at the opening ceremony of the 10th Việt Nam-Japan Supporting Industry Exhibition (SIE) in the capital city on Wednesday. 

Recognising the importance of supporting industries, the Government has implemented the Supporting Industry Development Programme which runs until 2025.

Through this programnme support has been provided to Vietnamese enterprises to adopt modern quality standards and management systems and gradually integrate into the global supply chain. It will also increase localisation rates in important manufacturing sectors such as automobiles, textiles, footwear, and electronics.

The State has created favourable conditions for supporting industry firms to  sharpen their competitiveness, Hải said. 

In his speech, Hải also praised the Việt Nam-Japan Supporting Industries Exhibition, saying that it will provide practical opportunities for Vietnamese supporting industry firms to access and learn about new market trends, and technological innovations, and to directly engage with potential partners from Japan and internationally, thus contributing significantly to the strong and sustainable transformation of Việt Nam's supporting industry.

Hosted by the Japan External Trade Organisation (JETRO) Office in Hà Nội and the Ministry of Industry and Trade (MoIT)'s Trade Promotion Agency, this year's edition attracted 50 firms from Việt Nam and Japan. 

Takeo Nakajima, the chief representative of the JETRO Office in Hà Nội said the percentage of domestic procurement in Việt Nam for Japanese companies increased to 37 per cent in 2022 from 28 per cent 10 years ago as per a JETRO survey.  

Despite this growth, it still did not match the economic development pace of both countries, he said. 

Furthermore, among the total localisation rate, the rate of sourcing components from Vietnamese businesses stood at only 15 per cent. This figure was lower than neighbouring countries such as Thailand and Malaysia. Vietnamese enterprises need to make efforts to enhance their supply capabilities to increase the localisation rate, he said. 

He added that this year's exhibition features participation from 22 Japanese companies seeking Vietnamese suppliers and 28 Vietnamese companies aiming to provide for Japanese partners.  The Japanese companies in this exhibition come from various sizes in industries such as motorcycle and automobile parts, industrial machinery, and moulds in Việt Nam.

Through this exhibition, JETRO aims to contribute to the development of the supporting industries in Việt Nam and support Japanese companies in finding suitable suppliers, thereby promoting trade and investment growth between our two countries, in commemoration of the 50th anniversary of Japan-Việt Nam diplomatic relations.

The SIE runs along with the 14th Vietnam Manufacturing Expo (VME), one of the leading exhibitions on machinery and technology for manufacturing. 

Organised by RX Tradex Co, VME is displaying the latest machinery and technologies for manufacturing and supporting industries by 200 brands from 20 leading technology countries including Japan, South Korea, China, Taiwan (China), and Thailand together with the participation of more than 200 international booths and many leading companies in Việt Nam.  

"Việt Nam is gaining a reputation as a top destination of new investment for manufacturing to meet the rapid increase in demand for both export and domestic consumption," said Yip Je Choong, Senior Vice President, Commercial - Asia Pacific, Corporate Management of RELX (Singapore) cum Representative of RX Tradex Vietnam.

"RX believes that exhibition is one of the most critical platforms for international and domestic buyers and sellers to meet and create new business opportunities while helping grow Việt Nam’s capabilities and competitiveness," he said. 

The event will also create business opportunities for both global brands and small and medium-sized enterprises to do business with multinational companies via connecting and supporting activities during show days.

Also, it will be the industry’s connecting hub where over 10,000 industrial part-making factory owners, engineers and industrialists can gather to discover new solutions and partners via special activities offered at exhibitor’s booths, he said.  

The two expos are taking place until Friday at Hanoi International Centre for Exhibition. 

Smart border gate: Promoting Việt Nam-China border economy

Lạng Sơn is continuing to upgrade the digital border gate model, moving towards building a smart border gate.

The smart border gate model is expected to be an effective solution to promoting the clearance of goods across the border, contributing to the socio-economic development of both Việt Nam and China.

In the process of deploying the digital border gate platform - a new and unprecedented model, basically, the implementation of all levels of authorities and functional forces has received the support of the business community.

Phạm Tuấn Hoàng, Deputy General Director of Hữu Nghị Xuân Cương Joint Stock Company, a logistics service provider at Hữu Nghị border gate, said that firms have cut costs by promoting digital transformation while improving the customer experience and enhanced internal management utilities.

"We also wanted to be able to connect with the software of the state management agencies to exchange messages about technology, goods, and people who cross the border in a faster and more convenient way, instead of the traditional, manual way like now", Hoàng said.

Currently, each agency in the border area such as Customs and the Border Guard has management software according to their assigned tasks.

For example, the customs force uses the software of the General Department of Customs; border guard forces use the immigration management software of the Border Guard High Command.

Therefore, the implementation of the digital border gate platform still faces some difficulties in connecting and sharing data between the platforms and the information systems of ministries.

Many also believe there should be a connection between these systems and the digital border gate platform so that there is a seamless, transparent and uniform connection of information, in which agencies in the border gate area will play the role of "cross-monitoring" to minimise lack of transparency in the operations of the forces.

Nguyễn Anh Tài, Deputy Director of the Customs Department of Lạng Sơn Province, said that the digital border gate platform should be managed effectively through the management of user accounts.

Then each account is attached with specific responsibilities as the digital gateway platform is officially applied and issues related to system administration and data management in the gate platform will be solved.

The number of quotas will be guaranteed, meeting the requirements of state management.

The problem here is what functions the digital border gate platform will perform synchronously on the smart customs system, we would continue to review, develop and report to relevant agencies how to formalise, Tài said.

Lạng Sơn Customs will continue to train staff, and arrange the professional chain on how to both operate the smart customs system and operate the digital border gate platform, helping these two systems to support each other and helping customs operations be more transparent and clear, Tài added. 

PetroVietnam meets goal of paying the state budget for 2023

PetroVietnam has paid VNĐ78.31 trillion (over US$3.29 billion) to the State budget over the past seven months, fulfilling its target set for the whole year. 

According to the company, during the period global growth was low, consumer demand was weak while protectionist barriers increased, financial markets fluctuated, and monetary tightening policies were applied in many countries.

In addition, many new challenges emerged in terms of global food security, supply chain disruptions, volatile energy markets, and negative prices and demand. As a highly open economy, Việt Nam was facing dual effects from unfavourable factors.

In that context, the Government made great efforts to implement many solutions to remove difficulties and support the economy. Thus the State continued to be steadfast and did not change the growth target of 2023, although it was extremely challenging for the company to achieve this goal.

As a leading economic and energy corporation in Việt Nam, PetroVietnam has drastically implemented appropriate and timely solutions according to the direction of the market with the top priority given to volatility management, scale expansion, digital transformation acceleration, productivity improvement, and business reinvention. 

As a result, PetroVietnam has maintained stable and highly efficient production and business activities.

Greenhouse gas emissions inventory and reporting manual launched

The State Securities Commission of Việt Nam (SSC) in collaboration with the International Finance Corporation (IFC) held a ceremony in Hà Nội on August 8 to launch a manual on greenhouse gas (GHG) emissions inventory and reporting.

The manual was developed with technical support from the IFC, the Swiss Federal Economic Commission (SECO) and the UK National Standards Agency (BSI) in Vietnam in an attempt to support businesses to make easier GHG emissions inventory and reporting while meeting legal requirements, towards net-zero emissions.

According to SSC Vice Chairman Phạm Hồng Sơn, the book is useful for businesses in implementing legal regulations on information disclosure about sustainable development.

The promotion of green and sustainable finance is a long-term priority of the SSC. The commission has called for active participation of the business community and investors in order to create a sustainable foundation for green growth and sustainable development, he added.

Việt Nam has achieved positive results in building a system of legal documents governing sustainable finance, improving standards of corporate governance and information disclosure associated with the Environmental, Social and Governance (ESG) criteria (a set of standards to measure factors relating to sustainable development and the impact of businesses on the community), capacity building and raising awareness of both regulators and market participants, investors about green financial instruments and sustainable development.

Through training programs on GHG management and reporting, participants learned about the international context, causes and mechanisms of climate change, and sources of greenhouse gas emissions.

They were also guided on issues and contents to be included in the report, as well as the process and way of reporting greenhouse gases according to ISO 14064-1:2018.

ISO 14064-1:2018 specifies principles and requirements at the organisation level for quantification and reporting of greenhouse gas (GHG) emissions and removals. It includes requirements for the design, development, management, reporting and verification of an organisation's GHG inventory. 

ITI Fund invests $1 million in PVA PRO

PVA PRO, a Vietnamese pioneering startup specialising in cutting-edge technology for water-soluble polymer packaging, successfully raised about US$1 million from the ITI Fund. 

The investment, PVA PRO said, has provided the company a significant boost, driving it closer to its mission of revolutionising sustainable packaging solutions. 

Traditional plastics might take centuries to degrade, while biodegradable plastics require specialised facilities to decompose within six to 12 months. The PVA PRO's products, utilising Polyvinyl alcohol (PVA) compounds, astoundingly dissolve in warm water within 30-60 minutes. 

PVA has been used in many applications including laundry detergent pods and medicine wrappers, but its inherent cloudiness and quick dissolution in cold water have limited its suitability for packaging. 

In contrast, PVA PRO has ingeniously overcome these challenges by creating thin and transparent packaging that only rapidly dissolves upon exposure to warm water. This breakthrough dramatically broadens its potential applications across diverse industries. 

Co-founder Thái Như Hằng revealed the team's ambitious vision to apply PVA PRO solutions into various sectors, such as retail and FMCG, building on their success in delivering eco-friendly bags for the garment and fashion industry. 

Established in 2021, PVA PRO's packaging solution not only maintains the flexibility of traditional plastics but also serves a diverse range of applications without producing microplastics or posing harm to animals and the natural ecosystem. 

According to the Vietnam Ministry of Natural Resources and Environment, Việt Nam discharges about 1.8 million tonnes of plastic waste each year while this number reaches 300 million tonnes globally (according to the United Nations). 

Đặng Thị Kiều Mỹ, ITI Fund's Director, emphasised the growing trend among major brands towards prioritising sustainability. This crucial element enables PVA PRO to realise its full potential and offer high-quality, environmentally friendly products to conscious consumers.

Support crafted to simplify and unify business prospects

The government will continue offering more favourable monetary and fiscal policies for production and business activities.

Prime Minister Pham Minh Chinh last week required the State Bank of Vietnam (SBV) to continue implementing a proactive and flexible monetary policy.

“The SBV must continue to reduce lending rates and increase credits in line with the real developments of the market, while boosting money supply into the economy when necessary. The credits must be focused into growth momentum including investment, consumption, and export,” PM Chinh stated.

In mid-July, PM Chinh also enacted Resolution No.105/NQ-CP on removing difficulties for enterprises, including stress laid on boosting administrative reform. Resolution 105 states that the SBV must specify a credit growth rate of at least 13-15 per cent for the whole of 2023.

“How to increase credits must be announced immediately via proper measures, with specific quota for credit growth for commercial banks until late 2023,” the resolution stated. “Sufficient capital must be provided for the economy, with due attention paid to credits for property and for production and business activities in order to support the market and unleash investment capital flows for the economy.”

The SBV will in August propose a credit package worth VND10 trillion ($416.6 million) for businesses specialised in processing fishery and aquatic products, and other types of credit packages. Also this month, the government will enact a decision on reducing 30 per cent of land rental for 2023.

“We will also revise and remove business conditions currently stipulated in specialised laws if such conditions are found illegal, unnecessary, infeasible, and unclear. Moreover, the government will also review and revise all kinds of practising certificates in order to reduce their number and save costs for the society,” PM Chinh stated at last week’s government meeting on the national socioeconomic situation.

The government will also unify, merge, and simplify legal documents in a manner that it will be easy to understand and access, fully ensuring transparency.

“All costs for enterprises must be reduced and saved, with businesses’ ability to access to capital and the market to be increased. All efforts are to be made to quickly recover production and business activities and achieve the highest results in economic growth,” PM Chinh stated.

The government has directed the General Department of Vietnam Customs to coordinate with authorities at all levels in simplifying the current administrative processes or consider applying priority import and export processes to help businesses optimise time and costs, and speed up the import process and procedures for essential commodities and accelerate the export of agricultural products and key export commodity groups.

National Assembly deputy Pham Trong Nghia, representing the northern province of Lang Son, said “In order to formulate exact solutions for enterprises, it is necessary to thoroughly review and study all challenges at home and abroad, with consultancy from all stakeholders.”

In late June, the government enacted Decree No.44/2023/ND-CP on VAT reduction until the end of the year, from 10 to 8 per cent for all types of goods and services.

Specifically, the VAT reduction policy will help businesses reduce 20 per cent of the percentage for tax calculation when issuing value-added invoices, for goods and services currently subject to the 10 per cent tax rate.

What is more, the government has also applied a reduction of the collection rate of 35 fees and charges from July 1 to December 31, equivalent to a decrease in revenue of VND700 billion ($29.1 million) in the state budget in order to support businesses and individuals.

In April, the government promulgated Decree No.12/2023/ND-CP on extending the deadline for paying VAT, corporate income tax (CIT), and personal income tax.

The decree stipulates a six-month extension for VAT amounts from March-May 2023 and Q1; five months’ extension for June and Q2; four months’ extension for July 2023; and a three-month extension for August.

When it comes to CIT, the decree stipulated that payment of this type of tax would be extended for the temporarily paid sum for Q1 and Q2 of the tax calculation period in 2023. Specifically, the time for payment extension will be three months as from the date of ending the payment time under the tax management law.

It is estimated that the value of the CIT payment extension will be around $1.86-1.9 billion.

Wistron injects additional $24.5 million into Vietnam

The Board of Directors at Wistron – an Apple partner – has recently greenlit a plan to inject an additional $24.5 million into its manufacturing site in Vietnam.
 
On August 4, Wistron Corporation held a meeting of its Board of Directors, announcing the financial results for the first half of 2023. Following the meeting, the company approved a capital injection proposal of $24.5 million in a newly established subsidiary, Wistron Technology (Vietnam) Co., Ltd.

The expansion of its manufacturing scale in Vietnam is part of Wistron's plans to enhance the resilience of its supply chain and respond to customer needs. It had previously invested about $300 million into its Vietnamese operations.

The Taiwanese company started the establishment of its manufacturing base in Vietnam in 2019. In 2020, its Vietnamese subsidiary, Wistron Infocomm Co., Ltd., received an investment certificate to develop a high-tech electronics product factory in Dong Van III Industrial Zone in northern Vietnam.

Earlier it was reported that Wistron is preparing to wind down its operations in India after a successful business stint spanning over fifteen years. Tata Group is close to signing an agreement with Wistron to acquire its factory there. In 2020, Wistron also stopped iPhone assembly in China after selling its manufacturing unit to Luxshare.

In the first half of 2023, Wistron recorded a total revenue of $13.2 billion, operating income of $318.2 million, profit before tax of $277.2 million, and profit after tax of $108 million.

Plans manifest to balance GMT impact

Appropriate and sturdy policies relating to the upcoming implementation of a global minimum tax could ensure that Vietnam quickly recovers foreign investment attraction.

According to the Ministry of Planning and Investment (MPI), the application of the global minimum tax (GMT) at 15 per cent will make a direct impact on the country’s scheme to draw in investments by large-scale global corporations.

In order to address this, the ministry has proposed pilot support policies in terms of training skilled human resources and research and development (R&D) for foreign-invested enterprises (FIEs) that are investing in the production of technology and high-tech products at a total of VND12 trillion ($510 million) or revenues of more than VND20 trillion ($851 million) per year; and investing in R&D projects worth over VND3 trillion ($128 million).

This assistance will be deducted from the tax obligations of FIEs or paid directly by contributions deducted from the state budget, in the way that several other countries in the region are applying.

Nguyen Duc Do, deputy director of the Institute of Economics-Finance at the Academy of Finance, commented that the incentives for every FIE should be considered carefully by the Ministry of Finance.

“When taxes are no longer favourable, switching to monetary incentives is also reasonable and quite common worldwide,” Do said.

Do added that the Organisation for Economic Co-operation and Development – which initiated the GMT regime, applied on corporations and large companies with a total income of $820 million or more – does not prohibit cash assistance.

“However, the assessment of risks needs to be considered and calculated carefully. Vietnam can both do and learn from other countries because this is one of the competitive factors in attracting foreign direct investment (FDI),” Do said.

“In the past, Vietnam has offered favourable taxes to mobilise investment, but numerous enterprises have been reporting losses for many years, even up to 20 years, so tax incentives do not make any sense,” he added.

The application of the GMT from 2024 will not only help Vietnam increase state budget revenue from additional tax revenue, but also reduce tax evasion, tax avoidance, transfer pricing, and profit transfer.

Daniel Borer, who is an economics lecturer at RMIT University Vietnam, said the GMT scheme could discourage investments in low-tax jurisdictions, like Vietnam, as the tax advantages would be diminished.

On the other hand, it may encourage funding in countries with robust infrastructure, skilled labour, and attractive non-tax factors, as tax considerations would be less dominant.

“Vietnam should streamline administrative procedures. This will help draw in more foreign investors. This can be achieved through the implementation of increased digitalisation and enhanced transparency,” Borer said.

“Vietnam furthermore would need to ensure both transparency and accountability in its investment policies and practices. The Vietnamese government can achieve this by establishing clear and consistent rules and regulations, then enforcing them fairly and consistently,” he added.

Economist Vo Tri Thanh said that Vietnam still has considerable ability to attract FDI.

“However, it is still necessary for leaders to pay wider attention to various issues including clean land, high-quality human resources, and incentives that in line with international practices,” Thanh said.

According to the MPI’s Foreign Investment Agency, in July, FDI inflows increased by 9 per cent on-year, and in the first seven months of the year, it was 4.5 per cent higher than the same period last year.

Around $7.84 billion in newly registered FDI reported a rise of 38 per cent on-year, while $4.14 billion in capital contributions and share purchases saw an increase of approximately 60 per cent on-year.

PM urges completion of HCMC’s first metro line by 2024

Prime Minister Pham Minh Chinh has called on HCMC authorities to speed up work on Metro Line No. 1 so that it can commence commercial service in early 2024.

During the sixth meeting of the steering committee for State management of key national projects, Chinh said relevant agencies must work harder to remove all hindrances to the progress of urban railway projects across the country.

The Nhon-Hanoi Station metro line was originally scheduled for completion by the end of this year, while Metro Line No. 1 in HCMC, also known as the Ben Thanh-Suoi Tien urban rail line, is planned to be up and running early next year.

Chinh urged local authorities to pool all available resources and streamline investment procedures for the construction of more urban railways in both HCMC and Hanoi, the country’s two biggest cities.

With a total length of 19.7 kilometers, Metro Line No. 1 connects the landmark Ben Thanh Market in District 1 and Suoi Tien Theme Park in Thu Duc City, and has three underground stations and 11 elevated stations.

The project, which started construction in 2007, requires a total of VND43.7 trillion, of which VND38.3 trillion lent by the Japan International Cooperation Agency (JICA) and the remainder coming from the Vietnamese side.

Currently, the rail line is 95.75% complete.

The Management Authority for Urban Railways (MAUR) of HCMC plans to test-operate the entire line in the fourth quarter of this year. But a news report posted on Lao Dong newspaper early this month said Japanese contractor Hitachi had yet to provide personnel training, do maintenance work and coordinate with the local side to do railway safety review and certification.

Binh Duong hosts WTCA Asia Pacific Regional Meeting

The 2023 Asia Pacific Regional Meeting of the World Trade Centres Association (WTCA) opened in the southern province of Binh Duong on August 10 under the theme of “Transforming WTC operations in the digital age”.

In his opening remarks, Chairman of the provincial People’s Committee Vo Van Minh said that participating in the WTC playground to improve the integration of the economy and the opening of a WTC in Binh Duong New City, invested by Becamex IDC, has contributed to the development of a new service ecosystem closely linked to the province's smart city development strategy.

After four years of establishment and development, the WTC Binh Duong New City has shaped itself to become a new destination, and a centre connecting domestic and foreign trade through events with many topics such as smart city development, science and technology, innovation, and global digital transformation.

Minh said he expected to find important breakthrough solutions, contributing to the development of an increasingly dynamic economy, meeting international integration requirements, effectively serving the process of industrialisation and modernisation, and successfully realising the goal of developing Binh Duong into a smart city to bring a better life to people.

Appreciating Binh Duong’s organisation of the 2023 WTCA Asia Pacific Regional Meeting, Crystal Edn, Executive Director-Member Services for the WTCA, said that the meeting will help promote the sharing and learning of knowledge and experiences from experts, scientists, speakers and businesses from many countries.

The two-day meeting includes discussion sessions on business opportunities in Binh Duong and Vietnam, and investment and trade connections between WTCA members in Asia and with domestic and foreign partners.

A session on service industries that are developing rapidly in Binh Duong province, such as exhibition, real estate, and trade – service is expected to take place within the framework of the meeting.

Workshop looks to assist enterprises export via e-commerce

The Vietnam E-commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade (MoIT), in coordination with Amazon Global Selling Vietnam and Hanoi's Department of Industry and Trade, on August 10 organised a workshop to discuss measures to support local enterprises export through e-commerce.

The event aimed to enable Hanoi’s enterprises and businessmen to grasp the necessary knowledge and skills in a systematic manner with information updated by Amazon Global Selling Vietnam and the MoIT, contributing to bringing Vietnamese wooden products, handicrafts and textile products to the global market through cross-border e-commerce.

Addressing the workshop, Nguyen Van Thanh, Director of the iDEA's E-Commerce Development Centre, said that cross-border e-commerce is a trend that is prevailing in many countries around the world.

In Vietnam, this is also a field that is assessed to have great potential and is in line with the digital economy development policy set by the Government, he said.

Thanh held that with a growth rate of 20% per year, Vietnam is ranked among the top five countries with the world's leading e-commerce growth rate, adding that the export value of Vietnamese businesses selling on Amazon increased by over 45% in 2022.

According to Thanh, over the past time, the iDEA is promoting the implementation of projects to support Vietnamese importers and exporters to participate in e-commerce by offering opportunities for them on vietnamexport.com portal and providing a platform through the ecvn.com and ifair.vn ecosystems.

The agency has also collaborated with Amazon Global Selling to implement the "Cross-Border E-Commerce: The Breakthrough Era" initiative with the goal of supporting cross-border e-commerce personnel for 10,000 businesses in the 2022-2026 period, thereby improving capacity and opening up export opportunities for local businesses through e-commerce.

Do Hong Hanh, strategic partner director of Amazon Global Selling Vietnam, said some Vietnamese goods are favoured on Amazon such as home decorations; blankets, bed sheets and kitchen tools.

However, to conquer customers on Amazon, it is necessary for enterprises to focus on strong products that are suitable for international tastes, especially those deriving from nature combined with the sophisticated skills and ingenuity of artisans, she said.

First Vietnam Int'l Logistics Exhibition kicks off

The Vietnam International Logistics Exhibition (VILOG) 2023, the first of its kind, opened in Ho Chi Minh City on August 10.

Featuring 345 booths by 250 firms from 22 countries and territories, it is showcasing products, services, and latest technologies in the fields of transport and forwarding, services and warehouse systems, packaging and cold chains, and logistics IT.

Le Duy Hiep, President of the Vietnam Logistics Business Association (VLA), stated that VILOG 2023 brings about opportunities for connecting and supporting the business community to push for investment and partnerships through B2B sessions. The organising board is also hosting a series of thematic workshops and conferences focusing on urgent issues and the latest trends, ranging from IoT smart technology, customs regulations, export-import competitiveness to cross-border e-commerce, human resources training, and the Buy-Ship-Pay model in agricultural exports.

Tran Thanh Hai, Deputy Director of the Import-Export Department at the Ministry of Industry and Trade (MoIT), said the 3-day expo is attracting the participation of logistics service, equipment, and solution providers, creating favourable conditions for Vietnamese enterprises to access international solutions and markets.

Hai Phong, China's Hainan share experience in seaport, logistics management

The Management Board of Hai Phong Economic Zone Authority (HEZA) held a working session with a delegation from Danzhou city, the Chinese province of Hainan on August 10.

Head of the board Le Trung Kien briefed the guests about the overview of Hai Phong, highlighting that the city possesses all five major transportation modes - road, sea, rail, inland waterway, and air. The northern port city is one of the three important economic growth poles in the northern key economic region.

Hai Phong is also aiming toward a free trade zone model that is closely integrated with the development of a modern logistics service hub in the city, especially amid the new context, he said, adding that the city is expanding 15 industrial parks (IPs) on a site of 6,418ha and 23 industrial clusters spanning a total area of 973 ha. The goal is to add an additional 15 IPs and 23 industrial clusters meeting modern standards by 2025.

In the first half of this year, the total foreign direct investment in the city hit 1.98 billion USD, or 165% compared to the same period last year, achieving 99% of the annual plan. Cumulatively, there are 872 active foreign-invested projects worth 26.15 billion USD at present. Among them, 146 projects come from China with a total registered capital of approximately 1.1 billion USD.

Among the 42 countries and territories investing in the city, China ranks third in terms of the number of projects and sixth in value.

Hai Phong always creates the most favourable conditions and wishes to receive support and bilateral cooperation from partners and investors, Kien said.

Zou Guang, Secretary of the Danzhou Party Committee and head of the delegation, wishes to learn from experience in managing seaports, logistics. He also talked about the Free Trade Zone in Hainan and proposed several bilateral cooperation contents.

First Vietnam International logistics expo kicks off in Ho Chi Minh City

The debut version of the Vietnam International Logistics Exhibition (VILOG) 2023 opened on August 10 at the Saigon Exhibition & Convention Center (SECC) in Ho Chi Minh City.

Organised by the Vietnam Logistics Business Association (VLA) and the Vietnam National Trade Fair and Advertising Company (Vinexad), the event has brought together leading names in the sector from around the world who come to exchange and catch up with the latest trends in the field.

They include Nippon Express, UPR, AWOT Global, Sai Gon Newport, Viconship, VinaTech, AFR Solutions, AHAMOVE, SAMSUNG SDS - 4PL, and ECOTRUCK.

The exhibition features 345 booths of 250 businesses from 22 countries and territories, aiming to affirm the country’s position on the international logistics map.

According to Le Duy Hiep, chairman of the Vietnam Logistics Business Association (VLA), within the framework of VILOG 2023 a range of  essential B2B activities will take place, along with a series of specialised conferences on interesting topics such as "Exporting agricultural products online by model Buy-Ship-Pay", "Cold chain", and the seminar "Customs accompanies enterprises to develop logistics activities and improve export competitiveness".

Tran Thanh Hai, deputy director of the Import-Export Department at the Ministry of Industry and Trade, said currently logistics enterprises boast huge advantages as manufacturing and trade activities both at home and aboard have recorded an upward trend in recent times.

Besides, the participation of foreign logistics service providers can help local firms in the industry to enjoy better access to international solutions and markets, he noted.

The event therefore represents a great opportunity for domestic and international logistics service businesses, as well as investors, developers, and other stakeholders to co-operate, consult, and identify solutions to optimise the procedures of enterprises, Hai concluded.

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