At yesterday's conference, it was revealed that Mekong Delta’s export turnover in 6 months reached over US$10 billion.

The Central Committee for Emulation - Commendation and the Emulation Cluster of the Mekong Delta region held a conference to review the implementation of the emulation agreement in the first 6 months of 2023.

The GRDP economic growth rates of all provinces in the first 6 months of 2023 were reported to have a year-on-year increase of 5.65 percent. Amongst provinces in the region, Hau Giang is the province with the highest GRDP growth rate in the country with over 14 percent, the highest level since the province's establishment. Moreover, the region's total budget revenue in the first 6 months of 2023 reached at 56.5 percent.

Speaking at the conference, First Secretary of the Central Committee of the Ho Chi Minh Communist Youth Union Bui Quang Huy suggested that from now to the end of 2023, Mekong Delta provinces should take heed of socio-economic development, striving to fulfill and exceed the set targets.

Dong Nai Province devises plan to effectively exploit public land

Dong Nai Province People’s Committee has just had a working session with its Land Resource Development Center about the assigned land under the Center’s management. 

Until the end of July 2023, the Dong Nai Province Center for Land Resource Development is responsible for 199 land lots with a total surface area of 20,800ha, mostly sited in Bien Hoa City, Long Thanh District, and Trang Bom District. Some lots are encroached, still under dispute, or with expired lease contract but slow to hand over.

At present, 40 pieces are under valid short-term lease contract, yet price-related trouble since 2020 has prevented land rent from being collected.

For the last two years, no land lots have been auctioned. It is expected that by 2025, 35 pieces will have gone through this process.

Vice Chairman of Dong Nai Province People’s Committee Vo Van Phi asked that the provincial Center for Land Resource Development strictly control the assigned land lots and prepare a plan to effectively exploit them.

Any lots needed by localities for socio-economic projects should be reported to the provincial People’s Committee along with proper consultation so that the Committee can consider handing over to those localities. These premises will then be leased for a short term, be auctioned to generate more revenues for the provincial budget.

Total pre-tax profit of Top 25 largest listed banks decreases 3.1%

Total pre-tax profit of the top 25 largest listed banks in the second quarter of 2023 reached about 61.6 trillion VND (2.6 billion USD), down 3.1% over the same period last year, according to a report of VNDirect Securities Company.

In the report, VNDirect said the ratio of net interest income (NIM) of the banks in the second quarter of 2023 decreased by 0.32 percentage points year-on-year to 3.41%.

Nineteen out of 25 banks recorded a high decrease in NIM in the second quarter of 2023. In the group of medium and large banks, only Sacombank, VIB and VietinBank maintained a higher NIM compared to the same period last year. Specifically, VIB and VietinBank succeeded in taking advantage of interbank capital (with a sharp decrease in the second quarter of 2023) when the ratio of interbank capital to total capital of VIB and VietinBank increased by 4% and 4.9%, respectively, over the same period last year.

According to VNDirect, Sacombank's NIM improves strongly in 2023 when there is no longer pressure on accrued interest. Meanwhile, NIMs of VPBank, Techcombank, LPBank and TPBank continue to decline the most as the corporate bond and real estate markets still faced difficulties in liquidity.

The current account savings account (CASA) ratio of the entire banking industry showed an improvement from 17.6% at the end of the first quarter of 2023 to 18.2% at the end of the second quarter of 2023 when the deposit interest rate decreased continuously following the central bank’s four policy interest rate cuts.

VnDirect expects the cost of capital to fall more sharply when the third and fourth rate cut at the end of the second quarter of 2023 will take full effect from the second half of 2023 onwards. However, VNDirect’s analysts do not expect an immediate improvement in banks’ NIM as interest rate cuts remain the top priority to boost economic activity.

For the second half of this year, the analysts expect some banks such as MB and VIB, which have high personal loan ratios, low loan to deposit (LDRs) and low foreign currency capital to total capital, will have more opportunities to improve NIM compared to the remaining banks.

Under the report, VnDirect said at the end of the second quarter of 2023, the credit of the whole banking system increased by 4.7% compared to the beginning of this year. The rise was lower than the growth rate of 9.4% at the end of the second quarter of 2022, but significantly increased from 3.17% at the end of May 2023.

In the second quarter of 2023, banks, which had a high lending ratio to the real estate industry, such as Techcombank and HDBank showed slow credit growth when the real estate market was still in a difficult period. Meanwhile, banks, which had a high ratio of retail lending, achieved impressive credit growth in the second quarter of 2023. It showed slight signs of recovery from consumer demand.

In the second half of this year, VNDirect expects banks, which have a high ratio of retail lending, such as VIB and ACB will have many opportunities to improve credit growth as Vietnam is gradually moving into the initial recovery phase. In contrast, banks, which have a high ratio of real estate loans, may find it difficult to extend credit when Circular 06/2023 (effective from September 2023) will limit the ability to access capital of firms.

Lending rate forecast to drop sharply in H2 2023

Lending interest rates will drop sharply in the second half of 2023 as capital costs of commercial banks are falling, analysts forecast.

In a recent report, VnDirect’s analysts said they believe lower lending rates will be the factor that promotes the recovery of consumption and private investment in the coming quarters.

According to VnDirect’s analysts, the capital cost of banks is reducing thanks to the impact of the State Bank of Vietnam (SBV)'s four policy interest rate cuts since the beginning of this year and the issuance of Circular No. 02/2023 that allows extending the provision for bad debts.

According to VnDirect's statistics, at the end of July 2023, the 12-month deposit interest rate of State-owned banks dropped to 6.3 per cent per year, down 1.1 percentage points compared to the beginning of the year.

Meanwhile, 12-month deposit interest rates of private banks range from 6.3 per cent to 7.0 per cent per year and average at about 6.7 per cent per year, down nearly 1.6 percentage points compared to with the beginning of the year. In the group of private banks, deposit interest rates decrease most significantly by 0.3-0.7 per cent per year in some banks such as VIB, TPBank, LPBank, Sacombank, SeABank, VPBank, SHB and OCB.

VnDirect forecast the average deposit interest rate for 12-month term will decrease to 6.0-6.2 per cent per year in the second half of 2023 due to the impact of four policy interest rate cuts of the SBV and slow credit growth in the first half of 2023. Besides, the Government will further promote public investment, thereby injecting more money into the economy, while the SBV still has room to loosen monetary policy.

The SBV has continuously asked credit institutions to minimise costs and stabilise lending interest rates to support business recovery and development.

The central bank set this year’s credit growth target for banks at 11 per cent, but total outstanding loans in the economy increased by only 3.36 per cent as of June 15 compared to the end of 2022, the lowest level for the past ten years. 

Vietnam’s economic growth slows due to global headwinds and internal constraints

A challenging external environment and weaker domestic demand is leading to a slowdown in economic growth in Vietnam, but the economy will pick up pace in the second half of 2023 and the following years, the World Bank said in an economic update released on August 10.

“Making Public Investment Work for Growth” shows that Vietnam’s economic growth nosedived from 8% in 2022 to just 3.7% in the first half of 2023. It forecasts a moderate growth of 4.7% for the whole of 2023, before gradually accelerating to 5.5% in 2024 and 6.0% in 2025.

The financial institution says a proactive fiscal policy supporting short-term demand, removing barriers to the implementation of public investment, and addressing infrastructure constraints can help the economy achieve these targets and promote long-term growth.

“Vietnam’s economy is being tested by internal and external factors. To boost economic growth, the government can support aggregate demand through effective public investments, thereby creating jobs, and stimulating economic activity,” said Carolyn Turk, World Bank Country Director for Vietnam.

“Beyond short-term support measures, the government should not lose sight of structural institutional reforms – including in the energy and banking sectors – as they are imperative for long-term growth,” added Turk.

The report suggests policy options to get the economy back on track. Effectively implementing the 2023 investment budget can stimulate aggregate demand and economic growth.

On exports, it suggests diversifying product offerings and export destinations to build medium-term resilience against external shocks.  At the same time, fiscal policy can play a stronger role in incentivizing green practices and consumption, ultimately contributing to environmental sustainability.

The report’s special chapter studies Vietnam’s public investment management and how it can contribute to the goal of climbing the income ladder. To harness the power of public investment, the report recommends that Vietnam sustain its level of investment, improve the quality of the proposed project, and address deficiencies in public investment management and inter-governmental fiscal institutions.

Firms advised to study partners before trading in Latin America

Trade Counselor in Mexico and Panama Luu Van Khang has advised Vietnamese businesses to carefully study their partners, following a range of trade frauds in Latin America in which firms from the Southeast Asian nation were victimised.      

The official said language barriers make Vietnamese businesses more vulnerable to scams, adding that most of the criminals use bank accounts in a third country to hinder investigations by competent agencies.

Khang recommended Vietnamese enterprises to sign contracts with legally authorised representatives of their partners, and use the L/C (letter of credit) payment method instead of T/T (telegraphic transfer).

If they have no choice except to use the T/T method, they should not transfer money to bank accounts in a third country or personal accounts, he added.  

Apart from coordinating with the Vietnamese Trade Office in information verification, they should cooperate with law firms and business associations in Mexico in particular and Latin America in general to diversify the sources of information, Khang said.

As members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam and Mexico have great opportunities to boost their trade ties.

Mexico has committed to eliminating 77% of tariff lines from January 14, 2018, and 98% after a decade since the coming into force of the agreement. As a result, Vietnam's exports such as seafood, coffee, rubber, phones, and auto components to Mexico have recently experienced significant growth, ranging from 27% to 65%.

Mexico has also gradually increased its export of beef, pork, agricultural products, and beverages to the Southeast Asian nation.

Tourism industry well prepared to receive foreign visitors during peak season

The Government has requested that the Ministry of Culture, Sports and Tourism to be well prepared to receive foreign holidaymakers during peak season starting in September.

In a recently issued resolution, the government asked the ministry to step up communications regarding Vietnam’s new visa policy in international tourist markets. A primary focus is on tourism promotion activities in key international markets such as China, the Republic of Korea, India, and the United Kingdom.

Tourism promotion activities must be carried out in a more methodical and effective manner, the government said in the resolution.

The National Assembly of Vietnam recently approved legislation allowing foreign visitors to extend their –e-visa validity to 90 days as opposed to the current period of 30 days.

During their approved duration, foreigners will be able to enter and exit the nation multiple times, without having to go through new visa procedures.

Foreigners who are subject to visa exemption will duly be granted a temporary residence certificate at international border gates which will be valid for 45 days, as opposed to the current period of 15 days. In addition, they will be considered for visa issuance and temporary residence extension according to regulations.

The new visa policy, due to come into force on August 15, 2023, is anticipated to provide fresh impetus for the tourism industry when the peak international tourism season arrives at the end of the year.

This is a good opportunity for businesses to re-design tourism products with a longer stay, a richer and more attractive schedule to attract visitors from markets with higher affordability, as well as building a more ‘long-term’ business plan.

Vietnam welcomed more than 6.6 million foreign arrivals in the first seven months of this year, meeting 82.5% of the yearly plan. As the peak international tourism season is drawing near, with the new e-visa policy to be put in place the tourism industry is likely to receive up to 10 million foreign visitors this year, beating the 8-million set target.  

VinFast plans its Nasdaq listing on August 15

Vietnamese electric vehicle maker VinFast is scheduled to list its share on the Nasdaq Global Select Market on August 15 after its partner Black Spade Acquisition Co. adopted the business combination plan at a special shareholders’ meeting on August 10.

The business combination is expected to be completed on August 14, and the listing of the shares VFS and VFSWW will go public the following day.

Today’s voting results show the trust Black Spade shareholders place in VinFast, said Le Thi Thu Thuy, Global CEO of VinFast.

Dennis Tam, chairman and Co-CEO of Black Spade Acquisition Co noted that shareholders approved the business combination demonstrates their confidence in the vision and potential of the relationship between Black Spade and VinFast.

In May 2023 VinFast and Black Spade entered into a business combination agreement to prepare for VinFast's initial public offering (IPO) in the US stock market.  

If the listing is successful, the special purpose acquisition companies (SPAC) merger would cap VinFast’s years-long efforts to become a publicly traded company.

Bloomberg News reported in early 2021 that VinFast’s parent company Vingroup JSC was considering a US$2 billion US IPO for the leading EV maker. The company decided to abandon its IPO plan and agreed to the SPAC deal instead.

VinFast’s profile is now available on the Nasdaq website. The carmaker aims to be a leader in the future of Smart Mobility through its intelligent, thoughtful and inclusive EV platform. It desires to foster a cleaner and more sustainable approach to 21st century mobility that is evolutionary and revolutionary.

Its all-electric sports utility vehicles (SUVs) have been delivered to customers in Vietnam and North America. Customers in Europe are expected to receive VinFast cars soon.

VinFast’s EV models that have been handed over in the Vietnamese market include VF e34, VF 8, VF 9 and VF 5. In early 2023, the company shipped the first two batches of VF 8s to North America. Most recently, the EV maker started construction of an electric vehicle factory in North Carolina (USA).

Ministry proposes support for electric car buyers

The Ministry of Transport has just proposed support policies to encourage the sale electric cars.

According to the proposal, buyers of electric cars will be given USD1,000 in cash, and get a reduction or exemption on registration and licensing fees.

The ministry also asked for electric vehicles to receive benefits in urban areas, especially in parking zones.

It also proposed to give preferential tax policies to investors in electric vehicle assembling and electric vehicle battery manufacturing.

Charging stations should also be widely developed in public places and residential areas.

Domestically produced or assembled electric cars of nine seats or less should be given a special consumption tax of 3 percent from February 28, 2027, the proposal suggested. They would also enjoy a Value Added Tax (VAT) exemption in the first five years beginning March 1, 2022 and a VAT cut of 50 percent for the next five years.

Statistics from the ministry showed that the number of electric vehicles made, assembled or imported into Vietnam increased 75-fold in the past two years, from 167 vehicles in 2021 to 12,585 as of July 2023, most of them electric cars and buses.

A Chinese electric car company, Zhidou, recently revealed their plans to begin selling its mini electric A01 car model for VND100 million (USD4,260) in Vietnam.

Zhidou displayed its A01 mini electric car at the 2023 Autotech & Accessories Exhibition held in HCM City in May. The model is designed for urban driving.

Zhidou said that they would partner with a Vietnamese company to assemble the car in the country, and its logo and brand name would be localised for Vietnam.

HCMC Party Committee agrees to research project of Can Gio transshipment port

The Standing Board of the HCMC Party Committee basically agreed to the report and proposal of the Party organization of the municipal People’s Committee on the research project of construction of the Can Gio international transshipment port.

The Standing Board of the HCMC Party Committee delegated the Party organization of the municipal People’s Committee to direct the People’s Committee of the city, departments, and relevant units to carefully examine and collect opinions from the members of the Standing Board of the HCMC Party Committee to complete the project.

The competent sectors must ensure the project that is consistent with the planning and orientation of the Party Central Committee and HCMC, contributing to promoting economic efficiency and sustainable development. In addition, the project must pay attention to investment and synchronous development of transport infrastructure, technical infrastructure, and infrastructure of port services, and lessen impacts on the environment and people’s lives.

On July 18, PM Pham Minh Chinh made a field trip to the Can Gio international container transshipment port.

He asked HCMC to cooperate with relevant agencies to step up the study process and work with investors to accelerate project execution.

The PM emphasized that Can Gio international transshipment port has the ability to attract international transshipment of goods and compete with large ports in Singapore, Malaysia, and others in the region, and coordinate with Cai Mep – Thi Vai port to develop its strength.

Can Gio International Container Terminal is located on Phu Loi Isle in Thanh An Commune of Can Gio District in HCMC, nearby the buffer zones with an area of 93 hectares of the Can Gio Biosphere Reserve, and surrounded by Thi Vai and Theu rivers. However, the project will not penetrate the boundary of the biosphere.

Taking advantage of Can Gio located in the Cai Mep-Thi Vai marine fairway with bustling water transportation activities, the seaport covering an area of 570 hectares would be capable of receiving container ships of up to 250,000 DWT or 24,000 TEUs. The project built at a total investment capital of US$5.4 billion is divided into seven phases and expected to be finished in 2045. The first phase will be complete in 2027.

More firms selected for Green Enterprises award

The organizing committee of the Green Enterprises award will receive more participants.

At yesterday’s meeting of the Program Appraisal Council of the Green Enterprise award, Deputy Editor-in-Chief of SGGP Newspaper cum Head of the program organizing committee Pham Van Truong said the council members agreed to select more firms for the award.

Accordingly, in addition to selecting manufacturing enterprises, the organizing committee will receive and consider awarding the title of Green Enterprise to enterprises operating in the fields of business, services, commerce and real estate.

The council recommended that businesses registering for the award need to meet the following criteria including treating all wastewater generated during production activities up to environmental standards; handling dust, exhaust gas, bad smell and sound to meet environmental standards; collecting and treating industrial and hazardous solid waste or signing contracts sanitation companies to collect garbage. Moreover, entrants to the award selection program must adopt technological solutions to save energy or use renewable energy.

The organizers will have a set of appropriate criteria for a specific field of activities.

Earlier, at the announcement ceremony of the program to select and award the title of Green Enterprise, Mr. Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association, said that the selection of the award aims to honor and reward enterprises to comply with regulations on waste treatment in the process of production and business.

Moreover, the award also encourages firms to carry out research and production of environmentally friendly products in a bid to strengthen enterprises’ responsibility for protecting the environment with the orientation to support businesses to improve their competitiveness and integration into the international economy.

The program to select and award the title of Green Enterprise is organized by SGGP newspaper in collaboration with the Ho Chi Minh City Business Association and periodically awards the title in September every year.

Banks offer favorable loans, cut rates for existing borrowers

The last two quarters of the year are the time when production, business activities, and consumer demand typically see an uptick. As a result, commercial banks are actively introducing interest rate incentive programs to boost credit demand.

To stimulate business operations and consumer spending, Sacombank has recently launched a credit program worth VND30 trillion aimed at individual customers. Out of this total, VND20 trillion is designated for supporting short-term business activities, including agricultural production, offering an interest rate starting from 7.5 percent per annum. The remaining VND10 trillion is set aside for loans to assist in property acquisition, construction, refurbishment, and diverse consumer requirements at an interest rate of 9 percent per annum.

Particularly for customers making their inaugural home purchase for a personal residence, upon meeting the stipulated requirements, they will qualify for a reduced interest rate of just 8 percent per annum. Sacombank has confirmed that the repayment term for this credit package offers flexibility and may extend up to a maximum of 30 years.

MSB has introduced a special short-term collateralized loan package amounting to VND20 billion, tailored for household businesses preparing for year-end operations and requiring capital infusion. In line with this, customers seeking short-term business loans backed by secured assets will qualify for a competitive interest rate of 9.5 percent per annum. Notably, both new and existing customers who are presently utilizing unsecured loans with MSB and are in need of supplementary capital for business operations will have the advantage of a preferential interest rate of 8.99 percent per annum.

Furthermore, MSB offers personalized financial solutions to entrepreneurs through an integrated unsecured business loan package, extending credit limits of up to VND1.5 billion. The application process is streamlined, requiring only a single set of documents.

Likewise, BVBank is rolling out a consumer demand-boosting loan package worth VND7 trillion, available until December 31, 2023. This package features enticingly low interest rates, starting at 8.8 percent per annum, reducing up to 2 percent per year to facilitate customer access to lending capital.

It is not only private commercial banks but also State-owned commercial banks (Big 4) that have lending support programs in place. Specifically, Agribank has recently introduced a credit initiative worth VND3 trillion targeting the forestry and aquatic sectors. This program is effective until June 30, 2024, and could conclude sooner upon the complete disbursement of the allocated VND3 trillion.

Meanwhile, Vietcombank has recently cut the VND lending interest rate by 0.5 percent per year, applying to all personal and business loans taken during five months spanning from August 1 to December 31, 2023. This marks the bank's third interest rate reduction since the beginning of the year.

Quang Ninh targets over 25 million visitors by 2030

The northeastern coastal province of Quang Ninh aims to make its tourism a spearhead and sustainable economic sector by 2030, attracting at least 25.5-26 million visitors, including about 9 million foreigners.

This is part of a newly-approved project on the province’s tourism recovery and sustainable development to 2025, with orientations to 2030.

Under the project, Quang Ninh targets at least 16 million tourists in 2024, including at least 3 million international holidaymakers.

In 2025, Quang Ninh's tourism will switch to a strong development stage, striving to receive about 17.5 million visitors, including at least 4.5 million foreign arrivals.

By 2030, the province will affirm its role as a regional and international tourism hub and a leading tourist destination of Vietnam, with an average annual tourist growth rate of 10-11% in the period 2025-2030.

It is expected that the tourism industry will gradually increase its contribution to the province's GRDP year by year, about 10-11% in 2024, 11-12% in 2025, and 15 % in 2030.

To achieve the targets, Quang Ninh will develop tourism towards green and sustainable growth, associated with the conservation and promotion of traditional cultural values; contribute to maintaining national security and border sovereignty; and ensure social order and safety.

The province will also develop a variety of tourism products and forms based on the value of the world natural heritage of Ha Long Bay, Bai Tu Long Bay, and other outstanding local tourism resources.

In the first seven months of 2023, Quang Ninh welcomed about 10.8 million visitors, up 54% over the same period in 2022. Foreign visitors to the province were mainly from China, the Republic of Korea, the US, India, France, the UK, Australia, Germany, Malaysia, and Canada.

Khanh Hoa sees 60% surge in number of tourists

The south-central coastal province of Khanh Hoa has seen a significant increase in the number of visitors during the summer months, with a 60% surge compared to the same period in 2019 before the pandemic hit.

The provincial Department of Tourism reported that from June 1 to July 25, more than 2.4 million tourists, including 485,000 international tourists, visited the province, mainly staying in Nha Trang city, generating revenue of over 11 trillion VND (464.4 million USD).

Nguyen Thi Le Thanh, director of the department, said that the province has implemented various tourism promotion initiatives in order to boost its tourism sector.

Large-scale events such as the 2023 Nha Trang - Khanh Hoa Sea Festival and the 8Wonder Music Festival played a crucial role in attracting tourists, she said.

It plans to continue organising tourism promotion events, cultural activities, and entertainment programmes, primarily focusing on Nha Trang, to further enhance its tourism industry.

From June 1 to July 25, hotel occupancy rates exceeded 83%. Four- and five-star hotels boasted occupancy rates of over 92% during this period.

Recently, Khanh Hoa implemented a project to develop its night-time economy by 2030 in order to attract more tourists and encourage them to extend their stays.

The scheme entails the development of cultural services, entertainment activities, food and beverage services, shopping options and city tours.

It plans to upgrade and develop existing facilities to support night-time economy activities, such as night markets, music shows, and street art.

Under the project, local authorities will strictly supervise tourism activities to ensure food safety and hygiene, service quality, environmental sanitation, and security and order.

It will also call for investments to establish a large-scale night entertainment complex located away from residential areas.

Khanh Hoa province, particularly Nha Trang city, has long been a popular tourist destination in Vietnam, captivating visitors with its exquisite beaches and numerous entertainment options.

In the first seven months, the province welcomed more than four million visitors, generating revenue of over 19 trillion VND.
Khanh Hoa has set this year's target of welcoming four million visitors, including 1.5 million international tourists, and generating tourism revenue of 21 trillion VND.

It aims to attract 8.8 million visitors, including 4.5 million foreigners, by 2025.

PV GAS signs deal with Japan Cooperation Centre Petroleum

PV GAS Corporation and its subsidiary PV GAS LPG JSC have signed a cooperation agreement with Japan Cooperation Centre Petroleum (JCCP) on improving the management capacity of LPG cylinders distribution by barcode in Vietnam.

The signing marked an important step in strengthening cooperation between PV GAS and its partners to improve the company’s management capacity and advance its position in the LPG market.

To accomplish the retail LPG strategy for the period of 2021-2025, which was approved last year, PV GAS and PV GAS LPG are striving to expand their retail network and distribution channels as well as enhance business efficiency. During that process, PV GAS and PV GAS LPG worked with JCCP and Hagio Company to conduct research and test the tracking of LPG cylinders by barcode using the Japanese technology.

Barcode technology has been proven effective through long-term use in Japan. This advanced distribution management system will contribute to supporting PV GAS and PV GAS LPG to improve management capacity and optimise the delivery and receipt of LPG cylinders, reduce operating costs.

HCM City approves research project for building Can Gio int’l transshipment port

The Standing Board of the Ho Chi Minh City Party Committee has basically agreed with a research project for the construction of the Can Gio international container transshipment port submitted by the Party civil affairs committee of the city People's Committee, with a note on minimising negative impacts on the ecological environment and people's life during the implementation phase.

Under the study, the port will be built on an area of 571 ha in Thanh An commune, Can Gio district, in the period from 2024-2026 and put into use in 2027. It will be an international transshipment hub of the city and region, attracting shipping and logistics firms and cargo owners to the area for engagement in the global supply chain.  

The lengths of the main wharf and barge station are expected to be about 7 km and 2 km, respectively. The port will accommodate vessels with a load capacity of up to 250,000 DWT (24,000 TEU), transshipment vessels with tonnage ranging from 10,000 to 65,000 tonnes, and barges with a payload of up to 8,000 tonnes.

The construction will be carried out in seven phases, with phases 1 and 2 scheduled to be operational before 2030.
 
Transport infrastructure serving the port will be built from now to 2030, including Can Gio bridge, a road linking the port with Rung Sac road, an elevated road running along Rung Sac road, and upgrade to bridges on Rung Sac road. 

The investment for the port, auxiliary facilities for its operations, logistics service center, and the duty-free area will be sourced from investing enterprises' capital. Meanwhile, transportation infrastructure, technical infrastructure connecting the port will be financed by the state budget, public-private partnership (PPP) investments, or other funding sources.

The operation of the port is expected to generate employment for around 6,000 to 8,000 people. Upon completion of the investment, the port is projected to contribute 34 trillion VND (1.43 billion USD) - 40 trillion VND to the budget annually through taxes and fees.

Recently, MSC, one of the world's largest shipping companies, has shown significant interest in investment in the port.

SMEs advised to harness cross-border e-commerce opportunities from FTAs

Small- and medium-sized enterprises (SMEs) in Vietnam need to understand more about development trends and legal regulations related to e-commerce activities, and proactively tap cross-border e-commerce opportunities brought by new generation free trade agreements (FTAs), said insiders.

Addressing a business matching event to support SMEs in accessing global markets via e-commerce in Ho Chi Minh City on August 10, experts said the business community, including SMEs, should seek to further improve their competitiveness and set higher demands in delivering shopping experiences for consumers rather than solely focusing on promotions.

Vice Director of VCCI in HCM City Nguyen Huu Nam said FTAs that Vietnam has joined bring about diverse preferential tax opportunities across sectors, and simultaneously facilitate effective participation in the supply chain of raw materials among member countries.

However, they also present numerous challenges related to rules of origin, sanitary and phytosanitary quarantine, technical barriers to trade, and trade and sustainable development, he noted.

The rule of origin is considered a key factor in unlocking opportunities for Vietnamese goods to make deeper inroads into the global market, but it also poses a significant barrier for businesses in leveraging FTA benefits, particularly in industries where Vietnam lacks strength in the supply chain of raw materials, such as textiles, electrical equipment, and bicycles, Nam said.

According to Nguyen Van Thanh, Director of the Vietnam E-commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade (MoIT), Vietnam is witnessing a boom of e-commerce activities with high growth rates.

E-commerce has become a crucial tool for business activities, helping enterprises access large markets, reduce costs, and increase revenue, he said.

Despite these benefits, many businesses have yet to effectively harness its potential or find sustainable development directions for their management, production and business operation, Thanh noted.

Heading towards responsible business practices in the e-commerce market, the business community, including SMEs, must proactively promote responsible business on e-commerce platforms, websites, social networks, participants said.
 
A sustainable e-commerce ecosystem needs the involvement and collaborative development between business partners and service providers, they added.

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