Vietnam’s fruit and vegetable export turnover is likely to hit a record high of 7 billion USD in 2023, driven by the current momentum and steady double-digit growth in recent times.

The country earned 3.83 billion USD from exporting fruit and vegetables in the first seven months of 2024, up 24.3% compared to the same period last year. Notably, this sector has seen double-digit growth in the top 10 export markets (excluding the Netherlands).

Recently, the Republic of Korea (RoK) agreed to import fresh pomelo from Vietnam.

According to General Secretary of the Vietnam Fruit and Vegetables Association Dang Phuc Nguyen, the export value of Vietnamese fruit and vegetables to the RoK and Japan is on the rise. In addition to building a brand and position in the traditional Chinese market, the fruit and vegetable sector is increasingly expanding in the Northeast Asian region.

China was the biggest importer of Vietnamese fruit and vegetables in Northeast Asia, accounting for 64% of the total export turnover, up 22% compared to the same period last year. It was followed by the RoK, up 55% year-on-year.

In the future, Northeast Asia will be a strategic market for Vietnamese fruits and vegetables, Nguyen said, adding that export companies will not only benefit from tariff advantages but also reduce transportation and logistics costs compared to other markets such as the EU and the US.

According to the Plant Protection Department (PPD) under the Ministry of Agriculture and Rural Development (MARD), within the Regional Comprehensive Economic Partnership (RCEP) Agreement, Vietnam is allowed to export the largest number of fruit products to China, with 12 official products. China has also approved the temporary and pilot import of Vietnamese passion fruits and coconuts, respectively.

The PPD is working on opening the market for citrus fruits, medicinal plants, and frozen durian to China. Additionally, Vietnam is also negotiating for exporting passion fruit, longan, and lychee to Australia; and passion fruit and grapefruit to New Zealand.

Vietnamese producers and exporting companies must pay attention to continuously updating import regulations in various markets to ensure timely compliance, Nguyen said.

According to Deputy Director of the PPD Nguyen Quang Hieu, the area of durian with newly-granted farming area codes is about 25,000 ha among 150,000 ha nationwide. Vietnam is focusing on not only expanding cultivation areas with farming area codes, but also controlling and managing the quality of products.

A protocol on the official export of frozen durian to China is being promoted, and is expected to be signed in 2024, he said.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said sensitivity and strict adherence to international regulations are fundamental solutions for the sustainable development of all sectors, including fruits and vegetables.

The MARD, along with other ministries, agencies, and local authorities, are tightening quality management and monitoring of cultivation areas, he stressed, adding that effective solutions to quality issues are needed to achieve higher growth in fruit and vegetable exports./.

Smart checkpoints to be piloted at Vietnam-China border gate pair

Deputy Prime Minister Le Thanh Long has signed to issue Decision 865/QD-TTg approving a pilot project on building smart border checkpoints at a specialised freight transport routes through the areas of Border Markers No.1119 – 1120 and No.1088/2 – 1089 of the Huu Nghi (Vietnam) – Youyi Guan (China) International Border Gate Pair.

The project is carried out in two phases from Q3 of 2024 to the end of Q3 of 2029, with the building of infrastructure from Q3/2024 to the end of Q2/2026, and pilot implementation from Q3/2026.

Its capital is sourced from the state budget, in association with capital of approved programmes and projects, and mobilised from socialisation sources and other legal capital as regulated.

The project aims to build the northern mountainous province of Lang Son, where the Huu Nghi border gate is located, into one of the key centres and hubs for import-export, trade and tourism activities in the northeastern region; and an important gateway for goods trade between ASEAN countries and the Chinese market and other nations.

It also looks to develop Huu Nghi into a model border gate, the most advanced road border gate in the Association of Southeast Asian Nations (ASEAN), based on high technology applications, with a modern road transport system connecting to seaports and airports; while establishing the largest road-based commercial centre in Vietnam for trade with ASEAN countries and China, and vice versa.

Accordingly, the smart checkpoints will apply new methods for handling imports and exports based on the use of modern science and technology in the procedures for import-export goods and the entry and exit of vehicles in order to enhance the capacity and efficiency of customs clearance at road border gates, thus meeting the growing trade demand. They will help solve congestion at border gates, reduce transportation customs clearance costs, create a favourable business environment to attract import-export businesses, increase state revenue, and combat smuggling, trade fraud, counterfeit goods, and poor-quality products. It will also contribute to stabilising and improving the livelihoods of people on both sides of the border, and maintaining political security, social order, and national border sovereignty.

By 2027, the project is expected increase the customs clearance capacity at the specialised freight transport routes by 2-3 times compared the current level. The number of vehicles passing the border checkpoint at the route through the area of Border Markers No.1119 – 1120 will rise from 800 to 2,000 - 2,500 per day, and from 400 to 800 - 1,200 per day for the area of Border Markers No.1088/2 – 1089.

By 2030, the customs clearance capacity at the two routes is projected to increase by 4-5 times compared to the current level, while the number of vehicles will jump to 3,000-3,500 a day and 2,000-2,500, respectively.

The total import-export turnover through the area of Border Markers No.1119 – 1120 is expected to reach approximately 85 billion USD, and about 25 billion USD for the area of Border Markers No.1088/2 – 1089./.

HCM City’s food producers need to go green: experts

Ho Chi Minh City’s food and foodstuff sector is doing well in terms of exports, but has to heed the green production trend, experts have said.

Several companies in the sector are successfully exporting to 20 or 30 markets, including Richy Group JSC with its rice crackers and oatmeal cookies and Luong Gia Food with its dried fruits and cereals.

They pay close attention to the quality of raw materials, food safety and quality certification, including ones specific to certain markets such as Halal.

Ly Kim Chi, Chairwoman of the HCM City Food and Foodstuff Association, told Sai Gon Giai Phong Newspaper that the food and foodstuff processing industry is the only one in the city in which domestic companies export more than their foreign counterparts.

Most of the association’s members have order books that are full for the rest of the year, with a few even having orders until Q1 2025, she said.

In the first seven months of this year exports of food and foodstuffs topped 3 billion USD, up 35% year-on-year and accounting for 15% of the city’s total exports.

Overseas markets are paying more and more attention to sustainable development trends in food and foodstuff production.

In addition to food safety, they include environmental friendliness, usage of organic materials, reuse and recycling of wastes and by-products, and limiting the use of plastics.

Chi said while businesses recognise the importance of going green, they either do not know where to start or lack the resources to do it.

She proposed that relevant agencies and banks should provide loans on easy terms to businesses investing in green production.

Nguyen Ngoc Hoa, Chairman of the HCM City Business Association and Chairman of the HCM City State Financial Investment Company (HFIC), said the latter could provide interest-free loans to support businesses investing in green production and digital transformation.

They should contact HFIC to get the loans, he said, adding that it is important to catch global green trends before importers begin to put up green barriers to trade./.

China leads in number of FDI projects in Vietnam in seven months

Foreign direct investment (FDI) from China has continued to flow into Vietnam, according to the Ministry of Planning and Investment.

In the first seven months of this year, among 91 countries and territories investing in Vietnam, China held the top position in the number of new investment projects, accounting for 29.7% of the total.

Meanwhile, Singapore topped the list in terms of investment capital with nearly 6.52 billion USD, accounting for almost 36.2% of the total sum, up 79.1% over the same period in 2023. Hong Kong (China) ranked second with more than 2.19 billion USD, accounting for 12.2% of the total. They were followed by Japan, China, and the Republic of Korea (RoK).

Minister of Planning and Investment Nguyen Chi Dung said that a positive signal is that many major Chinese corporations in the fields of technology, electricity - electronics, processing, manufacturing, infrastructure, renewable energy, and electric vehicles have poured investment in Vietnam.

Previously, Chinese FDI capital in Vietnam used to focus on manufacturing, household wooden furniture processing, iron and steel, footwear, garments, food processing, and plastic packaging. However, in recent years, Chinese capital has shifted to high-tech industries, components, spare parts for industrial production, electronics, automobiles, and green energy.

Recently, the China-based display maker Beijing Oriental Electronics Group (BOE) invested in a smart terminal factory in Phu My 3 Industrial Park in the southern province of Ba Ria-Vung Tau with a total capital of 277.5 million USD. The factory specialising in assembling and manufacturing screens for computers, televisions, and circuit boards is expected to operate in 2026. In 2019, the group also put into operation a factory in Dong Nai.

The northern port city of Hai Phong, which is always among localities with the highest amount of FDI, has also paid much attention to attracting investment from China.

Recently, a delegation of the city led by Secretary of the municipal Party Committee Le Tien Chau has visited, worked and promoted investment in China. During the trip, Hai Phong authorities granted seven investment registration certificates with registered capital of nearly 200 million USD and exchanged four Memoranda of Understanding on cooperation with Chinese partners.

Currently, Hai Phong is the destination of the world's leading investors such as Regina Miracle Group from Hong Kong (China) with a total investment capital of over 1 billion USD; Pegatron Group from Taiwan (China) with an investment of over 800 million USD; and SK Group from the RoK with total investment capital of over 500 million USD. The city also attracted other groups including Nipro Pharma and Aeon from Japan, and Tongwei from China.

Jang Jin Ke, General Director of Tongwei Electronics Vietnam Co., Ltd. said that Hai Phong city’s investment promotion in China can improve investment efficiency, quickly identify investment opportunities, and respond quickly to market changes, thereby contributing to promoting economic development in the context of globalisation.

Along with Hai Phong, the southern province of Binh Duong is also a FDI magnet. Binh Duong currently has 4,322 valid FDI projects with total registered investment capital of more than 40.9 billion USD, accounting for more than 8.5% of the total foreign investment capital of the country. Binh Duong is also one of the localities with a very large number of Chinese-invested projects.

Director of the Binh Duong provincial Department of Planning and Investment Pham Trong Nhan said that FDI capital has continued to play an important role in improving the quality and scale of investment projects in Binh Duong. FDI projects focus on industrial parks, with the processing and manufacturing industry accounting for a large proportion. This not only brought strong foreign resources to the province but also helped it access advanced technologies and international markets, he said.

Minister of Planning and Investment Nguyen Chi Dung said that Vietnam aims to attract selective investment and create a strong connection between the foreign investment sector and the domestic economic sector.

To achieve the goals, the ministry will urgently review, resolutely remove and handle difficulties and obstacles, particularly those relating to institutions, laws and administrative procedures to create a driving force for breakthroughs. Vietnam focuses on attracting large-scale, high-quality, high-tech FDI projects in the processing, manufacturing, electronics and semiconductor industries, he said./.

PM inspects construction of Khanh Hoa-Buon Ma Thuot expressway

Prime Minister Pham Minh Chinh on August 17 inspected the construction of the Khanh Hoa-Buon Ma Thuot expressway in the central region, which is expected to be opened to traffic in 2027.

The construction of the 117.5km expressway began June 2023 and is projected to be completed in 2026, with total investment of nearly 22 trillion VND (877.89 million USD).

Visiting the expressway’s section in Hoa Dong commune, Krong Pac district, Dak Lak province, the leader presented gifts to engineers there and lauded their efforts in the work.

He also urged the army, organisations, and locals to play a part in the construction, and asked local authorities to take care of the residents who have moved to new areas to pave the way for the project.

The leader also visited the sections in Krong Pac district’s Ea Yong and Vu Bon communes, and Cu Elang commune in Ea Kar district.

He suggested the participation of local contractors in the bidding package, stressing apart from speeding up the progress, it is a must to step up inspections and supervisions to ensure project quality, as well as environmental hygiene.

Khanh Hoa and Dak Lak provinces should quickly review the planning of urban areas and industrial parks to expand development space and make the best use of the expressway, he said./.

Vietnam, US seek cooperation opportunities in energy, manufacturing, insurance, finance

A seminar has been held in the US to connect businesses of Vietnam and the US, as well as seek cooperation opportunities in the fields of energy, manufacturing, insurance and finance.

The event was co-organised by a delegation of the Commission for the Management of State Capital at Enterprises (CMSC), the Vietnam Trade Office in the US, and the Asian American Chamber of Commerce (AACC).

At the seminar, CMSC Vice Chairman Do Huu Huy said that by the end of 2023, Vietnam had 676 state-owned enterprises (SOEs), of them 478 100% state-owned, with total assets of about 150 billion USD. SOEs hold large capital and assets, technology, high-quality human resources and contribute significantly to the state budget. They play a dominant and leading role in many important sectors and fields of the Vietnamese economy.

Operating since 2018, the CMSC represents the State ownership in 19 corporations and companies in 16 economic and technical sectors and fields, he said, noting the commission has actively coordinated with State management agencies and policy-making agencies to detect obstacles and facilitate production and business activities.
The Vietnamese representative also told US businesses about investment cooperation opportunities between the two countries.

Dr. Gergana D. Yordanova of the School of Policy and Government at George Mason University said that after the two countries upgraded their relationship last year, their educational cooperation has seen many new directions, with training majors expanded.

Currently, the university has provided training to a large number of Vietnamese students. It has plans to cooperate with universities in Vietnam.

Meanwhile, many US businesses said they have planned to come to Vietnam as soon as possible to continue implementing steps in their investment cooperation agreements that have been reached at this seminar.

The seminar was held within the framework of the CMSC delegation’s working visit to the North American region./.

Ample room remains for Vietnam-China trade, investment cooperation

There remains ample room for Vietnam and China to cooperate in trade and investment, according to Chinese experts.

Shi Zhongjun, Secretary General of the ASEAN-China Centre, said that in recent years, under the strategic directions of the leaders of the two countries, the China-Vietnam relationship has achieved rapid developments in various fields.

In 2023, China and Vietnam set up a community with a shared future that carries strategic significance, which outlines a roadmap for the development of future bilateral relations.

Shi said that the two countries’ cooperation in recent years has been developing comprehensively, intensively and extensively. Especially in the economic and trade fields, Vietnam is China's largest trading partner among ASEAN countries. Currently, many Chinese enterprises have plans to invest in Vietnam.

The two countries’ people-to-people exchanges in education, youth and tourism are all on the track of recovery and strong development.

Xu Ningning, Chairman of the Regional Comprehensive Economic Partnership (RCEP) Industry Cooperation Committee, Executive President of the China-ASEAN Business Council, and Chief Expert on China-ASEAN Trade Cooperation, held that under the leadership of the two Parties, economic and trade cooperation between China and Vietnam is bringing practical benefits to the people of the two countries.

The two sides are effectively implementing the agreements reached by the two countries’ high-ranking leaders and governments, aiming to further deepen their cooperation in all fields. Both Vietnam and China committed to strengthening economic cooperation and development, thereby contributing to effectively exploiting the potential and strengths of the two sides as well as the region, helping them make full use of the benefits brought by free trade agreements.

Xu said he believes that there is still much room to promote two-way investment and trade, adding Chinese enterprises are very optimistic about Vietnam's economic development with new business opportunities.

He said he has recently led a Chinese business delegation of about 150 members, with about half being chairpersons and general directors of enterprises, to visit Vietnam. During the talks, enterprises of both countries expressed their desire to strengthen cooperation and conduct specific connection and negotiation activities, which affirms investment and business opportunities in Vietnam.

Xu said that Chinese enterprises are willing to invest, develop and start businesses in Vietnam. The Southeast Asian nation has also attracted Chinese companies with a series of preferential policies and favourable investment and business conditions.

The building of a strategic and comprehensive business community between China and Vietnam continues to add new momentum to bilateral economic and trade cooperation, he said, elaborating that the two nations' investment cooperation has developed rapidly in recent years, with Chinese enterprises' investments in Vietnam in 2023 soaring more than 77% year-on-year.

He believed that in the coming time, economic and trade cooperation between China and Vietnam will continue to develop effectively, intensively and substantially.

Hu Suojin, former Commercial Counselor of the Chinese Embassy in Vietnam, assessed that China-Vietnam relations have made great strides, especially in the economic and trade fields.

Hu, who has involved in Vietnam-relating issues for 40 years and worked in Vietnam for 23 years, said that Vietnam-China economic, trade and investment cooperation has witnessed strong growth. Vietnam continues to be China's largest trading partner in ASEAN and fifth in the world.

Meanwhile, China is Vietnam's largest trading partner, largest import market and second largest export market. Total bilateral trade turnover reached 171.9 billion USD in 2023 and 112.6 billion USD in the first seven months of 2024. China's direct investment in Vietnam hit 4.47 billion USD and 1.52 billion USD, respectively./.

Party chief’s visit to China to open up new trade opportunities

The upcoming state visit to China by Party General Secretary and State President To Lam and his spouse is expected to become a new milestone in the Vietnam-China relationship, and open up new trade opportunities for the two countries, according to insiders.

Since the establishment of the diplomatic ties on January 18, 1950, bilateral relations have maintained robust growth, and attained important achievements. Particularly, the comprehensive strategic cooperative partnership set up in 2008 has created rapid progress in the bilateral relations in a deeper and more comprehensive manner across all areas. The ties have been further consolidated and enhanced with added future strategic orientations following the visit of the then Party General Secretary Nguyen Phu Trong to China in October 2022, and that to Vietnam by General Secretary of the Communist Party of China Central Committee and President of China Xi Jinping in December 2023.

The growth momentum has continued so far this year, with the cooperation spirit having spread strongly to all levels, sectors, and people from all walks of life.

Over the past time, Vietnam and China have inked various bilateral and multilateral deals, including the ASEAN – China Free Trade Agreement (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP). China is also working towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Vietnam has several advantages in exporting its products to the Chinese market on the back of geographical proximity, similar consumption habits between the two countries, and traditional trade ties, according to the Ministry of Industry and Trade (MoIT).

Statistics from the General Department of Vietnam Customs showed that Vietnam's exports to China in 2023 rose 5.6% year-on-year to 61.2 billion USD, with China continuing to be the largest trade partner and second largest export market of Vietnam. During January-July this year, Vietnam shipped 32.6 billion USD worth of products to China, up 5% against the same time last year, while importing 79.6 billion USD worth of Chinese goods, rising 35.6% year-on-year.

Vietnam’s main exports to China are mobile phones, parts, electronic equipment, rubber, agricultural products, seafood, among others, and its imports include machines, equipment, materials for garment and textile and leather shoes industries, steel, and building materials.

Vietnam boasts various kinds of agricultural products that have won the taste of consumers across the globe, and China is currently Vietnam’s second largest consumer of farm produce. However, China is completing its legal import regulations, and tightening the management of imported agro-forestry-fishery products.

The MoIT suggested local firms update themselves on market trend and taste, heading towards producing high-quality products, enhancing regional access, and switching to official export channels.

Chairman of Ben Tre Coconut Investment JSC Tran Van Duc expressed his hope that China will open its market for Vietnamese coconut, saying it is a potential market which consumes some 4.1 billion coconuts every year.

General Secretary of the Vietnam Fruit and Vegetables Association Dang Phuc Nguyen said China has been the largest market of Vietnamese fruits and vegetable, accounting for 64% of the industry’s total export revenue with 2.1 billion USD in the first half, up 22% year-on-year.

According to him, durian has been favoured by Chinese consumers. If coconut is exported to the market via official channels, it will help further bolster the export of fruit and vegetables. When the letter of intent to export fresh coconut to China is signed, the sector could earn some 300-400 million more USD per year from this market./.

Marine aquaculture looks towards sustainability

Although marine aquaculture provides descent incomes for farmers, they need more support in both policy and capital to stablise the sector and improve local incomes for the long term.

Southern coastal localities have optimised all available water surface areas to make marine farming a large-scale, effective, and sustainable sector, meeting the demand of domestic and foreign export markets.

In 2020, Kien Giang province, one of the two southern localities, together with Ba Ria-Vung Tau, with the largest areas of water surface and farming cages, approved a project on effective and sustainable mariculture by 2030, according to Vice Chairman of the provincial People’s Committee Nguyen Thanh Nhan.

The project aims to promote industrial-level marine farming while ensuring sensitivity to the ecological environment associated with tourism development.

The efforts also encompass national defence and security in waters and islands, restructuring the sector while improving competitiveness, and raising people's income, the official said.

After nearly four years of implementation, the province now counts 3,870 fish cages with an output of 3,910 tonnes, mainly in Kien Hai district, Phu Quoc city, and a number of island communes in Kien Luong district and Ha Tien city.

Meanwhile, Ba Ria-Vung Tau is home to 14,062 cages with an average output of 7,900 tonnes each year, according to Pham Thi Na, Deputy Director of the provincial Department of Agriculture and Rural Development.

The provincial People’s Committee has issued an action plan on fisheries development by 2030 with a vision towards 2045, with the target of raising aquaculture output to 23,000 tonnes per year by 2030.

The province has also encouraged high-tech aquaculture that can serve both tourism and exports.In 2021, the Government approved the project on mariculture development till 2030 with a vision to 2045.

Its overall goal is developing a synchronous, sustainable, and eco-friendly marine aquaculture sector, producing branded products to meet domestic and export demand, generating jobs and improving income of coastal residents, contributing to protecting the security of the country’s seas and islands.

The project targets 280,000ha for aquaculture with an output of 850,000 tonnes and export revenue of from 800 million to 1 billion USD by 2025.

By 2045, mariculture will become an important part of the fisheries sector with modern management, contributing over 25% to the total output and earning more than 4 billion USD in export turnover.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said illegal fishing has remained a headache for the fisheries sector for years.

Therefore, marine aquaculture is expected to help address issues regarding the marine environment as well as illegal, unreported, and unregulated (IUU) fishing./.

Vietnam enhances supply chains for sustainable organic agriculture

Organic agricultural products are gaining traction among consumers due to their sustainability, safety, and nutritional benefits. However, despite the rising demand, organic farming only accounts for a small portion of Vietnam's agricultural sector.

Experts have acknowledged the importance of strengthening supply chains to drive the sustainable growth of organic agriculture and secure better incomes for farmers.

The Vietnamese government has demonstrated a strong commitment to developing organic agriculture through a series of policies aimed at fostering this sector. The Party Central Committee's 2022 Resolution No. 19-NQ/TW on agriculture, farmers, and rural areas emphasises the promotion of green, organic, and circular agriculture.

Earlier, in 2018, the government issued Decree No. 109/2018/ND-CP on organic agriculture, followed by Decision No. 885/QD-TTg in 2020, which set out a comprehensive plan for organic agriculture development from 2020 to 2030. These policies are designed to align Vietnam's organic agriculture with global trends.

Dao Thanh Van, Vice President of the Vietnam Organic Agriculture Association (VOAA), highlighted that organic farming is a global trend, with 191 countries and territories engaging in organic practices, of them 74 having specific regulations for organic production. In Vietnam, traditional organic farming has been practiced for centuries, yet it remains limited in scale.

As of late 2023, Vietnam had approximately 495,000 hectares dedicated to organic farming, representing 4.3% of the country's total agricultural land and 0.69% of the global organic farming area.

Despite its modest scale, Vietnam has successfully implemented several effective organic farming models that have significantly enhanced the reputation of Vietnamese agricultural products.

According to Lam Dong province's Department of Agriculture and Rural Development, the Central Highlands province has over 1,500 hectares which have been certified organic, with 1,308 hectares meeting international standards and 270 hectares satisfying Vietnamese standards.

By the end of 2023, Lam Dong had facilitated the creation of 10 organic production and consumption chains, which have generated higher profits for local farmers compared to conventional farming methods.

Meanwhile, the southern province of Binh Duong has 600 hectares under organic cultivation. Pham Van Bong, Director of the provincial Department of Agriculture and Rural Development, revealed that the province has implemented a plan to develop its organic agriculture development strategy from 2020 to 2030, aiming to maintain certified organic cultivation areas by 2025.

Organic agriculture not only delivers higher economic returns but also equips farmers with enhanced knowledge and skills, encouraging a shift from traditional practices to safer and more responsible farming methods. Organic products are distributed through supermarkets, clean agricultural stores, and exports, effectively meeting market demand.

Experts believe that organic agriculture aligns with Vietnam's agricultural restructuring policy, which aims for increased added value and sustainable, environmentally friendly development. This approach also enhances the global competitiveness of Vietnamese agricultural products.

However, long-term success in organic farming requires close collaboration among all stakeholders within the organic production system.

Le Minh Linh, Deputy Director of the National Agricultural Extension Center, emphasised that collaboration is key to developing a modern agricultural sector that balances the interests of all participants. Organic agricultural production under chains can be organised through horizontal linkages (farmer-to-farmer, cooperative-to-cooperative, enterprise-to-enterprise) or vertical linkages (farmer-cooperative-enterprise). These linkages are essential for increasing value and ensuring sustainability in both crop and livestock sectors./.

Conference discusses prospects for RoK Korea-Vietnam ICT investment cooperation

The Republic of Korea (RoK) Consulate General in the central coastal city of Da Nang on August 16 hosted a conference on the prospects of the two countries's ICT investment cooperation, with the participation of municipal leaders, Vietnamese and Korean enterprises and IT experts, and students from universities across the central region.

At the event, Consul General Kang Boosung noted that the two nations have upgraded their relationship to a comprehensive strategic partnership after three decades of diplomatic ties, building on active bilateral exchanges. Their leaders have agreed to strengthen and expand cooperation across multiple sectors, including technology and science, information and communication, agriculture, and energy. This agreement is being implemented through the establishment of the Vietnam-Korea Institute of Science and Technology (VKIST) and the promotion of IT cooperation projects in digital transformation.

The conference aims to share diverse perspectives on the current state of the RoK’s semiconductor industry, which has garnered significant attention from Vietnam, insights from VKIST experts, as well as the prospects of the sides’ ICT cooperation from the viewpoint of their younger generations, Kang said.

The consul general expressed his hope that more Korean ICT enterprises will invest in Vietnam's central region, with stronger Vietnam-RoK partnership in the field expected to opening up numerous career opportunities for Vietnamese students.

Tran Ngoc Thach, Deputy Director of the Da Nang Department of Information and Communications, stated that the city is gradually becoming an attractive destination for investors, startups, and IT enterprises. It has consistently led the nation in IT readiness and digital transformation indices for many years.

The RoK remains among key nations in Da Nang’s investment attraction policy, the official said, adding that the central economic hub has already prepared land funds, and infrastructure in concentrated IT zones, and software and high-tech parks for businesses to implement their projects.

Currently, Da Nang has 37 institutions offering IT-related training, with approximately 6,000 graduates each year, Thach said.

At the conference, participants discussed the prospects for cooperation between Vietnamese and Korean businesses, as well as the advantages, difficulties, and challenges in their partnership in the time to come./.

Bac Ninh remains an FDI magnet

The northern province of Bac Ninh continues to be a top destination for foreign direct investment in Vietnam, thanks to its investor-friendly environment, modern infrastructure, and abundant workforce, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

Chinese investors, particularly those from Shenzhen, are showing keen interest in Bac Ninh's semiconductor and high-tech chip manufacturing sectors, said Hu Wen Da, Chairman of Zhong’an Jichuang Investment Co., Ltd. The province's attractive investment climate has prompted the company to consider investing in the area and encouraging other Chinese firms to follow suit.

Bac Ninh has experienced a surge in foreign investment this year, with 279 new projects approved since the beginning of the year, a 53.3% increase compared to the same period last year. Additionally, existing projects have received an additional 1.2 billion USD in investment, while capital contributions and share purchases totalled 40.9 million USD.

The province has ambitious plans for the future. A recently-approved list outlines 167 projects covering over 11,600 ha, with a focus on agriculture, commerce, services, residential and urban development, social housing, industrial zone infrastructure, and social amenities.

Major global corporations, including Goertek, Amkor, Foxconn, Suntory Pepsico, and Victory Giant Technology, are looking to expand their operations in Bac Ninh.

To reach the goal of attracting a total of 7 billion USD in foreign investment this year, the province is taking a series of measures to improve business environment, enhance workforce quality, and promote investment opportunities./.

More charging stations needed for EVs

The electric vehicle (EV) market in Vietnam is experiencing rapid growth and it’s poised to become a leader in Southeast Asia, according to industry insiders.

In 2023, Vietnam sold over 31,000 electric cars out of more than 300,000 passenger vehicles, marking a significant 10% market share. This impressive growth positions Vietnam as a regional leader in EV adoption, trailing only Thailand in total EV sales.

Looking ahead to 2024, the Vietnamese EV market is expected to accelerate further, driven by a range of new entrants and expanding interest in green transportation. The market’s dynamism is exemplified by the success of models like VinFast VF 3, which attracted 27,000 deposits shortly after its release. Furthermore, the shift towards electric taxis is gaining momentum, with predictions estimating that 50,000 electric vehicles will be sold this year, potentially raising the EV market share to nearly 16%, the Vietnam Automobile Manufacturers Association (VAMA) reported.

However, the growth of the EV market is closely tied to the development of charging infrastructure. At present, VinFast operates around 150,000 charging ports across 63 provinces and centrally-run cities, which is a solid start but concentrated in certain areas. For urban centres like Hanoi and Ho Chi Minh City, while the existing infrastructure meets current needs, it may require expansion to support future growth. The current coverage in shopping centres, entertainment venues, hotels and restaurants is still insufficient, indicating a need for more localised charging solutions.

The current infrastructure investment dynamics reveal a cautious approach from new EV brands and charging station developers. Many new entrants rely on independent investments rather than creating their own charging networks. This lack of substantial support from charging infrastructure providers means that businesses are shouldering most of the risk without clear forecasts for demand.

This situation creates a classic chicken and egg problem. Increased charging infrastructure is needed to boost EV adoption, but investing in it without guaranteed demand poses a financial risk.

To overcome this barrier and support the EV market’s growth, there needs to be a strategic and supportive policy environment. Clear, consistent mechanisms and incentives are essential to encourage investment in charging stations. Without these, the expansion of charging infrastructure may lag behind the growing number of electric vehicles, potentially stalling market growth and consumer adoption.

Ultimately, a well-developed charging infrastructure will make electric vehicles more convenient and appealing to potential buyers, supporting Vietnam’s green transformation goals and contributing to a sustainable future.

On August 10, the Government Office issued Notice No. 372/TB-VPCP, summarising Deputy Prime Minister Tran Hong Ha’s directions on advancing green vehicle development and the expansion of green vehicle charging infrastructure. The notice underscores the pivotal role of green energy in achieving Vietnam's green growth objectives and international commitments.

The transition to green energy is crucial for fulfilling Vietnam’s green growth goals and its international commitments.

Decision No. 876/QĐ-TTg, issued on July 22, 2022, outlines an Action Programme for reducing carbon and methane emissions in the transport sector, aiming for net-zero greenhouse gas emissions by 2050.

Various ministries and local authorities have made initial progress in converting road vehicles to green energy. However, efforts have lacked focus and clear outcomes.

To lead a review of the Action Programme outlined in Decision No. 876/QD-TTg, it should address the implementation status, challenges and propose solutions. It should also propose a management mechanism and necessary amendments to the decision.

There is a need to review and propose preferential policies to support green vehicle adoption and charging infrastructure, including support for inter-provincial electric buses.

Deputy PM Ha also asked the Ministry of Trade and Industry soon to submit the Government with amendments to Decision No. 28/2014/QD-TTg on electricity pricing, focusing on the impact of support mechanisms for electric charging stations.

Amending regulations and standards for apartment buildings and commercial centres to include provisions for electric vehicle charging systems should be completed by December 31 this year.

The Ministry of Construction, in coordination with other ministries and local governments, must ensure the integration of public electric charging stations in urban planning to support green vehicles. Guidelines must be finalised by August 2024.

The Ministry of Science and Technology is tasked with establishing standards for electric vehicle plugs, sockets and charging cords by August 2024.

Relevant ministries and localities need to review and update planning documents and policies to support green transport infrastructure development.

Ministries are required to review current implementations and propose necessary adjustments, reporting findings and recommendations to the Prime Minister by specified deadlines. They need to develop and propose policies to incentivise the use of green vehicles and support infrastructure development, including inter-provincial electric buses./.

China’s growing investment footprint in Vietnam

China has emerged as the sixth largest investor in Vietnam, with new projects surging sevenfold, reported the Ministry of Planning and Investment’s Foreign Investment Agency.

A prime example is the interest shown by Goldwind, a global leader in wind turbine manufacturing, in establishing a state-of-the-art wind turbine component manufacturing and assembly plant in the northern port city of Hai Phong. With over 47,000 turbines supplied and a total installed capacity exceeding 97 GW, Goldwind’s interest signals a significant boost for Vietnam's renewable energy sector.

The recent Hai Phong investment promotion conference in China’s Shenzhen city saw the awarding of seven new and expanded investment certificates to Chinese investors, totaling nearly 200 million USD. These investments span a range of industries, including solar panel production, electronic components, and automotive parts manufacturing. Additionally, the Hai Phong Economic Zone Authority (HEZA) also signed four memoranda of understanding with major Chinese investors.

Minister of Planning and Investment Nguyen Chi Dung highlighted a positive shift in Chinese investment toward hi-tech and green energy sectors, such as technology, electronics, manufacturing, infrastructure, renewable energy, and electric vehicles. This marks a departure from traditional investments in labour-intensive industries like furniture, steel, and apparel

Notable projects from Chinese giants such as Goertek, BYD, Radian, Brotex, Wingtech, Deli, and Trina Solar have already established their presence in Vietnam, with investments ranging from millions to billions of USD.

Beyond investment, China remains Vietnam's largest market for agricultural products. According to the General Department of Vietnam Customs, two-way trade exceeded 100 billion USD for the first time in 2018 and soared to 171.2 billion USD in 2023, accounting for over 25% of Vietnam's total export-import turnover.

As many as 11 types of Vietnamese fruit, including mango, dragon fruit, and durian, are among the top exports to China, said General Secretary of the Vietnam Fruit and Vegetable Association Dang Phuc Nguyen.

Prof. Nguyen Mai, Chairman of the Association of Foreign Invested Enterprises (VAFIE), attributed Vietnam's appeal to its favourable geographic location, relatively low labour costs, affordable land rentals, and tax incentives. The availability of locally produced raw materials, which can be exported with added value, also further enhances Vietnam's attractiveness to Chinese investors, he said./.

Hà Nội enhances effectiveness of agricultural product chains

Hà Nội is promoting effective agricultural product chains to bring high economic efficiency to farmers, cooperatives and enterprises.

Those chains also supply safe and quality farming products for both the domestic and foreign markets.

The agricultural production chains play an important role in the sustainable development of the agricultural economy, said Nguyễn Thị Thu Hằng, head of the Division of Quality, Processing and Market Development, the Hà Nội Department of Agriculture and Rural Development.

According to the Hà Nội Department of Agriculture and Rural Development, the capital has 159 safe agricultural and food product chains, notably the Khu Cháy rice chain, A-Z pork and the Văn Đức and Thanh Hà safe vegetable chains.

There are many effective linkage models under the production chains, such as a high-quality rice production chain in Ứng Hòa District and another safe vegetable production system in Thanh Trì District.

The production chain model has changed people's thinking from small-scale production to production linkage, focusing on applying safe production processes, meeting VietGAP standards and following the increasing demand of domestic and foreign markets.

The Thanh Hà Agricultural Production and Service Cooperative in Thường Tín District has invested in a closed high-tech vegetable production chain with an area of ​​1.15ha and is also linked with other farming production cooperatives in the area to supply the domestic market with nearly one tonne of vegetables and fruits per day, said director of the cooperative Bùi Thị Thanh Hà.

"Linking from production to consumption with farmers helps the cooperative control the quality of vegetables and the variety according to market demand," Hà said.

In the 2024 spring crop, the Đoàn Kết Production and Service Cooperative in Ứng Hoà District produced Japonica rice and high-quality rice meeting export standards over an area of ​​100ha, said Cao Thị Thuỷ, the director of the cooperative.

To maintain the effectiveness of linkage in the rice production chain, the cooperative has signed contracts with 2,181 households in ten cooperatives in neighbouring districts to purchase all rice output for farmers during the harvest season, Thủy said.

To further promote the efficiency of agricultural production chains, director of Bảo Minh Agricultural Products Processing and Trading JSC Bùi Hạnh Hiếu said that localities need to be planning how to apply safe production methods such as VietGAP and GlobalGAP.

This helps ensure product quality, creating advantages for businesses to sign large consumption contracts with stable prices.

In addition, Hà Nội needs to focus on building coded growing areas to trace the origin and have transparent information about production areas and chains, Hiếu added.

Producers also need to partner up with scientists to improve product quality, transparent production processes, thereby retaining customers, said Phạm Thị Lý, director of the Centre for Enterprise Integration and Development, the Việt Nam Association of Small and Medium Enterprises.

On the other hand, Hà Nội should create conditions for local agricultural products and specialties to participate in fairs and trade promotion programmes.

The city also needs to increase loans from supportive funds of the Hà Nội Agricultural Extension Center and Hanoi Farmers' Association, so the cooperatives and enterprises have more capital to invest in high-tech production of closed chains.

Deputy director of the Hà Nội Department of Agriculture and Rural Development Nguyễn Mạnh Phương said that in the future, Hà Nội will continue to develop agricultural production chains.

Localities have been planning to form large-scale agricultural production areas, attracting enterprises to invest in production linkages and product consumption.

The localities also support the cooperatives in improving management capacity, building production plans, connecting farmers and enterprises in product consumption.

They will regularly review the supply and demand of agricultural products in domestic and foreign markets to help the chains adjust production levels and redirect business if needed.

The enterprises and cooperatives proactively promote products on e-commerce platforms such as PostMart.vn and Voso.vn to increase consumption. They also plan to establish stores for safe agricultural products in some localities to introduce quality products directly to consumers. 

HCMC food producers need to go green: experts

HCM City’s food and foodstuff sector is doing well in terms of exports, but has to heed the green production trend, experts have said.

Several companies in the sector are successfully exporting to 20 or 30 markets, including Richy Group JSC with its rice crackers and oatmeal cookies and Lương Gia Food with its dried fruits and cereals.

They pay close attention to the quality of raw materials, food safety and quality certification, including ones specific to certain markets such as Halal.

Lý Kim Chi, chairwoman of the HCM City Food and Foodstuff Association, told Sài Gòn Giải Phóng newspaper that the food and foodstuff processing industry is the only one in the city in which domestic companies export more than their foreign counterparts.

Most of the association’s members have order books that are full for the rest of the year, with a few even having orders until Q1 2025, she said.

In the first seven months of this year exports of food and foodstuffs topped US$3 billion, up 35 per cent year-on-year and accounting for 15 per cent of the city’s total exports.

Overseas markets are paying more and more attention to sustainable development trends in food and foodstuff production.

In addition to food safety, they include environmental friendliness, usage of organic materials, reuse and recycling of wastes and by-products, and limiting the use of plastics.

Chi said while businesses recognise the importance of going green, they either do not know where to start or lack the resources to do it.

She proposed that relevant agencies and banks should provide loans on easy terms to businesses investing in green production.

Nguyễn Ngọc Hòa, chairman of the HCM City Business Association and chairman of the HCM City State Financial Investment Company (HFIC), said the latter could provide interest-free loans to support businesses investing in green production and digital transformation.

They should contact HFIC to get the loans, he said, adding that it is important to catch global green trends before importers begin to put up green barriers to trade.

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