Deputy Minister of Agrculture and Rural Development Tran Thanh Nam has called for coordination from Japan to implement capacity-building programmes for cooperatives joining Vietnam's project on developing 1 million hectares of high-quality, low-emission rice linked with green growth in the Mekong Delta region by 2030, with focus on building a digitalisation system for chain management and establishing a system for monitoring and evaluating emission reductions.

During his meeting with Senator Maitachi Shoji, Vice Minister of Agriculture, Forestry and Fisheries of Japan, in Tokyo on August 20, Nam underlined the need to mobilise resources to support capacity building for cooperatives and farming households to effectively implement the project.

The two sides discussed issues related to strengthening cooperation in agricultural projects, training, experience exchange, and market access.

Maitachi applauded Vietnam's initiative for sustainable transformation of the rice industry, adding that Japan's electronic agricultural extension system facilitates the fastest and most efficient exchange of information between agricultural extension agencies, extension officials, and farmers.

He showed his interest in supporting Vietnam in improving and upgrading its training programmes on agriculture towards a multifunctional approach. He took note the proposal to support Vietnam to improve its capacity in the agricultural extension work, firstly to implement the project and then in the standard raw material areas that the Ministry of Agriculture and Rural Development (MARD) is directing.

The Vietnamese official said he hopes that the Japanese Ministry of Agriculture, Forestry, and Fisheries will support and facilitate the involvement of relevant agencies such as the Japanese Embassy in Vietnam, the Japan International Cooperation Agency (JICA), and Japanese non-governmental organisations in supporting the MARD's training institutions.

The two sides also discussed promoting and creating favourable conditions for joint venture and investment collaboration between Japanese and Vietnamese businesses in the fields of organic agriculture, digital technology in agriculture development, logistics, and agro-forestry-aquaculture trade.

Meanwhile, the Japanese official proposed strengthening high-quality agricultural cooperation through attracting investment, technology, and knowledge transfer based on agreements between the two sides.

Nam requested the Japanese side to expedite the completion of procedures for Vietnamese pomelo to be exported to the Japanese market and to continue assessing the risks and pests associated with passion fruit and butter from cow's milk. They said that MARD has also instructed its relevant units to complete procedures for Japanese grapes to be exported to Vietnam and to continue evaluating the export needs for Japanese peaches and puffer fish.

The technical agencies of the two ministries are reviewing relevant documents and expect that the “Medium- to Long-Term Vision for Japan-Vietnam Agricultural Cooperation in 2025 - 2029 will be signed between the two sides in the first quarter of 2025.

Japan is currently one of the important markets for Vietnam's agro-forestry-aquatic exports, accounting for about 7.5% of the total annual export turnover of these items. The average export growth over the past 10 years has expanded 6.35% per year./.

French firm explores investment opportunities in wastewater treatment in Can Tho

Vice Chairman of the Can Tho municipal People's Committee Duong Tan Hien had a meeting with Farchad Kaviani, Managing Director of Southeast Asia of SUEZ Group of France on August 20, during which they discussed the possibility of cooperation in projects related to water supply, wastewater treatment, and waste management.

Hien stated that the city is calling for investment in effective waste management to reduce emissions and protect the environment in Can Tho. He introduced three investment projects to SUEZ, including the Thot Not 2 water plant, a solid waste treatment plant in Thoi Lai district, and a wastewater treatment plant.

Can Tho is inviting investors for the Thot Not 2 water plant and Thoi Lai solid waste treatment plant through a bidding process to select the investor, he said.

Meanwhile, Can Tho is calling for investment into 10 wastewater treatment projects through Public-Private Partnership (PPP) arrangements or direct investment.

Kaviani provided detailed information about areas that SUEZ is interested in at Can Tho, saying that the projects that Can Tho is inviting investment for are well-suited to SUEZ's strengths and investment cooperation demand.

According to Kaviani, SUEZ has extensive experience in investing in water treatment projects, industrial water treatment, and other water-related projects. They have invested in related projects and provided water treatment technology across various Southeast Asian countries, including Vietnam.

Hien said the city will create favourable conditions for SUEZ to explore cooperation opportunities in the areas of its interest in Can Tho, noting that SUEZ's representatives should work directly and exchange information with the city’s departments and agencies to understand more about information and procedures required for investors./.

RoK emerges as second largest importer of Vietnamese fruit and vegetables

Vietnam raked in more than US$164 million from importing fruit and vegetables to the Republic of Korea (RoK) in the first half of the year, representing a year-on-year rise of 55% and making the RoK the second largest consumer of the products after China, according to the General Department of Vietnam Customs.

Among the export items, banana brought back US$35.4 million, representing a three-fold rise; mango US$24 million, up 72%; and sesame seed nearly US$30 million, up 62%.

Furthermore, strong export growth was also seen in other products such as dragon fruit, watermelon, shiitake mushroom, durian, and pineapple with the growth rate ranging between 40% and 217%.

In particular, Vietnamese almond exports skyrocketed with a 224-fold rise to reach nearly US$2 million compared to the same period last year.

A representative of the Korean Business Association in Vietnam (KOCHAM) attributed the rise to the rebound in purchasing power of Korean consumers after the COVID-19 pandemic and cheaper prices of Vietnamese fruit.

Hong Sun, chairman of the KOCHAM, emphasised that domestic agricultural production costs have become higher, leading to the RoK’s high import proportion of fruit. Furthermore, Korean consumers have been getting used to eating tropical products such as mangoes, durians, and other items.

According to Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, the RoK’s import turnover from Vietnam during the seven-month period is forecast to reach US$190 million and is likely to increase sharply during the year-end holidays.

Most notably, there remains ample room for local banana exports to the RoK as the size of the Korean market reaches more than US$300 million annually, he noted.

Experts pointed out that to compete with regional peers from Thailand and the Philippines, Vietnamese firms are required to meet stringent requirements on food safety, hygiene, and packaging standards set by Korean importers.

Recently, many supermarket chains from the RoK, namely Lotte and Emart, have worked directly with Vietnamese farmers, cooperatives, and businesses to ensure product quality from the planting to processing stages before then exporting to the RoK market.

HCMC offers support, low-interest loans to businesses

Businesses in HCM City have received support to access favourable loans to bolster production and operation activities, a top official said.

During a meeting on the city’s socio-economic matters on August 15, Nguyễn Đức Lệnh, deputy Director of the State Bank of Vietnam’s HCM City branch, said that during the first seven months of the year, the bank-business linkage programme in the city granted loans totaling VNĐ350 trillion (US$14 billion) for more than 100,000 customers.

Some 17 commercial banks have offered loans with lowered interest rates and increased credit limits for local businesses, individuals and organisations.

He said that the SBV has been working with the Department of Industry and Trade to implement a favourable-interest loan programme for businesses as part of the city’s market stabilisation programme.

By the end of July, total outstanding loans under this programme reached around VNĐ4.4 trillion.

The city is focusing on disbursing funds to build or renovate social housings for labourers under a VNĐ120 trillion credit package managed by the State Bank.

There is also a 2024 credit package for businesses in the forestry and fisheries sectors of up to VNĐ30 trillion, with interest rates at least 1-2 per cent/year lower than standard rates.

As of June, cumulative disbursements since the start of the programme have reached over VNĐ2.8 trillion. Commercial banks’ outstanding loans amounted to over VNĐ1.4 trillion across 2,015 customers.

Nguyễn Quang Thanh, deputy general director of HCM City Finance and Investment State-owned Company (HFIC), said that HFIC is working with relevant parties to launch favourable loan policies for investment projects in sectors that are prioritised for the city’s socio-economic development, including healthcare, key industries, education and digital transformation.

Imposing 5% VAT on fertilisers will bring difficulty to farmers

Some National Assembly (NA) delegates are concerned that imposing value added tax (VAT) on fertilisers, and machinery and equipment for agricultural production, will create difficulty for farmers.

At a meeting of the National Assembly Standing Committee on August 14, chairman of the NA's Committee for Finance - Budget, Lê Quang Mạnh, said that after it was submitted at the 7th session of the 15th National Assembly opened on May 20, there are two views on imposing value added tax (VAT) on fertilisers and agricultural machinery and equipment. 

Many delegates propose keeping the current regulations on not to impose VAT. If 5 per cent VAT is added to fertilisers, farmers will be greatly affected because prices will increase, leading to higher cost of agricultural products. 

Some other lawmakers agree with imposing VAT on fertiliser products. They said that fertiliser products in the non-VAT taxable category adversely affected the domestic fertiliser production industry in the past 10 years.

Currently, there is no VAT on fertilisers, meaning exporters do not have to pay VAT and domestic producers cannot deduct input VAT.

This results in higher prices of domestically produced fertilisers than imported.

Mạnh said that the majority in the Standing Committee of the Finance and Budget Committee agree with the first view to maintain zero VAT rate for fertiliser. 

Meanwhile, the Ministry of Finance, who compile the draft, has kept the proposal on imposing 5-per-cent VAT on fertiliser as the draft presented at the 7th session of the 15th National Assembly. 

The Finance and Budget Committee will finalise this draft based on the opinions from the National Assembly's Standing Committee. 

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 delegation of the Commission for the Management of State Capital at Enterprises (CMSC) meet with US businesses.

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 wholly state-owned, with total assets of about US$150 billion. 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.

Nigeria’s tax reduction offers opportunities for Vietnamese goods

The Nigeria Customs Service has announced the implementation of a 0% import tax rate and exemption of value-added tax (VAT) on a number of food items imported into Nigeria, including those from Vietnam, according to the Vietnamese Trade Office in Nigeria.

This policy will be implemented from July 15 to December 31 and will open up a wealth of opportunities for Vietnamese goods in this market.

The Vietnamese Trade Office in Nigeria said that the list of items subject to a 0% import tax rate includes brown rice with the HS code 1006.20.00.00, sorghum with the HS code 1007.90.00.00, milleta with the HS code 1008.29.00.00, corn with the HS code 1005.90.00.00, wheat with the HS code 1001.19.00.00, and beans with the HS code 0731.31.90.00.

The Nigerian Ministry of Finance will periodically provide the Nigerian Customs Service with a list of licensed importers and import quotas in a bid to facilitate import activities under the new policy.

According to the latest regulations, to be eligible to gain entry into Nigeria under the new policy, a company must be registered in the West African country and have been in business for at least five years. They are also required to submit a list of annual revenue reports and financial reports, as well as paying all types of taxes over the last five years.

Nigeria last year produced 5.56 million tonnes of rice, but the market of more than 200 million consumers imported an additional 2.3 million tonnes to feed its population. The government said that the new policy aims to solve immediate difficulties without affecting the long-term strategy to protect domestic production.

The Ministry of Industry and Trade of Vietnam reported that Nigeria is Vietnam’s largest trading partner in Africa, with their two-way trade turnover hitting US$500 million in 2022. However, bilateral trade has yet to maintain annual growth.

Trà Vinh announces list of 46 projects calling for investment

The Mekong Delta province of Trà Vinh has announced a list of 46 projects calling for investment in many fields.

Specifically, there are three projects in the industrial sector; one project in the education and training sector; 13 projects in the trade, tourism and service sector; 18 projects in the social infrastructure - urban and environmental sector; and three projects in the social housing sector.

The vice chairman of provincial people's committee Nguyễn Quỳnh Thiện said that in order to effectively attract investment, the people's committee has issued an investment promotion programme with many appropriate tasks, solutions, mechanisms and policies.

In recent years, the province has always focused on improving the investment environment, speeding up administrative reform, and promoting direct dialogue with businesses and investors to meet their requirements and expectations.

According to the 2023 Provincial Competitiveness Index (PCI), Trà Vinh was ranked 24/63 provinces and centrally run cities and ranked 7/13 provinces and cities in the Mekong Delta region.

Since the beginning of this year, the province has attracted nine domestic and foreign investment projects. Of which, there are eight domestic projects with a total investment capital of VNĐ1.78 trillion (US$73.6 million), an increase of three projects compared to the same period of last year, and one foreign project with a total investment capital of $2 million.

Alibaba launches online logistics service to support Vietnamese sellers

Alibaba, the world’s largest online B2B business platform, in collaboration with express shipping service providers UPS and DHL recently launched an online logistics service for Vietnamese sellers to facilitate the export of their goods to more than 200 countries and territories worldwide.

The service has been developed to not only support fast international shipping options but also integrate the entire process from packaging and warehousing to delivery, helping businesses optimize costs and time.

Through the service, Alibaba ensures goods are transported safely and on schedule, while also providing detailed order tracking tools, customs consulting services and comprehensive cargo insurance solutions.

These tools help businesses reduce risks and improve competitiveness in the international market, including transparency and reasonable costs; global digital smart logistics service, the ability to track and control orders, cargo insurance, and customer service.

By leveraging advanced technologies and comprehensive solutions, Alibaba supports Vietnamese small and medium sized enterprises to enhance their competitiveness, ensure on-time delivery and respond quickly to market demand, thereby promoting their growth and success in the global market, said Vianne Wang, director of Global Supply Chain of Alibaba.

Vietnamese export orders to China soar on growing demand

The value of Vietnamese export orders to the Chinese market increased by additional US$600 million in July compared to June, according to the Ministry of Industry and Trade.

Most notably, high export turnover was recorded in various items such as phones (US$1.45 billion, up 18%); computers (US$1.24 billion, up 57%); and rubber (US$173 million, up 124%).

Throughout the seven-month period, Vietnamese export value to China edged up by 7.5% to US$33.4 billion, equivalent to an increase of nearly US$2.4 billion compared to the same period last year.

In particular, wood and timber exports saw an impressive growth rate of 48% year on year to reach more than US$1 billion.

Meanwhile, the export of cameras, camcorders, and components skyrocketed by 85% to US$2.43 billion, while that of fruit and vegetables soared by 22.5% to nearly US$2.2 billion. Footwear exports also surged by 88.7% to roughly US$950 million.

According to industry insiders, export orders to China have increased significantly thanks to a recovery in global consumption demand coupled with improved product quality, especially in terms of Vietnamese agricultural products which have met stringent requirements relating to growing area codes, packaging, and food safety indicators.

Experts say there remains ample from ahead for Vietnamese exports to the northern neighbour in the remaining months of the year thanks to high consumer demand during the year-end period.

Furthermore, a number bilateral and multilateral cooperation agreements, such as the ASEAN - China Free Trade Agreement (ACFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP) are expected to create a wealth of opportunities for Vietnamese goods to further penetrate the market moving forward.

High shipping costs and trade tensions with the United States and the EU have forced many Chinese enterprises to seek suppliers in neighbouring regions, with Vietnam emerging as the top option.

Insiders predict that the signing of protocol for fresh coconuts from the Vietnamese market will help exporters to earn between US$300 - 400 million per year from this market.

VinFast to return to Canadian National Exhibition 2024

VinFast, the electric vehicle (EV) maker of Vietnamese conglomerate Vingroup, continues to be the main sponsor and the only electric vehicle brand at the Canadian National Exhibition (CNE) which is running from August 16 to September 2, Vinfast said on August 15.

Robert Muller, deputy CEO of Sales and Marketing at VinFast Canada, said this is the this consecutive year that VinFast has partaken in the CNE in an attempt to introduce Canadian consumers to smart and modern electric driving experiences.

He revealed that the demand for the VF 8 model in Canada has exceeded the company’s expectations, adding that the first batch of VF 9 vehicles will be officially delivered to Canadian customers in the near future.

The firm’s participation in the expo continues to demonstrate VinFast's commitment to promoting the goal of developing green mobility in Canada, he stressed.

From August 16 to September 16, customers who register for a test drive of VinFast vehicles at the exhibition or at VinFast Canada stores will have the opportunity to participate in a lucky draw, and the winner will walk away with a VF 8 rental package worth US$25,502 for two years.

In Canada, the two VF 8 and VF 9 models are to be sold at US$40,819 and US$56,322, respectively.

Local firm receives Dutch funding to develop sustainable coffee value chain

The Netherlands’ The & GREEN Fund unveiled plans on August 15 that it will provide up to US$25 million in funding to Phuc Sinh Corporation, one of the key Vietnamese coffee and pepper exporters, to develop a deforestation-free coffee value chain in a sustainable manner.

This marks the first stage of investment by The & GREEN Fund in a Vietnamese enterprise so far, opening up sanguine prospects for the Vietnamese agricultural sector as it works to attract sustainable investments from the international financial market.

Phan Minh Thong, chairman of the Board of Directors of Phuc Sinh JSC, said that the funding will play a crucial role in the firm’s sustainable development strategy.

The company is fully committed to not only improving product quality, but also to ensuring that the production procedure will contribute to improving environmental protection, noted the CEO.  

The partnership with The & GREEN will help the company to go further on the path of sustainable development, thereby bringing about long-term value to both the company and society, he added.

The & GREEN Fund is managed by SAIL Investments, a global sustainable investment manager based in the Netherlands. The fund invests to prove that financing inclusive, sustainable, and deforestation-free commodity production can be commercially viable and replicable.

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. 

Phu Tho expands industrial zones for more investment

The northern province of Phu Tho has completed the construction and expansion of seven industrial parks and 21 out of the 28 industrial clusters, helping turn the province into a magnet for foreign investors.

The Phu Ha Industrial Zone, one of the key areas, spans over 356 hectares in its first phase and is situated across the districts of Ha Loc, Phu Ho, and Ha Thach in Phu Tho township. The zone is currently 50% occupied by factories, with numerous establishments operating at full capacity.

By the end of 2024, Viglacera Corporation Joint Stock Company, the investor of Phu Ha Industrial Park, plans to finalise investments in essential infrastructure, including roads, drainage systems, water supply, lighting, and green spaces.

Additionally, the zone will enhance safety with traffic control, fire prevention systems, and worker transport services.

Trinh The Truyen, Director of the Phu Tho Department of Planning and Investment, stated that the province aims to attract investments totaling at least 50 trillion VND (about 2 billion USD) in 2024. This includes new and adjusted foreign direct investment (FDI) projects, with a target of 500-600 million USD in FDI. Phu Tho also plans to offer 200-300 hectares of clean land to attract further investment.

The province is streamlining land registration offices across districts, improving administrative procedures, and accelerating key infrastructure projects. Specific actions include finalising Phu Ha Industrial Zone Phase 1, initiating Phase 2, and developing additional zones such as Tam Nong and Ha Hoa. The expansion also includes new industrial clusters like Dong Phi, Tam Nong, Nam Doan Hung, Phu Ho, and Quang Yen.

Chairman of the provincial People’s Committee Bui Van Quang emphasised the province's commitment to leveraging its geographical and natural resources, alongside cultural advantages, to enhance investment attraction. Efforts are focused on expediting land clearance, reducing administrative delays, and advancing major infrastructure projects, including industrial zones and residential areas.

Nguyen Anh Son, Director of the Import-Export Department under the Ministry of Industry and Trade, highlighted Phu Tho's potential to become a growth hub in the north’s economic region, linking Vietnam with China and ASEAN.

Over the past three years, the province has drawn nearly 500 domestic investment projects with registered capital totaling 56.9 trillion VND and 78 FDI projects with capital estimated at more than 2.1 billion USD. The average size of domestic projects has increased by 27.7 billion VND, while the average FDI project size has risen by 50.4 million USD. Major investors from the Republic of Korea , China, Japan, Singapore, the US, and India are focusing on electronics, textiles, packaging, plastic pellets, and food processing sectors./.

Banks to shift to retail lending to gain credit growth

Many banks, which used to focus on lending to individual (retail) customers, have had to shift to expanding corporate lending to achieve credit growth in the first half of 2024.

In the first half of 2024, corporate credit became the main driver of growth for many banks. Some banks such as VPBank, VIB and TPBank, which were known for specialising in lending to individual customers and classified by many organisations as retail banks, recorded outstanding corporate loans of more than 50% by the end of the second quarter of 2024.

According to financial reports of 16 banks, the proportion of outstanding loans to individual customers at the end of the second quarter of 2024 decreased by 2.8 percentage points to 38.96% against the end of last year.

Nguyen The Minh, Director of Research and Development of Individual Customers at Yuanta Securities Vietnam Company, said banks had not dared to lend to individual customers, because they were afraid of the risks.

In the context of a difficult economy, especially after the pandemic and the bad debt increase, the most sensitive subjects are still individual customers. It is possible to recover debts from enterprises, but it is very difficult to recover debts from individuals, according to Minh.

Minh predicted that retail credit would improve next time when unemployment decreases and people's income increases.

Previously, banks focused heavily on corporate credit growth. However, they could increase the credit ratio of individual customers in the third and fourth quarters of 2024, Minh forecast, explaining that the risk of lending to the individual customer group was decreasing.

Le Hoai An, a lecturer at the Banking University, said that in the first half of this year, individual lending remained limited and banks were quite selective in choosing customers.

An said if the economy recovers, along with the application of the State Bank of Vietnam’s Circular 12/2024/TT-NHNN, it would be a boost for the consumer sector and retail lending.

Under Circular 12/2024/TT-NHNN, which took effect from last month, for small loans not exceeding 100 million VND (4,000 USD), borrowers will not have to provide feasible capital use plans and related personal information to credit institutions.

The new policy aims to simplify procedures for granting small value loans, which will contribute to creating more favourable conditions for customers to access bank credit in their daily lives and minimise illegal usury. In addition, it will help banks expand retail lending activities.

According to banks, borrowers often ask for small loans to meet their consumer needs, so it is difficult for them to have adequate and accurate reports to prove feasible capital use plans./.

Chinese investment inflow becoming stronger with higher quality: Insiders

Vietnam has seen a strong investment inflow from China with the presence of many international corporations in various fields such as technology, electronics, and renewable energy.

Last month, a delegation from China's Sunwoda Group visited the northern province of Bac Giang to seek investment opportunities. Xiang Hai Biao, General Director of the firm said that Sunwoda plans to build a 300-million-USD factory in the locality to produce electronic components. Previously, Sunwoda built a factory in Bac Giang.

Sunwoda is not the only Chinese enterprise to show interest in Vietnam. Last year, a delegation of Chinese businesses came to northern Hai Phong city to discuss projects that they want to invest in.

In early August, within the framework of a trade promotion programme in China, Hai Phong leaders presented investment licences to a series of projects worth nearly 200 million USD. Many memoranda of understanding were also signed for investment cooperation for other large-scale projects.

This reflects the recent trend that investment from China has been pouring into Vietnam, especially since China decided to lift the Zero-COVID policy in early 2023. Statistics from the Ministry of Planning and Investment showed that in 2023, Chinese enterprises registered to invest 4.5 billion USD in Vietnam, a year-on-year increase of nearly 80%.

In the first seven months of this year, the figure hit nearly 1.65 billion USD, which is a positive figure despite a decrease compared to the same period last year. In terms of capital, China ranked fourth among the countries and territories investing in Vietnam in the Jan-Jul period. However, the country topped in the number of new projects which accounted for 29.7% of the total.

Along with traditional areas, over the recent years, Chinese firms, including those from Taiwan and Hong Kong, have invested in large-scale projects in technology and electronics in Vietnam, evidenced by the presence of BYD, Goertek, and Foxconn.

Minister of Planning and Investment Nguyen Chi Dung held that the quality of Chinese investment in Vietnam has been considerably improved. In the past, Chinese-funded projects were mainly in the fields of textiles and footwear, but now they have been expanded to the fields of technology, electricity, and electronics.

Earlier this year, Victory Giant Technology Group decided to invest in a project to research, develop, produce, and trade high-precision circuit boards, with an investment capital of more than 800 million USD in Bac Ninh. Meanwhile, BYD Group is still continuously expanding its investment in electronic component manufacturing. Currently, BYD's Phu Tho factory is producing components and accessories for the Apple.

At the same time, Runergy Group is working on a 440-million-USD project in the production of semiconductor components, including silicon bars and semiconductor wafers in Nghe An. Runergy plans to increase its total investment capital in Vietnam to 1.2-1.4 billion USD. Power China, China Rare Earth Group, and Haosen Electronic Battery Company are also among the Chinese enterprises planning new investment projects in Vietnam in the near future.

Vietnam welcomes Chinese investors in the fields of high technology, renewable energy, supporting industries, electronic components, electric cars, electric batteries, essential infrastructure, international financial centre building, green finance, smart cities, ecological industrial parks, and free trade zones. These are industries that China is strong in and Vietnam has demand and development potential, the minister said at a seminar with Chinese businesses.

In his visit to China in June, Prime Minister Pham Minh Chinh met with many large firms of China and called for their investment in transport infrastructure, urban railway projects, and high-tech projects in Vietnam.

Minister Dung expressed his hope that Chinese firms will promote the technology transfer and help Vietnamese businesses enhance their production capacity and engage more deeply in the global value chain.

The growing Vietnam-China relations is considered a favourable condition for Chinese investment to continue its strong flow into Vietnam with a higher quality./.

PM urges faster progress to inaugurate Circuit-3 500kV lines by Sept. 2

Prime Minister Pham Minh Chinh has demanded relevant sides mobilise every resource to speed up the construction of the Circuit-3 500kV power transmission lines so as to inaugurate the entire network before September 2.

He made the request at a recent teleconference on the construction of the lines in central Nghe An and Ha Tinh provinces, according to the Government Office’s announcement on August 19.

The project, from Quang Trach in the central province of Quang Binh to Pho Noi in the northern province of Hung Yen, has a transmission capacity of up to 2,400MW. It holds special importance to improving the transmission capacity of the national power system, ensuring proactivity and flexibility in network operations, balancing power supply among regions, and guaranteeing national energy security, thereby contributing to the sufficient and stable power supply for economic activities and people’s life.

There remains only a small part of the main workload, but much still needs to be done to complete and put the entire project into operation before September 2. As this is the final stage of the project, all-level authorities, sectors, units, and individuals need to exert stronger efforts, take more drastic actions, clarify responsibilities of each person, set concrete deadlines, and boost examination and supervision to accelerate and finish the project on schedule, the PM said.

The Government leader also gave detailed instructions to relevant sides, including the Vietnam Electricity (EVN) group, the National Power Transmission Corporation (EVNNPT), ministries, and the nine provinces traversed by the lines.

PM Chinh requested the inauguration ceremony be organised before September 2 in all the nine provinces as a celebration of the 79th anniversary of the August Revolution and the National Day (September 2).

Work started on the lines in October 2023. The project is about 519km long and invested with some 22.35 trillion VND (nearly 895 million USD) in total.

It consists of four sub-projects, namely Quang Trach – Quynh Luu (Nghe An province), Quynh Luu – Thanh Hoa (Thanh Hoa province), Thanh Hoa – Nam Dinh 1 thermal power plant (Nam Dinh province), and Nam Dinh 1 thermal power plant – Pho Noi.

So far, several stretches of this project have become operational./.

Vietnam eyes completion of 3,000km of highways by 2025

The Government Office on August 19 issued a document announcing the conclusion by Prime Minister Pham Minh Chinh, head of the State steering committee for national key transport projects, at the 13th meeting of the committee.

Accordingly, the Government leader urged competent ministries, sectors, and localities to make concerted efforts and resolve to complete 3,000km of highways by 2025 when the country will celebrate the 50th anniversary of the Southern Liberation and National Reunification, and the 80th anniversary of the National Day.

He asked for the acceleration of the disbursement of capital investment for transport projects across the nation, which is around 200 trillion VND (over 8 billion USD), saying it will contribute to creating motives for growth.

Relevant sides must work together to push ahead the completion of investment procedures, arrange funds for the projects, remove roadblocks, and report to the Prime Minister on their challenges. In the meantime, localities must mobilise the whole political system to engage in the site clearance work, and drastically fulfill the process as scheduled.

Besides, he underlined the need to handle problems related to the relocation of technical infrastructure and bidding process, ensure sufficient and timely building materials, construction quality, labour safety, and environmental sanitation, as well as reduce adverse impact on local people’s lives.

A 500-day emulation campaign for completing 3,000km of expressways was launched at a recent ceremony held in the presence of PM Chinh in the Central Highlands province of Dak Lak.

He particularly asked the Ministry of Transport to chair and join hands with localities to develop a detailed plan to concretise the set target. Furthermore, he asked for further efforts from investors and contractors to complete 436km of highways under 14 projects/component projects lagging behind schedule.

So far, about 1,000km of expressways traversing 15 provinces and cities has been completed, raising the total length of such roads to nearly 2,100km. Ongoing projects are constructing more than 1,700km while work on another 1,400km is about to start soon./.

Vietnam to lead AI innovation in Southeast Asia

Vietnam is in a special position to lead artificial intelligence (AI) innovation in Southeast Asia, said Nguyen Duc Toan, Country Director of Google Cloud, at the GenAI Summit 2024, which opened in Ho Chi Minh City on August 19.

To make Vietnam a global AI hub, there must be a concerted effort among universities, businesses, and the government to build a robust AI ecosystem, he said, adding this collaboration is crucial as Vietnam is projected to need 100,000 additional AI professionals over the next five years to meet growing market demand.

AI experts said Vietnam holds significant advantages in AI development thanks to its favourable market conditions, abundant human resources, and a dynamic startup ecosystem. However, it is facing challenges related to low labour costs and the need for investment in AI education and training to increase competitiveness, they noted.

Le Viet Quoc, a senior expert at Google, stated that the Vietnamese government has implemented various policies to encourage startups and technology investments, creating a conducive environment for AI enterprises to thrive and compete on the international stage.

On the global front, Vietnam has cooperated with major technology companies like Google, which is heavily investing in the development of future AI talent. Google has pledged 40,000 scholarships through its Google Career Certificates programme to equip Vietnamese professionals with essential skills.

Additionally, Google also vowed to train 200 Vietnamese startups in AI-related fields through its Google AI Startups Masterclass programme. This initiative aims not only to develop a high-quality workforce but also to create significant opportunities for startups in the AI sector.

Vietnam’s startup ecosystem attracted over $1 billion in investments in 2023, with its growth now rivaling that of Singapore and Malaysia.

Experts also believed that Vietnam’s strong educational foundation, particularly in mathematics and science, provides a solid base for AI development. Vietnamese students consistently excel at international maths competitions, demonstrating the logical thinking and problem-solving abilities that are crucial for AI advancement./.

FDI firms rack up trade surplus of US$24.56 billion in seven months

Foreign Direct Investment (FDI) firms continued to prove their pioneering role in Vietnam’s economic growth, generating a trade surplus of US$24.56 billion in the first seven months of the year.      

The General Department of Vietnam Customs reported that FDI firms raked in US$148.71 billion from exports in the period from January 1 to July 15, representing a year-on-year rise of 13.7% and making up 72% of the country’s total export turnover.

Most of the country’s key export items that brought back billions of US dollar each were manufactured by FDI firms, including computers, electronic products and components, phones and components, machinery, equipment, tools, and spare parts.

Meanwhile, the total import turnover of FDI firms reached US$124.15 billion, representing an increase of 16.2% compared to the same period last year and accounting for 63.5% of the country’s total import turnover.

Overall, FDI firms’ total import-export turnover surged by 14.8% in the reviewed period to US$272.87 billion, resulting in a trade surplus of US$24.56 billion.

At a recent regular Government press conference, Deputy Minister of Industry and Trade Phan Thi Thang attributed the positive results to the recovery of industrial production and FDI attraction and disbursement.

Accordingly, the Vietnam's Manufacturing Purchasing Managers' Index (PMI) kept improving at 54.7 in both June and July compared to 50.3 in May, while 60 out of 63 localities witnessed their industrial production index up in July. Especially, several localities recorded double digit growth such as Khanh Hoa, Bac Giang, Hai Phong, and Quang Ninh.

Analytica Vietnam 2025 to return to Ho Chi Minh City

A wide range of the latest technologies, equipment, and advanced solutions from 300 exhibitors will be displayed at the eighth International Trade Fair for Laboratory Technology, Analysis, Biotechnology and Diagnostics (Analytica Vietnam) 2025 which is set to kick off in Ho Chi Minh City on April 2, 2025.      

Organised by the National Agency for Science and Technology Information under the Ministry of Science and Technology, the function is due to run until April 4 at the Sai Gon Exhibition and Convention Centre (SECC).

First held in 2009, the biennial event brings together leading experts in the laboratory technology, analysis, and biotechnology industry in Southeast Asia.

The highlights of the 2025 edition will be a start-up area dedicated to new businesses which will allow them to introduce their advanced solutions to global customers at a reasonable cost.

The exhibition will see the presence of diverse international pavilions from Singapore, Germany, China, Malaysia, and the UK, providing the latest advances from leading laboratory technology centres globally.

The three-day exhibition is expected to welcome about 6,000 visitors next year, helping them to access lab solutions for various industries such as food, public health, chemicals, and environmental protection.

The product range on display covers instrumental analysis, measuring and testing, quality control, lab technology, life sciences, biotechnology and diagnostics.

The 2023 exhibition drew 141 exhibitors, and more than 5,273 visitors, up 27% from 2019. The exhibition resumed in 2023 after a COVID-19 inflicted hiatus.

Vietnam, Belgium look to boost renewable energy cooperation

Vietnamese Ambassador to Belgium Nguyen Van Thao visited a wind power project in Hanzinelle - Gerpinnes in the Belgian province of Namur, and had a working session with experts to discuss challenges and opportunities for energy cooperation between the two countries.

This is part of efforts to promote renewable energy cooperation between Vietnam and Belgium, showing Vietnam's interest in Belgium's expertise and technology in renewable energy.

Vietnam, with its vast potential for renewable energy, has become the focus of international partners' attention, especially as the country is striving to transition to green energy. Among the countries showing particular interest in Vietnam, Belgium has emerged as one of the most important partners. This collaboration not only brings economic benefits but also contributes to protecting the environment, reducing greenhouse gas emissions, and responding to climate change.

Leading Belgian energy corporations such as ELIA, Luminus, AVALON L E, and BESIX are currently playing a significant role in implementing renewable energy projects in Vietnam.

Representatives from ELIA, which has extensive experience in operating power transmission systems, shared effective coordination ways among stakeholders such as transmission system operators, construction units, railways, and urban traffic authorities in implementing projects to upgrade and install power lines.

ELIA introduced approaches to minimise environmental and community impact while ensuring that project timelines remain unaffected.

Philippe Vermeulen, Chairman of Avalon Group said Belgium can apply many experiences of Vietnam, adding that Belgium also brings to Vietnam valuable lessons from the development of renewable energy and grid management to create strong connections and cooperation between the two countries.

Vermeulen also said Avalon has supported ELIA in network management and development projects in Vietnam.

Tran Ngoc Quan, Trade Counselor and head of the Vietnam Trade Office in Belgium, introduced Vietnam's energy development strategy up to 2030, and highlighted Vietnam’s vast potential for developing renewable energy, including wind power, solar power, and biomass.

Quan highlighted Vietnam's international cooperation potential within the framework of the Just Energy Transition Partnership (JETP), and the collaboration between Vietnam and the European Investment Bank (EIB) in mobilising funding for renewable energy projects and hydrogen development.

Ambassador Thao also underlined Vietnam’s great potential in renewable energy with its over 3,000 km of coastline, expressing his hope that with Belgium's extensive experience in this field, Belgian companies will continue to partner closely with Vietnam, contributing to developing a more sustainable, clean, and efficient energy system.

Close cooperation, experience and technology sharing between the two countries are expected to be key to realise this potential, helping Vietnam become one of the leading countries in renewable energy development in Southeast Asia, he said./.

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