There is ample room for Vietnam's power industry to develop in the future as the demand for electricity grows, a trend that is forecast to continue for the next decade, according to industry insiders.

According to Phu Hung Securities JSC (PHS), Vietnam has seen strong economic growth for the past 20 years, with annual average GDP expansion of around 13%.

Energy has been a vital factor in ensuring sustained economic growth during the period, PHS said.

According to forecasts from the World Bank, the Asian Development Bank (ADB), and Fitch Solutions, electricity consumption demand in Vietnam is surging, closely paralleling economic growth. Demand is expected to continue rising swiftly as the country's economy regains growth momentum of 6 - 8% per year in the coming years.

Furthermore, the robust influx of foreign direct investment (FDI) resulting from the supply chain shift is also a key factor supporting the development of energy sector in the country.

Analysts indicate that the FDI scale is closely tied to the expansion of Vietnam's economy from past to present, and the trend of high FDI growth in the future is certain to benefit the electricity sector as a significant portion of registered FDI capital (nearly 60% of the accumulated capital) is associated with the manufacturing and processing industries.

Over the past two decades, Vietnam's electricity output grew by over 11% per year, meeting a steady increase in electricity consumption. Since 2019, the proportion of renewable energy sources (solar, wind, and hydroelectric power) has rapidly increased, accounting for over 48% of the total power output in 2022.

Through incentive policies, particularly regarding pricing, the Vietnamese Government has successfully elevated the country to a leading position in the region in terms of the proportion of clean energy, surpassing many nations that were already strong players in this field, such as China, Australia, and Thailand.

Experts from PHS said that solar and wind power will undoubtedly be Vietnam's top priorities to meet the rapidly increasing electricity consumption demand, and achieve the zero-carbon goal in the upcoming decades.

The 8th Power Development Plan (PDP8) sets the goal of promoting renewable energy, aiming to raise the proportion of renewable energy sources to 67.5%-71.5% by 2050.

Royal Caribbean International commits to bringing cruise tourists to Vietnam

The Royal Caribbean International Group (RCI) hosted a ceremony on August 22 in the southern province of Ba Ria-Vung Tau in order to celebrate the recovery of the international cruise industry and committed to bringing passengers to Vietnam.

The event was held after Spectrum of the Seas, one of the world's most luxurious cruise ships, brought more than 4,000 international tourists, mainly from the United States, the UK, Australia, and Asian countries, to Vietnam.

Addressing the ceremony, Angie Stephen, managing director and vice president of Asia-Pacific of the RCI Group, emphasised that the group has longed to bring passengers back to the country, particularly as it is a popular destination for international tourists.

This year has seen the shipping line add Vietnam to two new itineraries, with the cruise ship returning to the country this September and October, she said, adding that the group will bring more new ships to visit Vietnam next year.

For his part, Nguyen Trung Khanh, director of the Vietnam National Authority of Tourism, said Vietnam is willing to become a longer and more frequent stopover for cruise travelers during their journey to discover Asia and Southeast Asia.

Visa policy and procedures aimed at welcoming more cruise passengers at Vietnamese seaports have been significantly improved compared to the previous period, he added.

Tran Thi Thu Hien, deputy director of Ba Ria - Vung Tau Department of Tourism, said the locality plans to promote Ba Ria - Vung Tau at a specialised fair on cruise tourism in Hong Kong (China) this October, and it is prepared to welcome more cruise ships ahead in 2024.

Ba Ria - Vung Tau will continue improving infrastructure, and building products associated with indigenous cultural traditions to serve cruise customers, she added.

Vietnam officially applied a new visa policy for international visitors on August 15. According to the changes, tourists with electronic visas (e-visas) will now be allowed to stay for up to 90 days, instead of the previous period of 30 days. 

Furthermore, citizens from countries that Vietnam allows to enter without visas will now be allowed to stay for up to 45 days, up from the previous duration of 15 days.

Thai group eyes investment projects in Thanh Hoa

Thailand’s Gulf Energy Development Public Company Limited wants to explore investment projects in the fields of renewable energy, liquified natural gas  and technical infrastructure in central Thanh Hoa province.

General Director of Gulf Energy Vietnam Panawit Sidejchayabhon unveiled the information at a recent working session with Thanh Hoa province’s leaders.

Vice Chairman of the provincial People's Committee Nguyen Van Thi appreciated this research collaboration and highlighted that renewable energy and liquefied petroleum are the province's priorities for the socio-economic development in the future.

He also introduced the Nghi Son Economic Zone, which is one of the eight crucial coastal economic zones. It offers the most alluring investment incentives in the nation, promoting cooperative relationships and economic growth.

At the meeting, Panawit Sidejchayabhon expressed his hope to receive support from local authorities in understanding the legal framework and implementing projects.

Thanh Hoa is always in the group of ten leading provinces and cities nationwide in attracting FDI from many big investors in the world, including Thai corporations such as WHA Group.

In the first seven months of the year, the province has received ten FDI projects worth 134.4 million USD in registered foreign capital.

Currently, the province is focusing on attracting investment in a number of advantageous fields, such as agriculture, afforestation, fishery seafood, the manufacturing industry, tourism, human resource training, healthcare, education, and the infrastructure of industrial parks.

Commercial banks continue to cut deposit interest rates

Commercial banks have persistently reduced deposit interest rates, resulting in rates for many terms now standing at just above 6% per annum.

In line with this trend, Military Bank (MB) has revised its rates downward by 0.1-0.2 percentage point per year as of August 15, 2023. Significantly, the 12-month term interest rate at MB has fallen to a mere 6.1% per annum. This represents the lowest deposit rate within the banking system, and is even lower than the interest rate for the equivalent term at the four largest State-owned commercial banks: Vietcombank, VietinBank, BIDV, and Agribank.

Interest rates for other terms at MB have been set as follows: 4-4.2% per annum for 1-3 month deposits; 6-6.1% per annum for 6-9 month deposits; and 6.4-6.6% per annum for 13-36 month deposits. Notably, the 6.6% rate is the highest deposit interest rate offered by MB, and this applies to customers making deposits of 24 months or longer in the central and southern regions of Vietnam.

This week has also seen several other banks, including BaoVietBank, GPBank, and VIB, lowering their interest rates by 0.1-0.5 percentage point.

Specifically, the highest interest rate at BaoVietBank is only 7.4% for customers who deposit online for a term of 24-36 months and receive interest at the end of the period. BaoVietBank applies an interest rate of 4.4-4.75% per year for terms of less than 6 months and 6.8-7% per year for a term of less than 12 months.

Similarly, at GPBank, the highest interest rate has decreased by 0.4 percentage point per year compared to last week to only 6.95% per year for terms of 13 months or more when depositing online. Interest rates for 6- and 12-month deposits have also decreased to 6.65% and 7.25% per year, respectively.

At VIB, the highest deposit interest rate was down from 6.9% per year in early August to 6.7% per year currently. The rates for 6-month and 12-month deposits at VIB also see similar reductions to 6.4 and 6.5% per year

Previously, many banks, such as SHB, and HDBank, reduced their deposit interest rate by 0.1-0.2 percentage point per year. In which, SHB applies the online deposit interest rate of only 6.7% per year for the terms from 6 to 8 months; 6.8% per year for terms of 9-11 months and 6.9% per year for terms of 12 months or more.

At VietABank, the interest rate for deposits from 6 to 11 months is 7% per year and 7.3% per year for 12-18 month deposits.

HDBank has also reduced its highest interest rate to 9.1% per year from 9.3% per year as applied previously for customers depositing 300 billion vND or more with a term of 13 months. For 13-month deposits worth under 300 billion VND, the interest rate at HDBank is 7.35% per year. With a term of 12 months, HDBank applies an interest rate of 8.6% per year for deposits of 300 billion VND or more and 7% per year for deposits of less than 300 billion VND.

Currently, the deposit interest rate of more than 7% per year is only listed at a few banks such as DongABank, Viet A Bank and NCB. Only DongABank is listing the highest interest rate in the banking market at 8.3% per year, applicable to deposits of more than 1 billion VND with 13-month terms.

Deposit interest rates at commercial banks have started to cool down since the end of the first quarter of 2023 and fell deeply after four policy interest rate cuts made by the State Bank of Vietnam (SBV), which is expected to create more room for banks to continually cut lending interest rates.

The SBV early this week also directed commercial banks to continually reduce lending interest rates by 1.5-2 percentage points per year at a minimum for both outstanding loans and new loans.

Under Document No. 6385/NHNN-CSTT, the SBV requires banks to report their commitment to reducing lending interest rates in 2023 for outstanding loans and new loans before August 25 this year and the results of their commitments before January 8 next year.

Wood product export shows signs of gradual recovery

The export value of wood and wood products was estimated at nearly 1.1 billion USD in July, bringing the total export earnings of the industry in the first seven months of this year to 7.1 billion USD, down 25% year on year, according to data of the Ministry of Agriculture and Rural Development.  

A survey of the Handicraft and Wood Industry Association of Ho Chi Minh City showed that orders that the industry received dropped by an average 30% in the recent past, but more orders returned in July ahead of the year-end shopping season.

Chairman of Global Integration Business Consultants (GIBC) Pham Phu Ngoc Trai held that the reduction in orders of the wood industry is only temporary.

The rise to over 1 billion USD in July export revenue after a steep decline for quite some time is a sign that the industry is seeing gradual recovery.

Insiders said that as the US economy begins to stabilise and construction needs begin to rise again in the second half of the year, the consumption of wood products is likely to improve.

The wood processing industry in Vietnam has maintained a double-digit growth of 15.4% for many years, placing the country in the top five biggest furniture exporters in the world.

The wood and forest product industry set the goal for export value of 17.5 billion USD this year, a slight increase over 2022, which was at 17.1 billion USD, which could be challenging as global consumption demand declines.

EC launches anti-dumping, anti-subsidy investigations into Việt Nam’s cold-rolled stainless steel

The European Commission (EC) has announced the launch of anti-dumping and anti-subsidy tax investigations into cold-rolled stainless steel products imported from Việt Nam, Taiwan (China) and Turkey, according to the Trade Remedies Authority under the Ministry of Industry and Trade.

The investigations are being conducted at the request of the European Steel Association (EUROFER).

The products concerned by the possible circumvention are flat-rolled products of stainless steel, not further worked than cold-rolled (cold-reduced) under CN codes 7219 31 00, 7219 32 10, 7219 32 90, 7219 33 10, 7219 33 90, 7219 34 10, 7219 34 90, 7219 35 10, 7219 35 90, 7219 90 20, 7219 90 80, 7220 20 21, 7220 20 29, 7220 20 41, 7220 20 49, 7220 20 81, 7220 20 89, 7220 90 20 and 7220 90 80 and originating from Indonesia.

The EC’s announcement clarifies that a change in the pattern of trade involving exports from Indonesia, as well as Taiwan, Turkey and Việt Nam to the European Union has taken place following the imposition of the existing anti-dumping measures.

This change appeared to stem from a practice for which there is insufficient due cause or economic justification other than the imposition of the duty, namely the consignment of the product concerned via Taiwan, Turkey and Việt Nam to the European Union after having undergone assembly/completion operations in Taiwan, Turkey or Việt Nam respectively.

The evidence provided by the applicant shows that such assembly/completion operations, starting from stainless steel slabs and/or stainless steel hot-rolled flat products originating in Indonesia, constitute circumvention as the operations started or have substantially increased since the initiation of the original anti-subsidy investigation.

The stainless steel slabs and/or stainless steel hot-rolled flat products originating in Indonesia constitute above 60 per cent of the total value of the parts of the assembled product and the value added during the assembly/completion operations is lower than 25 per cent of the manufacturing cost.

Furthermore, the evidence shows that because of the practices described above, the remedial effects of the existing countervailing measures on the product concerned are being undermined both in terms of quantity and prices. Significant volumes of imports of the product under investigation appear to have entered the EU market. In addition, there is sufficient evidence that imports of the product under investigation are made at injurious prices, according to the EC.

The investigations will be implemented in nine months. Interested parties must make themselves known by contacting the EC within 15 days from the announcement, and can apply to be heard by the commission within the same 37-day time limit.

In order to ensure their legitimate rights, the authority advised relevant businesses and exporters to study the procedures and comply with the time, format and content regulations set forth by the EC, while showing their comprehensive cooperation with the EC during the investigations, and contacting the authority for information and support. 

HOREA pushes for revisions in central bank’s circular

The HCMC Real Estate Association (HoREA) is pushing for changes in Circular 06 over concerns that the circular might hinder enterprises’ ability to secure bank loans.

This circular, scheduled to take effect in early September, amends and supplements certain provisions of Circular 39/2016 governing bank lending.

If implemented, banks could be restricted from offering loans for crucial activities such as capital contributions, equity transfers, and capital repayment.

This limitation could impede businesses’ access to credit, said Le Hoang Chau, Chairman of HoREA. He proposed the removal of Article 8, Clause 8, which imposes these restrictions.

HoREA’s proposal also involves eliminating constraints on lending for capital needs of projects approved by state agencies, as outlined in Article 9, Clause 8 of the circular. The association highlighted the potential impact of this regulation on various investment projects, potentially hindering development initiatives.

With over 40,000 real estate enterprises nationwide, encompassing both listed and non-listed companies, HoREA’s suggestions aim to level the lending landscape. It emphasized that the proposed changes would foster equality among enterprises, facilitating a broader spectrum of real estate projects’ access to credit.

Furthermore, HoREA supports revising Article 10, Clause 8, to extend the time frame for evaluating costs incurred by business operation projects, aligning with practical market conditions. The suggested 12-month period could be extended to 24 or 36 months, accommodating projects affected by legal hurdles.

HoREA pointed out that a significant 70% of projects are halted due to legal obstacles, awaiting decisions from authorities rather than being the fault of the businesses.

Success of North-South Expressway depends on materials, site clearance: managers

Construction progress of the North-South Expressway project phase two, which lasts between 2021-25, is dependent on site clearance and construction materials supplied by localities, said construction managers.

A report of the Ministry of Transport (MoT) last Thursday said that localities had actively implemented site clearance for the project.

So far, the project had been handed over 89 per cent of the site, up by two per cent compared with last month.

As much as 80 per cent of the site could be built, an increase of three per cent compared to the previous month.

Construction for resettlement areas and technical infrastructure relocation, especially high-voltage power lines, was being conducted but was still slow, the report said.

As for construction materials, the MoT said last month, it attested exploitation registration for 42 out of 69 material exploitation sites. As many as 15 out of those 42 sites were operating.

The sites that had not been exploited were mainly due to uncompleted negotiations with the land owner on prices, land use rights and capital contribution.

Some exploitation sites would also have to carry out procedures for changing land use purposes.

Although the Prime Minister assigned sand supply targets to different provinces - such as An Giang 33 million cubic metres, Đồng Tháp 0.5 million cubic metres and Vĩnh Long five million cubic metres - for the Cần Thơ-Cà Mau Expressway sub-project, some localities did it slowly, not meeting the requirements, according to the MoT.

Participating directly as an investor in the Quảng Ngãi-Hoài Nhơn Expressway sub-project, Cao Việt Hùng, deputy director of the Project Management Board No. 2, said that the project had handed over 76km out of 88km, or 86.3 per cent.

Of this length, Quảng Ngãi Province handed over 53.4km out of 60.3km, or 88.45 per cent, and Hoài Nhơn Town in Bình Định Province handed over 22.6km out of 27.7km, or 81.8 per cent.

However, Hùng revealed that contractors could access only about 68.5km out of 88km, or 78 per cent.

The remaining sections had not been constructed because there is no road to access the construction site.

Localities were relocating technical infrastructure works for 13 sections of the route, leading to interruptions in construction.

A delay in licensing the material exploitation sites had greatly affected overall progress, leading to lower construction output than planned.

On that basis, the Project Management Board No. 2 proposed to solve problems related to ground clearance, and hand over the remaining sections soon so that the contractors can implement their work.

To complete the North-South Expressway project phase two by 2025, the MoT directed contractors to take advantage of favourable weather conditions to organise overtime construction.

It requested localities to complete ground handover of the entire route in the third quarter of this year.

Localities must carefully review procedures to determine the cost of compensation for site clearance and prevent unreasonable costs inconsistent with the framework approved by the PM and the laws.

Provinces and cities where the project passes through must set up working groups under the PM’s direction to negotiate with land owners to ensure they are consistent with the compensation prices prescribed by the State.

They should apply sanctions for cases of deliberately raising prices, and complete procedures to exploit 27 sites this month and the remaining 27 sites next month. 

The MoT also proposed the Ministry of Natural Resources and Environment should soon draft a report to the National Assembly on changing the land use purpose of the project.

It should soon advise the Government to allow Hà Tĩnh, Quảng Bình, Quảng Ngãi, Bình Định, Phú Yên and Khánh Hòa provinces to increase the capacity of licensed sand mines. 

Woodworking firms increase advertising, expo participation

Given the protracted decline in orders, many businesses in the wood processing industry have increased their marketing campaigns and participation in furniture and wood product exhibitions to boost sales and enhance operations.

Dang Quoc Hung, general director of Alliance Handicraft & Wooden Fine Art Corporation, said the export of wooden furniture has increased slightly, but the total export volume of wooden furniture has remained modest.

Data showed that in the first seven months of 2023, Vietnam’s wooden furniture export revenue dropped 26.2% year-on-year to US$7.2 billion.

His statement was made during a recent press briefing on the international fair for furniture and fine arts exports, or VIFA ASEAN 2023, set to take place from August 29 to September 1 in District 7, HCMC.

According to Hung, a drop of orders in the traditional markets has compelled businesses in the industry to seek out new markets, such as the Middle East, Africa, and ASEAN, among others. “Notably, local firms want to get into the ASEAN market by receiving potential orders at VIFA ASEAN 2023,” he added.

The event will bring together domestic and international manufacturers from the wood and fine art industries. Participants will include leading businesses from the U.S., South Korea, China, Japan, India, the Netherlands, Hong Kong, Malaysia, Thailand, and Cambodia, among others.

In its inaugural edition, VIFA ASEAN has garnered significant attention, attracting the participation of nearly 200 businesses with their products to be showcased in over 600 booths. The event is expected to welcome over 2,000 international visitors.

Wood industry experts are optimistic about the potential positive impact of VIFA ASEAN 2023 on the development of HCMC as a prominent trade hub for furniture, interior, and exterior furnishings in ASEAN.

According to Tran Hoai Huu, director of Gia Nhien Co., Ltd., businesses are likely to get additional orders through their diligent promotion on Alibaba e-commerce platforms, as well as their active participation in fairs and exhibitions.

Simultaneously, the company has implemented a robust discount programs in order to attract customers, he added.

Hanoi striving to shore up industrial production

The index of industrial production (IIP) in Hanoi rose by just 2.3% year on year in the first half of 2023, making it a heavy task for the city to reach the year’s IIP growth target of 7.5 - 8%.

During H1, several processing and manufacturing sectors expanded compared to the same period last year such as beverages up 24.5%; pharmaceuticals, pharmaceutical chemistry, and medicinal materials 17.4%; and products made from cast metals 9.9%. Meanwhile, a number of other industries contracted, including machinery and equipment down 31.6%, printing and copying 9%, leather and related products 5.6%, and textile 5%, according to the municipal Department of Industry and Trade.

The sales of industrial products also fell 1.3% during the period, leading to a year-on-year increase of 16.9% in the inventory index as of June 30.

Meanwhile, Hanoi recorded 8.1 billion USD in export, down 2.7% from a year earlier. The overseas shipments of such main commodities as textile - garment, timber and wood products, footwear, and leather products declined.

Nguyen Thi Phuong, Director General of the Song Phuong Trading and Manufacturing JSC, said that declining orders, difficult sales, high material expenses, and unstable power and fuel supply have affected production and business activities.

Acting Director of the Department of Industry and Trade Tran Thi Phuong Lan said the COVID-19 pandemic, the Russia - Ukraine conflict, and tightened monetary policies have affected the global economy. As a result, the Vietnamese economy has also been impacted as seen in decreasing exports, lower purchasing power in the domestic market, and a growth slowdown in production and business activities.

In that context, Hanoi has sustained industrial production growth faster than the national average, but the pace is much slower than this year’s target, she noted, pointing out obstacles to functional industrial clusters, the construction of new ones, and the development of many industrial sectors.

To accelerate the recovery of industrial production in the remaining months of 2023, the Department of Industry and Trade will coordinate with relevant associations, businesses, and units to learn about difficulties, causes, and demand of local enterprises. They will devise solutions to bottlenecks to speed up industrial production growth, with a focus on the projects, plans and programmes that support the development of key and supporting industries, Lan noted.

She said her department will organise training courses to help industrial enterprises improve the capacity of governing, marketing, integrating into the world economy, accessing advanced technologies, exporting to key markets, and capitalising on free trade agreements, thereby promoting their competitiveness.

It will work with related agencies to build a plan on holding the Hanoi supporting industry show 2023, which will feature workshops and activities connecting businesses and helping them attract investment.

Besides, municipal departments and agencies, along with district-level authorities, will work to complete infrastructure of existing industrial clusters and accelerate the building of new clusters to create conditions for enterprises to expand operations, according to the official.

Nguyen Van, Vice Chairman of the Hanoi Supporting Industries Business Association (HANISBA), held that amid export difficulties, apart from measures taken by authorities, enterprises should also enhance their connectivity with one another to boost the sales of each other’s products and foster their synergy so as to be capable of fulfilling bigger orders, further engage in supply chains of foreign and large firms, and facilitate sales.

Railway proposed to link Vung Ang Port with Laos

A consortium has proposed a railway running 103 kilometres through Vietnam’s central provinces of Ha Tinh and Quang Binh that border Laos.

Vietnamese infrastructure developer Deo Ca Group and Petroleum Trading Lao Public Company have sought the permission of Vietnam’s Ministry of Transport to build the railway at 27.485 trillion VND (1.16 billion USD) in the public-private partnership (PPP) format.

The railway section, called Vung An – Tan Ap – Mu Gia, will run from Vung Ang Port in Ha Tinh province to Mu Gia, a mountain pass in the Annamite Range between Vietnam and Laos.

The consortium pledged to cover all the funds for studying the project and accept all financial damage if the project’s feasibility study was not approved.

The proposed railway is part of a Vietnam - Laos railroad project, a 554-kilometre line that will connect the Lao capital of Vientiane with Vung Ang Port. The railroad has been approved by the Vietnamese Prime Minister to be carried out before 2030.

In March, Deo Ca Group and Petroleum Trading Lao Public Company signed a joint venture agreement to develop the project.

Once put into operation, the project is expected to enhance freight forwarding services between Vietnam and regional countries, notably from Vung Ang Port to economic centres in the north of Laos and the southern part of China.

Tien Giang attracting investments to industrial parks

Thanks to efforts in removing difficulties and obstacles, reforming administrative procedures and improving the investment and business environment, the Mekong Delta province of Tien Giang has achieved many positive results in attracting investment to industrial parks (IPs), contributing to creating jobs and incomes for workers.

According to head of the management board of industrial parks in the province Nguyen Nhat Truong, Tien Giang has been allowed by the Prime Minister to build seven IPs with a total area of 2,083 hectares. To date, three IPs of My Tho, Tan Huong, and Long Giang have been put into operation.

As of late July, they had attracted 110 investment projects, including 81 foreign-invested ones totaling 2.4 billion USD, and 29 domestic ones worth over 4.8 trillion VND (201 million USD). More than 88,000 labourers are working in these IPs.

In the past two quarters, the combined revenue of the FDI enterprises in the province was over 1.83 billion USD, and that of domestic ones more than 3.2 trillion VND. The total export turnover of businesses in industrial zones in the province topped than 1.6 billion USD.

Duong Chan Vu, Deputy General Director of Long Giang Industrial Park Development Co., Ltd. said that since its establishment in 2007, the company has invested 100 million USD in developing modern infrastructure for the whole industrial zone. It has attracted 56 enterprises from China, Japan, the Republic of Korea, and Malaysia to invest in building factories with a total capital of more than 1.6 billion USD. Annually, the zone contributes more than 2 billion USD to Tien Giang's GRDP, and is creating jobs for about 25,000 workers.

Chairman of the provincial People's Committee Nguyen Van Vinh said that to remove difficulties and obstacles for businesses, the committee has established a team to appraise non-state budget investment projects in the province. The team is responsible for reviewing and appraising projects in the area to transfer to relevant agencies for settlement in accordance with regulations; and addressing recommendations, removing difficulties and obstacles, and creating favourable conditions for investors to implement their projects.

In addition, the provincial People's Committee has assigned the responsibility to the management board to regularly monitor the production and investment situation of investors at IPs, in order to promptly support and help them solve difficulties.

On the other hand, the committee has also assigned the Department of Planning and Investment to advise it to balance the budget capital to invest in improving the infrastructure linked to industrial zones, and create favourable conditions for investment attraction.

Three growth scenarios set for southeastern region

Growth in Vietnam's southeastern region could reach 8.07% annually during the 2021-2030 period, according to a report by the Institute of Development Strategy under the Ministry of Planning and Investment (MPI).

The report said the region has become a dynamic development area in recent decades with rapid growth recorded on all fronts including economic, financial, commercial, service, education and job training. 

The Southeastern region has been home to a skilled labour force and one of the country's leaders in science and technology, innovation and digital transformation.

According to MPI, projected growth for the region was between 6.04% to 8.07% annually for the period. 

In scenario 1 or the low-growth scenario, the projected gross regional domestic product (GRDP) growth rate is expected to average 4.92% per year for the period 2021-2025, and reach an average of 7.18% per year for the period 2026-2030. Overall for the period, the average growth rate is projected to be 6.04% per year. For the period 2031-2050, the expected growth rate is around 6.85% per year.

During the period 2021-2030, the contribution of total factor productivity (TFP) to growth is estimated to be 46.8%; labour productivity growth is expected to average 5.4% per year. The projected average per capita income is around 200 million VND (8,200 USD) by 2025, 315 million VND (11,800 USD) by 2030, and 833 million VND (38,500 USD) by 2050.

An estimated investment capital of around 11.4 quadrillion VND will be needed during the period 2021-2030, which is 2.1 times the amount required during 2011-2020. The investment-to-GRDP ratio at current prices is expected to be around 27%.

In scenario 2 or the medium-growth scenario, the projected GRDP growth rate is expected to average 5.48% per year for the period 2021-2025, and reach an average of 8.66% per year for the period 2026-2030. Overall for the period, the average growth rate is forecast to be 7.06% per year. For the period 2031-2050, the expected growth rate is around 7.2% per year.

During 2021-2030, the contribution of total factor productivity (TFP) to growth is estimated to be 50.9%; labor productivity growth is expected to average 6.4% per year. The projected average per capita income is around 205 million VND (8,400 USD) by 2025, 345 million VND (13,000 USD) by 2030, and 1 billion VND (38,500 USD) by 2050.

An estimated investment capital of around 12.3 quadrillion VND will be needed during 2021-2030, which is 2.3 times the amount required during 2011-2020. The investment-to-GRDP ratio at current prices is expected to be around 28%.

In scenario 3 or the high-growth scenario, the projected GRDP growth rate is expected to average 5.97% per year for the period 2021-2025 and 10.2% per year for the period 2026-2030. Overall for the period, the average growth rate is projected to be 8.07% per year. For the period 2031-2050, the expected growth rate is around 7.6% per year.

During the period 2021-30, the contribution of total factor productivity (TFP) to growth is estimated to be 58.5%; labour productivity growth is expected to average 7.4% per year. The projected average per capita income is around 210 million VND (8,600 USD) by 2025, 380 million VND (14,500 USD) by 2030, and 1.2 billion VND (53,000 USD) by 2050.

An estimated investment capital of around 15.8 quadrillion VND will be needed during the period 2021-2030, which is three times the amount required during 2011-2020. The investment-to-GRDP ratio at current prices is expected to be around 32%.

The projection was made based on a number of input variables such as economic, trade, and investment growth, demographic changes, social issues, climate change, the impact of the Fourth Industrial Revolution and Vietnam's developmental strategy.

The institute said the region has been and is to play a crucial role in the country's next socio-economic development phase. In 2022, the region's GRDP accounted for about 31 % of Vietnam's GDP with exports at 35% and regional budget at 38%.

Vietnam Airlines obtains security certification of PCI DSS Compliance Level 2

The website, www.vietnamairlines.com, and mobile app of Vietnam Airlines have been granted the international security certification of PCI DSS Compliance Level 2.

The certification means information of clients using credit cards for transactions on online channels of the national flag carrier is protected from scams or security breaches.

Vietnam Airlines is currently the first and only carrier of Vietnam to be granted the certification of PCI DSS Compliance Level 2, which is for merchants that process 1 - 6 million credit card transactions annually.

PCI DSS, the abbreviation for Payment Card Industry Data Security Standard, is an international security standard developed by the PCI Security Standards Council, a non-profit organisation set up by credit card companies such as Visa, MasterCard, American Express, Discover and JCB.

The main target of PCI DSS is to ensure appropriate security protection measures are taken to protect clients’ information and property during credit or debit card payments.

To meet PCI DSS Compliance Level 2, Vietnam Airlines has to satisfy 12 groups of strict standards for its entire infrastructure system.

PCI DSS has four compliance levels based on the number of annual card transactions a merchant processes: Level 1 – over 6 million card transactions annually (usually for banks), Level 2 – 1 to 6 million transactions annually, Level 3 – 20,000 to 1 million transactions annually, and Level 4 – fewer than 20,000 transactions annually.

Earlier, Vietnam Airlines had achieved the PCI DSS certification for merchants with less than 1 million card transactions each year.

Three growth scenarios set for southeastern region

Growth in Vietnam's southeastern region could reach 8.07% annually during the 2021-2030 period, according to a report by the Institute of Development Strategy under the Ministry of Planning and Investment (MPI).

The report said the region has become a dynamic development area in recent decades with rapid growth recorded on all fronts including economic, financial, commercial, service, education and job training. 

The Southeastern region has been home to a skilled labour force and one of the country's leaders in science and technology, innovation and digital transformation.

According to MPI, projected growth for the region was between 6.04% to 8.07% annually for the period. 

In scenario 1 or the low-growth scenario, the projected gross regional domestic product (GRDP) growth rate is expected to average 4.92% per year for the period 2021-2025, and reach an average of 7.18% per year for the period 2026-2030. Overall for the period, the average growth rate is projected to be 6.04% per year. For the period 2031-2050, the expected growth rate is around 6.85% per year.

During the period 2021-2030, the contribution of total factor productivity (TFP) to growth is estimated to be 46.8%; labour productivity growth is expected to average 5.4% per year. The projected average per capita income is around 200 million VND (8,200 USD) by 2025, 315 million VND (11,800 USD) by 2030, and 833 million VND (38,500 USD) by 2050.

An estimated investment capital of around 11.4 quadrillion VND will be needed during the period 2021-2030, which is 2.1 times the amount required during 2011-2020. The investment-to-GRDP ratio at current prices is expected to be around 27%.

In scenario 2 or the medium-growth scenario, the projected GRDP growth rate is expected to average 5.48% per year for the period 2021-2025, and reach an average of 8.66% per year for the period 2026-2030. Overall for the period, the average growth rate is forecast to be 7.06% per year. For the period 2031-2050, the expected growth rate is around 7.2% per year.

During 2021-2030, the contribution of total factor productivity (TFP) to growth is estimated to be 50.9%; labor productivity growth is expected to average 6.4% per year. The projected average per capita income is around 205 million VND (8,400 USD) by 2025, 345 million VND (13,000 USD) by 2030, and 1 billion VND (38,500 USD) by 2050.

An estimated investment capital of around 12.3 quadrillion VND will be needed during 2021-2030, which is 2.3 times the amount required during 2011-2020. The investment-to-GRDP ratio at current prices is expected to be around 28%.

In scenario 3 or the high-growth scenario, the projected GRDP growth rate is expected to average 5.97% per year for the period 2021-2025 and 10.2% per year for the period 2026-2030. Overall for the period, the average growth rate is projected to be 8.07% per year. For the period 2031-2050, the expected growth rate is around 7.6% per year.

During the period 2021-30, the contribution of total factor productivity (TFP) to growth is estimated to be 58.5%; labour productivity growth is expected to average 7.4% per year. The projected average per capita income is around 210 million VND (8,600 USD) by 2025, 380 million VND (14,500 USD) by 2030, and 1.2 billion VND (53,000 USD) by 2050.

An estimated investment capital of around 15.8 quadrillion VND will be needed during the period 2021-2030, which is three times the amount required during 2011-2020. The investment-to-GRDP ratio at current prices is expected to be around 32%.

The projection was made based on a number of input variables such as economic, trade, and investment growth, demographic changes, social issues, climate change, the impact of the Fourth Industrial Revolution and Vietnam's developmental strategy.

The institute said the region has been and is to play a crucial role in the country's next socio-economic development phase. In 2022, the region's GRDP accounted for about 31 % of Vietnam's GDP with exports at 35% and regional budget at 38%.

Project launched to increase Cao Son coal mine's capacity

Cao Son Coal Joint Stock Company under Vietnam National Coal and Mineral Industries Group (Vinacomin) has launched a project to restore, expand and increase the capacity of Cao Son coal mine in Cam Pha city in the northeastern province of Quang Ninh.

This is one of the group's key projects in its sustainable development strategy, gradually ensuring national energy security and contributing to the socio-economic development of the province and the country.

The project was approved by the Prime Minister under Decision No. 403/QD-TTg dated March 14, 2016 for the period until 2020 with consideration until 2030.

The project has a total investment of nearly 1.83 trillion VND (77 million USD). After completion, the mine is expected to have a capacity of 4.5 million tonnes of raw coal a year, with a coal reserve of about 65.7 million tonnes of raw coal. The project will been implemented for 22 years with a planned land use area of 958.3 ha, generating jobs and stable incomes for about 3,400 employees.

Pham Quoc Viet, Director of the Cao Son Coal Joint Stock Company, said that the project is the continuation of another on restoring, expanding and increasing the capacity of the Cao Son coal mine, which started in 2008 and was completed on December 31, 2022.

The company will strive to implement the project with the highest efficiency, continue to maintain stable production and business activities, create jobs and incomes for thousands of employees. At the same time, it will commit to fully implement the processes and regulations of the laws on construction investment, natural resources and environment and other related fields, he added.

Vinacomin Deputy General Director Vu Anh Tuan asked the Cao Son Coal Joint Stock Company to implement the project in accordance with the provisions of laws and ensure the project's efficiency and sustainability.

The company was also requested to continue improving and effectively handling arising issues in the process of exploiting the project, ensuring safety, life and income for employees, and guaranteeing sufficient coal supply for the economy, thus helping to ensure national energy security.

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