A programme to promote investment and trade connectivity between Vietnamese enterprises and Singaporean partners was held by the  Investment & Trade Promotion Centre of Ho Chi Minh City ((ITPC), in the southern hub on August 23. 

HCM City is calling for investment in many projects in transport infrastructure, urban embellishment, environmental treatment, flood prevention, agriculture, industry, commerce and services.

According to Deputy Director of ITPC Cao Thi Phi Van, Singapore is now the 2nd biggest investor out of 140 countries and territories investing in Vietnam with a total registered capital of 66 billion USD. It is also the largest investor out of 116 countries and territories investing in Ho Chi Minh City with 1,557 projects worth nearly 13.6 billion USD.

Nguyen Quoc Vinh - Head of ITPC’s investment promotion department - pointed out advantages of HCM City that help the city become the top destination for  international investors in the country.

Located in the centre of the southern key economic zone, HCM City has a modern network of roads, railways, waterways and airway, he said, adding that the construction of transport infrastructure in adjacent localities is a lever for HCM City to better connect with the regional and international corridors.

The southern hub’s gross regional domestic product (GRDP) in the first half of 2022  increased by 3.82%. It’s export - import turnover in the first seven months of this year hit over 64 billion USD, ranking first in the country.

Vính said the city gives priority to attracting technology groups that are at the top of production chains,  which use high technology and have strengths in research and development; financial investors that use environmentally friendly technologies; investors in service sector with high added value; and automation-oriented industries using clean and renewable energy, among others. 

Amy Wee, Country Head of Singapore Business Federation in Vietnam, said that there are abundant investment opportunities in Vietnam thanks to policies to attract investment and institutional reform, and to open the door to international trade and  foreign investment. At the same time, she also pointed to outstanding problems like productivity, rising labour cost, gaps in infrastructure, high lease in industrial parks and a legal framework still in the process of building and finetuning.  

According to representatives of Singaporean businesses, Vietnam in general, and HCM City in particular, is an attractive destination for many large corporations and investment projects.

Singaporean SMEs also wanted to invest in areas where Singapore has strengths and Vietnam has needs such as information technology, banking and finance, retail services, agriculture, oil and gas, construction, healthcare, transportation and supply.

Long An seeks to attract more Japanese investors

The People’s Committee of the Mekong Delta province of Long An on August 23 held an investment promotion conference and a dialogue with Japanese enterprises.

Long An is now home to 131 Japanese projects valued at nearly 479 million USD, mostly in the districts of Duc Hoa, Ben Luc, Can Giuoc and Tan An city in the fields of wooden products, mechanical engineering, manufacturing and assembling of electronic spare parts, and food processing.

Speaking at the event, Chairman of the provincial People’s Committee Nguyen Van Ut asked competent agencies to follow directions by the provincial People's Committee to clear difficulties faced by businesses.

He emphasised that Long An always stays ready to offer all possible support to investors and those from Japan in particular to successfully do business in the province.

On this occasion, Japanese firms and leaders of relevant agencies signed memoranda of understanding on cooperation in training skilled workers up to Japanese standards and supply of workforce among Saigon Telecom Technology JSC, Foundation of Youth Empowerment, ISPACE Cybersecurity College and VALLEYCAMPUS Group.

Hanoi partners up with French business in aviation industry

The Department of Industry and Trade of Hanoi on August 23 inked an MoU with French company Advanced Business Events (ABE) on cooperation in developing a high-grade network of sustainable production, supply and consumption in the aviation industry.

Acting director of the department Tran Thi Phuong Lan noted the fast increasing demand for supply chains of products and services in the aviation industry in Southeast Asia, including in Vietnam and Hanoi in particular.  

She said the signing of the MoU will assist Hanoi in developing a high-grade network of sustainable production, supply and consumption in the aviation industry.

The cooperation will also help create a favourable environment for connecting Hanoi businesses with international supply chains of aviation products and services, helping them become suppliers.

The Hanoi official asked the ABE to help arrange for a Hanoi delegation to attend the Aeromart Toulouse event in France.

ABE is also expected to work with Hanoi to organize a series of business and investment matchmaking events between suppliers of aviation products and services in Hanoi with the global high-grade network of production and supply in the aviation industry, including the Aero Expo Hanoi & Vietnam Aviation Forum 2023.

Stéphane Castet, chairman of ABE, said with its experience and relations, the company will select suitable international partners for the events.

Eleven housing projects to receive preferential interest rate

The Ministry of Construction has identified 11 housing projects that are eligible for interest rate support of 2% a year from the State budget.

The move is in line with the Government's Decree No 31/2022/ND-CP issued in May 2022 on interest rate support from the State budget for loans to enterprises, cooperatives and business households.

The projects being approved this time include seven projects to build social housing and housing for workers, and four projects to renovate old apartment buildings in Ho Chi Minh City and southern Binh Dinh province.

Those projects in HCM City are the social housing project under Long Truong ward housing project in Thu Duc city with 558 apartments; Ly Thuong Kiet social housing project in ward 14, district 10 with 1,245 apartments; social housing project for workers to rent in the district 2 Industrial Cluster, in Thu Duc city with 1,040 apartments; project to replace old apartments at No 23 Ly Tu Trong in district 1; project at 128 Hai Ba Trung in district 1; project at 350 Hoang Van Thu street in Tan Binh district.

In Quy Nhon, Binh Dinh province, four social housing projects eligible for support are Tan Dai Minh with 854 apartments; Ecohome Nhon Binh with 1,380 apartments; An Phu Thinh with 926 apartments; and social housing project in North Ha Thanh River urban area in Nhon Binh ward with 342 apartments.

A project to renovate Tran Binh Trong apartment building at 145A Tran Hung Dao street is also subject to the preferential interest rate.

This is the second batch of projects getting the nod from the Ministry of Construction to receive State support. Previously, after reviewing reports from 41 localities that proposed 240 projects, the ministry approved four projects in the first batch.

Indian, Vietnamese firms seek stronger ties in building material sector

A visiting delegation of Indian business executives from the ceramic tile, porcelain floor, wall and decoration tile, bathroom sanitary ware and related industries met with their Vietnamese counterparts in Ho Chi Minh City to compare notes and seek tie-ups.

The Vietnam-India business meeting on August 23 saw Vishal Acharya of the Emerald Worldwide Connections Private Limited pointing out that India was the second largest ceramic tiles producer in the world after China and accounting for 20% of the global production.

India, like Vietnam, is a rapidly developing country, with booming construction, which is pushing up demand for tiles and other building materials, according to the businessman.

Indian enterprises are very interested in the Vietnamese market, and they want to not only export to the country but also invest and produce there.

Nguyen Huu Nam, Deputy Director of the Vietnam Chamber of Commerce and Industry’s Branch in HCM City (VCCI-HCM), said India was among the top 10 trading partners of Vietnam, which in turn was considered an important country in India's ‘Look East policy,’ which is reflected in the multi-faceted co-operation between the two countries in recent years.

Trade between the two nations reached 13.2 billion USD last year, up 36.6% year-on-year. India’s exports to Vietnam were worth 6.95 billion USD, up 56.7% from 2020, while Vietnam’s rose by 19.6%, he said. The two countries target soon reaching 15 billion USD in bilateral trade.

Vietnam, Japan agree on enhanced cooperation to improve supply chains

Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura co-chaired the 5th meeting of the Vietnam-Japan Joint Committee on Cooperation in Industry, Trade and Energy in Tokyo on August 23.

At the meeting, the two sides agreed on measures to strengthen regional and global supply chains, improve industrial competitiveness, promote cooperation in energy transformation towards carbon neutrality, and accelerate the progress of a number of important energy projects.

They also agreed to enhance the utilisation and effective implementation of free trade agreements (FTAs) and coordinate and support each other in multilateral frameworks such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP) and the Indo-Pacific Economic Framework for Prosperity (IPEF).

Notably, the Japanese side agreed with Minister Dien’s proposal on Japan's continued support for Vietnam in training industrial human resources and improving industrial competitiveness, and the early signing of a Memorandum of Understanding on cooperation in energy transformation to concretise projects to support Vietnam in energy transition with funding from the Asia Energy Transition Fund.

Japan will also support training and share experience related to liquefied natural gas (LNG) with Vietnam.

Workshop shares int'l experience in public debt management

International experience in public debt management was shared with Vietnam at a workshop held in Hanoi on August 23.

Models for a public debt management agency are diverse, and there are also many different debt management approaches and methods around the world, experts told the workshop held by the Ministry of Finance, the International Monetary Fund (IMF), the World Bank (WB), and the Swiss State Secretariat for Economic Affairs.

Many countries have set up debt management offices (DMOs) where debt management functions are concentrated to highly professionalise the work, they said, noting that the formation of DMOs is meant to ensure consistent, concerted, and all-round control of risks of borrowing, along with the implementation of the Government’s debt management policies and repayment plans.

Deputy Minister of Finance Nguyen Duc Chi said in Vietnam, the public debt management policy is connected with the fiscal and monetary ones. However, it has just focused on the mobilisation of concessional loans and those made according to international practices, but yet to fully monitor and assess all borrowings and debt transactions.

As the country’s economic stature has improved much and the accessibility to concessional loans will decline, more debt-related risks will occur, which requires uniform, consistent, and professionalised management to promote policymaking efficiency and achieve an appropriate structure of public debt expenses and risks, he said.

The official recognised the necessity to develop a DMO that matches international practices and Vietnam’s development level and management demand.

Data from the Finance Ministry showed that the public debt-to-GDP ratio has fallen over the last six years, to 43.1% (157 billion USD) in 2021 from 62.2% in 2016. Domestic debt increased considerably to account for 67.2% (2.2 quadrillion VND) of the Government debt at the end of 2021 while foreign debt has tended to decrease.

Nearly 120 Korean firms to join Vietnam-RoK B2B matching event

Close to 120 innovative enterprises from the Republic of Korea (RoK) are set to join Vietnamese startups, businesses and universities at the upcoming Vietnam-RoK B2B (business to business) matching event Mega Us Expo.

According to the organiser, the expo will take place in Ho Chi Minh City on September 21 and 22. It is co-organised by the Jeonbuk Centre for Creative Economy and Innovation (JBCCEI), Saigon Innovation Hub (SIHUB), JYGlobal Co. Ltd and the trade promotion centre Koretoviet.

Participating RoK firms will bring to the show more than 650 products in cosmetics, pharmaceuticals, IT, household appliances, and food, among others.

On display are software for smart and flexible business management, a test kit for quick and accurate identification of GM crops in the outdoor environment, beverage made from high-sugar cabbages, and the facial recognition technology in marketing.

Since the establishment of their diplomatic relations in 1992, the countries multiplied their trade by 160 times to 80.7 billion USD last year. They target the figure to hit 100 billion USD in 2023 and 150 billion USD in 2030.

Vietnam, Japan should accelerate implementation of ODA projects: Deputy PM

Permanent Deputy Prime Minister Pham Binh Minh on August 23 said he supports Vietnamese agencies and the Japan International Cooperation Agency (JICA) to hold regular meetings, seeking solutions to obstacles to ODA projects in Vietnam.

At a reception for JICA Executive Senior Vice President Junichi Yamada in Hanoi, Minh noted with pleasure the strong developments of the Vietnam-Japan strategic partnership for peace and prosperity in Asia.

Japan is always Vietnam’s leading strategic partner in ODA, accounting for 30% of the about 29.3 billion USD committed by foreign investors for the Southeast Asian nation, he continued.

Minh thanked the Japanese Government and people for their assistance over the past nearly three decades which has significantly contributed to spurring socio-economic development in Vietnam.

The Vietnamese Ministry of Finance has held working sessions with the Japanese Embassy to seek loans from the Japanese Government for the socio-economic recovery and development programme in Vietnam, with a focus on strategic infrastructure, transport infrastructure, digital transformation, climate change response, and health care, Minh said, asking the ministry to closely coordinate with JICA in the effort.

Trade surplus to hit 1 billion USD this year

Vietnam’s export revenue in 2022 is expected to reach about 368 billion USD, a year-on-year rise of 9.46%, according to a report by the Ministry of Industry and Trade (MoIT).

The number would surpass the targets set by both the Government and the ministry, at around 8%.

Meanwhile, import value is estimated at 367 billion USD in the year, resulting in a trade surplus of some 1 billion USD, fulling the set target, the report says.

In the first half of this year, export-import value was over 371.3 billion USD, including more than 186 billion USD worth of exports, up 17.3% from the corresponding time last year.

The export of the domestic economic sector rose 19.5%, higher the 16.6% increase of the foreign direct investment (FDI) sector, including crude oil, which, the ministry said, reflects efforts by domestic firms in production and business recovery and supply chain resumption amid difficulties.

Notably, during the six-month period, 29 items reported their export turnover surpassing 1 billion USD, four items more than the same period last year, making up 91.2% of the total value.

Da Nang hosts 42nd ASEAN Railway CEOs' Conference

The 42nd Association of Southeast Asian Nations (ASEAN) Railways Chief Executive Officers (CEOs)’ Conference opened in the central city of Da Nang on August 23.

As many as 170 delegates and observers from the industry in eight ASEAN countries, namely Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, and Vietnam, are participating in the three-day event.

Within the framework of the event, the delegates will visit Da Nang station to learn about the VNR’s operation and Hoi An ancient town to learn about Vietnamese culture, country and people.

The 42nd ASEAN Railway CEOs’ Conference is an annual and rotary activity hosted by railway sectors of ASEAN countries. It offers an opportunity for international organisations, regional and world's leading manufacturers and suppliers of railway equipment to seek cooperation opportunities and represent the latest technologies in the field.

Agricultural sector seeking ways to boost exports

Minister of Agriculture and Rural Development (MARD) Le Minh Hoan has suggested building an export market development strategy, where functions and tasks of management agencies are integrated.

Speaking at a recent working session between Prime Minister Pham Minh Chinh and representatives from Vietnamese trade offices abroad, Hoan said trade promotion should be combined with tourism and cultural promotion to create reciprocity among the agencies.

He proposed the PM instruct ministries and agencies to appoint agricultural counselors in key markets, who will help domestic firms get updates on export markets.

Relevant associations need to closely coordinate to reduce costs and risks, the minister continued, noting that an export alliance would help businesses raise their competitiveness while joining global supply chains.

In response, PM Chinh asked trade offices to continue with market research and give advice to the Government in the market development strategy, as well as recommendations to associations, enterprises and localities, helping them set out and adjust production and business plans.

The offices were also tasked with further seeking partners, connecting domestic and foreign firms, and attracting foreign investors to such areas as mechanics, processing-manufacturing, electronics, support industries, chemicals and pharmaceutical products.

They should pay more attention to sending Vietnamese trainees and workers abroad to enable them to access cutting-edge technologies, meeting Vietnam’s development requirements, the PM said.

He assigned the MARD to step up negotiations to boost the Vietnamese agricultural exports and promote shipments via the official channel, and coordinate with localities to ensure that their production follows set standards.

Agricultural restructuring policy contributes to rise in Vietnam’s rice prices: report

The Vietnamese government has issued an agricultural restructuring policy, by which the rice structure has been strongly adjusted, changing the rice cultivation protocols and paying more attention to improving rice quality rather than increasing production, according to a report by Research and Markets - the world's largest market research store.

This is one of the reasons for the rise in Vietnam’s rice prices mentioned in the Research Report on Vietnam's Rice Industry 2022-2031.

The report cites statistics showing that in 2015, Vietnam’s quality rice seeds accounted for only 35%-40% of the total seeds, while in 2020 the chart reached 75%-80%, and even in some places, the usage rate of quality rice seeds is as high as 90%.

Secondly, the report says, Vietnam has signed many FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), which creates conditions for a breakthrough in the country's rice exports.

Another reason is that many industries were affected by the COVID-19 pandemic in 2020, but the market demand for food has not decreased.

According to experts, the Mekong Delta is the centre of rice cultivation in Vietnam, contributing half of rice production and up to 95% of the country’s rice exports.

The report says Vietnam’s rice exports are to continue to rise in both volume and value in 2022-2031.

Its rice export value reached 3.1 billion USD in 2021, and rice has become a bright spot in Vietnam’s agricultural products exports.

Phu Tho works to lure US investors

A conference promoting investment in Phu Tho province in northern Vietnam took place in Washington DC on August 22.

At the event, Chairman of the provincial People’s Committee Bui Van Quang affirmed that Phu Tho is ready to welcome US enterprises and investors and stand side by side with them throughout their investment and operation processes.

Vietnamese Ambassador to the US Nguyen Quoc Dung stated that the embassy will connect Vietnamese and US partners in the spirit of harmonised interests and shared risks set by the Prime Minister.

With favourable geographic location, about 50km from Hanoi’s Noi Bai international airport, Phu Tho boasts potential and conditions for the development of industry, agriculture, services, and trade.

Its economy has grown 7.86% on an annual basis in recent years, reaching 3.5 billion USD in 2021. The local import-export revenue surpassed 16 billion USD last year and topped 12 billion USD in the first half of 2022.

Currently housing over 200 valid foreign-funded projects, the province is looking to attract investment in advanced technology, clean energy, IT, electronic devices, supporting industries, health care, and education, among others.

Hung Yen longan promoted among int'l diplomatic corps, industry associations

Diplomatic corps and industry associations from more than 20 countries visited Hung Yen on August 22 for an experiential event and friendly gathering hosted by local authorities to promote the northern province’s culture and signature fruit – longan.

Joining the trip was a delegation of the Ministry of Foreign Affairs and ambassadors from Palestine, Uruguay, Laos, Chile, Venezuela, South Africa, Cambodia, Myanmar, Italy, Algeria, the United States, the Republic of Korea, Mexico, Colombia and Turkey.

The foreign guests later took a tour around longan farms in Hong Nam commune where there are many centuries-old longan trees used to produce offerings to kings. The commune is now home to nearly 150 hectares of longan grown under the Vietnam Good Agricultural Practices (VietGAP) which generates more than 2,000 tonnes of fresh longan annually. Several farms here have been granted with Production Unit Code (PUC) for export to the US.

Finance ministry sets targets for banking system

The Ministry of Finance (MoF) has issued targets for restructuring banks in a bid to bolster the strength of Vietnam’s financial sector.

The MoF will coordinate with other ministries to set regulations on capital increases for State-owned credit institutions, especially the Bank for Agriculture and Rural Development of Vietnam (Agribank).

The MoF will also coordinate with the State Bank of Vietnam to apply International Financial Reporting Standards (IFRS) in accordance with financial reporting standards in Vietnam.

In addition, it will study and develop standards for debt valuation, including bad debts, with an aim to create a legal basis for debt valuation activities to ensure objectivity in debt valuation.

Ministries and agencies will have to report their results to the MoF’s Department of Banking and Financial Institutions before November 15 every year so the department can compile the results to send them to the SBV before November 30 every year.

The Government issued Decision No689/QĐ-TTg in June this year, which approved the project on restructuring the system of credit institutions associated with bad debt settlements in 2021-25. The project aims to create a clear and substantive change in the restructuring of the banking system.\

Under the decision, Vietnam will reduce the number of credit institutions and basically finish the settlement of poor-performing banks by 2025 to make the banking system more healthy and sustainable.

The project encourages investors to participate in the purchase, sale, consolidation and merger of credit institutions voluntarily to increase the size and competitiveness of the institutions to make the country's banking system among the top four in ASEAN by 2025.

Under the project, Vietnam also targets to have at least two to three commercial banks in the top 100 strongest banks in Asia by 2025.

The project stipulates that commercial banks' capital adequacy ratio will reach at least 10-11% by 2023 and at least 11-12% by 2025.

Large-sized banks, excluding weak ones, must have a minimum charter capital of 15 trillion VND, and the number for small- and medium-sized banks will be 5 trillion VND by 2025. The minimum charter capital required for financial companies and financial leasing companies is 750 billion VND and 450 billion VND, respectively.

For weak banks under the central bank's special control, the capital increase will be implemented according to plans approved by the competent authority.

The project also directs the Vietnam Asset Management Company to submit to competent authorities for consideration a plan to increase its capital to 10 trillion VND in 2022-25 to improve the financial capacity and operational efficiency of the agency in dealing with bad debts.

According to the project, the bad debt ratio on the balance sheet of credit institutions, excluding those of weak commercial banks, will be less than 3% by the end of 2025.

Vietnamese retail giants see opportunities in domestic market

Large Vietnamese retailers are trying to expand their scale, exerting competitive pressure on foreign competitors to find opportunities in the retail sector.

Vietnamese billionaire and THACO Group chairman Tran Ba Duong said his firm would expand its Emart supermarket chain so that by 2026, the chain aims to have 20 stores across the country and revenue of 1 billion USD.

This year, it plans to open two hypermarkets in HCM City, one in Thu Duc city’s Thu Thiem area in October and the other in Go Vap district in December. 

In July, Nova Consumer - a member of NovaGroup - completed the acquisition of Sunrise Foods. That laid a foundation for this firm to expand its distribution channel to 450,000 retail points in the future and promote e-commerce channels and increase exports, baodautu.vn reported.

At the same time, NovaGroup opened its first 2,000sq.m Nova Supermarket in HCM City as part of its plan to expand to more than 2,000 points of sale in the next three years across the country.

According to Vu Thi Hau, Chairwoman of Vietnam Retailers Association, the local retail market has gradually recovered and regained its growth momentum after the pandemic was controlled. 

Domestic consumers now have more information about products, brands and services, and their needs are increasingly demanding. Therefore, in the long term, small and medium enterprises need to have strategies to enhance the quality of their products and services, and produce according to the market's needs.

Vietnam’s retail sales of goods and services in July reached an estimated 486 trillion VND (20.8 billion USD), up 2.4% month-on-month, and 42.6% year-on-year, according to the General Statistics Office (GSO). In the first seven months, total retail sales are estimated at 3.2 quadrillion VND, up 16% compared to last year.

200 million USD channeled into Vietnam-Singapore III in Binh Duong

The Bank for Investment and Development of Vietnam (BIDV) and Vietnam-Singapore Industrial Park (VSIP) Joint Venture Company Limited on August 22 signed a credit contract to sponsor an investment project on the construction of VSIP III worth 4.6 trillion VND (200 million USD) in the southern province of Binh Duong.

The park is the third VSIP in Binh Duong – a major industrial hub of Vietnam, and the 11th in the country. Invested with over 13.3 trillion VND in total, it will cover 1,000ha in Bac Tan Uyen district.

The park will be have with uniform, green, and smart infrastructure to attract investment to the sectors of electricity, electronics, transport vehicle production and assembly, mechanics, support industry, textile - garment, food, beverage, and logistics services.

Petrol prices unchanged in latest adjustment

Petrol prices were kept unchanged in the latest adjustment made on August 22 by the Ministries of Industry and Trade, and Finance, after five consecutive downward adjustments.  

The capped retail price of E5 RON92 bio-fuel stayed at 23,720 VND (1.01 USD) per litre, while that of RON95-III remained at 24,660 VND per litre.

Meanwhile, the price of diesel oil was raised 850 VND to 23,750 VND per litre, and that of kerosene was up by 730 VND to 24,050 VND per litre. The prices of mazut oil stayed unchanged at 16,540 VND per kg.

Since the beginning of this year, petrol prices have been adjusted 22 times, with 12 times up and eight times down. The price of RON 95-III petrol has dropped by 8,210 VND cheaper and E5 RON92 by 7,580 VND per litre compared to the end of June. The current petrol prices have returned to the level in late 2021 and January this year.

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