The EU-Vietnam Free Trade Agreement (EVFTA), which has been effective for three years, has generated positive results, reflected by a record in the trade between Vietnam and the EU, including Germany, according to Dr. Daniel Müller, Regional Manager for ASEAN at the German Asia-Pacific Business Association.

He cited data from the German Federal Statistics Office in August as showing that the trade hit 64.3 billion EUR (70.26 billion USD) and that between Vietnam and Germany was 18.1 billion EUR in 2022. In the year, Vietnam enjoyed a 38.9 billion EUR trade surplus with the EU and 11.3 billion EUR with Germany.

The direct and positive effects of the EVFTA on this increase in trade volumes are reasonable, he said, adding that trade in services also increased, bringing a surplus to the EU.

For German businesses, the deal is considered an important "addition" in establishing new economic relations or expanding existing commitments with Vietnam. As the EVFTA will gradually eliminate tariffs over the next few years, further positive effects can be expected, he said.

Dr. Müller said that thanks to the EVFTA, access to particular trade areas in Vietnam has become binding and more reliable. The competitive advantages that Vietnam has enjoyed when joining the EVFTA have also made other ASEAN countries such as Thailand and Indonesia more interested in a similar deal with the EU, he added.

Overall, the deal has generated good outcomes for both sides, he said, noting Vietnam’s export has risen considerably and EU and Germany have benefited from importing goods from Vietnam.

According to the expert, businesses should actively grasp and exploit opportunities from EVFTA. He stressed the need to provide more consultations for Vietnamese firms, especially- small and medium-sized enterprises to penetrate the EU market.

He advised Vietnamese firms to enhance their export capacity. The Vietnamese Government should continue to implement commitments, especially in improving the legal framework for foreign businesses, including the protection of intellectual property rights.

Meanwhile, it remains to be seen how the Supply Chain Act, which has now taken effect from Germany and a similar law coming from the EU, will have an impact on the supply chain from Vietnam, he said.

Dr. Müller highlighted the advantages in bilateral cooperation as the economies and businesses of the two sides can greatly supplement each other. German companies, with their technology and experience, can contribute to the automation and digitisation of the production processes in Vietnamese companies as well as the improvement of productivity in Vietnam.

He held that the two sides can work together to build and develop a network of suppliers for the demanding industrial production of German companies in Vietnam. The two sides can also collaborate in the workforce development. German companies should systematically support their partners in Vietnam to help them meet the strict standards of exporting into the EU and also to increase the resilience of the supply chain.

However, the expert advised businesses to carefully explore each other’s characteristics as well as the business culture to avoid uncertainties and even disappointments. Regular exchanges and contacts between businesses of the two countries can be a solution to this problem, he suggested.

Immediate actions required to prevent forest loss in coffee production: official

The coffee industry must take action immediately to prevent forest loss and avoid another “yellow card” warning from the EU as with the fisheries sector over illegal, unreported and unregulated (IUU) fishing, said Director of the National Agricultural Extension Centre (NAEC) Le Quoc Thanh.

He made the remarks while addressing a seminar held in Da Lat city, the Central Highlands province of Lam Dong, on August 24 to discuss the role of community-based agricultural extension in deforestation-free coffee production. The Central Highlands is the biggest coffee cultivation hub of Vietnam.

Thanh noted that community-based agricultural extension has a crucial role to play in helping promote the industry’s transparency and compliance with the EU Deforestation Regulation (EUDR).

This is also an occasion to identify challenges and build an action plan to address shortcomings before the EUDR is officially applied, he went on.

At the event, nearly 200 experts and coffee farmers looked into the compliance with the EUDR, which was adopted by the European Parliament in April 2023, entered into force in June 2023, and will be applied to major companies from December 2024.

A number of exports to the EU are subject to the EUDR, including coffee, and the regulation is applied to all the importers or exporters of related products to the bloc.

Vietnam’s exports to the EU stand at around 2.3 billion EUR (2.5 billion USD), mainly coffee (47.5%), wood (35.2%) and rubber (17.1%).

Nguyen Phi Hung, a specialist from the Sustainable Trade Initiative (IDH), stressed that the EUDR adherence needs the connectivity of relevant parties. Among them, state agencies like provincial-level departments of agriculture and rural development, sub-departments of forestry protection, and local People’s Committees need to share forest and land registry data, basing on which agricultural extension centres and community-based agricultural extension groups would carry out communications and training in deforestation-free production for farmers.

The NAEC said it has formed five material supply zones meeting the EUDR, including 11,200ha of coffee cultivation in the Central Highlands.

Vietnam, UK seek to optimise efficiency of bilateral FTA

The second meeting of the Vietnam-UK Free Trade Agreement (UKVFTA) Trade Committee took place in Hanoi on August 24 under the co-chair of Vietnamese Deputy Minister of Industry and Trade Phan Thi Thang and British Minister of State for International Trade Nigel Huddleston.

Participants listened to reports on outcomes of meetings of professional committees that were held earlier.

Both Thang and Huddleston hailed efforts of the committees in coordinating together and updating each other on each side’s legal regulations, contributing to effectively implementing the UKVFTA.

The two sides discussed a number of issues such as the increase of Vietnamese rice exporters’ opportunities to access the UK market, and methods to calculate the free trade agreement utilisation rate.

Concluding the meeting, Thang and Huddleston agreed on the continuing to actively and closely cooperate at all levels to further enhance the exploitation of commitments of the deal, contributing to promoting the bilateral trade and investment.

The two sides agreed to hold the third meeting of the UKVFTA Trade Committee in London in 2024.

Earlier on August 23, Thang hosted a reception for Huddleston, during which she congratulated the UK on becoming the 12th member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), affirming that this is not only a good news for the UK, the sixth largest economy in the world, but also for Vietnam and other members of the pact.

For his part, Huddleston thanked the Vietnamese side for supporting the UK’s CPTPP bid and expressed his hope that the National Assembly of Vietnam will complete the ratification process of the document on the UK’s joining the pact at an early date.

During the working session, the two sides sought measures to bolster bilateral economic-trade relations, including the effective implementation of the UKVFTA. They noted that their technical committees and Trade Committee have fully held meetings, a factor in helping to enhance the overall efficiency of the CPTPP implementation.

Thang suggested the regular organisation of dialogue sessions between the two countries to update each other on the regulations on trade defence and discuss technical matters related to trade defence investigations process and situation.

She thanked the UK for providing technical support to help Vietnam complete the Vietnam National Trade Repository (VNTR) in order to fulfill its transparency obligations set out in the ASEAN Trade in Goods Agreement.

She said she hopes that Vietnam will continue to receive support from the UK Government to help businesses fully grasp the benefits of FTAs, thereby improving the efficiency of implementing FTAs within ASEAN while promoting new trade and investment opportunities in the region.

Huddleston welcomed the Vietnamese side’s proposals, affirming that the UK is willing to share experiences and implement assistance programmes for the Vietnamese side. He also underlined the need for closer collaboration between the two countries within the Indo-Pacific Economic Framework (IPEF) negotiations.

The two sides updated each other on common activities taking place within the World Trade Organisation (WTO), vowing to jointly promote ties on green, fair, and sustainable trade liberalisation moving forward.

According to the General Department of Vietnam Customs, trade between Vietnam and the UK rose 0.5% to 3.95 billion USD in the first seven months of this year, including Vietnam’s exports of 2.5 billion USD.

So far, the UK has run 536 direct investment projects in Vietnam with total registered capital of 4.28 billion USD, ranking 15th among 143 foreign investors in the country.

In the first seven months of 2023, the UK invested in 28 new projects with total registered capital of 44.9 million USD in Vietnam.

High-level forum on start-up ecosystem held in Quang Nam

The High-level Forum on Promoting the Innovative Startup Ecosystem Quang Nam 2023 was held in the central province of Quang Nam on August 24, as part of the National Startup Programme 2023 and the fourth Techfest Quang Nam 2023.

The event was co-hosted by the Ministry of Science and Technology (MoST), the provincial People’s Committee, the Vietnam Chamber of Commerce and Industry (VCCI), the Business Forum magazine, the provincial Startup and Innovation Support Committee and the National Startup Advisory Council.

Speaking at the event, Chairman of the provincial People’s Committee Le Tri Thanh said Quang Nam takes the lead in cooperation and partnerships in building start-up and innovation ecosystem. In 2020 when the VCCI collaborated with the MoST and the Ministry of Education and Training to select outstanding localities with startup ecosystem, Quang Nam became the first locality in the central region to be honoured with this title.

Through the National Startup Programme, local start-ups have the opportunity to join annual activities such as the 1-1-1 training model (1 trainer - 1 advisor - 1 project team) for a period of between two and four months. Four start-ups that won second prize and made it to the top 10 of the programme in 2021 and 2022 are eligible for this support.

Initiated by the Business Forum magazine in 2002 under the guidance of the VCCI, the programme is considered a pioneer in Vietnam's start-up movement.

At the forum, participants discussed the role of businesses in building local start-up ecosystem, the open linkage between localities and regions and the nation, experience in attracting international capital for start-ups, and developing various elements within the local startup ecosystem.

Vietnam, RoK strengthen textile cooperation

The Vietnam Textile and Apparel Association (VITAS) and the Korea Federation of Textile Industries (KOFOTI) have signed a memorandum of understanding (MoU) to strengthen bilateral cooperation, KOFOTI announced on August 24.

The signing ceremony took place within the framework of the textile exhibition “Preview in Seoul 2023” held in Seoul from August 23-25.

Speaking at the ceremony, KOFOTI chairman Choi Byung-oh said that RoK and Vietnam have been reliable partners in textile production, processing, and export for the past 30 years.

With the MoU signing, the Korean side hopes that the strategic partnership in the textile and fashion industries of the two countries will be strengthened, especially on issues of sustainable development, digital transformation, and supply chains.

A KOFOTI official also said Vietnam's high economic growth rate and young people's interest in the Korean culture are constantly increasing, adding the MoU is expected to help Korean businesses penetrate deeply into the Vietnamese market.

VITAS President Vu Duc Giang also said that VITAS and KOFOIT will expand the exchanges of information and innovation technology, promote cooperation to take advantage of the free trade agreements, and attract investment.

Branding to make Vietnamese goods competitive in int’l market: experts

Branding is a long-term solution to make Vietnamese goods competitive in the international market, as many products originating from Vietnam remain unfamiliar to consumers though they are among the world's top production volumes, said experts.

Thanks to its impressive export growth, Vietnam has been among the 20 countries globally with the biggest trade. However, many Vietnamese exports are labelled under different countries or brands other than Vietnam. This is particularly true for agricultural products as up to 80% of them lack branding.

Vietnamese Trade Counsellor in the UK Nguyen Canh Cuong said Vietnamese rice is sold in the UK under distributor brands like Longdan, Golden Lotus, Buffalo, Green Dragon, and Red Ant. Furthermore, a significant portion of Vietnamese rice exported to the European Union is processed and packaged by importers who then label them with their own branding for sale.

Meanwhile, head of the market development strategy consulting section under the German Chamber of Commerce in Vietnam Dao Thu Trang said many Germans are still unaware that Vietnam is the world's largest coffee exporter, even though the drink they use daily is shipped in raw form from Vietnam. Similarly, 90% of Vietnamese tea and 95% of its black pepper are exported either in raw form or with minimal processing. As a result, when these products enter the global market, they often carry the names of foreign partners.

Vice President of the Central Retail Group in Vietnam Paul Le noted that brands need to be readable and memorable. The products should cater to consumer preferences and meet standards of each market, especially considering the rising trend of eco-friendly consumption.

From August 17-20, the sixth Vietnamese Goods Week was co-organised by the MoIT and the Central Retail Group in Thailand, with 100 Vietnamese enterprises showcasing products such as fish sauce, rice, processed fruits, cashew and macadamia nuts, bird's nest, handicrafts and artworks.

Garment exports fall on low global demand

Vietnamese garment and textile exports dropped by 15.9% to US$22.5 billion in the opening seven months of the year, the Vietnam National Textile and Garment Group (Vinatex) reported in its latest report.      

The seven-month period saw garment exports to the United States, the European Union, China, and Korean markets fall 24%, 10%, 10%, and 7.7%, respectively, compared to last year’s corresponding period.

In July alone, the export turnover dropped by 9.4% to US$3.81 billion compared to the same period last year, but increased by 6.2% month on month.

The country’s garment exports to the US, the EU, and Korean markets continued to decline by 17%, 10%, and 9.58% respectively, compared to figures recorded in July 2022.

Most notably, exports to the Japanese market still maintained growth with export turnover reaching US$428 million, up 4% year on year.

Furthermore, Vietnam exported garment and textile products worth US$360 million to China, up 35% year on year, of which yarn exports reached US$219 million, up 67%.

With regard to the garment export prospects, Vuong Duc Anh, chief of Office of Vinatex's Board of Directors, said the global low demand may extend to next year due to external factors such as exchange rate fluctuations.

Experts of the Vietnam Textile and Apparel Association (VITAS) pointed out that the global demand for garments and textiles is likely to decrease by between 8% and 10% this year, posing a great challenge to the Vietnamese textile and garment industry in the coming months into the beginning of next year.

Vietnam’s garment export earnings are projected to slump between 9% and 10% this year compared to 2022 to around US$40 billion.

However, there are positive signs for the industry in the coming months as the number of partners from Europe, Northeast Asia, and Southeast Asia rapidly gain greater insights into garment products compared to the previous months.

Therefore, the export volume of garments is expected to edge up in the second half of the year against the previous months of this year, according to industry insiders.

Coffee exports to New Zealand enjoy three-digit growth

Vietnamese coffee exports to New Zealand witnessed three-digit growth during the initial seven months of the year, raking in US$3.2 million in the process, up 106.5% in volume and 144.2% in value compared to the same period from last year, according to the Ministry of Industry and Trade.      

The average export price of Vietnamese coffee in the demanding market in the reviewed period  stood at US$2,638 per tonne, up 18.3% on-year. 

July alone saw the country export 194 tonnes of coffee worth US$583.71 million to this market, representing a rise of 73.2% in volume and 108.2% in value compared to July, 2022 with the average export price reaching US$3,009 per tonne, up 20.2% on-year.

Most notably, the country’s major export coffee products to the market included Robusta and processed coffee, representing respective increases of 186.1% and 58.5%, on-year. 

In contrast, the nation moved to reduce exports of Arabica coffee to the New Zealand market, duly representing a fall of 17.2% on-year.

According to details given by the the International Trade Centre, Brazil made up the largest supplier of coffee to New Zealand in the first half of the year with 1,720 tonnes worth US$8.19 million, representing a decline of 20% in volume and 27.7% in value on-year.

However, Brazil's market share as part of New Zealand's total imports fell from 24.73% in the first six months of 2022 to 21.49% in the first half of this year.

This came amid New Zealand increasing coffee imports from the Vietnamese market, up 23.4% in volume and 19% in value over the same period from last year, with approximately 1,140 tonnes, worth US$2.54 million

Vietnam's coffee market share as part of New Zealand's total imports increased from 10.58% during six-month period of last year to 14.19% in the first half of this year.

Ministry building long-term strategy on rice exports, market stabilisation: official

The Ministry of Industry and Trade (MoIT) is building a long-term strategy on rice export and market stabilisation, following bans by several countries, according to Deputy Director of the MoIT's Import-Export Department Trần Quốc Toản.

Toản said that export bans by India, the United Arab Emirates and Russia, adverse impacts of El Nino, and Russia’s withdrawal from the Black Sea grain deal have strongly influenced the global rice supply, thus raising concerns about world food security as well as affecting the economic recovery of many countries as the inflation situation has not improved.

He cited data of the Ministry of Agriculture and Rural Development as saying that so far this year, the country has been planting 7.1 million hectares of the grain, with a total estimated output of around 43.1 million tonnes, 452,000 tonnes higher than that of the previous year. With the yield, in addition to serving domestic needs, Việt Nam can export over 7.5 million tonnes this year. In the first seven months, 4.83 million tonnes were shipped abroad.

At present, the MoIT is continuing to closely coordinate with other ministries, sectors and localities to monitor the market situation and promptly grasp difficulties and problems of relevant enterprises, so as to propose solutions to remove obstacles and facilitate rice export activities from now to the end of this year, said the official.

The ministry will coordinate with related agencies in implementing trade promotion programmes in both traditional and online forms in accordance with the new situation to enhance the value of Việt Nam's rice products.

At the same time, it will coordinate with the Ministry of Foreign Affairs and the Ministry of Agriculture and Rural Development to well exploit preferential mechanisms of signed free trade agreements (FTAs) to actively negotiate with foreign partners in order to diversify export markets, occupy new and potential ones, and improve Việt Nam’s competitiveness.

Guidance and support will be provided to help traders and exporters improve their production and business capacity; and increase their capacity to negotiate, sign and fulfill export contracts and effectively handle international trade disputes.

Efforts will be made to control supply and prices, and prevent the transportation and trading of rice of unknown origin, added Toản. 

Ministry of Finance proposes new environmental fees

The Ministry of Finance is calling for comments on a proposal to impose environmental fees on greenhouse-gas-emitting facilities, an effort to reduce their carbon footprint and incentivise greener practices.

Under the proposal, the environmental fees are composed of two parts: a lump-sum part and a per-unit part. The former is set at VNĐ3 million (US$125.7) per year per facility whereas the latter is between VNĐ500 and VNĐ800 per tonne for their emission of four major pollutants (particulate matter, nitrogen oxides, sulfur oxides, and carbon monoxide).

The introduction of the fees is projected to increase fiscal revenue by VNĐ1.2 trillion ($50.2 million), which could be used to tackle air pollution at the grassroots level. Facilities that would be made subject to the tariffs include steel mills, fertiliser plants, oil refineries, and thermal power generators.

The Ministry of Finance believes that the proposal would contribute significantly to the reduction of greenhouse gas emissions in Việt Nam by incentivising investments in eco-friendly technologies and accelerating the phase-out of environmentally-inefficient equipment.

Ngô Trí Long, former head of the Price Research Institute under the ministry, however, was not all for the proposal because he believes that what the Government should do amid the economic downturn is to abolish more fees to support manufacturers, not the other way around.

He also called its fairness into question by showing that the proposal would apply only to certain types of manufacturers while leaving others untouched.

Economic expert Lê Anh Tuấn shared Long's view. He said now is not the right time for the proposal because manufacturers had been debilitated by the economic downturn. New equipment and machinery to cut gas emissions would be too much for them during this tough time.

The expert was also concerned about the possibility that observatory organisations and manufacturers could collaborate to exploit the proposal.

Economic expert Nguyễn Khắc Quốc Bảo did not approve of the idea that its scope should be expanded to cover vehicle owners. He said vehicle owners had paid environmental fees once, which were factored into their fuel bills.

With 5.1 million cars on the road, 120,000 manufacturing facilities, 110,000 construction companies, and a couple of dozen heavy-industry complexes in the country, the amount of pollutants released daily into the atmosphere has reached a point that demands tough action, according to the ministry. 

Opinions differ over fairness of domestic petroleum prices

Whether prices of gasoline in Việt Nam are reasonable with regard to income per capita compared to those of other countries around the world remains controversial.

According to Global Petrol Prices, the average price of gasoline in Việt Nam was the 38th cheapest among 168 economies as of August 14.

Specifically, the average petroleum value for Việt Nam during the period from May 8 to August 14 was VNĐ22,918.50 (US$1.019) per litre, higher than two other countries in the Southeast Asian region, Malaysia ($0.444 per litre) and Indonesia ($0.871 per litre). For comparison, the average price of gasoline in the world for this period was VNĐ41,915.75.

Venezuela was the country with the lowest gasoline price in the world, at $0.004 per litre.

Countries which had gasoline prices around two times that of Việt Nam were mostly developed economies where the income per capita was 10-20 times higher, such as Singapore, the Netherlands, France, Switzerland, Denmark and Norway.

The Ministry of Finance in a recent document in response to National Assembly deputies’ queries about taxes and fees on petroleum said that fuel prices in Việt Nam were at a lower level than the region’s and world’s average. Taxes accounted for 10-11 per cent of oil prices and 20-23 per cent of petrol prices in Việt Nam, compared to a rate of 45-60 per cent in many other countries.

The highest petroleum price of Việt Nam recorded on July 11 was equivalent to only 79 per cent of China’s, 65 per cent of Laos’ and 78 per cent of Cambodia’s, the ministry said.

Many people said that the fairness of petroleum prices should be based on the income per capita of each country.

A report by Việt Nam Economy and Strategy Research Centre (VESS) found that petroleum was subject to a value added tax of 10 per cent, import tax of 10 per cent, special consumption tax of 8-10 per cent and environmental protection tax.

Although petroleum retail prices in Việt Nam were lower than many countries, they were high with regard to the country’s income per capita compared to some developed countries or countries with similar economic situations such as the US, Russia, Malaysia and Indonesia, VESS said.

When petroleum prices are high, Việt Nam might face inflationary risk as petroleum products were considered an input of the economy, VESS said, adding that the existing tax policies on petroleum might no longer be suitable in the context of volatile world gasoline prices.

Economic expert Bùi Trinh said that it was difficult to make a comparison between petroleum prices in Việt Nam and other countries because each country has a different economic model, different political structure, different consumption level and different levels of income per capita.

Thus, the management of the domestic petroleum market needed to be flexible, he said.

Bùi Ngọc Bảo, chairman of the Việt Nam Petroleum Association, said that domestic petroleum prices were dependent on global prices because Việt Nam still imports petroleum.

Bảo said that it was not appropriate to compare the prices of petroleum with the country’s income per capita. He said that, similarly, prices of automobiles in Việt Nam were quire high although Việt Nam was just a developing economy. Prices also depended on the country’s tax policies, he said.

Petroleum was currently subject to a special consumption tax in Việt Nam as the Government aimed to encourage the use of public transport rather than private vehicles, he said.

He said that the current percentage of taxes and fees in prices of around 30 per cent was reasonable.

Improving the transparency of the petroleum market was also important to make petroleum prices more market-based and competitive.

A report of the National Assembly Economic Committee early this year said that the calculation of domestic petroleum retail prices was not suitable to market fluctuations and lack of competition.

According to Phạm Ngọc Hùng, an industry insider, an exchange should be set up to decide the base price for gasoline based on the bidding prices of wholesalers to increase transparency and prevent a monopoly. The exchange would also help deal with difficulties in petroleum reserves as wholesalers who wanted to participate in the bidding would be required to have warehouses.

Đỗ Huy Trung from the Vietnam Standard and Consumers Association said that the frequency of reviewing and adjusting petroleum prices should be shortened to two times a week to timely reflect the market fluctuations and increase transparency. Currently, petroleum prices were reviewed for adjustments every 10 days. 

Đồng Nai’s industrial parks lure nearly US$780 million in FDI

Close to US$780 million in FDI and over VNĐ2.2 trillion ($91.8 million) in domestic capital have so far been poured into industrial parks (IP) in the southern province of Đồng Nai since the beginning of the year.

The figures were unveiled at a recent meeting between the provincial People’s Committee and investors in the local IP infrastructure.

Taking into account the investors’ comments on the slow land clearance work, weak transport connection, and high land leasing costs, among others, authorities of the major industrial hub in the South tasked relevant sectors and localities with effectively tackling these problems in the time to come.

According to the approved plan, Đồng Nai has 40 IPs with an area of about 19,000ha. It is now home to 32 IPs that are already in operation, with an occupancy rate of over 85 per cent. The remaining IPs are yet to be built due to obstacles regarding investment procedures, rubber plantation and forest land processing, auction and bidding, and zone planning. 

Technology and changing investment model drive retail sector’s growth

Investment in technology has helped Vietnamese retailers maintain growth despite the global economic downturn, a top retail industry executive has said.

Nguyễn Anh Đức, chairman of the Association of Việt Nam Retailers and general director of Saigon Co.op, speaking at the 2023 Business Forum held by Forbes in HCM City last week, said: “Artificial intelligence and digital transformation are 'no-regret' investments, which together with changing investment models not only help businesses overcome crises but also create momentum for their long-term growth.

“Every business embarking on e-commerce and digitisation needs to select its own suitable path that is based on its own strengths, and act fast to keep up with the constant progress in technology.”

With the theme “Innovating growth models,” the forum featured experts and heads of leading local and international companies who discussed the business outlook and strategies for development in a volatile business environment.

It was at a panel discussion on “New challenges - New opportunities” that Đức was speaking.

He said Saigon Co.op sustained its growth in the first half of the year.

Two factors greatly influenced the retail market in the last two years, and especially this year, he said.

First was a gloomy economy in many countries that have very close trade relations with Việt Nam and thus a great direct influence on its retail industry, he said.

Second were the many resolutions, circulars and decrees issued by the National Assembly, Government, ministries, and local authorities to revive the economy, he said.

Saigon Co.op understood the market trends and Government’s policies and had come up with appropriate solutions for its development, he said.

It might achieve lower growth this year, but that would not mean less efficiency, he added.

Several delegates said transforming growth models was imperative at both the micro and macro levels.

At the micro level, it involves mobilising and allocating resources effectively, and conducting efficient and sustainable business to capture the changing trends brought about by the technological revolutions, according to the experts.

At the macro level, it requires transitioning from a broad-based growth model relying on capital, cheap labour, and national-scale natural resource exploitation to a higher economic growth model with value added.

Nguyễn An Nguyên, founder and CEO of Trusting Social, said it was the “dawn” of the era of AI, which affected both social life and economic activities.

So enterprises should carry out digital transformation to benefit their business and improve partners and customers’ experience, he noted. 

Mekong Delta localities urged to grasp new economic trends

The impacts of new global economic developments and trends on production, export and investment attraction in provinces and cities in the Mekong Delta were discussed at a forum in Ben Tre province on August 23.

Jointly held by the Ministry of Foreign Affairs (MoFA) and the People’s Committee of Ben Tre province, the hybrid event saw the participation of representatives from the European Chamber of Commerce in Vietnam (EuroCham), departments, agencies and associations, and experts.

Assistant to the Foreign Minister and Director of the MoFA’s Department of Economic Affairs Nguyen Minh Hang said the EU is now pioneering in applying new standards comprehensively, with various measures to be put in place in the coming two or three years.

She suggested the Mekong Delta localities quickly grasp new global trends and build suitable policies to bring into full play opportunities and limit challenges.

Chairman of the Ben Tre provincial People’s Committee Tran Ngoc Tam pointed out major challenges facing the Mekong Delta region in general and Ben Tre in particular, notably climate change, fierce competition for agricultural products, surging transport costs, and limitations in workforce and transport infrastructure.  
 
To deal with these obstacles, it needs connectivity within the region as well as between the regions and others, along with policies to attract high-quality personnel, he said.  

The forum is expected to contribute to enhancing the connectivity between Mekong Delta businesses and their European partners, and help Ben Tre learn from development experience of foreign countries, the official added.

Can Gio int'l transshipment port to become green port

The Ho Chi Minh City People's Committee has submitted to the Prime Minister a proposal on the study project of the construction of the Can Gio International Transshipment Port which the city hopes to turn into the first green port in Vietnam.

According to the proposal, the port is will be built on Con Cho islet in Thanh An commune, Ho Chi Minh City’s Can Gio district, with an estimated total area of 571 ha.

Handling equipment to be used at the port will be those running on clean, environmentally friendly energy and fuel.

The committee plans to develop the port in a harmonious and modern way with smart technology and automation in the port management, operation, and exploitation towards sustainability.

The use of clean fuels is considered an integral part of the investment process in the construction and operation of the port to make it the first green port in Vietnam.

The port is expected to be able to deal with container ships with a tonnage of up to 250,000DWT (24,000 TEU), transshipment ships of 10,000-65,000 tonnes (750-5,200 TEU), and cargos ships up to 8,000 tonnes.

The port investment is expected to be divided into two phases, starting before 2030 and then after that.

Strategic investors in the port construction are required to have a charter capital of at least 9 trillion VND (nearly 376 million USD ) and have experience in investing in projects in the same field with a total investment capital of 25 trillion VND or more. The investors must have a written commitment to training and developing human resources, ensuring national defense, security, and environmental protection as prescribed by Vietnamese law.

Located at the mouth of the Cai Mep - Thi Vai river, in Ganh Rai Bay, the port is close to international shipping routes passing through the East Sea, between Asian regions with great potential for growth, favourable for developing international transshipment port.

According to the city’s proposal, the port project will attract a large amount of investment capital and create about 6,000-8,000 jobs; expectedly to contribute to the State budget about 34 trillion VND to 40 trillion VND per year once the investment phases are completed.

Output of goods through the city seaports grew about 9.3% on average in the period 2015 – 2022.

It is forecast that between 2022 and 2030, the total volume of goods through the city's seaport will grow by an average of over 5% yearly, and the average volume of container cargo will grow by about 6% yearly.

Decree stipulates examination, certification of imported cars’ technical safety

The Government has issued a decree regulating the examination and certification of technical safety and environmental protection for automobiles and parts imported under some international agreements to which Vietnam is a party.

The international deals taken into account in the decree, No 60/2023/ND-CP, consist of the EU - Vietnam Free Trade Agreement (EVFTA) and the UK - Vietnam Free Trade Agreement (UKVFTA).

The decree is applied to the importers and agencies, organisations, and individuals related to the management, examination, and certification of technical safety and environmental protection for automobiles and parts imported under the agreements.

It is not applied to those imported for defence and security purposes under Prime Minister-approved plans.

The decree will take effect on October 1, 2023, and be applied to automobiles from August 1, 2025.

Ho Chi Minh City hosts Vietnam Industrial Property Forum 2023

As many as 300 policymakers, experts and business executives are attending the third Vietnam Industrial Property Forum which opened in Ho Chi Minh City on the morning of August 24.

The forum, co-hosted by Dau Tu (Investment) newspaper and the Ministry of Planning and Investment, has brought together representatives of various foreign business associations in Vietnam, including the European Chamber of Commerce (EuroCham), American Chamber of Commerce (Amcham), Hong Kong Business Association, SB Group, Korean Chamber of Commerce (KOCHAM), and Japan Chamber of Commerce and Industry JAPCHAM.

The forum comprises two panel discussions, themed ‘grasping opportunities from new capital inflows’ and ‘seizing opportunities’.

Delegates are scheduled to analyze the shift of capital flows from China, Taiwan (China), the Republic of Korea and Japan in Northeast Asia to Vietnam, and investment from its leading partners in ASEAN, the United States and the European Union, as well as investment plans to expand production and supply chains of tech giants such as Samsung, LG, Foxconn, Intel and Apple.

In the context of complex geopolitics and the pending application of the global minimum tax, delegates will discuss current and future policies of Vietnam and opportunities to receive new capital flows.

Experts and speakers will examine opportunities for the expansion and development of industrial parks in Vietnam, and specialized industrial real estate products such as ready-built warehouses (RBW), ready-built factories (RBF), built-to-suit factories (built-to-suit), refrigerated warehouses, logistics, last-mile logistics, and data centers.

They will also put forward solutions to remove the ‘bottlenecks’ of industrial real estate projects and challenges towards sustainable industrial real estate development according to the environmental, social and governance (ESG) standards.

Workshop promotes Vietnam- Russia trade through Vladivostok port

The Consulate General of Vietnam in Vladivostok and the Vietnam Trade Office’s branch in the Far East on August 21 held a workshop to promote Vietnam-Russia foreign trade through Vladivostok port.

More than 30 enterprises and relevant officials from Vietnam and Russia joined the event in person and online.

It aimed at updating practical information on import and export activities between Vietnam and Russia, and the role of Vladivostok port in enhancing trade between the two sides.

Consul General in Vladivostok Nguyen Dang Hien said that political and economic situations in recent years have affected the trade turnover between the two countries.

However, in the first half of 2023, two-way trade turnover between Vietnam and Russia’s Far East reached 150-160 million USD, an increase of about 20% over the same period in 2022.  Goods from Vietnam and Russia transited through Vladivostok port clusters increased in both volume and type. The Vladivostok port plays an important role in the transport of imports and exports between the two countries.

For his part, Minister of Industry and Trade of Primorye Territory Sergey Kalintin affirmed that exporting Vietnam's goods through the Far East is the shortest way, adding that supermarket chains, shops, and businesses in Primorye are interested in importing Vietnamese goods.

He expressed his hopes to establish a regular connection between Vietnamese and Russian businesses to promote bilateral relations. Primorye is ready to support Vietnamese businesses to open trade centres in the area and will have attractive preferential policies for them.

Vietnamese Trade Counselor in Russia Duong Hoang Minh also said that Vietnam-Russia trade is seeing signs of recovery.

In the first quarter of 2023, the bilateral trade reached 732 million USD, down 49% over the same period in 2022. But in the first seven months of this year, it reached 1.9 billion USD, marking a decrease of only 15.7%.

Minh said that in May 2022, a direct shipping route Vladivostok port - Hai Phong city - Ho Chi Minh City was opened. In the first seven months of 2023, more than 20,000 TEUs of goods were transported through the route, marking a great success.

Quang Ninh becomes major coal import gateway

The volume of coal imported through the northern province of Quang Ninh had accounted for 70% of the country’s total imported coal volume as of mid-August, according to Tran Quang Trung, Vice Director of the Quang Ninh Sub-Department of Customs.

Trung reported that in the first eight months of 2023, the Vietnam National Coal and Mineral Industries Group (Vinacomin) imported 5.7 million tonnes of coal with a value of 766 million USD and paid an import tax of 2.01 trillion VND (83.75 million USD), up 78% year on year.

With the amount, Vinacomin ensured coal supply to power plants, serving socio-economic development. The firm’s major coal suppliers included Australia, Russia and South African countries. This year, it is likely to import nearly 9 million tonnes of material coal.

In the period, the Dong Bac Corporation run by the Ministry of National Defence imported 1.4 million tonnes of coal worth 179 million USD, 400,000 tonnes higher than that recorded in the same time last year. Other businesses also bought about 4.4 million tonnes of coal from other countries.

Bonds worth nearly VND5.8 trillion traded in new trading system

The newly introduced trading system for privately-placed corporate bonds has facilitated transactions totaling around VND5.8 trillion since it was launched last month, according to the Hanoi Stock Exchange (HNX).

Within the system’s first month of operation, 31 bond codes from five enterprises have been registered for transactions in the corporate bond trading system.

These enterprises include Bank for Investment and Development of Vietnam (BIDV), Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), VinFast Trading and Production JSC, Transport and Industry Development Investment JSC, and Phan Vu Investment Corporation.

Among these, Vietcombank has boasted the largest registered trading volume, featuring 15 bond codes with a combined value of VND7,240 billion.

In terms of liquidity, the system witnessed over 23.3 million bonds traded by the end of the August 18 trading session, with a transaction value of VND5,764 billion.

On average, a trading volume of one million bonds per session was achieved, with a trading value of VND250.6 billion.

Notably, Vietcombank bonds dominated the trading value at VND3.4 trillion, followed by BIDV bonds with a trading value exceeding VND1.8 trillion.

To date, all trading activities have been carried out by domestic investors.

Introduced by the HNX on July 19, the trading system for privately-placed corporate bonds aims to enhance liquidity in the corporate bond market and reduce risks for investors involved in such transactions.

Retail prices rise, price-stabilized stores strive to control costs

It was recorded that, on August 22, at several spontaneously established local markets and traditional markets in HCMC, the prices of several commodities, such as vegetables, meat, and fish, witnessed an increase of VND3,000-VND5,000 per kg.

Likewise, the costs of vegetarian products to serve the 7th lunar month's full moon also experienced a noteworthy surge.

In markets such as Ba Chieu in Binh Thanh District, Pham Van Hai in Tan Binh District, and Nhat Tao in District 10, the price of cabbage and lettuce hovered around VND25,000 to VND30,000 per kilogram. These products had seen an uptick of VND3,000-VND5,000 per kilogram compared to two weeks ago, varying according to the type.

However, some items are in short supply yet in high demand, resulting in substantial price hikes. For instance, Hue lotus seeds, available at the Thu Duc Wholesale Market, were priced at VND140,000 per kilogram, marking a VND20,000 per kilogram increase since the end of July. Meanwhile, specific items, such as Hoa Loc mangoes, green-skinned pomelos, and Can Tho star apples, sold at the wholesale market, had undergone a reduction in price by VND3,000-VND5,000 per kilogram compared to those at the end of July.

This translates to rates like VND85,000 per kilogram for Hoa Loc mangoes, VND45,000 per kilogram for star apples, and VND43,000 per kilogram for pomelos. Nevertheless, prices for these items at some retail markets still retained their previous levels.

According to vegetarian shops in Tan Phu and Go Vap districts, vegetarian chicken was priced at roughly VND70,000 to VND110,000 per unit. Similarly, vegetarian sausages and mushroom-infused sausages were offered within the range of VND65,000 to VND95,000 per 500 grams, and vegetarian buns were sold at VND3,000-VND5,000 per piece.

In the face of the mentioned price hikes, the Department of Industry and Trade of HCMC affirms that it will closely monitor price listings at all stores and traditional markets. In tandem, it will work closely with the HCMC Market Surveillance Department to ensure market stability, avoiding a scenario where sellers react to rising fuel costs with their own price increases.

The management boards of wholesale markets, supermarkets, and shopping centers in HCMC have also committed to providing competitive prices and extending support to consumers during these prevailing economic hardships.

On the same day, a press briefing was conducted in HCMC to introduce the Trade Promotion Conference of Tien Giang Province and the OCOP Product Showcase Week, featuring the unique offerings of Tien Giang Province in HCMC. The event is slated to occur from August 29 to September 2 at No.92-96 Nguyen Hue Street in District 1.

The Tien Giang Department of Industry and Trade said that the province's distinctive products have a widespread presence, available in numerous HCMC-based wholesale markets, supermarkets, shopping centers, and traditional markets. These products cater to daily consumer needs, as well as special occasions throughout the year.

More than US$240 million transacted one month after corporate bond platform launched

One month after the launch of the corporate bond trading platform, investors have transferred a total of VND5.76 trillion (US$240 million), according to figures from the Hanoi Stock Exchange (HNX).

"One month into its operation, the corporate bond trading platform has demonstrated secure and seamless operation with no technical issues. As a result, the scale of the market is expanding and bond liquidity is being effectively maintained," HNX said.

When the platform was launched, 19 registered tickers were available for trading. Additional tickers have since been added, bringing the total number of tradable bond tickers on the platform to 31.

These bonds are categorized into five units, represented by entities, including the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), and VinFast Production and Trading Joint Stock Company. In particular, Vietcombank has the largest registered trading volume of VND7.24 trillion ($304 million) across 15 bond tickers.

As for liquidity, the total bond trading volume of the entire market as of August 18 was over 23.3 million bonds with a trading value of about VND5.765 billion ($240 million).

On average, one million bonds changed hands per trading session, with a trading value of VND250.6 billion ($10.5 million) per session.

Vietcombank bonds had the highest trading value at over VND3.4 trillion ($142.7 million), followed by BIDV bonds at over VND1.83 trillion ($77 million).

The market is exclusively occupied by domestic investors, who account for all transactions.

The HNX noted that the corporate bond trading system includes eight member securities companies, with another 15 member securities companies and one commercial bank in the final stage of completing the participation procedures.

Tech giant VNG files for IPO in U.S.

Vietnamese technology powerhouse VNG Corporation announced on the morning of August 24 that its largest shareholder, VNG Limited, has initiated the process for an initial public offering (IPO) in the U.S.

VNG Limited is preparing to offer common shares under the trading code “VNG” on the NASDAQ Global Select Market Composite (NQGS). This listing will mark a historic milestone, making VNG the first technology company from Vietnam to be listed in the U.S.

Details regarding the size of the transaction and price ranges are yet to be determined, as stated in the announcement.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, and BofA Securities, Inc. are serving as underwriters for this IPO.

VNG entered a memorandum of understanding with the NASDAQ stock exchange back in May 2017, establishing a relationship that supported and advised VNG throughout the process of filing for listing on the exchange.

With VinFast’s recent successful U.S. listing debut, VNG’s decision to file for an IPO is expected to further encourage other companies seeking to go public in the U.S.

Founded in 2004, VNG Corporation is a prominent local technology firm recognized for its contributions in online gaming, music streaming, and messaging applications. 

Hanoi bolsters investment attraction to hi-tech industry

A symposium on bolstering investment attraction to hi-tech, supporting industries opened in Hanoi on August 23.

Speaking at the event, Deputy Director of the municipal Department of Industry and Trade Nguyen Dinh Thang said the event aims to help managers and enterprises access the latest trends of supporting industry both at home and abroad in order to introduce plans and perfect development policies, while promoting investment attraction in the field.

He emphasised that participants will have a chance to learn experiences and apply them in their business, production and development to participate in the supply chain in the capital economy and the global supply chains of multinational corporations, domestic and international FDI enterprises. To date, Hanoi has about 960 supporting enterprises, of which more than 320 firms owning production systems and products meeting international standards.

Delegates stressed that the supporting industry plays a vital role, contributing in reducing imports, limiting the export of resources and raw products, and enhancing the added value of industrial products. Besides, it also helps shrink  trade deficit, ensuring balance between import and export; and increase the ability to attract foreign direct investment while developing small and medium enterprises' system.

Noboru Kinoshita, International Advisor of Industry Promotion Organisation of Aichi Prefecture, Japan, shared that Japanese small and medium enterprises are increasingly interested in investing in Vietnam. Every year, the number of inquiries that need advice related to investment in Vietnam sent to the organisation is increasing, mainly in the fields of computer repair, network maintenance, and applying IT services to production.

Kien Giang to host first national architecture expo

The architecture expo 2023 will be organised on Phu Quoc island in the southern province of Kien Giang from September 8 - 10.

The expo is expected to introduce the country’s architectural achievements in recent years. The event will also be an in-depth architecture forum that gathers leading units, organisations, domestic and international enterprises, managers, and experts in the field of architecture and planning and related sectors.

The action programme to implement the Poliburo's Resolution 06-NQ/TW on planning, construction, management and sustainable development of urban areas in Vietnam until 2030 with a vision to 2045 will also be mulled over at the expo, along with the development orientations of modern Vietnamese architecture imbued with the national identity and promoting traditional values.

The expo includes various activities such as field trips to outstanding projects in Kien Giang that have adopted green architecture, energy saving, and environmental-friendly materials.

The event comprises a plenary session, two thematic seminars and an architecture exhibition.

At the plenary session and discussion with the theme "Architecture - creating a sustainable space for the community", domestic and foreign experts will debate and contribute ideas to the policy framework with the goal of achieving sustainable architecture, meeting the requirements of climate change and preventing epidemics and natural disasters.

They are anticipated to make suggestions on models, aiming to improve design quality, ensure sustainable development and create a mechanism to promote the application of science and technology and a new model of green building in Vietnam.

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