Phase 1 of the Vietnam - Singapore Industrial Park (VSIP) project in Vinh Thanh district, the Mekong Delta city of Can Tho, will have its construction started on September 9, according to the municipal People’s Committee.

The launch is expected to see the presence of about 300 delegates, including representatives of the Singaporean Embassy in Hanoi, the Singaporean Consulate General in Can Tho, ministries, and central agencies. It will also form part of the activities marking the 50th anniversary of the two countries’ diplomatic ties.

At the ceremony, the municipal administration will hand over memoranda of understanding on investment between the VSIP and potential clients, along with another on industrial park expansion orientations between Can Tho and the VSIP, the People's Committee noted.

Anthony Tan, General Director of the Can Tho VSIP Joint Stock Company, said that the park in Vinh Thanh district will be an industrial, residential, and logistic service complex meeting green and sustainability criteria.

The Can Tho VSIP project was approved by the Prime Minister and granted the investment registration certificate by the municipal People’s Committee in October 2022.

Phase 1 will cover 293.7ha of land and have total investment of over 3.7 trillion VND (153.8 million USD). During this phase, the project will also supply support services for factories in nearby areas and Can Tho at large, along with those for labourers working at the VSIP.

The VSIP joint venture, formed by Sembcorp of Singapore and Becamex IDC of Vietnam, is the biggest industrial park developer in the country at present. It set up the first VSIP in southern Binh Duong province in 1996.

So far, 11 VSIPs have been put into operation nationwide, and the one in Can Tho is the first in the Mekong Delta.

Trade surplus reaches 20.19 billion USD in eight months

Vietnam enjoyed a trade surplus of 20.19 billion USD in the first eight months of this year, according to data released by the General Statistics Office (GSO) on August 29.

In the period, the total import-export turnover of goods hit 435.23 billion USD, posting a year-over-year decrease of 13.1%. Specifically, export value hit 227.7 billion USD, a fall of 10% year on year and import value was down by 16.2% to 207.52 billion USD.

In August only, the country's total trade hit 60.92 billion, marking an increase of 6.7% compared to the previous month and a decline of 7.9% compared to the same period last year.

In eight months, 30 items posted export turnover of over 1 billion USD, accounting for 91.8% of the country's total export turnover. Particularly, five commodities posted an export turnover of more than 10 billion USD, accounting for 58.4%.

The US was Vietnam's largest export market with an estimated turnover of 62.3 billion USD, while China was Vietnam's largest import market with 68.1 billion USD.

To further improve the efficiency of imports and exports, the Ministry of Industry and Trade has planned to focus measures such as promoting innovation and strengthening trade promotion activities towards new and potential markets like India, Africa, the Middle East, Latin America, and Eastern Europe and those less affected by inflation and posting positive growth like ASEAN./.

HCM City’s CPI inches up 0.7% in August

Ho Chi Minh City’s consumer price index (CPI) rose by 0.7% in August, with eight out of the 11 groups of commodities and services witnessing an increase in prices, according to the municipal Statistics Office.

The office reported that transportation prices recorded the highest growth of 4.15%.

On the downward trend, the prices of post and telecommunications, culture and entertainment, and drugs and medical services decreased by 0.40%, 0.04%, and 0.02% compared to the previous month, respectively.

Gold price in August increased by 0.33%, while the price of US dollar rose by 0.51% compared to those in July.

According to the office, the CPI of the country's biggest city rose by 3.45% in the first eight months of 2023.

Vietnam Airlines named among top 10 international airlines of 2023

National flag carrier Vietnam Airlines has officially entered the top 10 international airlines of 2023, according to the rankings conducted by Bounce, a US-based luggage storage service company that operates in over 1,000 cities worldwide.

Bounce's experts scored 60 global airlines based on criteria such as on-time flight performance, the number of cancellations/delays, quality of in-flight services, onboard meals, seating, staff service, ground support, among others.

Japan Airlines took the lead in the rankings with a score of 8.28 out of 10, followed by Singapore Airlines 7.63 and Qatar Airways 7.5. 

Apart from Vietnam Airlines and the three above carriers, Korean Air, Vistara, All Nippon Airways, Ethiopian Airlines, Air India, Azul Airlines, and Emirates Airline also made them into the top 10.

Vietnam Airlines shares the 10th position with Emirates Airline, both achieving a total score of 5.16./.

Newly-established firms record sharp rise in August

A sharp rise was recorded in terms of the number of newly-established firms in August, according to figures given by the General Statistics Office (GSO).

August recorded over 14,000 new enterprises set up, marking a rise of 2.3% from the previous month and 17.9% on-year.

Furthermore, nearly 6,300 businesses resumed operation in August, a decline of 10.9% against July and 3.1% against the same period from last year. A total of 5,216 firms nationwide withdrew from the market in August alone, reducing by 0.8% compared to July, but rising by 17.1% on-year.

The agency reported that during the January to August period the combined number of newly-established firms and enterprises returning to the market stood at more than 149,400, the highest figure recorded so far.

On average, there were 18,700 new businesses and enterprises resuming operation each month. 

Since the beginning of the year, a total of 124,700 firms have left the market, up 15.6% over last year, with 15,600 businesses withdrawing from the market each month.

Petrol and rice price hike pushes up CPI over eight months to 3.1%

The rising prices of petrol and domestic rice in line with global prices have pushed Vietnam’s consumer price index (CPI) during the eight-month period to 3.1% on-year, according to the General Statistics Office (GSO) on August 29.

August alone saw the CPI increase by 0.88% compared to the previous month. Among the 11 main groups of consumer goods and services, a total of 10 groups of commodity witnessed a rise in price compared to the previous month, while the price of post and telecommunications category decreased by 0.17%.

According to the GSO, the CPI since the beginning of the year to now has tended to see a decrease due to a fall in domestic petrol prices in line with global prices.

This move has made the price of transportation group continuously decrease compared to the same period from last year.

Core inflation in August alone increased by 0.32% over the previous month, representing a rise of 4.02% over the same period from last year.

The eight-month period saw the average core inflation inched up 4.57% compared to last year’s corresponding period, higher than the overall average CPI growth (3.1%).

Hanoi to host largest promotion programme this year

Hanoi Promotion Month 2023 is scheduled to take place from October 27 to November 30 at shopping malls, supermarkets, and sales points of businesses across the capital, according to the Hanoi Centre for Investment, Trade, and Tourism Promotion (HPA).    

The HPA said the opening ceremony of Hanoi Promotion Month 2023 is expected to be held on the evening of October 27 at the Le Thai To walking street around Hoan Kiem lake.

A range of activities will be held throughout the month, including the Hanoi Shopping Festival and Hanoi Mega Sale which aim to introduce high-quality Vietnamese goods, including fashion products, beauty products, consumer goods, cuisine, and beverages, to local consumers.

Firms participating in the campaign are expected to offer discounts of between 20% and over 50% for at least 20% of their products at convenience stores and supermarket chains, as well as on e-commerce websites across Hanoi.

Most notably, huge discounts will be on offer at 50 locations of major supermarkets and shopping malls across the capital on November 11 - 12.

From November 24 to 30, Hanoi Online Festival 2023 will take place at the portal thangkhuyenmaihanoi.vn and via businesses' e-commerce websites.

Hung Yen strives to "light up" Red River region

The People's Council of the northern province of Hung Yen has recently given in-principle approval to a project on the construction of a road connecting tourism culture heritage and promoting economic development along the Hong (Red) River.

The project has a total investment of 9.275 trillion VND (over 386 million USD) and will pass through the districts of Van Giang, Khoai Chau, and Kim Dong, and Hung Yen city, with a total length of 56km. It will be implemented from 2023 – 2027.

Vice Chairman of the provincial People’s Committee Nguyen Le Huy said the project aims to perfect the essential transport infrastructure of the locality, as well as the region in general, in accordance with the approved development plan.

The project is expected to facilitate goods transportation and travel, and make use of the land fund along the route for forming industrial clusters, urban areas, and tourist service zones, thus attracting investment to the districts of Van Giang, Khoai Chau, and Kim Dong, and Hung Yen city.

Once completed and operational, the project will connect cultural and spiritual heritage sites along the Hong River following the Thang Long - Pho Hien - Tam Chuc - Bai Dinh – Huong pagoda axis, facilitating transport connectivity between Hanoi, Hung Yen, Ha Nam and Ninh Binh, he noted, affirming that this represents a breakthrough in transportation infrastructure development in line with the 19th provincial Party Congress’s Resolution.

According to Vice Secretary of the provincial Party Committee Tran Quoc Toan, the provincial People's Committee is tasked with reporting to relevant central agencies, ministries, and sectors for examination, appraisal, and investment decision-making within their authority, in accordance with legal regulations after ensuring funding sources for project implementation.

The northern province has also implemented a project to promote economic development of the land stretches along the banks of Hong and Luoc rivers in the 2021-2025 period with a vision to 2030, aiming to make an economic breakthrough for the potential areas.

The project is expected to attract investment, promote trade and tourism of the areas, while developing those specialised in ornamental flowers, herbal plants, fruit trees, high-tech clean vegetable production, and livestock development.

Under the project, in the 2021-2025 period, economic growth of the area of Hung Yen is expected to reach 7-8% each year, with the income from each hectare of farming land topping 250 million VND (10,495 USD). In 2025, the rate of trained labourers in the area is hoped to reach 71%, while that of poor households is expected be reduced to less than 1% by the end of 2025. The percentage of households accessing clean water is expected to reach 100%.

According to Director of the provincial Department of Planning and Development Trinh Van Dien, as of June, many targets of the project had been completed and exceeded, including 7% economic growth in the riverside area where 23 communes had been recognised as advanced new-style rural areas, and six becoming model new-style rural areas. The area had 46 OCOP products, reaching 150% of the target.

Vietnam Trade Office supports exports to EU

The Trade Office of Vietnam in Sweden and Northern Europe has compiled a book on the European Green Deal (EGD) and its impacts on exporters to the Nordic region.

The European Commission announced the EGD in 2019, a package of actions aimed at reducing greenhouse gas emissions and minimising resources use while achieving economic growth.

This means that products sold in the EU market need to meet higher sustainability standards. This agreement has an impact beyond the territory of the EU, directly affecting global manufacturers and exporters, including Vietnam.

Nordic countries are always at the forefront of environmental protection. At COP27, all Nordic countries reaffirmed and highlighted the importance of responsibility for protecting the environment and reducing the impact of climate change.

In this year’s budget estimates of these countries, there are budget expenditures for green investment activities and support for environmental protection.

The issue of environmental protection will continue to affect the consumption behaviour of Nordic people.

The trade office said the deal may impact some Vietnamese sectors like garment-textile, footwear, agriculture, fishery and steel, as it requires environmentally friendly materials and procedures.

With the book, the trade office hopes that Vietnamese businesses will promptly grasp regulations and market trends to adjust production and have access to new markets.

Apart from challenges, the EGD also offers new opportunities, it said, suggesting Vietnamese firms optimise them to create sustainable, environmentally friendly products in order to get long-term benefits.

The office has also popularised Vietnam International Sourcing 2023 to be held by the Ministry of Industry and Trade in Ho Chi Minh City from September 13-15, aiming to support domestic firms to engage more deeply into the global production and supply chains.

According to the ministry, many foreign supermarkets, distributors and retailers are making their shopping list for products from Vietnamese suppliers at the event, which is expected to connect foreign importers and domestic manufacturers and exporters.

The Vietnam International Sourcing 2023 will include a series of activities, including conferences, trade exchange programmes. It expects the participation of 300 businesses from different areas in the international supply chain.

The Vietnam International Sourcing 2023 is a reputable event that draws leading firms in various fields, including food, garment and textile, footwear, handbag, sportswear, home appliances, furniture, and supporting industries.

This year’s event expects to welcome 8,000 visitors and 150 delegations from 30 countries and territories. It has received greatest-ever interest from world leading companies.

Over 17 tonnes of sugarcane from Hoa Binh exported to the US

A ceremony was held in the northern mountainous province of Hoa Binh on August 25 to ship a batch of 17.3 tonnes of fresh sugarcane to the US.

The event was co-hosted by Tien Ngan Trading and Investment Co. Ltd and the provincial Department of Agriculture and Rural Development.

Director of the provincial Department of Quality Control of Agriculture, Forestry and Fisheries Nguyen Huu Tai said sugarcane is a crop with great export potential and well-suited to the local climate and soil conditions, so it could be grown more to generate high economic efficiency.

Nguyen Le Diep, Director of the Tien Ngan Trading and Investment Co. Ltd, said the company plans to ship 300-500 tonnes of sugarcane to the Republic of Korea, the UK and the EU this year.

According to the provincial Department of Agriculture and Rural Development, local sugarcane has not only been present in various regions nationwide but has also found its way into foreign markets. Starting with just a 120-kg sample batch of purple sugarcane exported to Japan, its export volume has rapidly increased over the years, reaching 5.7 tonnes in 2020, 74 tonnes in 2021 and 300 tonnes in 2022.

The first batch of 20 tonnes of sugarcane was exported to the US on March 19.

Hanoi tops country in FDI attraction in first eight months

Hanoi got over 2.34 billion USD of foreign direct investment (FDI) in the first eight months of this year, topping the whole country in FDI attraction during the period.

The figure is up 2.89 times against last year.

Hai Phong came second with over 2.08 billion USD, increasing by 72.2%, followed by Ho Chi Minh City, Bac Giang, and Binh Duong.

Meanwhile, the capital city attracted nearly 2.3 billion USD of FDI in the first seven months of this year, with 233 new projects worth 97.5 million USD and 108 projects permitted to increase investment capital by 193.5 million USD.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, Vietnam lured close to 18.15 billion USD in FDI from the beginning of this year to August 20, up 8.2% year-on-year.

In the period, there were 1,924 newly registered projects with a combined capital of 8.87 billion USD, up 69.5% and 38.6% compared to the same period last year, respectively.

Meanwhile, over 4.53 billion USD was added to 830 existing projects, down 39.7% and up 22.8% year-on-year, respectively.

Regarding investment partners, in the first eight months of this year, 100 countries and territories have invested in Vietnam. Among them, Singapore is leading with a total investment of more than 3.8 billion USD, accounting for more than 21.2% of total investment capital in Vietnam, down 15.4% from the same period in 2022. 

China ranked second as Chinese investors poured nearly 2.69 billion USD into Vietnam, accounting for 14.8% of total investment capital. 

The implemented capital of foreign investment projects also saw an increase compared to the same period in 2022. As of August 20, 2023, it is estimated that foreign investment projects had disbursed about 13.1 billion USD, an increase of 1.3% over the same period in 2022 and 0.5 percentage points compared to the first seven months of the year./.

Vietnam’s tuna export orders to increase: VASEP

The Vietnam Association of Seafood Exporters and Producers (VASEP) forecast tuna export orders will increase sharply in the last months of the year due to decreasing inventories in major export markets and the recently signed Vietnam-Israel Free Trade Agreement.

VASEP said domestic tuna exporters could expect positive prospects in the second half of this year.

The association said the stockpiled quantity of tuna in the US - one of the main markets of Vietnam has begun to decrease and importers were considering speeding up imports.

By the end of the year, major markets such as the US will have many festivals, so consumer demand will increase. Meanwhile, preferential tariffs are an advantage that has pushed EU importers to seek orders from Vietnam.

Over the past seven months of this year, Vietnam's tuna exports reached nearly 445.6 million USD, down 31% year-on-year, VASEP said.

While exports of high-value fresh, frozen and dried tuna products decreased 46%, shipments of processed and canned tuna goods saw a modest rise of 4% to over 204 million USD, it said.

Besides, exports to the EU, Mexico, Israel and Thailand had recorded high growth over the same period of 2022.

The EU market showed signs of recovery, with a growth rate of 28% in June and July, earning Vietnam a turnover of 12 million USD per month. Notably, in the bloc, exports to the Netherlands also continuously grew remarkably while that to Germany maintained an increase of 30% in June and July.

At the same time, Vietnamese tuna exports to Mexico and Chile also recorded significant hikes of 100% and 90%, respectively. Meanwhile, tuna shipments to Thailand also soared 65% in the last two months.

According to Nguyen Ha, tuna market expert of VASEP, in the context that exports to the main traditional markets had all declined, Israel had emerged as a potential market.

In the first half of this year, Vietnamese tuna exports to Israel hit nearly 25 million USD, up 92% over the same period last year.

Frozen tuna meat and fillets still accounted for the highest proportion of 47%. The export value of this product group saw a yearly hike of 29%. Meanwhile, the export turnover of canned tuna increased 375% and other processed tuna products surged 83%.

Despite being a small country, with no natural resources and limited domestic labour resources, Israel's consumer demand was quite large and solvency was high, so there remained ample room for Vietnam's tuna exports to the market, Ha said.

Especially, the Vietnam-Israel FTA (VIFTA), signed on July 25, would open up opportunities for Vietnam's seafood exports, including tuna, to access the Israeli market and lucrative Middle East region, Ha said.

To penetrate the Israeli market, VASEP Secretary General Truong Dinh Hoe suggested that tuna exporters ensure product quality, carefully study market information, promote credibility and be responsible.

He vowed that VASEP would accompany, research carefully and disseminate market information to businesses.

To facilitate tuna exports, businesses petitioned the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade to grant more quotas for imported raw tuna as domestic tuna raw material could meet only 25% of demand for processing and export, the Binh Dinh Fishery JSC Co suggested.

Bac Giang prioritises trade, service development

The northern province of Bac Giang will put in place many solutions to promote trade and services from now till the end of this year, according to the provincial Department of Industry and Trade.

The locality will coordinate with the Railway Transport and Trade JSC (Ratraco) to soon complete the infrastructure for the Kep railway station, which launched its international freight transportation services since February.

At the same time, it will speed up the attraction of projects in services, logistics, inland container depots, wholesale markets, petrol stations and commercial centres in line with the approved provincial planning scheme for 2021-2030 with a vision to 2050.

More attention will be paid to developing distribution channels, as well as wholesale and retail systems, promoting e-commerce, and raising production and business capacity, and competitiveness, thus helping local enterprises participate in the global supply chains intensively.

The province’s service sector is projected to grow from 9-10% in the 2021-2030 period, targeting diversity, modernity, and sustainability, with production, social and public services going in tandem.

National tourist sites are to be formed and promoted, turning tourism into an important economic sector, the department said, noting that Bac Giang prioritises essential services and encourages new ones.

The priority fields and products include wholesale, retail, motor vehicle repair, transportation, warehouse, logistics, and tourism, with the implementation of Bac Giang city’s logistics centre to be sped up.

The provincial People’s Committee reported that the revenue from lychee and support services was estimated at over 6.87 trillion VND (286.13 million USD) this year, up 91 billion VND from that in 2022.  

e-commerce activities, and fighting against commercial frauds, infringement of intellectual property rights, and unfair competition in e-commerce.

Vietnam's rare earth mining could take off in near future

Vietnam’s rare earth mining industry will likely experience rapid growth in the near future, according to industry experts, as demand has been on the rise steadily in the last few decades.

According to Asia Briefing, a consultant service for investors in Asia, rare earths are essential elements for the production of various products, including cancer drugs, smartphones, and renewable energy technologies, most notably EV batteries.

As the global economy makes a shift to greener and more environmentally friendly energy, rare earth has become a much sought-after commodity on the international market.

According to several studies, China could possess up to 90% of the entire world's reserve of rare earth. As trade tension has been on the rise between China and the US, more companies have been looking for an alternative for Chinese rare earth in a hedging attempt.

According to Reuters, magnet firms from the Republic of Korea (RoK) and China, including an Apple supplier, are set to open factories in the Southeast Asian country.

"The RoK’s Star Group Industrial (SGI) and China's Baotou INST Magnetic would join companies in sectors as varied as electronics and automobiles in shifting assembly lines against a backdrop of increasing trade restrictions, with clients even requesting the move," the newswire service reported.

Vietnam’s rare earth reserves, which are second only to that of China and estimated at 20 million tonnes, remained largely untapped. The country's reserves are mainly distributed in the Northwest region of the country while rare earth mining is mainly concentrated in the Northwest and Central Highlands.

According to Asia Briefing, Vietnam and Japan have forged a close collaborative link in discovering and extracting rare earth. The rare commodity was reportedly found in a number of provinces across the country including Lao Cai, Yen Bai, Ha Giang, Cao Bang, Lang Son, Nghe An, Kon Tum and Lam Dong with the highest known volume in northern Lai Chau province.

In December 2014, a licence was granted to the Lai Chau Rare Earth Joint Stock Company and their Japanese partner to start the extraction of rare earth ores from a site in the province, which was said to be capable of large-scale industrial operation.

Last September, the province hosted a delegation of RoK experts on rare earth mining to discuss the potential of investment.

The Southeast Asian country has still a long way to catch up with its northern neighbour, said industry experts.

According to Reuters, SGI's Vietnam project, for instance, targets 2025 output of 5,000 tonnes of high-end neodymium (NdFeB) magnets per year, enough for 2 million electric vehicles (EVs). However, the country produces just 1% of the world's magnets, showed Adamas Intelligence data cited in a US Department of Energy report, compared with China's 92%.

The country also faces daunting challenges in accessing advanced processing technologies and investment capital.

Interest, however, has been growing as countries scramble to secure supply of the critical minerals. Vietnam also enjoyed other advantages such as low labour costs and market access afforded by multiple major trade deals including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP).

Eight elevated stations of Nhon-Hanoi Station metro line completed

As of August 28, about 99.5% of the work on the construction of the elevated section of the Nhon-Hanoi Station metro line had been completed, including the accomplishment of eight elevated stations across the line, according to the Hanoi Urban Railway Project Management Board.

An elevated station measures 22.5m in height and 24m in width, which is 8m above the road surface.

The eight stations are named according to the geographical locations that the metro route passes through, including Nhon Station, Minh Khai Station, Phu Dien Station, Cau Dien Station, Le Duc Tho Station, National University Station, Chua Ha Station, and Cau Giay Station. Each elevated station is also designed with specific images to promote Hanoi’s culture and values.

The Nhon - Hanoi Station metro project has a total length of 12.5km. The line passes through eight elevated and four underground stations.

Work on the line started in 2009 and was initially scheduled for completion in 2015. After four deadline extensions, it is expected to be finished in 2027.

Export of agro-forestry-aquatic products down 9.5% in eight months

Vietnam's total export-import turnover of agro-forestry and aquatic products in the eight months of this year was estimated at 59.69 billion USD, reported the Ministry of Agriculture and Rural Development.

Of the figure, 33.21 billion USD was worth of exports, down 9.5% annually, but still resulting in a trade surplus of 6.72 billion USD.

In August alone, agro-forestry-aquatic products brought home 4.36 billion USD from exports, down 6.5% annually.

Several commodity groups posted an increase in export value such as fruits and vegetables, rice, and coffee.

Meanwhile, rubber, tea, cashew nuts, pepper, and cassava and its products saw their export prices fall by 2.6-19.6%.

China, the US, and Japan remained the top three importers, with China accounting for 21.9%, up 9.8%; the US 20.6%, down 27.4%; and Japan 7.6%, down 10.6%.

Seizing market opportunities, especially in commodity groups of strength, the ministry has instructed localities to regulate production plans and boost exports, step up negotiations and market access for official exports while expanding export markets.

It is also working with localities to hold the Vietnam Rice Festival 2023 in the Mekong Delta province of Hau Giang.

Samsung Vietnam supports 12 businesses to develop smart factories

Samsung Vietnam, in collaboration with the Ministry of Industry and Trade and localities, held the closing ceremony of the "Smart Factory Development Cooperation Project", phase 1/2023 at 12 participating enterprises in the North to summarise and evaluate the performance of the project.

After nearly three months of implementation (from June 7 to August 23, 2023), the first Smart Factory Development Cooperation Project has achieved many impressive results. Vietnamese consultants, together with Korean Samsung consultants, directly survey, evaluate and consult businesses.

The project also supported the development of smart factory models for 12 enterprises, including five from Bac Ninh, one from Vinh Phuc, two from Hanoi, three from Hung Yen and one from Ha Nam, and achieved many positive results.

Kweon Hyeogchel, a consultant from Samsung Korea, emphasized that “I clearly felt the strong spirit of business leaders during project implementation towards the goal of developing the Smart Factory model, further improving its own competitiveness in the context of intense competition and current economic difficulties.”

Choi Joo Ho, President of Samsung Vietnam, said “I am really delighted and proud to be able to visit the site and witness with my own eyes the spectacular change of businesses as a result of their participation in the Smart Factory Development Cooperation Project. Every nook and cranny of the factory appears to be taken care of by experts.”

“Furthermore, I believe that when businesses are determined to realise the smart factory model, the Vietnamese Government could ease the burden on these enterprises by applying policies that support cost subsidies or tax breaks,” he added.

Pham Tuan Anh, Deputy Director of the Department of Industry, said "The enterprises participating in the project have promoted their strengths, applied creativity effectively, actively and proactively in the implementation of tasks and support solutions from experts, and have achieved important and positive results.”

Thang Long Packaging Production and Import-Export Joint Stock Company is one of the enterprises participating in this project.

Nguyen Minh Ngoc, general director of the company said "Previously, we managed data entirely by manual methods. This project helped us digitise and manage the data on the software and the system.”

The project "Support for the development of smart factories" phase 2/2023 will be implemented in the southern region from September 2023, and will also advise 12 businesses.

VAMC aims to double charter capital

The Vietnam Asset Management Company (VAMC) has asked the State Bank of Vietnam for approval to double its charter capital from the existing VND5 trillion to VND10 trillion.

VAMC said that its current charter capital appears modest when compared to the scale of bad debt prevalent in the market. This proposition aligns with the objectives outlined in Decision 1058, which aims at resolving bad debt issues from 2016 to 2020.

VAMC has also sought endorsement for the issuance of interest-bearing bonds to facilitate debt acquisition, in accordance with the provisions of Circular 32/2019 by the central bank. This strategic step would complement the provisions of Circular 19/2013, enabling VAMC to issue bonds, including specialized ones, for acquiring bad debt.

The proposed coupon rates for these bonds, including the specialized bonds, are set at 0%.

This initiative forms part of VAMC’s comprehensive strategy to manage distressed assets held by banks.

VAMC has acquired around VND13 trillion worth of bad debt at prevailing market prices since 2017, with over VND11 trillion already recovered, the Vietnam News Agency reported. This approach by the company has invigorated the secondary debt market and has spurred credit flows within the economy.

Alternative routes advised as HCMC-Long Thanh expy seen congested during holiday

Motorists have been advised to consider using alternative routes in place of the HCMC-Long Thanh Expressway during the upcoming National Day holiday from September 1 to 4 as heavy traffic congestion has recently become a common sight on the expressway.

The advisory, issued by the Vietnam Expressway Services Engineering Joint Stock Company (VEC E) prior to the commencement of the holiday, is aimed at diverting traffic to other roads to prevent heavy traffic congestion on the expressway.

Since Phan Thiet-Dau Giay Expressway was opened to traffic four months ago, the volume of traffic on the HCMC-Long Thanh-Dau Giay Expressway has significantly increased. Around 62,000 vehicles are estimated to travel daily on the section from An Phu intersection in HCMC to the HCMC-Long Thanh-Dau Giay Expressway interchange with Phan Thiet-Dau Giay Expressway. The vehicle number sometimes surged to 70,000 or 73,000 during peak hours, raising safety risks on the road.

Motorists have also been advised to maintain a safe distance to prevent traffic accidents on the HCMC-Long Thanh route.

The 55-km HCMC-Long Thanh-Dau Giay Expressway, operational since 2015, is often congested on weekends and public holidays due to the increased number of vehicles.

In late April, the Phan Thiet-Dau Giay Expressway connecting Dong Nai and Binh Thuan provinces was opened to traffic, resulting in a travel time of a little more than two hours from HCMC to the resort town of Mui Ne in Phan Thiet City.

Construction steel prices plunge to three-year lows

In the span of just one week, domestic steel prices have dropped by nearly half a million dong per ton to VND13.5-13.75 million, the lowest levels since 2020.

On August 27, Hoa Phat, which dominates 30% of the nation’s construction steel market, listed rebar D10 CB300 at VND13.74 million per ton and rolled steel CB240 at VND13.53 million per ton. These figures are VND300,000 to VND400,000 per ton lower than in the previous week.

Similar price cuts happened at other steel manufacturers such as Tungho and VAS, which have offered their products at VND13.5 million per ton in the past week. Meanwhile, VNSteel and Pomina priced their steel at VND14 million to VND14.3 million per ton. This is the 18th consecutive price decline of construction steel this year.

The drop in steel prices can be attributed to low domestic demand, which has been caused by the lackluster performance of the real estate sector. The Vietnam Steel Association forecast that construction steel prices will continue to plummet due to the prevailing weak demand.

Data from the Ministry of Industry and Trade showed that demand for imported materials for steel manufacturing plummeted by 31% in the first seven months of the year, primarily due to a significant decline in orders faced by steel exporters. The global steel demand slump has led to an almost 25% decrease in domestic market prices for these products.

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