Israeli-based financial market news site seekingalpha.com has recently published an article describing Vietnam as an increasingly attractive investment destination thanks to its sturdy GDP growth, strides made in its high-tech manufacturing capabilities, and strong ties with the United States.

The article points out that the country’s increasing resilience shines as its GDP steadily grows despite facing global challenges. The country is drawing further foreign investment whilst it is making strides in high-tech manufacturing, particularly semiconductors, thereby positioning itself in the global supply chain.

With a booming rare earths industry and strong US ties, the country is set to play a pivotal role in various sectors.

In fact, the Vietnamese economy grew by 8.0% in 2022, benefiting from the export of goods during the COVID-19 pandemic. This year has seen the Vietnamese economy stabilise at a GDP growth of 5.3% year on year in the third quarter.

The country’s economy has been fairly resilient, despite headwinds from higher commodity prices resulting from the Russia-Ukraine conflict and a slowdown in China.

The article outlines that the country’s trade has faced some challenges this year due to reduced demand from major trade partners. Exports fell by 10% year on year in the first eight months before finally turning positive in September.

The Vietnamese manufacturing industry’s contribution to the economy as a whole continues growing, although the value it adds has remained relatively flat due to fragmented supply chains.

The Vietnamese Government is keenly aware of this challenge and is actively trying to lure foreign investments in high-tech manufacturing, particularly in the semiconductor industry.

The country has signed multiple Free Trade Agreements (FTAs) to encourage foreign cooperation with its local industries. Policymakers are also offering supportive measures such as tax incentives, preferential loan rates, waived import duties, and preferential land use fees for high-tech factories.

Strong support from the Government appears to be yielding some early results. The country has achieved impressive growth in electronics exports, notably to the US. From virtually zero, Vietnam now accounts for around 10% of all US electronics imports.

Most notably, the newswire states that despite facing a challenging environment characterised by sluggish growth and lackluster export performance throughout the year, Vietnam has managed to attract US$15.9 billion in Foreign Direct Investment (FDI) since the beginning of the year.

The manufacturing industry maintained its position as the primary attraction for FDI, with investments exceeding US$14 billion, duly reflecting a substantial gain of 15.5% year on year.

This achievement is significant given the prevailing uncertainty, inflationary pressures, and waning confidence occurring in the global economic landscape. Key Apple suppliers such as Foxconn Technology Group, GoerTek Inc., Luxshare Precision Industry Co., and Pegatron Corp. have all set up factories in the nation, bringing the electronics industry’s share of total exports up to 32% in 2022.

Moreover, the Government has been courting key players in internal circuit design and semiconductor industries in order to encourage further investment. These firms include industry leaders such as Nvidia, Synopsys (Qualcomm), Marvell, and Cadence Design Systems. These are all positive developments for the nation and speak to its future technological potential.

The article concludes that the country stands at the threshold of an exciting economic transformation, particularly as it has demonstrated impressive resilience, attracting foreign investments, and fostering growth in high-value industries.

With substantial rare earth reserves and a growing semiconductor industry, Vietnam is poised to become a vital player in global supply chains. The strong partnership that exists with the US further solidifies its position as part of the global economic landscape.

VCCI proposes removing draft regulation on loan interest expense cap

Management authorities should not try to restrict the thin capitalisation of domestic enterprises by applying a loan interest expense cap regulation, the Vietnam Chamber of Commerce and Industry (VCCI) said.

The Ministry of Finance (MoF) is collecting comments on a draft decree that amends and supplements Decree 132/2020/NĐ-CP on tax management for enterprises with associated transactions.

Under a written proposal sent to the MoF, the VCCI said the loan interest expense cap regulation under the draft decree will have adverse impacts on enterprises and the ability to form economic groups in the country.

​According to the VCCI, the thin capitalisation means that an enterprise operates mainly on borrowing capital, which causes its ratio of loan capital to equity too high. Limiting the thin capitalisation of enterprise will help ensure financial security, and avoid large enterprises from borrowing too much and easily losing liquidity.

However, the VCCI believes that the loan interest expense cap regulation is unreasonable and causes many negative impacts on Vietnamese enterprises, especially large one, as the thin capitalisation is common and necessary in the early stage of industrialisation in developing countries.

The VCCI explained in fact, in developing countries with late industrialisation, growth motivation depends heavily on the ability to reduce product costs that is based on capital accumulation and more flexible management. Accordingly, enterprises must rely heavily on loans and the assistance of lenders to enhance corporate governance capacity and reduce costs. As financial markets not being truly transparent in late industrialisation countries, enterprises there depend more on loans than their counterparts in early industrialisation countries.

Therefore, the VCCI suggests the application of anti-thin capitalisation rule of developed countries needs to be considered more carefully in Việt Nam.

Besides, the VCCI was also concerned the loan interest expense cap regulation also negatively impacts the formation of domestic economic groups and their motivation to invest in risky fields.

According to the VCCI, normally, when a subsidiary wants to invest in a risky field, its parent company will borrow from banks and then re-lend it to the subsidiary. This is an associated transaction and is subject to the loan interest expense cap regulation.

Therefore, the VCCI requested the drafting agency to exempt the regulation for associated transactions between domestic enterprises with the same tax payment.

In addition, in the proposal sent to the MoF, the VCCI also said the regulation on loan interest expense of enterprises with associated transactions must not exceed 30 per cent of total net profit is unreasonable.

According to the VCCI, at the end of 2022 and early 2023, due to macroeconomic uncertainties, interest rates in the market increased sharply which caused interest costs of many enterprises to surge beyond 30 per cent. Enterprises still had to pay banks for the interest costs that exceeded the 30 per cent rate, and the costs were not considered a deductible expense when calculating taxes. Therefore, despite suffering large losses due to a sharp increase in interest costs paid to banks, many enterprises reported to the VCCI that they still had to pay corporate income tax to the State.

The MoF has recently proposed to amend in the direction of excluding the determination of affiliated relationships when banks do not participate in operating, controlling, contributing capital or investing in borrowed enterprises. It means enterprises may not be subject to the 30 per cent interest cost cap regulation if banks that they borrow from do not operate, control, or contribute capital in the enterprises.

The MoF is due to collect comments on the draft decree in the first quarter of 2024 before submitting it to the Government for promulgation in the third quarter of 2024.

Previously, the HCM City Real Estate Association (HoREA) also proposed that the MoF remove the 30 per cent loan interest expense cap because it is unnecessary. HoREA believes that the cap should only apply to foreign enterprises that have affiliated transactions and have not yet applied the global minimum tax.

Proposal to transfer management of petroleum reserve to finance ministry

The Ministry of Industry and Trade has proposed the Government allow it to transfer the task of managing the national petroleum reserve to the Ministry of Finance in order to unify the management of reserves of essential goods into a single ministry.

The proposal was raised in the ministry’s report to the Government about the national petroleum reserve.

Under the Law on National Reserve, the Ministry of Finance is directly in charge of managing reserves of essential goods, such as rice.

As petroleum is also an essential good, the Ministry of Industry and Trade said that the management should be transferred to the finance ministry in the 2024-25 period.

In Việt Nam, petroleum reserves are kept in two forms: reserve by businesses and the national reserve.

However, in fact, it was difficult to separate the national petroleum reserve from the reserve of enterprises because the State did not have the infrastructure for petroleum reserves and must rent from enterprises.

Four enterprises which lease the infrastructure for the national reserve storage include Việt Nam National Petroleum Group (Petrolimex), PetroVietnam Oil Corporation (PVOil), Đồng Tháp Petroleum Trading Import Export Company Limited and Petrolimex Aviation.

The industry and trade ministry said that there are a number of difficulties in the management of the national petroleum reserve, including low maintenance cost norms, at VNĐ14,900 (US$0.62) per cu.m, which has been kept unchanged for the past two decades.

Meanwhile, the actual cost is around VNĐ75,000-150,000 per cu.m.

This has caused a shortage of resources for investing in infrastructure for petroleum reserve, the industry and trade ministry said.

In addition, the Ministry of Finance has not issued the criteria for the national reserve of petroleum products, which has caused difficulties in management.

The legal framework for the management of the national petroleum reserve remains inadequate and lacks consistency and appropriateness to the real situation, the ministry said.

By the end of 2022, the national petroleum reserve was at 361,125cu.m, 55 per cent of which was diesel, 27 per cent petrol RON 92, and the rest mazut oil and Jet A1, equivalent to seven days of net import.

Việt Nam’s total petroleum reserve is estimated at around 65 days of net import, much lower than demand.

The ministry proposed the national petroleum reserve be raised to 20 days of net import by 2030, including crude oil, or at least 15 days of net import.

The ministry proposed the national petroleum reserve be raised from nine days of net import to 15 days and 30 days in the 2026-30 period, in the context of global uncertainty affecting the energy market.

To achieve the goal, the ministry said that it is necessary to issue technical standards and cost norms for the national petroleum reserve. In addition, investment in storage infrastructure should be sped up.

It was previously estimated that Việt Nam would need around VNĐ4.1 trillion per year to increase the national petroleum reserve. 

Public investment stocks are even more attractive

Accelerated disbursement of public investment capital in late 2023 and its sustained momentum in 2024 will fuel strong growth for infrastructure construction companies.

Public investment disbursement is in the final stretch. At the regular Government meeting held on December 6, Prime Minister Phạm Minh Chính said that there is very little time left in 2023, while there are many unfinished tasks. Therefore, the PM requested government members to propose solutions to achieve the set objectives.

According to the Ministry of Planning and Investment (MPI), public investment disbursement until the end of November reached VNĐ461 trillion (US$19 billion), equivalent to 65.1 per cent of the 2023 plan. 

There is still approximately VNĐ247 trillion of undisbursed capital, requiring resolute and coordinated efforts at all levels of the political system to achieve the highest completion rate, as directed by the PM in Directive No 08, which aims for a disbursement rate of over 95 per cent.

Nguyễn Đức Chi, Deputy Minister of Finance, said that the ministry will consider disbursement of completed investment projects within the prescribed time, no more than three working days from receipt of dossiers.

In fact, there are a lot of active public investment projects underway, and construction contractors have a full schedule.

On December 6, Deputy Minister of Transport Nguyễn Duy Lâm inspected the construction status of the Mỹ Thuận 2 bridge project. The bridge connects Trung Lương - Mỹ Thuận and Mỹ Thuận - Cần Thơ expressways, shortening the distance between HCM City and Cần Thơ. 

The total value of construction of Mỹ Thuận 2 bridge to date has reached about 97 per cent of the volume. Of the five bidding packages of the project, four have been completed. The remaining package can be completed before December 25.

Meanwhile, on December 5, the People's Committee of Cao Bằng Province announced the results of selecting investors for the Đồng Đăng - Trà Lĩnh expressway construction investment project (Lạng Sơn - Cao Bằng).

The joint venture of Đèo Cả Group JSC - ICV Vietnam Investment and Construction JSC - Đèo Cả Traffic Infrastructure Investment JSC - 568 Project Construction JSC was chosen to construct the project.

Đèo Cả Group has researched and proposed a plan to adjust the route with many mountain tunnels and valley overpasses, shortening the route length by 23km and reducing the total cost to nearly VNĐ23 trillion, equivalent to a reduction of nearly half compared to the original plan. 

Of which, the first phase of Đồng Đăng - Trà Lĩnh Expressway has a length of 93.35km, starting point at the intersection of Tân Thanh border gate in Lạng Sơn Province and ending point at the intersection with National Highway 3, Quảng Hòa District in Cao Bằng Province, with a total investment of more than VNĐ14 trillion.

VNDirect Securities Corporation expects that public investment disbursement in 2023 will increase by about 25 per cent and remain positive in 2024. According to the 2024 State budget plan provided by the Ministry of Finance (MoF), development investment spending is VNĐ677 trillion, excluding the remaining balance that must be disbursed from 2023.

“If we assume that 89 per cent of the plan assigned by the Government will be disbursed this year, there will be VNĐ83 trillion left to add to the total public investment capital next year. As a result, the total target disbursement capital in 2024 will be VNĐ760 trillion, 5 per cent higher than the Government's target in 2023," VNDirect said.

With the motivation from public investment, FiinGroup believes that infrastructure construction businesses have positive growth prospects in 2024.

The infrastructure construction segment of Vinaconex (VCG) is expected to benefit from the Government's policy of promoting public investment, said Yuanta Securities Company. Currently, Vinaconex is participating in five component projects of the North - South Expressway project phase 1 and three component projects of phase 2 and bidding packages of Long Thành Airport (Vietur joint venture).

On the stock exchange, the largest foreign fund managed by Dragon Capital, Vietnam Enterprise Investment Limited, completed purchasing 1.3 million VCG shares of Vinaconex on November 2, increasing its ownership from 8.44 million shares to 9.74 million shares.

Meanwhile, KB Vietnam Securities Company predicts that the prices of HHV shares of Đèo Cả Traffic will rise to VNĐ20,400 per share as traffic flows at BOT stations rise by 5 to 20 per cent. The company also encourages the implementation of public investments to support the growth of roads, bridges and infrastructure.

BSC Securities Company estimates that in 2023, Đèo Cả Traffic's revenue could reach VNĐ2.6 trillion, with profit after tax of VNĐ365 billion, an increase of 25 per cent and 37 per cent from 2022, respectively. By 2024, the business is likely to achieve revenue of over VNĐ3.1 trillion and profit of VNĐ445 billion.

Analysts said that public investment stocks are witnessing positive outlook, but investors need to be selective and learn more about business results before disbursement.

Trade promotion conference for Southeast region slated for this month

A trade promotion conference for the Southeast region will take place in the southern province of Bình Dương on Wednesday with the participation of up to 300 delegates.

Co-organised by the Ministry of Industry and Trade (MoIT) and the People's Committee of Bình Dương Province, the upcoming event aims to help localities in the Southeast region speed up trade promotion, connect supply and demand, and advertise their industries and products. 

It also targets to support businesses to exploit the free trade agreements that Việt Nam has signed to develop products, diversify markets and supply chains, and promote import and export.

The Southeast region has emerged as an economic leader and the largest trade, industry, tourism, and service development centre in Việt Nam thanks to its natural advantages and strategic economic and political geographical location, according to the MoIT's Trade Promotion Agency. 

The region has also become an ideal destination for foreign investors, a potential area for shifting and restructuring supply chains, creating opportunities for Vietnamese businesses to join the global production network, it said. 

Data from the General Department of Customs, the region's import-export turnover in the first 10 months reached US$181.4 billion, accounting for 32.4 per cent of the country's total trade.

Among localities in the region, HCM City took the lead with a turnover of $80.4 billion, followed by Bình Dương and Đồng Nai with over $43.1 billion and $30.9 billion, respectively. 

Vietjet launches Hanoi- Siem Reap direct route

Air carrier Vietjet on December 12 held a ceremony to launch a new route linking Hanoi directly with Cambodia’s Siem Reap.

The event took place within the framework of the Vietnam-Cambodia investment and trade promotion forum with the attendance of Prime Minister Pham Minh Chinh, his Cambodian counterpart Samdech Moha Borvor Thipadei Hun Manet, representatives from ministries, agencies and businesses of the two countries.

The flights will serve passengers from December 15, 2023, with seven round-trips per week and a flight time of 1 hour and 45 minutes per leg.

The Cambodian PM spoke highly of the opening, adding he hopé that Vietjet will open more routes connecting Vietnam with Cambodia.

According to a representative from Vietjet, the Hanoi - Siem Reap route will contribute to facilitating and promoting cooperation in investment, tourism, and cultural and educational exchanges between Vietnam and Cambodia.

Flying with Vietjet, passengers also receive complimentary SkyCare insurance, experience flights on new aircraft with professional and dedicated crews, and enjoy delicious hot and fresh meals.

Vietjet is a fully-fledged member of the International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate.

As Vietnam’s largest private carrier, the airline has been awarded the highest ranking for safety with 7 stars by the world’s only safety and product rating website airlineratings.com and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal.

The airline has also been named as Best Low-Cost Carrier by renowned organisations such as Skytrax, CAPA, and Airline Ratings.

Vietnamese economy under scrutiny through half term of 13th National Party Congress

The Vietnam Economic Forum was held on December 12 in Hanoi to discuss the Vietnamese economy at the half term of the 13th National Party Congress.

At the forum, experts pointed out that the prolonged COVID-19 pandemic has caused severe consequences such as disruptions occurring in supply chains, rising inflation, high interest rates leading to a decline in growth, and increased risks in financial and currency markets.

Furthermore, strategic competition between major countries and the Russia-Ukraine conflict have also had a profound impact on political, economic, and social security on a global scale.

To cope with the global uncertainties, during the first half of the term of the 13th National Party Congress, a total of 36 Resolutions and 54 Conclusions were issued, including several resolutions relating to accelerating economic development and promoting economic recovery.

Associate Professor, Vu Trong Lam, director and editor-in-chief of the National Political Publishing House Truth, emphasised that the implementation of economic recovery is the major task of the Party in the first half of this term.

He cited Vietnam as being a bright spot in the "gloomy picture" of the wider global economy. Specifically, last year saw the country’s GDP growth reach 8.02%, the highest increase in the 2011 to 2022 period.

Total export and import turnover hit a record of US$732 billion, duly representing an increase of 10% compared to 2021.

Vietnam continues to be among the group of 25 leading economies in the world in terms of trade, he said, adding that the country’s GDP growth will reach over 5% this year despite global uncertainties, a level that remains high compared to many countries around the region and throughout the world.

From now until the end of the term, experts underlined the need to make a change in terms of mindset, synchronously revise institutions for sustainable economic development, innovate growth models, restructure the national economy, accelerate industrialisation and modernisation, and promote the agricultural and rural economic development.

Think tanks also underlined the importance of further improving the efficiency of public investment, removing bottlenecks faced by businesses and promoting digital transformation, with a specific focus on digital society, the green economy, and circular economy in the time ahead.

Japanese-funded project helps enhance capacity of Vietnamese SMEs

A conference took place in Hanoi on December 12 to review a technical cooperation project supporting small- and medium-sized enterprises (SMEs) in production development, funded by the Japan International Cooperation Agency (JICA).

Addressing the event co-organised by JICA and the Ministry of Planning and Investment (MPI)’s Agency for Enterprise Development, Deputy Minister of Planning and Investment Tran Duy Dong assessed that after more than three years of implementation, despite the relatively small scale of the project (about 3 million USD) and COVID-19-induced difficulties facing it in the initial stage, its support activities have had a positive ripple effect and achieved some encouraging results.

Such initial achievements will spread, increasing confidence within the Vietnamese business community, he said. Together with the government’s programmes and policies, this will help the group recover and develop sustainably.

Hiroaki Yashiro, the JICA chief advisor of the project, said the 35 companies receiving support have earned positive outcomes through their efforts to improve productivity. Furthermore, via management training classes for CEOs, participating firms have learned innovative thinking to apply to their operations adapting to the Fourth Industrial Revolution.

Dong suggested the Japanese Embassy in Vietnam, JICA, and relevant agencies continue to actively coordinate with the MPI to propose the Japanese Government further provide technical assistance for Vietnam in enhancing the competitiveness of its private sector. The focus should be on supporting capacity improvement of Vietnamese experts and consultants in consulting local SMEs based on Japanese practices and experiences, he said.

Businesses benefit from RoK-funded energy efficiency project

Many Vietnamese businesses have benefited from a Republic of Korea (RoK)-funded project on promoting energy efficiency investment in the industrial sector and supporting the implementation of the green growth action plan in Vietnam (EE&GG), heard a seminar held in Hanoi on December 12.

The EE&GG project, funded by the RoK Government via the Korea International Cooperation Agency (KOICA), is part of the cooperation between the two governments to help Vietnam achieve sustainable development.

Implemented from 2021 to 2025 at a total cost of 6.4 million USD, it focuses on promoting the development of an energy efficient investment market for the industrial sector to seek potential projects and financial sources. The project also provides technical guidance on green growth for some sectors and areas, according to the Ministry of Industry and Trade (MoIT).

Trinh Quoc Vu, Deputy Director of the MoIT’s Energy Efficiency and Sustainable Development Department, said that in 2023, the project chose 10 energy-intensive businesses to conduct audits on and proposed energy saving solutions for them.

Many of them have benefited from this project, including Duyen Hai Thermal Power Company, Vietnam - Italy Steel Joint Stock Company, Viet Tri Paper Joint Stock Company, Huong Sen Yarn Co. Ltd, and Ton Dong A Corporation, he added.

Director of KOICA Vietnam Office Lee Byung Hwa said if the intensity of electricity and energy use is not reduced, it will be hard for the country to reach the target of net zero emissions by 2050. Though the national targets and policies on energy efficiency have been issued, energy consumption in key sectors is still high, so there remains much room for promoting energy saving practices.

In the coming time, KOICA will continue supporting and cooperating with Vietnam in various areas, including this project, to assist local firms to cut energy use, he went on.

At the seminar, experts held that on the path to a green economy, the attraction of resources is of critical importance as it will affect implementation methods. Therefore, it is necessary to secure coordination among central and local agencies, all economic elements, between state agencies and stakeholders in society, and especially assistance from the international community and financial institutions.

Le Viet Anh, Director of the Department of Science, Education, Natural Resources and Environment under the Ministry of Planning and Investment, noted Vietnam has recorded progress in the mobilisation of financial resources for green growth. Resources from state-owned and private businesses are making up an increasing proportion in green investment, particularly in the fields of energy and environment.

However, Anh admitted, despite strong growth and encouraging strides, the green economy of Vietnam is still at the initial stage, and numerous difficulties and challenges remain. Given this, stronger cooperation and efforts by the political system, especially localities, are needed to promote the implementation of the green growth strategy.

Vietnam Int’l Lift Expo 2023 opens in HCM City

The Vietnam International Lift Expo 2023 opened in Ho Chi Minh City on December 12.

Organised by Spex International Company Limited, it gathers more than 100 domestic and foreign exhibitors, including those from China, Germany, the US, Japan, and the Republic of Korea.

At the more than 300 booths, businesses are displaying a range of products and technologies emerging in the global industry, along with parts and accessories.

According to Nguyen Thi Kim Lien, a representative of the organising board, over the recent times, the industry has contributed significantly to the construction sector.

A number of exchanges will be held on the sidelines of the exhibition to help local enterprises gain broader access to both domestic and foreign partners.

First held in 2019, the expo, the largest professional elevator exhibition in Southeast Asia, aims to introduce products and seek partnerships.

The exhibition will run until December 14.

Vietnam, Cambodia promote cooperation in industry and trade

Minister of Industry and Trade Nguyen Hong Dien on December 12 held a working session in Hanoi with Cambodian Minister of Commerce Cham Nimul and Minister of Industry, Science, Technology and Innovation Hem Vandy, on the occasion of an official visit to Vietnam by Cambodian Prime Minister Hun Manet.

The two sides agreed that bilateral cooperation in trade and industry has made noteworthy progress in the recent past. In 2022, Vietnam - Cambodia trade turnover grew nearly 11% from 2021 to reach nearly 11 billion USD. Of the figure, Vietnam's exports to Cambodia stood at 5.75 billion USD, up 19% year-on-year while imports from Cambodia reached 4.82 billion USD, an increase of 2.48%.

In the context of negative fluctuations in the world situation in the first 11 months of 2023, trade between Vietnam and Cambodia totaled nearly 8 billion USD. Vietnam is Cambodia's third-largest trading partner and its largest trading partner in the Association of Southeast Asian Nations (ASEAN).

Vietnam has been developing a remarkable number of projects in Cambodia to supply raw materials for domestic industrial production, especially rubber, thereby contributing to helping Cambodia stabilise people's lives and develop its economy. Cambodia is also a market for iron and steel products, construction materials, processed foods, and consumer goods from Vietnam. 

The two sides agreed on several measures to promote economic - trade and industrial cooperation between the two countries, aiming for higher trade turnover in the coming time through reviewing, supplementing and signing new legal frameworks relating to trade.

They also pledged to strengthen coordination and exchange information to fight cross-border smuggling, enhance the exchange of experiences to improve the business investment environment as well as policies to attract investment in the field of industrial production in Cambodia.

The ministers reached consensus on considering a mechanism of annual meetings of the three ministries to promote Vietnam-Cambodia collaboration in the fields of trade and industry.

They agreed to continue to coordinate closely to address the remaining obstacles in trade and industrial relations between the two countries.

Vietnam-Africa workshop supports food system transformation

A Vietnam-Africa policy dialogue workshop on South-South cooperation to support food system transformation took place in the Mekong Delta province of Hau Giang on December 12, as part of the ongoing Vietnam-Hau Giang International Rice Festival 2023.

Co-hosted by the Ministry of Agriculture and Rural Development (MARD), the United Nations Food and Agriculture Organisation (FAO), the International Rice Research Institute (IRRI) and the provincial People's Committee of Hau Giang, the event aimed to facilitate dialogue on the scale, methods, and effectiveness of technical cooperation between Vietnam and several African countries. The aim is to share experience in South-South cooperation in developing the rice trade and connecting value chains of agricultural products.

Speaking at the event, Minister of Agriculture and Rural Development Le Minh Hoan said with its previous experience and the support of international donors, Vietnam is ready and committed to extending South-South cooperation to assist African nations in ensuring food security and nutrition, toward the goals of green growth, sustainable development and prosperity.

Delegates at the event discussed promoting sci-tech cooperation suitable for conditions in Africa, recommendations from FAO on improving the interconnectivity of agricultural and food value chains in the South-South region, fostering South-South cooperation in rice trade and global food security, and technical collaboration between Vietnam and African countries in the transformation of food and agriculture systems.

They also shared experience in sustainable rice development in South-South cooperation from the "Green Innovation Centres - GIC" project.

On the occasion, the MARD and IRRI signed a letter of intent on coordinating sci-tech and institutional efforts in South-South cooperation to support the transformation of food and agriculture systems.

Ho Chi Minh City, Turkey further cooperation in tourism development

Ho Chi Minh City and Turkey will further their cooperation in tourism development which is the content of the meeting between HCMC leaders and Turkish counterparts.

On the afternoon of December 11 (local time), within the framework of a working visit to the city of Istanbul, Republic of Turkey, the Ho Chi Minh City National Assembly delegation led by Deputy Head of the city National Assembly delegation Van Thi Bach Tuyet had a meeting with representatives from the Turkish Tourism Association.

At the meeting, the two sides exchanged a lot of information about the tourism development of the two countries as well as the removal of obstacles that need to be resolved to facilitate the two countries’ cooperation in tourism development.

Member of the Executive Board of the Association of Turkish Travel Agencies (TURSAB) while receiving the HCMC delegation introduced the TURSAB’s activities and Turkey’s tourism industry.

On behalf of the delegation, Ms. Van Thi Bach Tuyet thanked Mr. Yildirim Tas and members of the Turkish Tourism Association for spending their valuable time welcoming the HCMC delegation. Expressing her impression of the tourism activities of Istanbul and Turkey, she emphasized that the Ho Chi Minh City National Assembly delegation longed to learn about Turkey’s tourism activities as well as issues related to monument preservation and connection of tourism activities in Ho Chi Minh City and Istanbul in particular, and Türkiye in general in addition to the promotion of diplomatic cooperation with Istanbul.

The representative of the Association of Turkish Travel Agencies said that Vietnam and Türkiye have signed a number of agreements in tourism such as the investment promotion and protection agreement and double taxation avoidance agreements which are considered a favorable condition for relations between the two countries.

Talking about the tourism industry of Ho Chi Minh City and Vietnam in 2023, Ms. Van Thi Bach Tuyet said that in 2019, the Covid-19 epidemic had a significant impact on the domestic tourism industry. In 2023, Vietnam aimed to attract 8 million international visitors, but so far Vietnam has reached 11 million international visitors. Ho Chi Minh City alone has so far reached nearly 5 million international visitors as per planning.

However, not many Turkish holiday-makers pay visits to Ho Chi Minh City and Vietnam, said Ms. Tuyet. She promised to submit a proposal about a solution for difficulties in visa-making procedures to the Government and National Assembly after the Turkish Tourism Association pointed out that complicated visa-making procedures are the culprit of the problem. Furthermore, she promised to urge relevant ministries and agencies to promote the signing of a tourism cooperation memorandum with Turkey.

Ho Chi Minh City and Istanbul have had direct flights for many years which facilitate the promotion of cooperation and develop tourism in the two cities, according to Ms. Van Thi Bach Tuyet.

At the meeting, the Turkish Tourism Association proposed that the two countries sign a memorandum of understanding on tourism cooperation. The association also suggested HCMC should have a representative in Turkey who will be responsible for promoting Vietnam's tourism. Ms. Van Thi Bach Tuyet affirmed that Ho Chi Minh City will send a representative to promote Ho Chi Minh City's tourism in Türkiye.

Tay Ninh allows temporary warehouse operation at Xa Mat Border Gate area

Tay Ninh Province permits some warehouses and yards to temporarily operate during a period not exceeding one year for carrying out customs supervision and cargo inspection procedures.

The People's Committee of Tay Ninh Province has recently issued a document addressing the temporary resolution of the demand for warehouses and yards to facilitate the import and export activities of goods at the Xa Mat international border gate during the peak season for importing seasonal agricultural products.

The Tay Ninh Provincial People's Committee permits some warehouses and yards that have not yet secured land planning but have installed equipment capable of facilitating the inspection and monitoring of imported and exported goods in border areas to temporarily operate during a period not exceeding one year for carrying out customs supervision and cargo inspection procedures.

Earlier, on November 27, 2023, the SGGP Newspaper reported on the deficiencies and congestion at locations for gathering, inspecting, and monitoring imported and exported goods at various border checkpoints in Tay Ninh Province.

Accordingly, Tay Ninh currently has 16 border checkpoints, including three international border gates, namely Moc Bai, Xa Mat, and Tan Nam; three main gates, namely Chang Riec, Ka Tum, Phuoc Tan; and ten subsidiary gates. However, the cargo warehouses and yards catering to import and export activities do not meet the required standards, and some locations for gathering, inspecting, and monitoring goods at some checkpoints are experiencing overloading.

Over 300 enterprises consult HCMC on recovering growth momentum

The Investment Legal Support Forum 2023 was opened on December 12 with a participation of more than 300 domestic and foreign enterprises.

 Mr. Pham Trung Kien, Deputy Director of Ho Chi Minh City Department of Planning and Investment shares the legal difficulties that investors are facing.

At the forum, domestic and foreign investors gave various opinions, mostly concentrating on issues of preferential policies, safe legal corridors for investment activities through public-private partnerships (PPP) form and attracting investors to green projects.

Deputy Director of the Ho Chi Minh City Department of Planning and Investment Pham Trung Kien said that investment under public-private partnerships (PPP) form in the context of implementing Resolution No.98 would be a chance and challenge for both investors and city authorities.

Mr.Vo Van Hoan, Vice Chairman of Ho Chi Minh City People's Committee, record opinions about Ho Chi Minh City's development.
Accordingly, Vietnam has issued the PPP law and some other legal documents stipulating the investment form.

In Ho Chi Minh City, Resolution No.98 is an important legal base, creating favorable conditions for the city to proactively select, call for and implement feasible PPP projects. However, the implementation of PPP projects has faced difficulties and obstacles.

Both Government agencies and private sector are confused about choosing, and identifying the kinds of contracts comprising BOT, BTO, BLT, BTL, BOO, O&M, BT being suitable with each field and project. Therefore, the lack of guidance in detail and regulations stipulated in law and legal documents will make agencies and investors confused about PPP contracts.

As for policies for green investment attraction, Deputy Director of the Foreign Investment Agency under the Ministry of Planning and Investment Do Van Su said that Vietnam in general and Ho Chi Minh City in particular had to well prepare to meet the requirements of investors, especially in fields of green economy and circular economy. However, the legal framework related to green and circular economy concerning to energy and emission has not been regulated in detail and policies of the State are insufficient enough to lure investors.

With the proposals of investors and experts, Deputy Chairman of the People’s Committee of Ho Chi Minh City Vo Van Hoan highly appreciated the constructive opinions for HCMC’s growth.

The Resolution No.98 has been formed with special mechanisms for the city’s development in association with investment management, financial and budget management groups and land management to attract strategic investors.

In addition, the city has proactively established an expert team to effectively implement the break-through policies from the Resolution No.98. However, it is important to improve during the implementation process to make investors feel secure doing business in the city.

On the occasion, the city desired to receive more contributions and solutions to help the city effectively attract investment projects in semiconductor technology and green infrastructure which are considered as core factors to help maintain and restore growth momentum for the city in the upcoming time.

Four Singaporean groups receive investment licences in Binh Duong

Binh Duong People's Committee has granted investment certificates to four Singaporean enterprises with the total investment capital of nearly $182 million.

Accordingly, Tetra Pak Binh Duong JSC poured an additional $173 million into its project in the locality. In 2019, Tetra Pak inaugurated the country’s first-ever aseptic carton packaging material factory in Binh Duong, adding Vietnam to its global supply chain map. The facility specialises in producing aseptic cartons for domestic and export markets in ASEAN, Australia, and New Zealand.

The second project is invested by Becamex-VSIP Power Investment and Development JSC with an investment capital of $4.2 million. Under the project, the company will install and distribute solar power to factories across industrial parks in the locality.

R-PAC Vietnam Co., Ltd.'s branch company invests $2.5 million in labels and packaging, with an investment capital of $2.5 million. Meanwhile, Petersson Vietnam Technology Co., Ltd. injects $2 million into communication equipment manufacturing and outsourcing.

Binh Duong is the second-largest foreign direct investment (FDI) recipient in Vietnam. The province has so far attracted more than 4,200 projects from 65 countries and territories, with a total capital of more than $40 billion. Among them, Singapore is the third largest investor in Binh Duong. Singaporean companies have invested in 290 projects with the total investment capital of nearly $5.5 billion.

In 2023, Singapore takes the lead among countries and territories investing in Binh Duong with the total investment capital of more than $450 million, accounting for 27.5 per cent of the total sum.

Kho Ngee Seng Roy, consul general of Singapore in Ho Chi Minh City said, "Binh Duong is one of the most attractive and promising locations in Vietnam for Singaporean investors, thanks to its strategic location in the Southern Key Economic Region. Going forward, Singapore will continue to accompany Vietnam in general and Binh Duong province in particular in innovation and digital transformation, especially developing renewable energy and green industrial parks."

Vo Van Minh, Chairman of Binh Duong People's Committee said, "Binh Duong is making efforts to lure Singaporean investment and cement cooperation with Singaporean partners. Hopefully, Singapore will continue to support the province in promoting cooperation in new fields towards green and sustainable development such as renewable energy, innovation, startups, and high-quality human resources development."

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