Garment production at Maxport Garment Company in Nam Định Province. The garment and textile industry has set the goal of export value at $47-48 billion in 2025. — VNA/VNS Photo Trần Việt

Việt Nam’s garment and textile industry needs to develop a closed-loop supply chain with a focus on obtaining self-sufficiency in raw materials in order to meet the rules of origin under the UK – Việt Nam Free Trade Agreement (UKVFTA) for expanding exports to this market.

The garment and textile sector is doing well in taking advantage of 17 active free trade agreements (FTAs), including new generation trade deals such as the UKVFTA, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU – Việt Nam FTA (EVFTA), according to Vũ Đức Giang, chairman of the Việt Nam Textile and Apparel Association (Vitas).

However, there remains largely untapped potential.

The sector is poised to earn US$44 billion from exports this year, an increase of nearly 11.3 per cent over last year – an impressive result in a world with complicated and unpredictable developments including escalating conflicts, volatile oil prices and transportation costs, and slow global trade recovery, he said. The industry has set a goal of exporting up to $48 billion worth of products in 2025.

Aside from taking advantage of FTAs, Việt Nam’s garment industry has effectively capitalised on the shift in export orders away from countries like China and Bangladesh, coupled with efforts to diversify markets and meet import market requirements, Giang said.

Việt Nam’s garment and textile exports to the UK have seen improvements since the UKVFTA took effect in 2021 and have remained stable in the past few months, at $76.7 million in August, $52.5 million in September and $61.9 million in October, customs statistics showed. The country earned more than $622.8 million from garment and textile exports to the UK in the first 10 months of this year.

Still, Việt Nam holds a modest share in the UK’s imported garment and textile market, which was estimated at more than $20 billion per year.

Under the trade deal, the UK has removed 42.5 per cent of the tariff lines starting in the beginning of 2021 and will eliminate the remaining tariffs in two, four or six years.

Ngô Chung Khanh, deputy director of the Multilateral Trade Policies Department under the Ministry of Industry and Trade, has pointed out five major problems in the garment and textile industry. One is the heavy dependence of imported raw materials, which is hindering the industry from taking further advantage of FTAs.

Another issue is that the industry mainly uses contract manufacturing, coupled with a shortage of capital, a lack of market information and failures in promoting brands for garment products.

The latest updates from the General Department of Customs showed that Việt Nam imported $22.82 billion worth of raw materials for the garment, textile and footwear industries in the first 10 months of this year, representing a strong increase of 44.2 per cent over the same period last year.

Imported materials were mostly fabric worth a total of $12.27 billion, up 14.7 per cent over the same period last year.

Notably, the raw materials were mainly imported from China, accounting for 51 per cent of imports.

According to the Ministry of Industry and Trade, domestic garment and textile producers are forced to import around 70 per cent of raw materials, as domestic supply sources remain limited and are unable to meet the demand in terms of quality.

The heavy dependence on imported raw materials significantly affects the development of the garment and textile industry, especially in meeting rules of origin under FTAs, including the UKVFTA, for sustainable export expansion.

Phạm Xuân Thủy, deputy director of the Tiến Thắng Garment Company in Đà Nẵng Province, said that Vietnamese-made fabric is not only expensive, but also fails to meet the quality requirements of foreign partners. Thus, domestic garment producers rely on imported sources to ensure quality and lower prices.

Fabric production at a company. The UKVFTA’s rules of origin is requiring the establishment of a closed production chain with the focus on ensuring self-sufficiency in raw materials for the garment and textile industry to better exploit the trade deal. — VNA/VNS Photo Phan Tuấn Anh

A report by the Ministry of Industry and Trade stated that the rules of origin under the UKVFTA for garments and textile products require two-stage criteria, meaning that the weaving stage and sewing stage for finished products must be carried out in Việt Nam or the UK.

This means that the fabric used for cutting and sewing must originate from Việt Nam or the UK – a significant challenge for the Vietnamese textile and garment industry, because the industry remains dependent on imported raw materials. To make up for this, Việt Nam can take advantage of the accumulation principle regarding the origin of fabric, meaning the country can use fabric from Korea, Japan, the EU or countries that have FTAs with the UK for cutting and sewing in Việt Nam.

However, in the long term, the UKVFTA’s 'from fabric onwards' rules of origin combined with the CPTPP’s 'from yarn onwards' will require the establishment of a closed production chain, with a focus on ensuring self-sufficiency in raw materials so that the industry can better exploit FTAs, the report said.

According to Khanh, the Ministry of Industry and Trade is enhancing cooperation with relevant ministries, agencies and associations to establish an FTA ecosystem that will create conditions for the garment and textile industry to effectively use FTAs.

“Most importantly, the FTA ecosystem for the garment and textile industry will help connect garment producers with raw material suppliers,” Khanh said.

Deputy Director of Đà Nẵng Department of Industry and Trade Đỗ Thị Quỳnh Trâm said that the FTA ecosystem should be completed early and put into practice with the active participation of enterprises.

In the strategy for development of the garment, textile and footwear industry through 2030, one bold solution is to promote the development of the supporting industry for garment production.

The Ministry of Industry and Trade said that large-scale industrial zones specialising in garment and textile production will be developed, which will facilitate the establishment of a closed-loop supply chain for the industry.

The foundation of a raw material centre for the garment and textile industry should also be accelerated along with measures to ensure its efficient operation, Trương Văn Cẩn, Vitas’ general secretary, said.

To expand exports to the UK sustainably, garment producers also need to enhance production capacity and competitiveness by applying technology, automation, digital transformation and green production to meet market requirements. 

Vietnamese, Algerian businesses seek to expand partnership in construction, labour export

The Hanoi Construction Corporation JSC on December 12 reached a preliminary cooperation agreement with Algeria’s Copresud, with the goal of establishing a joint venture in the construction sector.

The joint venture will participate in bidding for and executing civil engineering projects in this North African country in the near future.

From December 6-12, a delegation of two companies in the construction and labour export sectors - Hanoi Construction Corporation and VINA-MEC HR Joint Stock Company - visited Algeria to meet with local partners and promote future cooperation activities.

This is an initial result of the efforts to strengthen connections and enhance economic cooperation, which have been actively supported by the Vietnamese Embassy and the Vietnam Trade Office in Algeria in recent times.

In Algeria, the companies held working sessions with four construction and three labour export partners.

They also explored the market for green tea, olive oil, dates, chocolate, and confectionery, while engaging with other potential partners in this North African country.

Pham Ngoc Binh, a representative of the organisation responsible for leading the Vietnamese business delegation to explore business cooperation opportunities, evaluated Algeria as a highly promising market with numerous opportunities for Vietnamese companies. In the coming time, this unit will continue to facilitate connections and bring more businesses to explore and develop the market.

Two-way trade between Vietnam and Algeria reached approximately 300 million USD in 2023. Currently, apart from the successful oil joint venture operating and extracting resources at the Bir Seba field, there are hardly any major Vietnamese companies based in Algeria, and vice versa. The establishment of joint ventures is opening a new direction for promoting bilateral economic exchanges, in line with the Algerian government’s foreign investment attraction policy./.

Shrimp exports expected to hit 4 billion USD in 2024

With double-digit growth in key markets, Vietnam's shrimp exports are projected to rake in 4 billion USD in 2024, according to insiders.

While this figure is lower than the record of 4.3 billion USD achieved in 2022, it marks a strong recovery compared to 2023, when shrimp exports totalled only 3.4 billion USD. This recovery highlights the resilience of the shrimp industry as it continues to regain momentum.

Vietnam’s shrimp exports showed impressive growth in the first 11 months of 2024, reaching nearly 3.6 billion USD, a 22% increase compared to the same period last year.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the shrimp sector is performing well in several key markets. Exports to both US and European Union have shown consistent growth, while China’s recent policies to stimulate domestic consumption could further drive demand for Vietnamese shrimp.

Along with an uptrend in shrimp export prices, the processed shrimp sector is growing rapidly, marking a shift towards higher value-added products.

However, experts held that the Vietnamese shrimp industry faces significant challenges that need to be addressed to ensure sustainable growth.

Tran Dinh Luan, Director of the Fisheries Department under the Ministry of Agriculture and Rural Development, stressed that, to compete on the international market, Vietnam must improve shrimp quality and reduce production costs. Key issues include enhancing the quality of shrimplets, managing breeding cycles, controlling diseases, lowering production costs, and accurately forecasting the consumption patterns of importing markets. Addressing these challenges is vital to improving the shrimp value chain and boosting farmers’ incomes.

Meanwhile, diseases on shrimps are considered a threat to the production and quality of shrimp products, he said.

Phan Thanh Lam at the Research Institute for Aquaculture No. 2 noted that upgrading the shrimp industry’s value chain is a significant challenge, noting the industry’s poor linkages between production and consumption, and small scale of the majority of shrimp producers.

Tran Ngoc Hai at the Can Tho University highlighted the importance of adopting high-tech, environmentally friendly shrimp farming practices that are resilient to climate change. The industry must also focus on meeting international standards and linking production across the value chain to better serve market demands.

Despite environmental, disease, and production challenges, Luan highlighted that Vietnamese shrimp businesses have introduced many innovative solutions, such as applying new technologies and improving infrastructure. These efforts are helping to reduce emissions, extend the value chain, and increase both profitability for farmers and businesses, he added./.

Reference exchange rate going up on December 13

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at 24,264 VND/USD on December 13, up 5 VND from the previous day.

With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 25,477 VND/USD and the floor rate 23,051 VND/USD.

At major commercial banks, the opening hour rates also saw increases.

At 8:17 am, Vietcombank and BIDV listed the buying rate at 25,177 VND/USD and the selling rate at 25,477 VND/USD, both up 6 VND from December 12./.

NVIDIA deal – catalyst for Vietnam’s tech growth: investment site

Vietnam’s partnership with US tech giant NVIDIA has reflected the Southeast Asia country’s proactive technology development strategy as well as its significant economic potential, according to Vietnam-briefing.com, an investment site of legal tax and operational advisory provider Dezan Shira & Associate.

According to its recent writing, among the investments in Southeast Asia’s AI and cloud computing infrastructure, the building of NVIDIA’s research and research centre has an important role to play in Vietnam’s economic trajectory, marking a shift from low-tier manufacturing to integration with global innovation networks. The bold step is set to solidify Vietnam’s position in global supply chain and create unique competitive edge for both domestic and foreign firms.

Vietnam has emerged as a prominent play in the region’s AI landscape. According to Statista, a global data and business intelligence platform, the country's AI market is projected to reach 753.4 million USD in 2024, with a compelling compound annual growth rate of 28.36% from 2024 to 2030. This growth rate closely mirrors the regional average of 28.53%, demonstrating Vietnam's capacity to rapidly adapt to global technological transitions, propelled by foreign investment.

The UK-based Oxford Insights’ research on AI readiness showed that Vietnam ranked 39th out of 139 countries, moving up 19 places from the previous year. In Southeast Asia, Vietnam ranks among the top five nations, boasting over 5,000 engineers, 7,000 AI specialists, and some 500 AI-focused startups.

Several factors have contributed to Vietnam's technological ascendancy, with a young and dynamic workforce with competitive labour cost providing a strong foundation. Vietnam ranks third in Southeast Asia for startup investment deals and total venture capital. In recent years, numerous tech unicorns and domestic startups have successfully navigated the AI landscape. Besides, the country's strategic geographical location, proximate to China and India, facilitates connections with key potential markets. Furthermore, the Government's consistent efforts to maintain economic growth and cultivate an innovation-friendly business environment have been instrumental.

The writing highlighted NVIDIA’s strategic investment in Vietnam that marks a transformative shift in the country’s emergence as Southeast Asia’s future AI innovation hub. The establishment of two AI centres, alongside partnerships with key local players like VinBrain and FPT Corporation, demonstrates Vietnam’s growing prominence in the global AI ecosystem. The convergence of Vietnam’s strategic advantages—including its young, skilled workforce, thriving startup ecosystem, location, and supportive government policies—creates an ideal environment for continued technological advancement and foreign investment.

As Vietnam is seeking to transition from low-value manufacturing to high-value, innovation-driven production, these recent developments herald a promising future for both domestic and international stakeholders in the country's AI sector./.

133 enterprises honoured with National Quality Awards 2021-2023

The Prime Minister has endorsed three years of awards recognising exceptional achievements at a national level, in companies and organisations, who collectively are responsible for close to 170,000 workers.

He signed three decisions to grant the National Quality Awards to enterprises recognised in 2021, 2022 and 2023.

In 2021, 61 organisations and businesses received the award, including 19 that achieved the golden prize. In 2022, 49 organisations and businesses were honoured, with 22 earning the golden prize. By 2023, 23 organisations and businesses were awarded, including 11 golden prizes.

To date, 2,163 organisations and enterprises have been recognised with the National Quality Awards.

The award-winning enterprises collectively achieved estimated revenues exceeding 500 trillion VND (19.6 billion USD), profits surpassing 36 trillion VND, and contributed over 32 trillion VND to the State budget, while creating jobs for nearly 170,000 workers.

Vice Chairman of the National Committee for Standards, Metrology and Quality Tran Hau Ngoc said that the National Quality Awards is the only quality-focused honour at the national level.

Annually approved by the Prime Minister, it recognises businesses with exceptional achievements in enhancing product and service quality, competitiveness, operational efficiency and integration into regional and global markets, while contributing positively to society and the community.

In 2021, the Standing Agency of this award nominated two businesses for the Global Performance Excellence Award (GPEA), hosted by the Asia-Pacific Quality Organisation (APQO).

The nominees, including TH Milk Food Joint Stock Company (Nghe An province) and Khanh Hoa Salanganes Nest Soft Drink Joint Stock Company (Khanh Hoa province), secured the highest recognition, the World Class Award, in the large manufacturing enterprise category.

To date, 55 Vietnamese enterprises have earned this prestigious international award.

The award ceremony for the National Quality Awards and the Global Performance Excellence Awards for 2021-2023 will take place on December 18 at the Military Theatre in Hanoi./.

Conference discusses policy orientations of Vietnam’s financial market

The National Financial Supervisory Commission, in collaboration with the Korea International Cooperation Agency (KOICA), organised an international conference themed “Vietnam’s financial market: Perspectives and policy orientations” in the south-central province of Ninh Thuan on December 12.

This is part of the activities under the KOICA-funded Project for Strengthening Financial Sector Early Warning and Contingency Management Capacity in Vietnam.

In his opening remarks, Vu Nhu Thang, Acting Vice Chairman of the National Financial Supervisory Commission emphasised that the conference aims to identify risks, outline opportunities, and establish guidelines to ensure the stable development of the financial market. Key topics include the global economy and its impacts on Vietnam’s economy, and prospects for the financial market in 2025.

This contributes to enhancing the capacity of the commission, to better fulfil its role in providing recommendations to the Prime Minister on the macroeconomy and the financial market, he added.

Jung Jae Woo, Deputy Director of KOICA Vietnam Office, said that Vietnam is emerging as a significant driver of an innovative and stable economy in the region and the world.

Jung highlighted the importance of early detection of financial difficulties in the national economy and response measures, adding that the KOICA-funded project aims to identify crises in a rapidly changing global economy, forecast trends, and prepare countermeasures.

According to experts, despite facing global headwinds, Vietnam's financial market should remain in positive territory this year.

Reforms in the legal framework, the gradual recovery of the real estate sector, and prospects for macroeconomic stability will serve as key drivers, strengthening the market's resilience against global fluctuations, said participants./.

Petrol prices down slightly in latest adjustment

The Ministry of Industry and Trade, and the Ministry of Finance have adjusted down the retail sale prices of petrol products from 3pm on December 12.

Accordingly, the ceiling price of E5RON92 bio-fuel is reduced by 3 VND to 19,861 VND (0.78 USD) per litre, while that of RON95-III is increased by 33 VND to 20,596 VND per litre.

Meanwhile, the price of diesel 0.05S is capped at 18,255 VND per litre, down 127 VND, and that of kerosene at 18,566 VND per litre, down 251 VND. Mazut oil 180CST 3.5S is sold at not more than 15,574 VND per kg, down 551 VND.

The two ministries decided not to use the petrol price stabilisation fund in this adjustment./.

Da Nang to establish 58 hectare industrial cluster

The Da Nang People’s Committee has recently issued a decision to establish the Hoa Lien Industrial Cluster, spanning over 58.53 hectares, based on the technical infrastructure of the auxiliary area supporting the Da Nang Hi-Tech Park project.

The industrial cluster is located in Hoa Lien commune of the central city’s Hoa Vang district. It is bordered by the Da Nang Hi-Tech Park to the north, hills and the Centralised Information Technology Park to the south, the Nam Hai Van Bypass and the Centralised Information Technology Park to the east, and hills and the Da Nang Hi-Tech Park to the west.

The project has a total investment of over 235.11 billion VND (9.25 million USD) funded by the city's budget, with the Da Nang Hi-Tech Park and Industrial Zones Authority serving as the investor.

It will attract industries, including automobile manufacturing and assembly projects, along with related support services, mechanical engineering and the production of auto parts and precision mechanics, as well as clean, environmentally friendly supporting industries.

Once completed, the project will be handed over to the Da Nang Centre for Industry and Trade Promotion under the municipal Department of Industry and Trade for management and operation. The transition, establishment and operation of the Hoa Lien Industrial Cluster are expected to take place between 2024 and 2027.

According to the municipal People's Committee, the establishment of this industrial cluster aims to provide land with technical infrastructure and services to attract industrial investment, especially in high-tech supporting industries, automotive manufacturing and assembly, and other supporting industries. This initiative is expected to create jobs and contribute to the overall development of Da Nang./.

MoIT sets export growth at 6% in 2025

The Ministry of Industry and Trade (MoIT) has set a target of 6% export growth in 2025 as global inflation has cooled down and international market demand recovers.

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.

The ministry added that the country's macroeconomic data on GDP growth, the industrial production index, the purchasing managers index and export orders in recent months have also shown a positive export outlook.

At the same time, the business community has focused on fostering their exports to markets where they can enjoy the advantage brought by new-generation free trade agreements (FTAs).

However, export activities will face a number of challenges in 2025, if the world's geopolitical developments continue to be unpredictable, the ministry has warned.

Developed countries are more concerned with sustainable development issues and consumer safety, creating new standards and regulations related to supply chains, raw materials, labour and the environment, rules that are more stringent for imported products.

In addition, if the new policies of US President-elect Donald Trump come into effect, it is forecast to lead to far-reaching impacts on the world economy, including Vietnam's.

To achieve the set target, the ministry will continue to monitor and provide timely information to industry associations and businesses about developments in export markets so that they can promptly adjust production plans and search for market orders as well as host regular trade promotion conferences with Vietnamese trade offices abroad.

According to the MoIT, it will direct Vietnamese trade offices abroad to regularly update information on market situations, regulations and standards that may affect import and export activities and recommendations to businesses and industry associations.

Meanwhile, it will continue to promote advantages and incentives from FTAs to businesses to help them make good use of opportunities brought by the agreements.

The ministry said that accelerating trade promotion activities, speeding up exports through border gates and facilitating exports to the Chinese market will also be a focus.

Over the past 11 months of this year, Vietnam's export value expanded by 14.4% to 369.9 billion USD, according to the General Statistics Office (GSO).

The domestic economic sector contributed 103.9 billion USD to the total export value, an increase of 20% year-on-year, while the foreign-invested sector (including crude oil) generated 266 billion USD, up 12.4%.

Up to 36 key export items each surpassed 1 billion USD in value, collectively accounting for 94.1% of the total. Among these, seven standout products exceeded 10 billion USD.

During this period, the US remained Vietnam's largest export market with 108.9 billion USD.

To further increase the export value of Vietnamese goods, the GSO has proposed that ministries and branches effectively implement product traceability and improve the competitiveness of made-in-Vietnam products in terms of prices and quality in the global market, especially for key exports.

It has also suggested the MoIT take full advantage of the signed FTAs to promote exports and innovate trade promotion activities, focusing on a digital transformation programme for trade promotion activities connecting domestic and foreign supply and demand./.

1.2-billion-USD MoU signed to build VinFast charging stations in Indonesia

V-GREEN, a private firm owned by billionaire Pham Nhat Vuong, and Prime Group, a multi-sector conglomerate, on December 11 announced a memorandum of understanding (MoU) to develop a network of charging stations for VinFast electric vehicles (EVs) in Indonesia, with a projected total investment of up to 1.2 billion USD.

This MoU not only marks a major step forward for V-GREEN in its global mission to expand the VinFast EV charging infrastructure, but also underscores the confidence of prominent international companies in V-GREEN and VinFast’s commitment to sustainable transportation.

It also reflects the mutual intent of both parties to engage in detailed discussions to explore and develop cooperation in building charging stations in Indonesia. The two companies envision the development of approximately 100,000 VinFast charging stations in the country over the next three years.

V-GREEN will initially prioritise the development of charging stations in Jakarta, Surabaya, Bali, and surrounding areas, with plans to expand to other regions of Indonesia in subsequent phases. The installation of the charging stations will commence in January 2025, with some expected to be operational within the year.

Tamer Wagih Salem, Chairman of Prime Group, said that this collaboration, fueled by V-GREEN’s strong reputation and execution capabilities, will not only benefit both companies but also significantly contribute to the growth of Southeast Asia’s EV market.

V-GREEN was founded by Vuong, founder of EV maker VinFast, with a 90% stake. Separated from VinFast’s charging station development department, V-GREEN is dedicated to investing in the entire electric vehicle infrastructure. This aligns with the company’s mission to foster a green ecosystem and accelerate the electric transportation revolution.

The MoU with Prime Group marks a pivotal moment for V-GREEN as a key partner in VinFast’s global expansion. By developing a robust charging infrastructure, V-GREEN is paving the way for the Vietnamese EV maker to successfully enter the dynamic Indonesian market./.

Workshop promotes partnership toward green growth, women’s economic empowerment

The Vietnam Women Entrepreneurs Council (VWEC) under the Vietnam Chamber of Commerce and Industry (VCCI) and the United Nations Environment Programme (UNEP) held a workshop on advancing partnership toward green growth and women's economic empowerment on December 11 in Hanoi.

The event attracted nearly 100 participants from ministries, agencies, business associations and enterprises in Hanoi and neighbouring localities.

Speaking at the event, VWEC Vice President Mai Thi Dieu Huyen said that the workshop aims to provide opportunities to increase connections and cooperation between women-led businesses and leaders of tech companies, banks and financial institutions with green finance programmes and those for women-led enterprises.

Dr. Nguyen Minh Thao, head of Business Environment and Competitiveness Department of the Central Institute for Economic Management (CIEM), said that there will be seven groups of Vietnamese exports expected to be affected by the European Green Deal, approved in 2020. It is a set of policy initiatives by the European Commission with the overarching aim of making the European Union (EU) climate neutral in 2050.

They include electricity, electronics, information technology, machinery, equipment, and components; agricultural and aquatic products, wood and wood products; all kinds of food, especially organic food; textiles and footwear; fertilizers, batteries and accumulators; steel, aluminum and cement; and food packaging and chemicals.

Thao said the deal will push and encourage companies and manufacturers to use clean technologies, expand markets and enhance the ability to integrate clean technologies. However, it poses challenges such as higher requirements on green production, supply management, technological transformation, labour skills, and accountability capacity.

Thao recommended that the Government and State agencies need to provide and update information promptly and issue implementation instructions for localities and enterprises. In addition, they need to coordinate, negotiate, and dialogue with trading partners to discuss implementation methods.

It is also necessary to complete the policy framework on decarbonisation such as phasing out coal power, promoting renewable energy, and energy saving; developing regulations on carbon pricing; completing the legal basis for green taxonomy; and developing a green financial system, she said, adding policies to support businesses in implementing green production is also needed./.

Over 300 companies participate in ASEAN Ceramics & Stone 2024 fair

The ASEAN Ceramics & Stone 2024 exhibition, showcasing machinery, equipment, and materials for the ceramics and stone industries, opened in Ho Chi Minh City on December 11.

Organised by the Vietnam Ceramic Association and partners, the event attracts over 300 companies from countries including Italy, Germany, China, India, Thailand, and Vietnam.

Themed "Sustainability and Diversity through Innovation and Collaboration," the exhibition highlights advanced technologies designed to improve productivity, quality, and sustainability in the ceramics and stone sectors.

Speaking at the opening, Deputy Minister of Construction Nguyen Van Sinh emphasised that the exhibition supports the government's policies for trade promotion, technology transfer, and investment cooperation.

He noted the significant growth of Vietnam’s ceramic industry over the past 20 years, with the country now one of the world’s top 10 producers of construction ceramics, exporting to markets across ASEAN, Northeast Asia, the US, and Europe.

The exhibition brings opportunities for domestic companies to explore new technologies to address challenges in energy, raw materials, labour, and environmental impact. Many companies are focused on enhancing efficiency, reducing material consumption, and implementing green and sustainable practices.

The event includes workshops discussing industry trends and pressing issues, such as "Climate Change and Zero Emissions" and "Resilience in the Ceramics Industry," aimed at fostering creativity and sustainable growth in ceramics and stone production.

The exhibition will run until December 13, 2024./.

Indian scholar impressed with Vietnam’s development achievements

Vietnam has made remarkable strides across areas, not only in trade growth and investment attraction but also in the increase of per capita income, an Indian scholar has said.

Prof. Reena Marwah from the University of Delhi, who is also Secretary-General of the Association of Asia Scholars (AAS), told the Vietnam News Agency that the social progress in Vietnam is highly commendable as in less than 40 years of implementing its Doi Moi (renewal) process since 1986, Vietnam has achieved remarkable accomplishments.

The increase in Vietnam's per capita income from around 200 USD to over 4,000 USD by 2024 demonstrates breakthrough growth, he said.

According to the scholar, Vietnam has a strong and resilient economy which has never experienced any major financial crises. It has emerged as a key location for large industries and multinational corporations. This is why foreign direct investment (FDI) in the country reached 27.26 billion USD as of October 31 this year, and it has continuously stayed among the fastest-growing economies in the world.

Recently, Vietnam has been recognised by the International Monetary Fund (IMF), the World Bank (WB), and the Lowy Institute as one of the countries with an outstanding economy that has overcome numerous shocks and demonstrated excellent resilience after the COVID-19 pandemic.

Marwah highlighted several reasons why Vietnam has maintained high growth rates, including the signing of many free trade agreements (FTA) and the establishment of comprehensive strategic partnerships with many nations, along with its prominent economic transition process.

Vietnam has also joined the Regional Comprehensive Economic Partnership (RCEP), he said, adding that the Southeast Asian nation’s economy has performed well in 2024 and is expected to maintain strong growth next year.

Marwah also predicts that in 2025, Vietnam will face certain challenges related to the trade imbalance with the US; the lifting of the European Commission's "yellow card" warning for Vietnamese seafood over illegal, unreported, and unregulated (IUU) fishing; energy security; and the improvement of the workforce's skills.

Vietnam needs to further develop its own industries and, as a result, requires more skilled labourers, he suggested, adding that the country also should pay heed to improving the quality of its agricultural products and developing sustainable agriculture as it still relies heavily on agricultural export.

Regarding foreign relations, the Indian scholar emphasised that Vietnam has established comprehensive strategic partnerships with not only Russia, the US, China, and India but also many others.

In recent years, it has continuously hosted many top world leaders, including Russian President Vladimir Putin, US President Joe Biden, and Chinese President Xi Jinping. This once again spotlights the increasingly important role of Vietnam in the international arena, according to Marwah./.

Khanh Hoa connects with Chinese firms to unlock new opportunities

The south central coastal province of Khanh Hoa hosted an event connecting local and Chinese enterprises on December 11.

Co-hosted by the provincial authorities and the Chinese Consulate General in Ho Chi Minh City, the gathering aimed to facilitate information exchange and unlock new cooperation opportunities in tourism, trade, agro-forestry and seafood.

In his opening speech, Standing Vice Chairman of provincial People’s Committee Le Huu Hoang highlighted Khanh Hoa's strategic position in Vietnam's socio-economic landscape. He informed that the province aims to become a centrally-run city by 2030; a smart, sustainable, and internationally connected urban area that serves as a global hub for marine services and tourism.

 
According to him, Khanh Hoa expects to welcome 10.6 million tourists this year, including over 4.5 million foreigners, a 1.9-fold increase from the previous year. China remains a key market, with an estimated 750,000 arrivals, making it the second largest source of foreign arrivals in the province.

Beyond tourism, Khanh Hoa's strengths in seafood processing, agricultural exports, and industrial production present promising avenues for collaboration between local enterprises and their Chinese counterparts.

Vietnamese Deputy Minister of Foreign Affairs Pham Thanh Binh noted that Vietnam is China’s largest trade partner in ASEAN and the fifth largest globally. In the first 10 months of this year, two-way trade reached 168.5 billion USD, marking a 21.1% increase. Of this, Vietnam's exports to China reached 50.8 billion USD, up 2.1%, while imports surged to 117.7 billion USD, up 31.6%.

Chinese Consul General in Ho Chi Minh City Wei Huaxiang said nearly 100 Chinese businesses are visiting Khanh Hoa, representing various sectors including finance, machinery manufacturing, infrastructure, tourism, environmental protection, legal consultancy, agricultural and seafood processing. This visit presents a valuable opportunity to deepen cooperation for mutual benefit.

Participants engaged in discussions on tourism, agriculture, seafood, and trade - export and import, pledging to increase information sharing, connect industries, and promote further exchanges.

On the occasion, a field trip was also arranged for Chinese firms to several local production facilities./.

Hyundai auto sales in Vietnam surge nearly 35%

The Thanh Cong (TC) Group, the assembler and distributor of Hyundai vehicles in Vietnam, has reported a remarkable increase of 34.9% in auto sales in November, with total 10,303 units delivered across its lineup.

Hyundai Accent model led the charge with 2,052 vehicles sold and representing a significant 44% month-on-month growth. This performance has elevated the model's cumulative sales for 2024 to 11,677 units.

The sales of Hyundai Tucson were 1,584 units, tripling the figures recorded in October. Hyundai Creta secured the third position with 1,330 vehicles sold, representing an 8.3% increase and bringing its year-to-date sales to 7,739 units.

Other models in the Hyundai portfolio also exhibited robust performance. As many as 1,206 new Santa Fe vehicles were sold, up 19.8%, while Grand i10 achieved 1,035 sales, marking a significant increase of 40.8%.

Remarkable growth was seen in the sales of commercial vehicles, with 1,079 vehicles sold or a 24.7% increase. Hyundai Mighty LT 2.5-ton truck and Hyundai Solati reached out to the international market, contributing to strengthening the brand's position.

Boasting such impressive sales in November, TC Group affirmed its effective business strategy as well as the ability to meet market demand of Hyundai models.

The company plans to continue implementing attractive sales policies and improving service quality to provide optimal value for its customers./.

VinFast sets new record with over 16,000 EVs delivered in November

VinFast automaker, a subsidiary of Vingroup, announced on December 11 that it delivered over 16,000 electric vehicles (EVs) in November, bringing its total sales for the year to more than 67,000 units in the domestic market.

This marks the highest monthly delivery for a car brand in Vietnam so far.

Having secured the largest market share in Vietnam’s automotive industry for the first 10 months of 2024, VinFast continued its impressive growth in November, achieving a 40% month-on-month increase in delivery. On average, more than 530 VinFast EVs were delivered daily across the country in November.

With over 67,000 units delivered year-to-date, VinFast firmly holds its position as Vietnam’s market leader. With a large order backlog and stable growth plans, the company is confident it will meet its global delivery target for 2024.

Duong Thi Thu Trang, VinFast's Global Sales Director, said that the record sales reflect a growing trend towards green transformation, with an increasing number of people embracing environmentally-friendly transportation. This also reinforces the trust and strong customer preference for the brand. The company expressed its gratitude for the warm reception from consumers and affirmed its commitment to continue striving to meet the rising demands and expectations of the market.

Besides, VinFast has expanded its service network. The company now operates 120 service centres nationwide, making it one of Vietnam’s leading automotive service providers.

To meet the growing demand both domestically and internationally, VinFast recently launched its second EV manufacturing plant in Vung Ang Economic Zone in Ha Tinh. Phase 1 of the plant, set to open in July 2025, will have an annual production capacity of 300,000 vehicles, focusing on models VF3 and VF5./.

Business matching and food products week kicks off in HCM City

The Business Matching and Ho Chi Minh City Products Week 2024 – Food and Beverages kicked off on December 11, offering a platform for enterprises to showcase their products to export partners, sourcing companies, and both domestic and international consumers.

Co-organised by the Investment and Trade Promotion Centre of HCM City (ITPC) and the Food and Foodstuff Association of HCM City (FFA), the event has attracted nearly 100 enterprises across various sectors, including consumer goods, dried foods, seafood, confectionery, beverages, and processed agricultural products.

FFA President Ly Kim Chi highlighted the strides made by food industry enterprises in improving product quality, adopting advanced technologies, and prioritising sustainable production. These efforts aim to meet domestic demand and expand into major international markets, such as the EU, the US, and Japan.

Chi noted that while 2024 presents challenges for the food industry in the global market, it also brings significant opportunities. Emerging consumer trends - such as green food, alternative products, and strict traceability standards - are paving a promising development path for Vietnam’s food industry.

In his remarks, ITPC Director Tran Phu Lu emphasised the crucial role of the food industry in the city’s economic growth, contributing approximately 14–15% of its total industrial production.

Running from December 11 to 17, the event features not only product displays but also thematic workshops and business matching sessions. These activities aim to facilitate direct connections between businesses and distributors or partners from both local and international markets.

This event is an excellent opportunity for local producers to showcase high-quality, aesthetically appealing, and competitively priced Vietnamese products that meet export and food safety standards, thereby underscoring the capability of Vietnamese enterprises to respond to the increasingly demanding global market, Lu said./.

Russia’s autonomous area wants to boost IT cooperation with Vietnam

Pavel Tsiporin, Deputy Governor of Russia’s Khanty-Mansiysk Autonomous Area – Ugra, has expressed his hope for cooperation with ASEAN member states, including Vietnam, in information technology (IT).

Tsiporin, who is also Director of Ugra’s Department of Information Technology and Digital Development, told foreign reporters at the Ugra Research Institute of Information Technologies on December 11 that Ugra has always been among the top 5 okrugs (regions) in Russia in terms of IT. Since 2008, the annual International IT Forum held in Khanty-Mansiysk has confirmed this okrug as one of the most prestigious global technology hubs.

In response to a question from a Vietnam News Agency correspondent regarding the potential for the okrug’s cooperation in digital technology with ASEAN member countries, including Vietnam, Tsiporin affirmed that Ugra has made significant strides in AI and innovative models, and it is ready to offer these developments to Asian countries, particularly Vietnam.

He added that Ugra is also prepared to adapt these technologies to meet the language and practical requirements of Vietnam.

According to the official, the four key areas in which Ugra has significant potential for cooperation with Vietnam include AI, innovative models, information security, and IT engineer training.

In addition, Ugra has an online platform for these courses and is ready to modify them to suit the needs of Vietnamese learners, he affirmed./.

Japanese expert optimistic about Vietnam’s industrial development prospect

Funabashi Gaku, a senior advisor at the Japan International Cooperation Agency (JICA), has made an encouraging assessment about Vietnam’s industrial development prospect and insights into the country’s economic transformation.

Giving presentations at the Ho Chi Minh National Academy of Politics and the Diplomatic Academy of Vietnam on December 9-10, Assoc. Prof. Funabashi from the International University of Japan (IUJ), laid stress on the significance of shifting from the country’s current economic model, characterised by cheap labour force, technology transfer and FDI-relied industry, to an innovation-driven strategy that capitalises on domestic resources.

With a view to avoiding the “middle-income trap” and realising its goal of becoming a developed nation with high income by 2045, it is a must for Vietnam to improve labour productivity and create added value, he stated.

Notably, Funabashi expressed optimism about the country’s industrial development prospect, highlighting observation from his university where Japanese companies show keen interest in understanding Vietnam's industrial landscape and prefer engagement with Vietnamese students to those from other developing nations. He said this trend has been mirrored not only in Japan but also in many other countries and across Europe.

The professor lauded Vietnam’s development path based on intrinsic strength and international integration, saying as excessive reliance on FDI could hinder the country’s upgrade of its status from a middle-income to a high-income nation, Vietnamese firms should strive to develop their own technologies, identify target markets, and focus on building their systems anchored by core industries and innovation.

Taking the semiconductor sector in which the Vietnamese Government plans to train 50,000 engineers by 2030, the Japanese expert highlighted development process of enterprises from Japan, the Republic of Korea and Taiwan (China). He held that technological advancements could begin with imitation, followed by continuous research, development and investment, underscoring the necessity to build strategies on existing resources and strengths as well as support from competent governmental agencies.

With insights into Japanese management practices, drawing from the automotive industry, he underscored the importance of information gathering, multi-stakeholder feedback, technology testing, and information sharing across production, research, and marketing domains, saying they have helped businesses take stock on tangible and intangible resources and combing them with others to make contributions to the development of the industrial sector.

Regarding technology transfer, he said Vietnamese companies should see it as initial steps, followed by private enterprises driving innovation to reach a higher position.

Funabashi acknowledged the support that the Vietnamese ministries and local administrations have provided for small-scale private companies. While these businesses may not currently represent the national industrial core, he sees them as potential future contributors to Vietnam's economic development. He said JICA could join hands with the Vietnamese authorities to improve the capability of small firms.

Funabashi’s working trip to Vietnam is part of the “JICA Chair” programme which has been carried out since 2020 to share Japan’s modernisation success stories as well as promote cooperation with developing countries./.

Vietnam among pioneers in responsible technology development: Singaporean site

In an era where Artificial Intelligence (AI) is advancing at a rapid pace, Vietnam is taking steps to ensure that its AI development is ethical and socially responsible, according to an article recently published on Singaporean site opengovasia.com.

The article said the Vietnam Software and IT Services Association (VINASA) has unveiled the formation of the AI Ethics Committee. The move places Vietnam firmly on the map of nations taking proactive measures to ensure that AI responsibly benefits society.

This committee’s primary mission is to guide the nation’s AI journey, ensuring that it not only adheres to ethical principles but also fosters innovation and aligns with societal values.

The AI Ethics Committee will play a crucial role in shaping Vietnam’s AI policies, developing risk assessment standards, and advising the government on AI-related matters.

It will also act as a bridge for international cooperation in AI, ensuring that the country stays aligned with global efforts to create ethical frameworks for the emerging technology.

Professor Yoshua Bengio, who is the founder of the AI research institute Mila in Canada, expressed his support for the initiative, noting that the establishment of the committee was a significant step towards ensuring that Vietnam’s AI future adheres to global standards of transparency, accountability, and societal benefit.

He praised the country’s effort to take an ethical approach to AI development, which he believes is essential for fostering public trust and confidence in the technology.

With AI increasingly playing a central role in shaping the future, Vietnam’s AI Ethics Committee marks a critical step in ensuring that the country’s AI development is both innovative and ethically sound. As the global landscape continues to evolve, Vietnam’s approach to AI ethics may serve as a model for other nations looking to navigate the complexities of this transformative technology, the Singaporean site said./.

Plastics demand growing, says industry association

The plastics industry has enjoyed impressive growth this year, driven by steady demand from the construction, packaging and consumer industries, according to the Vietnam Plastics Association.

Its output is forecast to reach 11.65 million tonnes this year and 16.36 million tonnes by 2029, an annual growth rate of 8.44%.

Its sales this year will be worth an estimated 31.1 billion USD, an increase of 23.9% from last year.

Exports will grow by 26.7% to 6.57 billion USD.

Shipments to the US, the country’s largest market, and other major ones such as Japan, China, the Republic of Korea, Europe, Thailand, and India have grown strongly.

Vietnamese plastic products are sold to more than 170 markets globally.

The country’s more than 4,000 plastic producers include 90% small and medium-sized enterprises that employ more than 250,000 workers.

Rapid urbanisation in many countries, including Vietnam, has led to a steady growth in the demand for construction plastics, Dinh Duc Thang, president of the association, said.

The rising number of people joining the middle class globally and the boom in e-commerce have driven demand for household appliances and packaging, he told a meeting of member enterprises in Ho Chi Minh City last week.

Besides, Vietnam has become one of the world’s major manufacturing hubs, with many factories being newly built or moving from other countries, which also drives the plastics market, he said.

“Over the past decade, the plastics industry has maintained stable growth and become one of the key industries, contributing significantly to the country’s economic growth.

“But [it] is also facing a number of challenges, particularly pollution that has become a global problem.”

Demand for carbon reduction, recycling and the reduction of single-use plastics require businesses to adopt technological innovation, increasing production costs.

Dependence on imported raw materials is also a major concern, making businesses vulnerable to fluctuations in international markets.

The transition to a circular economy and sustainable production standards is a great opportunity for the Vietnamese plastics industry, especially in the production of environmentally friendly and recycled products, to meet the requirements of markets such as the EU, US and Japan.

Free trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP) not only expand export opportunities but also create conditions to improve production standards and develop high value-added products.

EPR (Extended Producer Responsibility) regulations and policies prioritising investment in recycling and technological innovation have created favourable conditions for the industry to turn green, he added.

Can Van Luc, chief economist at State-owned lender BIDV and a member of the National Financial and Monetary Policy Advisory Council, said per capita plastic consumption in Vietnam is still much lower than in other countries, and so the industry has plenty of room to grow.

He said the packaging industry is growing and demand for plastic in many other fields is also increasing, especially in construction and infrastructure development.

The demand from the food, medical and electronics industries is huge and increasing, he added./.

HCM City hosts showcase of craft villages and regional specialties

An event showcasing the quintessence of craft villages and regional specialties 2024 is underway in Ho Chi Minh City from December 12-15.

The annual event, held by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) in collaboration with various departments and agencies, aims to connect local businesses, cooperatives with major distribution networks.

This year's event sees the presence of over 30 cities and provinces, more than 200 outstanding businesses with over 500 traditional craft village products, key regional specialties, and notable One Commune, One Product (OCOP) items.

Visitors can immerse themselves in vibrant cultural spaces, such as the mesmerising gong performances from the Central Highlands and demonstrations of the intricate traditional brocade weaving by ethnic minorities from the northern mountainous regions. The event offers more than just shopping, it provides an enriching experience where visitors can explore the history and fascinating stories behind products from renowned traditional craft villages across the country.

Vo Thanh Son, Director of Ben Tre's Tourism Promotion Centre said transitioning from agricultural production to an agricultural economy and developing craft villages in rural areas is a solution to raise the income of local residents.

Events like this, which combine trade in crafts and OCOP products, provide a crucial platform for connecting with customers and distributors, gradually establishing a wide-reaching consumption network, he said./.

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