Customs office at the Hữu Nghị border gate in Lạng Sơn Province. — VNA/VNS Photo

Enterprises propose the Ministry of Finance consider extending the duration of application of the preferential tax, fee and charge policies until the end of 2024.

Phạm Tấn Công, chairman of the Việt Nam Chamber of Commerce and Industry (VCCI), expressed this opinion at a conference on tax and customs policies and administrative procedures in 2023 held by the Ministry of Finance and VCCI in Hà Nội on Wednesday.

Besides that, the enterprises also had a number of other proposals on reviewing and ensuring fairness in the application of tax policies for businesses of all economic sectors, and regular inspections in different forms causing difficulties for businesses.

They also asked the Government to consider supportive measures in solving new tax refund procedures and connection mechanisms between the tax - customs sector and other administrative agencies, and to strengthen non-tariff measures.

Also at the conference, Công highly appreciated the determination and reform efforts of the Ministry of Finance as well as the taxation and customs sectors in accompanying and supporting enterprises to maintain and restore production and business activities during the difficult economic situation.

They have promoted the simplification of administrative procedures and effective control of processes, helping enterprises reduce costs and fulfil their tax obligations, he said.

However, according to the VCCI leader, regarding tax, many enterprises have still reported many problems with value-added tax refund procedures, electronic invoices, and local tax payment regulations.

For the customs field, many enterprises have mentioned problems about the time it takes to process electronic procedures, the issuance of import licences for precursor chemicals, the refund of import and export taxes, and the value-added tax refund mechanism for processing and export enterprises. They also have proposals to shorten the import tax refund time, Công said.

Nguyễn Thị Cúc, chairwoman of the Việt Nam Tax Consultants Association, said that the implementation of electronic invoices and declaration via a portal are the two most prominent points of tax and customs reform.

But these two changes still have many problems. They include problems of determining the responsibility of enterprises when buying input invoices and issuing invoices by retail firms.

Deputy Minister of Finance Cao Anh Tuấn said that in the coming time, besides positive and favourable factors, it is forecasted that there will still be many difficulties and challenges from the world economy, affecting the recovery and development of the domestic economy.

Therefore, the Ministry of Finance (MoF) will continue to closely monitor the actual situation, and then it will propose appropriate solutions to reduce fees and charges, and consider reducing environmental protection taxes on gasoline.

Along with that, under the Tax System Reform Strategy until 2030, the ministry continues to study and advise on the assessment, review, amendment and supplementation for the Law on Tax to complete the tax policy system in accordance with international practice.

Đặng Ngọc Minh, deputy head of MoF's General Department of Taxation, said his department will continue to implement many measures to speed up and reform tax refund procedures, creating convenience for people and businesses.

Hoàng Việt Cường, deputy head of MoF's General Department of Customs, said to facilitate the commercial activities of enterprises, from the beginning of 2023, his department has submitted proposals to the Ministry of Finance and relevant agencies to promulgate regulations to perfect customs institutions.

In addition, customs authorities continue to effectively deploy the automatic customs management system at ports, warehouses and yards. That contributes to simplifying procedures, reducing contact between customs authorities and enterprises, cutting travel time, and overcoming congestion at port gates, warehouses and yards.

According to MoF Deputy Minister Tuấn, in the context of unfavourable developments in the world market affecting all fields in Việt Nam, the ministry has proposed solutions on extension, exemption, and reduction of taxes, fees, charges, and land rent, worth about VNĐ196 trillion in 2023, to support businesses and people.

In addition, the finance ministry, including the tax and customs sectors, has continued the implementation of many solutions on reforming administrative procedures and modernising the tax and customs sectors to create favourable conditions for businesses.

Therefore, Tuấn said, as of December 12, total State budget revenue reached about VNĐ1.6 trillion, equal to 97.65 per cent of the budget estimate.

LNG to play a key part in VN's energy transition

The development and introduction of liquefied natural gas (LNG) power could help increase energy efficiency, reduce dependence on coal-fired power plants, lower emissions, protect the environment and bring Việt Nam closer to its sustainable development goals, a forum held in Hà Nội was told on Thursday.

Tạ Đình Thi, deputy head of the National Assembly's Science and Technology Committee, said international practices have demonstrated LNG as a great transition power for countries looking to switch to greener and more environmentally friendly energy.

"Our priorities should be on investing in technical infrastructure to support the import and consumption of LNG, the rapid development of gas-fired power plants using LNG," he said.

He said LNG power could play an important role in the Southeast Asian country's commitment to bringing down its emissions after the Paris Climate Conference (COP21).

Dr Nguyễn Minh Phong said there are numerous advantages in developing gas-fired electricity in Việt Nam with the development of gas-fired power plants using both natural gas and LNG, a key component, in the country's efforts to ensure power supply and promote energy transition.

In light of the significant challenges faced by Việt Nam in meeting electricity demand and energy security by 2030, he said there is a need for rapid scale-up while transforming the structure to approach the goals of carbon neutrality and balanced development across regions, sources, and transmission capacity.

Of these, developing Việt Nam's power sources has been said to be a challenging task as the country's hydroelectricity has reached its limit while commitments to international agreements likely severely handicap the proliferation of coal-fired power after 2030. Other power sources such as biomass power, nuclear, hydro and ammonia gas all face problems in capacity and commercialisation.

"The development of LNG-fired power plants will help the power industry become greener and reduce dependence on coal-fired power plants, which currently account for a considerable proportion of the existing supply," Phong said.

However, industry experts and insiders said some issues must be addressed to unlock the full potential for LNG development in Việt Nam.

Firstly, to develop gas electricity, the country needs to improve its current legal framework, especially regulations and standards regarding technology, trade and finance as a basis for investment which will allow the construction of modern ports at strategic locations capable of receiving large LNG ships.

Secondly, policies to govern the LNG industry must be comprehensive and consistent to cover the operational and logistical aspects of the industry and electricity pricing.

Asst Prof and financial expert Đinh Trọng Thịnh advised the Government to establish a plan to mobilise resources and develop the domestic LNG market, in line with the recently announced Power Plan VIII.

He called for greater cooperation from provincial and municipal authorities in creating a more favourable business environment for investors, and faster support in resolving difficulties in land clearance and other administrative procedures, which have been major causes behind many delays in the implementation of LNG projects.

Given the nature of LNG projects, which typically require billions of dollars in investment, Thịnh said there should be a detailed and comprehensive legal framework and management mechanisms.

Funds of Dragon Capital acquire more shares of Hà Đô Group

Two member funds of Dragon Capital have recently acquired an additional 270,000 shares of realty company Hà Đô Group Joint Stock Company (HDG), increasing their ownership from 12.94 per cent to 13.03 per cent.

Specifically, Norges Bank Fund purchased 220,000 shares, while KB Việt Nam Focus Balanced Fund bought 50,000 shares. This transaction resulted in an ownership ratio increase of 3.32 per cent and 0.1 per cent, respectively. The transaction took place on December 7, 2023.

At the corresponding closing price of VNĐ29,000 per share, the acquired shares are valued at approximately VNĐ8 billion.

It is worth noting that this is the second time in 2023 that the Dragon Capital fund group has increased its ownership in Hà Đô Group. Previously, on June 29, CTBC Việt Nam Equity Fund also purchased an additional 200,000 HDG shares.

Hà Đô Group's business performance appears challenging as it experienced a decline in the third quarter.

In Q3 2023, the company recorded revenue of VNĐ459.56 billion, a decrease of 45.1 per cent compared to the same period last year. Profit after tax stood at VNĐ99.55 billion, down 67.9 per cent. The gross profit margin also declined from 60.5 per cent to 53.3 per cent.

Despite cost reductions in financial, sales, and corporate management areas, the sharp decline in gross profit contributed to the significant decrease in profit after tax during the period.

For the first nine months of 2023, Hà Đô Group's accumulated revenue reached VNĐ2 trillion, a decrease of 19 per cent compared to the same period last year. Profit after tax amounted to VNĐ533.32 billion, down 48.7 per cent.

As of September 30, 2023, the company's total assets had decreased by 3.8 per cent, equivalent to a decrease of VNĐ576.1 billion, reaching VNĐ14.5 trillion compared to the beginning of the year. 

SCIC to auction all 3.15 million shares at Vinacontrol Group

The State Capital Investment Corporation (SCIC) has recently announced an auction of its entire 3.15 million shares at Vinacontrol Group, with a starting price of VNĐ171.6 billion, equivalent to about VNĐ54,500 per share.

The starting price is approximately 9 per cent higher than VNC's current market price.

Apart from SCIC, Vinacontrol has two other major shareholders: ASEAN Securities Joint Stock Company and DOHA Investment Company Limited. These companies hold more than 1.2 million units and more than 1.9 million units of shares, respectively, representing ownership ratios of 11.95 per cent and 18.67 per cent. The Chairman of the Board of Directors of Vinacontrol, Bùi Duy Chinh, currently holds a 4.03 per cent ownership stake.

The Prime Minister recently approved the development strategy until 2030 of the State Capital Investment Corporation (SCIC). This strategy aims for SCIC to achieve an average annual revenue of VNĐ9.5 trillion, a profit after tax of VNĐ6.7 trillion, a State budget contribution of VNĐ5.4 trillion, and investment disbursement of VNĐ36.3 trillion. The investment capital will primarily focus on high technology, digital economy, energy, key infrastructure projects, smart cities, modern healthcare, pharmaceuticals, and banking and finance.

After 2030, SCIC will operate as a professional financial investment organisation, serving as an investment channel of the Government. SCIC will also mobilise capital in the international financial market through consulting, promotion activities, attracting investors, investment funds, and financial institutions worldwide, either directly or by establishing specialised investment funds to invest in key project areas, particularly Việt Nam's infrastructure.

Established in 1957 as the Department of Import and Export Goods Inspection under the Ministry of Trade (now the Ministry of Industry and Trade), Vinacontrol's main business involves inspection, testing, certification, and quality assessment.

Vinacontrol Group has business locations in prominent areas of Hà Nội, including its headquarters at 54 Trần Nhân Tông Street; Vinacontrol Hà Nội branch at 96 Yết Kiêu Street; and Vinacontrol Certification and Inspection Joint Stock Company headquarters at 41 Nguyễn Thượng Hiền Street. It also has branches in other major cities such as Hải Phòng, Quảng Ninh, Đà Nẵng, and HCM City, along with level 2 branches and representative offices in Lào Cai, Thanh Hóa, Móng Cái, Cửa Ông, Vinh, Hà Tĩnh, Quảng Bình, Quy Nhơn, Vũng Tàu, and Cần Thơ.

Vinacontrol was listed on HNX in late 2006 with a charter capital of VNĐ52.5 billion, which has now increased to nearly VNĐ105 billion.

Over the past decade, the company's net revenue has consistently grown, with profit after tax remaining above VNĐ30 billion for the past seven years. In the first nine months of 2023, Vinacontrol reported net revenue of VNĐ511 billion and a net profit of VNĐ28 billion, representing year-on-year increases of 12 per cent and 5 per cent, respectively. 

Vietnam seeks US support in high-tech infrastructure development

Deputy Minister of Science and Technology Bui The Duy has called on the US to support the development of high-tech infrastructure in Vietnam.

He made the suggestion on December 14 at a reception for a business delegation from the US-ASEAN Business Council (USABC), led by USABC Senior Vice President and Regional Managing Director Brian D.McFeeters, and the council's Executive Director of Global Policy & Government Affairs, Asia Pacific, Seow Hiong Goh.

Deputy Minister Duy said Vietnam has been paying attention to the development of artificial intelligence (AI) from R&D, human resources and infrastructure, along with management policies.

He asked the US business delegation to engage in discussions about areas of mutual concern such as AI, technology infrastructure, high technology and intellectual property.  

Vietnam applies the highest incentives to businesses operating in the field of high technology, with support for technology, priority products, and high-technology business, he noted.

At the reception, McFeeters said that Vietnam is an important market in promoting digital economic development, thus companies in the delegation want to engage in the digital economy in the country.

Meanwhile, Goh said although Vietnam does not have a specific policy on AI, many Vietnamese companies are already developing AI products, such as FPT AI, TPS AI, Zalo AI and VinAI research. Therefore, it is necessary for the Southeast Asian country to build and complete an appropriate legal corridor for AI applications, he said.

On this occasion, the two sides also talked about Vietnam's digital transformation strategy and digital socio-economic development programme in 2024 in relation with maintaining macroeconomic stability, improving the country's resilience to fluctuations in the global economy, and developing emerging technologies such as cloud computing and AI.

HCM City works to better investment climate for Japanese firms

Authorities of Ho Chi Minh City had a roundtable with Japanese businesses on December 14 to tackle difficulties facing the firms and share information about the southern economic hub’s investment cooperation demand.

Chairman of the HCM City People’s Committee Phan Van Mai said such a meeting has been held for 22 times so far. Aside from tackling difficulties and obstacles, local officials also wish to listen to businesses and investors’ feedback and suggestions so as to create a favourable policy environment for economic, investment, and trade cooperation.

As Vietnam and Japan recently upgraded bilateral relations to a comprehensive strategic partnership after 50 years of diplomatic ties, discussing development orientations is a timely step to help implement the two countries’ cooperation framework in the new period, he noted.

Japanese Consul General in HCM City Ono Masuo said that the year 2023 marks an important and special milestone in the Vietnam - Japan relations as seen in many exchanges, high-level meetings, and the upgrade of bilateral ties to the comprehensive strategic partnership for peace and prosperity in Asia and the world. The two countries are also preparing to carry out the Vietnam - Japan Joint Initiative in the fields of innovation, digital transformation, and consolidation of supply chains, including developing supporting industries and a skilled workforce to ensure production stability.

Japanese businesses and investors are highly interested in the National Assembly’s Resolution 98/2023/QH15 on piloting some specific mechanisms and policies for the development of HCM City, he said, noting that they hope it will support the dynamic and pioneering development of the city, an important contributor to the Vietnamese economy.

Mizushima Kozo, Chairman of the Japanese Chamber of Commerce and Industry in HCM City (JCCH), said with 1,053 members, the JCCH now has the third largest membership among 100 overseas Japanese business associations. Its membership has doubled over the last 10 years, showing HCM City’s attractiveness to Japanese businesses and investors.

He cited a recent survey conducted by the JCCH as showing that Vietnam ranks second, after the US, in terms of the development potential index with 90% of the interviewed businesses saying they want or plan to expand operations in the time ahead.

Pham Trung Kien, Deputy Director of the municipal Department of Planning and Investment, said HCM City is currently home to 12,300 foreign investment projects totalling 57.25 billion USD in capital. With 5.7 billion USD, Japan accounts for nearly 10% of the total foreign investment, ranking third.

The fields recording much Japanese investment include processing - manufacturing, wholesaling, retailing, automobile and motorcycle repair, real estate, science - technology, and information and communications.

To create optimum conditions for investors’ activities, HCM City has unceasingly reformed administrative procedures and boosted information technology application to improve transparency. It has also worked to eliminate unnecessary administrative procedures and business conditions, stayed creative and flexible during policy implementation, and increased dialogue with businesses, according to the official.

Southern industrial real estate sees high demand in Q3

The industrial real estate market in the south was vibrant and thriving in the third quarter of 2023, with the rental area reaching 143,000 sq.m, up 2.4 times compared to the previous quarter.

Many industrial parks have readied their supplies to welcome foreign direct investment (FDI) capital flows into Vietnam.

According to Cushman & Wakefield in Vietnam, the demand for renting ready-built factories and warehouses in southern localities is diverse, coming from many industries such as textiles, chemicals, and electronics.

In the quarter, factories for rent in Dong Nai, Binh Duong, Ba Ria - Vung Tau, and Long An recorded the highest absorption rate. Dong Nai led with nearly 60% of the total absorption.

The occupancy rate of industrial factories and warehouses for lease in the southern region has reached 74%, with an average rental price of 4.7 USD/sq.m/month. High-demand locations such as Dong Nai and Ba Ria - Vung Tau have experienced the highest annual growth, approximately 2.5%.

In the optimistic trend of the market, some companies operating in supplying industrial park infrastructure have reported a relatively high warehouse occupancy rate. 

For instance, warehouses for lease in industrial parks managed by Sonadezi Corporation and its member companies have recorded an occupancy rate of 92%, attracting approximately 130 million USD in FDI and 720 billion VND (nearly 29.7 million USD) in domestic direct investment (DDI).

In Dong Nai, 33 industrial parks have leased a total of 6,024 ha, reaching nearly 86% of the available land for rent. As of November 2023, Dong Nai attracted approximately 1.037 trillion USD in FDI and over 2.64 trillion VND in DDI, up 48.2% and 32.15% of the set plan, respectively.  

So far this year, the leased area reached 24.73 ha, with projects primarily renting warehouses for manufacturing and business purposes.

Meanwhile, Ba Ria – Vung Tau lured 751 million USD of FDI from new projects, and 503 million USD from capital-added projects, respectively up 2.78 times and 15.3% compared to the same period last year.

The total supply of industrial factories and warehouses in the south is forecast to rise by about 2.5 million sq.m by 2026. This is expected to be new motivation for the market, especially in the context of industrial land available for lease has become increasingly scarce.

Tax authorities, police to inspect e-invoice issuance at petroleum stores

The Tax Authority will coordinate with the police and other relevant agencies to strengthen the inspection of e-invoice issuance at petroleum stations according to the current legal regulations.

In order to urge the deployment of electronic invoices for petroleum business activities, the tax authority had previously issued an official dispatch 2122 dated June 20, 2022 to send to the Vietnam Petroleum Association.

Additionally, in order to ensure compliance with legal regulations related to invoices and documents, the Ho Chi Minh City Tax Department required petroleum trading enterprises to deploy the requirement of creating electronic invoices for each customer right after each sale.

Besides, gasoline sellers must fully reserve all electronic invoices for the inspection of competent authorities if any.

The Tax Authority will coordinate with the police and other relevant agencies to strengthen the inspection of electronic invoice issuance at petroleum stores and handle strictly cases without compliance.

The Tax Department required petroleum trading businesses to urgently complete and upgrade technical infrastructure and contact electronic invoice solution providers for the implementation.

Currently, some petroleum store systems in Ho Chi Minh City have deployed electronic invoice issuance for each sale.

The Tax Department commits to accompany and facilitate businesses in the implementation of tax laws in general and electronic invoices in particular.

State budget revenue in Jan-Nov drops over 7%

State budget revenue in the year to end-November had declined by 7.1% over the same period last year, according to the Ministry of Finance.

The total State budget revenue in the January-November period amounted to nearly VND1.54 quadrillion, equivalent to 94.9% of the 2023 estimate.

The central Government achieved around 96.3% of its projected budget, while local budget revenues met 93.2% of their projections.

Revenue from domestic sources reached over VND1.27 quadrillion, equivalent to 95.4% of the estimate and dropping by 3% year-on-year.

Despite the State budget revenue decline, the accumulated budget expenditure between January and November totaled nearly VND1,503 trillion, equivalent to 72.4% of the estimate and increasing by 10.9% year-on-year.

Of the total budget spending, development investment amounted to an estimated VND461 trillion, up 36.4% year-on-year, while regular spending was VND953 trillion, inching up 2.5%.

Debt payments were estimated to be around VND86.4 trillion, showing a 3.4% increase compared to the same period last year.

HCMC achieves 59% of site clearance disbursement in Jan-Nov

HCMC had disbursed about VND15,600 billion in site clearance compensation for public investment projects in the year to November 30, achieving 59% of the full-year target, according to a recent report from the HCMC Department of Environment and Natural Resources.

Districts 8, 1, 12, Tan Binh, and Phu Nhuan were the top performers, with disbursement rates exceeding 90%. In contrast, 10 other districts reported disbursement rates of 50% to below 90%.

However, District 6, Tan Phu, Thu Duc City, and Can Gio fell below the 50% threshold. Tan Phu District’s disbursement rate was just over 23% by the end of November. The district faces the challenge of disbursing VND209 billion out of the outstanding amount, as residents do not agree with the compensation policy.

District 3 has not disbursed VND423 billion for those affected by the Metro No. 2 project, as it awaits a conclusion from the HCMC People’s Committee for further proceeding.

The department expected that District 5, through resource mobilization efforts, could raise its disbursement rate to over 90%.

Thu Duc City received the largest funding allocation for site clearance compensation, with more than VND9,500 billion, constituting 36% of the city’s total. Although a substantial amount of VND4,200 billion has been disbursed in the city in recent months, the rate remains at 44%. The department anticipated that the disbursement rate for Thu Duc City could reach a maximum of 61% by the end of the year.

Given the need to disburse more than VND10,800 billion in the rest of the year and the target to disburse over 95% within the city, the department is expediting the resolution of issues related to irrigation projects along the Saigon River and a bus station in Cu Chi District.

The department has also proposed authorizing three districts – Nha Be, Hoc Mon and Cu Chi – to review available land for building resettlement areas.

Five major cities outline key economic targets for 2024

Vietnam’s five major cities are gearing up for economic expansion next year, with a strategic emphasis on digital transformation, green growth, and foreign investment attraction.

HCMC is aiming for a Gross Regional Domestic Product (GRDP) growth rate of 7.5-8% in 2024.

The southern metropolis plans to attract six million international tourists, achieve 100% of its state budget revenue target, and make the most of Resolution 98/2023/QH15 adopted by the National Assembly to bolster economic development. It also aspires to be among the top five localities with the highest digital transformation index.

The capital city of Hanoi has set a GRDP growth target of 6.5-7% for 2024. The city’s government plans to prioritize administrative reform, and improve the investment environment, and the city’s rankings in various economic competitiveness indices. These indices include the Vietnam Provincial Governance and Public Administration Performance Index (PAPI), the Provincial Competitiveness Index (PCI), the Public Administration Reform Index (PAR Index), and the Satisfaction Index of Public Administrative Services (SIPAS).

Danang, knowned for its tourism and logistics, envisions two growth scenarios for 2024. In the first scenario, the central coastal city aims for a GRDP growth ranging from 7-7.5%. This includes an 8-8.5% increase in value added in the service sector and a 3.4-3.8% rise in the industrial-construction sectors. The agricultural-forestry-fishery sector is projected to expand by 2-2.5%.

In the second, more ambitious scenario, Danang looks to obtain GRDP growth of 8-8.5%, anticipating an 8.5-9% expansion in the service sector, a 6-6.5% rise in the industrial-construction sectors, and a 2-2.5% increase in the agricultural-forestry-fishery sector.

The northern port city of Haiphong is eyeing a double-digit GRDP growth rate of 11.5-12% in 2024. To achieve this, the city plans to broaden its economic scope, innovate its growth model, and restructure its economy around the high-tech industry, seaport-logistics, and tourism-trade.

The Mekong city of Can Tho has set a target of 7.5-8% GRDP growth for 2024. The city’s priorities include facilitating the digital and green economy, enhancing the business environment, fostering regional linkages, and attracting international cooperation.

Fuel prices decline further

Retail fuel prices have dropped again, this time with a more sizeable cut, according a joint announcement made by the ministries of Industry-Trade and Finance at 3:00 p.m. on December 14.

The price of RON 95-III gasoline now stands at VND21,400 per liter, a reduction of VND920. Similarly, E5 RON 92 bio-gasoline is now available at VND20,510, reflecting a decrease of VND780.

Other fuel types have also edged down. Diesel oil is currently priced at VND19,000 per liter, a decrease of VND720.

Kerosene and heavy fuel oil are being sold for VND19,960 per liter and VND14,970 per kilogram, respectively, down by VND960 and VND550.

With these latest adjustments, the prices of E5 RON 95 and diesel have returned to the levels observed in May of this year.

During this fuel price adjustment, no additional surcharges have been imposed on fuels to replenish the fuel price stabilization fund, and local fuel traders are not authorized to tap into the fund.

Activities in industrial production heat up

Vietnam’s industrial performance is looking up, with the economy forecasted to see a stronger outlook moving into next year.

The Ministry of Planning and Investment reported that manufacturers have been making efforts in looking for orders to fulfil their production and business plans for 2023 and to prepare goods for growing demands at the year’s end, so industrial production for November continues its “positive trend”.

In November, Vietnam’s index for industrial production is estimated to climb 3 per cent on-month and 5.8 per cent on-year. In October, the index rose 4.1 per cent on-year.

In the first 11 months of this year, the index ascended 1 per cent on-year – higher than the on-year 10-month ascension of 0.5 per cent on-year. In which the manufacturing and processing sector creating over 80 per cent of industrial growth increased 1.1 per cent on-year.

The GSO reported that the economy’s production and distribution of electricity in the first 11 months rose 3.2 per cent on-year, while the management and treatment of wastewater climbed 4.9 per cent.

State-run Vietnam Electricity (EVN) reported that all of its activities were increasing on-year in the first 10 months of this year.

The group’s total electricity output in October reached 24.3 billion kWh – up 11.3 per cent on-year. Cumulatively in the first 10 months, the figure hit nearly 234.13 billion kWh, up 3.9 per cent on-year.

The ratios of electricity contributors vary, with hydroelectricity (over 66.74 billion kWh – accounting for 28.5 per cent), coal-fired power (107.74 billion, 46 per cent), gas turbines (22.9 billion, 9.8 per cent), oil-fired power (1.23 billion, 0.5 per cent), renewable energy (31.58 billion, 13.5 per cent), and imported electricity (3.56 billion, 1.5 per cent).

So far this year, EVN has commenced construction of 62 works and put into operation over 70 power projects.

The GSO said that in the first 11 months of this year, business confidence has continued to rise. Specifically, the Vietnamese economy witnessed over 146,000 enterprises newly established, with total registered capital of $57.64 billion and employed 974,100 people – up 6 per cent in the number of enterprises, down 7.9 per cent in capital, and 7.2 per cent in labourers, all as compared to those in the same period last year.

“Despite difficulties, production and business activities continued to recover, especially the service sector, which is forecasted to be more active in the coming time,” said Nguyen Thi Huong, general director of the GSO.

Meanwhile, the AHK World Business Outlook Fall 2023 survey was unveiled a fortnight ago, providing valuable insights into the perspectives of German investors worldwide and in Vietnam.

When it comes to investment plans, the survey, conducted from September 25 to October 20, reveals that 42 per cent of German companies in Vietnam prioritise diversifying production and manufacturing, indicating a strategic focus on varied production capabilities. Sales and marketing (41 per cent), services (35 per cent), and logistics (31 per cent) closely follow, underscoring a comprehensive approach to business development. This year, Germany has taken a bold step in further solidifying its presence in Vietnam. A total of 26 foreign-invested projects have been initiated, representing a combined investment of nearly $221.5 million.

“Vietnam’s government has implemented a suite of measures designed to attract foreign investments. These include tax incentives, preferential tariffs, and streamlined bureaucratic processes. Moreover, transparent regulatory frameworks protect investors’ interests and provide a stable foundation for long-term collaboration,” Marko Walde, chief representative of AHK in Vietnam, Myanmar, Cambodia and Laos, told VIR.

“Furthermore, the spectrum of investment opportunities in Vietnam is extensive and diverse. These encompass the establishment of large-scale solar and wind farms, the implementation of energy-efficient technologies in various industries and residential buildings, as well as collaborative efforts in research and development, technology transfer, and capacity building,” Walde said.

Global analysts FocusEconomics told VIR that after slowing this year, Vietnam should be among ASEAN’s fastest-growing economies in 2024 as industrial output and goods exports rebound. Moreover, a further recovery in tourist arrivals will buoy the services sector. An economic deterioration in key partner China and a repeat of the financial turbulence in real estate observed in early 2023 are downside risks.

FocusEconomics panellists see GDP expanding 5.9 per cent in 2024 and 6.6 per cent in 2025; and industrial production expanding 6.7 per cent in 2024 and 9 per cent in 2025.

“The latest data showed some encouraging signs that activities may have turned around as exports expanded in September after six consecutive months of declines while manufacturing output recorded its fourth consecutive month of on-year increases,” said United Overseas Bank’s Suan Teck Kin.

“Despite the uncertain outlook, foreign enterprises continued to commit to the country in the current wave of de-globalisation, de-risking, and supply chains shifts. Despite firmer growth in Q3 of 23, the drag from the first six months of the year remains significant. As such, we are adjusting lower Vietnam’s full-year growth forecast to 5 per cent.”

JICA vows to foster Vietnam – Japan comprehensive cooperation

The Japan International Cooperation Agency (JICA) has pledged to make further efforts to contribute to Vietnam’s development through its ODA capital and to promote the recently established Comprehensive Strategic Partnership between Vietnam and Japan, according to Yuichi Sugano, chief representative of JICA – Vietnam Office.

Sugano told the Vietnamese Government’s portal ahead of Vietnamese Prime Minister Pham Minh Chinh’s departure for the ASEAN-Japan commemorative summit in Tokyo from December 15 to 18 that Japanese ODA capital is focused on key areas, such as transportation, energy, and urban infrastructure. By the end of 2022, the total capacity of power plants built from Japanese ODA and PSIF (Private Sector Investment and Finance) capital stood at 5,226 MW, equivalent to roughly 6.5% of the total installed capacity of the country’s power system.

Highlights of bilateral ties can also be seen through symbolic projects such as Noi Bai International Airport (Terminal 2) and Nhat Tan Bridge in Hanoi, as well as Binh Hung wastewater treatment plant and metro urban railway line No. 1 in Ho Chi Minh City. The Management Board of Ho Chi Minh City Urban Railways (MAUR) reports that 96% of the workload of the southern city’s metro line No.1 project has now been completed. 

With regard to infrastructure development, JICA has granted loans to big projects such as National Highways 3, 5, 18; Ring Road 3; the Hai Phong, Cai Lan, and Lach Huyen ports; and Nhat Tan, Binh, and Bai Chay bridges.

In July 2023 JICA agreed to provide ODA loans worth JPY60,983 million, equivalent to nearly VND11,000 billion,  to implement three projects in Vietnam. Of the total sum, JPY50 billion will go to the post-pandemic socio-economic recovery and development programme which has already been approved by the National Assembly. This can be considered as a ‘pioneer project’ of the Far East nation’s new generation ODA scheme for Vietnam, according to the JICA Vietnam leader.

Japan is in the process of discussing new-generation ODA sources to provide capital flexibly that can fully meet the needs of the Vietnamese Government, he said.

Sugano also revealed that moving forward JICA would prioritise co-operation with the Vietnamese side in high-quality infrastructure development, human resource development, health care, and climate change response.

To effectively implement ODA projects, he recommended that Vietnam move to introduce clear and easy-to-understand regulations, and simplify administrative procedures, pointing to the fact that a delay could cause the total project cost to increase due to inflation, exchange rate fluctuations, and increased prices of materials and equipment. He expressed his belief that ODA capital will be used more effectively when regulations are improved.

Japan is the largest ODA donor to Vietnam among member countries of the Organization for Economic Cooperation and Development (OECD), with its ODA capital making up more than 30% of the total ODA capital which foreign donors have committed to the country. From April 2022 to March this year, Japan committed JPY18.9 billion, equivalent to VND3,100 billion, to Vietnam.

Flash Sale Holiday gathers together over 400 leading brands

The Flash Sale Holiday, taking place as part of the Shopping Season 2023, opened on December 15 in Ho Chi Minh City, attracting more than 400 reputable domestic and foreign brands from 60 businesses globally.

On display across 170 booths were garments and textiles, footwear, handbags, watches, suitcases, and fashionable accessories from Coach, Guess, Jockey, Fossil, Casio, Bolova, Vera, Pierre Cardin, Puma, and Skechers.

During the three-day event, consumers and tourists will have the opportunity to purchase high-quality products at discounts of up to 90%.

Most notably, participating brands are expected to offer additional discounts for gifts to customers who use non-cash payment methods.

Nguyen Nguyen Phuong, deputy director of the City Department of Industry and Trade in Ho Chi Minh City, said the Flash Sale Holiday has become one of the southern city's key trade promotional activities, noting that the city is deploying a number of schemes aimed at turning it into a modern and attractive shopping hub in a bid to attract more domestic and international tourists.

He revealed that the event will be organised on an even larger scale next year at various locations across the city in order to give both local residents and tourists more opportunities to enjoy the shopping experience. 

Outstanding industrial products in rural areas honoured

As many as 173 products were recognised as national outstanding rural industrial goods in 2023 at a ceremony held by the Ministry of Industry and Trade in Hanoi on December 15.

The products, which were selected from 465 products at the regional level, have good quality, hold great potential to expand production, and meet the taste of both domestic and foreign customers.

Speaking at the ceremony, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan asked stakeholders to continue support businesses in trade and investment promotion and the application of advanced technologies into production to improve productivity and ensure food safety.

It is necessary to work out measures to assist the formation of production in a sustainable value chain, and promote economic and labour restructuring in rural areas, he said. The move aims to preserve the cultural values of craft villages, helping them better integrate into the global market.

He also encouraged enterprises to continue research, expand production and develop their products to make further contributions to the nation’s socio-economic development.

Activities held within the framework of the exhibition included a talk on the development of rural industrial products and a consultation on digital transformation.

Quang Tri airport project launched

A ceremony was held in Dong Ha city in the central province of Quang Tri on December 15 to launch a project to build an airport in the province.

The airport will be built in Gio Quang, Gio Hai, and Gio Mai communes of Gio Linh district on an area of 265ha, and with a total investment of 5.83 trillion VND (240 million USD).

Once operational, it will handle up to 5 million passengers and 25,500 tonnes of cargo per year.

A consortium comprising two companies is the investor for the Public-Private Partnership (PPP) project.

According to a decision by the provincial People’s Committee approving the selection of the investor, the project will be carried out under a Build-Operate-Transfer (BOT) contract, with its preparation and construction expected to take two years. The contract implementation period (operation, toll collection, return of capital) is 47 years and 2 months.

It is one of the 33 airports in the Master Planning on airport development in the 2021-2030 period with a vision to 2050, approved by the Prime Minister in June.

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