The UK-Vietnam Free Trade Agreement (UVFTA) is one of the key drivers boosting the growth of Vietnam’s timber and wood product exports to the UK, industry experts have said.

According to the Vietnam Timber and Forest Products Association (VIFORES), exports to the UK are expected to be worth 230 million USD this year, up from 195 million USD last year. In the first 10 months this year, they were worth 182.1 million USD.

The association said the trade deal, which took effect in 2021, has positively impacted the wood industry due to preferential tax rates that will move towards zero% in five years for all wood products.

Vietnam’s timber and wood products hold a competitive advantage over those from other countries exported to the UK, it said.

Ngo Sy Hoai, VIFORES’ deputy chairman and general secretary, said while exports to the UK are modest compared to overall exports (estimated at 16 billion USD this year), the UK is an important export market of Vietnam’s wooden products in Europe, accounting for 40% of the country’s exports to the EU27.

"We view the UK market as a gateway to Europe. If we can export extensively to the UK, we can confidently enter other markets, as the UK has stringent requirements regarding quality, design, and environmental standards.

“Vietnamese businesses have met these requirements successfully, with no safety warnings from this market."

According to the Ministry of Industry and Trade’s import-export department, more than 90% of wood products exported to the UK were furniture, a high-value item for the industry.

Increasing furniture exports to the UK could significantly contribute to the industry's growth in the coming years, it said.

The department underscored that globally, the UK ranks among the top five importers of wooden furniture. However, Vietnamese furniture products have a very small share of that market, meaning considerable opportunities remain for Vietnamese exporters.

The UK’s accession to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) in 2024 would pave the way for even more opportunities, it said.

Despite these opportunities, the department and Hoai caution about challenges when exporting to the market since it has strict environmental and quality requirements.
To overcome them and grab opportunities arising due to the UKVFTA, the department said Vietnamese wood exporters should adopt appropriate strategies and understand the UK market.

They should focus on quality and design and on improving production technologies to meet the stringent requirements there.

They need to embrace a comprehensive transition towards sustainability, adopt digital marketing tools to enhance promotion and participate in trade fairs, particularly in the UK, to showcase their products and find new customers, it added.

According to Hoai, to further leverage the trade deal, Vietnamese businesses need to focus on product design and developing their brands.

Exports of wooden products with proprietary designs account for less than 10%, he said.

This has disadvantages and added value remained modest, he pointed out, saying businesses should promote products with their own designs to improve value.

Encouragingly, some leading firms have invested in design and marketing, taking advantage of technological advancements in the digital era, he said.

While the UK is no longer part of the EU, many of the bloc’s regulations still apply in the UK.

For instance, the EU Deforestation Regulation is expected to be enforced similarly in the UK. Businesses must prepare to meet traceability and accountability requirements to ensure their products do not cause deforestation or forest degradation, he said.

At a recent seminar, Vu Viet Thanh of the Ministry of Industry and Trade's European-American market department advised Vietnamese businesses exporting to the UK to thoroughly research market information and their potential partners to avoid fraud and scams.

They themselves need to ensure supply chain transparency and product traceability, he warned.

According to experts, British businesses look for diverse and reliable sources for furniture supply.

By continuing to leverage the benefits of the UKVFTA, Vietnamese manufacturers could solidify their market position in the UK, they added.

Thanh said, to help Vietnamese businesses effectively leverage free trade agreements, the European-American market department would strengthen dissemination of information and training to raise awareness among the business community of sustainable development, green production and brand building.

The department would persuade trade partners to remove barriers to market access, provide support and guidance to businesses for adapting quickly and effectively to changes in market requirements and standards and intensify trade promotion, particularly by leveraging distribution channels, to take Vietnamese goods to sourcing groups worldwide./. 

Binh Duong posts 10 billion USD in trade surplus this year

Binh Duong province is projected to achieve a record trade surplus of 10 billion USD this year, reaffirming its role as a leading economic hub in southern Vietnam.

According to the provincial Department of Industry and Trade, the province will rake in an estimated 34.5 billion USD from exports, up 12.7% year-on-year, and spend some 24.5 billion USD on imports, an increase of 12.2% compared with last year’s figure.

Exports from Binh Duong currently account for over 10% of Vietnam’s total export value. Six key products, namely wood and wood products, textiles, footwear, steel, and electronics, contributed 19.3 billion USD, making up 56.2% of the province’s total export value. Notably, wood export value rose by 17.6% to 6.5 billion USD, while textile export increased by 15.1%, reaching 3.2 billion USD.

According to Nguyen Thanh Toan, Director of the provincial Department of Industry and Trade, the 10-billion USD trade surplus reflects the resilience and adaptability of local businesses. He said enterprises have effectively utilised free trade agreements to expand markets, particularly in the US, EU, Japan, and China.

Toan said that in the coming time, the department will foster trade connections and provide timely information to industries and businesses through regular Ministry of Industry and Trade meetings to boost exports. It will also explore new markets, such as Halal markets, to broaden opportunities for local goods.

Chairman of the Binh Duong People’s Committee Vo Van Minh attributed the record trade surplus to close cooperation between local authorities and the business community. Moving forward, the province plans to invest heavily in industrial infrastructure, digital transformation, and supportive policies to sustain growth in 2025.

It will focus on developing trade and logistics infrastructure and improving transportation networks, particularly those connecting ports and industrial zones, aiming to create favourable conditions for businesses to maintain production and exports.

Businesses will be encouraged to adopt digital transformation, smart manufacturing, and supply chain automation to enhance productivity and product quality. Binh Duong plans to invest in high-quality workforce training, provide financial support, and offer consulting on legal regulations in potential export markets, the official said./.

PM outlines key tasks for development of logistics sector

Prime Minister Pham Minh Chinh has outlined three objectives and seven key tasks to promote the growth of Vietnam’s logistics sector, including reducing logistics costs from 18% to 15% by 2025.

Addressing the Vietnam Logistics Forum 2024, which was held in southern Ba Ria-Vung Tau province on December 2, PM Chinh pointed to the need to increase the sector's contribution to the country's GDP from 10% to 15% and even 20%, while raising Vietnam’s share of global logistics from 0.4% to 0.6%, and lifting the sector's growth rate from 14-15% to 20%.

Along with raising public awareness of the position, role, and importance of logistics in the country’s development process, it is necessary to create a breakthrough in institutional development, with efforts to refine frameworks to ensure that the logistics sector develops in line with the three key objectives, contributing to achieving double-digit growth and ushering the country into a new era — the era of nation’s rise, where the country becomes prosperous and strong.

The Government leader called for the development of modern, seamless logistics infrastructure that reduces input costs and enhances the competitiveness of products. This includes promoting the growth of air, maritime, and high-speed rail transport. Additionally, a focus must be placed on smart governance, high-quality human resources, and strengthening logistics diplomacy, while modernising domestic logistics operations, building and developing a free trade nation with close connections among various transport methods - air, sea, rail, inland waterway, and highways, linking the world’s free trade zones and the international transport network.

The PM requested relevant ministries, sectors, and localities to urgently focus on building a free trade nation, finalising Vietnam’s logistics development strategy and establishing international free trade zones.

PM Chinh highlighted the Government's role in building institutions, strategies, and plans to create a conducive environment for the development of logistics. He stressed the need for localities to increase activeness and self-reliance in boosting logistics development, and urged businesses to become more self-reliant and make more contributions to the development of policies that balance the interests of the State, the people, and enterprises, emphasising the motto of harmonising benefits and sharing risks.

The leader also called on foreign organisations and businesses to collaborate and invest in Vietnam, following the principles of mutual understanding, shared vision, and joint actions, mutual benefits and common development.

Vietnam is seen by experts as having significant opportunities to promote the growth of the logistics sector thanks to expanding infrastructure, including road systems, airports, seaports, warehouses, and logistics centres. The development is rapidly meeting the market's diverse demands.

In recent years, Vietnam’s logistics sector has grown at about 14-16% per year, with a scale of around 40-42 billion USD a year. According to the World Bank's rankings, Vietnam currently ranks 43rd out of 155 countries in logistics efficiency and is among the top five in the Association of Southeast Asian Nations (ASEAN).

In the first nine months of 2024, nearly 6,500 logistics companies were established with total registered capital of 36.55 trillion VND (1.43 billion USD) and nearly 28,900 employees. This marked a 13.5% increase in the number of companies and an 18.3% rise in the number of employees, despite a decrease of 11.3% in capital compared to the same period in 2023.

The Vietnam Logistics Forum, organised annually by the Ministry of Industry and Trade since 2013, aims to promote the application of advanced technologies in supply chain operations, enhance competitiveness in Ba Ria – Vung Tau and the Southeastern region, and foster cooperation among businesses, investors, and management agencies to develop the logistics sector in Vietnam.

This year, the forum sends out a message of Vietnam’s interest in developing free trade zones as a breakthrough solution for logistics growth, helping position Vietnam as a logistics powerhouse, and contributing to the nation's industrialisation and modernisation./.

Agricultural product exports poised for record-breaking year

Vietnam’s agricultural product exports are on track to achieve an unprecedented milestone, with projected revenue reaching 60-61 billion USD this year, up 7-8 billion USD compared to 2023.

As of now, several key sectors have already reached the finish line ahead of schedule. Durian, dubbed “king of fruits,” has set a new benchmark. By September, its export value had hit a record 2.81 billion USD, even surpassing the total of 2.2 billion USD earned last year. The figure rose to 3 billion USD over 10 months and is projected to hit 3.3 billion USD by the year’s end.

With the current growth momentum and the addition of frozen durian to the list of products exported to China via official channels, it is highly likely that the fruit’s shipments could reel in 4 billion USD next year, said Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit).

Its robust growth has helped push total fruit and vegetable export value to 5.6 billion USD in nine months – equaling the 2023 figure, 6.2 billion USD in 10 months, and 6.6 billion USD in 11 months.

The rice sector, meanwhile, has also achieved a remarkable feat, exceeding last year’s total export turnover within just 10 months. Despite a slight decrease in volume to 7.8 million tonnes (compared to 8.1 million tonnes in 2023), higher export prices pushed revenue to 4.9 billion USD, eclipsing last year’s 4.6 billion USD. The first 15 days of November saw the overseas shipments of nearly 300,000 tonnes, increasing the total export value to 5 billion USD.

October marked the start of the harvest time for local coffee, with 10-month exports totaling 1.2 million tonnes worth 4.6 billion USD, surpassing the figure of nearly 4.2 billion USD posted for all of 2023. Fundamentally, supply remains lower than demand, so coffee prices are expected to stay high, said Do Ha Nam, Vice Chairman of the Vietnam Coffee – Cocoa Association (Vicofa). However, future fluctuations will depend on the European Union’s final decision on whether to apply its anti-deforestation regulations (EUDR) as scheduled on December 30, 2024, or postpone it for 12 months as previously proposed.

Following the upward trend, the peppercorn industry has rebounded strongly, with export revenue of 1.1 billion USD in 10 months, an annual increase of 47%. For the first time since 2017, the product is set to rejoin the billion-dollar export club, with its 2024 turnover projected to exceed 1.3 billion USD.

Meanwhile, cashew exports hit 3.6 billion USD in the January-October period, matching 2023’s full-year figure. Vietnam remains the world’s leading exporter of the nut, with this year’s export value forecast to reach a record 4.3 – 4.5 billion USD./.

Taxes on second property require cautious, balanced approach

Property prices have been on the rise, causing economists and industry insiders to support stronger tax measures to keep prices in check while urging caution in their implementation.

Last week, the Vietnam Association of Real Estate Brokers (VARS) called for additional taxes on second properties and unused land lots, especially on apartments. According to the association, apartment prices in the second quarter increased by nearly 60% in Hanoi and 27% in HCM City, compared to 2019.

In addition, mid-range products have largely disappeared with over 80% of new apartments priced at 50 million VND or $2,000 per square metre (sqm) or higher. In some extreme cases, new apartments were listed for tens of thousands of dollars per sqm.

Older apartments experienced a price surge with decades-old units listed at two and three times their original prices. Price increases for villas, townhouses and suburban lands, while less outrageous, have also been reported.

Industry insiders attributed recent price surges to market speculators and manipulators having painstakingly created artificial supply-demand imbalances for profit.

Nguyen Van Dinh, the association’s chairman, said Vietnam currently lacked a legal framework to monitor and prevent speculative activities and land hoarding, both of which were major contributing factors to price hikes. It has been common for speculators to purchase lands, only to leave them vacant for years, even decades, creating sporadic and isolated supply shortages to drive prices up.

“We identify the lack of deterrents against speculative activities and land hoarding as an urgent problem that must be addressed, despite the numerous foreseeable difficulties,” he said.

Economists said Vietnam should learn from policies implemented by its Southeast Asian neighbours to curb land hoarding and speculation, including imposing heavy taxes on properties based on the duration of holding and if the properties were undeveloped.

For example, Singapore imposes a 16% tax on properties purchased and sold within the last 12 months. The tax rate decreases to 12% in the second year and 8% in the third year. Selling the properties after 36 months from the date of purchase will be free of tax. Meanwhile, taxes in the island nation go up to 20% and 30% for the second and third properties, respectively.

Buyers who fail to develop their lands should also be subject to a 5% tax, which would increase in subsequent years if the land remains undeveloped, a model employed by the South Korea government.

In France, vacant properties face a 17% tax during the first year and double to 34% in the next year. Such taxes should force owners of vacant lands and properties to rent or sell, boosting market supply.

This is the second round for second-property tax, which was discussed back in 2017 but later dismissed out of concerns for its feasibility and timing. Since then, the Ministry of Finance has been working on a series of policy changes to the country’s Property Law to improve land utilisation.

Implementation will likely face numerous obstacles, said economist Dinh Trong Thinh. He highlighted the need for a comprehensive and transparent database to track owners’ holdings. He also warned the government of legal loopholes that could allow owners to circumvent the laws through proxies and emphasised the risk of overtaxing, which could burden businesses and consumers.

“Every policy must ensure its gains will likely outweigh its damage,” he added.

Economist Dinh The Hien from the Institute of Information and Business Research said a tax on second properties could hurt the market’s confidence, drive prices up and lead to market contraction.

“Taxes are double-edged swords that can either stimulate or hinder growth," he said.

"In principle, taxes should promote market transparency and growth, which can also be accomplished by starting a comprehensive land database and evaluation."

Taxes and regulations do not always effectively counter land hoarding and speculation. For example, strict rules in purchasing second properties in large cities such as Beijing and Shanghai have significantly put a damper on the market, with some experts saying the financial losses have been crippling: a $18 trillion decrease in household wealth, 18 million jobs lost and plummeting demand for construction materials. The rules have since been relaxed, allowing easier purchases of second properties.

Hien said Vietnam, with limited resources compared to China, must tread the water with extreme caution, as a rash decision could send the property market, a major driver of socio-economic growth, into a downward spiral, hurting the economy as a whole./.

Tuna exports poised to hit 1 billion USD this year

Tuna export value is forecast to reach 1 billion USD in 2024, marking an 18% increase compared to last year’s figure and solidifying the product's role as one of Vietnam’s key seafood exports.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the country earned 821 million USD from tuna exports in the first ten months of the year, an 18% rise year-on-year. October alone saw shipments worth nearly 93 million USD, a 22% increase compared to the same period last year.

These figures reflect the post-COVID-19 recovery of the tuna industry and rising global demand for the fish.

Traditional markets like the United States and the European Union remain critical, while emerging markets have also shown positive growth. Vietnam’s tuna products, particularly canned goods, enjoy competitive advantages in countries such as Germany, the Netherlands, and Italy.

To further boost tuna exports, Vietnam has implemented various policies aimed at enhancing global competitiveness and ensuring the sustainable development of the industry. Efforts include negotiating and signing free trade agreements like the Europe-Vietnam Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP). The recent comprehensive economic partnership with the United Arab Emirates has opened doors to the Middle Eastern market.

Tuna-exporting enterprises have been given priority in access to preferential loans, enabling them to invest in equipment, processing, and preservation technologies to improve production lines.

Additionally, the Ministry of Industry and Trade, in collaboration with other agencies, has rolled out national trade promotion programmes. These initiatives help domestic businesses showcase Vietnamese tuna products at international trade fairs and connect with potential buyers, further strengthening the industry’s global presence./.

Airfares surge ahead of Lunar New Year holiday

As the Lunar New Year (Tet) holiday is approaching, the Vietnamese aviation market has experienced intense pressure with airfares soaring and seat availability becoming increasingly scarce.

Two months ahead of the nation’s biggest and longest holiday, many seats on flights have been already 90-100% booked while the number of operational aircraft has decreased by nearly 50 as compared to the same time last year.

The Civil Aviation Authority of Vietnam (CAAV) said the occupancy rate on the Ho Chi Minh City – Hue and Ho Chi Minh City – Chu Lai routes is 90% while tickets have been already sold out on those connecting the southern economic hub and Pleiku, Tuy Hoa, Quy Nhon, and Quang Binh.

Airlines estimated a 10% increase in travel demand for the holiday, complicated by ongoing fleet challenges, with Bamboo Airways and Pacific Airlines undergoing restructuring and Vietnam Airlines and Vietjet having to ground 20-25 planes for maintenance due to engine issues.

As a result, families are facing financial challenges since ticket prices nearly double during the peak travel season. Flying from Ho Chi Minh City to Hai Phong city could cost around 3.7 million VND (145.76 USD) per pax while airfares on the route during normal day range from 1.8 to 1.9 million VND.

Vietnamese carriers have leased aircraft in preparation for the travel boom during the holiday. Bamboo Airways added a narrow-body Airbus plane last month, increasing its fleet to eight. Earlier, Vietravel Airlines received a plane it wet-leased from Avion Express, a Lithuania – based lessor.

In the meantime, Vietnam Airlines has carried out its plan to lease four Airbus A320/A321 planes, each of which is expected to operate 180 flights during peak time.

CAAV Director Dinh Viet Thang said ticket price increases are typical during peak periods due to high demand and a rise in the operational costs, including fuel prices and currency fluctuations.

The aviation authority has directed airport management agencies to optimise flight schedules and increase the number of night flights to meet demand amidst an aircraft shortage, he said, adding competent authorities are monitoring ticket prices closely, asking businesses to list the airfares in accordance with regulations.

Airlines have warned consumers about a growing wave of fraudulent websites deceiving customers by requesting payments through personal accounts while failing to provide legitimate tickets or actual services, effectively stealing money from passengers.

Vietnam Airlines has specifically identified multiple fake domain names designed to mislead consumers, including variants such as vietnamairslines.com, vietnamaairlines.com, vietnamairlinesvn.com, and vemaybayvietnam.com. These fraudulent sites aggressively market tickets at prices that are 40-60% lower than official rates, attempting to lure customers with seemingly attractive deals.

Other carriers like Vietjet and Vietravel Airlines have also alerted the public about sophisticated scam tactics. These include fake prize notification schemes and fraudulent cheap ticket offers that typically involve sending deceptive links and pressuring customers to disclose personal and credit card information with the intent of financial theft./.

Dak Lak company exports first roasted coffee container to US

MISS EDE, a coffee brand under the Dak-Lak-based EDE Farm Trade Service LLC, held a ceremony in the Central Highlands province’s Buon Ma Thuot city on December 1 to mark the shipment of its first roasted coffee container to the US.

The event signaled a significant step in introducing local coffee to the global stage.

The 20-foot container, comprising 18,000 finished packs of roasted coffee, represents a fully processed product packaged in Vietnam, rather than raw materials or rebranded exports. The coffee was fermented to meet the US Food and Drug Administration (FDA)’s standards, with beans sourced from sustainable farming regions with the European Union Deforestation Regulation (EUDR) certification.

Managed by Simexco Dak Lak – MISS EDE's strategic partner and export trustee, the shipment was destined for Illinois, where it will be distributed through local supermarket networks. This opens the door for broader US consumer access and helps elevate the global profile of Vietnamese coffee.

Speaking at the ceremony, Director of the provincial Department of Industry and Trade Luu Van Khoi noted that the province’s agricultural products currently reach over 70 countries and territories worldwide. While many have show strong international competitiveness, the share of processed coffee exports remains low, contributing little value added to Dak Lak's coffee industry. He said this inaugural shipment is a crucial milestone, paving the way for expanding the local processed coffee exports and increasing value for the sector.

Hoang Danh Huu, Founder and CEO of MISS EDE, said with support from the department and the Buon Ma Thuot People’s Committee, the company has participated in national and international trade promotion programmes and established connections with global buyers and entered markets such as Thailand, the Republic of Korea, and now the US./.

PM urges rapid technology mastery in renewable energy development

Prime Minister Pham Minh Chinh on December 1 asked the Vietnam Oil and Gas Group (Petrovietnam) to accelerate technology transfer for wind turbine and blade production by 2026, ultimately achieving full technology mastery for offshore wind energy development.

Speaking at a series of events hosted by Petrovietnam and Petrovietnam Technical Services Corporation (PTSC) in the southern province of Ba Ria – Vung Tau, the Government leader expressed his delight at the achievements that the group has obtained despite formidable challenges, including completing the construction of Thai Binh 2 thermal power plant and proactively implementing the Block B gas – electricity project, making significant contributions to the state budget.

Noting noted that PTSC’s total offshore wind energy contract value has amounted to approximately 2 billion USD, securing employment through 2029, he said the milestone underscored Petrovietnam's transformation into an energy corporation that extends beyond traditional oil and gas development to encompass the renewable energy sector such as wind power and offshore electricity generation.

He asked the group to develop infrastructure, restructure management approaches and invest in human resources so as to serve its new development phase. Besides, it must strive for a 15-20% annual growth, aligning with the country’s objectives of becoming an upper middle-income country with a modern industry by 2030 and a developed nation with high-income by 2045.

PM Chinh expressed his confidence that with their tradition, fortune and potential, Petrovietnam and PTSC in particular will foster new growth motives while carrying out digital transformation, green transition, circular economy and energy transition and promoting renewable energy potential, contributing to the global development trend.

He asked ministries, sectors and Ba Ria – Vung Tau province to join hands with the Government to build rational mechanisms and policies for the group, revise relevant laws, and outline planning to facilitate businesses’ development.

Additionally, the PM stressed that Petrovietnam must continue expanding international cooperation to bring benefits to the nation and protect the national territorial sovereignty, noting the group and PTSC need to have better coordination with competent agencies to create breakthroughs for development, making contributions to building a prosperous nation and improving the people’s livelihoods.

At the events, PM Chinh participated in several ceremonies for key projects implemented by PTSC, comprising the launching and handover of offshore wind foundation platforms for Denmark’s Orsted Group under the CHW2204 project and the groundbreaking ceremony for transformer stations for the Baltica offshore wind farm project – among the largest ones in the world.

He also witnessed the exchange of significant contracts on the development of Lac Da Vang (golden camel) oil field and offshore wind foundation manufacturing and supplying between PTSC and its partners./.

Reference exchange rate down at week’s beginning

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at 24,240 VND/USD on December 2, down 1 VND from the last working day of the previous week.

With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 25,452 VND/USD and the floor rate 23,028 VND/USD.

At major commercial banks, the opening hour rates saw decreases.

At 8:29 am, Vietcombank listed the buying rate at 25,149 VND/USD and the selling rate at 25,452 VND/USD, down 11 VND from November 29.

BIDV also cut both rates by 11 VND, posting the buying rate at 25,152 VND/USD and the selling rate at 25,452 VND/USD./.

US levies anti-dumping duties on Vietnamese solar panels

The United States Department of Commerce (DOC) has announced plans to impose preliminary anti-dumping tax ranging from 21% to 217% on solar panels imported from four Southeast Asian countries, including Malaysia, Cambodia, Thailand, and Vietnam, according to details given by the Trade Remedies Authority of Vietnam (TRAV).

Accordingly, solar panels from several exporters in Vietnam, including JA Solar Vietnam, Jinko Solar (Vietnam) Industries, Boviet Solar Technology, and Trina Solar Energy Development Company, are all to be subject to anti-dumping tax rates of between 53.3% and 56.51%. The remaining Vietnamese solar panel exporters will be subject to tariffs of up to 271.28%.

Meanwhile, solar panels from Cambodia, Thailand, China, and Malaysia all face a rate of 117.12%, 77.85%, 21.31%, and 81.24%, respectively.

The final anti-dumping duties placed on solar panels imported from the four Southeast Asian countries will be announced by the DOC ahead on April 18, 2025.

Local businesses have been advised to fully co-operate with the DOC during the process, keep a close watch on the case’s developments, study the US’ policy and anti-dumping procedures, and keep in contact with TRAV for timely support.

Vietnamese manufacturing sector remains in growth territory in November

The Vietnamese manufacturing sector remained in growth territory during November, with the Manufacturing Purchasing Managers' Index (PMI) reaching 50.8 points, according to the latest reported released by S&P Global.

Despite these positives, the report outlines that overall business conditions have improved to a lesser extent than in October. Slower rises in output and new orders were recorded, with the latter impacted by export weakness.

Meanwhile, employment continued to fall amid cost cutting efforts, resulting in a continued accumulation of outstanding business. Input costs increased, although at a relatively modest level, with output prices rising slightly in response.

The PMI remained above the 50.0 no-change mark in November to signal a second consecutive monthly improvement in business conditions following the contraction caused by Typhoon Yagi back in September.

However, the score of 50.8 was down from 51.2 in October and pointed to only a modest strengthening in the health of the sector.

Andrew Harker, economics director at S&P Global Market Intelligence, said, "While the Vietnamese manufacturing sector remained in growth territory in November, it was a little disappointing to see rates of expansion in output and new orders falter slightly rather than continuing to gain momentum following the disruption caused by Typhoon Yagi in September. To some extent, the slowdown in growth reflected weakness in international demand, with exports down to the largest extent since July 2023".

"Firms were again keen to keep a lid on costs, and this contributed to another reduction in employment, in turn limiting the ability of companies to complete orders on time. The coming months will hopefully see demand solidify, giving firms the confidence to expand capacity," he noted.

Wood industry aims at US$16 billion in export earnings this year

The wood industry of Vietnam is likely to rake in US$16 billion from exports this year, far exceeding the initial target of US$14.2 billion set by the Ministry of Agriculture and Rural Development.

In the initial 10 months of this year, the export turnover of Vietnam’s wood industry reached US$13.2 billion, an increase of nearly 21% compared to the same period last year.

The United States was a major consumer of Vietnamese wood and wood products, accounting for more than 55% of the industry’s total export value. The market has high demand for both premium and affordable products, creating opportunities for small businesses to find market segments for their goods in the US.

Do Xuan Lap, president of the Vietnam Timber and Forest Products Association (VIFORES), shared that alongside the increasing market demand, wood businesses should proactively switch to environmentally friendly materials and recycled resources, which not only save costs but also meet new customer requirements.

“Building a strong market is essential for boosting export sales, especially in promoting and connecting markets. Organizing wood industry trade fairs creates business opportunities and allows Vietnamese companies to connect with international customers. If exports reach US$3 billion in the last two months of the year, the wood industry will achieve approximately US$16 billion in export turnover for the entire year,” said Lap.

Vietnam willing to offer optimal conditions for foreign investors

The country is always ready to create favourable conditions for foreign businesses, including UOB, to expand their investment activities, National Assembly Chairman Tran Thanh Man said at a meeting on December 2 with Wee Ee Cheong, Deputy Chairman and Chief Executive Officer of United Overseas Bank (UOB) – one of the world’s top banks, as part of his ongoing official visit to Singapore.

Hailing the bank's investment activities in Vietnam since 1993, Man  said that the country prioritizes the development of green finance, high technology, renewable energy, and green energy; and is always ready to create favourable conditions for foreign businesses, including UOB, to expand their investment activities in these sectors.

As Vietnam is researching the establishment of international financial centres in Ho Chi Minh City and Da Nang city, it hopes to learn from the experiences of other countries, including Singapore, on this model.

Informing the UOB leader of the Vietnamese legislature’s approval of the amended Law on Credit Institutions and the amended Land Law, the top Vietnamese legislator affirmed that the timely amendments and enactment of laws, especially those related to investment and business, aim to provide a favourable legal framework for both domestic and foreign investors to promote production and business activities in Vietnam.

He noted that with its strengths in aviation, seaports and finance-banking, Singapore is currently the fourth-largest trade partner of Vietnam in ASEAN and has more than 3,800 active investment projects totaling US$81 billion in Vietnam.

Wee Ee Cheong emphasized that Vietnam is always one of the top markets where UOB seeks to establish long-term cooperation and investment relationships.

As the only Singaporean bank operating in Vietnam, UOB aims to further increase its presence by opening a branch in Ho Chi Minh City – one of Vietnam's future international financial hubs, with a goal to continue providing financial services to foreign-invested businesses that have been, or will be operating and doing business in the country, thereby contributing to generating more jobs for the local workforce.

He voiced his hope and expectations that the group will continue to receive support and facilitation from the Party, State, and especially the National Assembly of Vietnam in promoting and expanding effective and successful investment and business activities in the country.

Bà Rịa–Vũng Tàu aims to develop free trade zone

Vice chair of the People’s Committee of Bà Rịa–Vũng Tàu Lê Ngọc Khánh said on Sunday that the southern province is capable of accommodating a free trade zone.

He was speaking at a workshop on the opportunities brought by free trade zones and ways to develop them held in Xuyên Mộc District by the Ministry of Industry and Trade.

Việt Nam currently has no free trade zones in operation except for a pilot model in Đà Nẵng, which was approved by the National Assembly and is expected to be completed next year.

Khánh said that after analysing the potential advantages of a free trade zone linked to seaports in Bà Rịa–Vũng Tàu, the province’s authorities realised the 1,000-hectare Cái Mép Hạ area met the necessary conditions to establish a free trade zone.

“Conducting thorough research for the development of the zone will be a key political task for the province’s authorities in the near future,” he said.

The economic benefits of free trade zones were also discussed at the workshop.

In the context of global economic integration, free trade zones have become an effective model for promoting import-export activities and developing logistics, experts said. They provide a flexible mechanism that allows businesses to benefit from tax exemptions, tax reductions and simplified administrative procedures.

This is especially important for Việt Nam, an economy heavily dependent on exports that is currently expanding its market through free trade agreements (FTAs) with many large global partners.

However, at the moment, Việt Nam’s legal system does not have regulations on the procedures, authority, decision-making processes, management models, operational mechanisms, or decentralised management in free trade zones, making it difficult to apply a unified approach.

In Bà Rịa-Vũng Tàu Province, Resolution 24 by the Politburo has set out a task for the local government to form a free trade zone associated with seaports in the Cái Mép Hạ area, and to continue to develop and modernise the Cái Mép–Thị Vải international gateway port into a large international transshipment port with regional and global significance. 

Yên Bái grants investment registration certificate for US$87 industrial park project

The People’s Committee of Yên Bái Province has granted the investment registration certificate for what is forecast to become the district's second largest industrial zone.

The certificate was awarded for the Trấn Yên Industrial Park infrastructure construction and business investment project Phase 1 to Viglacera Corporation JSC.

Phase 1 of the project will span 254.59 hectares, with an investment goal of constructing and operating industrial infrastructure. The total expected investment capital is VNĐ2.18 trillion (US$87.3 million).

The project implementation progress will span from the third quarter of 2024 to the fourth quarter of 2028.

The provincial Party Secretary, Trần Huy Tuấn, emphasised that once operational, Phase 1 of the Trấn Yên Industrial Park project would become the province's second-largest industrial zone. It is expected to play a key role in driving Yên Bái's socio-economic development.

The project aligns with the province's strategy of attracting investment and fostering industrial growth in the northern midlands and mountainous regions.

The industrial park is expected to create high-value contributions to industrial production and export turnover while accelerating the economic transformation of Trấn Yên District and Yên Bái Province towards industrialisation and modernisation.

Nguyễn Anh Tuấn, General Director of Viglacera Corporation JSC, said the project would soon commence construction, providing an excellent opportunity to attract investors.

He asked for the province's assistance in land clearance, electricity supply and clean water access to ensure timely project execution.

Viglacera Corporation is committed to prioritising wastewater treatment and deploying the project at the highest speed to draw investors to Yên Bái.

The Trấn Yên Industrial Park, located in Bảo Hưng and Minh Quân communes, Trấn Yên District, is expected to cover 339 hectares and operate as a multi-sector industrial park. It will focus on agricultural and forestry product processing, high-end building materials, mineral processing, chemicals, consumer goods, high-tech industries and supporting industries.

Việt Nam's OCOP products debut at AF-L'ARTIGIANO IN FIERA 2024 in Milan

For the first time, Việt Nam is showcasing its OCOP (One Commune, One Product) products at the prestigious AF-L'ARTIGIANO IN FIERA International Handicraft Fair 2024, held in Milan, Italy, from November 30 to December 8.

This globally renowned fair features over 10,000 stalls and attracts participation from countries across Europe, Asia the Americas and Africa, drawing more than one million visitors annually.

Under the theme 'Việt Nam’s OCOP Products: Gathering Values, Spreading Culture', Việt Nam’s pavilion spans 200 square metres, with 100 square metres hosted by the Ministry of Agriculture and Rural Development and the remaining 100 square metres by the Hà Nội People’s Committee. The space showcases nearly a hundred OCOP-certified products and handicrafts with export potential from 20 businesses and cooperatives.

The exhibition includes processed agricultural products such as tea, coffee, cashew nuts, macadamia nuts, lotus products, coconut-based goods and dried fruits, alongside handicrafts like embroidery, silk, bamboo and rattan products, interior and exterior decorations, carvings, bags and gifts.

All displayed items are 5-star OCOP-certified, reflecting the craftsmanship and cultural heritage of Việt Nam.

Beyond displaying products, Việt Nam’s pavilion integrates cultural promotion and highlights rural tourism. Visitors can sample products, view multimedia presentations and learn about OCOP items linked to Việt Nam’s rich cultural tapestry.

The event also seeks to foster commercial opportunities in the Italian and European markets.

Participating units hope to expand international distribution channels, gather feedback from global customers and establish partnerships with European trade entities and consumers. 

NA leader receives leader of Singapore’s Sembcorp Development

National Assembly (NA) Chairman Trần Thanh Mẫn on Monday received Lee Ark Boon, CEO of Singapore’s Sembcorp Development and Chairman of VSIP Group, as part of the top legislator’s ongoing official visit to Singapore.

The Vietnamese NA hailed Sembcorp’s investment in 18 Việt Nam-Singapore Industrial Park (VSIP) projects across 13 provinces and cities, which have created jobs for over 300,000 workers in Việt Nam. He described VSIP as an exemplary model of combining modern infrastructure development with effective foreign investment attraction.

Mẫn expressed his pleasure at the strong growth of the Việt Nam-Singapore strategic partnership with strengthened bilateral political trust and cooperation, particularly in economy and trade. He affirmed that Việt Nam highly values the presence of Singaporean businesses and showed his hope to continue cooperating with Sembcorp Group, focusing on projects involving the development of smart, modern, and sustainable industrial park infrastructure and the implementation of clean energy projects.

For his part, Lee said that Sembcorp has been operating in Việt Nam for 28 years and that VSIP has become a symbol of successful cooperation between Singapore and Việt Nam.

As a firm that is active Southeast Asia, Sembcorp found that the Vietnamese Government has created favourable conditions for businesses to invest and operate in the country, said Lee. He committed to continued strong investment in VSIP and other projects in different Vietnamese localities, with a focus on green and high-tech projects. He said he hopes for further support from Việt Nam, especially in developing new value chains for the group.

Welcoming Sembcorp’ss plans to expand investment and develop low-carbon and high-tech industrial park models in Việt Nam, Mẫn emphasised that this initiative aligns with Việt Nam's growth model shift toward industries with high added value and sustainability. The Vietnamese NA Chairman noted that Sembcorp’s investment expansion is in line with the priorities of both nations, pledging that Việt Nam will continue removing obstacles facing foreign investors, ensuring common development and contributing to Việt Nam's economic growth.

The Vietnamese NA will give optimal legal conditions for Singaporean investors, Mẫn said, noting that it has recently adopted several new laws and amendments related to land, real estate business, investment, finance, and budget regulations, aiming to remove bottlenecks and create a favourable environment for foreign investment attraction.

He vowed that the Vietnamese legislature will continue to accompany and back foreign investors and international groups to operate effectively and successfully in Việt Nam.

Bắc Giang looks to hire around 6,300 workers for semiconductor industry

Bắc Giang Province is preparing for significant growth in the semiconductor industry, with an estimated demand for around 6,300 workers in the 2025-2030 period.

The Bắc Giang Industrial Zones Authority estimates that the sector will require 1,200 workers with college-level education or higher, along with 5,100 workers for general roles. This demand is driven by the rapid growth of the semiconductor industry, which is attracting significant investment both now and in the coming years.

Currently three companies in Bắc Giang are involved in semiconductor production, including South Korea-invested Hana Micron Vina and Si Flex Việt Nam and Synergie Cad Việt Nam with French investment. These companies currently employ over 8,000 workers, including 175 foreign experts and more than 700 university graduates.

Despite its strong growth potential, the semiconductor industry in Bắc Giang faces a significant shortage of skilled technical workers.

According to the Deputy Head of the Bắc Giang Industrial Zones Authority, Nguyễn Xuân Ngọc, semiconductor production is a new sector in the region, and therefore, the availability of workers specifically trained in semiconductor technology is limited.

As a result, companies often have to train Vietnamese workers from scratch, even for technical and production roles. After undergoing training, which can take from one to three months, employees can perform tasks, but still require supervision from managers and technical experts. It takes up to six months to a year for workers to become fully independent and proficient.

Human Resources Manager at Hana Micron Vina, Nguyễn Mạnh Chiến, said that the shortage of qualified semiconductor workers is one of the most significant challenges for the company.

The company uses advanced, automated production lines, so the need for skilled staff is high. While basic tasks are covered by a stable workforce, the company urgently requires workers with expertise in semiconductor technologies.

"Hiring skilled labour is critical for the semiconductor industry," Chiến said. "Currently, the province has implemented policies to attract workers from other regions to work in Bắc Giang's industrial zones. These policies are practical and essential for businesses."

To meet the growing demand for skilled labour, Hana Micron Vina has teamed up with Việt Hàn College of Technology to offer courses on semiconductor technology. The first batch of 90 students has been trained, with more courses planned. These sessions are taught by expert engineers and production managers.

The company is also collaborating with the Industrial Technical College to set up another training programme focused on semiconductor technology.

For its part, the Bắc Giang Department of Labour, Invalids and Social Affairs plans to train 3,000 teachers and students in semiconductor and related fields like artificial intelligence (AI), both locally and abroad. By 2030, the goal is to train 3,500 workers with college degrees and over 5,000 with vocational training.

Additionally, the province will provide ongoing training for around 8,500 workers in semiconductor, IT and AI sectors. The department is working with other agencies to propose policies to attract and support the training of skilled workers in these industries.

Acting Chairman of the Bắc Giang Provincial People’s Committee,Mai Sơn, emphasised that the province is witnessing rapid growth in the semiconductor industry, which is crucial to the global economy, especially in the digital era.

With the global semiconductor market projected to reach US$1 trillion by 2030, Bắc Giang is well-positioned to benefit from this surge in demand. However, to fully capitalise on this opportunity, the province must focus on developing a skilled, high-quality workforce that meets the technological demands of the sector.

Recognising the critical importance of the semiconductor industry, Bắc Giang has taken steps to ensure it can meet the needs of investors and businesses in the sector. The local government continues to create favourable conditions to attract and support new investments, ensuring that the region is ready for the next wave of technological advancements and growth in this key industry, Sơn said.

Public investment stocks face challenges

Despite bright prospects due to increased investment disbursement, public investment stocks are experiencing prolonged stagnation and underperformance compared to the broader market.

On November 22, shares of Đèo Cả Traffic Infrastructure Investment JSC closed at VNĐ11,000 a share (US$0.43), marking a significant 29.4 per cent drop from the beginning of the year. Similarly, CIENCO4 Group JSC fell by 18.6 per cent to VNĐ7,600 per share while Construction Corporation No. 1 experienced a 13.5 per cent decline to VNĐ14,000 a share.

Head of analysis at Yuanta Việt Nam Securities Company Nguyễn Thế Minh said that various factors are influencing infrastructure investment stocks. Amid the recent general market decline, the public investment group has been perceived as the least efficient in capital utilisation, which has resulted in limited appeal to investors.

He added that public investment firms face challenges due to their significant financial leverage and slow capital disbursement, which leads to high financial costs and a low return on equity.

Typically attracting financial investors who capitalise on market trends, public investment stocks are bought during upswings and sold when price targets are achieved. Conversely, long-term and dividend-seeking investors tend to steer clear of these stocks due to their lower profit potential.

A key issue affecting public investment firms is the slow progress in land clearance and capital disbursement. Delays in land clearance, often due to compensation issues and the risk of cost escalation, pose significant challenges.

Moreover, many projects have been stuck in bureaucratic processes since late 2023. Audit and inspection issues have also impeded project implementation as investors proceed with caution.

Currently, stocks in the public investment industry are not expected to decline significantly but rather gain momentum in the final stages of the year, as many large projects are being pushed for disbursement.

"The uptrend may be on the horizon for this group in the near future, as it still holds its own fundamentals. However, investors should choose stocks of companies with strong internal capital sources, minimal financial leverage, higher capital efficiency leading to better profits," said Minh.

Many national infrastructure projects are evolving rapidly. For example, in the eastern North-South Expressway Phase 2 project, key components like Bãi Vọt - Hàm Nghi Expressway and Vũng Áng - Bùng Expressway have disbursement rates of 89 per cent and 87 per cent respectively.

Progress on the Long Thành Airport project is also notable, with 99 per cent of handover and clearance plans completed and construction of the passenger terminal package advancing over 30 per cent, aiming for phase 1 operations by 2026 or potentially by 2025 according to the Prime Minister's optimistic timeline.

Airports Corporation of Việt Nam (ACV) has invested $4.23 billion in component 3 (phase 1) of the Long Thành Airport project, with $2.43 billion from self-owned capital and $1.8 billion from commercial loans. ACV and its contractors are recognised for their continuous construction efforts to expedite project completion.

Vietcombank Securities Company (VCBS) views public investment as a sector to watch in 2025, with many projects nearing completion.

Đèo Cả Pass is expected to see continued growth due to approved fare increases at its toll stations and improved traffic flow from infrastructure projects.

VCBS projects Đèo Cả Pass to achieve significant revenue and profit growth in 2024, with potential for further improvement in construction operations from 2025 to 2027.

Vinaconex holds long-term growth potential, notably due to substantial construction backlog and recent project wins. The Government's commitment to accelerating public investments is set to benefit the company, particularly in projects like the North-South Expressway and Làng Thành Airport, contributing to its revenue growth.

Cienco 4 is also expected to perform well in 2024-2025, driven by improvements in the construction segment and potential growth in the BOT segment as toll prices and traffic volume increase. VCBS has forecast positive revenue and profit growth for Cienco 4 in 2024. 

More efforts needed in waste recycling

Waste should be considered a resource, which requires policies and mechanisms to help make waste treatment a part of Việt Nam’s future circular economy model, said representatives from local communities, scientists and policymakers.

According to statistics from the Ministry of Natural Resources and Environment, urban areas generate approximately 38,000 tonnes of household waste daily, while rural areas contribute around 32,000 tonnes. Rapid urbanisation in recent decades, accompanied by robust economic growth, has seen the country struggling to deal with the ever-increasing amount of waste generated at a projected growth rate of 10-16 per cent annually. Of which, industrial sectors add around 25 million tonnes a year.

A report from the Ministry of Industry and Trade said that, by the year 2025, Việt Nam’s 29 coal-fired power plants will have produced nearly 250 million tonnes of ash and slag, reaching 425 million tonnes by 2030. This tremendous amount of waste needs vast land areas for storage and treatment, along with waste generated from agricultural production, livestock farming and others. Notably, the Southeast Asian country remains one of the world’s notorious plastic polluters, releasing 1.8 million tonnes of plastic waste into the environment every year.

Nguyễn Thị Việt Nga, Deputy Head of the Hải Dương Provincial Delegation to the National Assembly, said that communities in rural areas lack proper waste collection equipment and treatment facilities, forcing people to stockpile waste in large quantities Some border zones between local administrations have become open dumping grounds. Meanwhile, urban centres face an increasing waste volume as collection and treatment systems remain woefully inadequate and inefficient, leading to widespread environmental degradation.

Professor Nguyễn Hữu Dũng, Director of the Institute for Urban and Industrial Environment of Việt Nam, said the country heavily relies on landfills, followed by composting and incineration for waste treatment. However, numerous issues remain within the current legal framework that governs waste transfer and treatment. Other challenging issues for the sector included its reliance on the state’s handouts and difficulties in waste treatment fees.

Dr Hoàng Dương Tùng, former Deputy Director General of the Vietnam Environmental Administration, said that many local governments still prefer incineration due to the complexity of transforming waste into useful resources. Despite the technical guidance from the Ministry of Natural Resources and Environment on recycling technologies, local implementation remains challenging. The Environmental Protection Law's mandate of waste segregation at the source starting January 1, 2025, will likely face numerous challenges.

Professor Bùi Thị An, former National Assembly Delegate and former Director of the Institute for Natural Resources, Environment and Community Development, highlighted the need for mechanisms to encourage businesses to take part in building modern waste treatment as a part of the circular economy.

She said that, similar to wearing helmets, something that once was uncommon, learning how to separate and treat waste responsibly can also become a habit with appropriate education and penalties.

The National Assembly’s Deputy Phạm Văn Hòa from Đồng Tháp Province said that the government should introduce additional preferential policies to encourage the private sector to take part in waste recycling, along with public awareness campaigns to promote waste segregation. 

‘ESG Store’ launches in HCM City to promote green economy

The ‘ESG Store’, an initiative aimed at advancing sustainable business practices, has opened at Vincom Plaza Cộng Hòa in HCM City's Tân Bình District.

The 'ESG (Environment, Society, and Governance) Store' promotes environmentally sustainable products and corporate social responsibility.

The initiative aims to support sustainable development in sectors like agriculture, tourism, and healthcare while preserving national culture.

The ‘ESG Store’ will offer a curated selection of high-quality, safe products, including organic goods from traditional craft villages in Việt Nam.

The scope of the project will extend beyond Vincom Plaza Cộng Hòa to include Vincom Plaza locations across 63 provinces nationwide.

Speaking at the launch on Sunday, Vương Đình Soái, chairman of ESG Green Store Investment Development Joint Stock Company, said the initiative aims to inspire businesses to embrace green startups that promote local agriculture and sustainable development.

Committed to fostering a green economy, it seeks to position Việt Nam as a leader in sustainable development globally.

The inauguration event was held as part of the “Việt Nam Green Movement,” a project by the ESG Green Store Investment Development Joint Stock Company in collaboration with the HCM City Nature and Environment Protection Association and Tân Bình District Red Cross Society.

The project seeks to involve the community and businesses in creating 'green stores' that use locally sourced agricultural products and promote sustainable practices.

It will include events to encourage sustainable business methods among enterprises.

Experts highlighted that promoting green growth is vital for economic development and national competitiveness in a globalised world.

Major enterprises should adopt ESG criteria for significant progress, as ESG is a benchmark for sustainable development and many of Việt Nam’s trading partners have strict requirements, they recommended.

However, many Vietnamese companies struggle to balance growth with environmental and social responsibilities amid rising costs. 

Positive short-term signals emerge in Việt Nam’s stock market

The VN-Index recovery last week brought short-term positivity, supported by favourable macroeconomic factors. However, market liquidity remains low, and risks persist. 

Việt Nam’s stock market experienced a week of positive recovery as the VN-Index surpassed the 1,250-point threshold. 

By the close of the week, both the VN-Index and the HNX-Index recorded gains, rising by 1.82 per cent to 1,250.6 points and 1.5 per cent to 224.64 points, respectively. 

The average daily trading value across the market last week was just over VNĐ10.13 trillion (US$406.3 million), marking a nearly 17 per cent decrease. This is the lowest weekly liquidity level since May 2023.

Over the past eight weeks, the average daily trading value on the Hồ Chí Minh Stock Exchange (HoSE) has not exceeded VNĐ15 trillion, according to Fiintrade analysts. 

Prolonged low liquidity in the stock market, coupled with rising valuations in other asset classes like real estate, foreign currencies, and cryptocurrencies, has raised concerns that capital is being diverted away from equities. 

Phan Tấn Nhật, Head of Analysis at Saigon-Hanoi Securities (SHS), described the VN-Index’s trajectory as largely positive. The index has surpassed the downward trendline and is targeting the 1,255–1,260-point range (corresponding to the 200-day moving average and the 2023 peak). However, this range is also a strong resistance zone, with the nearest support level identified at around 1,240 points. 

“While the VN30 index is showing signs of short-term declines, the VN-Index has maintained a broad accumulation channel throughout the year, fluctuating between 1,200 and 1,300 points,” Nhật observed. 

He added that the VN-Index’s potential to return to the 1,300-point level is supported by attractive valuations relative to Việt Nam’s economic scale and projected GDP growth of 6.5–7 per cent for 2025. 

Similarly, Đinh Quang Hinh, Head of Macroeconomics and Market Strategy at VNDIRECT Securities, highlighted the positive momentum as domestic indices sustained their recovery, with the VN-Index reclaiming the 1,250-point mark. 

According to Hinh, the market’s rebound has been supported by both domestic and international economic trends. A cooling of exchange rate pressures, reflected in the US Dollar Index (DXY) dropping to around 106, came after the Japanese yen strengthened amid expectations of interest rate hikes by the Bank of Japan following inflation exceeding 2 per cent. 

Domestically, interbank interest rates fell below 5 per cent following supportive measures by the State Bank of Vietnam. Additionally, credit growth surpassing 11 per cent as of November 22 bolstered expectations for annual credit growth of 14–15 per cent, lending support to banking stocks in the final month of the year. 

Positive developments included the National Assembly’s decision to reinstate a 5 per cent VAT rate for fertilisers and renewed net buying activity from foreign investors, which fuelled broad-based recovery across multiple sectors. 

Sustainability boosts resilience in green and digital revolution

Companies committed to sustainable business practices could significantly enhance their resilience, capitalising on opportunities emerging from the global green transformation and digital revolution.

The information was shared at the award ceremony of Top 100 Sustainable Businesses in Việt Nam (CSI 2024), themed "Enterprises Rising in the Green Era held in Hà Nội on Friday evening.

In an era marked by rapid, unpredictable changes, unprecedented challenges are emerging. The undeniable reality facing the business community is the imperative to embrace sustainable development and digital transformation.

The event, organised by the Việt Nam Business Council for Sustainable Development (VBCSD) under the Việt Nam Chamber of Commerce and Industry (VCCI), marked the successful culmination of the ninth consecutive year of the programme, a continuous effort to recognise, promote, evaluate and encourage businesses to embrace sustainability. Innovation and sustainable development are no longer optional - they are essential for the future.

Phạm Tấn Công, Chairman of VCCI and Head of the Steering Committee for the 2024 Sustainable Enterprise Programme, emphasised the vital role of businesses in driving national sustainable development as Việt Nam enters a new era. After nearly four decades of innovation, Việt Nam has accumulated sufficient strength to seize the opportunity to become a high-income, developed nation by 2045.

“To capitalise on this potential, both the Government and the business community must transform," Công said.

"This requires breaking through institutional bottlenecks and adopting new business strategies. Businesses must focus on innovation, fostering sustainable, humane and creative models that contribute to social progress and the prosperity of the people.”

He said companies that consistently adopt sustainable business models will be better equipped to adapt, tackle these challenges, and seize opportunities from green and digital transformations.

In light of the rapidly changing global landscape, Việt Nam must embrace sustainable development, a green economy, the circular economy, and digital transformation to remain competitive. Geopolitical shifts, economic changes and technological advances, particularly the Fourth Industrial Revolution, are creating new challenges that must be met with constant innovation.

Vietnamese businesses must leverage these opportunities to drive the nation's growth and competitiveness.

In 2024, nearly 500 enterprises from across the nation, representing various sectors and sizes, participated in the Sustainable Enterprise Programme. This year, 142 businesses were selected for official evaluation.

Notably, the number of first-time participants grew significantly, with domestic enterprises making up 62 per cent of applicants and new entrants accounting for 35 per cent. This indicates a shift in both awareness and action within the Vietnamese business community, reflecting a growing commitment to sustainable practices.

The CSI 2024 Index has been updated to align with international commitments and recent changes in Việt Nam's legal framework. With 153 indicators, 62 per cent are compliance-based and 38 per cent are advanced indicators, covering a comprehensive evaluation of businesses on economic performance, corporate governance, social impact and environmental sustainability.

The emphasis on compliance indicators demonstrates that sustainable business practices are not out of reach for companies - by adhering to legal requirements, businesses can lay a strong foundation for sustainability.

Nguyễn Quang Vinh, Vice President of VCCI and Chairman of VBCSD reiterated the importance of strengthening corporate governance to enhance businesses’ "internal strength."

This, in turn, helps companies integrate sustainable strategies into their operations, improving their competitiveness and resilience in today’s volatile environment.

Vinh reflected on the nine-year journey of the CSI programme. The programme has not only helped businesses recognise their sustainable values but also driven innovation in their business models.

This progress is a vital step toward Việt Nam’s goal of becoming a high-income, developed nation by 2045. The continued application of the CSI Index will support businesses in refining their governance practices, and VCCI will intensify efforts to promote this initiative within the domestic business community.

"Innovation is the key to unlocking new value in every business activity. The recognition and support from the business community will continue to motivate us to drive sustainable business practices and enhance the CSI programme’s impact in the years to come,” he added.

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