Việt Nam’s National Innovation Centre (NIC) in Hòa Lạc Hi-Tech Park, Hà Nội, uses ABB's energy management solutions and smart building technology to save energy.

NIC plays a key role in connecting the country’s domestic technology ecosystem with global networks, helping accelerate the country’s position as a regional innovation destination.

Built to the highest global standards by the Ministry of Planning & Investment, the 4.96 hectare site provides an international conference centre and smart building office space for investment funds, major technology companies, and start-ups and SMEs.

The NIC prioritises eight industrial sectors, including smart factories, smart cities, hydrogen, semiconductors, environmental technology, medical devices, digital communications, and cyber security.

Providing smart buildings for sectors driving economic growth is an important part of progress towards net zero emissions targets. Building automation and energy management systems can increase energy efficiency by 25-67 per cent, reducing operating costs and greenhouse gas emissions and improving workplace wellbeing.

ABB Vietnam, Vice President of Electrification, Đoàn Văn Hiển, said: “This exciting project is supporting the government’s net zero objectives and providing safe, smart, sustainable electrification for the country’s nationally important buildings. ABB's innovative, energy-efficient solutions play a crucial role in making NIC Hòa Lạc a smart building, cutting operational costs, and ensuring a safe working environment for its occupants.”

The ABB Ability™ Energy Manager enables the NIC team to monitor and optimise energy consumption and CO2e, contributing to operational cost savings and sustainability goals. The smart digital solution provides real-time data and predictive insights that enable users to make smart decisions and operators to make timely maintenance plans.

The digital platform connects with ABB’s smart power supply solutions for the National Innovation Center campus. These include an innovative System pro E Power main distribution switchboard solution that ensures the highest reliability and safety for the building and its occupants, as well as smart circuit breakers, multi-function meters and contactors.

ABB Vietnam has a solid track record in providing power solutions for smart buildings in the country, supporting iconic projects such as the National Assembly Office, the Ministry of Foreign Affairs, the Presidential Office, the Army Television Tower, and Vincom Landmark 81 – the tallest building in Southeast Asia. 

Green development gains momentum in VN's listed business community

The shift towards green development within the listed business community has become increasingly apparent.

The Government's strong commitment to achieving net zero emissions by 2050 has spurred the promotion and dissemination of the green development trend from the central Government to localities, the business community, and investors.

Specifically, the transition to green development in the listed business community has become more evident in recent years.

In 2022, Việt Nam Dairy Products Joint Stock Company (Vinamilk) took the lead as a pioneer among listed enterprises by implementing greenhouse gas inventory according to ISO 14064 standards for its factory and farm systems, as part of its sustainable development strategy.

Vinamilk has successfully implemented numerous initiatives related to the circular economy, including promoting the use of green energy in production activities. Currently, all of Vinamilk's farms have installed solar energy systems. The company has also increased investments in environmentally friendly technology and focused on biodiversity, particularly through tree planting to offset greenhouse gases.

In 2023, Gemadept Joint Stock Company achieved an important milestone as a pioneer in implementing environmental, social, and governance (ESG) programmes and greenhouse gas inventory in the mining, port exploitation, and logistics sectors in Việt Nam.

Gemadept collaborated with the British Standards Institute (BSI) to provide training and report on greenhouse gas emissions according to international standards ISO 14064-1:2018 at Nam Đình Vũ and Gemalink ports. These activities aided Gemadept in reviewing and optimising their production and business activities, leading to more efficient use of energy and water, as well as improved prevention and management of operational risks.

Moving forward, Gemadept plans to continue conducting greenhouse gas inventories at other ports within their port system. They will also develop a roadmap to reduce emissions, aligning with the Government's commitment to carbon neutrality.

Vinamilk and Gemadept are not the only companies that have clearly defined their green and sustainable development strategies in recent years, particularly after committing to achieve "net zero" carbon emission by 2050. Furthermore, an increasing number of businesses are now issuing separate sustainability reports in addition to their customary annual reports.

According to the Organising Committee of the Việt Nam Listed Companies Awards, the number of companies preparing separate sustainable development reports and advancing to the final round has slightly increased from 19 in 2022 to 21, representing an increase of over 10 per cent. This trend continues the upward momentum observed in previous years.

The sustainable development reports of Vietnamese businesses have introduced several groundbreaking points. For instance, Bảo Việt Group became the first Vietnamese company to reach the final round of evaluation for its sustainable development report, incorporating an ESG assessment based on Dow Jones' international standards. Similarly, Gemadept became the first Vietnamese company to utilise greenhouse gas emissions inspection services from an ISO14064-certified unit.

Moreover, Vietnamese businesses are adopting various information disclosure frameworks beyond the Global Reporting Initiative (GRI), such as the Carbon Disclosure Project (CDP). Some companies have also made commitments to specific Net Zero goals with defined timelines, like Vinamilk and Gemadept, in terms of disclosing greenhouse gas emissions information.

There is an increasing number of companies adopting the ESG committee model under their board of directors. This reflects the growing attention that boards are giving to ESG issues.

According to Trần Anh Đào, deputy general director of the HCM Stock Exchange (HOSE), green growth, green development, and addressing climate change are trends shaping the global economy's future.

In Việt Nam, the green agenda has garnered significant interest and is being promoted and embraced at the central, local and business levels. Good corporate governance is essential and should be aligned with environmental impact management and social responsibility. This factor plays a crucial role in evaluating businesses for investors, especially foreign investors, partners, and stakeholders.

In fact, there is increasing "pressure" for green development in the financial market. During the 2022-23 period, many institutional investors are demanding more serious implementation of ESG practices from the businesses they invest in.

Don Lâm, general director and founding shareholder of VinaCapital Group, stated that many banks and international investment funds now consider ESG standards increasingly important in their investment decisions. Consequently, projects and businesses that do not meet ESG standards may face difficulties in accessing capital. Additionally, consumers are increasingly inclined to support sustainable and transparent companies.

Dominic Scriven, chairman of Dragon Capital Vietnam Fund Management Company, mentioned that both domestic and foreign customers are urging the fund to comply with ESG principles in its investments. Customers seek specific information about Dragon Capital's actions, strategies, and progress measurement.

However, funds face challenges in measuring emissions across their portfolios due to the limited number of companies doing so. As a result, Dragon Capital has to engage a foreign company to assess the emissions of its portfolio by comparing its holdings with international companies in the same industry. This presented a significant challenge for Dragon Capital.

Evaluating and measuring the environmental impact of investment portfolios not only helps companies understand ESG-related risks better but also meets the increasing demands for transparency and social responsibility from customers. To attract high-quality and long-term capital from investors and financial institutions, ESG and green transition investments should be viewed as opportunities rather than costs, said Scriven. 

Lending rate forecast to be cut by 1-1.5pp in 2024

There will be little room for further reduction in deposit interest rates in 2024 as they have dropped deeply to pre-COVID-19 levels, while the lending interest rate can still be lowered by 1-1.5 percentage points next year, Vietcombank Securities (VCBS) forecast.

Under a newly released report, VCBS said compared to the end of 2022, the average deposit interest rate in the banking system has decreased by 2-2.9 percentage points, depending on terms. However, the decline has not been fully reflected as the cost of deposit mobilisation has only decreased by 0.1 percentage point from the peak.

According to VCBS, the deposit interest rate level currently drops deeply to the pre-COVID-19 level and there is little room for further reduction. However, during the period of economic recovery, maintaining low interest rates will be a priority. At the same time, keeping a low deposit interest rate for a long time is also a necessary condition to pull the lending interest rate down.

Besides, the handling of corporate bonds requires a lot of capital resources and a low interest rate will be a prerequisite to faster handling of the bonds.

According to VCBS, by the end of the third quarter of 2023, the average lending interest rate recorded on the financial statements of listed banks decreased by about 0.6 percentage points compared to the peak in the first quarter of 2023. However, lending interest rate is still about 1.6 percentage points higher than the bottom recorded in the fourth quarter of 2021.

Specifically, after the State Bank of Vietnam (SBV) lowered its policy interest rates four times, deposit interest rates decreased rapidly. Actual lending interest rate has also gone down by about 2-2.5 percentage points for new loans. However, the interest rate applied to outstanding loans is still high at more than 10 per cent per year.

VCBS expects the lending interest rate will decrease by another 1-1.5 percentage points in 2024. In particular, banks will consider lowering interest rate for some groups of firms which have good business prospects, with an aim to restructure debts and support customers through difficult times.

However, experts forecast that banks will be more cautious in lending as their net interest margin (NIM) is on the decline and bad debt is on the rise. Therefore, VCBS believes that there will be a difference in lending interest rate reduction.

Besides, the group of private banks will drop the rate more sharply than the group of State-owned banks due to a rise in late debt repayment. VCBS expects lending interest rates of private banks will improve in the near future when customers return to repay debts.

Trần Hoài Nam, deputy general director of HDBank, also said there is currently no room to reduce deposit interest rates, while lending interest rates will gradually decrease until the first quarter of next year.

However, it is difficult to make a long-term forecast for the rate after that time, as it depends on domestic and world macro-economic fluctuations, Nam said.

Indian firms survey tourist destinations throughout Ba Ria-Vung Tau

As many as 11 travel operators from India surveyed tourist destinations in Vung Tau City in the southern province of Vung Tau on December 20.

During the course of their stay, the delegation visited the Museum of Ancient Weapons, the Statue of Jesus Christ on Tao Phung Mountain, and Ho May Park.
They also attended a conference on tourism promotion aimed at introducing destinations in India as well as Vietnamese coastal provinces.

The Indian businesses are expected to continue to survey tourism services and attractions in the Ho Tram area in Xuyen Moc district on December 21.

These firms are large businesses in India, including those specialising in tapping the Meetings, Incentives, Conferences & Exhibitions (MICE) tourism.

The famtrip, along with a tourism promotion workshop, are expected to create a wealth of opportunities for Indian and Ba Ria-Vung Tau tourism enterprises to strengthen connectivity.

According to Google's market trend tracker tool, the number of India’s search volume for Vietnamese tourism increased by 30 times compared to the same period from last year, with Ba Ria-Vung Tau being one of the destinations that Indian tourists are most interested in searching for.

Last year, a number of Indian travel companies came to the locality to conduct surveys aimed at bringing Indian tourists to resorts in Vietnam, including The Grand Ho Tram, Melia Ho Tram, Vias, ibis Styles Vung Tau, Malibu Hotel, and Vung Tau Intourco Resort.

Vietravel Airlines plans to expand flight network to Japan next year

Vietravel Airlines, a subsidiary of tour operator Viettravel, has held a meeting with representatives of Kagawa and Fukushima prefectures of Japan to share a plan to expand the flight network connecting Vietnam's tourist cities with the two Japanese localities.

General Director of Vietravel Airlines Nguyen Minh Hai said the meeting is not only an important step in promoting the relationship between Vietravel Airlines and Fukushima and Kagawa prefectures but also a strategic element of the flight network expansion plan which will be carried out next year in the Japanese market by the airline and Vietravel Holiday.

The Japanese representatives said the flight network expansion to these localities will bring many benefits to customers, while also contributing to the development of the aviation and tourism industries in the two countries, adding that Fukushima and Kagawa boast popular tourist destinations along with strong economies.

Founded in late 2019, Vietravel Airlines conducted the first commercial flight on January 25, 2021, becoming the first travel airline in Southeast Asia and the fifth commercial carrier in Vietnam.

The airline's flight network covers many popular tourist destinations in Vietnam such as Da Nang, Phu Quoc, Nha Trang, Quy Nhon and Da Lat, and Bangkok (Thailand). It also operated charter flights to Daegu and Muan (the Republic of Korea), and Macau and Sanya (China).

Vietravel Airlines plans to expand its flight network to major tourist cities in Japan next year.

Vietnamese, Chinese firms sign cooperation document in farm produce, food

The Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade (MoIT) and the Department of Commerce of China’s Yunnan province organised a conference on trade promotion and economic cooperation in Hanoi on December 20.

Three cooperation documents between Vietnamese and Yunnan businesses in farm produce and food were signed on this occasion.

Vietrade deputy head Le Hoang Tai stressed that Vietnam's joining of new-generation free trade agreements (FTAs) has created favourable legal frameworks for its economic and trade ties with countries worldwide to grow further.  

He cited statistics by the General Department of Vietnam Customs showing that trade between Vietnam and the neighbouring country reached 175.6 billion USD last year, an increase of 5.5% from 2021. In the first 11 months of 2023, the revenue was estimated at 155.8 billion USD, and the whole year’s value is expected to be equal to that of 2022.

However, he noted that economic and trade relations between Vietnam and Yunnan have yet to match the potential of both sides, as two-way trade stood at only 3.2 billion USD last year, and 2.2 billion USD in the first 10 months of this year.

According to the Yunnan Department of Commerce, Yunnan mainly exports coking coal, fertilizer, electricity, electrical machinery and equipment, chemicals and agricultural products to Vietnam, while importing yellow phosphorus, tropical fruits, wood products, peeled boards, medicinal herbs, fresh cassava, cassava starch, and agro-aquatic products from the Southeast Asian nation.

Challenges and opportunities for exports in 2023 and next year

Exports are one of the three important pillars of economic growth alongside investment and consumption, with these recording double-digit negative growth since the first quarter of the year, with a fall of up to 11.9% compared to the same period from last year.

This figure accurately reflects the difficult situation faced in domestic production when the processing and manufacturing industry, which always accounts for 85% to more than 90% of the country’s total export turnover, has also declined sharply since late 2022 and early this year.

Amid key export products heavily depending on large markets such as the United States and the EU, these markets are strongly affected by inflationary pressure leading to tightened spending, reduced aggregate demand, and reduced imports of non-essential consumer goods.

Export of agricultural and food products hits new record

Trade promotion, connection with Vietnamese Trade Offices and Trade Counselors abroad to seek opportunities for market expansion, and making the most of opportunities from bilateral and multilateral free trade agreements (FTAs) to bolster exports are a significant bright spot this year, with positive results being recorded in this year's export activities.

Although agricultural and food product exports, including rice exports to the EU market, are in small volumes, the nation has exported high-quality rice, especially fragrant rice with high value.

Not to mention many importing countries have set high requirements for sustainable development and environmentally friendly production, therefore Vietnamese products must compete more fiercely with exporting countries that have a similar goods structure.

From the actual results of the nation’s fruit and vegetable exports after 11 months, the Vietnam Fruit and Vegetable Association forecasts that fruit and vegetable exports this year are expected to reach US$5.6 billion, a record high for this industry.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said, "The Vietnamese State, Government and Ministry of Agriculture, Ministry of Industry and Trade have negotiated on market opening, and signed many agreements and protocols with China as well as other countries to create favorable conditions for Vietnamese agricultural products to be widely consumed around the world. In addition, Vietnamese farmers and businesses are increasingly receive instructions on how to grow crops that meet international standards, requirements and tastes of importing countries."

According to the Ministry of Industry and Trade's report on the situation of industrial production and trade activities over the past 11 months, total import and export turnover reached more than US$619 billion, down 8.3% on-year, in which export turnover was estimated to be at US$322.5 billion, down 5.9% over last year’s corresponding period.

With a recovery occurring in the final months of the year, the decline in exports for the whole year has narrowed quite a lot compared to the 12% decline seen in the first half of the year.

A notable point in import-export activities this year is that the trade balance of goods recorded a large trade surplus.

Although exports last month improved compared to the previous month and maintained an export turnover of more than US$30 billion in the final months of the year, the trade surplus continued to increase, bringing the 11-month trade balance to nearly US$26 billion.

Export and import challenges for 2024

The Ministry of Industry and Trade, the state management agency in the field of industry and commerce, determined that this is also a big challenge ahead in 2024 when the conditions for "reducing carbon footprint" from import markets becomes more and more strict. Green export promotion is therefore continuously the topic of trade promotion programs at the end of 2022 and into this year in order to find a more sustainable and more effective direction.

​As a bridge for businesses to enter export markets, Vu Ba Phu, director of the Trade Promotion Agency, said that green transformation is an inevitable trend, meaning that the Ministry of Industry and Trade has been focusing on three major tasks that must be done to support businesses, industries, and localities in 2024 and over the following years.

​Vu Ba Phu emphasized that along with improving capacity to meet new standards, relevant ministries and agencies will have to quickly supplement and complete the legal framework, as well as introducing standards and regulations on green transformation in trade promotion.

According to trade experts, in order to appropriately respond to green standards in imports and exports moving forward, businesses need to diversify trading partners, assess risks, make plans for various scenarios, outline carbon reduction strategies, and participate in carbon offset projects.

It is also essential for local business to invest in innovation and technology and engage in industrial co-operation initiatives. Only then will export activities develop sustainably in the time ahead.

Nearly 100 businesses attend Food Industry Product Exhibition Week 2023

The Food Industry Product Exhibition Week 2023 officially opened on December 19 in Ho Chi Minh City, with the event attracting nearly 100 local businesses.

On display at the six-day event are a wide range of consumer goods, dry goods and seafood products, confectioneries, beverages, and clean agricultural products.

Upon addressing the event, Tran Phu Lu, director of Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC), emphasised that food represents one of the four key industries prioritised for development in the southern city, accounting for 14% to 15% of the entire industry's production value.

In fact, food firms have gradually improved product quality by applying new technologies to production activities whilst making use of green, organic, and environmentally friendly ingredients, thereby meeting the high-quality standards set by demanding markets such as the United States, Japan, and Europe.

Especially, local businesses have made continuous efforts in order to achieve Halal certification, thereby bringing Vietnamese goods into the markets of Muslim countries.

Ly Kim Chi, chairwoman of the City Food Association of Ho Chi Minh, pointed that the event has served as an effective communication channel to help businesses introduce their products, build brands, and seek new partners.

During the event, there are a number of seminars, networking sessions, and trade exchanges with foreign partners in a bid to support local firms in developing their key products, building product brands, and getting further involved in the global supply chain.

Animal feed exports soar during 11-month period

Vietnam’s animal feed exports during the 11-month period reached over US$1.11 billion, representing an increase of 7% compared to the same period from last year, according to preliminary statistics released by the General Department of Vietnam Customs.

November alone saw the country’s animal feed exports hit US$98.53 million, marking a decline of 16.3% compared to October, but up 12.6% compared to November, 2022.

China remained as the main importer of the country’s animal feed over the past 11 months, with turnover hitting US$539.75 million, representing a sharp increase of 32.9% against the same period from last year and accounting for 48.6% of the country's total export turnover.

Cambodia ranked second with turnover increasing by 0.9% to reach US$155.55 million, accounting for 14% of total revenue, followed by Malaysia with US$108.65 million, up 30.2% on-year.

Meanwhile, animal feed exports to key free trade agreement (FTA) markets witnessed an upward trajectory with turnover reaching US$915.67 million in the Regional Comprehensive Economic Partnership (RCEP) member markets, an annual rise of 16.6% and making up 82.4% of the total turnover.

The nation exported animal feed products worth US$132.98 million to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) market, marking an increase of 10.2%, and duly accounting for 12% of total turnover.

Elsewhere, animal feed exports to the Southeast Asian market rose by 2.55% to reach US$329.99 in the reviewed period, constituting 29.7% of total revenue.

Toll fees of 41 BOT road projects rise from Dec 29

The Ministry of Transport has approved the upward adjustment of toll fees of 41 build-operation-transfer (BOT) road projects, resulting in toll hikes at 47 tollgates, with effect from December 29, 2023.

This decision follows the prior requests made by the Department for Roads of Vietnam and the investors behind the BOT projects.

According to the Department for Roads of Vietnam, these BOT projects have been operational since 2016 and were scheduled for periodic toll fee increases between 2019 and 2022. However, delays in implementing these toll fee hikes in recent years have had adverse effects on the financial capabilities and capital recovery of project owners.

As per the signed BOT contracts, toll fees are subject to revision every three years, with an annual increase of 6%, as stated by the department.

In order to implement these toll fee adjustments seamlessly, the Department for Roads of Vietnam will collaborate closely with project owners to work out the specifics of the fee increases, timing of fee revisions, and the tollgates where these changes will apply, ensuring full compliance with the provided price ceiling and current regulations.

To support businesses, the Government has directed the Ministry of Transport to refrain from raising toll fees periodically since 2019.

Livestock sector aims for 5% growth in 2024

The Department of Livestock Production has set its sights on achieving a 4-5% increase in production value next year, contributing to around 28-30% of the nation’s overall agricultural output.

This target was discussed at a conference held in Hanoi on December 19. Deputy Minister of Agriculture and Rural Development Phung Duc Tien outlined specific objectives for various livestock products in 2024.

These include a 3.8% increase in the production of all types of fresh meat, amounting to 7.89 million tons, a 4.0% rise in pork production to reach 4.87 million tons, a 3.1% uptick in poultry meat output at 2.31 million tons, a 3.7% boost in egg production, totaling 19.68 billion eggs, and a 6.7% surge in milk production, reaching 1.28 million tons.

Tien emphasized the importance of collaborative efforts within the sector to attain these goals. The department will continue to implement industry restructuring in line with the 2021-2030 Livestock Development Strategy.

Despite facing challenges such as fluctuating feed prices, unstable livestock selling prices, and competitive pressures from imports, Vietnam’s livestock industry remains resilient. Effective disease control measures have been implemented, and while consumer demand has slightly decreased due to inflation, the sector has maintained stability.

Pham Kim Dang, deputy director of the department, said pig farming is showing positive results, but challenges persist, including low pork prices, high biosecurity costs, and fluctuating feed prices. Cattle farming remains stable, with minor fluctuations in herd sizes.

Data from the department showed that the national pig population is expected to increase by 4.2% to 30.3 million, while the cattle population may expand by 2.6% to 558.6 million. This year, overall meat production is anticipated to increase by 3.5%.

Nonetheless, challenges still exist within Vietnam’s livestock industry, encompassing issues related to product traceability, supply chain organization, and biosecurity. The sector is gearing up for future collaborations with veterinary agencies to tackle diseases and enhance global monitoring of feed prices, ensuring sustainable and high-quality livestock production.

In the upcoming months, the industry will focus on implementing disease prevention measures, particularly for foot-and-mouth disease, avian influenza, and contagious skin diseases in cattle.

Future strategies for Vietnam’s livestock sector involve enhancing monitoring channels for supply and global feed prices, mitigating the impact of high input material costs, and ensuring the quality of livestock feed.

Regional economies to see slight growth next year – report

The Mastercard Economics Institute (MEI) has expected modest growth across Asia Pacific in 2024, although regional economies may stabilize and key drivers like exports and tourism approach pre-pandemic levels.

The region’s outlook, detailed in the report “Economic Outlook: Balancing Prices & Priorities”, forecast upward trends in economic performance in Singapore, Malaysia, the Philippines and Vietnam.

Still, China, Japan, Australia, and New Zealand may face slowdowns.

Consumer spending patterns are set to shift, with Asia Pacific households allocating more to discretionary items like travel and entertainment. This follows years of high inflation, where essentials dominated budgets, according to experts.

“2024 is set to be a year of recalibration as consumers rebalance their wallets. And what the data shows is that people remain eager to travel and dine out, although levels vary from market to market,” said David Mann, Asia Pacific chief economist at Mastercard.

Another trend predicted is a rebound in consumer goods spending, exceeding 2023 levels and reversing the post-pandemic prioritization of services. Vietnam’s real consumer spending in 2024 may expand by 6.5% year-on-year.

The tendency is expected to benefit the region’s manufacturing sector, leading to a convergence in performance between manufacturing and services.

China’s outbound travel recovery will be in the spotlight next year. Expanded group travel options and eased visa restrictions will encourage Chinese to travel abroad, especially destinations in Southeast Asia, Northeast Asia, North America and Europe.

Enterprises encouraged to boost sales via live stream, online methods

Some businesses are promoting sales through social networks and e-commerce channels at the current time, especially period before the Tet holiday.

Recently, online sales through live stream form at Ben Thanh market in District 1, a live stream broadcast to promote One Commune, One Product (OCOP) at Can Gio District and so on have brought much revenue.

The above information was mentioned at the “Driving Forces of Economic Growth in 2024- Stimulating domestic consumption demand” Forum on December 19.

 Businesses are promoting sales through social networks and e-commerce channels at the current time, especially period before the Tet holiday.
 
At the event, General Director of Kido Group Tran Le Nguyen said that during the past time, merchants have suffered from difficulties in the slump and slow-down purchasing power at wholesale markets and traditional markets while Asian countries, notably China have caught up with the trend of online shopping via TikTok.

Following the trend, Kido has collaborated with TikTok to establish a channel to support merchants to increase their revenue from online and live stream shopping.

In reality, Ben Thanh market has also applied technology to sell products online. Apart from the cooperation with TikTok, the enterprise is going to collaborate with the Ho Chi Minh City Department of Industry and Trade to boost trading via e-commerce platforms at other traditional markets, aiming at traditional market revitalization and stimulating domestic consumption demand.

Previously, the Ho Chi Minh City Business Association called for sectors to discuss and exchange, including TikTok representatives and experts to find methods to sell more products and to seek solutions, thereby showing the effectiveness of digital transformation to merchants.

General Director of Kido Group Tran Le Nguyen also shared that the enterprise would open training sessions with the participation of key opinion leaders (KOL), key opinion consumers (KOC) and so on to help merchants sell more products. However, it is important to have appropriate policies and strong orientations from functional agencies and city leaders.

Banks intensively inject low-cost capital into market at year’s end

Capitalizing on the year-end seasonal factors, banks are strategically rolling out affordable credit options, including some with interest rates as low as zero percent, to penetrate the market and boost credit growth.

In November 2023, credit in Ho Chi Minh City experienced a notable 1.3 percent rise from the previous month, becoming one of the highest growth rates observed throughout the year, thanks to seasonal factors.

In an effort to assist customers in easily accessing funding during the year-end peak period, BVBank has recently launched a VND3 trillion consumer demand stimulation loan package. This package offers interest rates starting at just 5.5 percent per annum for individual customers and will be available until December 31. The program is applicable to both new disbursements and timely refinancing based on existing agreements. Whether customers require short-term or medium- to long-term capital for business operations, agricultural production, investment in machinery and equipment, or personal consumption needs such as property transactions, new construction, renovations, or general consumer spending, they can benefit from the attractive interest rates offered by this loan package.

BVBank has announced that, alongside their efficient loan processes and swift application approval, this timely opportunity allows customers to promptly obtain capital to support their business operations during the crucial year-end period.

Similarly, aiming to provide affordable capital support for individuals and businesses during the year-end of 2023 and the 2024 Lunar New Year, Sacombank has recently presented a loan package of VND10 trillion for enterprises to accelerate their production and business activities with the lowest interest rate of only 3 percent per annum. Specifically, from now until the end of December 2023, businesses involved in production and business activities can avail themselves of the following interest rates: 3 percent per annum for a one-month term, 4 percent per annum for a two-month term, 5 percent per annum for a three-month term, and 5.5 percent per year for a four- to 12-month term. Furthermore, for the VND1-trillion loan package catering to medium to long-term business production and the purchase of vehicles for enterprises, Sacombank has adjusted the fixed interest rate to 8 percent per annum for 12 months, and this offer is valid until December 31, 2023.

In December 2023, HDBank introduced a VND10 trillion interest rate incentive program to assist customers nationwide in boosting production and business activities, as well as meeting year-end shopping needs and enhancing their quality of life. As part of this initiative, the VND5 trillion credit package, offered through the "Fresh Loans at zero percent Interest" program, provides a zero percent interest rate for the first month to individual customers seeking new loans or existing customers looking to borrow more. For the subsequent months, the interest rate follows HDBank's existing regulations. For corporate customers, HDBank continues to supplement the incentive package with a scale of VND5 trillion, featuring a 0 percent interest rate for the first month specifically designed for small and medium-sized enterprises (SMEs) and intended for salary and bonus disbursements during the year-end period. In the following months, customers will continue to enjoy a preferential interest rate starting from only 6.7 percent per annum.

According to HDBank's leadership, the VND10-trillion loan package in the final month of 2023 reflects HDBank's practical efforts to alleviate challenges for customers and actively contribute to economic recovery. This initiative is in line with the government and the State Bank of Vietnam's commitment to supporting growth, maintaining macroeconomic stability, controlling inflation, and collaborating to assist businesses and individuals in conducting effective production and business activities and enhancing their quality of life.

Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam – HCMC Branch, noted that as of November 30, 2023, the total outstanding credit in Ho Chi Minh City had exceeded VND3.4 quadrillion, up 1.3 percent from the previous month. Thus, excluding March 2023, credit experienced a 1.37 percent growth due to a temporary halt in capital demand and disbursement activities during the Tet holiday. November 2023 stands out as one of the months with the highest credit growth rates throughout the year.

According to Mr. Nguyen Duc Lenh, the elevated credit growth in November 2023, surpassing the preceding months of the year, can be attributed to the seasonal dynamics. During this period, there is a customary rise in the demand for credit capital towards the year-end and Tet holiday. Notably, the lending program designed to stabilize the market in the region for the 2023 seasonal period recorded a loan volume exceeding VND13 trillion with interest rates ranging from 4 percent to 6 percent per annum.

Figures from the State Bank of Vietnam further reveal that credit disbursements across the entire banking system in November 2023 amounted to approximately VND200 trillion. The cumulative total outstanding credit for the entire banking system reached VND13.1 quadrillion over the first 11 months of 2023.

Commercial banks give businesses more than US$140 billion

Mr. Nguyen Duc Lenh, Deputy Director of the State Bank Ho Chi Minh City branch, yesterday said that as of November 30, commercial banks in Ho Chi Minh City have given a total of VND 3,402,000 billion (US$140 billion).

According to Mr. Lenh, there has been an increase of 1.3 percent in outstanding credit debts compared to the previous month and an increase of 6.04 percent against the same period last year.

Thus, statistically, January and February fell on Tet holidays (the Lunar New Year) so businesses didn’t ask for capital but in March 2023, credit increased by 1.37 percent. November 2023 is also one of the months in which credit has the highest growth rate of the year as November is the time when businesses accelerate for manufacturing goods for the New Year and the Tet holidays. Businesses participating in the market stabilization program asked for over VND13 trillion.

Conference provides key information serving Halal industry development

Experts and representatives from a number of countries, organisations and businesses gathered at a conference in Hanoi on December 20 to share measures in producing and exporting products to the international Halal market, as well as key information to promote the sustainable development of Vietnam’s Halal industry.

Addressing the event, Dr. Ha Minh Hiep, Acting General Director of the Vietnam Directorate for Standards, Metrology and Quality (STAMEQ) said he hopes domestic businesses will optimise the “keys” provided at the conference to promote Vietnam’s integration into the world Halal industry, while countries can depend on these keys to be confident to invest in the Vietnamese Halal industry.

Malaysian Ambassador in Vietnam Dato' Tan Yang Thai said that Halal industry is closely attached to religious practices, making it difficult for Vietnam - a non-Muslim country to approach.

However, he mentioned Australia as an example of a non-Muslim country that successfully develops its Halal industry, and advised Vietnam to be confident to develop this sector.

Director of the Vietnam Certification Centre (QUACERT) Tran Quoc Dung said that the conference demonstrates the Vietnamese Government’s serious attention to the development of the Halal market to serve Muslim countries.

He said he hopes the conference will help promote the cooperation efficiency among parties to serve the Muslim community in Vietnam and the world, paving the way for the Halal industry’s development in Vietnam.

Participants at the event discussed a wide range of issues related to Halal economy, culture and the potential and opportunities for Vietnam, as well as the Halal standard system and the orientations for the building of standards for Vietnamese Halal industry.  

They also gave opinions on new measures to strengthen cooperation and make full use of international resources to increase Vietnamese firms’ capacity to engage in production and supply chains of Halal products and services in the world, and design development orientations for the comprehensive and sustainable growth of the Vietnamese Halal industry.

Within the framework of the conference, the QUACERT and the Institute for Africa and Middle East Studies signed a memorandum of understanding on cooperation in popularising knowledge, standards and certification services and international collaboration in Halal industry among relevant organisations, businesses, students, and agencies.

Programme helps improve Vietnamese youths’ digital business capacity

As many as 20 million Vietnamese youths will receive support to improve their digital business capacity and develop their startups under a programme launched by the Supporting Centre for Youth’s Startup, and the Centre for Enabling Startups and Knowledge Transfer and the Centre for Student Support under the Vietnam National University - Hanoi, in Hanoi on December 20.

The programme, to be carried out from 2024 to 2028, will provide assistance in document, legal procedures, policies, ecosystem and technology for startup projects, and give consultancy to the youths to access resources and high-quality working environment.

Besides, in-depth training courses on e-commerce, digital marketing and strategies to optimise e-commerce will be organised under the programme, helping enterprises outline rational measures to expand market and better competitive edge.

Particularly, highlight of the programme is its support for the youths to develop e-commerce platforms, and expand online business both in domestic and foreign markets.

Speaking at the event, Director of the Supporting Centre for Youth’s Startup Nguyen Phan Huy Khoi affirmed that the programme aims at creating a favourable environment for the development of digital business and startup, and open up opportunities for Vietnamese youths in the context of a promising digital era.

The programme’s support is expected to help Vietnamese youths contribute to the nation’s digital economy, and reach out to the world to affirm Vietnam’s position in the global business map, he added.

Meanwhile, Minister of Education and Training Nguyen Kim Son said that it is an opportunity for students to promote their startup initiatives amidst the nation’s strong digital transformation.

The ministry is working to promote human resources training for key industries like IT, AI and semiconductor design, he said, expressing his hope that students will be interested in these areas and make contributions to the development of the fields.  

According to the organising board, the comprehensive support in intellectual property, human resources, finance, production, sales, and internal management are key factors that help young businesses develop sustainably.

The programme targets to arrange trade promotion for more than 500 projects, helping them join startup network, successfully connect them with more 100 experts, organisations, and investment fund.

Additionally, a series of activities to encourage startup initiatives will be organised at more than 100 universities and colleges across the nation.

Jeju Air launches new air route connecting Seoul with Da Lat

A flight from Seoul of Jeju Air, the Republic of Korea (RoK)'s biggest low-cost carrier, landed in Lien Khuong airport, the central highland resort city of Da Lat (Lam Dong province) on 3:00 a.m December 21, marking the start of a direct route between Seoul and Lam Dong. 

Speaking at the opening ceremony to mark the launch of the new air route, Vice Chairman of Lam Dong provincial People’s Committee Nguyen Ngoc Phuc affirmed that the event helps to strengthen the relationship between Lam Dong and Seoul and other RoK localities, and create new momentum for the province’s tourism development. 

After the first flight, the airlines will operate seven round-trip flights per week on the route to serve travel demand of passengers. Jeju Air is the first Korean airline to operate a direct route to Lam Dong. 

In the first 11 months of 2023, Lam Dong welcomed 363,000 international visitors, reaching 145.2% of the plan, of which Korean visitors accounted for 60%.

In recent years, the province has established twinning relations with a number of districts and cities in the RoK to enhance connections, exchanges, and learn from experiences in culture, tourism, trade, and investment attraction.

According to information provided by Lien Khuong airport, the airport recently welcomed between 30 and 35 flights from the RoK every week.

Specifically, low-cost carrier VietJet Air launched air routes from the RoK’s Incheon and Busan to Lien Khuong, while Pacific Airlines also opened routes from Muan to Lien Khuong and vice versa in the form of charter flights. Each flight carries between 150 and 160 Korean tourists to Da Lat.

Bestowed with year-round cool climate, green pine forests, misty landscapes, and resplendent architectural gems dating back to the colonial era, the resort town of Da Lat in the Central Highlands province of Lam Dong has been a well-known destination both at home and abroad.

Vietnam seeks cooperation opportunities with RoK in new fields

Minister of Planning and Investment Nguyen Chi Dung is paying a working visit to the Republic of Korea (RoK) from December 19-21 to exchange experience with Korean partners on the development of semiconductor, hydrogen, liquefied natural gas (LNG) and green agriculture.

During his stay, Dung had working sessions with representatives from the RoK’s agencies, organisations and businesses to promote cooperation in innovation and technology; and research, exchange experience and attract resources in semiconductor, hydrogen and LNG fields.

He visited a memory chip factory of SK Hynix - the second largest memory chip manufacturer in the world, in Icheon city; an LNG storage facility with capacity of 10.8 million tonnes a year in Boryeong city; the world's largest liquid hydrogen plant of SK Group in Incheon city, and Samsung Electronics' Samsung Digital City in Suwon city.

At working sessions with leaders of SK and Samsung Groups, the Vietnamese minister listened to experiences of formation and development of the factories, expressing his that SK and Samsung will share their experience, and support and accompany Vietnam in developing the semiconductor industry, digital transformation, green energy, green economy, circular economy.

Dung also visited Garak Market – the RoK's first and largest agricultural wholesale market to learn experience to implement a wholesale market model similar to Garak Market in Vietnam so as to build an effective, transparent, professional distribution model and bring more benefits to farmers.

The minister also had a meeting with leaders of the Vietnam Innovation Network in Korea (VINK) to connect and promote collaboration in innovation and technology.

At the meetings, Dung emphasised the Vietnamese Government's commitment to creating favourable conditions for RoK businesses to invest effectively and sustainably, and do long-term business in Vietnam.

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