The first batch of VF 8 electric vehicles manufactured by VinFast, the first Vietnamese electric vehicle (EV) producer, arrived in the US on December 20 as the vessel Silver Queen docked at the Port of Benicia in California.

The company has also received all the necessary certifications to sell the cars in the US, and will begin delivering these vehicles to customers by the end of this month.

The first 999 VinFast vehicles that arrived in the US, after 26 days at sea from Vietnam, are the VF 8 City Edition, a limited edition for the US to enable direct customer experience of VinFast vehicles from 2022.

With all the features of the standard VF 8, the VF 8 City Edition is a platform that connects all aspect of life through modern technology features such as Advanced Driver Assistance System (ADAS) and Smart Services. It will also be updated regularly over the air (FOTA) to improve vehicle functionality and customer experience.

The VF 8 City Edition will have an industry-leading 10-year warranty for the vehicle, 10 years warranty for the battery (unlimited mileage), and 24/7 emergency roadside assistance during the warranty period.

Government leader orders proper solutions to boost green and sustainable tourism

Prime Minister Pham Minh Chinh has underlined the need to devise solutions aimed at removing difficulties and obstacles with a view of promoting the recovery of the tourism industry and attracting more international tourists towards developing a green and sustainable sector.

PM Chinh on December 21 chaired a conference in order to promote the attraction of international tourists to Vietnam, with the event featuring the participation of Deputy Prime Minister Vu Duc Dam, Minister of Culture, Sports and Tourism Nguyen Van Hung, along with leaders of ministries and agencies which was connected online to 63 cities and provinces across the nation.

As part of his opening speech, PM Chinh highlighted tourism as an important economic sector which increasingly contributes to the economies of many countries. This is the development trend of the future through green, sustainable, and environmentally-friendly development.

The Vietnamese cabinet leader said that in 2019, Vietnamese competitiveness increased by four places, rising from 67th to 63rd in the world in terms of tourism attraction. However, the subsequent outbreak of the COVID-19 pandemic crippled global tourism activities.

The Party and State have paid great attention to the topic, issuing many policies aimed at helping the tourism industry swiftly recover, attracting more domestic and foreign tourists, as well as fully opening to tourism activities on March 15, 2021.

Measures include reinstating visa-free entry and exit policies, not requiring COVID-19 vaccination certificates, halting medical declarations for COVID-19 for entry, and not testing for COVID-19 before entry, thereby promoting communication and Vietnamese tourism in diverse forms, especially on digital platforms.

Domestically, there has been plenty of timely support measures implemented to ease difficulties and losses faced by both businesses and workers in the tourism industry and related fields, thereby helping the Vietnamese tourism market to gradually recover, especially domestic tourism. However, the number of international tourists remains limited compared to some countries in the region, PM Chinh pointed out.

He stated that the important event represents a prime opportunity for experts to make plans, raise good ideas and initiatives, and for the Government, ministries, sectors, agencies, and localities to come up with solutions which can remove difficulties and obstacles faced by the sector. This will help the quick recover and attract international tourists towards the development of a green and sustainable tourism industry moving forward.

On the basis of analysis and identification of causes, difficulties and challenges faced by the tourism industry both in the immediate and long term, it remains necessary to propose solutions and tasks in a bid to solve urgent problems, whilst also outlining directions for sustainable tourism development in the future.

In his remarks, Minister Hung said that over the past two years Vietnamese tourism has been the industry hardest hit by the COVID-19 pandemic.

In 2020, the number of international visitors dropped by 80%, while the total revenue from the tourist sector fell by 59% over the same period. In 2021, the number of international visitors endured a decline of nearly 96%, leading to a dramatic plunge in the source of revenue.

As a result, many travel and hotel businesses have been forced to downsize their business, change industries, or even dissolve or go bankrupt.

A large number of workers have therefore been forced to change occupations as their life faced plenty of difficulties.

However, Vietnamese tourism development capacity index in 2021 still increased eight places compared to 2019, ranking 52nd, among the three countries with the highest improvement in the world.

Despite many measures aimed at boosting tourism recovery, the tourism industry has yet to attract many high-quality tourists, with the number of international tourists to the country only reaching about 42% of the set plan.    

Fruit exports set target of US$4 billion next year

With a series of fruit products making inroads into fresh markets, fruit exports are anticipated to rise to US$4 billion next year, according to industry insiders.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, revealed that a series of Vietnamese fresh fruit products such as bananas, durians, and passion fruits have been officially exported to the Chinese market this year.

Furthermore, Vietnamese pomelos and lemons are also permitted to enter the New Zealand market, while fresh longans have been allowed to penetrate the Japanese market.

According to statistics compiled by the General Department of Vietnam Customs, fruit and vegetable exports during the initial 11 months of the year reached more than US$3.1 billion, with exports anticipated to gross US$3.4 billion by the end of the year.

Saw Lean Joo, general director of AGRO QL Joint Stock Company in Ho Chi Minh City, said the demand for processed fruit products remains stable amid the global demand for fresh fruit predicted to rise significantly in December and January next year

Despite this positive outlook, local firms have been advised to improve product quality in a bid to meet stringent standards set by the importing countries

Bien Tan Tai, deputy director of Binh Thuan Department of Industry and Trade, revealed that Binh Thuan dragon fruit are mainly exported to the Chinese market, adding that the consumption of dragon fruit from now until the end of the year will prosper. This comes amid the northern neighbour facilitating the export of Vietnamese agro-forestry and fishery products via border gates and moving to ease COVID-pandemic measures.

With regard to prospects for export markets, Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, forecast that Vietnamese fruit and vegetable exports will continue to enjoy robust growth ahead during the remainder of the year, with an average turnover of between US$250 million and US$260 million per month.

Fruit and vegetable exports have the potential to reach US$3.4 billion this year and US$4 billion next year thanks to the signing of protocols and 15 signed free trade agreements (FTAs), along with the decrease in freight rates, Nguyen noted.

IUU fishing combat requires joint efforts of all coastal localities

The Vietnamese fishery sector has taken strict measures to fight illegal, unreported and unregulated (IUU) fishing over the past five years since the European Commission (EC) issued a “yellow card” warning against Vietnamese seafood.

However, to date, the "yellow card" has yet to be removed, and the sector and local authorities still have to make joint efforts and join hands in combating IUU fishing to deal with violations.

According to the Ministry of Agriculture and Rural Development (MARD), there currently remain cases of Vietnamese fishing vessels infringing on foreign waters, failing to meet the goal of putting an end to IUU fishing before December 30, 2021 as assigned by the Prime Minister.

To date, a total of 104 violating ships with 919 fishermen on board have been arrested by other countries.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that after its delegation’s inspection last month, the EC decided to give Vietnam an additional six months to address existing shortcomings in the implementation of the commission’s recommendations.

This is an important time to decide whether the fishery industry has the "yellow card" removed or not, Tien stressed, proposing the political system and each citizen take drastic actions and well implement the EC’s recommendations.

The MARD has also met with specialised units to carry out tasks against IUU fishing. In its action plan, the ministry will specify tasks for each ministry, sector and unit, and stress the importance of the coordination between competent agencies such as customs, coast guards, and border guards, with the goal of putting an end to IUU fishing before March 31, 2023.

The ministry also emphasised the responsibility of each coastal locality, with the heads of communes, wards and towns bearing the main responsibility in making a list of fishing vessels and their owners that once violated foreign waters to send to the MARD and the Ministry of National Defence for monitoring; and stepping up communications to raise public awareness on this issue.

The MARD will send working delegations to inspect the fight against IUU fishing in each locality, added Tien.

Product diversity important to luring international tourists: PM

Prime Minister Pham Minh Chinh on December 21 asked ministries, agencies, localities and businesses to take into consideration the diversity of the products, markets and supply chains while seeking ways to boost the tourism sector.

Presiding over a hybrid conference in Hanoi that is looking into how to attract more international tourists to Vietnam, the leader stressed the significance of the communications work, innovation, digital transformation and green transition in tourism development.

He urged ministries, agencies, localities and businesses and experts to propose solutions to remove obstacles and set out tasks and solutions to realise the effort on the basis of traditional culture, creating tourism breakthroughs next year.

Nearly 597,000 foreigners visited Vietnam in November, up 23.2% month-on-month, bringing their total number in the first 11 months of this year to 2.95 million, according to the General Statistics Office (GSO).

The country earned some 536.3 trillion VND (21.6 billion USD) from accommodation and catering services, up 56.5% year-on-year, while revenue in the travel and tourism industry was estimated at 22.9 trillion VND, a 4.1-fold increase compared to that of the same period last year.

Test run conducted on elevated section of HCM City’s metro train

A test run was conducted on an elevated section of Ho Chi Minh City's Metro Line No.1 on December 21, according to the city's Management Authority for Urban Railways (MAUR).

The pilot run was carried out on a section stretching nearly 9km, starting from Suoi Tien Coach Station, passing by Vietnam National University - Ho Chi Minh City, Hi-tech Zone Station, Thu Duc Station, and arriving at Binh Thai Station.
During the test, the train stopped to pick up and drop off passengers at the Hi-tech zone Station.

Kazuhiko Nagasawa, Project Manager of Hitachi Company which is the project's contractor, described the event as an important milestone in starting the test operation of the train with mechanical and electrical systems on the line.

In 2023, Hitachi, together with subcontractors, will mobilise all resources to continue the installation and testing of all the systems in the depot, viaduct and tunnel areas, he said, adding it is committed to making every effort to complete the project.

Nguyen Quoc Hien, MAUR’s deputy head, said that in 2023, it will work with NJPT consultants and contractors to accelerate the project implementation, complete the construction, and move to the commercial operation.

The first metro line has 17 Japanese-made trains, each with a capacity to carry 930 passengers, and each train can travel up to 110 kph above ground and 80 kph underground.

All the trains have been tested at Long Binh depot in Thu Duc city since August.

Work began on Ho Chi Minh City’s first metro route in August 2012. It was scheduled to be completed in six years. The project has missed several deadlines and the latest reschedule has it becoming operational in the fourth quarter of next year.

By now, 93.56% of the work has been completed. 

Metro Line No. 1 is expected to cost over 43.7 trillion VND (1.89 billion USD) and is funded with Japanese assistance and Vietnamese counterpart funds.

Opportunities and challenges for Vietnam, Indonesia to boost bilateral trade

President Nguyen Xuan Phuc’s visit to Indonesia from December 21-23 is expected to create new opportunities for Vietnam-Indonesia relations, particularly bilateral trade which is expected to reach 15 billion USD by 2028.

According to the Asian-Africa Market Department under the Ministry of Trade and Industry, Vietnam-Indonesia trade revenue sees positive growth, from 5.5 billion USD in 2015 to 11.5 billion USD in 2021.  

In the first 11 months of this year, it reached 12.8 billion USD, a year-on-year increase of 25%, and is expected to reach 14 billion USD by the end of this year.

The Vietnam-Indonesia Joint Committee on economic, scientific, and technological co-operation has effectively contributed to addressing issues of the two countries’ trade relations during the past time.

Vietnamese enterprises have been actively participating in trade promotion fairs and exhibitions held in Indonesia.  

Notably, Vietnamese processed and manufactured goods exported to Indonesia see the highest export value which accounts for over 60% of Vietnam's total export turnover to Indonesia.

Vietnam mainly exports to Indonesia machinery, equipment, tools, and spare parts; computers, electronic products, and components; phones and accessories; means of transport and spare parts; other common metals and products; and textiles.

Other Vietnam's exports include construction materials, especially iron, steel, and products made of iron/steel. 

Regarding agricultural products, Vietnam still has advantages in exporting rice, coffee, cashew nuts, high-tech vegetables and fruits, organic vegetables, and seafood.

Tran Phu Lu, vice director of the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC), said that Indonesia is an Islamic country with the world’s largest Muslim population, and the Indonesian government is quite stringent when it comes to Halal regulations.

All food, beverages, pharmaceuticals, cosmetics, chemicals, and organic items sold in Indonesia must have Halal certification.

Indonesia spent 220 billion USD on Halal products in 2018 and the figure is expected to top 330 billion in 2025, Lu said, adding that the country is a promising market for Vietnamese exporters, especially those with products granted Halal certificates.

The market is a less demanding than the US, EU, or Japan. Meanwhile, Vietnam and Indonesia share Asian cultural similarities and close geographical distance which helps reduce transportation costs and increase the competitiveness of goods.

Moreover, they are both ASEAN countries, and thus can enjoy preferential tariffs within the bloc, Lu said.

Le Bien Cuong, vice head of the Asia-Africa Market Department, said that as the two countries are positive members of multilateral cooperation agreements and free trade agreements, so tariff barriers between the two countries are mostly lifted, which facilitated their trade and cooperation in developing supply chains, production chains and boosting export to the third country.

However, the structure of Vietnam and Indonesia's exports has many similarities, especially in the agricultural and fishery industry, so the exports of the two countries compete with each other, Bien said.

Moreover, Indonesia has been applying restrictive measures and barriers to Vietnamese exports.

According to the Vietnam Trade Office in Indonesia, the country implements the policy of self-reliance in food (reducing the need to import agricultural, forestry, and fishery products). Therefore, to enter Indonesia, Vietnamese products will have to compete with those from other ASEAN countries. 

Indonesia is also a highly protectionist market with many non-tariff barriers, especially with frequent application of trade remedies.

To access and enter the market, Vietnamese exporters need to apply for Indonesia’s Halal certificate and the Indonesian National Standard (SNI) - the only nationally applicable standard in Indonesia and mandatory for various products.

Vietnamese enterprises are also urged to closely work with Vietnamese agencies if Indonesia launches trade remedies against their products.

By 2021, Indonesia has conducted 11 trade remedy cases against Vietnamese products.

Particularly in 2021, although Indonesia did not initiate any new cases, it issued a conclusion to impose taxes on four trade remedy cases. The items investigated by Indonesia are mainly steel products, BOPP wrapping film, cigarette rolls, EPS granules, and clothing.

Vietnamese logistics firms to face challenges due to global certainties

Local export and logistics businesses are anticipated to enduring difficulties moving forward due to factors such as high inflation and the risk of a global economic recession, according to insiders.

The information was unveiled on December 20 by experts at the “Logistics Forum with Europe and the Americas 2022” held in Ho Chi Minh City.

Upon addressing the event, representatives of the Ministry of Industry and Trade emphasised that the nation’s logistics industry has grown rapidly, with an average growth rate of 14% to 16% per year, duly contributing between 4% and 5% to the country’s GDP.

Between January and November, trade turnover between Vietnam and the Europe-America region increased by 11.8% to US$212 billion, of which exports surged by 16% to US$171 billion on-year.

At the function, business representatives shared their experiences of attempting to reduce costs and improve the overall efficiency of logistics services.

In line with this, businesses are required to gain greater insights into customs clearance regulations at international ports, whilst also seeking solutions aimed at optimising logistics costs and utilising the synchronous connection network of large foreign transport companies in order to gain entry into new transport channels.

Most notably, local firms must focus on connecting logistics service infrastructure for the export of agricultural products in the Mekong Delta region amid domestic costs remaining high, said think tanks. 

Nguyen Chanh Phuong, vice chairman of the Ho Chi Minh City Fine Arts and Woodworking Association, predicts that domestic logistics costs will tend to increase again, adding that the rapid completion of the Ring Road No 3 and Ring Road No 4 which connects to the port system in Dong Nai and Ho Chi Minh City are anticipated to lower logistics fees in the coming time.

ADB, BIM Wind sign US$107 million financing package to support wind energy in Viet Nam
     
The Asian Development Bank (ADB) signed a US$107 million financing project with BIM Wind Power Joint Stock Company (BIM Wind) to support the operation of an 88 MW wind farm in Ninh Thuan Province, Viet Nam.

The power plant will help Viet Nam reach its clean energy and climate action targets by offsetting about 215,000 tonnes of carbon dioxide annually.

This innovative $107 million project financing is arranged and syndicated by ADB as mandated lead arranger and bookrunner, and comprises $25 million from ADB’s ordinary capital resources, $25 million from Japan International Cooperation Agency, $13 million from Hong Kong Mortgage Corporation Limited, $17 million from Sumitomo Mitsui Banking Corporation, $18 million from ING Bank, and $9 million from Cathay United Bank.

Herbal medicine industry remains largely underdeveloped
     
The herbal medicine industry remained largely untapped despite Việt Nam's many favourable conditions, said industry experts and policymakers.

According to Prof Phạm Vũ Khánh, former head of the traditional medicine department under the Ministry of Health, close to a third of all flora in the country or 4,000 plant species could be used for medicine yet the country still had to import as much as 50,000 tonnes of medicinal herbs every year (80-85 per cent of medicinal herbs used).

For example, 300-400 tonnes of herbs were imported through the Chi Ma International Border Gate in the northern province of Lạng Sơn alone. Imported herbs typically fell under two categories: natural-grown and agriculture-cultivated with the majority being the latter.

Cultivated herbs were often affordable but varying in quality and in many instances, neither safe nor suitable for use in medicine production. 

Dr Phan Thúy Hiền, deputy head of the National Institute of Medical Substances, said the underlying causes of Vietnamese medicinal herbs losing on home turf were lack of economies of scale, poor transport infrastructure and labour-intensive production methods, which all contributed to high prices compared to competitors. 

Except for a handful number of cooperatives that have successfully implemented working production models, the vast majority of production centres were small in size and lack both the ability and the will to employ rigid quality control. Furthermore, it's often difficult for local communities to connect with pharmaceutical companies and vice versa. 

The Red River Delta traditionally has been a major production centre of medicinal herbs with the Central Highlands in recent years catching up quickly thanks to its suitable soil and experienced farmers.

According to Prof Lê Văn Truyền, a former health deputy minister, there was a long documented history of traditional medicine in the country. Along with modern medicine, herbal medicine has been playing an important part in the health sector. 

Herbal medicine also serves another purpose which is bolstering patients' health foundation on top of providing key nutrients, according to Prof Trần Văn Ơn, head of the flora study department of the Hanoi University of Pharmacy.

Number of passengers on domestic flights recovers
     
It is expected that the total Vietnamese aviation market will reach 55 million passengers by the end of this year, an increase of 3.7 times compared to the previous year, recovering by nearly 70 per cent compared to 2019, pre-COVID-19 pandemic.

In particular, the sharp increase in domestic passenger transport has partly offset the slow recovery of international arrivals.

Specifically, the airline's domestic passenger transport reached 43.2 million passengers this year, an increase of 3.5 times compared to the previous year and an increase of more than 15 per cent compared to 2019.

However, international transport only reached 11 million visitors, despite growing 22 times over the previous year, but only equivalent to 27 per cent compared to 2019.

In terms of goods, the total volume of goods transported by air is estimated at more than 1.25 million tonnes, equivalent to the transport volume of 2019.

In which, the volume of domestic freight is still 40 per cent lower than in 2019, however, international freight transport rose by more than 10 per cent compared to 2019.

The Civil Aviation Authority (CAA) of Viet Nam assessed and overviewed the Vietnamese aviation market of Viet Nam last year that the domestic market, which had strong growth in output, showed the effectiveness of COVID-19 pandemic prevention and control measures and the country’s proper market opening and restoration.

In addition, the authority actively discussed with the International Civil Aviation Organization (ICAO) and aviation authorities of partner countries during the year to resume regular international flights after the pandemic is under control. 

PM asks financial sector to perfect legal framework, supervise bond market
     
The Prime Minister asked the financial sector to focus on perfecting the legal framework, strengthening the supervision over the securities and corporate bond markets and striving to upgrade the stock market.

Prime Minister Pham Minh Chinh made the statement at a conference in Ha Noi on Monday.

He said 2022 had many difficulties and challenges with the consequences of the COVID-19 pandemic. The world situation changes very quickly and became complicated, with many unprecedented developments.

However, the socio-economic situation in 2022 had recovered positively, achieving many important results in most fields. Inflation was controlled below 4 per cent; economic growth was estimated at 8 per cent, and adequate energy was ensured for production and life at an affordable price.

As for the financial market, the Prime Minister said market regulators needed to supervise the improvement of the quality of financial markets, securities, insurance and corporate bond products.

For the corporate bond market, the issuers must perform the obligation to repay interest as committed. In case they cannot perform the obligation, the bond issuers should actively negotiate with investors to find effective measures to restructure bond debts and interest rates, payment terms, and payment conditions, in accordance with the actual situation and with current laws.

The sector also needs to speed up the plan to reorganise and equitise State-owned enterprises with State capital up to VND4 quadrillion, study the use of state capital in enterprises to increase investment in the field of renewable energy, promote green transformation, and respond to climate change.

Chinh emphasised the active integration and cooperation in international finance, improvement of the efficiency of foreign affairs, and learning from good models in some advanced countries to promote diversification of markets, products and supply chains.

He said in 2023, the financial industry would have many creative, drastic and effective innovations, overcome difficulties and challenges, and achieve more excellent, comprehensive financial tasks compared to 2022.

Vietcombank and Petrolimex sign comprehesive cooperation agreement
     
Bank for Foreign Trade of Vietnam (Vietcombank) and Vietnam National Petroleum Group (Petrolimex) have recently signed a comprehensive cooperation agreement.

Under the agreement, Vietcombank will consider using the products and services offered by the petroleum giant, including fuels and insurance products. In return, Petrolimex will be in favour of those provided by the bank, including international payment, cash flow management, and credit finance.

Additionally, both parties are committed to cooperating closely in non-banking products and services, co-branded cards, and customer experience optimisation.

Vietcombank Chairman Pham Quan Dung underlined the agreement as a push for bilateral relations, allowing both parties to improve their operation and unlock their full potential.

Petrolimex Chairman Pham Van Thanh asserted that the agreement would lay the groundwork for higher levels of cooperation in the future.

"This is a milestone marking a leap in bilateral relations," said Thanh.

At the signing ceremony, Vietcombank also promised a credit arrangement of VND25 trillion (US$1 billion) to Petrolimex and its affiliated firms to finance their operation.

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