Prime Minister Pham Minh Chinh has asked Samsung to consider Vietnam its important and global strategic base in terms of production, research and development.

He made the request when attending an inauguration ceremony for Samsung R&D Centre in Hanoi on December 23.

Built from March 2020 at a total cost of 200 million USD, the 16-storey facility sits on a site of over 11,603 sq.m, becoming the largest of its kind in Southeast Asia and one of the 18 Samsung R&D Centres across the world.

Samsung plans to research and develop smart phones, tablets, hardware and software at the facility, employing about 3,000 workers.

Up to now, half of Samsung's total global supply of mobile phones are being produced in Vietnam. The conglomerate is also developing and testing software of mobile devices and networks in the country.

In his speech, PM Chinh hailed Samsung as the biggest Korean investor and also the biggest foreign investor in Vietnam with a total registered capital of nearly 20 billion USD, contributing to Vietnam’s export turnover, job creation and revenues to the State budget.

The launch of the R&D Centre in Hanoi is evidence of Samsung’s orientations and commitments to long-term operations in the country, he said, adding that it is also a good start to deliver its close-ended production chain in electricity and electronics in Vietnam.

On the occasion, the PM asked centrally-run agencies and local authorities to offer all possible support to foreign investors, including Samsung, to do business in Vietnam effectively in the long term, in the spirit of harmonising interests and sharing risks.

He suggested Samsung step up specific cooperation activities in researching and linking with the network of Vietnamese experts and intellectuals at institutes, universities, technology enterprises and Vietnam National Innovation Centre, so as to push ahead technology projects that both meet Samsung's needs and create positive impacts on Vietnam.

The Vietnamese leader wished that the tech giant would quickly prepare necessary conditions for the early trial production of flip-chip ball grid array products, toward mass production at its factory in the northern province of Thai Nguyen from July 2023.

Vietnam will continue creating favourable conditions for Samsung to do business effectively and sustainably in the country, he stressed.

Japan looks to expand collaboration with Can Tho in agricutlture

Japan wishes to expand cooperation with the Mekong Delta city of Can Tho in agriculture and human resources.

The information was revealed at a working session between leaders of Can Tho city and a Japanese delegation led by Wantanabe Michitaro, Mayor of Nasushiobara city of Tochigi prefecture on December 23.

Wantanabe told the hosts that Japan had planned to sign a Memorandum of Understanding (MoU) on cooperation with Can Tho in the fields of agriculture and human resources exchange in July 2020. However,  it was delayed due to the outbreak of COVID-19.

As the pandemic is basically under control, Japan wants the two sides to hasten the signing of the MoU, paving the way for trade expansion, especially in agriculture.

Nasushiobara boasts strength in agriculture, with dairy cow and rice being key products. Livestock farming accounts for 70% of the city's agricultural production structure.

For his part, Pham Van Hieu, Chairman of municipal People’s Council, said farming land makes up 80% of Can Tho's total area and hi-tech agriculture is currently one of its strengths.

This year, 172 labourers in the locality were sent to work in Japan, he added.

He hoped that more activities will be conducted by the two cities next year on the occasion of 50th anniversary of Vietnam-Japan diplomatic ties.

High demand expected for international flights during Tet

International flights during the upcoming Tet (Lunar New Year) holiday season should prosper, an official from the Ministry of Transport has said.

A representative of Vietnam Airlines said that Tet tickets for some international routes have been sold out, with the total number of flights expected to double from normal. 

Tourists have shown high demand to visit Australia and Northeast Asia, along with familiar destinations such as Thailand and Singapore, he said.

More direct flights between Vietnam and the US will be organised during the peak period of Christmas and New Year, he added.

According to Vietjet Air, Bodh Gaya in India is a popular destination among Buddhists in the early spring. Other attractive routes include Seoul, Busan, Tokyo, Osaka, Nagoya, Fukuoka, Taipei, and Kaohsiung.

For Bamboo Airways, routes to Germany, the UK, Australia, Japan, the Republic of Korea, Taiwan (China), Singapore and Thailand are tourist favourites.

The demand from Vietnamese people living abroad to come home to celebrate Tet will increase, a representative of Vietravel Airlines said, adding that the airline will officially open the Hanoi - Bangkok route on December 16 and the HCM City - Bangkok route in January 2023 to better serve tourists.

During the first 11 months of 2022, the city welcomed 3 million international visitors and nearly 28 million domestic tourists, reaching more than 117 trillion (4.96 billion USD) in total revenue.

There are many cultural, culinary and tourism events at the end of the year to promote HCM City’s tourism during the upcoming Tet holiday season.

Durian exports to China up sharply

In the first month of being exported through official channels, durian exports to China in October rose 40 fold over October last year.

Export volumes have skyrocketed since the Ministry of Agriculture and Rural Development and the General Administration of Customs of China signed a protocol on phytosanitary requirements for Vietnamese durian exported to China.

In October alone, durian export turnover to China reached nearly 50 million USD, an increase of 40-fold against October 2021. So far this year, durian exports to Vietnam’s northern neighbour stand at more than 20,000 tonnes and are forecast to hit 30,000 tonnes by the end of December.

The signing of the protocol came after four years of negotiations, permitting official exports of Vietnamese durian to China and creating a significant opportunity for Vietnamese farmers to raise the value of the fruit.

German firms interested in Phu Yen development potential

A delegation of Phu Yen province, led by Cao Thi Hoa An, Standing Vice Secretary of the provincial Party Committee and Chairwoman of the People’s Council, is paying a working visit to Germany from December 20-23 to seek investment opportunities here.

On December 21, the delegation and the German Association for Small and Medium-sized Businesses (BVMW) held a workshop introducing the central province’s potential and advantages to German firms.

An proposed BVMW – with a network of 960,000 small and medium-sized enterprises, 300 local associations, and representative offices in all 16 German states and 55 representative offices abroad, including the one in Vietnam – help convey information about Phu Yen province to potential German investors.

After the specific introduction by Deputy Director of the provincial Department of Planning and Investment Nguyen Hoang Phuc, participants at the workshop showed their impression with the beauty and development potential of Phu Yen.

BVMW representatives also expressed their belief that the event is the starting point encouraging more and more investors in Germany in particular and in Europe in general to come to Phu Yen to look for investment opportunities there.

They said they are interested in sustainable energy and environmental remediation.

Firms urged to switch to sustainable packaging

To stay competitive and ensure the marketability of their products, enterprises need to switch to packaging that meets sustainability requirements and is easily recyclable as more and more consumers become aware of environment safety, a conference heard in Ho Chi Minh City on December 22.

Nguyen Nhu Khue, CEO of Lotus Chemical Technology Co., said packaging serves multiple functions but causes environmental damage over the course of its life cycle.

With the concept of the circular economy becoming more influential, designing packaging specifically to be recycled is becoming a vital part of the packaging process, he said.

Sustainable packaging makes use of materials and manufacturing methods that have a significantly low impact on both energy consumption and the environment, he said.

Reducing the weight and volume of packaging to the minimum necessary while ensuring product safety and hygiene is a trend in e-commerce and shipping, he said.

Late last month, the EU Commission proposed regulations on packaging and packaging waste that impose mandatory rates of recycled content that producers have to include in new plastic packaging, specify standardisation for some packaging formats and ban certain forms of packaging among other things.

Exporters need to monitor the market closely to keep up with markets’ requirements, Khue said.

Besides quality and price, packaging is also an important element that influences consumers’ buying decision, delegates said.

According to some studies, consumers nowadays focus on plant-based products, products with good elements for health, indigenous products, and environmental protection.

Nguyen Thi Xuan Yen, a sustainable development researcher and practitioner, said people are expressing their concern about sustainability through changes in lifestyle and product choices.

A study done by Global Scan pointed out that consumers in the Asia-Pacific region expect to buy more from socially and environmentally responsible companies post-pandemic, she said.

Next-generation e-commerce platform launched

Next-generation e-commerce platform Shopdi, equipped with blockchain, virtual reality, artificial intelligence, and Big Data technologies, was launched in Ho Chi Minh City on December 22.

Shopdi will offer shopping and ‘shoppertainment’ (shopping and entertainment) experiences to users, with dedication to authentic products and special products with limited editions.

It will allow consumers to choose the price of the item they purchase by utilising features such as "Hidden Price" and "Unlimited Discount" options. The platform gives customers the ability to choose the price of the product they want to purchase without affecting the sellers' ability to make a profit or position their brand appropriately.

Shopdi has already signed deals with prestigious distributors such as Thegioidiong, FPT Shop, OPPO, Minh Tuan Mobile, Nguyen Kim, Phong Vu, several delivery companies and payment solution providers like MoMo, VNPAY, and MBBank, among others.

This year, Shopdi will focus on technology products and expand into cosmetics, apparel, utility services, cars, and household utensils next year. Its target customers are young people with a passion for branded items and technologies while sellers are genuine hi-end, international brands.

According to the White Book on Vietnamese E-Business 2022, retail e-commerce in Vietnam could reach 16.4 billion USD this year with a growth rate of up to 20%. The top criteria that consumers care about when shopping online include reputation (74%), affordability (54%), promotions (56%) and authenticity and quality of goods (47%).

Japan’s Toyama prefecture eyes investment opportunities in Binh Duong

Nguyen Van Danh, Vice Chairman of the Binh Duong Provincial People's Committee, a magnet for foreign investment in the South, hosted a reception on December 22 for a delegation from Japan’s Toyama prefecture led by Governor Nitta Hachiro.

The governor said the delegation comprises more than 20 enterprises of Toyama which have interests in the investment environment in the southern province.

The prefecture’s authorities have conducted a survey showing that Japanese businesses are interested in investing in Vietnam, especially Binh Duong province, as Vietnam has reported rapid and sustainable economic growth, he added.

Danh told the guests that Binh Duong is home to 29 large-scale industrial parks with a total area of nearly 12,700 hectares.

As of November 30, it had attracted approximately 40 billion USD with 4,082 projects from 65 nations and territories, of which Japan ranked second with a total of nearly 6 billion USD.

Workshop seeks to raise effectiveness of socio-economic recovery, development programme

A scientific workshop to review the implementation of socio-economic recovery and development programme was held in Hanoi on December 22 by the Vietnam Institute of Economics under the Vietnam Academy of Social Sciences, in collaboration with the Australian Embassy in Vietnam through the Australian Alumni Grants Fund (AAGF), administered by Aus4Skills.

In his opening speech, Assoc. Prof. Dr. Bui Quang Tuan, Director of Vietnam Institute of Economics, said to support the economic recovery during and after the COVID-19 pandemic, the National Assembly approved a resolution on a number of fiscal and monetary policies to support the implementation of the programme.

These are important policies and resources from the State to restore the national economy and provide support for those severely affected by the pandemic, including businesses, cooperatives, households and employees, he said.

The workshop was part of the research and policy consulting activities to share the research results carried out by the research group of the institute, which groups members who are alumni in Australia, with the aim of monitoring the progress and find out advantages and disadvantages in implementing the programme.

Reports presented at the event briefed on Vietnam’s socio-economic situation over the last 11 months, and made initial assessments on the first year of implementation of the programme, and proposed to continue to improve and make adjustments to the programme to increase its efficiency.

Representing the research group, Tuan said a survey was conducted in four localities namely Hai Phong city and Bac Giang province in the north, and Ho Chi Minh City and Binh Duong province in the south from late June to late July 2022.

Through the survey, the group found that the implementation is still behind schedule and expectations regarding its timely impact on the economic recovery and development, he said.

He stressed that it is necessary to have a full review and assessment of difficulties, thus making appropriate adjustments to properly determine the programme's role, usefulness and feasibility.

Vietjet resumes two routes to Republic of Korea

Vietjet has resumed the non-stop services from Vietnam’s two tourism destinations of Da Lat and Can Tho to the capital city of the Republic of Korea - Seoul, just in time for the Christmas holidays.

The resumption of the two routes raises Vietjet’s total services between Vietnam and the RoK to 12, further strengthening its leading position in the Vietnam-RoK flight network.

With just around five flying hours, travellers in Vietnam and the RoK can easily reach their favourite destinations for leisure, studying, business, or visiting relatives at affordable fares, especially during the year-end festivals and Lunar New Year of 2023.

The Da Lat - Seoul (Incheon) route will have four weekly return flights every Tuesday, Wednesday, Saturday and Sunday. The flight departs from Da Lat at 17:10 and lands in Incheon at 23:55. The return flight takes off from Incheon at 2:30 and arrives in Da Lat at 5:50 (all in local times).

Meanwhile, passengers can take the three weekly return flights from Can Tho to Seoul (Incheon) every Monday, Thursday and Friday. The flight departs from Can Tho at 16:50 and lands in Incheon at 23:55. The return flight takes off from Incheon at 2:30 and arrives in Can Tho at 6:20 (all in local times).

Vinh Phuc draws 425.9 million USD of FDI in 2022

The northern province of Vinh Phuc has attracted more than 425.9 million USD in foreign direct investment (FDI) in 2022, 42% higher than its yearly plan.

According to the provincial Management Board of Industrial Parks, Vinh Phuc now has 16 industrial parks with a total area of 3,100 hectares, eight of which have been put into operation with occupation ratio of over 95%.

After the COVID-19 pandemic was controlled, Vinh Phuc has focused on overcoming its consequences and stablised production of local firms by giving them numerous support.

KC Chen, General Director of Compal Vietnam Co. Ltd., in Ba Thien industrial park, said that the company has been provided with helpful information and assistance in administrative procedures. As a result, its revenue is equal to 63% of the figure recorded last year, with social welfare for workers ensured.

This year, the provincial Management Board of Industrial Parks has granted licences to 26 new FDI projects and approved capital adjustments for 35 existing ones.

The new projects came from six countries and territories – the Republic of Korea, Japan, China, Taiwan (China), Singapore and British Virgin Islands. RoK-funded projects accounted for 54% of the total FDI projects in the local industrial parks.

Along with calling for more investments through promotion activities inside the country, Vinh Phuc also organised activities in other countries such as Singapore and Malaysia to draw more FDI.

Cambodia's Angkor Air opens first air route between Siem Reap and Hanoi

Cambodia’s Angkor Air unveiled on December 23 that it had successfully conducted the first flight connecting the Cambodian province of Siem Reap with the Vietnamese capital of Hanoi.

The flight departed from Siem Reap International Airport and landed at Noi Bai International Airport in Hanoi on December 22, carrying onboard 68 passengers. The return flight left for Siem Reap on the same day, transporting a total of 81 passengers.

According to details given in the announcement, Cambodia’s Angkor Air will initially conduct three flights per week, using A320 aircraft on Tuesdays, Thursdays, and Saturdays.

Aside from the new air route, there will be four continuous air routes between Cambodia and Vietnam. This includes two flights on the Siem Reap-Ho Chi Minh City route, one flight on the Siem Reap-Da Nang route, three flights on the Phnom Penh-Hanoi route, two flights on the Phnom Penh-Ho Chi Minh City route, and one flight on the Sihanoukville-Ho Chi Minh City route each day.

Hanoi receives 18.7 million tourists this year

Hanoi is anticipated to welcome a total of 18.7 million visitors this year, including 1.5 million foreign arrivals and 17.2 million domestic visitors, representing a 4.7 fold-rise compared to figures recorded in 2021.

Total tourism revenue is therefore estimated to stand at over VND60,000 billion, representing a 5.3-fold rise compared to 2021 and equivalent to 57.8% of total revenue seen in 2019.

Most notably, Hanoi continues to receive critical acclaim from prestigious travel websites for its attractiveness to international tourists.

As a result of this, Hanoi has been listed among the 25 best tourist destinations for food lovers in the world, as voted for this year by Tripadvisor readers.

Furthermore, German travel website Travelbook.de has highlighted the capital as being one of the most popular travel destinations throughout all of Southeast Asia.

The travel tracking tool Google Destination Insights also ranked Hanoi as one of the most-searched-for cities by international visitors.

Hanoi was also placed in the ninth position by Icelandic airline in the ranking of the world's top 10 cities to explore for culture, cuisine, and healthcare.

Especially, Hanoi has been voted by the World Travel Awards (WTA) as the World's Leading City Break Destination 2022.

This comes amid the capital’s tourism industry focusing on strengthening connectivity with other cities and provinces to fully tap into agricultural tourism products as a means of providing visitors with unique products. 

Circular economy is an inevitable path ahead: UNDP
     
The transition towards a circular economy (CE) offers US$4.5 trillion in economic opportunities globally by reducing waste, stimulating innovation, and creating employment, according to Ramla Khalidi, Resident Representative of UNDP in Viet Nam.

Khalidi spoke at the event 'Harvest Day & Circular Economy Connect' hosted by the Vietnam Circular Economy Hub on December 22.

The resident representative said small- and medium-sized enterprises (SMEs), which comprise 96 per cent of the total number of enterprises in Viet Nam, have a critical role in accelerating the transition towards CE.

To this end, a recent UNDP-initiated capacity-building programme, in partnership with the Netherlands Embassy, has trained over 100 Vietnamese enterprises in various sectors to scale up CE models, adopt low-carbon technologies, and shift production and consumption models to greener ones.

Kees van Baar, Ambassador of the Kingdom of Netherlands to Viet Nam, remarked that big enterprises typically have the capacity and resources to embrace CE actively. Still, it is not the case for SMEs, which account for almost 100 per cent of the total number of enterprises in Viet Nam.

He said CE transition is not only a matter of responsible business conduct but also a matter of profitability. Therefore, he believed that enterprises incorporating CE into their operation would be better off financially.

Mai The Toan, vice president of the Institute of Strategy and Policy on Natural Resources and Environment, underlined CE as an inevitable path for Viet Nam, given its limited natural resources, high population, and the growing pressure of environmental pollution.

He also revealed that his institute had recently outlined the National Action Plan on CE, which is slated to be submitted to Prime Minister for approval before December 31, 2023. However, for the time being, the outline was handed out to local authorities, enterprises, and research institutes to elicit their comments.

Nguyen The Chinh, director of the Environmental Economic Policy Institute, asserted that some regulations on water treatment need revision because they are holding back the CE transition.

Without legal grounds for the reuse of treated wastewater, the enterprises have no choice but to return the effluent to the environment because closing the water loop would put them at risk of being whistle-blowed.

Nguyen Anh Duong, director of the Department for General Economic Issues and Integration Studies, Central Institute for Economic Management, underlined profits as the primary motivation for enterprises shifting their focus to CE.

The director was concerned that it would take more than ten years to fix all the legal issues hindering the CE transition. In the meantime, he suggested a regulatory sandbox span of at least five years, under which enterprises would be given more legal leeway to implement their CE models.

Duong Thi Phuong Anh, deputy director of the Vietnam Environment Protection Fund, claimed that her fund had launched many lending programmes to finance green projects over the past 20 years.

Loans under the programmes, according to Anh, are favourable, with an average annual interest rate of roughly 3.0 per cent and terms of between seven to 10 years. But, more importantly, the rates are fixed during the entire term of the loan.

Director Chinh told Viet Nam News that CE transition makes profits because it allows enterprises to turn waste into pay dirt.

Market recovers on improvement of risk asset demand
     
The stock market rebounded on Thursday, ending the recent losing streak of four consecutive days on improved risk appetite. 
 
 The benchmark VN-Index saw a gain of 3.73 points, or 0.37 per cent, to close the day at 1,022.61 points. The increase helped it to recoup the losses made in the last few days. 

On the southern bourse, the breadth was positive as 181 stocks inched higher, while 131 went down. However, liquidity dropped compared to the previous session, of which the trading volume on HoSE declined by nearly 1 per cent to VND13 trillion (US$54.5 million).

The 30 biggest stocks tracker VN30-Index on the HMC City's market also rose 5.24 points, or 0.51 per cent, to 1,038.34 points. In the VN30 basket, up to 20 ticker symbols finished higher yesterday, with two stocks hitting the maximum daily gain of 7 per cent, while only six went down. 

The VN-Index's reversal was boosted by bargain-hunting force after the recent bearish trend.

Yesterday's recovery was led by key industries like banking, realty, and wholesale. Specifically, VPBank (VPB) was the biggest gainer on the trading day with a gain of 4.53 per cent. 

Other big names contributing to the rebound were Vietcombank (VCB), Vinhomes (VHM), BIDV (BID), and Petrolimex (PLX). All the ticker symbols advanced in a range of 0.76-4 per cent. 

The property developers Khang Dien House Trading and Investment JSC (KDH) and Phat Dat Real Estate Development JSC (PDR) even registered the HoSE's biggest intra-day gain of 7 per cent.

Lingering selling force, however, curbed the rallies as some large-cap stocks witnessed great losses such as Vinamilk (VNM) down 1.66 per cent, PV Gas (GAS), down 2.22 per cent, and Vietnam Airlines (HVN) lost more than 5.6 per cent. 

The market's benchmark also lost support from the foreign force as international investors ended the long streak of net buying on the southern exchange. Accordingly, they net sold nearly VND2.5 trillion on HoSE. 

On the northern bourse, Ha Noi Stock Exchange (HNX), the HNX-Index also bounced back, up 1.33 points to end Thursday at 205.79 points, equivalent to an increase of 0.65 per cent. 

Nearly 62.2 million shares were traded on the bourse during the trading session, worth VND971.02 billion.

Foreign investors still net bought VND23.74 billion. 

Three quarters of Vietnamese consumers say biometrics are more secure than other forms of ID verification
     
More than three out of four Vietnamese consumers say using biometrics for identity verification (78 per cent) and payments (76 per cent) is more secure than using a PIN, password, or other forms of identification, according to the Mastercard New Payments Index 2022.

While the research finds a great deal of trust in the technology itself, perceptions around privacy are an issue, with nearly as many respondents (71 per cent) expressing concern about which entities would have access to their biometric data.

The latest data on payment habits, attitudes and preferences was published in Mastercard’s second annual New Payments Index, a global consumer survey spanning 40 markets across five regions, including seven in APAC: Viet Nam, Australia, China, India, Japan, New Zealand and Thailand.

According to the research, Vietnamese consumers have broadly positive opinions about biometrics, with 75 per cent agreeing that the technology is more convenient than using a card or other devices. At the same time, Vietnamese consumers are also using this form of verification more than the APAC average, with 76 per cent having used it to pay for a purchase in the past year, compared to 53 per cent of consumers across the region.

Despite this, 59 per cent of Vietnamese consumers used biometrics more frequently in the last year, demonstrating both an enthusiasm for the technology, and untapped potential if providers can properly address consumers’ misgivings about privacy.

“As electronic payments continue to gain traction in Viet Nam, Mastercard’s research points to even greater potential for biometrics, given that many consumers are using the technology despite being unsure about the stewardship of their data. If stakeholders across the payments ecosystem develop protocols and provide education to allay consumers’ fears, biometrics may well become the predominant way of verifying a user’s identity when making payments,” said Winnie Wong, Country Manager, Vietnam, Cambodia, and Laos, Mastercard.

When it comes to the types of biometrics that consumers in Viet Nam are using or plan to use, the research found comparatively high rates across the board compared to APAC averages, with the most popular being fingerprint (93 per cent vs 72 per cent in APAC), facial recognition (89 per cent vs 68 per cent in APAC), and voice recognition (79 per cent vs 59 per cent in APAC). 

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