Total loans outstanding as of November 30 at credit institutions in Ho Chi Minh City were worth over 3.4 quadrillion VND (140.15 billion USD), a 1.3% increase from the previous month, according to the central bank.

Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam (SBV)’s HCM City Branch, said the growth was among the highest in the year, and consolidated a rising trend.

He attributed the increase to three key factors -- seasonal demand, impact and effectiveness of the credit and monetary policies and action programmes by the banking industry.

Demand for capital is usually high during year-end as enterprises need money for production and distribution of goods for the peak shopping season and the public for purchasing, according to Lenh.

Lending to businesses participating in the city’s market [price] stabilisation programme alone was worth 13 trillion VND (537.59 million USD), and it was given to 24 companies at preferential interest rates of 4-6%, greatly contributing to reducing costs for businesses and thus prevent prices of essential goods from spiking.

The SBV’s monetary, credit and interest rate policies continued to be effective, and the current low interest rate regime had encouraged borrowing for production, market expansion and consumption, he said.

The central bank’s allocation of credit limits appropriately and rationally also had a positive impact on credit growth, enabling banks to exploit the year-end season well, he said.

Action programmes by the banking industry to support enterprises, including one to connect themselves, also promoted credit growth, he said.

He said 32 meetings were organised in the city this year to link banks and businesses, enabling 162,000 companies, business households and co-operatives to obtain preferential loans and restructure their debts.

Notably, the disbursed amount was 120% of the credit packages lenders had registered at the beginning of the year, he said.

"If the year-end and the Lunar New Year are seasonal and short-term factors, factors related to monetary policies and implementation of solutions and action programmes are the fundamental and long-term bases that would promote credit and economic growth in 2024," he said.

PM approves investment policy for infrastructure construction in Quang Ngai VSIP  
 
The Prime Minister on December 22 issued a decision approving an investment policy for the first-stage construction and operation of infrastructure in the Vietnam-Singapore Industrial Park II (VSIP II), located in the Dung Quat Economic Zone, the central province of Quang Ngai.

Invested by the VSIP Quang Ngai Co., Ltd, the 50-year project will sit on a site of 497.7ha in Binh Thanh and Binh Hiep communes, Binh Son district. The project's total investment is over VND3.73 trillion (US$155.7 million), VND560.55 billion of which is contributed by the investor. 

Assigned by the Governments of Vietnam and Singapore to operate VSIP projects in Vietnam in 1996, the Vietnam Singapore Industrial Park and Township Development JSC, a joint venture between Singapore’s Sembcorp Development and Vietnam’s Becamex IDC, has to date expanded to 13 developments across the country.

On February 10 in Singapore, Sembcorp announced a new partnership with Becamex on the occasion of Vietnamese Prime Minister Pham Minh Chinh's visit, to develop five new VSIPs in Vietnam valued at approximately US$1 billion.

Taiwanese firm invests in US$120 million project in Nghe An

Radiant Opto-Electronics Corporation, a company based in Taiwan (China) that is mainly engaged in the manufacture and sale of backlight units (BLUs), has received a registration certificate by Nghe An province for an electronic components factory project capitalized at US$120 million.

This information was unveiled by Doan Van Dai, deputy director of the Management Board of Southeast Economic Zone in Nghe An province, on December 22.

Specifically, the Taiwanese firm will invest in building a Radiant Opto-Electronics Vietnam Factory in the Vietnam-Singapore Industrial Park (VSIP) Nghe An.

The factory is expected to design electronic components, including backlight modules, light guide plates, brightness enhancement films, and molded plastic frames.

The site will also generate an output of about 35 million products annually during the first phase, with a rise of about 10 million products per year in the second phase.

Furthermore, investor Radiant Opto-Electronics Corporation will also provide factory rental services and accommodation for workers and experts working in VSIP Nghe An Industrial Park. The project is therefore expected to be put into operation by the end of 2024.

The locality has so far attracted more than US$1.58 billion in FDI and ranks among  the top 10 provinces and cities attracting the best FDI capital in the country with several renowned names including Luxshare, Goertek, Everwin, JuTeng, Foxconn, Sunny, Runergy, and Shandong.

Year-end bonuses different in businesses in HCMC

Year-end bonus, a form of additional compensation above and beyond a worker’s salary, is different in businesses in Ho Chi Minh City.

The Tet holiday ( the Lunar New Year) 2024 is in nearly 2 months. All workers are interested in how much agencies, organizations, and businesses reward employees’ salaries and Tet bonuses this year.

Some most profitable businesses in Ho Chi Minh City announced this year's bonus to be equal to 2-3 months' salary or 1.5 times last year's whereas other loss-making businesses announced that their employees each receive about VND1 million (US$41) year-end bonus.

It is forecast that this year's Tet bonus remuneration will be less than prior years because the country’s socio-economic development has not recovered as expected in 2023.

According to the Vietnam Customs, the total import-export value for the whole year 2023 only reached $619.36 billion, down 8.2 percent compared to the previous year. Some businesses especially the fields of garments and seafood continue moaning about the shortage of orders, resulting in the income of employees in unproductive companies sharply decreasing.

Current regulations do not require employers to give Tet bonuses to employees. Therefore, the bonus level will also be decided by the employer based on production and business results and the level of job completion of the employee. For many years, wages and Tet bonuses have become a cultural feature rich in humanity in labor relations in the Southeast Asian country. Salaries and year-end bonuses not only help employees have a joyful Tet holiday but also create long-term, harmonious and stable labor relationships.

In his Directive No. 30, Prime Minister Pham Minh Chinh has just required ministries, agencies and localities to ensure a joyful, healthy, safe and economical celebration of the 2024 Lunar New Year Festival. Additionally, the Ministry of Labor, Invalids and Social Affairs must ensure that public employees and employees are paid full salaries, bonuses and Tet holidays according to regulations.

Normally, it is not until Tet that units and businesses have plans for Tet bonuses, but this year, the Ministry of Labor, Invalids and Social Affairs has issued an official dispatch requesting localities to report their plans for wages and year-end remuneration by December 25.

In the context that salaries and year-end bonuses will decline, the issuance of the Prime Minister's directive at this time is very timely and necessary.

Currently, many agencies and organizations are proactively taking care of people and workers’ living conditions when the most important holiday in the country is coming. The Vietnam General Confederation of Labor has prepared early Tet care programs for workers, including cash, gifts, free buses, trains, and planes to bring workers home to gather together with family members for the celebration of the passing of the old year and to welcome the New Year, sharing the joy of the family reunion. Meanwhile, the Fatherland Front, Red Cross associations at all levels and localities are also preparing charity programs to support the poor and beneficiaries of social welfare policies.

The Vietnam Social Insurance has announced that pension payments for January and February 2024 will be paid to pensioners so that more than three million pensioners have money to spend during the Tet holiday.

However, the Ministry of Labor, Invalids and Social Affairs and localities should understand the living conditions of policy beneficiaries and poverty-stricken people to provide timely support.

Moreover, the Ministry also grasp the labor situation in companies with a large number of workers to have support for workers who have suffered a sharp decrease in income, laid-off workers or unemployed employees due to natural disasters, epidemics, and poor-performing enterprises. Trade unions will monitor the remuneration at the end of the year to ask for employers’ announcements of salaries and Tet bonuses, especially the plan and time of salary and bonus payments.

“Significant” land division changes set

The amended law, to become effective from 2025, regulates that private landowners will not be permitted to divide their land areas into many land plots and sell to others in cities of a special level and grade 1-3 urban areas.

The current law only prevents subdivision and sale of plots in wards of special-class urban areas and grade 1 urban areas directly under the central government, areas with high requirements for landscape architecture, central areas and buildings that are architectural highlights in urban areas, frontages of roads at regional level or higher, and main landscape routes in urban areas.

Thus, around 100 out of 900 urban areas across the country do not allow subdivision and sale of land plots.

According to statistics from the Ministry of Construction, of the 900 urban areas across the country, Hanoi and Ho Chi Minh City are classes as special areas, there are 22 grade 1 urban areas, 35 grade 2 urban areas, and 46 areas of grade 3. The remainder are grades 5 and 6.

Dinh Minh Tuan, director of property site batdongsan.com.vn in the southern region, said that the new regulations could have a big impact on the land market, including supply, customer profile and selling prices.

“Currently, 90 per cent of the supply in the land market comes from individual products that self-divide plots, then set up projects for sale. This type of land is diverse in price, area, and products. In particular, the product is easily accessible and suitable for the finances of the majority of buyers,” Tuan said.

He added that in addition, these types of land plots mostly appear in locations where infrastructure systems are upgraded.

“With the selling price is often cheaper than fully planned land projects from developers, both sellers and buyers tend to prefer self-separated land plots rather than formal land projects,” Tuan added. “Under this new regulation, the supply of private owned land plots launched in the market will be reduced sharply and buyers will face more difficult in accessing this type of real estate than before.”

Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said that allowing land subdivision for sale as currently has increased the widespread abuse of plot separation and illegally transforming land with other functions into land with housing functions. It also disrupts urban development planning, wastes land resources, and creates real estate speculation.

“The tightening of land division and subdivision may reduce land buying and selling activities in the short term, the price of available land plots may be hiked up, but in the long run it will help the real estate market develop in a more transparent and sustainable direction, preventing speculation and waste of land assets that have occurred for many years,” Chau commented.

Meanwhile Ta Trung Kien, director of Wowhome Real Estate Company, said that tightening regulations are a drastic and positive measure to bring healthy development to the housing market. However, Kien believes that the new law will also have a significant impact on many individuals who want to separate plots for non-business purposes.

“In addition, the new regulations will make land supply and demand less diverse. If in the past, buyers can buy a land plot suitable with this budget. Now they will have to look for land plots in official projects with the higher price,” he added.

From a business perspective, Nguyen Chi Thanh, general director of Thanh Binh Construction Corporation, said that the Real Estate Business Law provides regulations that do not allow projects to be divided into plots and sold as plots. That is, the investor will have to carry out construction for the customer instead of selling land plots as previously. Thus, the value of the land plot will increase due to having to pay for construction, thereby limiting land speculation.

“Thereby, the land market will become more professional, businesses will practice building projects instead of just investing in infrastructure and selling land plots. At the same time, it helps land to be used more economically and effectively and avoiding uselessness of land,” Thanh said.

The new regulations are also expected to screen investors, forming more professional and capable real estate businesses. That means, only financial and technical enough businesses will be able to acquire a land area and divided into land plots to sell to buyers.

Localities anticipate criteria framework to attract FDI

The Institute for International Investment Studies (ISC) is implementing a survey with cities and provinces across the country about the impact of Resolution No.50-NQ/TW on improving the quality and efficiency of foreign investment cooperation towards 2030.

As part of its work, in which surveys will be carried out every five years, the ISC is also working with localities to collect opinions to help build the specific criteria framework for attracting high-quality foreign-invested projects. The Central Party Committee has assigned the Central Economic Committee to make a report, with the latter ordering the ISC to conduct the surveys and build the criteria framework.

Over the past few weeks, the ISC has worked directly with departments of Nghe An, Ha Tinh, Vinh Phuc, and Hai Duong provinces, among others. In addition, they will implement online surveys with the rest of the localities to collect opinions.

ISC member Ngo Cong Thanh said that Resolution 50, which was issued in 2019, provided some important tasks, including formulating investment criteria for selecting areas given priority in conformity with local development orientations.

“In addition, it needs to establish criteria for assessing the efficiency of foreign funding in terms of economic, social, environmental, national defence and security aspects,” Thanh said. “Furthermore, it needs to improve regulations on management and supervision of foreign investments, providing for the responsibility of ministries and local governments to take charge and cooperate in management and supervision of such activities.”

However, four years after Resolution 50 came into being, specific criteria in this vein is unfinished. Meanwhile, although criteria to appraise foreign-invested projects was integrated into the laws on investment and the environment, application still has many limitations, Thanh explained.

“Meanwhile, through meeting with localities, especially emerging localities, it is found that they are waiting for the official criteria frameworks with specific guidelines so that they can attract large-scale projects with high-tech content,” Thanh said.

Hai Duong is just one example. The province reported a breakthrough in foreign-invested capital this year, and wants to continue to sharpen its focus on calling for large-scale non-labour-intensive ventures with advanced technologies and high-value products.

Nguyen Duy Hung, deputy director of Hai Duong Department of Planning and Investment, said, “Compared to the surrounding localities such as Quang Ninh, Haiphong, or Bac Ninh, our province is an emerging locality in attracting foreign capital. Thus, having specific criteria will help the province turn down labour-intensive projects and schemes that have a higher risk of environmental pollution, such as garments and textiles. In addition, the criteria will support us in appraising various initiatives.”

“During the investment promotion process, many foreign financiers express their intentions to put less than $5 million into projects. We are often perplexed about deciding to turn these types of ventures down due to a lack of criteria. We are then forced to report to provincial leaders for advice, and this lack of criteria means we are not proactive enough in filtering out unwarranted proposals,” Hung added.

The team at ISC also said that in the cities and provinces where they worked, the leaders of provinces and departments had the same opinion about the importance of issuing the specific criteria framework soon.

At both international and domestic forums, Vietnam’s leaders have emphasised that there should be innovative measures to attract investment from society, with a particular focus on selectively choosing foreign funding in large-scale and high-tech projects, especially in sectors like manufacturing and processing, electronics, semiconductors, and hydrogen.

Vietnam aims to attract half of the Fortune-listed 500 global largest corporations by 2030 and to be among ASEAN’s top three and the world’s top 60 countries in the World Bank’s Ease of Doing Business rankings.

No profit gain for excess rooftop power

The Ministry of Industry and Trade (MoIT) proposed a draft decree in December, recommending individuals invest in self-use rooftop solar power connected to the national electricity system. Any surplus power generated will be purchased by Vietnam Electricity (EVN) at no cost, since excessive electricity can compromise the security and safety of the power grid. Vietnam has installed approximately 200MW of rooftop solar power systems over the past three years.

As per the MoIT, state oversight and management are required to guarantee the safety of operations. Solar energy is contingent on weather and solar radiation, both of which are unpredictable. Cloud cover, precipitation, or nocturnal conditions can cause the national grid to maintain sufficient electricity provision in the absence of solar radiation. This causes the system to experience rapid fluctuations, increases, and decreases, resulting in an unstable background power source.

The MoIT is concerned that any capacity exceeding 2,600MW could potentially have an impact on the power structure of the system. As of July, over 1,000 rooftop solar power systems stood connected to the grid, collectively possessing a capacity of 400MW, awaiting their inclusion in the planning process. The power grid is connected to all the remaining capacity. By 2030, only about 2,200MW will remain.

Vietnam’s utilisation of novel and renewable energy sources is in its infancy. Dr. Tran Van Binh, an associate professor at the Department of Energy Economics at Hanoi University of Science and Technology’s School of Economics and Management, said that the challenging storage system was the primary impetus for MoIT to propose a new policy.

“The MoIT’s new proposals prohibit the purchase and sale of rooftop solar energy outside EVN. Certain nations, including the US and Singapore, are presently capable of storing up to 200MW of electricity. However, Vietnam may require an additional 10-20 years to attain that level,” Binh said.

Installing solar energy on the rooftops of factories, production facilities, and commercial establishments provides a viable and environmentally friendly complement to Vietnam’s current power sources.

“There, the duty of the government is to give heed to the performance of solar energy equipment to guarantees of durability and the capacity to recoup capital associated with the initiative,” Binh added.

He added that the government should opt for a fresh approach, especially for the north, and implement price subsidies to encourage individuals to invest in rooftop solar power.

The economy’s demand for electricity will cause the northern region to continue experiencing electricity shortages during the summer of 2024. According to Dr. Ngo Duc Lam, former deputy director of the Institute of Energy at the MoIT, the new mechanism proposed by the industry would result in firms losing the output sent to the national electricity system due to the absence of recorded and paid costs.

“This is especially true when purchasing electricity for nothing,” he said. “The objective of formulating the aforementioned policy is to further advocate for the merits and benefits of rooftop solar power, which meets electricity demand with pure energy sources installed on-site. The necessity to install rooftop solar power systems is true, particularly for enterprises.”

It is necessary to satisfy energy requirements, achieve a portion of energy self-sufficiency, and supply pure electricity for green production. As a result, policies must optimise and capitalise on this energy source, as the demand for electricity may surge significantly in the near future.

He believes that by researching a compensation mechanism or purchasing at off-peak pricing, the MoIT can incentivise businesses to deploy the system while also contributing to cash flow. Undoubtedly, to accomplish this, the government must implement a synchronous dismantling policy that aids in system regulation, reduces costs, and provides additional electricity sources to sustain economic growth and human life.

Thừa Thiên-Huế invests in infrastructure in economic zones and industrial parks

Thừa Thiên-Huế Province aims to attract investors by investing in technical and social infrastructure systems in economic zones and industrial parks by 2024.

In 2024, the province aims to achieve a rate of over 83 per cent of industrial parks in operation with centralised wastewater treatment systems that satisfy environmental standards. With a total registered investment capital of roughly VNĐ6 trillion (US$258.6 billion) to VNĐ8 trillion, the region hopes to draw in 15 to 18 more infrastructure, industrial, and maritime logistics projects.

Accordingly, Thừa Thiên-Huế province will complete the investment in the construction of main traffic axes, such as expanding the central road system of Chân Mây urban area, the road East of Lập An lagoon and Chân Mây port breakwater project (phase 2).

It also built a social infrastructure system such as housing for workers and experts, schools, commercial centres, and health care systems to ensure the sustainable development of industrial parks. Currently, Chân Mây-Lăng Cô Economic Zone, Phong Điền Industrial Park, and Phú Bài have allocated land for social housing development.

The province has recently received investments in large industrial park infrastructure, such as the Gilimex Industrial Park construction project, with a total investment of over VNĐ2.6 trillion. This park is located in Phú Bài Industrial Park and is expected to boost the development of the southern industrial region, promote socio-economic growth, and address local employment needs.

Hà Nội's supporting industry promotes technology investment

Hà Nội's supporting industry sector has proactively carried out innovation and technology investment to further improve competitiveness and participate in the global supply chain.

Nguyễn Đình Thắng, deputy director of Hà Nội Department of Industry and Trade, said that Hà Nội had determined that the development of the supporting industry would be an important solution to have sustainable economic development, increase the ability to attract foreign direct investment, promote technology transfer, and boost the development of small and medium-sized enterprises.

This would also be a motivation for domestic enterprises to participate further in the supply chain of foreign invested companies and the global value chain of multinational groups.

Among them, the production of components would be the key field to provide supporting industrial products for most key manufacturing industries, such as automobile and motorbike manufacturing, mechanical engineering, electricity and electronics.

In particular, the enterprises in Việt Nam, including Hà Nội, had also taken all business opportunities, promoted digital transformation and linked with foreign partners to participate in the global supply chain.

Nam Phương Company specialising in production of electric equipment located in Sông Cùng Industrial Park, Đan Phượng District, Hà Nội, has cooperated with Intec GmbH, a group from Germany, to produce electrical cabinets and elevator controllers using leading technology from Intec, according to the company's representative.

With this cooperation, the company has produced electrical cabinets and elevator controller products with quality recognised by Intec and much lower prices.

"This is a high-quality new technology elevator controller for all types of elevators, opening up opportunities for Vietnamese customers to use a modern, smart and safe elevator control system," the representative said.

"The company's goal is to become a leading enterprise in supplying controllers on the domestic market, and also to export to other markets such as Malaysia and Singapore."

Trần Thị Phương Lan, acting director of Hà Nội Department of Industry and Trade, said according to the orientation of developing supporting industries for the period 2021-2025 and a vision to 2030, Hà Nội would deploy solutions to promote development of the supporting industry. That would help Hà Nội become a city with a modern industrial sector, high technology and green industry.

The city enhanced promotion activities, online trade connection, and the application of virtual reality technology. It also had support for supporting industry enterprises to carry out advanced and modern technology transfer; and hire foreign experts for training human resources.

Hà Nội built a website about its supporting industry to provide information and data relating to the supporting industry.

In the Hà Nội Supporting Industry Development Programme until 2024, Hà Nội set a goal for 2024 to have about 1,000 enterprises operating in the supporting industry, one year before the schedule. About 35-40 per cent of supporting industry enterprises had production systems and products meeting international standards to supply to the global production network of multinational groups in Việt Nam.

To achieve the set goals, the city would promote connection and support for supporting industry enterprises to become suppliers for domestic and foreign enterprises; and enhance attraction of foreign investment into this industry. In addition, the city would hire experts to help the supporting industry enterprises in Hà Nội deploy smart factory models.

The city would organise two exhibitions on supporting industry in 2024 with the participation of foreign enterprises, including Japan, South Korea, China and Thailand. Those would create favourable conditions for the enterprises to seek opportunities and connect commercial transactions in manufacturing and supplying components.

At the same time, it would support them in the activities of research and development, and technology transfer and innovation in trial production of components, spare parts, raw materials and materials.

Up to now, Hà Nội has more than 900 supporting industry enterprises, according to the department. Of which, about 320 enterprises have production systems and products meeting international standards, and entering the production and supply networks of multinational corporations.

However, the supporting industry's products of Việt Nam as well as Hà Nội have medium and low technology. The localisation rate of those products is still low. The value of components imported into Việt Nam for assembly and manufacturing of export goods annually reaches tens of billions of US dollars. Especially, the import value of components in the electronics and automobile industries stands at about $35-50 billion.

Besides that, according to the Hà Nội Supporting Industries Business Association (HANSIBA), there are many difficulties in investment and development of the supporting industries in Hà Nội due to increasing cost of production, labour and some other services. 

Vietnam's semiconductor market predicted to reach $8.1 billion by 2028

Vietnam's semiconductor market is predicted to reach $8.1 billion by 2028, exhibiting a growth rate of 12.6 per cent over the 2023-2028 period, according to a report by IMARC Group released on December 21.
 
The report reveals that semiconductor materials are extensively used in different industries across Vietnam, and its market size reached $3.8 billion in 2022.

As the demand for electronic devices continues to grow globally, manufacturing facilities need to increase their production volumes to meet consumer needs. This surge in production requires a proportional increase in semiconductor materials to fabricate the necessary electronic components.

Moreover, to maintain a competitive edge, electronics manufacturers frequently adopt the latest technologies, which often require new materials with enhanced properties.

In addition, Vietnamese semiconductor companies are incorporating 3D packaging to stay competitive in the market. The adoption of these technologies, such as through-silicon vias and stacked die configurations, has improved the performance and energy efficiency of semiconductor devices. These innovations enable the integration of multiple chips into a single package, reducing the form factor and enhancing functionality.

Moreover, technological advancements have led to the development of cutting-edge semiconductor materials like gallium nitride and silicon carbide. These materials offer superior electrical and thermal properties, making them ideal for high-performance applications in power electronics, wireless communications, and the automotive sector. Vietnamese semiconductor manufacturers are leveraging these materials to create more efficient and reliable devices.

As Vietnam's electronics manufacturing sector focuses on exports, semiconductor materials suppliers can tap into a global market through partnerships with local producers. This presents an opportunity for suppliers to cater to international demand while benefiting from Vietnam's competitive manufacturing landscape.

With growing awareness of environmental sustainability, there is an opportunity for suppliers to offer eco-friendly semiconductor materials. Materials with reduced environmental impact, such as lead-free solders and green packaging materials, align with global sustainability trends and are set to gain traction in Vietnam.

Vietnam, Russia’s Primorye hold huge cooperation prospect: Trade representative

Vietnamese trade representative in Russia Nguyen Hong Thanh spoke highly of the cooperation prospects between Vietnam and Russia’s Primorye territory, while attending the first Primorye international industry and investment forum in Vladivostok city on December 20-21.

Potential areas for collaboration include ship building and repair, bidding to build civil and industrial works, and supply of clothing, footwear, household appliances, and processed food which are of Vietnam’s strengths, he stressed, adding they will meet the demand of the Russian Far East and beyond.

According to Thanh, trade revenue between Vietnam and the Russian Far East is estimated at 257 million USD in 2023, 65% of which is contributed by Primorye region where Nakhodka and Vladivostok seaports are located.

The construction of a milk processing plant of Vietnam's TH Group will begin in the Mikhailovsky priority development area, Primorye territory, in the end of 2024 spring, he said, highlighting the Vietnamese trade office in the Russian Far East is looking for Vietnamese investors to build an inland container depot in Vladivostok city.

At the forum, which draw the participation of more than 1,000 businessmen and representatives from China, India, and Vietnam, First Deputy Minister for the Development of Far East and Arctic Development Gadzhimagomed Guseinov said that investors in the Advanced Special Economic Zone (ASEZ) and the Free Port of Vladivostok have landed nearly 640 billion RUB (6.95 billion USD) in Primorye territory.

The Russian Far East is developing freight transport systems and many new logistics and transport hubs, he added.

PM approves investment policy for infrastructure construction in Quang Ngai VSIP II

The Prime Minister on December 22 issued a decision approving an investment policy for the first-stage construction and operation of infrastructure in the Vietnam-Singapore Industrial Park II (VSIP II), located in the Dung Quat Economic Zone, the central province of Quang Ngai.

Invested by the VSIP Quang Ngai Co., Ltd, the 50-year project will sit on a site of 497.7ha in Binh Thanh and Binh Hiep communes, Binh Son district. The project's total investment is over 3.73 trillion VND (155.7 million USD), 560.55 billion VND of which is contributed by the investor. 

Assigned by the Governments of Vietnam and Singapore to operate VSIP projects in Vietnam in 1996, the Vietnam Singapore Industrial Park and Township Development JSC, a joint venture between Singapore’s Sembcorp Development and Vietnam’s Becamex IDC, has to date expanded to 13 developments across the country.

On February 10 in Singapore, Sembcorp announced a new partnership with Becamex on the occasion of Vietnamese Prime Minister Pham Minh Chinh's visit, to develop five new VSIPs in Vietnam valued at approximately 1 billion USD.

Green production a way for Vietnam to promote agricultural development: Insiders

The agricultural sector is speeding up restructuring towards a circular and green agriculture to adapt to the global green consumption trend, promote exports and join hands in realising the goal of net-zero emissions by 2050, said authorities.

Minister of Agriculture and Rural Development Le Minh Hoan said that consumers around the world are paying greater attention to the way a product is made, and whether it affects the environment and the health of the community, or violates standards of the world or not.

The official held that this is a chance to reposition the Vietnamese agricultural sector in the global green growth situation.

He underlined that the ongoing project to promote sustainable development of 1 million hectares of high-quality and low-carbon emission rice farms in association with green growth in the Mekong Delta region until 2030 has been highly evaluated by international organisations as the first of its kind in the world and a future model for the promotion of the green agriculture.

The project aims to build an ecosystem for the rice sector with the combination between output and quality improvement. Many new policies have been applied during the implementation of the project, including the payment of carbon credits based on results, the association of low emission production with green growth, the development of a circular agricultural economy with the optimisation of by-products from rice production, aiming to push green development, reduce emissions, and increase quality, making it a trademark of Vietnamese rice.

Alongside, the agricultural industry has also renovated the production of farm produce from researching varieties to developing standardised material region, thus forming large-scale production areas, while strengthening the application of science and technology in producing clean and high quality products, said Nguyen Nhu Cuong, Director of the MARD’s Crop Production Department.

Currently, science, technology and innovation is contributing more than 30% to the added value of the agricultural sector.

The MARD is building a project to promote tye circular economy development in agriculture until 2030, which sets a target of 60% of by-product of cultivation activities is treated and reused, along with 80% of by-products of rice production. Meanwhile, 60% of farmer households and farms are expected to treat their waste.

To date, Vietnam has had over 800 names of biological pesticides. MARD Deputy Minister Hoang Trung said that the ministry is working to ensure biological pesticides account for 30% of the total number of the licenced in Vietnam, and organic fertilisers make up 30% of the total amount used in agricultural production.

In 2050, Vietnam expects 50% of farming areas using organic fertilisers. In the year, 100% materials included in agricultural by-products and domestic waste will be used to make organic fertilisers.

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