The offering of promotions with attractive discounts, even 100%, at the national scale by producers and distributors is expected to help boost the circulation of goods and encourage people to shop more.

According to the General Statistics Office, in November, the demand for food, food stuffs, cultural items, education, and accommodation, catering and travel services across the country increased significantly, contributing to bringing the total retail sales of goods and services to 552.7 trillion VND (22.7 billion USD), up 1.4% month-on-month and 10.1% year-on-year.

In the first 11 months of this year, the total retail sales of goods and services revenue rose by 9.6% over the same period last year.

Commenting on the domestic purchasing power, the Department of Domestic Market under the Ministry of Industry and Trade said that the above results partly came from promotion programmes to stimulate consumption, especially in the commodity groups of food and food stuffs, and garment and textiles.

The purchasing power is forecast to increase rapidly, especially during the New Year and Lunar New Year holidays.

Therefore, to contribute to stimulating consumption demand and promoting goods distribution, the Ministry of Industry and Trade has coordinated with localities, businesses, manufacturers, and associations to organise many supply-demand connectivity activities, promote regional product brands, and diversify sales channels, including the organisation of the national concentrated promotion programme which is taking place from December 4, 2023 to January 10, 2024.

In response to the programme, since the beginning of the fourth quarter, retailers across the country have spent large budgets to prepare goods with quantities increasing by 20% - 30% over normal months, and at the same time closely connected with suppliers to keep prices stable until the end of 2023.

Kantar Vietnam Market Research Company forecasts that the peak shopping season will fall about five weeks before the Lunar New Year, from January 7 to February 10, 2024.

Economic drivers have good growth opportunities next year: official

All the three economic growth drivers of investment, export, and consumption have good opportunities in 2024, Deputy Minister of Planning and Investment Tran Quoc Phuong told the Government’s regular press conference on December 6.

He said that at its recent sixth session, the National Assembly (NA) adopted a resolution on the socio-economic development plan for 2024. One of the most important targets is a growth rate of 6 - 6.5%.

Previously, keeping macro-economic stability was given higher priority than other tasks, but for 2024, the NA decided to focus more on promoting economic growth ahead of macro-economic stability, reflecting the determination to accelerate growth and make up for the declines caused by impacts of the COVID-19 pandemic and the global economy in 2023, Phuong noted.

Talking about opportunities for the three growth drivers next year, he said export has been recovering with better performance recorded over months and its momentum gradually regained. Total retail sales of goods and consumer service revenue have increased by over 9% and approximated double-digit growth.

Meanwhile, opportunities for state investment, foreign direct investment (FDI), and private investment in 2024 are “relatively good”, especially FDI attraction thanks to results of economic diplomacy this year, the official noted, highlighting chances of FDI inflows into such new areas as renewable energy, semiconductor manufacturing, and others serving socio-economic development.

In terms of private investment, despite numerous difficulties, capital, corporate bond, and stock markets are expected to show “relatively good” recovery capacity next year, he went on.

The deputy minister said a growth rate of 6 - 6.5%, equivalent to the average target for 2021 - 2025, is a difficult target since it is still unable to predict all difficulties awaiting in 2024. However, with the proposed measures in Resolution No 01 that is being drafted and expected to be issued by the Government at the start of 2024, the ministry hopes to reach the set target.

Airlines asked to increase flights during New Year holidays

The Civil Aviation Authority of Vietnam (CAAV) has required airlines to build plans to increase flights and arrange night flights to meet the travel needs of people during the 2014 New Year and Lunar New Year (Tet) holidays based on existing aviation infrastructure and security and safety work.

In its Directive on ensuring air traffic order and safety during the 2024 New Year and Lunar New Year holidays and the Spring Festival, the CAAV asked the Airports Corporation of Vietnam (ACV) to arrange personnel, equipment and vehicles to ensure service quality and security and order at airports.

Airlines were requested to take actions to minimise flight delays and cancellations, and intensify control to ensure aviation safety.

The CAAV also urged ground and aviation service providers to develop specific plans and measures to ensure the capacity to provide services during the holidays, and ensure sufficient resources and equipment to serve flights in accordance with airlines' operation plans.

Ba Ria - Vung Tau taps into cruise tourism potential

The port complex of Cai Mep - Thi Vai in Ba Ria - Vung Tau continually welcomed international cruise ships with thousands of tourists over the past months, a sign of cruise tourism recovery in this southern province and Vietnam at large.

From November 10 to 26, the Saigontourist travel service company served three cruise trips to Vietnam by cruise line Celebrity Cruises, including two arriving in Ba Ria - Vung Tau. In late August, Spectrum of the Seas carrying almost 4,000 passengers and crewmembers docked at Cai Mep - Thi Vai, marking the third time in 2023 this superyacht had come to the province.

Like in some other localities such as Quang Ninh, Khanh Hoa, and Thua Thien - Hue provinces, cruise tourism in Ba Ria - Vung Tau often becomes vibrant from October to the end of April.

The provincial Tourism Department said Saigontourist was designated by cruise lines to serve 14 international cruise trips with over 30,000 visitors to Ba Ria - Vung Tau between November 10 this year to April 1, 2024.

Some travel companies said foreign visitors, after arriving at local ports, often take a tour of famous destinations in Vung Tau city such as the statue of Jesus Christ, Niet Ban Tinh Xa Pagoda, Thang Tam Temple, and Bach Dinh (White Palace), or a countryside tour of destinations along National Highway 51 in Phu My commune like Ho Phap Pagoda, Cao Dai Temple, or the suburbs of Ba Ria city, where traditional crafts and customs are still upheld.

Located in the southern key economic region and a gateway to the East Sea for the southeastern region, Ba Ria - Vung Tau is connected with Ho Chi Minh City and other localities by road, air, and waterways.

Aside from a number of historical and cultural relic sites and special festivals, it is also blessed with 306km of coastline, including 156km eligible for serving as bathing beaches. Dinh and Minh Dam mountains, Binh Chau - Phuoc Buu Nature Reserve with rich flora and fauna diversity and hot mineral springs, 16 pristine islands of all sizes, along with the island district of Con Dao - a revolutionary relic site, a nature reserve and also a Ramsar site also form part of Ba Ria - Vung Tau’s tourism potential.

The close proximity with Tan Son Nhat International Airport in HCM City and Long Thanh International Airport, which is under construction in Dong Nai province, and the Cai Mep - Thi Vai port complex’s capability of handling major cruise ships are also advantages for the province to welcome international travellers.

Phan Hoang Vu, Deputy Director General of SP-SSA International Terminal, said cruise tourism is growing well in Ha Long, Hue, Da Nang, Ba Ria - Vung Tau, and Nha Trang. Among them, Ba Ria - Vung Tau with the Cai Mep - Thi Vai deep-water port complex is favourable for large vessels to dock at. The road system linking the complex with national highways and places of interest province-wide is also convenient for tourists to travel.

To facilitate cruise tourism, the Government, ministries, and sectors have issued many policies to create favourable conditions, including reforming administrative procedures at seaports and reducing port fees for the vessels coming to the country on fixed routes or for multiple times.

On August 15, Vietnam officially applied a new visa policy for foreigners, which is said to be a good condition for tourists and cruise lines to arrange trips.

Trinh Hang, Director of the Ba Ria - Vung Tau Tourism Department, affirmed that the province holds conditions to develop cruise tourism. It welcomed 126 international cruise ships in 2019, before the COVID-19 pandemic broke out, and the number is expected to reach 26 this year.

Cruise tourists often spend much money as well as time to try all services of their destinations, and Ba Ria - Vung Tau is currently a magnet for them, he went on.

Ba Ria - Vung Tau attracted nearly 14 million visitors during the first 11 months of 2023, equivalent to 99.7% of this year’s target and up nearly 22% year on year. Meanwhile, its revenue from tourism approximated 14.6 trillion VND (601.2 million USD), or almost 103% of the year’s revenue target, rising 30%, according to the provincial Tourism Department.

Seafood industry demonstrates recovery with noteworthy dividend payments from major enterprises

Recent announcements from two prominent enterprises in the seafood industry indicating substantial dividend payments indicate the industry's recovery.

According to the Việt Nam Association of Seafood Exporters and Producers (VASEP), exports in November 2023 increased by 6 per cent compared to November 2022, reaching nearly US$840 million.

Except for shellfish, the exports of primary products in November 2023 surpassed the same period last year, with shrimp increasing by 4 per cent, tuna by 26 per cent, pangasius by 12 per cent, squid and octopus by 3 per cent, and other sea fish by 4 per cent.

Vĩnh Hoàn Joint Stock Company (VHC) has approved a stock dividend plan of 20 per cent for 2022. As part of this plan, Vĩnh Hoàn will issue 37.4 million shares for dividend payment, with a ratio of 100:20 (shareholders owning 100 shares will receive an additional 20 shares).

The dividends will be paid from undistributed after-tax profits as of December 31, 2022, and the expected release time is within 45 days from the date the State Securities Commission receives all the necessary documents from Vĩnh Hoàn.

After the dividend payment, the charter capital of Vĩnh Hoàn will increase by more than VNĐ374 billion ($15 million), reaching VNĐ2.24 trillion.

In the third quarter of 2023, Vĩnh Hoàn recorded a net revenue of VNĐ2.7 trillion, representing a 17 per cent decrease compared to last year. Despite reduced costs of goods sold, Vĩnh Hoàn's gross profit declined significantly from VNĐ624 billion to VNĐ285 billion, marking a 54 per cent decrease compared to the third quarter of 2022.

Costs were reduced, with financial costs decreasing by 58 per cent to VNĐ45 billion and sales and corporate management expenses decreasing by 7 per cent to VNĐ134 billion. Consequently, after deducting expenses, Vĩnh Hoàn reported a profit of nearly VNĐ201 billion, representing a 56 per cent decrease compared to the same period in 2022.

Minh Phú Seafood Joint Stock Company (MPC) has approved a dividend payment plan of 4.11 per cent for 2022, equivalent to VNĐ411 per share.

With 399.89 million outstanding shares, it is estimated that Minh Phú will pay a total dividend of VNĐ164 billion.

Regarding business performance, Minh Phú Seafood recorded a net revenue of VNĐ2.99 trillion in the third quarter of 2023, a 41 per cent decrease compared to the same period last year.

After deducting the cost of goods sold, the company's gross profit decreased by 59 per cent to VNĐ321 billion. Despite an increase in interest expenses, the company reduced financial costs by 13 per cent to VNĐ76 billion, and sales costs decreased by 35 per cent to VNĐ204 billion compared to the third quarter of 2022.

However, Minh Phú Seafood reported an after-tax loss of VNĐ26 billion, while during the same period last year, it had a profit of more than VNĐ332 billion. Over the year's first nine months, the company's net revenue reached VNĐ7.5 trillion, representing a 46 per cent decrease.

After deducting expenses, the company incurred a loss of VNĐ109.7 billion, a significant decline compared to the profit of VNĐ571 billion in the same period last year. 

Việt Nam should embrace technological advancement to promote economic growth: VEP forum

The Việt Nam Economic Pulse (VEP) forum was held in Hà Nội on Wednesday under the theme of leveraging technology to foster prosperity in Việt Nam by the UN Development Programme (UNDP) and the Central Institute for Economic Management (CIEM), Ministry of Planning and Investment (MPI).

The forum highlighted the importance of science, technology and innovation for middle-income countries like Việt Nam. The participants of this forum discussed directions suitable for Việt Nam’s potential capacity to take advantage of science and technology in economic development.

Educators, scientists, and business leaders shared their perspectives on seizing opportunities, training, and investing in cutting-edge technologies like semiconductors and artificial intelligence, as well as building an innovative and competitive business environment.

Speaking at the forum, the President of the Central Institute for Economic Management Trần Thị Hồng Minh shared: “From forums like this, CIEM has had more information to provide advice for the Ministry of Planning and Investment, for the Government to promulgate many economic development policies, including fundamental policies in forming new economic models in Việt Nam such as the night economy development project, circular economy development project, and sharing economy development project”.

Minh said that the COVID-19 pandemic has been controlled, but it has negatively impacted the world economy in general and the Vietnamese economy in particular.

On the other hand, geopolitical tensions and increasing technical barriers in Việt Nam's important export markets relating to green products and green production have posed significant challenges for Việt Nam's economy in 2023 and the following years.

At the forum, CIEM experts said GDP growth in 2023 is estimated at 5.19 per cent, lower than the 8.02 per cent increase in 2022, but this growth rate is higher than that of many countries in the region and the world.

A representative of the CIEM research team, Dr Nguyễn Hữu Thọ, said that the economic growth of each quarter is always expected to be higher than that of the previous quarter. The GDP growth in the fourth quarter of 2023 is expected to reach 7.72 per cent, higher than that of 5.23 per cent in the third quarter. Meanwhile, the growth was 4.05 per cent in the second quarter and 3.28 per cent in the first quarter.

Meanwhile, many macroeconomic indicators, such as public investment and foreign investment capital, gained growth.

However, CIEM's research team also pointed out several difficulties and obstacles affecting Việt Nam's economic growth in 2023.

They included the quiet performance of the corporate bond market. In the first nine months of 2023, there were only 51 businesses issuing shares worth VNĐ123 trillion in total, down 60.4 per cent compared to the same period in 2022.

The real estate market also fell into a similar situation. There is an excess of products in the high segments but a shortage of products in the affordable segments. Import-export activities still depended heavily on the foreign-invested enterprise sector.

The forecast of economic growth at 5.19 per cent this year does not yet reach the set target of 6.5 per cent, affecting the development roadmap until 2025 and 2030.

Therefore, Minh said, Việt Nam has to make efforts to overcome difficulties and challenges at home and in global markets to achieve a breakthrough in economic growth in 2024 as well as in the coming years. According to him, it needs appropriate policies, operating strategies, and economic development to take advantage of the achievements of Industry 4.0 to overcome the difficulties and challenges.

UNDP Resident Representative Ramla Khalidi, in her opening remarks, said: “Technological innovation, the energy transition and shifts in geopolitical strategies have created historic opportunities for Việt Nam to accelerate economic transformation, penetrate new markets for higher value-added goods and services and increase the sophistication and domestic content of exports.

"Việt Nam’s ability to capitalise on these opportunities will have important implications for the country’s ability to sustain productivity growth at higher level incomes - in other words, to avoid the middle-income trap”.

Launched in 2021 by the Ministry of Planning and Investment and UNDP, the Việt Nam Economic Pulse Forum is an annual event designed to create a new, informal platform for discussing Việt Nam’s economic situation and development policy. The forum aims to stimulate dialogue on economic issues, incorporating a diverse range of voices beyond the conventional spectrum.

Hải Phòng connects tourism with three Central Highlands provinces

Hải Phòng City, in its efforts to boost tourism within the country, has established connections with three Central Highlands provinces.

According to Vũ Huy Thưởng, deputy director of Hải Phòng Department of Tourism, the city possesses several advantages in linking tourism with the Central Highlands provinces. This is made possible through the Hải Phòng - Buôn Ma Thuột route, as well as numerous flights connecting various provinces and cities nationwide.

Consequently, the Department of Culture, Sports, and Tourism of the three provinces will collaborate in promoting tourism development, enhancing coordination in showcasing and introducing destinations. Local tourism businesses will conduct research and develop products that capitalise on the unique potential and advantages of each locality. This collective effort aims to support the provinces and cities in accelerating their tourism industry's sustainable and effective development, ultimately establishing them as alluring destinations on Việt Nam's tourism map.

Hải Phòng City stands out due to its exceptional eco-tourism and island tourism offerings. Recognising the distinctive features of each location, fostering cooperation and partnerships with other regions becomes crucial in expanding markets and exchanging valuable insights for tourism development.

The Central Highlands, renowned for its abundant resources, boasts breathtaking landscapes and a vibrant indigenous culture. Home to 47 ethnic groups, the region holds significant cultural heritage such as the Central Highlands Gong Cultural Space, recognised as an intangible cultural heritage of humanity. Additionally, it hosts unique traditional festivals like the Elephant Racing Festival and Gongs Festival. 

Positive signs in Vietnam's green credit sector

'Green credit' refers to the kinds of loans provided by banks for projects that are considered environmentally friendly or protective of the ecosystem. Green credit is now a trend in the global banking and finance industry, and more Vietnamese banks are following suit.

"Although many problems persist, the legal framework on green credit has been improving day by day," said Nguyen Ba Hung, chief economist of the Asian Development Bank (ADB) in Vietnam, at a conference on green financing held by Vietnam Investment Review in Hanoi on December 4. ​​

The State Bank of Vietnam (SBV) has issued many legal documents and policies to promote green credit, including Directive No.03/CT-NHNN, Circular No.08/2016/TT-NHNN, and Circular No.06/2022/TT-NHNN.

The SBV has also implemented many solutions to promote green credit with more efforts made to support credit institutions to issue green bonds, access capital from international organisations, and participate in green financial cooperation programmes.

As a result, green credit activities in Vietnam have gained traction. Vietnam's total green credit balance stood at VND528 trillion ($22.3 billion) in June, accounting for about 4.2 per cent of the total outstanding credit. Vietnam boasts over 40 credit institutions offering green funding, exhibiting an annual growth rate of approximately 20 per cent.

According to Hung, businesses can seek cooperation opportunities with international financial institutions. These institutions play an important role in mobilising capital for green credit through forms such as direct loans, indirect loans, non-refundable grants, guarantees, technical assistance, financial support, and policy support. Some international financial institutions include the Asian Development Bank (ADB), the World Bank Group, including the International Finance Corporation, along with other bilateral partners such as France's AFD, the German Development Agency, the EU, and USAID.

However, Hung also pointed out some setbacks to unlocking Vietnam's green credit. Currently, the legal framework for green finance is unable to meet practical requirements and there is a lack of driving forces to promote green credit development, while the number of green products is also limited.

To promote the development of Vietnam's green finance market, one expert from the ADB recommended that Vietnam continue to improve the legal framework surrounding the green economy and green finance to meet international standards.

"Currently, commercial green capital sources do not bring many financial benefits. Therefore, the government needs to issue incentive mechanisms, such as reducing corporate income taxes for financial institutions to develop green credit and support interest rates for green credit loans," he said.

He further noted that policymakers need to maintain flexible financial management policies and proactively access international capital sources through bilateral cooperation as well as international financial institutions.

In addition, the government must accelerate the implementation of certificate validation and the formation of a domestic carbon market connected to the international carbon market. This channel can create additional revenue for economic activities, giving incentives for businesses to convert to green activities faster and on a larger scale.

Hung recommended that the government take pioneering steps in issuing green bonds based on budget expenditure management for green items. "As a result, the green bond market will become more vibrant and draw in major investors," he said.

Exports to major markets, bar China, down in Jan-Nov

Vietnam is grappling with a downturn in exports to major markets like the U.S., the EU, Japan, and South Korea, with China being the only exception.

Data from the Ministry of Industry and Trade showed China’s imports from Vietnam rose by 6.2% in January-November, a significant improvement from a 2.2% dip recorded in the same period last year.

Despite a 13.1% decline, the U.S. remained the largest export market for Vietnam during this period, with a total value of US$88 billion, making up 27% of Vietnam’s total export revenue.

Meanwhile, exports to other significant markets contracted, including an 8.1% decrease in exports to the European Union (at US$39.9 billion) and a 6.2% drop in shipments to Southeast Asian countries (at US$29.4 billion).

Exports to South Korea edged down by 4% to US$21.5 billion, while exports to Japan decreased by 4.3%, totaling US$21.2 billion. However, the rate of export contractions to these key markets has been narrowing in recent months, indicating a potential recovery in the second half of the year.

In the 11-month period, 33 product categories generated more than US$1 billion in exports each. Among these, agricultural products, rice and fruits stood out, registering 4.6% year-on-year growth.

Overall, foreign trade revenue from January to November amounted to US$619.17 billion, an 8.3% decrease versus the same period last year. Vietnam gained a trade surplus of US$28.8 billion during this time.

VAT refunds surpass VND127 trillion in Jan-Nov

Tax authorities had refunded VND127,783 billion worth of value-added tax by the end of November, achieving 68.7% of the estimate for tax refunds this year.

From January to November, tax revenue reached nearly VND1.34 quadrillion, equivalent to 96.7% compared to the same period last year, according to the Government’s news site at baochinhphu.vn.

Out of this total, VND56,544 billion came from tax revenue generated by crude oil, while VND1.28 quadrillion originated from domestic revenue.

During this period, the Government introduced numerous incentive tax policies, including tax reductions, exemptions, and payment deferments on land rent, totaling VND165,026 billion.

As of November 30, 2023, the refunded VAT amounted to VND127,783 billion, which represents 93% of the tax revenue collected during the same period last year.

VND7-trillion stadium construction proposed for HCM City

HCM City People’s Committee have proposed building a VND7-trillion (USD289.25 million) stadium.

The 50,000-capacity stadium, covering a site of nearly 11 hectares in Thu Duc City, would include a track-and-field area.

Meanwhile, around VND1 trillion will be invested into building a football academy and a cluster of six outdoor football training fields.

The city will also build off-road cycling tracks, off-road motorcycle tracks and a complex for shooting and archery.

These are part of the city’s list of 41 projects recommended by the municipal people’s committee. The list also includes 12 educational projects and six healthcare projects.

The city wants to call investors for the project implementation projects through public-private partnerships (PPP).

Localities roll out red carpet for French enterprises

Leaders of the northern province of Nam Dinh, the central province of Quang Binh, and the Mekong Delta province of An Giang expressed their wish to bolster economic cooperation with France while meeting with Vice President of the French Business Confederation (MEDEF) International François Corbin in Paris on December 6.

At the event, they called on MEDEF International to promote investment and trade promotion activities so that French enterprises will land more investment in those localities and Vietnam as a whole.

Secretary of the Quang Binh provincial Party Committee Vu Dai Thang highlighted that the locality, bestowed with breathtaking landscapes, impressive heritage, and large space to develop the energy industry, has been a potential and safe destination for both domestic and foreign enterprises.

Meanwhile, Secretary of the Party Committee of Nam Dinh province Pham Gia Tuc laid a stress on the cooperation potential between Nam Dinh and France, with the Vietnamese locality becoming increasingly attractive to foreign firms thanks to its incentive to speed up the granting of investment licenses.

For his part, Secretary of Party Committee of An Giang province Le Hong Quang said that besides a sound infrastructure system and high-quality human resources, An Giang has flexibly applied the Government’s mechanisms and policies to create favourable conditions for investors, including incentives in taxes and land rental, credit support, and post-investment support in the fields of tourism, agriculture and rural development.

Corbin, who is also Chairman of the MEDEF’s France – Vietnam Business Council, said MEDEF International, with more than 750,000 member enterprises, has given priority to the Vietnamese market.

There is ample room for both sides to bolster collaboration in all fields, from economy to education, health care and culture, he said, adding the meeting helped MEDEF International have a better insight into the Vietnamese localities’ advantages and potential as well as their leaders’ resolve to lure foreign direct investment.

He expressed his belief that both sides will have more investment opportunities in the future, adding it is necessary for competent authorities to identify potential cooperation fields as well as specific cooperation projects.

Outstanding green loans exceed VND560 trillion

Vietnam’s outstanding green loans, primarily in the energy and agricultural sectors, surged to over VND564 trillion as of September 30, accounting for 4.4% of the total outstanding loans in the economy.

Pham Thi Thanh Tung, deputy general director of the Department of Credit for Economic Sectors at the State Bank of Vietnam (SBV), said renewable energy and green agriculture represented 45% and 30% of these loans, respectively.

These revelations were made during the “Lighting the path for green financing” conference held recently in Hanoi, organized by Dau tu Newspaper and the Vietnam Bank for Agriculture and Rural Development (Agribank).

Phung Thi Binh, Agribank’s deputy general director, said the bank has extended VND30 trillion in loans to clean agricultural and high-tech agriculture projects, adding that many large-scale agricultural production models employing high technology have been established nationwide.

Experts at the conference emphasized the necessity of reinforcing legislative frameworks and implementing policies to promote green industries, making them more attractive and efficient for green financing sources. They also advocated for Vietnam to explore foreign capital sources through bilateral cooperation and international financial institutions.

Economic drivers have good growth opportunities next year: official
 
All the three economic growth drivers of investment, export, and consumption have good opportunities in 2024, Deputy Minister of Planning and Investment Tran Quoc Phuong told the Government’s regular press conference on December 6.

He said that at its recent sixth session, the National Assembly (NA) adopted a resolution on the socio-economic development plan for 2024. One of the most important targets is a growth rate of 6 - 6.5%.

Previously, keeping macro-economic stability was given higher priority than other tasks, but for 2024, the NA decided to focus more on promoting economic growth ahead of macro-economic stability, reflecting the determination to accelerate growth and make up for the declines caused by impacts of the COVID-19 pandemic and the global economy in 2023, Phuong noted.

Talking about opportunities for the three growth drivers next year, he said export has been recovering with better performance recorded over months and its momentum gradually regained. Total retail sales of goods and consumer service revenue have increased by over 9% and approximated double-digit growth.
  
Meanwhile, opportunities for state investment, foreign direct investment (FDI), and private investment in 2024 are “relatively good”, especially FDI attraction thanks to results of economic diplomacy this year, the official noted, highlighting chances of FDI inflows into such new areas as renewable energy, semiconductor manufacturing, and others serving socio-economic development.

In terms of private investment, despite numerous difficulties, capital, corporate bond, and stock markets are expected to show “relatively good” recovery capacity next year, he went on.

The deputy minister said a growth rate of 6 - 6.5%, equivalent to the average target for 2021 - 2025, is a difficult target since it is still unable to predict all difficulties awaiting in 2024. However, with the proposed measures in Resolution No 01 that is being drafted and expected to be issued by the Government at the start of 2024, the ministry hopes to reach the set target.

Petrol prices down in latest adjustment

Retail prices of petrol were revised down on December 7 in the latest adjustment by the Ministry of Industry and Trade and the Ministry of Finance.

Those of RON 95-III and E5 RON 92 were cut by 668 VND and 509 VND to 22,322 VND (0.92 USD) and 21,290 VND per litre, respectively.

Meanwhile, the prices of diesel, kerosene and mazut were reduced to 19,721 VND, 20,922 VND and 15,527 VND per litre or kilogram respectively.

The ministries decided not to use the petrol and oil price stabilisation fund.

Since the beginning of this year, petrol prices have undergone 35 adjustments, with 18 up, 13 down, and four unchanged.

The price adjustment is intended to ensure that the fluctuation of petrol and gas prices in the country is in line with changes in prices in the world while encouraging the use of biofuel as well as minimising negative impact on socio-economic development, production and business activities, among others.

Joint efforts crucial to tackle credit difficulties, promote economic growth: PM

All stakeholders from the Government, ministries, sectors, to banks, people and businesses must join hands together with highest responsibility in promoting national economic growth, ordered Prime Minister Pham Minh Chinh at a conference in Hanoi on December 7 to discuss way to tackle difficulties in credit growth for production and business, and promote economic growth and macro-economic stability.

Credit access conditions will not be lowered but should be applied flexibly to suit the reality, while fiscal policies related to capital, fees, charges, public investment and other areas should be strengthened to support monetary policies, the PM said.

According to the State Bank of Vietnam (SBV), as of November 30, credit provided to the economy had reached 13 quadrillion VND (535.49 billion USD), up 9.15% over the end of 2022. Of the total, outstanding loans in the agro-forestry-fisheries sector was about 918.6 trillion VND, while that in the industry-construction sector reached more than 3.32 quadrillion VND, an increase of 7.31%, and the service industry nearly 8.6 quadrillion VND, a rise of 7.9%.

PM Chinh said that as the credit growth target for the whole 2023 is 14%, there is plenty of room for credit institutions to expand their credit with about 700 trillion VND to be provided to the economy.

He held that in order to effectively and drastically implement measures to strengthen credit access and increase bank’s capital serving economic growth, the SBV should continue to make active and flexible regulation of monetary policies, prioritising the promotion of economic growth and credit growth in parallel with ensuring the safety of the banking and credit institution system, and harmonising the interest rates and exchange rates to match the market situation, macroeconomic developments, and goals of monetary policies.

Along with rolling out suitable credit solutions, it is necessary to enhance credit quality and drive credit to production and business activities as well as prioritised areas and motivations of the economy, while controlling credit in areas with potential risks, asked the PM.

He suggested that the SBV consider making public the average interest rates of the credit institution system and the average lending interest rates of each credit institution as well as the gap between deposits and loans, thus creating favourable conditions for businesses and people to make decision on borrowing money from banks.

At the same time, the central bank should continue to direct the drastic and effective implementation of the 120-trillion-VND package for social housing and the 15-trillion-VND package for the forestry-fisheries sector, requested the Government leader.

Alongside, it is necessary to review, adjust, supplement, and extend the implementation of issued circulars to suit the reality, he said, stressing the need to continue building new legal documents to amend regulations regarding credit activities.

The SBV was ordered to coordinate with relevant ministries and sectors to continue realising measures to develop the business bond and securities markets, and remove difficulties for the real estate market.

PM Chinh also asked credit institutions to continue cutting cost and simplifying lending procedures and conditions, thus reducing lending interest rate and increasing the credit access for people and businesses.

At the conference, the Government leader also assigned specific tasks to particular ministries, agencies, sectors, and localities.

Vietnam’s infrastructure ready for semiconductor industry

A roundtable on Vietnam’s infrastructure readiness for semiconductor industry in Vietnam was organised by the Ministry of Planning and Investment (MPI) in collaboration with the National Innovation Centre (NIC) and the US Semiconductor Industry Association (SIA) in Hanoi on December 7.

Addressing the event, Minister Nguyen Chi Dung said to implement cooperation for developing the semiconductor industry as outlined in the joint statement between Vietnam and the US, Vietnam has focused on perfecting the one-stop-shop mechanism, building a plan for developing human resources until 2030, and establishing NIC in the Hoa Lac Hi-Tech Park in Hanoi.

Vietnam is ready to cooperate with foreign companies in investment cooperation projects in the semiconductor field with the most preferential treatments, he said.

Dung said he believes that SIA and its member businesses will receive a lot of information to soon have plans for cooperation with and investment in Vietnam.

SIA President and CEO John Neuffer briefed participants on cooperation activities between the US and Vietnam to promote the semiconductor industry, saying that SIA member companies have had significant investments in Vietnam, including Intel, Marvell, Synopsys, Qualcomm, Ampere, Infineon, and others.

Many businesses have doubled their investment in the country, he said, noting that this demonstrates Vietnam's increasingly growing role in the global semiconductor supply chain.

Vietnam has incredible opportunities to establish its hallmark in the global semiconductor supply chain, he stressed.

The country has established specific directions, goals, and actions, creating a coherent foundation for the semiconductor industry. It is seen as a country with a dynamic and innovative ecosystem thanks to the rapid development of its digital economy and strong growth in the high-tech industry.

Vietnam has asserted itself as a new economic growth centre in Asia with a robust position in the global supply chain as it consistently attracts investment from multinational corporations.

Deputy Minister of Education and Training Nguyen Van Phuc said that Vietnam has abundant human resources, with the number of students studying STEM (Science, Technology, Engineering, and Mathematics) method accounting for one-third and increasing about 10% in the last three years.

Vietnam has strengths in training mathematics and chemistry, a good foundation for developing remaining industries such as semiconductor and information technology.

He expressed his hope that US firms will cooperate closely with and support Vietnamese universities to build training programmes, and establishe laboratories.

Hanoi speeds up public investment disbursement

As of November 15, Hanoi disbursed 30.13 trillion VND (1.24 billion USD) worth of public investment, meeting 64.2% of the plan assigned by the Government, and 56.75% of its set target.

Total disbursement for this year is expected to hit 48.6 trillion VND, surpassing the assigned plan by 3.5% and fulfilling 91.5% of the set target, said Vice Chairman of the municipal People’s Committee Nguyen Trong Dong, noting that the committee has worked to remove bottlenecks in order to speed up the work.  

For projects not using State budget capital with poor performance in disbursement, the committee, departments and agencies have held many meetings to resolve their problems, he added.

Dong said the committee has completed investment plans for three new projects and project groups and submitted them to the municipal People’s Council for approval, while instructing department and agencies to push ahead with the implementation of some other projects. 

Australian food, beverage products introduced at MM Mega Market in Vietnam

“Taste of Australia”, a promotion event to introduce Australian food and beverage products, opened at MM Mega Market An Phu in Ho Chi Minh City on December 7.

The event, organised in MM Mega Market trade centre chain across the country until December 20, features 170 food and beverage products from Australia with a discount of 20%.

The event introduces a variety of high-quality products from meat, fruits, milk, cereals to specialties such as fresh rock lobster, abalone, oysters, salmon, and wine. Customers also have a chance to taste Australian dishes prepared by professional chefs.

Rebecca Ball, Senior Trade and Investment Commissioner for Vietnam and Cambodia at the Australian Trade and Investment Commission (Austrade) said that this is the 4th time Austrade has organised the "Taste of Australia" event at MM Mega Market, aiming to promote Australia's innovative agriculture, food and beverage, culinary and culture industries.

Besides, the annual programme shows strong cooperation between the Australian and Vietnamese governments, as well as manufacturers, distributors, and retailers of the two sides to provide consumers with chances to experience products and goods of Australia right in Vietnamese retail channels, she said.

The official also highlighted the world leading food safety and quality standards of Australia.

Nguyen Duc Toan, Director of Merchandise of MM Mega Market Vietnam, said that the company has worked to bring high- quality Australian food and beverage products closer to Vietnamese customers.

Vietnam has been the 10th largest trading partner of Australia, while Australia is the 7th biggest trading partner of Vietnam.

Manufacturers in overdrive to cater to year-end consumption

The General Statistics Office (GSO) reported optimistic signals in industrial production, attributing the positive trend to businesses securing orders and gearing up for year-end consumer demand.

Specifically, the index of industrial production (IIP) in November rose by 5.8% annually, marking the highest growth since the beginning of this year.

Year on year, the manufacturing and processing sector grew by 6.3%, electricity production and distribution up 9.2%; water supply, waste and wastewater management treatment up 3.3%. However, the mining sector experienced a decrease of 3.8%.

Due to the global economic downturn, the overall IIP for the cumulative 11 months increased by only 1% annually. Despite this, it represented the highest year-on-year growth since early this year, indicating a positive recovery trend in industrial production.

In the industrial hub of the southern province of Binh Duong, a surge in orders has prompted numerous businesses to seek additional workers. Demand for recruitment extends from now until the year's end, ranging from 400 to 1000 workers per company.

In the bustling southern metropolis of Ho Chi Minh City, the IIP experienced a monthly surge of 3.85% and an impressive annual growth of 9.8%. Over an 11-month period, it recorded a 4.1% increase compared to the corresponding period last year.

11-month rubber export revenue reaches US$2.51 billion

Vietnam raked in US$2.51 billion from the export of 1.87 million tonnes of rubber during the 11-month period of this year, down 0.2% in volume and 14.9% in value compared to the same period from last year, according to the General Statistics Office (GSO).

November alone saw the country export 250,000 tonnes of rubber for US$343 million, up 14.5% in volume and 16.6% in value against October, reported the GSO.
  
The average rubber export price in November reached US$1,370 per tonne, marking a rise of 1.8% month on month and up 1% year on year.

Experts of the Vietnam Rubber Association say rubber exports this year will struggle to meet the set target of US$3.5 billion.

China remains the country’s primary export destination, accounting for over 99% of the total figure.

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