Vietnam-China trade through the Kim Thanh II international border gate in the northern province of Lao Cai has remained steady despite the Lunar New Year holiday, with 801 tons of goods crossing on February 10.

The total import-export value reached US$2.3 million by the end of the day.

Vietnam’s exports made up the majority of the products, comprising 772.2 tons of fruits such as rambutan, jackfruit, mango, and durian. Imports from China were mainly pears, totaling 28.8 tons.

Local authorities at the Kim Thanh II border gate are committed to facilitating efficient customs clearance procedures, ensuring the timely movement of goods and minimizing trade disruptions.

In January, trade recorded at all border gates in Lao Cai Province hit US$183 million. The provincial government looks to bring annual trade to US$4.5 billion in 2024.

Supermarkets reopen on Tet’s second day

Many retail businesses across Vietnam reopened on February 11, the second day of the Lunar New Year, to meet public shopping needs after closures on the first day.

Prices are expected to stay steady, with only a small uptick in certain fresh produce like fish, beef, and vegetables, according to the Ministry of Finance.

With entertainment venues reopening in major cities, a rise in visitors may lead to higher service costs for parking and dining as businesses seek to cover holiday staffing expenses.

On February 10, most malls, supermarkets, and retail centers were closed nationwide. Exceptions included Aeon Mall and Gigamall in HCMC, which operated from 10:00 a.m. to 10:00 p.m.

Convenience stores remain open round the clock as usual.

Huge batch of electronic components exported on Lunar New Year’s Eve

Vietnam shipped a batch of more than 105,000 tons of electronic components on Lunar New Year’s Eve (February 9), local media reported.

These goods, the first of their type being shipped abroad in the lunar new year, were loaded on seven vessels that set sail from HCMC’s Cat Lai Port of Saigon Newport Corporation. Their destinations include Kaohsiung (Taiwan), Osaka, Kobe, and Hakata (Japan), as well as Shanghai and Hong Kong (China).

Electronic components remained a key export item in 2023, contributing US$42 billion to the nation’s total export value.

At an event held in Cat Lai Port on the same day to mark the export, Phan Van Mai, chairman of the HCMC People’s Committee, said that HCMC’s economy expanded 5.81% in 2023. While the overall economy remained subdued, resilient companies like Saigon Newport Corporation played a crucial role in the city’s economic growth. It generated a staggering VND71 trillion in tax revenue from import and export activities through Cat Lai Port, accounting for 16% of the city’s total budget revenue.

Ngo Minh Thuan, general director of Saigon Newport Corporation, said each production shift at the port has over 1,100 employees to accommodate the workload throughout the Lunar New Year, or Tet holiday.

Khanh Hoa welcomes first flight in Lunar New Year
 
Vietnam Airlines’ flight VN1340, departing from HCMC and carrying 130 passengers, landed at Cam Ranh International Airport in Khanh Hoa Province this morning, February 10, the first day of the Lunar New Year.

The flight received a water cannon salute. The first 20 passengers were greeted with flowers as a gesture of hospitality. Notably, Vietnam Airlines also awarded three air tickets to three luckiest passengers out of 130 on the flight.

In addition, the airport organized a dragon dance performance and gave New Year’s presents to the passengers.

Nguyen Thi Le Thanh, director of Khanh Hoa Department of Tourism, said that the program to welcome guests to Khanh Hoa Province has become an annual activity in recent years. The event aims to create a joyful and festive atmosphere for passengers arriving in the province during the Lunar New Year.

In January 2024, the total number of tourists served by accommodation facilities in Khanh Hoa is estimated at 721,500, showing a remarkable 110% increase compared to the same period in 2023. Among these, there were 520,000 international visitors, a six-fold increase year on year.

PM wants farm exports to China by rail boosted

Prime Minister Pham Minh Chinh has called on ministries and departments to expand the railway capacity and expedite construction of specialized railways to boost agricultural exports to China.

In an official telegram issued on February 6, the PM underscored the necessity to have stronger coordination amongst ministries and departments and a better logistics system for exporting agricultural and other products to the neighboring country.

Under PM Chinh’s directive, the ministries of Transportation – Industry and Trade will work with Chinese counterparts on ways to cut costs and duration of transport of agro-forestry-fishery products.

The Government leader highlighted the significance in operating international intermodal transport to connect Vietnam and China and enhancing linkages of railway systems at the border areas of Lao Cai. The move is aimed at facilitating trade and alleviating congestion at border gates that have taken place frequently over the past time, noted PM Chinh.

Relevant ministries also need to accelerate negotiations with Chinese sides to build specialized railways for agricultural products at border gates in Lang Son, Cao Bang, Lao Cai and Quang Ninh provinces.

The Ministry of Agriculture and Rural Development in collaboration with the Ministry of Industry and Trade will take measures that have been outlined in the joint statement between Vietnam and China on expanding the market for agro-product exports.

In 2023, Vietnam’s agro-product exports to China reached US$11.5 billion, with durian exports exceeding US$2 billion. In addition to durian, 13 other Vietnamese agricultural products that have officially been exported to China include bird nest, sweet potato, longan, rambutan, mango, jackfruit, watermelon, banana, mangosteens, lychee, passion fruit and grass jelly.

Higher growth possible with effort

Amid big difficulties, the Vietnamese economy is expected to continue bouncing back with a boost in domestic consumption and production, which are among priorities set by the government to hit its new growth goals.

In its headline 2024 resolution on socioeconomic development and state budget estimates for the year, the government underlined massive challenges at home and abroad that may continue hurting the domestic economy, including geopolitical tensions and shrinking demands for consumption. However, the resolution highlighted efforts to reach an ambitious target of 6-6.5 per cent growth.

This rate, according to the Ministry of Planning and Investment (MPI), will be feasible and based on an uptrend of economic growth since mid last year.

After growing 3.32 per cent on-year in Q1 2023, the Vietnamese economy bounced back to 4.14 per cent on-year in Q2, 5.33 per cent on-year in Q3, and 6.72 per cent in Q4. The whole-year rate hit 5.05 per cent, which is highlighted by Party General Secretary Nguyen Phu Trong to be high as compared to other countries in the region and beyond. “For the first time, our country’s GDP exceeded $400 billion, ranking third in ASEAN and among the 40 largest economies in the world and the top 20 economies in terms of trade and foreign investment attraction,” he stated.

Prime Minister Pham Minh Chinh added, “Our economic growth has witnessed quarter-after-quarter recovery, and the 5.05 per cent growth rate for the whole 2023 has put Vietnam on the list of nations with high growth in the region and wider world. Many high-profile international organisations have highly evaluated the outcomes and prospects of the Vietnamese economy.”

PM Chinh stated that despite difficulties, the domestic business and investment climate has continued its improvements. The Vietnamese economy witnessed over 159,000 enterprises newly established, with total registered capital of $64.2 billion and employed 1.05 million individuals – up 7.2 per cent in the number of enterprises, down 4.4 per cent in capital and 7.3 per cent in workers, all compared to those in the same period last year.

In the January-December 20 period of 2023, Vietnam wooed a total of $36.6 billion in newly registered capital, newly added capital, and capital contribution and stake acquisition, which was up 32.1 per cent as compared to 2022. In 2023, total disbursed foreign direct investment is estimated to hit nearly $23.2 billion, up 3.5 per cent on-year.

Nevertheless, Party General Secretary Trong and the government said more efforts must be made to reach a higher growth rate as targeted. Improvements in institutions, infrastructure, and education must be accelerated, especially in reviewing legal regulations as a priority in favour of enterprises and individuals.

The government also requires ministries and localities to cut and simplify administrative procedures, improve the business climate, and facilitate and reduce costs for investment and business activities.

According to the MPI, Vietnam’s industrial production in Q4 of 2024 grew “more positive” than that in Q3, with an added value estimated to climb 6.86 per cent on-year. The on-year increases of such a value were 5.51 per cent in Q3, 0.86 per cent in Q2, and -0.73 per cent in Q1. In 2023, it ascended 3.02 per cent on-year, in which the manufacturing and processing industry expanded 3.62 per cent. The on-year added value of this industry rose from -0.45 per cent in Q1 to 0.46 per cent in Q2, 5.59 per cent in Q3 and 7.97 per cent in Q4.

Meanwhile, the total retail and consumption service revenue in 2023 is estimated to reach more than $262.94 billion, up 9.6 per cent on-year. Goods retail revenue last year is estimated to hit $205 billion, accounting for 78 per cent of the total and up 8.6 per cent on-year. The price of many key groups of items also expanded, such as cultural and educational items (14.4 per cent); food and foodstuffs (11.7 per cent); home appliances (7.5 per cent); and garments and textiles (7.1 per cent).

In addition, last year saw strong recovery of the tourism sector, with 108 million domestic visitor arrivals – up 5.8 per cent as compared to the initial target, and 12.6 million foreign visitor arrivals – up by 3.4 times from the previous year and far from the initial target of eight million. The tourism sector reaped an estimated revenue of about $15.94 billion, up 52.5 per cent against 2022. Revenues increased strongly in many localities, such as Danang (133.8 per cent), Ho Chi Minh City (68 per cent), Hanoi (47.5 per cent), Haiphong (42 per cent), and Can Tho (29.1 per cent).

Global analysts FocusEconomics told VIR that in Q1, it is expected that Vietnam’s GDP growth will rise further, buoyed by likely ongoing rebounds in industrial output and exports amid stronger global electronics demand.

“When it comes to GDP outlook, Vietnam will be among the fastest-growing ASEAN economies in 2024. Improving global electronics demand should boost industrial output and goods exports, and the services sector will benefit from a rise in tourism,” FocusEconomics said. “Our panellists see GDP expanding 5.9 per cent in 2024 and 6.4 per cent in 2025.”

Diverse FDI augurs well for 2024

With plans to establish itself as an attractive high-tech manufacturing market, Vietnam is boosting its business-oriented diplomatic activities to attract investment and expand trade.

Currently, US-backed Nvidia is the most valuable chip manufacturer in the world, with a market value of nearly $1.2 trillion. Established in 1993, it now boasts 27,000 employees and gained revenues of $27 billion in the 2023 fiscal year.

Last September, Vietnamese Prime Minister Pham Minh Chinh visited the corporation’s headquarters in California, and invited president and CEO Jensen Huang to pay a working visit to Vietnam.

Less than three months later, Huang came to Vietnam, where Nvidia has already invested $250 million. He explored more investment potential and then said that Nvidia wishes to establish a base in Vietnam to develop the country’s semiconductor industry as it considers the market an important one.

“The base will be for attracting talent from around the world to contribute to the development of Vietnam’s semiconductor ecosystem and digitalisation,” Huang said.

Nvidia has discussed cooperation deals on semiconductors with Vietnamese tech firms and authorities.

According to the Ministry of Foreign Affairs (MoFA), it is not accidental that giants like Nvidia have come to Vietnam. One of the key reasons is that the country has been making its great efforts to boost business-oriented diplomatic activities to lure in big projects worth multi-billions of US dollars, in the context of increasing competition in luring this kind of funding in the region.

“Such activities are implemented by the leaders of the country and of ministries and agencies,” said Tran Anh Vu, deputy general director of the MoFA’s Department of General Economic Affairs. “Business-oriented diplomacy has been playing a key role in helping the nation to attract foreign direct investment (FDI).”

For instance, when upon hearing Denmark’s toy maker Lego Group was seeking a suitable location to build a large-scale carbon-neutral plant overseas, the Vietnamese prime minister and one deputy prime minister had three talks on the phone with Lego’s leader, persuading him to invest in Vietnam.

“As a result, Lego has come to Vietnam,” Vu said. “In Southeast Asia, a number of nations such as Malaysia and Thailand are strongly deploying business-oriented diplomatic activities to woo such big groups as Lego, and this is creating big pressure for Vietnam.”

In early November 2022, construction of a $1-billion, 44-hectare Lego plant was commenced in the southern province of Binh Duong. The plant is scheduled to generate about 4,000 jobs and market its first products in 2024. This is the sixth plant of the Danish toy company, and its second in Asia.

Lego CEO Niels Christiansen said the group selected Vietnam for its big pool of skilled staff, commitment to carbon-neutrality by 2050, and location as a gateway to the Asia-Pacific region, which has a growing market of young consumers. The government has underlined many a time that Vietnam will attract FDI selectively based on ensuring the environment and sustainability.

“Priorities will be given to projects with high added values and advanced technology in service of infrastructure development, digital economy, digital transformation, and green growth,” said Deputy Prime Minister Tran Luu Quang.

“We will also focus on boosting economic diplomatic activities to woo high-quality FDI from multinational corporations. This will help elevate Vietnam’s status in the global supply chains.”

Cumulatively as of December 20, Vietnam wooed 39,140 projects registered at $468.9 billion, of which $317.2 billion has been disbursed.

The MoFA has been assigned by the government to expand business-oriented and economic diplomatic activities, amid many nations opening their economies to Vietnam’s goods, and many big investors globally seeking safe and attractive investment destinations.

“Vietnam’s leaders have also met with leaders of many groups, including Nike, Adidas, and Adani. Visible outcomes have been seen,” said Nguyen Hoang Phuong, a representative from the MoFA’s Department of Foreign Policy.

In late December, PM Chinh received Gautam Adani, president of Adani, India’s largest business group. Adani is exploring the Vietnamese market, where it wants to invest about $10 billion over the next 10 years in energy and infrastructure.

Currently, Adani has established a representative in Vietnam with a long-term investment plan here.

The MoFA has and will also continue working with many localities nationwide to connect them with foreign investors. For instance, many South Korean investors are seeking locations in Vietnam for their upcoming projects, and we are introducing them with localities so that they can select the suitable places for the projects. Total accumulative registered capital from South Korea as of December 20 reached $85.86 billion, making the Northeast Asian economy the largest foreign investor in Vietnam, followed by Singapore at $74.52 billion and Japan at $73.96 billion.

In 2024, the MoFA will also continue cooperating with localities to organise FDI events. “The diplomatic sector has been making positive contributions to boosting Vietnam’s international integration and connectivity. It has actively mobilised and engaged overseas resources in service of new growth impetuses,” said MoFA Deputy Minister Nguyen Minh Vu.

“Besides successfully attracting green and high-tech investment projects such as Lego and Samsung, the MoFA has also actively been boosting the implementation and support for the establishment of cooperation frameworks in service of Vietnam’s trade expansion and attraction of official development assistance (ODA),” Vu said.

Vietnam has over 50 bilateral and multilateral donors, with a total committed ODA of over $90 billion to the country.

The MoFA also reported that the diplomatic sector had contributed to helping Vietnam attract a large sum of overseas remittance, at $17.2 billion in 2020 and more than 18 billion in 2021, nearly $19 billion in 2022. The figure in 2023 is estimated to climb up to 30 per cent on-year.

Public-private focus picks up steam for greener agriculture

Task forces led by businesses are determined to build a public-private partnership model to build a high-quality and low-carbon agricultural sector.

At a plenary meeting on green transformation and innovation in agriculture last week, held by the Ministry of Agriculture and Rural Development (MARD) and the Partnership For Sustainable Agriculture In Vietnam (PSAV), several representatives of task forces under the PSAV shared their plans and successful models in applying innovation and promoting green and low-emission agriculture development and their contribution to this process.

Many well-known foreign-invested agricultural firms are involved in the task force on public-private partnerships (PPPs), such as Pepsico Vietnam, which is the task force’s main representative in terms of fruit and vegetables.

In 2023, Pepsico Vietnam helped to develop the agricultural products’ value chain and increase the capacity for farmers growing potatoes. Pepsico and other groups like Syngenta apply technology in the form of weather monitors, drones, or electronic farmer handbooks, as well as precision irrigation systems and automatic fertilisation to ensure soil health and disease management.

As a result, potato capacity has tripled compared to previous years, with an average of 23-26 tonnes per hectare. The cost for pesticides reduced by around $90 per ha, and water used to mix medicine was reduced by 10 times, equalling a reduction of nearly 3,800 cubic metres of water per hectare.

Elsewhere, Bayer Vietnam is the representative of the task force on rice. In September 2023, in collaboration with the National Agricultural Extension Centre, Bayer opened Southeast Asia’s first ForwardFarm in the Mekong Delta city of Can Tho.

Its initiative in Vietnam supports sustainability in agriculture across three areas: care for crops with tailored solutions for farmers via the Much More Rice integrated programme; care for the planet with stewardship to protect health, safety, and the environment; and care for partnerships with value chain partners to bring holistic solutions to farmers.

Le Thi Minh Nghia, deputy director general of the MARD’s Agricultural Economy Department said, “Mobilising capital sources in both public and private partners is important because the demand for capital for agricultural development is still very high, which is quite far from the supply ability of credit institutions.”

In addition, Vietnam’s medium-term public investment plan for 2021-2025 regulated that particular public resources will not be allocated for each segment in agriculture, Nghia added. “There will be the integration of the central budget, budget development, commercial loans, and foreign-invested capital in collaboration with the public and private mobilised capital,” Nghia said.

MARD Minister Le Minh Hoan said, “Like many other countries which are affected seriously by climate change, Vietnam has been proactive in implementing new policies to promote the transformation process in the direction of low emissions and green development. At the same time, Vietnam also takes action to increase competitiveness in the international market.”

Along with the participation of state management agencies and the private sector, there has been support from international organisations to promote the PPP model.

Grow Asia was established by the World Economic Forum in 2015 as a joint venture between the business community and the Ministers of Agriculture of ASEAN. In 2020, Grow Asia became an official entity of ASEAN. For the last decade, it has worked closely with the PSAV to build strong PPPs and multi-stakeholder mechanisms for food systems transformation in Vietnam.

Grow Asia has convened more than 44 working groups through its network of country chapters that are now reaching nearly three million smallholder farmers and rural businesses with commercial solutions. To ensure that the work of its country chapters can go deeper and further, Grow Asia has launched four blended impact funds: GrowVentures, GrowHer, GrowRight, and GrowBeyond.

“These funds act as co-matching mechanisms for public and private contributions, and it is working with our valued partners here to deploy these funds as strategically as possible. Together, it identifies the most pressing priorities for smallholder farmers,” said Beverley Postma, executive director of Grow Asia.

Thanks to catalytic funding from the South Korean government, Grow Asia is planning to launch its first innovation challenge under the GrowVentures fund to identify the most promising and scalable technologies and digital solutions that will support the implementation of a low carbon rice project.

“We hope through this initiative, we can partner with other members of the PSAV as we leverage the power of PPPs to transform our agri-food systems,” Postma said.

According to the Agricultural Economy Department, the capital from the state budget currently focuses on irrigation (nearly 80 per cent), fisheries (10 per cent), forestry (6 per cent), and other agriculture (3 per cent). Agribank is Vietnam’s top bank established to do business in rural and agricultural development. The lender currently uses less than 70 per cent of the economy’s outstanding debt and 63 per cent of its total outstanding loans and investments for agriculture or rural areas.

Airport, expressways boost socio-economic growth Southeastern region

A series of key transportation projects in a row such as the expressways of Bien Hoa - Vung Tau expressway and Ben Luc - Long Thanh, the Ring Road No. 3 in Ho Chi Minh City started implementation in 2023.

Notably, the Long Thanh airport investment and construction project in Dong Nai Province started work on April 30, 2021. The project has been creating a strong shift in population, occupations and a boost for the Southeast region’s economic and social development.

After nearly two years of land allocation serving the Long Thanh airport investment and construction project, about 1,500 out of nearly 5,500 households in total have received land plots for resettlement in the Loc An-Binh Son resettlement area.

Of these, nearly 1,000 households with more than 3,500 residents have been resettled.

With 12 hectares of recovered land, Bui Thi Vui from Binh Son Commune received compensation worth VND6 billion (US$242,569) from the State along with a land plot in the Loc An-Binh Son resettlement area to build a new house.

Her family has utilized the sidewalk in front of the house to sell beverages while their children continue working at industrial parks, allowing them to stabilize their lives.

HCMC exploiting specific mechanisms, policies to better itself

Resolution 98 applied in HCMC since August 2023 has allowed Thu Duc City and other localities more room for socio-economic development, which in turn contributes to the general growth of HCMC.

At the beginning of last December, the People’s Committee of Thu Duc City was busy disbursing money for the land clearance task of My Thuy Intersection project after its approval of the land price adjustment coefficient. This could be done thanks to the authorization of the HCMC People’s Committee according to Resolution 98.

Another two projects receiving land price adjustment coefficient are the expansion of two sections on La Xuan Oai Street, with a total investment of VND1.88 trillion (US$77 million), accounting for 20 percent of the public investment allocated to Thu Duc City last year (VND9.46 trillion ($388.5 million).

Chairman of the Thu Duc City People’s Committee Hoang Tung excitedly shared that thanks to this authorization, his city has been more active in accelerating the progress of land clearance for various construction projects. In addition, in the upcoming time, Thu Duc City is going to pilot Public-Private Partnership (PPP) investment for some of its culture, sports, education, and healthcare projects. Another piloting scheme is the model of Transit-oriented Development (TOD) around the stations of Metro Line No.1.

Along with the aid to improve the current administrative structure, Resolution 98 offers valuable mechanisms for HCMC to carry out consistent infrastructure development, to successfully form inter-regional connections, to effectively exploit its land resources, to earn the budget for infrastructure reinvestment.

The HCMC People’s Council has approved a resolution for a list of investment projects to upgrade, expand, and modernize its current road traffic system via Build – Operate – Transfer contracts for the five entrance routes into the city. The HCMC Transport Department informed that these projects need VND40 trillion ($1.64 billion). The city budget will contribute 33-70 percent of the needed amount, and the HCMC People’s Committee is instructed to plan this capital allocation so that the progress of these projects can be maintained.

Simultaneously, HCMC is considering the application of TOD models along Ring Road No.3 and urban railway routes thanks to the provided mechanisms in Resolution 98. Since the adoption time of this resolution is only 5 years, this plan will be done in two stages, the first of which will be for Metro Line No.1 and the intersections of Ring Road No.3. As the mentioned routes have already had suitable locations identified and legal basis prepared, it is possible to immediately pilot certain projects.

Moreover, HCMC is developing a project for its urban railway system until 2035. To insert TOD models in the second stage, it is necessary to review and ask for advice from senior experts of developed countries for a parallel growth plan of both TOD models and the urban railway network.

Resolution 98 has been effective for no more than 6 months, yet HCMC is pouring all of its efforts to implement the mechanisms and policies to attract talented human resources. Experts and scientists are encouraged to join the political system and to promote science-technology development and innovation.

The HCMC People’s Council has quickly approved important policies to boost science-technology and innovative startup activities. These documents are expected to address problems related to salary, funding for research activities, and financial aid by title so that researchers feel more at ease doing their work. For the first time HCMC offers wage incentives to leaders of state-owned scientific-technological organizations established by the HCMC People’s Committee with the highest salary hitting VND120 million ($4,900) per month.

It is expected that these policies can attract more talented human resources to the city, and thus speed up scientific-technological developments as well as innovative startup here. Director Nguyen Viet Dung of the HCMC Department of Science and Technology affirmed that these outstanding policies can aid the transformation of HCMC into one of the most active centers for innovative startup in Southeast Asia.

HCMC promotes ​economic diplomacy, calling for investment

In 2023, the working delegations led by Ho Chi Minh City leaders paid visits to many countries to promote economic diplomacy, lure investment to the city and learn from development experiences and exemplary models in socio-economic fields.

During the working trip to the People's Republic of China in November 2023, a high-ranking delegation from Ho Chi Minh City led by Member of the Politburo and Secretary of the Ho Chi Minh City Party Committee Nguyen Van Nen had a working session in Shanghai Municipal Committee of Finance and Shanghai Municipal Financial Regulatory Bureau. Ho Chi Minh City hoped that the Chinese side would share experiences in building regional and international financial centers.

During a working session in Guangzhou Knowledge City, Ho Chi Minh City expressed its expectation to enhance cooperation, especially in fields of science and high technology, especially cooperation between Thu Duc City and Huangpu District.

Ho Chi Minh City set a target of developing Thu Duc City into one of the important knowledge economic centers, science-technology and finance centers of both Ho Chi Minh City and Vietnam.

Right after the working session, a signing ceremony of the Memorandum of Understanding (MoU) on cooperation between the People’s Committee of Thu Duc City, Ho Chi Minh City and the People's Government of Huangpu District, Guangzhou City, Guangdong Province was held.

The MoU signing aims to promote experience exchange and cooperation in three fields of urban planning and development; smart city and digital transformation; establishment of information channels and exchanges between Thu Duc City and Huangpu District in order to create conditions and opportunities for exchange, cooperation, and business connections between the two localities.

The working visits have brought practical opportunities to promote major projects, scientific and technological development, innovative entrepreneurship as well as green and sustainable development that Ho Chi Minh City is pursuing.

At the end of September 2023, a working delegation led by Chairman of the People's Committee of Ho Chi Minh City Phan Van Mai visited and had working sessions in the Republic of Korea and Japan.

During the over-a-week-long trip, the city’s working delegation visited leading cities in Asia, where major businesses from the region and around the world are operating.

At the meeting with local leaders and big enterprises from both countries, Chairman Mai shared the Resolution 98/2023/QH15 of the Vietnam National Assembly on the pilot implementation of special mechanisms and policies for the development of Ho Chi Minh City.

Besides, the city leader also called for businesses and investors from both countries to look for cooperation opportunities and promote new projects in Ho Chi Minh City.

Via each meeting, based on the strengths of each locality and the presence of each business, the Chairman of the Municipal People's Committee shared information and invited businesses to come to Ho Chi Minh City.

During a visit to Mitsubishi Electric Nagoya Works Company in Japan, which currently has over 7,500 employees and specializes in manufacturing chain products related to production automation, Chairman Mai called for the company to conduct research and extend more investment in Ho Chi Minh City, particularly in the field of semiconductor electronics industry being the company’s strength.

Chairman Phan Van Mai affirmed that Ho Chi Minh City is ready to welcome and support investors throughout their investment processes, comprising both new investment projects implementation and production expansion.

During a meeting with the leaders of the Korea Enterprises Federation (KEK) and nearly 30 Korean businesses, Chairman Mai emphasized that the leaders of Ho Chi Minh City committed to continuously improving the investment and business environment, as well as creating favorable living conditions.

In addition, the city is always ready to listen to and resolve any difficulties and obstacles faced by investors in order to make Ho Chi Minh City the best destination for foreign investors, including Korean enterprises.

Upon grasping the policies, potentials and strengths that Ho Chi Minh City offers, leaders of localities and many Japanese and Korean businesses expressed their willingness to expand their factories and invest in new fields in the city.

Representatives of the Korea Enterprises Federation and businesses expressed their satisfaction with the new mechanisms and policies implemented by Ho Chi Minh City.

Vice Chairman of Samsung Engineering Co., Ltd. Han Sangdeok shared that the company is prioritizing research and investment in the North Saigon Wastewater Treatment Plant project, aiming at building a modern and advanced urban wastewater treatment plant for Ho Chi Minh City through a public-private partnership (PPP) form.

Representatives of the Japan International Cooperation Agency (JICA) also agreed with the leader of Ho Chi Minh City to accelerate the completion of Metro Line No.1 in order to put it into commercial exploitation by 2024.

Besides, leaders of the JICA affirmed that the agency would be willing to support Ho Chi Minh City with all of its efforts to well implement the Metro Line No.1 project together with the second phase of the Ho Chi Minh City Water Environment Improvement Project which is in its final phases.

Japanese investors emphasized that Ho Chi Minh City had great potential and advantages for strong development in various areas, especially in urban transportation infrastructure, healthcare, education and so on. They expressed their desire to enhance cooperation and investment in Ho Chi Minh City in the coming time.

The leader of Ho Chi Minh City also performed working visits to foreign countries in order to strengthen diplomatic relations and promote cooperation in various fields, including the field of economics.

Particularly, at the end of August 2023, Chairwoman of the Ho Chi Minh City People's Council Nguyen Thi Le led a delegation of HCMC visited and worked in Cuba and the United States.

During the visits, Chairwoman Nguyen Thi Le met with leaders of localities and top businesses from both countries to exchange ideas and explore opportunities for cooperation in cultural, healthcare and education sectors.

During the working session with the Government of New York City, Chairwoman Nguyen Thi Le said that Ho Chi Minh City and New York City are economic and cultural centers of their countries. This would be a foundation to implement collaborative programs, mutually develop and share experiences in urban management, re-development and financial center development; models, ideas, and New York's experiences in building and managing financial centers.

Chairwoman Nguyen Thi Le expressed her confidence ahead the comprehensive cooperation between Ho Chi Minh City and New York City, especially in the economic and urban management sectors which would enhance connectivity and accessibility for businesses from both sides to potential markets.

Mr. Edward Mermelstein, New York City’s Commissioner for International Affairs affirmed that New York City is ready to share its experience in building an international financial center, in science and technology and high-quality human resource training with Ho Chi Minh City.

Additionally, he expressed his desire to connect entrepreneurs from both cities to strengthen trade exchanges.

Economic locomotive accelerates

The city is committed to 'accelerating progress and surmounting obstacles' in the pursuit of the socio-economic objectives for 2024, aiming to implement goals outlined in Resolution XI of the HCMC Party Committee and Resolution 31 of the Politburo.
 Ho Chi Minh City is increasingly developing.

With the spirit of 'HCMC for the nation, with the nation,' the city is committed to 'accelerating progress and surmounting obstacles' in the pursuit of the socio-economic objectives for 2024, aiming to implement goals outlined in Resolution XI of the HCMC Party Committee and Resolution 31 of the Politburo. The challenges ahead in the new year are formidable, necessitating exemplary leadership and a strong sense of responsibility to further uphold the resilient revolutionary tradition, foster solidarity, and overcome all obstacles in achieving the set objectives and tasks.

In the past year, the HCMC's Gross Regional Domestic Product (GRDP) reached approximately 5.81 percent, falling short of the planned target (7.5-8 percent). However, upon closer examination of the year-long growth trajectory, the achieved results are indeed noteworthy. The city's growth experienced a significant rebound, with each successive quarter outperforming the previous one: a modest 0.7 percent increase in the first quarter, followed by a surge to 5.87 percent in the second quarter, an acceleration to 6.71 percent in the third quarter, and a breakthrough to around 9.6 percent in the fourth quarter.

Previously, the city anticipated challenges from both external and internal factors and set forth tasks and solutions to drive socio-economic recovery and development. However, the challenging and unfavorable elements surfaced more frequently and grew more intricate. Some exceptionally serious incidents went beyond projections, and the city, akin to a 'patient in the recovery phase' (post-Covid-19 pandemic), encountered unexpected setbacks and adverse conditions. In the first quarter of 2023, growth plummeted to a record low of 0.7 percent (ranking among the lowest nationwide), dealing a substantial blow to the city's economic landscape.

In the face of these difficulties, the city continued to promote its resilient revolutionary tradition of a heroic city and garnered solidarity, consensus, effort, and creativity from both the political system and the business community and residents. Concrete strategies and immediate solutions have been implemented to confront challenges directly. The city's leadership, including the Permanent Committee of the HCMC Party Committee and the Standing Committee of the HCMC Party Committee, has demonstrated the utmost determination in guiding, directing, and managing socio-economic development. They have actively participated in oversight, tackling challenges, clearing obstacles, and unlocking social resources. Consequently, the city has not only propelled socio-economic recovery and development but has also achieved noteworthy outcomes.

Upon actively embracing Resolution 98 of the National Assembly, the city promptly translated the resolution into practical initiatives, yielding preliminary results. To date, the HCMC People's Council has issued over 20 resolutions detailing the implementation of key aspects of Resolution 98, covering critical areas such as poverty reduction, employment solutions, socio-economic infrastructure investment projects, key projects, social investment attraction, and organizational reforms. Capitalizing on these new mechanisms and policies, the city can mobilize additional resources from domestic and international sources to address bottlenecks in socio-economic structural infrastructure, alleviate traffic congestion and flooding, and build more schools, modern hospitals, sports centers, and cultural facilities.

For 2024, the city has adopted the theme ‘Determination to effectively implement digital transformation and Resolution No.98/2023/QH15 of the National Assembly.' Within this framework, digital transformation is recognized as a pivotal driver for sustainable development and in-depth growth, with a groundbreaking and more effective approach. Consequently, the city has outlined specific plans to implement measures for the development of digital economy and digital society, and digital governance to better serve the needs of citizens and businesses.

Regarding Resolution 98, the city has taken proactive steps in preparation and execution, creating a positive energy for growth. Initially, the new mechanisms and policies not only contribute to alleviating bottlenecks but also create conditions to attract social resources, along with public investment, to stimulate growth.

Yet, to achieve the 7.5 percent growth target for 2024, Associate Professor - Dr. Tran Hoang Ngan, NA delegate and Member of the Economic Advisory Group to the Prime Minister, also said that the city would have to significantly ramp up the disbursement of public investments. This strategy is expected to positively influence the attraction of social and foreign investment capital, playing a pivotal role in realizing the growth objective.

Associate Professor - Dr. Tran Hoang Ngan analyzed that, despite grappling with challenges both externally and internally, the commendable disbursement outcomes in public investment for 2023 (approximately VND48 trillion, 1.8 times higher than the previous year) clearly reflected the city's endeavors. These lessons must be consistently applied, particularly in the meticulous and timely preparation of documentation, early preparation of the construction site, and the active involvement of the Standing Committee of the HCMC Party Committee in monitoring and resolving impediments—all geared towards expediting the disbursement of public investment capital. Furthermore, the city should continue to efficiently address lingering issues and maximize opportunities while emphasizing individual responsibility at the leadership level.

Secretary Nguyen Van Nen of the HCMC Party Committee consistently emphasizes that at every level, department, and locality, especially among the leaders of party committees and authorities, there is a need to carry out tasks accurately and effectively within their organizations, units, and individual capacities. This collective effort is crucial for common goals and shared interests, enabling the city to overcome challenges, achieve significant breakthroughs, and contribute to the overall development and enhancement of the material and spiritual aspects of people's lives.

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