The industrial real estate sector has good prospects in 2023 due to short supply, a shift in the supply chain to Vietnam and its favourable investment policies, experts said.

The Southeast Asian nation has witnessed a wave of foreign manufacturers shifting production to Vietnam's shores over the past year, which is expected to rise.

The Danish toy production company LEGO Group poured 1 billion USD to build a manufacturing plant in the southern province of Binh Duong last year. The project, which has a total investment of more than 1 billion USD, is expected to become operational by 2024, creating about 4,000 jobs.

The Republic of Korea’s electronics giant Samsung has announced plans to increase its investment in Vietnam to 20 billion USD, focusing on artificial intelligence, big data and other areas.

LG Corporation is planning to invest 4 billion USD in Vietnam with the goal of making the country a future smartphone manufacturing hub.

According to experts, investment in industrial zones (IZ) in Vietnam is attractive for several reasons. Firstly, the Vietnamese dong has undergone a lower depreciation than the currencies in the region such as Indonesia, Thailand, India and Malaysia.

Vietnamese investment policies are also a factor. To attract more investors, Vietnam has offered many incentives including corporate income tax exemptions for the first four years of operation, reducing corporate income tax by a half in the next five years and other preferential policies.

The rental price for industrial land in Vietnam, which is about 30-36% lower than that in Indonesia and Thailand, is another advantage, they said.

A survey by Colliers, a leading real estate professional services and investment management company, showed that the average rent for land in Indonesia’s industrial parks such as Tangerang, Bogor-Sukabumi and Bekasi is 164 USD per square metre, 36% higher than that in industrial hubs in Vietnam like Binh Duong, Dong Nai, Bac Ninh and Hai Phong.

The rental price for industrial land is expected to rise when new industrial parks are put into operation. However, insiders said that there will be a scarcity in the supply of this kind of real estate this year.

They attributed this to difficulties in site clearance and legal obstacles in converting rubber plantation land to industrial park land in many localities.

The strict control of agricultural land conversion in line with the Government’s Resolution No. 115/NQ-CP is also a problem. This is an important part of the national land use plan for the 2021-2025 period.

Vietnam-Yunnan province (China) trade ties below potential: Official

Despite the high cooperation potential, trade between Vietnam and Yunnan province of China has remained modest at only 3.2 billion USD in 2022, a very small amount of the 175.6 billion USD in trade between Vietnam and China in the year, according to Vu Ba Phu, Director of the Trade Promotion Agency under the Ministry of Industry and Trade (MoIT).

Speaking at a recent Vietnam-China trade, investment promotion forum, Phu highlighted the important role of Yunnan, which borders four northern localities of Vietnam, in the economic and trade partnership between the two countries.

Located in the Kunming-Lao Cai-Ha Noi-Hai Phong-Quang Ninh economic corridor, Yunnan is also a bridge for Vietnamese products to enter deeper into the Chinese market, he said.

However, Phu pointed out that trade between Vietnam and the province with a population of 47 million has yet to match their potential.

The official proposed that the two sides continue to closely coordinate with each other and substantively and effectively implement the Memorandum of Understanding between the Trade Promotion Agency and the Departments of Industry and Trade of 12 provinces and cities of Vietnam and the Department of Commerce of Yunnan province

It is necessary to organise rotary trade promotion delegations twice a year in Hanoi and Kunming, he said, stressing the need to encourage businesses to join major trade fairs and exhibitions in each country.

The official also asked the Yunnan side to create favourable conditions for Vietnamese firms to increase export of farm produce and aquatic products to the Chinese market through official channels, and pledged that Vietnam is ready to assist exporters of Yunnan and other Chinese localities to export their products to a third country through Hai Phong and Quang Ninh ports.

Li Chenyang, Director of the Commerce Department of China's Yunnan province, noted that in the 2016-2020 period, trade between Vietnam and Yunnan grew 18.7% on average. The figure has dropped from 2019 due to COVID-19 impact, he said.

Li underlined that 2023 is an important year for the two countries to deepen their partnership.

He said that in order to expand trade cooperation, the two sides should increase meetings and explore each other's market through trade fairs and exhibitions.

Yunnan has opened its trade representative office in Hanoi, aiming to promote cooperation between businesses of both sides, he said.

Canada workshop explores business opportunities in Vietnam

The Vietnam-Canada Business Association in Vancouver held a workshop on February 18 to give Canadian businesses insights into the Vietnamese market.

Hundreds of businesses, mostly Vietnamese Canadians, attended the event.

In his opening address, Nguyen Quang Trung, consul general of Vietnam in Vancouver, briefed participants on Vietnam’s recent socio-economic developments, especially its initial success in containing the COVID-19 pandemic and rebooting the economy.

He said the government’s economic recovery efforts brought about encouraging results, with the country’s GDP growth expanding by 8.02% last year, far exceeding the set target and the highest growth rate in the region as well as in the past 11 years.

Participants raised a range of questions concerning the business climate in Vietnam.

Robert King, an expert of Ernst & Young in Vietnam, talked about Vietnam’s tax policy, noting the tariffs there are currently the lowest compared to ASEAN countries. He encouraged Canadian businesses to invest in Vietnam supported by the country’s geographical location, investment incentives and benefits from a number of free trade agreements it has signed.

Tran Thu Quynh, head of the Vietnamese Trade Office in Canada, talked about Vietnam’s strengths in attracting investment, including e-commerce, and affirmed that the Vietnamese Trade Office in Canada will support Canadian businesses to invest in Vietnam to the maximum.

The workshop also saw representatives of HSBC and Felix share experience in applying cashless payment in transactions, thereby supporting Canadian firms in doing business in Vietnam.

Vietnam is one of Canada’s leading trading partner in Southeast Asia. Despite global economic recession, two-way trade between Vietnam and Canada hit CAD10.5 billion in 2021 and CAD11 billion in 2022.

Vietnam and RoK businesses to boost trade connection

The administration of Nonsan City (Republic of Korea) and three businesses from Ho Chi Minh City signed a document of co-operation on the import and export of agricultural products at a ceremony on February 17.

The deal will see Nonsan cooperate alongside three local firms, including Annam Gourmet, Imexco, and Farmers Market, to export Korean agricultural products to the Vietnamese market, as well as to ship Vietnamese products to the RoK market, between February 2 and January 2025.

Ginseng, strawberries, fish sauce, grapes, apples, pears, persimmon, and sweet potatoes will be among the import-export items.

The two sides will also exchange information, transfer technology and techniques for growing and processing high-tech agricultural products.

Nonsan will provide financial support in order to promote Vietnamese agricultural products there, including freight costs, the cost for sales promotion activities, high technology transfer, and a marketing campaign.

Both sides will also push for more cooperation in the exchange of human resources to develop projects in both Vietnam and the RoK, and to accelerate Korean investments in Vietnam in various fields.

Pharmaceutical firms post great profits last year
     
Last year, rising demand for drugs, especially antibiotic products and products for disease prevention and strengthening immune systems after the COVID-19 pandemic, contributed to the success of several pharmaceutical enterprises.

Particularly, OPC Pharmaceutical JSC set a record profit with a net profit of VND142.4 billion (US$6 million) in 2022, a 15.4 per cent increase over the previous year. It has exceeded 2 per cent of the company’s revenue target and 3 per cent of its profit target for the year.

Imexpharm and DHG Pharmaceutical also reported a record profit after tax of VND234 billion and VND988 billion, respectively, with all exceeding their yearly plans.

Pharbaco is also one of the pharmaceutical enterprises that saw large profits last year when it posted a profit after tax of more than VND62 billion, a gain of 125 per cent year-on-year and exceeding 15 per cent of the set plan. Meanwhile, Traphaco reported a net profit of VND293.4 billion, up 11 per cent on-year.

Some other enterprises in the same industry that also recorded positive business results last year were SPM, Binh Dinh Pharmaceutical and Medical Equipment, CPC1, and Pharmedic, with profit growth of 12-29 per cent.

Higher demand for drugs is one of the reasons many pharmaceutical companies explain their favourable business results in 2022.

However, SSI Research said that the industry's growth will be capped this year and profits fall before gradually picking up. The pharmaceutical industry's revenue is still expected to increase by 8 per cent to VND169 trillion in 2023.

The first half of 2023 will be an unpredictable period for the supply of active pharma ingredients (APIs) and excipients, as about 65 per cent of APIs used in drug production in Viet Nam are from China, which reopened last year, but shortages are still possible, SSI said.

In addition, as the war between Russia and Ukraine causes a risk of shortages of active ingredients and drugs imported from Europe, companies that can use domestic raw materials will gain a better position, typically TRA.

One of the year's standout stories, according to the analyst team, is the ongoing race for quality upgrades at major pharmaceutical companies.

Many companies, such as Traphaco, DHG Pharmaceutical, and Binh Dinh Pharmaceutical and Medical Equipment, are aiming to meet EU GMP standards for their production facilities. Products manufactured at a factory meeting EU GMP standards will be considered in the group of the highest-quality drugs in public hospital tenders.

Domestic companies hope to bid on products at higher prices than before but still lower than many imported drugs in this group. According to estimates by SSI Research, only 6 per cent of drugs in group 1 are produced domestically; the rest are mainly imported.

Upgrading to EU GMP will also help improve product quality and enhance competitiveness. SSI Research said that as of January, only eight Vietnamese companies owned production lines that met EU GMP or equivalent standards.

However, with high initial investment and maintenance costs, stringent requirements, and lengthy approval times, companies will have to consider pursuing this race or investing in other segments to get better profits.

On the stock market, Agriseco Research recommends investing in pharmaceutical stocks this year thanks to their defensive nature, stable business, and essential demand.

According to Fitch Solutions, it is forecasted that Vietnamese pharmaceutical industry revenue will grow steadily by 6.72 per cent in 2022–2026, boosted by growth in people's health spending. 

Material shortage seen setting back cross-nation expressway project

The total quarrying capacity of companies licensed to supply building materials for the North-South expressway is below demand, leading to some components of the expressway possibly falling behind schedule.

According to the Transport Construction Investment Management Authority under the Ministry of Transport, some 10 components of the North-South expressway in the 2021-2025 period from Ha Tinh to Khanh Hoa provinces will need 71.35 million cubic meters of rock, sand and soil.

However, the material suppliers cannot meet the demand, said a representative of the Transport Construction Investment Management Authority.

Expressway construction projects will be short of around 20 million cubic meters of sand, rock and soil in total in the coming time given the current mining capacity of the active companies.

Earlier, the Ministry of Natural Resources and Environment told localities to remove hindrances to the mining of construction materials. But these localities are concerned about time-consuming procedures to take back land at quarrying sites.

The Ministry of Transport has proposed the Government urge provinces to add soil and sand mines to their zoning plans to make them available for mining by the contractors upon execution of the projects.

Retail bike chains anticipate brighter future

After two years of constant growth, the retail bicycle market is undergoing a slowdown as demand takes a dip, yet investors are still betting on bikes as a venture with long-term potential.

A recent report by Metric.vn on the 2022 online retail bicycle market was compiled with sales data derived from popular e-commerce sites such as Shopee, Tiki, and Lazada. The report indicated that the total revenue from the children's bike market was worth $1.7 million, showing an 11.3 per cent jump on-year. A similar growth pattern took place at physical retail stores.

Nevertheless, bike retail is still deemed a market with potential, with venture funds considering pumping serious money into developing the sector in the Vietnamese market.

Peter Nguyen, CEO of Blue Circle JSC, the owner of bike stores Xedap.vn and Xedien.vn, noted that kid's bikes represent the most vibrant segment in the market as families often buy as many as three bikes per child, between the ages of one to 15 years old.

Xedap.vn became known in Vietnam from 2016 as the official distributor of Giant International, the world’s leading sports bike brand. Blue Circle has been building up the Xedap.vn brand since 2019, and now consists of more than 20 shops mainly in major cities such as Danang, Hanoi and Ho Chi Minh City. The company has simultaneously stepped into electric bike trading with its Xedien.vn brand.

Blue Circle has just received a fresh capital injection from private equity fund Excelsior Capital Asia to feed its ambition to open more than 100 shops throughout Vietnam in the forthcoming years. Beyond that, Blue Circle aims to invest in advanced tech platforms as they strive to make bicycles the quintessential accessory for urban families in the not too distant future.

Despite high demand, the major global players in the bike market possess just 10 per cent of the market share, with 90 per cent slice held by independent traders without a well-conceived expansion plan.

The second half of the year is the usual peak period for bike trading, thanks to the start of the school year start and annual end of year retail boost.
Some investors consider this an opportunity for new players to join the fray and push for a larger share of the market.

Early last year, top retail chain The Gioi Di Dong (MWG) entered the arena with its new brand AVA Cycle, one of five chains belonging to the AVA World ecosystem.

MWG had previously developed the chain of bike shops in several southern locations in Ho Chi Minh City, where the bikes were sold out of its Dien May Xanh stores. MWG has since grown the brand to move away from the ‘shop-in-shop’ model to open stand-alone AVA Cycle stores.

Currently, AVA Cycle operates 158 shops selling a diverse range of bikes and associated accessories.

At the time of the AVA Cycle launch, MWG CEO Doan Van Hieu Em said that bike shops operating out of Dien May Xanh stores sold an average of 10–15 bikes a day. With current sales trajectories and an average bike price of $130 per unit, MWG expects to rake in $174 million in revenue from bike trading alone in the first year.

The retail bicycle market often grows parallel to the pace of urban development, which averages 15 per cent per year. Currently, an estimated 2.5 million bikes are purchased in Vietnam each year, with a total market value approaching $326 million. The second half of the year is the usual peak period for bike trading, thanks to the start of the school year start and annual end of year retail boost.

Fresh proposals made in national airport system draft

The Civil Aviation Authority of Vietnam has just sent a report to the Ministry of Transport (MoT) on the results of reviewing the national airport system development master plan for the period from 2021-2030.

This is latest draft plan after the state-owned aviation management authority (CAAV) and the consulting unit Transport Engineering Design Inc. (TEDI) received guidance from the MoT and worked with relevant localities.

The latest point in this draft is a proposal to supplement the planning with two domestic airports, Thanh Son in Ninh Thuan province and Bien Hoa in Dong Nai province in the south.

Accordingly, from 2021-2030 Thanh Son would have a capacity of 1.5 million passengers per year, increasing to three million passengers per year by 2050, meanwhile Bien Hoa airport would have a capacity of five million passengers per year, increasing to 10 million by 2050.

“The condition for converting Thanh Son and Bien Hoa current military airports into dual-use operation following the airport model is attracting investors for building these airports with social capital,” said Dinh Viet Thang, head of the CAAV.

The CAAV said that it has worked with the people's committees of the relevant provinces on adding their new airport planning to the national airport network planning scheme and have reported the working results to the MoT.

For the group of localities that have military airports, the CAAV proposes to continue surveying and evaluating the ability to convert existing military airports into dual-use airport model, including Yen Bai and Gia Lam airports and report to the prime minister for consideration when having necessary,

For the group of localities currently not having airports, the CAAV proposes to continue surveying and evaluating the possibility of planning new airports in the localities with long-term potential for development of tourism, services, and report to the PM for consideration.

Notably, the CAAV recommends updating the land area of ​​airports based on the aforesaid research in the national airport system planning records.

After the update, the total planned land area of ​​airports in the national airport system master plan in the period to 2030 will increase from 20,378ha to 23,831ha

If the proposals are approved from 2021-2030, the country will accommodate 30 airports, including 14 international airports.

Two domestic airports that have never appeared in previous plans, Thanh Son and Bien Hoa, will be formed from the conversion of Thanh Son and Bien Hoa current military airports to dual-use operation following the airport model.

From 2021 to 2030, the planned position of Haiphong International Airport will be maintained in Tien Lang district, Haiphong city, as approved by the PM.

“The location and planning criteria of the second airport in Hanoi to support Noi Bai International Airport will be studied and determined before 2030, and the planning criteria of Haiphong International Airport will be studied and determined in the period after 2030,” said the CAAV leader.

The total investment in the development of the airport system by 2030 is estimated at $17.4 billion, to be mobilised from the state budget, and other capital sources.

Hai Duong targets $400 million in FDI in 2023
     
The northern province of Hai Duong has set a target to attract US$400 million in foreign direct investment (FDI) in 2023, according to Vice Director of the provincial Department of Planning and Investment Nguyen Duy Hung.

The locality licensed five new FDI projects worth $15.8 million in January. Meanwhile, $5.6 million was added to three existing projects.

Hung said that the locality will speed up work on the province's master plan in the 2021-30 period, with a vision of 2050 as a basis for building priority criteria to attract investment projects, especially the planning of a key industrial zone for large-scale, modern and environmentally friendly investment projects.

It will focus on maximising resources to develop synchronous and modern socio-economic infrastructure networks and accelerate the construction of infrastructure of industrial parks such as Dai An, Tan Truong, Phuc Dien, An Phat 1, Kim Thanh, and Gia Loc, and other industrial zones and clusters in the area.

The locality will renew investment promotion methods with priority given to investors in the Republic of Korea (RoK), Japan, the US and Europe; speed up administrative reform; and optimise communication channels to approach investors, Hung added.

Last year, as many as $368.1 million in FDI was poured into Hai Duong, up 15.3 per cent year-on-year.

The locality is home to 498 foreign-invested projects with a total investment of over $9.2 billion from 26 countries and territories. The projects have created jobs for over 220,000 direct workers and thousands of indirect labourers. 

Dong Thap applies industry 4.0 technologies for smart tourism development

The People's Committee of Dong Thap Province has just issued a plan of implementing the project on the application of industry 4.0 technologies in smart tourism development.

Besides, the Mekong Delta province sets a target of promoting local tourism as a major economic sector in the period of 2023-2025, with an orientation to 2030.

By 2025, Dong Thap Province will strive to develop a smart tourism ecosystem through the application of artificial intelligence, complete the existing technology application platform to serve tourists and state agencies in the field of tourism, integrate utility applications for tourists and others related to tourism, build and complete products under the industry 4.0 technology application to enhance the experiences and be appropriate with the consumption of tourists.

Work on Vĩnh Thạnh IZ to start in June

Construction of Vĩnh Thạnh Industrial Zone (IZ) in the Cửu Long (Mekong) Delta City of Cần Thơ will begin in June, Trần Việt Trường, chairman of the municipal People's Committee has said. 

The IZ, worth over VNĐ3.71 trillion (US$160 million), will be developed in Vĩnh Trinh Commune, Vĩnh Thạnh District. It will cover an area of 293.7ha in the first phase. 

Cần Thơ City is now home to seven IZs, namely Trà Nóc 1, Trà Nóc 2, Thốt Nốt, Hưng Phú 1, Hưng Phú 2A, Hưng Phú 2B and Vĩnh Thạnh with a planned area of over 1.000ha, thanhnien.vn reported. 

The online newspaper cited Vice Chairman of the committee Dương Tấn Hiển as saying that these zones had thus far attracted 256 investment projects worth a combined $1.6 billion.

Vietnamese, Dutch firms look to step up business cooperation

The Dutch Business Association Vietnam (DBAV) and the Netherlands-Vietnam Chamber of Commerce (NVCC) have jointly hosted a get-together in Amsterdam for representatives of Dutch businesses operating in Vietnam and Vietnamese firms investing in the Netherlands.

Addressing the event, Vietnamese Ambassador to the Netherlands Pham Viet Anh briefed on Vietnam’s socio-economic development achievements in 2022, especially bright spots in trade and investment cooperation between the two countries.

Last year, the Netherlands was the European Union (EU)'s largest investor and the eight biggest foreign investor in Vietnam with 410 projects worth 13.7 billion USD. Two-way hit 11.1 billion USD, up 32.6% year-on-year. The European country was one of the markets where Vietnam enjoyed trade surplus in 2022.

The diplomat attributed the positive results to contributions made by the two countries’ business communities.

He spoke highly of DBAV and NVCC's activities over the years, saying that with innovation and creativity in 2022, they have attracted the participation of many businesses from the two countries.

The embassy always accompanies and supports the activities of DBAV and NVCC, the diplomat said.

Edo Offerhause, General Manager of NLinBusiness, a centre under the Confederation of Dutch Business, congratulated DBAV and NVCC on their strong development, saying that the organisations have greatly supported Dutch businesses investing in Vietnam and Vietnamese firms operating in the Netherlands.

NLinBusiness will continue to provide directional and financial support to the organisations’ operations in both nations, he said.

Conference discusses support for Vietnamese businesses in Cambodia in removing difficulties

The Vietnamese Embassy in Cambodia on February 14 organised a meeting with Vietnamese businesses operating in Cambodia to discuss measures to help the businesses tackle obstacles to their investment and business.

Speaking at the meeting, Vietnamese Ambassador to Cambodia Nguyen Huy Tang said that although the year 2022 saw challenges, Vietnamese businesses continued to “stand firm” and overcame challenges, making an important contribution to promoting economic relations between Vietnam and Cambodia.

The Ambassador expressed his belief that in 2023, with the COVID-19 pandemic under control, Cambodia will continue to reopen strongly and focus on restoring and developing the country, which pave the way for Vietnamese investors in the country to gain successes in their business and investment.

At the conference, units under the Embassy and the Vietnam Business Club in Cambodia (VBCC) provided the latest information on Cambodia’s economic development, its investment attraction policies, Vietnam-Cambodia cooperation as well as Cambodia’s latest policies in taxes, labour code, investment policies for Vietnamese businesses.

Representatives of Vietnamese businesses raised problems they face when investing and doing business in Cambodia, calling on competent authorities of the two countries to help them to solve the problems.

Ambassador Tang affirmed that the embassy will collect the recommendations and proposals of businesses and submit them to the 20th Vietnam-Cambodia Joint Committee Meeting and the 12th Conference on Cooperation and Development of Border Provinces between the two countries in 2023 for consideration and settlement.  

In 2022, Vietnam-Cambodia bilateral trade turnover increased by nearly 11% to 10.58 billion USD.

Regarding investment, in 2022, Vietnam had 12 new investment projects in Cambodia with a total registered capital of 7 million USD, while 23 million USD was added to existing projects. 

As of the end of 2022, Vietnam had 205 valid investment projects in Cambodia with a total registered capital of 2.94 billion USD, making the country the fifth largest foreign investor and the largest ASEAN investor in Cambodia.

Vietnam, Japan boost cooperation in oyster production chains

Vietnam has great potential and advantages to develop oyster production chains, experts said at a conference on aquaculture technology organised in Ho Chi Minh City on February 14 by the Japan International Cooperation Agency (JICA).

Speaking at the conference, Dinh Xuan Lap, an expert from International Centre for Aquaculture & Fisheries Sustainability (ICAFIS) said that Vietnam's aquaculture in general and mollusk farming in particular has changed positively from self-sufficiency, small-scale production to export-oriented commercial production. 

Vietnam's mollusk products are exported to 50 markets around the world including the EU, the US, Japan, Malaysia, Mexico, and Australia.

With more than 3,260 km of coastline and many areas that are favourable habitats for bivalve mollusks, Vietnam has advantages to raising oysters. 

Currently, the country has about 3,200 ha of oyster farming across 24 coastal provinces and cities, but it is a very modest figure compared to its potential, Lap said.

Increasing demand for oysters in both Vietnam and other countries creates motivation for oyster farmers to invest in their farming, Lap said, adding that however, Vietnamese oyster farmers face limitations relating to farming technology, breeding source, and water management for oyster farming.

Ihara Hidenori, Deputy Chief Representative of the JICA Office in Vietnam, said that from June 2022, JICA and Yamanaka Inc (Japan) have surveyed the feasibility of applying farming technology in raising oyster for raw eating and sanitary management technology to promote oyster farming in Vietnam’s Khanh Hoa province. 

Through the project, Japan wants to spread the technology of oyster farming with added value and high productivity, helping to increase income for aquaculture farmers in Vietnam in the future, he said.

Takada Shinji, Director-General of Yamanaka Company, said that Japan has the experience and high-quality oyster farming techniques, and can support Vietnam to develop oyster production chains in the time to come.

Binh Phuoc moves to improve FDI capital quality, effectiveness

The southeastern province of Binh Phuoc had targeted to draw in 2-2.5 billion USD in foreign direct investment (FDI) during the period from 2021 to 2025 and 5-6 billion USD from 2026 to 2030.

This is part of the province’s action plan on completing institutions and policies to improve the quality and effectiveness of its cooperation with foreign investors towards 2030. 

According to the provincial People's Committee, when attracting FDI, the province attaches importance to the quality of projects, giving priority to competent and prestigious investors and projects that use using modern technologies and leave a little negative impact on the environment.

The province also targets to disburse about 1.2-1.3 billion USD of FDI capital during the period 2021-2025 and about 3.5-4.2 billion USD during the period of 2026-2030.

It targets to have 50% of enterprises using advanced technologies, modern management, and environmental protection by 2025 and 100% by 2030. The localisation rate will increase from 20-25% to 30% in 2025 and 40% in 2030.

To reach the targets, the province plans to offer further support to small and medium-sized enterprises in start-up, innovation, connection with foreign investors, and cooperation in technology transfer.

It also seeks solutions to develop and boost the linkages between foreign investment and domestic investment. It plans to give priority to some key areas and develop value chains of key products to increase added value and competitiveness of the products in domestic and foreign value chains.

The province will implement synchronously and effectively government mechanisms and policies to create favourable conditions for businesses in transferring and applying science and technology to production. This is especially for technologies from abroad, gradually moving towards technological autonomy and participating in global value chains as well as helping to improve the technology absorption capacity of local organisations, individuals and businesses.

By now, Binh Phuoc province has planned 13 industrial parks with a total area of more than 6,000 hectares. Out of the 13 industrial parks, 12 have been put into operation, attracting 366 projects with a total capital of more than 3.5 billion USD of FDI and more than 12 trillion VND (508.26 million USD) of domestic capital.

VinFast to join 2023 Canadian International AutoShow

Domestic auto-maker VinFast, a subsidiary of Vietnamese conglomerate Vingroup, on February 14 announced that it will join 2023 Canadian International AutoShow (CIAS 2023) in Toronto from February 17-26.

As the biggest consumer auto show held annually in Canada over the past 50 years, CIAS 2023 will see the presence of more than 1,000 models and nearly 330,000 visitors.  

This is the second time VinFast has participated in an international auto show in Canada, following the Montreal International Auto Show (MIAS) 2023 in Quebec from January 20-29.

VinFast will bring four key electric vehicle models with basic sizes to meet the diverse needs of customers. The cars included in the show are the small - VF 6, small and medium - VF7, mid-size - VF8 and large - VF9 with three spacious rows of seats.

As scheduled, the first batches of VF8 vehicle will be delivered to Canadian customers from the second quarter of 2023, before the delivery of VF9. The two newest models, VF7 and VF6, are expected to be available in the Canadian market late 2023 or early 2024.

Vietjet opens HCM City - Sydney route

Vietjet has announced it will launch a new direct route connecting Ho Chi Minh City and  Sydney, Australia from April.

The airline will operate the new route from April 12, with six flights per week. The flights from Ho Chi Minh City to Sydney every Wednesday, Friday and Sunday take off at 7:30 pm and land at 7:20 am (local time). The flights from Sydney to Ho Chi Minh City on every Monday, Thursday and Saturday take off at 10:15 am and land at 4:30 pm (local time).

Jubilantly welcoming Australian routes, Vietjet offers tens of thousands of promotional tickets from only 0 VND, excluding taxes and fees, for passengers during the golden week from February 14 to February 20, applicable to both routes connecting Ho Chi Minh City with Melbourne/ Sydney (Australia) at www.vietjetair.com and Vietjet Air mobile app, with a flexible flight period from now until October 29, 2023.

Ministry of Transport calls for stronger oversight on construction projects

The Ministry of Transport has released a written directive urging local Departments of Transport, the Airports Corporation of Vietnam, and the Vietnam Expressway Corporation to enhance their management, inspection, and supervision of construction investment projects.

The directive highlights the need for closer attention to the quality and efficiency of such projects, particularly expressway projects.

Although the ministry acknowledges the dedicated efforts of its agencies and units to ensure the success of previous construction investment projects, including the expressway projects, it notes that challenges persist in areas such as land clearance, sourcing of raw materials, rating systems, and progress.

The Ministry of Transport proposed agencies and units to manage and implement projects in absolute compliance with the provisions of the law on construction investment.

They must strictly implement the directives of the Minister of Transport related to quality management, construction progress, discipline and responsibility in investment management and construction of transport infrastructure.

The Ministry of Transport requires investors and project management boards to comply with the law's provisions in selecting contractors.

They must strictly comply with regulations on the preparation, negotiation and signing of contracts, ensuring strict, complete and clear provisions on rights and responsibilities of related parties, especially content of price adjustment.

To strengthen the management of contractor selection, the Ministry of Transport also assigned the Transport Construction Investment Management Authority to assume the prime responsibility for working with the Public Procurement Agency of the Ministry of Planning and Investment to clarify the bases and regulations related to acts of illegal transfer of contractors (if necessary) as a basis for inspection and supervision.

The Ministry of Transport wants investors and project managers to work closely with local authorities on site clearance and licensing procedures. They must follow the law, increase mining capacity, and review material plans for construction.

In the process of management and supervision, contractors are forbidden from using materials of unknown origin or quality for project construction.

The ministry also requires the advance and payment of main contractors to subcontractors be timely and follow regulations to ensure the progress and quality of the project.

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