Many localities in the Mekong Delta region are focusing on attracting investment and developing renewable energy projects, helping to solve energy security issues and driving socio-economic breakthroughs in the region.

Energy transition is an indispensable factor for achieving sustainable development and adapting to climate change in Vietnam in general and the region in particular.

Minister of Industry and Trade Nguyen Hong Dien assessed the energy industry as a spearhead for the development of the region. However, given its characteristics as a young delta susceptible to climate change, the industry must focus on clean and renewable energy sources.

Assoc. Prof. Dr. Nguyen Dinh Tho, Director of the Institute of Strategy and Policy on Natural Resources and Environment, also held that the Mekong Delta has the advantage of developing renewable energy, making it a key area for Vietnam to achieve net-zero emissions by 2050 as pledged by the Prime Minister at the 26th United Nations Climate Change Conference of the Parties (COP26).

With a coastline stretching about 700 km, a vast exclusive economic zone of up to 360,000 km2 and strong coastal winds, the potential for offshore wind energy exploitation across the delta can reach between 1,200 MW and 1,500 MW.

The German Agency for International Cooperation (GIZ) reported that the entire region annually receives an average of 2,200 to 2,500 hours of sunshine. More than 90% of the total days in a year see the delta receiving sufficient sunlight to operate solar energy panels, with average radiation ranging from 1,387 to 1,534 kWh/kWp/year.

With these advantages, the total potential capacity of solar power in the entire region could hit 136,275 MW, generating an estimated electricity output of over 216 billion kWh per year. Furthermore, the region can also exploit the potential of tidal energy and abundant biomass energy from its agricultural by-products of over 23 million tonnes per year, which have yet to be fully tapped.

To sustainably develop renewable and clean energy in the region, Dien said that the ministry will continue to lead and coordinate with relevant ministries, sectors, and localities to build the amended electricity law and the renewable energy law for submission to the National Assembly this year. It will also propose the Government issue policies on direct electricity trading.

Moreover, in the Mekong Delta, competent ministries and sectors are also implementing solutions and investing in infrastructure and research of domestic and regional links to serve the import of natural gas and LNG to ensure the supply for power plants in Ca Mau province.

HCM City lures green investments to boost sustainable development

Ho Chi Minh City, Vietnam’s biggest economic hub, is working to lure both domestic and foreign green investments, towards sustainable development.

The city has taken actions to join national efforts to achieve the goal of net-zero emission by 2050, with an economic forum themed “Green Growth – Journey to Zero Net Emissions” in September 2023.

Last month, the municipal People’s Committee also coordinated with the World Bank (WB) in organising an investment promotion conference for green growth.

Notably, green growth is a focus in the city’s planning orientations for 2021-2030 with a vision towards 2050, along with policies, criteria, and models in all sectors.

Under the National Assembly’s Resolution No. 98/2023/QH15 on piloting some specific mechanisms and policies for HCM City’s development, the southern metropolis is empowered to untangle knots to its development and devise mechanisms to attract resources in service of green transition.  

Tran Phu Lu, Director of the Investment & Trade Promotion Centre of HCM City, said the city will call for more investments in knowledge-intensive sectors and others with high added values and cutting-edge technologies.

In the short term, priority will be given to digital economy, industries based on the Fourth Industrial Revolution, microelectronics, semiconductors, information technology, new materials, and clean energy, among others.

In the long run, HCM City will encourage businesses to invest in innovation, and technology absorption and mastery, especially core and source technologies.

At the above-said conference, the working group between HCM City and the WB introduced two very large-scale projects on flood risk management in Thu Duc city and low-carbon urban area building.

Last year, HCM City issued a plan implementing the green growth strategy towards sustainable development by 2030, under which it set the target of attracting investments selectively, focusing on green and high-tech projects.

However, the lack of a detailed legal framework remains the biggest roadblock to the city’s path towards green growth.

Given this, strengthening public-private cooperation and perfecting the legal framework on green finance and green investment need to be done immediately, experts said.

Ninh Thuan takes grape production to next level

Positioned as the proud owner of Vietnam's largest grape farming area spanning over 1,000ha, the southern central province of Ninh Thuan is proactively embracing modern technology across various stages of grape production and processing.

In a strategic move, the province is diversifying its grape-based product range and seamlessly integrating them with the burgeoning realm of agri-tourism.

The provincial Department of Agriculture and Rural Development underscored Ninh Thuan's commitment to technological advancement by collaborating with relevant agencies to popularise post-harvest grape processing techniques. Moreover, it is spearheading the establishment of wine production models and deploying cold storage facilities to develop an array of processed products - from jam, wines, vinegars, and honey to syrups and candies - all made from fresh grapes.

To enhance overall production efficiency, Ninh Thuan has built four value chains for grapes and dedicated a 30-hectare area exclusively to grape cultivation. The province has assigned five codes to grape cultivation areas encompassing nearly 73ha, and expanded VietGAP-certified grape cultivation zones to almost 214ha.

So far, grape cultivation areas using cutting-edge technology have accounted for 31% of the total in the province, yielding incomes ranging from 500-600 million VND (20,800 – 25,000 USD) per ha per crop and from 1-1.2 billion VND per ha per year.

Looking ahead to 2025, Ninh Thuan aims to increase its grape cultivation area to approximately 1,770ha, yielding a total production of 44,160 tonnes. Notably, VietGAP, GlobalGAP, and organic-certified grape cultivation areas are projected to cover 1,070 ha, or nearly 60% of the total, with an expected production output of around 27,900 tonnes.

Director of the provincial Department of Agriculture and Rural Development Dang Kim Cuong said the department will continue advising the provincial People's Committee to incentivize the agriculture sector, with a specific focus on grape cultivation.

Ninh Thuan remains steadfast in its commitment to developing the geographical indication of the "Ninh Thuan grape" and implementing traceability labeling to safeguard the brand's integrity. Additionally, the province is extending support to grape farming and business entities, encouraging their participation in trade promotion events, exhibitions, trade fairs and market connection initiatives, ultimately steering toward the exciting prospect of international exports, he added.

Vietjet welcomes 105th aircraft

Vietjet has welcomed the 105th aircraft to join its modern fleet, continuing its fleet development plan, and meeting all customers’ needs.

According to Vietjet, this aircraft continues to strengthen the world's leading modern airline fleet, ready for plans to expand its flight network to new destinations in the Lunar New Year of the Dragon, bringing new resources and momentum for its next development steps.

Vietjet's 105th aircraft which arrived at Tan Son Nhat International Airport in Ho Chi Minh City on February 18 belongs to the world's leading modern generation of Airbus - A321neo ACF capable of saving fuel up to 20%, reducing emissions to the environment by up to 50%, and reducing noise by up to 75%.

The new aircraft will be put into operation immediately on routes connecting destinations in Vietnam and internationally to Australia, India, China, Japan, the Republic of Korea, Indonesia, and Thailand to serve passengers on their spring vacation, business travel, investment, and tourism.

Before the 2024 Lunar New Year peak season, Vietjet continuously received new generation Airbus aircraft as well as adding six aircraft with flight crews to meet customers’ needs.

Vietnamese organic products garner attention at Biofach 2024

Vietnam has for the 7th consecutive year made its presence at the world's leading trade fair for organic food, Biofach, in Nuremberg city of Germany's southern Bavaria state.

Led by Dang Thi Bich Huong, Vice Chairwoman and Secretary-General of the Vietnam Organic Agriculture Association (VOAA), eight Vietnamese enterprises participated in the fair. The participation was part of a national trade promotion programme carried out by VOAA.

This year, the country showcased distinctive products that caught the attention of customers, such as liquid aminos, sugar, and vinegar from coconut flower, grass and bamboo straws, and organic farm products like peppercorn, cinnamon, and cashew nuts.

At the fair, Do Viet Ha, a representative of the Vietnam Trade Office in Germany, said that the agency will coordinate and provide full support to attract more businesses joining Biofach in the future.

This year's expo, lasting from February 13-16, brought together over 3,000 stalls from more than 100 countries, displaying the latest and most innovative products.

THACO to unveil 28 new automobile models

Vietnam’s Truong Hai Group Corporation (THACO) will unveil 9 models of passenger cars, 13 models of trucks and 6 models of buses, said Chairman of its Board of Directors Tran Ba Duong in his New Year message to employees.

Additionally, the company will establish and operate a sale company in the US for the North American market.

THACO AUTO, a subsidiary operating in the field of automobile and motorcycle import, assembly and distribution, will increase investments in its retail system, build a new and larger research and development centre equipped with modern and synchronous facilities to meet technological demand for automobile assembly and production, expand repair services and parts trading, and launch the pilot sale of used vehicles.

In 2024, THACO AUTO's sale plan aims to reach 95,400 units of various automobile types, including 76,200 passenger cars and 19,200 trucks and buses, capturing a 38% domestic market share. It also targets to export over 1,600 vehicles, resulting in a consolidated revenue of 68.4 trillion VND (2.85 billion USD).

Alongside THACO AUTO, THACO INDUSTRIES, a subsidiary of THACO engaged in mechanical manufacturing and supporting industries, will continue its investment strategy in 2024 by initiating the operation of new factories in Chu Lai, upgrading existing factories, putting a research and development centre into operation, and running a sale company for the North America and two representative offices in Europe and Australia.

Its a consolidated revenue is expected to reach 13 trillion VND this year, with export revenue reaching 250 million USD. Total capital will amount to 2.1 trillion VND.

All northern border gates resume customs clearance after Tet

Customs clearance activities have become normal again at all border gates in the northern region after a week-long Lunar New Year holiday.

Previously, relevant authorities of China, which also celebrates the Lunar New Year, announced the temporary suspension of customs clearance procedures at border gates in Lang Son and Quang Ninh provinces from February 10-13 (from the first to fourth day of the first lunar month), and the resumption from February 14-17 for trucks and documents registered before Tet.

Since February 18, all customs clearance procedures have returned to normal.

At Mong Cai international border gate, on February 18 morning alone, 95 vehicles transported over 900 tonnes of agricultural products worth around 3.7 million USD to China.

Nguyen Dinh Dai, Director of the Lang Son’s Department of Industry and Trade, said that since the holiday, there has been no congestion of goods at local border gates thanks to the authorities’ efforts to strengthen regulation and actively work before Tet.

Meanwhile, border gates in Lao Cai province have been operating throughout Tet, with a very large volume of goods, mainly fruits and vegetables.

Semiconductor industry hoped to attract half of FDI investors in Da Nang

Some potential investors are exploring investment chances in central Da Nang city, and its Hi-Tech Park and Industrial Zones Authority (DHPIZA) hopes that 50% of those FDI businesses will invest in the local semiconductor industry this year.

Nearly 260 million USD in investment was poured into the Da Nang Hi-Tech Park in 2023, the DHPIZA said, noting that many challenges are predicted for 2024 and beyond, but it hopes the firms who are planning to invest in the city and learning about the local market will make decisions this or next year.

DHPIZA Director Vu Quang Hung told the Lao dong (Labour) daily that the semiconductor industry is among those benefiting from preferential treatment at the Da Nang Hi-Tech Park.

The authority is giving preferential policies to three industries, namely semiconductor, high-quality health care, and aerospace. All investors coming to the city will receive the DHPIZA’s assistance in terms of administrative procedures, time, and coordination with local departments to learn about the market, he went on.

He revealed that in 2024, Foxlink of Taiwan (China) is set to pour 400 million USD into the second phase of its electronics factory while the ICT Vina Co. Ltd, invested by the Republic of Korea, will channel some 277 million USD into its project at the Da Nang Hi-Tech Park. Some other semiconductor businesses of Taiwan and Japan are also considering the local environment to make investment decisions.

The DHPIZA expected about 50% of FDI businesses investing in the park this year are semiconductor ones, Hung added.

At a meeting held in mid-February, Secretary of the municipal Party Committee Nguyen Van Quang asked the DHPIZA to pay more attention to attracting investment to the electronics, semiconductor, and medical equipment industries.

He said Da Nang is reviewing the zoning plan of the Hi-Tech Park, resolutely revoke land from the firms not implementing their projects, and make thorough preparations for expanding this park in the second phase to make room for future investors.

General Department of Taxation reviews draft regulations on loan interest expense cap

The General Department of Taxation (GDT) is seeking solutions to amend the loan interest expense cap regulation at 30 per cent to solve difficulties for businesses in the context of high interest rates in the period 2022-23.

The GDT said that it has coordinated with six local tax departments to organise a conference to review a draft decree that amends and supplements Decree 132/2020/NĐ-CP on tax management for enterprises with associated transactions.

GDT deputy director Đặng Ngọc Minh said that the GDT is collecting opinions of agencies and units after consulting with ministries, localities and the business community.

"The draft decree amending and supplementing Decree No. 132 aims to approach the reality of business operations, creating maximum convenience for taxpayers as well as the overall development of the economy,” said Minh.

In early January, the Vietnam Chamber of Commerce and Industry (VCCI) already sent a proposal to the Ministry of Finance about problems with Decree 132. VCCI said the loan interest expense cap regulation under the draft decree will have adverse impacts on enterprises and the ability to form economic groups in the country.

According to VCCI, businesses reported that tax authorities consider transactions between businesses and banks as affiliated transactions, thereby eliminating interest costs exceeding the allowed ceiling. Meanwhile, in 2022 and 2023, lending interest rates on the market increased sharply, causing interest costs of many businesses to exceed the allowed limit.

In that situation, Decree 132’s regulations cause businesses to suffer double difficulties, having to pay more interest to banks, but not being able to deduct taxes for this cost. These regulations have a strong impact on businesses that use a lot of capital in fields such as infrastructure, production, processing and manufacturing.

“The interest rate of the loan corresponds to the average level of the capital market. Both businesses and banks have shown no signs of intentionally increasing interest costs to reduce tax liability. Therefore, the 30 per cent loan interest expense cap regulation would cause difficulties to businesses," said the VCCI.

The Ministry of Finance also issued a document collecting comments on amending Decree 132 in the direction of eliminating linkages between banks and businesses. However, the process of amending Decree 123 may take a long time. Meanwhile, in the current period, businesses are being inspected and tax examined for the 2022 and 2023 fiscal years.

If there are no immediate measures, it can have a very negative impact on the production and business situation of businesses as well as the stability and consistency of Việt Nam's investment environment, according to the VCCI.

Previously, businesses said that after three years of implementation, Decree 132 had revealed many inadequacies, causing difficulties in production and business activities. One of the bottlenecks that are making many businesses "cry" is the regulation that limits the ceiling of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) at 30 per cent (Point a, Clause 3, Article 16).

Enterprises said that 30 per cent is the control level of developed countries. The application of anti-thin capitalisation rule of developed countries is not consistent with the reality of Việt Nam, a developing economy with most businesses having thin capital, being in the start-up phase and needing to use a lot of loan capital. 

Consumption surge in Tet gives a boost to domestic market growth: Experts

A strong rise in goods consumption without any shortage or price hikes during the Lunar New Year (Tet) festival is considered a push for the growth of the domestic market in the whole year.

As early as the end of October, 2023, the Ministry of Industry and Trade (MoIT) urged localities and businesses to prepare plans to stockpile goods for Tet, the biggest festival in a year for Vietnamese, while launching a market stabilisation programme and strengthening market management and food safety protection.

In Hanoi, the Department of Industry and Trade reported that the total value of consumed goods during Tet rose about 10% year on year to 40 trillion VND (1.63 billion USD).

Experts held that the peak shopping season during Tet is always a push for production and business activities, promoting the growth of the domestic market.

In the context that the Government is focusing on the domestic market towards an economic growth of 6.5% and inflation of 4-4.5% in 2024, the supply-demand connection and stimulation of domestic product consumption is key to the stable and sustainable development of the national economy in following years, they asserted.

Economist Ngo Tri Long said that along with speeding up public investment and removing difficulties facing businesses, it is necessary to boost the growth of the domestic market by reducing value added tax and adjust personal and corporate income taxes to suit the new situation.

Long advised businesses to adjust their production and business methods to provide high quality products to consumers in a fast manner at reasonable prices, while applying promotion policies and build reputations for their brands.

Meanwhile, businesses underlined the need for long-term and stable consumption stimulating policies as well as direct support to enterprises such as cutting down land rent.

The MoIT said that in order to continue ensuring goods supply and market stability, the ministry will keep a close eye on the development of the market and prices to make timely response, while coordinating with other ministries and sectors in regulating prices of State-managed goods, including petrol, contributing to boosting the domestic market and motivating the country’s economic growth in 2024.

Mekong Delta localities promote collective trademarks

Several cities and provinces in the Mekong Delta region have introduced various measures to support intellectual property and establish collective trademarks, with the goal of enhancing economic value of agricultural products and specialties.

The Mekong Delta province of Kiên Giang is the pioneer in building and developing collective trademarks, benefiting people, cooperatives and businesses in product promotion and sale.

The locality is home to 475 agricultural cooperatives, 366 specialising in cultivation and 109 in aquaculture.

The provincial Cooperative Alliance, based on the annual plan, has coordinated with relevant agencies to support the building of collective trademarks for cooperatives, prioritising products included in its economic restructuring plan like shrimp, crab, fruit, rice and pepper.

The Department of Science and Technology of the Mekong Delta province of Tiền Giang also guided some 30 organisations and individuals to establish IP rights for their trademarks each year.

Registering trademark protection not only protects businesses but also ensures rights and interests in goods circulation, said Deputy Director of the provincial Department of Science and Technology Nguyễn Tuấn Phong.

The Department of Quality, Processing, and Market under the Ministry of Agriculture and Rural Development said to successfully build brands, it should begin with quality products that satisfy the needs and expectations of customers.

It suggested businesses build and operate their trademark management systems, covering the quality of trademarked products; production and business activities in chains; product preservation and processing; and traceability, among others.

Kiên Giang’s authorities said the locality will cooperate to help cooperatives that have already built collective trademarks, geographical indications and IP rights in both domestic sale and export.

Tiền Giang province’s Department of Science and Technology will also step up the communications work on IP rights protection, especially trademarks for cooperatives.

Many businesses also called on the government to soon complete policies and laws on trademark development and protection registration for agricultural products.

Removal of unnecessary business conditions needed, says committee

Ministries and agencies should continue to review and propose to cut unnecessary, unfeasible, unclear, indefinite or unsuitable business conditions no later than the second quarter of this year, the government’s Steering Committee for Administrative Reform has suggested.

They should review and recommend the removal of conditional business lines that could be applied with more effective management measures before June 2024, according to the committee. 

Prioritising resources for refining legal frameworks, improving law enforcement effectiveness, and eliminating bottlenecks in mechanisms and policies supporting production and trade should be also included. 

During the seventh meeting of the committee held in Hà Nội earlier this month, Prime Minister Phạm Minh Chính stressed the need to eliminate unnecessary, unfeasible, unclear, indefinite and unsuitable business conditions.

He said ministries and agencies had cut and simplified 628 business regulations, and 100 per cent of localities had completed the rearrangement of their agencies.

Public finance reform received due attention, resulting in an 8.12 per cent increase in State budget revenue over estimates despite tax exemptions, reductions, extensions and waivers totalling nearly VNĐ194 trillion (US$8 billion), PM Chính said. 

The PM, who is also head of the steering committee, requested administrative reform be boosted in six fields, including institutional reform, administrative reform, State administrative apparatus reform, reform of public affairs, public finance reform, and e-government building.

He stressed that institutional reform must focus on removing legal hindrances to production and trade, while administrative reform should prioritise procedural simplification and decentralisation of authority.

Regarding public finance, reform efforts should focus on increasing revenue and reducing regular spending to spend more on development investment, along with fighting corruption and negative practices.

In the realm of e-government development, the government leader urged advancing digital government, digital citizenship and digital society. 

Foreign-invested enterprises in Bac Giang to recruit thousands of employees

Several foreign-invested enterprises in the northern province of Bac Giang want to recruit dozens of thousands of employees to expand their operations.

According to Bac Giang Industrial Zones Management Authority, in the first quarter of 2024, many foreign-invested enterprises (FIEs) in local industrial parks are seeing growth and want to expand.

13 FIEs will issue the recruitment information for 13,000 skilled and unskilled employees. Accordingly, the demand for employees in February is 7,430 people and the figure in March is 5,630 people.

Four member companies of Luxshare namely Fukang Technology Co., Ltd., Fuyu Precious Technology Co., Ltd., New Wing Interconnect Technology, and Luxshare-ITC Bac Giang Co., Ltd have demand for 3,080, 2,550, 2,400, and 1,300 staff respectively.

The employees will enjoy many benefits, including stable income, long-term working contracts, a safe working environment, and other allowances. In addition, they will be paid insurance for all hours worked.

In Bac Giang, Luxshare-ICT Bac Giang is one of the FIEs having the largest demand for employees, approximately 80,000 people. The factory manufactures electronic components, including wireless bluetooth headsets, audio components for smartphones and other electronic devices. All such products were registered to be exported.

The Apple supplier is implementing the construction of the expanded factory in Quang Chau Industrial Park, which has total investment capital of $330 million.

The expansion of the plant was started in November 2023 and will be completed within 24 months. Once completed, the expanded facility will increase the project’s total investment to $504 million.

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