Vietnam’s Agri VMA company has set up a branch at the Mariel Special Economic Development Zone (ZEDM) of Cuba, becoming the fifth with Vietnamese capital established at the zone, which is about 45km west of Havana capital, according to the zone’s office.

In a statement posted on ZEDM's website, a representative of the special zone emphasised that Agri VMA’s new investment, estimated at 21 million USD, contributes to strengthening the position of the Asian country with the largest presence here.

The company will manufacture and market animal feed and raw materials, breed pigs and other animals as well as import agricultural inputs and technology.

Agri VMA production is expected to have a positive effect on food production and import substitution, contributing to the achievement of food sovereignty in Cuba.

Established in November 2013, ZEDM was the first and only of its kind in the country.

Covering 465.4sq.m, ZEDM enjoys a privileged geographic location as it locates in the centre of the Caribbean Sea and at the crossroads of the main maritime commercial traffic routes in the Western Hemisphere.

Once investing in ZEDM, foreign investors are entitled to benefit from a 0% tax rate for repatriated earnings and duty-free treatment of importing raw materials during the investment phase as well as 10-year exemption on taxes on profits.

Other incentives include a one-stop-shop system that provides information to investors and facilitates companies' set up, registration and licensing.

VCCI says rules needed for setting credit growth quotas

The Vietnam Chamber of Commerce and Industry (VCCI) has proposed policymakers provide regulations for the setting of credit growth quotas.

Article 59 of the 2010 law on the State Bank of Vietnam (SBV) states that depending on the nature and degree of risks, the SBV can decide on a certain credit growth limit for banks subject to inspection and supervision in order to ensure safety for the banking system.

However, the article is not clear, so commercial banks might not be equally treated when it comes to credit quota allocation, VCCI said. The article does not point out whether the regulation applies to all banks or a few that have high exposure to risks and that breach the law.

The number of enterprises that could gain access to bank loans has declined over the years, with 49.7% in 2017 and 35.41% in 2021, even though the business community has huge demand for financing as the Vietnamese economy is still growing robustly, the Vietnam News Agency reported, citing data from VCCI’s surveys.

Viet Nam, Belgium step up scientific-technological cooperation

Viet Nam wants to step up cooperation with countries that have strengths in science-technology like Belgium, Minister of Planning and Investment Nguyen Chi Dung has said.

At working sessions with Belgian partners, including Hub.Brussels, Interuniversity Microelectronics Centre (IMEC) and John Cockerill Group in Brussels on February 20, Dung said Belgium had substantial potential to cooperate and support Viet Nam in new technologies and renewable energy, especially circuit manufacturing.

Dung led a delegation from ministries, innovation centres, research institutes and universities to Belgium from February 18-21, aiming to concretise the outcomes of Prime Minister Pham Minh Chinh's visit to the European country in December 2022 regarding innovation cooperation.

Hub.Brussels, the Brussels Agency for Business Support, offers a wide range of free advice, services and tools to help projects be successful.

Dung lauded cooperation between the agency and the Vietnam National Innovation Centre (NIC), which had agreed on experience exchange in order to raise innovation and start-up capacity of Viet Nam and the European Union (EU).

He suggested Hub.Brussels help NIC in operations, and open its representative office at NIC Hoa Lac to step up the bilateral cooperation in innovative start-up ecosystem development.

The minister assigned NIC and the Vietnam Innovation Network in Europe (VINEU) to partner with Hub.Brussels in devising an exchange programme for Vietnamese start-ups this year.

Annelore Isaac, Deputy Chief Executive Officer at Hub.Brussels, expressed her belief in cooperation between the two sides, which would cover healthcare and construction, and affirmed that the agency stood ready to support Vietnamese start-ups.

On this occasion, Hub.Brussels, NIC and VINEU signed a memorandum of understanding on cooperation in innovation and start-ups.

At another working session with IMEC, a leading R&D and innovation hub in Europe in nanoelectronics and digital technologies, Dung stressed that his ministry wanted to promote cooperation between IMEC with Vietnamese organisations and enterprises, especially in the semiconductor R&D, thus helping Viet Nam join the global semiconductor supply chain.

He suggested IMEC work with NIC and Vietnamese educational institutions to organise cooperation programmes for students and engineers in the semiconductor industry.

An MoU on collaboration in the semiconductor industry was also inked by IMEC and NIC, under which IMEC will consider building an R&D centre in the Southeast Asian nation.

Driven since 1817 by the entrepreneurial spirit and passion for innovation of its founder, the John Cockerill Group developed large-scale technological solutions to meet the needs of its time.

Meeting with John Cockerill representatives, Dung emphasised that Viet Nam hoped for comprehensive cooperation with the group in energy, saying it should become Viet Nam’s strategic partner through cooperation programmes as well as R&D and investment projects.

John Cockerill's leaders said the group wanted to make comprehensive and strategic investment in Viet Nam, thus further serving the Southeast Asian and Northeast Asian markets.

The group expected to focus on solutions regarding energy transition, including biomass, hydrogen and low-carbon ones, they noted.

John Cockerill and NIC reached an MoU on this occasion, under which the Belgian group would invest in green hydrogen R&D at the Vietnamese centre and labs for biomass fuel products, and develop products relating to cooling technology in power plants and industries. 

Khanh Hoa province calls for investment in massive projects

The south-central coastal province of Khanh Hoa is set to call for investment worth billions of USD from foreign and domestic business giants at a conference slated for April 2.

The province is scheduled to announce in-principle approvals for a 1,250-hectare urban project near Cam Ranh Bay with registered capital of nearly 85.3 trillion VND (3.6 billion USD) and the 89-hectare Dien Khanh administrative urban area with registered capital of 2,012 trillion VND.

Other real estate projects include a social housing project in Cam Nghia ward, Cam Ranh city, with registered capital of 3.756 trillion VND; the 71.5-hectare VCN eco-urban area, with registered capital nearly 9 trillion VND; and the Hon Ngang-Bai Cat Tham maritime eco-tourism resort in Van Phong Economic Zone, with registered capital of 25 trillion VND.

The Republic of Korea’s CS Wind Corporation is set to receive an investment registration certificate or sign a memorandum of understanding (MoU) for a 130 million USD wind tower and monopile factory, covering 32.22 hectares in Ninh Thuy Industrial Park, Van Phong Economic Zone.

Viglacera, Vietnam's leading manufacturer of building materials, is expected to receive an in-principle approval or sign a memorandum of understanding for its 1.8 trillion VND Doc Da Trang Industrial Park project.

Khanh Hoa province also said it would sign deals on investment promotions with FPT and Mckinsey & Company Vietnam, and an MoU on investment in Vinschool with private conglomerate Vingroup.

The province will also sign MoUs on investment in industrial parks, including a 350-hectare Nam Cam Ranh IP with Trung Nam Construction Investment Corp.; a 480-hectare Ninh Son IP with SSI JSC; 300-hectare Xuan Son with Sinnec JSC; 250-hectare Ninh Diem 1 and 215-hectare Ninh Diem 2 with Becamex IDC; and a 290-hectare Ninh Diem 3 with Sonadezi.

Other key projects include the 750-hectare Ninh Tinh seaport with Saigon Newport Corporation, a 4,800-hectare Hon Lon tourism-urban complex and an airport in Van Thang commune with major realty developer Sun Group, a software-technology urban complex linked with FPT, green social housing with Capital House, and cooperation with Japanese retailer Aeon Mall.

Cleared ground for Long Thanh airport’s 1st phase fully handed over in Q1

The southern province of Dong Nai will complete the handover of cleared ground for the first-stage construction of Long Thanh international airport within the first quarter of this year, the provincial People’s Committee said on February 21.

According to the committee, the first stage of the project needs over 2,530 hectares of land. To date, more than 2,450 hectares, or nearly 97%, have been handed over to the Airports Corporation of Vietnam (ACV) – the investor of the project.

Recently, Deputy Prime Minister Tran Hong Ha announced the conclusion of the implementation progress of the Long Thanh airport project. He urged Dong Nai to hand over the entire cleared ground for the first phase in the first quarter and the site for two routes linking to the airport before May 30.

Covering a total area of more than 5,580 hectares, the Long Thanh international airport will spread across six communes in Long Thanh district, Dong Nai province. The airport’s total investment is 336.63 trillion VND (14.2 billion USD), with construction divided into three phases.

In the first phase, a runway and one passenger terminal along with other supporting facilities will be built at a cost of 109.1 trillion VND to serve 25 million passengers and 1.2 million tonnes of cargo each year.

The project started in 2021. Once fully completed by 2050, the airport will be able to handle 100 million passengers and 5 million tonnes of cargo annually.

Located 40km east of Ho Chi Minh City, the airport is expected to relieve overloading at Tan Son Nhat international airport in the southern metropolis, now the country’s largest airport.

Piaggio Vietnam adds 75 mln USD to investment in Vinh Phuc

The Piaggio Vietnam Co. Ltd has raised its investment in the northern province of Vinh Phuc by 75 million USD to 165 million USD to expand operations.

The Italian-invested motorcycle producer received a certificate for its investment adjustment registration from the Vinh Phuc management board of industrial parks on February 21.

The company opened a motorcycle assembly plant in the Binh Xuyen Industrial Park of Binh Xuyen district in June 2009. In March 2012, it unveiled an engine production factory also in this industrial park.

The two projects cover over 18.9ha and had combined initial investment of 90 million USD.

To continue developing production and business activities, Piaggio Vietnam has decided to merge these projects and invest 75 million more USD to raise motorcycle production and assembly capacity to 400,000 products each year from 250,000. Engine production will also increase to 400,000 units annually from 300,000.

Vietnamese agricultural products enjoy bustling export to China

Vietnamese agricultural products have enjoyed bustling export to China since the country reopened its border on January 8.

Increases in both export volume and value

Exporters have reported a sharp increase in the number of orders from the Chinese market since the border re-opening.

Vo Tan Loi, Director of Phuong Ngoc Cai Be Ltd Co based in Tien Giang province, said his company’s orders have risen compared to the time during the COVID-19 pandemic.

Similar to Phuong Ngoc Company, Hoa Cuong Fruit Import-Export Co., Ltd is also busy buying fruit to meet orders. The company is purchasing about 1,500-2,500 tonnes of fruit per month to ship to China, much higher than before.

As Vietnam’s largest agricultural product importer, China currently imports nearly 10 billion USD worth of agricultural products from Vietnam each year. Particularly, shipments to China always account for more than 50% of Vietnam’s total vegetable and fruit export turnover.

According to export businesses, the export of agricultural products to China is increasing by 30% to 50%.  

In particular, since the Chinese market re-opened, the prices of agricultural products such as dragon fruit, durian, and jackfruit, have soared significantly. Nguyen Quoc Trinh, Chairman of Long An Dragon Fruit Association said the price of dragon fruit rose very sharply, three times higher than during the pandemic.

Not only dragon fruit, but the prices of durian also increased unprecedentedly.

General Secretary of the Vietnam Fruit and Vegetable Association Dang Phuc Nguyen assessed that Vietnamese agricultural products are being supported from many sides. After the visit of Party General Secretary Nguyen Phu Trong to China, in early November 2022, a series of fruit and vegetable export protocols were signed in favour of Vietnam. In particular, durian and jackfruit are the groups enjoying the earliest benefit.

It can be seen that the reopening of China has helped the price of agricultural products increase as the market gradually becomes active again. But experts said businesses should not be too hasty to return to the market without careful preparation, because China now has new and quite strict regulations for imported goods.

Therefore, not only increasing the value of exports, Vietnam needs to aim at sustainable exports and find ways to retain this important market.

To promote the export of agricultural and aquatic products to this market of billions of people, Deputy Director of the Asia-Africa Market Department (Ministry of Industry and Trade) To Ngoc Son recommended that localities and management agencies should build development strategies and build brands, in parallel with building production areas and concentrated, large-scale specialised farming areas, based on market signals.

For businesses, it is necessary to regularly update and comply with regulations on quality standards, testing, quarantine, packaging, and traceability of the Chinese market. Along with that, businesses must focus on branding and brand protection and carefully study the needs and development trends of the market.

Enterprises also need to take advantage of the Vietnam-China rail transport route and promote market exploitation through the form of e-commerce.

Petrol prices drop against projections of increase

The retail prices of petrol have been revised down from 3pm on February 21 by the Ministry of Industry and Trade, and the Ministry of Finance, although previous forecasts predicted that they are likely to increase.

Accordingly, RON 95-III and E5 RON 92 petrol now cost 23,440 VND (0.99 USD) and 22,540 VND per litre, respectively, both down 320 VND.

Diesel is sold at 21,860 VND per litre, dropping by 700 VND, while the price of kerosene decreased by 750 VND to 20,840 VND per litre. Meanwhile, the new price of mazut is 14,250 VND per kg, up 620 VND.

In this adjustment, the two ministries decided not to extract for or use the petrol price stablisation fund.

VIFA EXPO 2023 to take place March 8-11 in HCM City

The Vietnam International Furniture and Home Accessories Fair (Vifa Expo 2023) will take place from March 8 to 11 at the Saigon Exhibition and Convention Centre in Ho Chi Minh City, according to organisers.

This year, the Vifa Expo attracts 612 businesses with 2,410 booths, including more than 140 firms from 17 foreign countries and territories. Over 3,000 visitors have registered.

The Vifa Expo 2023 will also promote online fair activities with the Vifa Expo Online Platform. Within the framework of the fair, there will also be seminars on new consumption trends in the global wood furniture market.

Vietnam’s dragon fruit, banana, durian export targets 2 billion USD in 2023

The export of dragon fruit, banana and durian is expected to contribute 2 billion USD to the country’s export turnover in 2023.

The fruits and vegetables export recorded positive signals in early 2023, reaching 300 million USD in January, up 3% year-on-year.

This promises a great help to the sector in realising its goal of 4 billion USD in revenue this year, a year-on-year surge of 20%.  

This is attributable to China’s re-opening in early January and its increasing import of fruits and vegetables from Vietnam; and the efforts of Vietnamese exporters to maintain orders with partners in the US, the European Union (EU), and Japan.

In the fourth quarter of 2022, the export volume of durian sharply soared, hitting 421 million USD, up 137% from the same period last year.

The export of banana also saw strong growth, reaching 311 million USD last year, up 34.5%.

The trade of goods at the border gates between Vietnam and China has become bustling. As many as 220,000 tonnes of fruits were exported to China via border gates in the northern province of Lang Son from January 1 – February 13, a hike of 40% year-on-year.

According to Nguyen Thanh Binh, President of the Vietnam Fruit and Vegetable Association, 2023 is expected to be an optimistic year for Vietnam's fruits and vegetables export industry, especially durian.

China remains the largest importer of Vietnamese durian among other key names including Australia, the US, Japan, and Taiwan (China). 

Banana export is also expected to exceed 300 million USD thanks to a protocol signed with China in November 2022.

Vietnam is the second biggest exporter of banana to China after the Philippines. China annually spends over 1 billion USD on importing banana from the Southeast Asian nation.

Last year, Vietnam raked in nearly 1.4 billion USD from exporting dragon fruit, banana, and durian.

Falling interest rates facilitate production and business sectors

Many banks have just launched credit packages with preferential lending interest rates that decreased by between 0.5-3% per year for customers in the fields of business and production, including real estate.

Most recently, the Vietnam Bank for Agriculture and Rural Development (Agribank), one of the largest banks in Vietnam, announced that as of January 31, the interest rates for real estate business is likely to be reduced by up to 3% per year from the interest rates that are being applied. The adjusted interest rates will be applied from January 31, 2023 to December 31, 2014.

Agribank said it will also spend more than 100 trillion VND in 2023 on preferential loans for businesses, import - export firms, and those operating in the healthcare and education sectors; and reduce interest rates for enterprises meeting difficulties in production and business.

Previously, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Joint Stock Commercial Bank for Industry and Trade (VietinBank) also launched incentive credit packages to support business and production firms.

The wave of reducing lending interest rates has been also recorded in many other commercial banks such the Viet Capital Commercial Joint Stock Bank (Viet Capital Bank), Orient Commercial Joint Stock Bank (OCB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), and Southeast Asia Commercial Joint Stock Bank (SeABank).

According to Nguyen Huu Trung, Acting General Director of the Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank), the capital demand of businesses still remains high, so banks need to have appropriate policies to support their customers.
 
Banks continued to lower deposit interest rates early this month, thus cutting lending rates in general, and those for the real estate sector in particular.

According to a report of Bao Viet Securities (BVSC), the deposit interest rates have showed signs of dropping since late January 2023, raising the hope of a fall in lending rates.

Industrial property expansion supported by long-term goals

As the economy retains a strong growth rate in 2023, the expansion potential of the industrial real estate market will continue to pique the interest of investors.

Due to the steady rebound of the Vietnamese economy and the interest of foreign investors, the value of industrial land in Dong Nai, Long An, Binh Duong, Bac Giang, and Hung Yen is expected to have grown by 30-40 per cent by the end of 2022, according to Savills Vietnam.

Industrial real estate was one of the few categories to retain growth last year, led by the greatest GDP growth rate of 8.02 per cent over 2011-2022. According to the Vietnam Association of Realtors (VARS), the occupancy rate of industrial zones (IZs) in Vietnam surpassed 80 per cent in 2022 and will continue to rise in 2023.

According to VARS, several IZs in Hanoi, Ho Chi Minh City, Dong Nai, Bac Ninh, Bac Giang, and Binh Duong are almost fully occupied. This results in a 10 per cent rise in industrial land rent in 2022 compared to the same time in 2021.

Cushman & Wakefield stated in a January research report that industrial land demand in the first half of 2023 is likely to fall owing to the global economic outlook but will be supported by the “beneficial supply chain move away from China.”

It predicts that industrial land rentals will rise in 2023 owing to increased compensation costs and a lack of available land in Hanoi and Greater Hanoi. The asking price reached $112 per square metre per lease cycle in the fourth quarter of 2022, an increase of 7 per cent on-year owing to the strong demand in the first half of this year. Due to China’s reopening of border crossings and the expansion of port capacity in Haiphong, it is anticipated that Quang Ninh and Haiphong will see a rise in demand.

It is anticipated that Vietnam’s economic growth would oscillate between 5.8 and 7.2 per cent, which is greater than other nations in the area and the aim set by the National Assembly. However, Vietnam is not exempt from the slowing trend of the global real estate market. High interest rates will constrain inflation around the globe, even as production demand tends to decline, particularly orders from the United States and Europe, the research added.

Investigations are now ongoing in Vietnam to “decontaminate and promote transparency” on the corporate bond market. This has a significant impact on the economy and the debt structure of investors, according to Troy Griffiths, deputy managing director of Savills Vietnam. The value of the stock market’s indices decreased by almost 30 per cent.

Vietnamese suppliers to become part of Samsung’s global value chain

Joo Ho Choi, general director of the Samsung Vietnam Complex, was the only representative from a foreign-invested enterprise to speak at a conference on February 12 in Quang Ninh on the government's action plan to implement Resolution No.30-NQ/TW dated November 23 from the Politburo on socioeconomic development, national defence, and security in the Red River region to 2030, with a vision to 2045.

At the event, Choi emphasised the two primary goals of Samsung's research and development (R&D) centre in Hanoi that was launched in late December.

The general director revealed that in Vietnam, the number of Tier 1 and Tier 2 suppliers in Samsung's global supply chain has witnessed a ten-fold increase, from 25 companies in 2014 to 257 by the end of 2022.

This is the result of Samsung Vietnam's determination to launch initiatives to increase the accessibility to new technologies and improve advanced governance capabilities.

Since 2015, experts from Samsung South Korea have been continuously working with around 400 Vietnamese firms to enhance competitiveness and improve product quality.

The participants have reported positive outcomes, including a 40 per cent increase in their productivity and a 50 per cent reduction in manufacturing defects after only three months of consultation and support. 33 qualifying businesses are being prioritised for Samsung Vietnam’s network of suppliers.

Samsung Vietnam has also provided professional training schemes for more than 400 local business consultants since 2018.

The Ministry of Industry and Trade and Samsung Vietnam signed an MoU last year on cooperation for smart factory development. Samsung is slated to share its expertise in smart manufacturing with 50 enterprises, according to the two-year roadmap.

Currently, Samsung has completed smart factory projects with 26 local businesses and will continue to replicate them with other organisations in the near future.

Pricing band to influence power tariffs across Vietnam

As Vietnam will shortly unify, regulate, and implement a variety of new systems governing power pricing and electricity transmission, losses at state-run Electricity of Vietnam should be reduced while simultaneously ensuring a dependable energy supply for growth.

The Ministry of Industry and Trade (MoIT) will determine the average retail power price hike for this year based on the implementation of the new average retail electricity pricing bracket beginning on February 3.

Officially implemented by the MoIT, the minimum average retail energy price bracket (excluding VAT) is 7 US cents per kWh and the highest price is 10 US cents per kWh. Hence, compared to the previous frame rate, the lowest price rose by 0.9 US cents per kWh, while the maximum price climbed by 2.3 US cents per kWh.

A week ago, Tran Viet Hoa, director of the MoIT’s Electricity Regulatory Authority of Vietnam, stated that the adaptation of the average retail cost of electricity has not directly altered the retail power prices for daily life and business but is the premise for EVN’s plans to modify the retail electricity price.

Production costs grow, yet as of 2022, Electricity of Vietnam (EVN) had not increased its power pricing. As of the end of 2021, the price of imported coal for power plants began to rise, and coal-fired power now accounts for around 40 per cent of EVN’s energy output, production, and business expenses.

In addition, the exchange rate disparities recognised in the power purchase agreement for 2019-2024 are expected to be exceeding $889 million, which must be allocated and included in the yearly cost of energy generation.

Two weeks ago, the MoIT delivered a paper demanding EVN promptly come up with a strategy for the average retail price of energy in 2023 and design a roadmap and an acceptable degree of adjustment if it is required to modify the price rise.

Do Thang Hai, Deputy Minister of the MoIT, stated on February 2, “The adjustment of electricity prices will be measured, assessed, and thoroughly considered, as it affects inflation, people’s lives, the production and business activities of enterprises, and the macroeconomic monitoring of the government.”

Two months ago, EVN had proposed to the MoIT to “raise the average retail price of electricity” in order to alleviate difficulties, balance the financial situation in 2023, and implement the market mechanism for electricity.

Nguyen Tai Anh, deputy general director of EVN, said its record loss of $1.33 billion puts a strain on the electrical industry’s financial status. The cause of the huge loss last year was the steep rise in input parameters (imported coal price, blended coal price, gas price, and global oil price) and the increased cost of purchasing electricity when power plants entered the electricity market.

EVN also forecasts that the financial outlook for 2023 would worsen if power prices remained unchanged. Consequently, power firms and National Power Transmission Corporation anticipate a production and commercial loss of around $2.75 billion.

Numerous analysts opined that the amount and timing of the rise in power rates must be carefully considered so as not to compromise the 2023 socioeconomic development goals established by the National Assembly.

Vice chairman of the Vietnam Electrical Engineering Association, Tran Dinh Long, said changing power tariffs now is fair. He specifically underlined that by evaluating when and how much is acceptable to maintain macro-balance, the power business does not incur losses and assures the endurance of energy users.

According to him, the government may examine and test electricity pricing adjustments every six months. The existing approach to modifying power pricing has created challenges for the electrical business. “Typically, power rates are updated every 2-3 years. However, when input costs grow, electricity prices are altered significantly, causing hardship for energy consumers,” Long said.

Korean firms interested in investing in Long An

Authorities of Long An southern province held a working session with a delegation from Yangsan city, Gyeongsangnam-do province of the Republic of Korea led by Mayor of Yangsan city Na Dong-yeon on February 15.

Chairman of the provincial People’s Committee Nguyen Van Ut introduced the province’s location and advantages in investment and industrial development.

The RoK now ranks second among nearly 40 countries and territories investing in Long An with over 200 projects worth nearly 940 million USD. In 2022 alone, the RoK invested in six new projects valued at over 122 million USD.

Secretary of the provincial Party Committee and Chairman of the provincial People’s Council Nguyen Van Duoc said Long An will always offer all possible support to investors and firms to learn about its investment environment. He pledged to address difficulties to help them develop production and trade.

Mayor Na wished that the provincial authorities would continue creating conditions and incentives for Korean firms to do business there.

On the occasion, Chairman Ut and Mayor Na signed a Memorandum of Understanding on cooperation in expanding exchanges in the fields of industry, electronics, economy, trade, culture, education, science, sports and health; and another MoU between the Korean Chamber of Commerce and Industry’s Long An branch and Yangsan city’s Chamber of Commerce and Industry.

Horticultural, floricultural technology expo attracts 200 brands

HortEx Vietnam 2023, the fifth international exhibition and conference for horticultural and floricultural production and processing technology in Việt Nam, will be held in HCM City’s Saigon Exhibition and Convention Centre from March 1 to 3.

The exhibition has attracted nearly 200 exhibitors from 25 countries and territories, including Belgium, mainland China, Egypt, France, Germany, Greece, India, Israel, Italy, Japan, the Netherlands, New Zealand, Singapore, South Korea, Spain, Sweden, Taiwan, Thailand, Turkey, the UK, and the host Việt Nam, with those from Egypt and the UK attending the show for the first time.

There will be national pavilions of the Netherlands, Turkey, Taiwan, and Việt Nam. This year, the Netherlands is a “partner country” at the expo, with the participation of 30 Dutch companies under the Netherlands pavilion organised by the Netherlands Embassy in Hà Nội.

In addition to showcasing equipment and technologies for the vegetable, flower and fruit industries, the expo will feature seminars, a fruit and vegetable export forum, Grower Talks, B2B business matchmaking, a flower showcase, a premium fruit showcase and other activities.

HCM City designs unique tourism products

Ho Chi Minh City is focusing on building unique tourism products to optimise its resources for the development of the smoke-free industry in the post-pandemic period.

In the recent Lunar New Year (Tet) holiday, the city offered a “Saigon Special Force” tour, attracting a large number of tourists.

According to Tran Vu Binh who designed the tour, this unique tourism product drew 200-300 visitors each day, mostly foreigners who explored historical relic sites associated with the revolutionary commando force activities during the anti-American war.

It has become one of top 50 interesting experimental tours in Vietnam, he said.

“A different Cho Lon” is another popular tour that lure visitors to District 11 of the city. Introduced in 2022, the tour features typical characteristics of the local China Town’s history and culture.

According to the city Department of Tourism, the “one district, one tourism product” programme has become a highlight of the local tourism sector in 2022, showing the sector’s efforts in renovate itself and promote the cultural, historical and architectural values of the city as well as its modern life.

Director of the department Nguyen Thi Anh Hoa said that the programme has helped improve the State management over tourism in localities and the close coordination among sectors, while diversifying local tourism products.

However, experts held that in order to increase the efficiency of the programme, it is necessary to invest more in the products and create the distinctive identity of the tourism of each locality.

HCM City gains considerable achievements in sci-tech development

Ho Chi Minh City has recorded significant achievements in scientific and technology between 2012 and 2021, greatly contributing to the local economy, the municipal Party Committee said.

The HCM City Party Committee recently held a conference to review the 10-year implementation of the 11th-tenure Party Central Committee’s Resolution 20-NQ/TW, issued on November 1, 2012 on the development of science and technology toward international integration. The resolution was issued in service of industrialisation and modernisation amid the socialist-oriented market economy.

It reported that over the last 10 years, the southern metropolis has strongly applied science and technology to public administration, especially using information technology in public services. The technological level of industrial production businesses has also been improved gradually.

The general speed of technological and equipment reform in the city was about 18.85% annually during 2016 - 2020, an increase from the 15% before 2016. Meanwhile, total spending on machinery and equipment averaged 20.6 trillion VND (870.3 million USD at the current exchange rate) each year.

This could be seen in the high total factor productivity (TFP), 35.62% on average, with science and technology contributing to 74% of the TFP growth. Between 2011 and 2021, the social labour productivity in HCM City was 2.7 times higher and the productivity growth was 1.7 times higher than the nationwide figures.

However, Vice Secretary of the municipal Party Committee Nguyen Ho Hai pointed out that there remain many challenges to the development of science and technology, which has yet to meet socio-economic development and urban management demand or truly become momentum toward development.

Deputy Minister of Science and Technology Le Xuan Dinh said HCM City is home to thousands of startups that account for about half of the total in Vietnam. Meanwhile, total investment in science, technology and innovation needs to make up at least 2% of the local GRDP, but it is hard for the state budget to cover the rate.

Therefore, HCM City should pay attention to attracting investment from venture funds to startups and innovation, he suggested.

AFD to continue supporting Vietnam's energy sector

Rémy Rioux, director general of AFD Group, visited Vietnam from February 17-18 to discuss energy transition.

This visit was part of the preparations for the Summit on the New Global Financial Deal announced by French President Emmanuel Macron at the last G20 Summit in Indonesia, which will be held in June 2023 in Paris.

On February 17, Rioux met with Duong Quang Thanh, chairman of the Council of Members of Electricity of Vietnam (EVN), for an exchange on the issue of the Just Energy Transition Partnership (JETP). On February 18, Rioux visited the construction site of the Hoa Binh hydropower plant extension project, an emblematic projects financed by AFD in favour of the energy transition.

At COP26 in Glasgow, Vietnam committed to achieving carbon neutrality by 2050 and phasing out coal by 2040. In line with this international commitment, the country formalised the JETP in December 2022 with a group of international partners, including France.

This partnership will mobilise $15.5 billion in public and private funding over the next three to five years. Public financial contributions, including those of AFD, made available to the group of international partners are in the order of $7.75 billion.

In return, Vietnam has committed to reducing annual emissions from the electricity sector by 30 per cent and to limiting the use of fossil fuels as much as possible by promoting the development of renewable energies with quantifiable objectives.

EVN is playing a central role in Vietnam’s energy transition. In response to the country’s commitments, the group is building its energy transition roadmap, adapting its development strategy and investing in clean energy. AFD, as a trusted and long-term partner, is supporting EVN in this transformation.

Within the framework of this JETP, the AFD is leading a consortium of European donors in Europe (EIB, KfW), together with Japanese partners (Japan International Cooperation Agency), to appraise the 1200MW Bac Ai pumped storage hydroelectric power plant project.

At the meeting with AFD, Thanh told Rioux about the strategic direction of EVN, and the challenges and experiences of the group in the process of energy transition. EVN’s exchanges and sharing of experience highlighted potential areas of collaboration with AFD to meet the challenges of energy transition.

In addition to existing and future concessional financing for EVN’s projects, AFD is available to share its expertise. During Rioux’s visit, the two groups’ directors officially launched a technical cooperation programme between EVN and EDF with financial support from AFD of around €1 million ($1.06 million). This will help EVN to develop its energy transition roadmap and support innovation projects.

The two leaders then jointly visited the Hoa Binh hydropower plant expansion project (480MW), which showed EVN’s achievements in developing its largest generation assets. In addition to the additional renewable generation capacity, the project will greatly contribute to improving the functioning of the Vietnamese power system in the context of the increasing integration of renewable energy.

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