Hai Phong, the largest port city in northern Vietnam attracted US$3.4 billion in foreign investment attraction (FDI) in 2023, ranking second in the country, according to the Hai Phong municipal statistics agency.

Currently, there are 933 valid projects operating in Hai Phong with a total investment capital of US$28.9 billion, said Le Gia Phong, head of the local statistics agency.

Phong attributed the encouraging result to the city’s improved business investment environment and infrastructure system, along with the effectiveness of a series of investment promotion activities.

In 2023, the city licensed 100 newly registered projects valued at US$1.3 billion and 46 adjusted projects with an additional investment capital of more than US$1.9 billion.

Of the total, local industrial parks and economic zones contributed 35 projects with a total investment capital of US$1.8 billion.

In recent years, the local infrastructure system, especially international seaports, highways, and its Cat Bi airport, has been invested heavily, creating breakthroughs in transport connectivity.

Cat Bi International Airport has been renovated and upgraded with a capacity of 4 million passengers a year. The city is going to break ground for Terminal 2 this year.

Also according to the municipal statistics agency, the city’s gross regional domestic products (GRDP) expanded by 10.34% in 2023, ranking fifth in the country and second in the Red River Delta.

Porsche recalls EVs in Vietnam for battery check over fire risk

German car manufacturer Porsche has decided to recall its electric vehicle model Porsche Taycan 4S in Vietnam for a battery check.

The recall applies to Porsche Taycans manufactured from September 22, 2022 to August 28, 2023 2023.

Two other Porsche models, Taycan GTS and Taycan 4 Cross Turismo, were also recalled globally for the same reason.

The recall notices were announced by Porsche AG (Germany) over an issue with the seal between the battery casing and battery cover potentially being hazardous to leaking. This error will cause the battery to lose performance and cause many other risks.

Porsche Vietnam recommended that car owners should immediately contact the nearest Porsche Center for assistance. If not repaired promptly, the vehicle may experience a short circuit, increasing the risk of overheating and fire.

The repair time for each Porsche Taycan 4S takes about 4 hours. The recall programme lasts until December 21, 2025.

Porsche Taycan is Porsche’s first battery-powered EV, launched in the Vietnamese market in October 2020. Currently, three of this EV Taycan 4S, Taycan Turbo, Taycan Turbo S are available in Vietnam, costing VND5.14 billion, VND7.13 billion and VND8.5 billion, respectively.

MWG sees drops in revenue in November after closing about 150 stores

evenue of all three main store chains of Mobile World Investment Corporation (MWG), including Mobile World - Topzone, Điện Máy Xanh and Bách Hóa Xanh, decreased in November from the previous month after the shut down of numerous stores.

In its updated business results for the first 11 months of 2023, MWG reported an accumulated revenue of nearly VNĐ108 trillion (US$4.4 billion), down 13 per cent year-on-year.

As a result, the company has completed 80 per cent of the year's revenue plan. Revenue from online channels dropped by 12 per cent from last year to VNĐ14.7 trillion.

In November alone, MWG's total revenue reached more than VNĐ9.9 trillion, equivalent to last November, but decreased by 11 per cent from the peak set in October. This was also MWG's lowest revenue since July 2023.

Last month, the revenue of all three main store chains, Mobile World - Topzone, Điện Máy Xanh and Bách Hóa Xanh, fell from the previous month. In particular, Mobile World chain's revenue was down 27 per cent to VNĐ2.3 trillion.

The company said the fall was attributed to lower iPhone demand after its first introduction to the domestic market.

Similarly, due to the low season for the electronics industry, Điện Máy Xanh chain recorded a revenue of nearly VNĐ4.3 trillion, down 9 per cent from October.

Meanwhile, Bách Hóa Xanh's revenue reached about VNĐ3 trillion, a slight decrease of 2 per cent from the previous month. The average revenue per Bách Hóa Xanh's store was VNĐ1.75 billion. In the first 11 months of the year, MWG's supermarket system earned VNĐ28.4 trillion in revenue, up 16 per cent over last year.

According to the company, it is accelerating the implementation of a comprehensive restructuring from the store and logistics departments to the logistics and business management departments with the aim of improving revenue growth, market share, and profits by 2024.

Of which, MWG will focus on keeping core activities and chains, stores, and product lines that create value for the company in the short term, gradually eliminating waste, and postponing investment in R&D projects in the medium and long term. It will also reallocate resources and solve resource redundancy issues arising from the restructuring.

In October and November, the company closed nearly 150 stores belonging to Mobile World, Điện Máy Xanh and Topzone chains and will continue to close a number of ineffective stores in December to stabilise operations ahead of the peak sales season during the Lunar New Year holidays 2024.

Meanwhile, Bách Hóa Xanh, An Khang and Avakids chains have completed the review of store closures in November and will remain stable until December. Costs related to store closures in the fourth quarter of this year will be fully reflected in the 2023 results and will not be listed in the next year's performance.

At the end of November, MWG had 1,100 Mobile World/Topzone stores, 2,210 Điện Máy Xanh stores, 1,697 Bách Hóa Xanh stores, and 527 An Khang pharmacies.

On the stock market, MWG shares closed Wednesday at VNĐ42,850 a share, up 0.35 per cent. 

HCM City reports highest tourism revenues in 5 years

 HCM City has achieved tourism revenues of VNĐ160 trillion (US$6.6 billion) this year, up 25 per cent from 2022 and the highest amount in five years.

Lê Trương Hiền Hòa, deputy director of the city Department of Tourism, attributed the growth to having a wide range of tourism products, leading to higher spending on recreational and discovery activities.

Also having an impact was its linking up with other regions for tourism, frequently working with destinations such as the Mekong Delta and the north-west, he said. 

It made the city a stopover for travellers going to other places.

The third factor was the increased investment in the city’s night-time economy, Hoà said. 

Around 70 per cent of spending by tourists occurs at night as they primarily visit landmarks and have food as part of all-inclusive programmes during the day.

The city recently introduced night tourism activities such as the “District 1 - Night Colours” and “Sleepless in Saigon” tours.

They take tourists through 30 routes and nearly 20 sightseeing spots on a double-decker bus between 11pm and 7am.

According to Nguyễn Khoa Luân, director of Anh Việt Hop on Hop off Vietnam, the city is among the few places in the country that combine multiple factors for nighttime economic development. 

The use of double-decker buses helps tap the nighttime economy, and increasing the frequency and service hours of double-decker buses enhances competitiveness in the region.

Since mid-November, when tourism revenues peak, there have been a series of events. 

Over five million foreign visitors arrived in the city in the first 11 months of 2023, up 44.3 per cent year-on-year and accounting for 50 per cent of the country’s total number.

With flights resuming on all routes and visa policies eased since August the city hopes to achieve even higher revenues in 2024.

Incentives abound for minimum tax adoption

Vietnam has been urged to create more incentives for foreign investors following the country’s decision to apply a new international corporate income tax top-up.
 
Nguyen Tran Minh Tri, a representative from the Institute of World Economics and Politics under the Vietnam Academy of Social Sciences, proposed that the government should, as soon as possible, enact new incentives for foreign-invested enterprises (FIEs), especially those with large-scale projects, to help the country continue to be a magnet for foreign investment.

Vietnam is to apply the global minimum tax (GMT) of 15 per cent on multinational corporations (MNCs) with a revenue exceeding €750 million ($821.6) million from January 2024.

“This means that the country’s investment climate will be less attractive,” Tri stressed at a forum on Vietnam’s 2021-2024 economic performance in Hanoi earlier this month. “To maintain existing incentives for FIEs, the government needs to soon offer non-tax support.”

The National Assembly a month ago passed a resolution on the imposition of top-up corporate income tax (CIT) of 15 per cent under Global Anti-Base Erosion model rules, which will take effect on January 1 next year until the country’s new law on CIT is released.

Under the resolution’s Article 2 on taxpayers, the taxpayers in Vietnam include a member company of an MNC with a turnover equivalent to $821.6 million or more in the consolidated financial statements of the ultimate parent company for at least two of the four years immediately preceding the fiscal year.

For Vietnam, the imposition of the GMT will help ensure the country’s right to levy the tax, in line with the international practices and trend currently deployed by so many nations.

Under a government report on assessing the impact of the resolution, based on 2022 CIT data analysis, it calculated that over 120 FIEs will be subject to the resolution, with a total amount of top-up CIT of about $616 million.

Tri said that, in principle, the support of enterprises which are subject to the GMT is applied after enterprises have fulfilled their GMT obligation in Vietnam.

“The government can use this payment to support businesses in the form of costs for research and development, investment into equipment, and production of high technologies. For example, India has a policy on providing a specific sum of money for each unit of product sold out in the market,” Tri said.

“This support policy can be applied to all types of enterprises based on characteristics of their specialised operations. This will not violate the wider GMT principles,” Tri added.

Vietnam’s current general CIT rate is 20 per cent, which is higher than the GMT rate. However, this rate is just of nominal value because all major foreign-invested projects in Vietnam have been currently enjoying special incentives policies covering various investment fields, locations, and labour use scales.

Thus, many MNCs are entitled to a four-year tax exemption and a half tax reduction for nine years, or a two-year tax exemption and half tax decrease for four years, so the total amount of their paid tax is less than 15 per cent.

“If Vietnam does not collect the GMT from these enterprises, this tax value difference will fall into the hands of the countries where the parent companies are based,” said the General Department of Taxation’s deputy general director Dang Ngoc Minh.

At present, the department is studying this policy, which will replace the existing CIT incentives for FIEs, which will be affected by the GMT.

“The upcoming policy incentives must be based on the amounts the businesses have spent, ensuring they directly support the investment. This is especially true for large corporations and multinationals that own core technology, as well as priority sectors, such as semiconductor technology and chip manufacturing,” Minh said. “Simultaneously, it is necessary to accompany enterprises right from the start, facilitating construction and the procurement of equipment and machinery while providing housing for personnel, infrastructure, and more.”

According to Vu Ngoc Thang, tax manager at consultancy firm Dezan Shira & Associates, if tax incentives are invalidated in Vietnam and there are no appropriate measures in place, other countries will benefit from top-up taxes and Vietnam will miss out on billions of US dollars of tax outflows to other countries’ budgets.

In the global context, the major stakeholders are quickly responding to the adoption of GMT. Specifically, it is being carried out by the EU, the UK, and South Korea in 2024. Vietnam is strongly attracting investment from these nations, as well as the United States and other powerhouses. What is more, Malaysia and Thailand are set to implement the GMT in 2024 and 2025, respectively, and they are big rivals of Vietnam in luring funding from abroad.

“In this respect, Vietnam must devise certain solutions to protect its taxing rights and maintain sustainable foreign inflows by offering alternative incentives,” Thang said.

Meanwhile, Rizwan Khan, partner at consultancy firm Acclime Vietnam, said that Vietnam may be able to maintain its appeal by carrying out other policies to offset the negative effects of the GMT.

“For example, Vietnam could improve its public services, governance, and regulatory quality. It could also diversify its foreign investment sources, and foster more links with domestic firms,” Khan said

According to the International Monetary Fund (IMF), the GMT adoption in 2024 will increase tax revenues but will require improvements to the investment climate. Vietnam could be among those most affected by the GMT – as it has often granted tax incentives to MNCs to attract FDI, including lower income taxes, that will be eroded.

“The effects of the higher tax can be compensated by improving the business environment, upgrading infrastructure, and enhancing human capital,” the IMF stated.

Stay-away investors neglecting completion process

The physical absence of certain foreign investors is slowing down procedures and hampering planned construction projects.

After the government in late November assigned ministries and localities to prepare necessary conditions to welcome new capital, localities were eager to appraise and approve dossiers to grant investment licences.

The people’s committees of provinces and centrally -run cities such as Hanoi, Hai Duong, Bac Giang, Nghe An, and Ho Chi Minh City are proactively approaching and supporting investors to remove pending difficulties and accelerate disbursement of such capital.

The committees require their local authorities to speed up handling of business investment procedures, and simultaneously deploy electronic public administrative services for investors.

However, according to localities like Hai Duong, one of the reasons causing delays in handling business investment procedures is the absence of investors.

“Post-pandemic, many foreign investors work online more often. They authorise consultant and law firms to complete the investment procedures. They often give authority to contractors during the process and only arrive in Vietnam to take the facilities into operation,” said Nguyen Thi Thuy Hang, deputy director of Hai Duong Industrial Parks Management Authority.

However, Hang said that the absence of investors makes it difficult for authorities to guide the details of many business procedures.

“We also suffer the pressure of complying with the deadline to license projects. Project dossiers take a lot of time to read. They are the basis for applying for firefighting permits, construction licences, and environmental impact assessment reports. If there are documents missed and the investor is not present to promptly supplement them, then it also prolongs the licensing period,” Hang added.

She also said that in many cases, investors granting absolute authority of construction of facilities to contractors has caused unexpected violations. For example, many have constructed projects without a licence, and as a result, the investors have to suffer the fine.

According to other localities, this most often occurs with small- and medium-sized projects. According to information from the Vietnam Chamber of Commerce and Industry, over 80 per cent of foreign-invested enterprises in Vietnam have capital below VND100 billion ($4.2 million) each, a quarter employ fewer than 10 workers, and just over half have fewer than 50 workers. Thus, localities expect tight cooperation with investors to accelerate the licensing process.

Prime Minister Pham Minh Chinh at a conference with foreign-invested enterprises (FIEs) in October said that the country would provide optimal conditions for FIEs to develop long-term and healthily compete with those from other economic sectors.

“Ministries and localities need to continue effectively implementing policies and laws; review and adjust foreign cooperation policies to suit reality; and listen to the ideas of businesses and investors to settle all arising problems,” PM Chinh said. “Ministries and localities should seriously listen to such recommendations in a spirit of sharing, understanding, and companionship.”

New real estate law to clean up conditions

The new Real Estate Business Law, passed by the National Assembly in November and effective from 2025, could narrow the scope of regulation and tighten conditions for transferring real estate projects.
 
The 2025 entry of a new law for real estate business will also come alongside a revamped housing law, photo Dung Minh
According to Nguyen Van Dinh, real estate legal expert, according to the new law, investors who want to transfer all or part of a real estate project need to fulfill their financial obligations related to project land and transfer.

“The new law stipulates that the transferor must fulfill its financial obligations to the state before transferring, not allowing the transferee to continue to fulfill their obligations as suggested by many experts previously,” Dinh said.

The new law also does not allow agencies and organisations to sell houses, construction works, or transfer land use rights due to bankruptcy, dissolution, division, or company separation.

In addition, credit institutions and debt management companies are not allowed to sell houses, construction projects, transfer land use rights, or transfer real estate projects as collateral for recovery debt.

“The transfer in this instance shall comply with the Law on Credit Institutions currently being amended, and the Law on Real Estate Business shall not apply for those cases. This provision ensures that the relevant transfer conditions are only applied in a single law and avoid overlap between laws,” Dinh said.

After a decision to allow the transfer is issued and the parties have signed the contract, land procedures will be carried out according to the provisions of the Land Law. The draft Land Law recommends that the transferee inherit the rights and obligations of the transferor without having to recover and deliver land or recalculate land use fees.

“This condition revised the disadvantage of the 2014 Real Estate Business Law, which stipulated that the transferor must return the land to the state, which can then allocate the land to the transferee,” Dinh added.

Phan Xuan Can, chairman of merger and acquisition consultants SohoVietnam, told VIR that one of the highlights in the new law was that projects can be transferred when its owners have transferees completed all necessary conditions but have not received a land use rights certificate, but meanwhile can continue to submit to competent bodies for issuance after the project is transferred.

“This is a step to save time for both sides because they have completed all necessary procedures already, before the transfer,” Can said.

In addition, for real estate projects that transfer part of the project, it is also necessary to ensure that the construction items or the use and business purposes of the construction works of the transferred project part should be independent to other parts in a real estate project.

Regarding the principle of transferring all or part of a real estate project, Can said that the new law stipulates that real estate project investors are allowed to transfer all or part of the project to another investor to continue to invest in construction and business while the project is being implemented and approved by a competent state agency.

When transferring all or part of a real estate project, related parties must ensure that the planning and objectives of the project will not be changed, ensuring the legitimate rights and interests of customers and related parties.

“At the same time, after completing the transfer of all or part of the real estate project, the transferee inherits the rights and obligations of the transferring investor and is the investor of the project and the part which were transferred,” Can explained.

The investor who receives the transfer of all or part of a real estate project does not have to redo the project documents, construction planning and construction permit of the project if there are no changes in the content of the project. If there are changes, the investor receiving the transfer shall make adjustments according to the provisions of law, Can added.

Fuel environment tax cut from Jan 1, 2024

The National Assembly Standing Committee has issued a resolution to cut the environmental protection tax on fuel by 50%. This resolution comes into force from January 1, 2024.

As per the resolution, the environmental protection tax will be as follows: VND2,000 per liter for gasoline, VND1,000 for jet fuel, diesel oil, heavy fuel oil, lubricating oil, and lubricant grease and VND600 for kerosene. These tax rates will remain in effect from January 1, 2024, to December 31, 2024.

Starting on January 1, 2025, the environmental protection tax for gasoline, oil, and grease will return to a price ceiling structure, ranging from VND1,000 to VND4,000, in accordance with Resolution 579/2018 of the National Assembly Standing Committee.

The Ministry of Finance highlights the crucial role of gasoline and oil as essential inputs for numerous manufacturing sectors, affecting various segments of the economy. Consequently, the reduction in environmental protection tax for fuel is expected to alleviate the economic burden on residents and businesses.

It is estimated that the reduction in environmental tax revenue from fuel will amount to VND38,929 billion, resulting in a total reduction in the state budget of VND42,822 billion, which includes portions subject to VAT cuts due to this reduction.

Exports of agro-forestry-fishery products at record high

Vietnam’s agro-forestry-fishery product exports have reached an unprecedented milestone, at a remarkable US$53 billion in revenue this year.

This achievement has catapulted the nation to enjoy its highest trade surplus, amounting to US$12.1 billion, constituting 42.5% of the country’s total trade surplus.

Phung Duc Tien, Deputy Minister of Agriculture and Rural Development, disclosed this information during a press conference on December 29, which focused on reviewing the 2023 activities and discussing the 2024 plans for the agricultural sector.

Tien emphasized that, despite numerous challenges in export markets for agro-forestry-fishery products, the entire sector has achieved an impressive gross domestic product (GDP) growth rate of 3.83%, a record high over the past decade.

Of particular note, the export of vegetables and fruits surged by 69%, resulting in revenues of US$5.69 billion, while rice exports witnessed a substantial increase of 38%, reaching US$4.78 billion compared to the previous year.

Furthermore, exports of four other key products exceeded the US$3 billion mark, with cashew nuts reaching US$3.63 billion, coffee at US$4.18 billion, shrimp at US$3.38 billion, and wood and wooden products at US$13.37 billion.

Although the export revenue for agro-forestry-fishery products fell short of the government’s target, several products demonstrated impressive growth. For example, durian exports generated a remarkable US$2.25 billion in revenue, a five-fold increase from 2022. ST25 rice has also been recognized as the world’s best for the second consecutive time.

Deputy Minister of Agriculture and Rural Development mentioned that while the U.S. was Vietnam’s largest buyer in 2022, China has surpassed the U.S. in 2023 to account for the largest market share of exports at 22%.

Value added tax reduced until middle of next year

Goods and services except for some sectors will be entitled to a two-percentage-point reduction of value-added tax (VAT) until the middle of the year 2024.

According to a decree recently issued by the Government following the National Assembly’s Resolution, the incentive VAT rate of 8% on goods and services will remain till the end of June next year. However, sectors such as banking, securities, real estate, and telecommunications will continue to be excluded from this VAT reduction.

This VAT reduction applies uniformly throughout all stages, from importation and production to processing and trading. Goods and services not eligible for VAT or subject to a 5% VAT rate will adhere to existing regulations and are not entitled to a VAT cut.

In the face of both local and global economic challenges, the Government sees the VAT cut as a crucial measure to provide support to businesses and households.

Previously, a two-percentage-point VAT reduction was implemented on July 1, 2023 on numerous goods and services previously taxed at a rate of 10%.

HCMC to complete several major transportation projects in 2024

The government of HCMC expects to finalize several major infrastructure projects in 2024, thus alleviating traffic congestion in the city.

One key project is the road connecting Tran Quoc Hoan and Cong Hoa streets in the vicinity of Tan Son Nhat International Airport. This project, costing over VND4.8 trillion, is expected to be completed by the end of 2024.

When in place, the road will provide a connection between the under-construction Terminal 3 at the Tan Son Nhat International Airport and the city center.

In District 7, the tunnel at the Nguyen Van Linh-Nguyen Huu Tho intersection is also set to be completed next year. The first phase of this project, costing VND830 billion, includes two tunnels, with each being 456 meters long having three lanes.

The first tunnel is slated to open to traffic in mid-2024, with the second tunnel following six months later.

Several other significant projects are scheduled for completion in 2024, including the Nam Ly Bridge in Thu Duc City, the Rach Dia and Phuoc Long bridges connecting District 7 with the outlying district of Nha Be, and the Ba Hom Bridge in Binh Tan District.

Additionally, expansion projects for Tan Ky Tan Quy, Ten Lua, and Duong Quang Ham streets are also planned for completion in 2024.

Bui Xuan Cuong, vice chairman of the HCMC People’s Committee, emphasized the need to boost work on three crucial projects aimed at improving traffic conditions in HCMC, including HCMC Beltway No. 3, An Phu interchange, and the expansion of National Highway 50.

Central bank urges caution in gold trading

The central bank has warned people to take caution when trading gold amid the strong fluctuations of the precious metal.

Đào Xuân Tuấn, Director of the State Bank of Vietnam (SBV)’s Department of Foreign Exchange Management, noted that the bank has prepared measures to stabilise the domestic gold market, referring to the increase of SJC-branded gold bullion supply.

The central bank always closely monitors market developments and is ready to take solutions to stabilise it in order to minimise the impacts of gold price fluctuations on exchange rates, inflation and macroeconomic stability, he affirmed.

It will continue coordinating with the Ministry of Public Security and other relevant ministries and agencies to intensify inspections over gold business, Tuấn continued.

The price of gold bullions in Việt Nam had skyrocketed over the past weeks, even peaking at VND 83 million (US$3,419) per tael. The difference between domestic and world gold prices has continuously expanded in recent days, reaching nearly VND 20 million per tael at certain moments.

Given this, Prime Minister Phạm Minh Chính has issued a dispatch asking for measures to strengthen the management of the domestic gold market.

He ordered relevant agencies to work with the SBV to immediately roll out measures to strictly handle violations, especially smuggling, manipulation and speculation, ensuring a stable, transparent, safe, healthy and effective domestic gold market. 

Several automobile manufacturers recall vehicles in 2023

Several car manufacturers in the Việt Nam market have issued recalls to address various issues in their vehicles in 2023.

Hyundai initiated a recall in February 2023, involving 17,670 Hyundai Santa Fe vehicles produced between January 30, 2021, and October 15, 2022. The recall was due to an error related to the front seat belt tensioner. In certain collision scenarios, the airbag detonator could activate, causing an increase in pressure in the front seat belt tensioner's air generator. This pressure overload could lead to bursting components, potentially endangering the occupants. The recall was expected to continue until February 1, 2033, for imported vehicles and January 10, 2033, for domestically assembled vehicles.

Ford recalls 3,223 Everest and Explorer vehicles

In September 2023, Ford announced a recall for the 2021-2023 Ford Everest and 2018-2023 Explorer models, affecting a total of 3,223 vehicles.

The recall included 1,256 Everest vehicles manufactured between November 24, 2021, and February 3, 2023, which were equipped with faulty engine control module software. This software issue could limit the charging current to the battery, resulting in unintended battery drain and insufficient voltage to restart the vehicle.

Additionally, 1,967 Explorer vehicles were recalled due to an error with the 360-degree camera display screen. Ford dealers offered free repairs for the affected vehicles, with the recall starting on August 31 for Everest vehicles and September 5 for Explorer vehicles.

Mercedes-Benz recalls nearly 3,000 vehicles

Mercedes-Benz issued two recall orders in December, affecting a total of 2,909 vehicles. The first recall involved 2,258 vehicles with faulty fuel pump systems, including models such as C200, E180, E200, E300, GLC200, S450, Maybach GLS 480 4MATIC, AMG GT 53, GLS 450 4Matic, and V250. These vehicles were produced between August 2021 and September 2022, with 1,800 of them already delivered to customers. The second recall involved 651 Mercedes-Benz GLC (X254) cars manufactured in Việt Nam between November 2022 and May 2023, with 517 vehicles already delivered. The recall was related to an error with the tow hook thread hole.

Audi recalls 445 Q2, A6, A7 cars

Audi conducted a significant recall in August, involving 445 vehicles. The recall included 197 Audi Q2 vehicles manufactured from January 1, 2012, to December 31, 2021, with plastic side panels (decorative panel on the outside of the C-pillar) that could partially detach. In some cases, these panels could fall off while the vehicle was in motion, posing a danger to vehicles behind. Audi Việt Nam also conducted a parallel recall for 248 Audi A6 and Audi A7 units produced between January 1, 2020, and December 14, 2022, due to issues related to fuel sensors. The affected vehicles were inspected and repaired free of charge within approximately two hours.

These are just a few notable car recalls that occurred in the Việt Nam market in 2023. It's important to note that recalls aim to address potential safety or performance issues and ensure the well-being of the customers. 

Hà Nội’s economy expands 6.27 per cent in 2023

Hà Nội has recorded a year-on-year growth rate of 6.27 per cent in gross regional domestic product (GRDP) in 2023, with improvement seen quarter by quarter, said the municipal Statistics Office.

The rate stood at 5.81 per cent in Q1, 5.91 per cent in Q2, 6.22 per cent in Q3, and 7 per cent in Q4, Director of the office Đậu Ngọc Hùng said, considering this year’s growth as fairly good amid complex and unpredictable developments in the world and global trade contraction.

The service sector has expanded 7.26 per cent in 2023 compared to last year, contributing 4.69 per cent to the GRDP growth. Several sub-sectors have posted relatively good growth, including administrative and support services (including tourism) up 16.33 per cent; arts and entertainment 15.39 per cent; wholesaling and retailing 10.48 per cent; finance, banking, and insurance 7.77 per cent; and transportation and warehouse services 7.7 per cent.

Meanwhile, the industry and construction sector this year has increased 5.29 per cent from 2022, contributing 1.18 per cent to the GRDP growth. The index of industrial production has grown by only 3 per cent year on year, with processing and manufacturing up 2.6 per cent, data show.

Hùng noted that industrial production faced an array of difficulties and challenges in 2023 due to global trade decline. Sales of key industrial exports dropped while domestic consumption slowed down and input costs soared, causing pressure on production.

Foreign trade faced many adversities with decreased exports to and imports from most major and traditional markets of Hà Nội. The situation had improved since Q4, but difficulties remained, the official noted.

Total foreign trade this year stands at US$54.4 billion, down 6.4 per cent year-on-year. That consists of $16.7 billion in exports and $37.7 billion in imports, respectively falling 2.4 per cent and 8.1 per cent, according to the Statistics Office.

During the year, the capital city has attracted more than $2.94 billion in foreign direct investment (FDI), comprising $441 million poured into 408 new projects, $307 million into 175 existing projects, and $2.19 billion into 326 transactions to contribute capital to and purchase shares of local companies.

In addition, 31,400 new businesses with registered capital of VNĐ346.6 trillion ($14.28 billion) have been established in Hà Nội in 2023, respectively up 6.3 per cent and 5 per cent from last year. Over 8,900 companies have resumed operations, down 8 per cent.

While 21,700 firms have suspended operation, up 33 per cent, 3,500 others dissolved, down 2 per cent.

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