Multisectoral collaboration has become a rising trend among the Vietnamese business community, especially micro-, small- and medium-sized enterprises thanks to benefits for all parties involved, according to experts.

Dr. Cao Dinh Khien from the Foreign Trade University said that with the development of technologies and globalisation, this form of collaboration is becoming obvious, helping participating firms expand their operation scale, reduce costs, and increase competitiveness.

In Vietnam, many policies have been introduced to encourage multisectoral economic development and speed up the international economic integration process through the opening of the economy and actively engaging in global economic organisations, he noted.

The expert held that this has created potential and opportunities for development but also posed challenges for domestic firms, requiring them to foster connectivity and optimise advantages from the linkage to enhance their competitiveness.

However, Dr, Kien said that business collaboration in Vietnam is small with horizontal and cluster linkages to form craft villages or business associations in a certain industry. Meanwhile, the rate of business linkages for core business activities or participation in the global value chain is still modest, mostly because the majority of businesses in Vietnam are still of a small scale with a lack of production standards.

He said that in order to promote business connectivity, it is necessary to increase the engagement of the State, trade associations and businesses. He underlined that active businesses play a key role in forming and operating economic connections, especially in seeking cooperation opportunities in dealing with difficulties in the value chains that they are operating in.

Meanwhile, Nguyen Minh Tien from the BNI Foundation in Vietnam said that by joining a network, businesses will be trained to use shared databases to create more business opportunities, thus enhancing revenue and profits.

2024 GDP growth target feasible: experts

Experts said Vietnam has the potential to achieve a GDP growth of 6-6.5 percent in 2024, driven by public investment, consumer spending, import-export recovery, and monetary policies.

The monetary easing policy implemented from mid-2023 would support growth momentum next year.

Meanwhile, the accelerated disbursement of public investment has helped stimulate the inflows of private capital and foreign investment, contributing to supporting businesses in their recovery and development efforts.

Consumer spending, as one of the crucial factors in the economy, also serves as a driving force to boost growth.

Import-export activities have shown signs of recovery recently, which will encourage businesses and manufacturers to hire additional laborer, thereby stimulating higher spending demand.-

Measures sought to help domestic firms optimise US market

Experts gathered at a forum in HCM City on Thursday to seek ways for domestic firms to effectively exploit the US market as the two countries have upgraded their ties to a comprehensive strategic partnership.

According to Phan Thị Mỹ Yến, director of the Centre for Vietnamese Trademark Research and Development under the Việt Nam Union of Science and Technology Associations (VUSTA), US demand for Vietnamese farm produce is high, but the majority of the products are being sold in the market under foreign brands, which is a difficulty for both farm produce businesses and those involving in branding activities in Việt Nam.

Yến said that the upgrade of the Việt Nam-US relations has provided a good opportunity for Vietnamese firms to access the US market for higher export revenue and better reputation.

However, she said that to effectively exploit this market, Vietnamese agricultural and food businesses should pay greater attention to building their trademarks in a scientific manner, while systematically investing in their production to enhance the quality of their products, thus enhancing their reputation and competitiveness.

Deputy Minister of Agriculture and Rural Development Phùng Đức Tiến said that the US is a large market and a target of many exporters, but entering this market is still a challenge for Vietnamese businesses.

He advised domestic firms to strengthen the application of science and technology in the processing stage.

Economist Dr. Lê Đăng Doanh stressed the need to design policies and solutions to exploit the US market, to which the door has opened wide. He recommended that domestic firms actively participate in trade promotion activities and fairs, while connecting with relevant agencies, building trust among US consumers, and optimising digital technology to seek partners.

The economist pointed out that US trade defence remedies, tariff barriers and competition from South American, Asian and African rivals have been among greatest difficulties for Vietnamese exporters in the US.

Huỳnh Minh Triết from the Trade Office of the US Consulate General in HCM City said that Việt Nam and the US are heading together toward sustainable and balanced cooperation.

The US has encouraged Vietnamese firms to expand investment and business in many areas of the country from consumer goods, garment and textile, energy, bio-pharmaceuticals, automobiles, machinery and equipment, hotel and tourism.

The US is not only a "launching pad" for Vietnamese businesses to export to other American markets, but also a good production venue thanks to abundant material sources and abundant financial resources with various private investment funds that are ready to support foreign investors, he underlined. 

MoIT rolls our measures to prevent fuel shortage in 2024

The Prime Minister has instructed the Ministry of Industry and Trade (MoIT) to ensure the nation's fuel supply in 2024.

According to the MoIT, Việt Nam's estimated fuel demand for this year was 28.42 million cubic metres/metric tonnes, maintaining an upward trend observed in recent years.

According to Minister Nguyễn Hồng Diên, MoIT's top priority this year is to ensure a robust supply of petroleum for production, business, and consumption by the public and enterprises.

Phan Văn Chính, head of the MoIT's Domestic Market Department, said the total import, domestically produced, and refined petroleum sources for 2023 were estimated at 26.02 million cubic metres/metric tonnes, with approximately 10.2 million imported.

Diên said last year's failures to follow the ministry's fuel distributing plan and legal requirements had resulted in sporadic shortages across the country. Inspection, examination, and handling of violations in the petroleum industry were not effective in some areas.

The ministry, this year, will be focusing on maintaining minimum trade reserves, fulfilling tax obligations, and effectively managing and utilising fuel stabilisation funds. Considering the anticipated challenges for the global economy, including trade tension, geopolitical issues, and economic and financial crises occurring worldwide, the minister stressed the necessity for contingency plans to help achieve the ministry's objectives in any situation.

Meanwhile, domestic demand for fuel will likely continue to increase.

"It is important we plan beyond annual demand cycles to cover monthly and quarterly intervals as well," Diên said, adding that as long as the industry's major players strictly adhere to the directives of the Government and the Prime Minister's Office, there shouldn't be any fuel shortage this year.

However, measures must be taken to ensure compliance with regulations on the application of management software to ensure objectivity and transparency, as well as the issuance of electronic invoices in the industry according to the Government's decree and the guidance of the Ministry of Finance.

In addition, implementation of the allocated total minimum petroleum supply, with plans for monthly and quarterly deployment, will play a crucial role. Fuel retailers, based on recorded activity levels, should actively provide feedback and propose policy mechanisms or situation-specific solutions to effectively navigate unusual market developments in the petroleum sector.

In a recent MoIT meeting with large fuel retailers and traders, the minister asked them to form contingency plans to ensure adequate supply to meet market demands and allocate sufficient manpower to meet demand during the Tết (Lunar New Year). 

RoK seeks to import graphite from Vietnam

The Republic of Korea (RoK)’s Technology DA Company on January 3 announced that it has signed an exclusive contract for importing natural graphite with Vietnam Graphite Group (VGG).

Under the contract, VGG plans to supply at least 20,000 tonnes of natural graphite every year to DA Technology, which has the exclusive right to import and distribute natural graphite of 99.97% purity produced by VGG in the RoK.

A representative from DA Technology said that in 2023, the RoK relied on China for 96.4% of its natural graphite needs, the highest rate in the past five years. As China has strengthened control on graphite exports from December 2023, the Korean company hopes the freshly signed contract will have a positive impact on the supply of the mineral to the country.

DA Technology plans to jointly invest in graphite processing and refining facilities to expand graphite production capacity (CAPA). 

Due to the recent boom in demand, high-purity graphite has been widely used in lithium-ion battery production.

VGG is holding the right to exploit a graphite mine with a total area of 34.3ha in the northern province of Yen Bai. The company also owns a graphite processing plant in Tran Yen district, Yen Bai province.

The total crude ore reserves of the graphite mine are estimated at 4 million tonnes, and VGG's graphite production plant is capable of processing 400,000 tonnes of ore concentrate per year.

Vietnam prioritises driving growth momentum this year: Cabinet

Vietnam will  focus on boosting growth, maintaining macroeconomic stability, controlling inflation, and ensuring key balances of the economy in 2024, stated Minister-Chairman of the Government Office Tran Van Son while chairing a regular government press conference in Hanoi on January 5.

Noting that 2024 continues to be a challenging year for Vietnam, Son said in addition to bolstering traditional growth drivers like investment, exports, and consumption, there is a need to promote new ones like regional linkages, science and technology, innovation, digital transformation, green transformation, semiconductors, and hydrogen. Notably, the government is determined to cut state budget expenditures by 5% and increase budget revenue by at least 5%, he added.

Moreover, ministries and localities will continue to streamline administrative procedures and business regulations, Son said, adding that the goal for 2024 is to reduce administrative compliance costs by at least 10%. Efforts are set to be intensified in resources management and environmental protection, with resources allocation for disaster prevention and climate change response prioritised. Foreign relations and international integration will also be further strengthened.

The official stressed the country’s 2023 encouraging results, with economy expanding quarter-on-quarter to reach 5.05%, placing Vietnam among the high-growth countries regionally and globally and raising the size of the economy to around 430 billion USD.

The stability of the monetary and foreign exchange markets was maintained, with interest rates decreasing by approximately 2 percentage points compared to the end of 2022. The agricultural sector remained resilient, registering a growth of 3.83% – the highest in the past decade. The service sector grew by 6.82%, and the total retail sales of goods and consumer service revenue by 9.6%. The industrial sector rebounded quickly each quarter, logging a 3.02% annual growth.

The state budget revenue exceeded the estimate by around 8.12%, enabling the allocation of approximately 560 trillion VND (22.97 billion USD) for salary reform over the next three years (2024-2026).

Foreign direct investment (FDI) attraction, meanwhile, reached nearly 36.6 billion USD, up 32.1% year-on-year, in the context of global trade and investment contraction. Actual FDI disbursement was close to 23.2 billion USD, the highest ever recorded, indicating that Vietnam remained an attractive destination for foreign investors. The digital economy's contribution to GDP hit about 16.5%, making Vietnam the fastest-growing digital economy in Southeast Asia for the two consecutive years.

At the event, Deputy Governor of the State Bank of Vietnam Dao Minh Tu announced that the credit growth target for 2024 is expected to be 15%, with the figure for 2023 standing at 13.71%.

Green energy - A trend in sustainable development

Vietnam is among countries demonstrating the strongest commitment to the global transition to green energy. The approval of the National Power Development Plan VIII for the 2021-2030 period partly showcases Vietnam’s goal of reducing emissions in the energy industry. Such efforts are highly commendable, involving state-owned and private enterprises and aligning with global development trends.

This is a site for manufacturing and supplying offshore wind turbine foundations for a project in Taiwan (China).

The project is a significant effort by the PetroVietnam Technical Services Corporation, which has utilised its core services and extensive experience in offshore oil and gas to participate in the global offshore renewable energy supply chain.

The arrival of a ship carrying nearly 70,000 tons of liquefied natural gas (LNG) at the Thị Vải LNG Terminal in Ba Ria-Vung Tau province is another notable milestone in Vietnam’s green energy transition.

For the first time, Vietnam has an LNG terminal, facilitating importation to support the development of its energy industry.

With the goal of comprehensive development from upstream to downstream stages to maximise the efficiency of natural gas power generation, many power plants have been built to anticipate “flows” of LNG.

However, these projects also face various challenges.

According to analysts, gas power is a crucial transition step in greening the country’s energy industry.

Insiders have said that to make this transition a reality and avoid any resource waste, relevant agencies and related ministries need to take even more decisive action, aiming towards sustainable economic development and reducing emissions to fulfil commitments to net-zero emissions.

Energy development must go hand-in-hand with economic growth: Insiders

Vietnam needs to develop its energy sector in tandem with economic development, thereby constructing appropriate strategies to promote sustainable development and ensure national energy security, said insiders.

Resolution No. 55-NQ/TW dated February 11, 2020, by the Politburo on orientations for the national energy development strategy by 2030, with a vision to 2045, emphasises the priority of rapid and sustainable energy development linked to protecting the environment, and ensuring national defence and security, and social progress and justice.

Vietnam witnessed an average increase of 6.8% in energy consumption per year during 2016 - 2020. The proportion of electricity consumption in the total energy consumption increased to 28.4% in 2020 from 25.7% in 2015.

National Power Development Plan VIII forecasts that commercial electricity will maintain a yearly increase of about 8.7% in the 2021 - 2030 period, with electricity production expected to reach about 378.3 billion kWh by 2025 and 567 billion kWh by 2030.

Notably, Vietnam's economic development still relies mainly on industries that consume a lot of energy while the efficiency of energy use in general and electricity in particular is lower than other countries in the region and the world.

Hoang Viet Dung from the Energy Efficiency and Sustainable Development Department under the Ministry of Industry and Trade underlined the need to strengthen international cooperation and science and technology research, as well as increase technical and financial support in order to promote investment, production and business projects that use energy economically and effectively.

Meanwhile, Vuong Quoc Thang, a full-time member of the National Assembly's Science, Technology and Environment Committee, mentioned international experience in ensuring energy security, saying that countries pay heed to diversifying supply sources, promoting energy autonomy, and tapping the potential of renewable energy sources.

Vietnam’s electricity industry should expand safe and effective exploitation of wind and solar energy sources, he said.

To foster the development of renewable energy, attention should be paid to developing a legal framework, infrastructure, investment capital, human resources, technology, and stable operation, he added.

Experts said that Vietnam needs to focus on researching and developing energy sources of electricity, oil and gas, new and renewable energy, especially encouraging and facilitating the development of clean energy sources such as solar and hydrogen energy.

They underlined the importance to promote a competitive and transparent energy market and universal energy access, improve the quality of energy supply, and support services at prices suitable for the ability of almost people in accordance with market mechanisms.

Vietjet named among the world’s safest airlines by AirlineRatings

Vietjet has been once again listed among the world’s safest airlines for 2024 by AirlineRatings, the world’s famous airline safety and product rating website.

In making its annual evaluation, AirlineRatings monitored 385 global airlines by considering the airlines’ incident records in recent years, fleet age, results of audits conducted by the governing body of aviation, the International Civil Aviation Organisation (ICAO) and other aviation authorities.

Vietjet and other notable low-cost peers in the world such as Ryanair, easyJet and Frontier have been honoured in the top 10 for many consecutive years, rewarding their excellent performances in flight safety for flight crew and passengers.

AirlineRatings.com Editor-in-Chief Geoffrey Thomas said: “Vietjet's dedication to maintaining a culture of safety across all aspects of operations is commendable, especially when it is actively expanding the flight network.

"The implementation of robust safety management system and strict compliance with international regulations have contributed to the airline’s excellent technical reliability indicators. This, in turn, ensures the highest level of safety for their operations in many years.” 

AirlineRatings also rates Vietjet at seven-star level, the highest ranking for aviation safety in the world for many consecutive years since 2018.

Vietjet has continuously added new aircraft to its modern and fuel-efficient fleet, with technical reliability at 99.72 per cent among top operators in the region and the world.

The airline has been constantly investing in training, aircraft engineering and MRO services to ensure the highest standard in terms of safety and quality.

In a recent move, Vietjet Aviation Academy (VJAA) officially became a training partner of the International Air Transport Association (IATA) to ensure high quality aviation workforce.

In addition, Vietjet and Lao Airlines have joined forces to operate an aircraft maintenance center at Wattay International Airport in Vientiane, Laos. This collaboration enhances the airline's proactive approach to aircraft maintenance management.

AirlineRatings rates the safety, in-flight product, and has been used by millions of passengers from 195 countries and has become the industry standard for safety, product rating.

Central bank signals no rate hike, continues support policies this year

Deputy Governor of the State Bank of Việt Nam (SBV) Đào Minh Tú said at the press conference on Wednesday that the central bank will not consider increasing operating rates and might extend debt rescheduling policies to support enterprises this year.

“Interest rates have dropped to the lowest level in the past 20 years. Commercial banks say that rates cannot be lower, but the central bank urges efforts to reduce costs to create room for supporting the economy,” Tú said.

The central bank will manage rates in the direction of not increasing operating costs, and based on global economic development and major macro balances, he said.

Cutting operating rates four times by 0.5-2 per cent allowed reductions of around 2 per cent per cent in deposit and lending rates compared to the end of 2022.

As of the end of 2023, lending rates for prioritised sectors were reduced to below 4 per cent per year and the average deposit rate was 3.5 per cent per year. The average lending rate for new loans was 6.7 per cent.

The credit growth rate was 13.5 per cent in 2023, not achieving the target of 14-15 per cent but still positive in the context of economic difficulty, Tú said.

The monetary market was kept stable while inflation was under control in 2023.

The Vietnamese đồng depreciated by 2 per cent, a very low level compared to the depreciation of other currencies, by 12-17 per cent of G7 member countries, for example.

Forecasting that the economy would continue struggling this year, the central bank will consider extending Circular 02 on debt rescheduling and retention of debt category to assist in difficulties in 2024, Tú said.

The focus of the central bank will be on ensuring adequate capital for the economy but also keeping bad debts from rising.

Besides, the handling of weak banks will be strengthened in 2024, with greater determination, Tú said, adding that zero- Vietnamese đồng and under-special control banks, including Sài Gòn Joint Stock Commercial Bank (SCB), are in stable operation and gradually being restructured. Steps will be raised to gradually handle SCB.

The central bank has set a credit growth target of 15 per cent for the domestic banking system in 2024.

The target can be adjusted depending on developments of the real situation, the central bank said in a document sent to credit institutions.

The SBV requested credit institutions to provide loans in a safe manner and in line with their risk management capacity, liquidity and ability to mobilise capital, while preventing bad debts from rising.

They are also banned from providing preferential interest rate loans for executives and their relatives, businesses within their ecosystems and “backyard” companies.

The central bank said that it will closely monitor actual developments to manage credit growth in a proactive, flexible, prompt and effective manner. It will also adjust the credit growth target and proactively revise credit growth quotas given to each credit institution.

Tú estimated that with a growth target of 15 per cent, around VNĐ2 quadrillion (US$81.8 billion) will be pumped into the economy in 2024.

SBV asked that credit flow prioritise production and business and sectors which create growth momentum, such as investment, consumption and export, together with strict management of credit flow into risky sectors.

In addition, SBV will speed up the digital transformation of the banking system with a focus on ensuring security and safety.

Hau Giang urged to boost sustainable development

The Mekong Delta province of Hậu Giang should capitalise on its strengths for fast and sustainable growth while making contributions to regional and national development, President Võ Văn Thưởng said on January 1.

The province will promote economic restructuring by renewing its growth model, improving its business climate and competitive edge, while attracting high-quality human resources and applying advanced science-technology to serve local livelihoods.

In addition, the province should continue investing in high-tech agriculture, which can add value and gain a competitive edge, Thưởng said.

President Thưởng stressed that economic growth must go with cultural and social development, adding that the province should sharpen its focus on investment, preservation and promotion of cultural and historical values as well as the development of eco-touriss to bolster local socio-economic development.

On the occasion, President Thưởng conferred the first-class Labour Order to the local Party Committee, administration and people.

The province plans to become a locality witnessing industrial development by 2030 under its master planning in the 2021-2030 period and vision towards 2050.

It will have comprehensive social and technical infrastructure and modern economic and industrial parks.

By 2050, it will strive to become an industrial production and logistics centre of the Mekong Delta region. 

According to the province authority, the province will implement breakthrough strategies to boost development.

These include developing two economic corridors along the Cần Thơ - Cà Mau Expressway section connected to Hồ Chí Minh City and the Châu Đốc - Cần Thơ - Sóc Trăng Expressway section connected to localities south of the Hậu River.

The province will develop four economic pillars: modern industry, eco-agriculture, smart urban areas, and quality tourism. 

Thai Nguyen strives to attract 500 million USD of FDI in 2024

The northern province of Thai Nguyen strives to attract 15 new projects to its industrial zones, 500 million USD of foreign direct investment (FDI) and 4.5 trillion VND (over 184.4 million USD) of domestic direct investment (DDI) in 2024, according to the province’s Industrial Parks Management Board.

According to head of the management board Le Kim Phuc, to achieve the targets, the board will focus on removing bottlenecks in land clearance work, continuing infrastructure development projects in industrial parks, and strengthening dialogues with enterprises.

The board will closely coordinate with investors of IP infrastructure projects and investment consulting organisations to renew investment promotion activities. It will also contact and attract strategic investors in potential areas like the semiconductor industry, electronics, and high technology.

The management board and local authorities will continue to enhance administrative reforms, and improve the provincial business and investment environment, he added.
In 2023, the board issued 48 new investment registration certificates to 38 FDI projects and 10 DDI projects with a total registered investment capital of 225.8 million USD and more than 1 trillion VND respectively.

The board also adjusted the investment registration certificates for 121 projects, of that, 23 projects had their total investment capital increased by more than 190 million USD and 997 billion VND.

Thus, in 2023, industrial parks in the province attracted more than 417 million USD, nearly 40% higher than planned, thus continue to place Thai Nguyen among the provinces and cities with the highest FDI attraction capital in Vietnam.

EVNNPT keeps projects on schedule in 2024

The National Power Transmission Corporation (EVNNPT) will commence 34 electricity transmission projects and complete 63 others this year, its Chairman of the Member Council Nguyen Tuan Tung told a conference on Tuesday.

According to the 2024 plan assigned by the Việt Nam Electricity (EVN), EVNNPT will focus on key projects to ensure electricity supply for the country's socioeconomic development throughout the year, including those on enhancing the capacity of the 500 kV north-central power transmission grid and serving renewable power plants as well as the purchase of electricity from Laos.

Additionally, a detailed schedule for the operational progress of key projects will be established, along with plans to secure sufficient capital for projects until 2025, particularly for major and pressing ones.

The Prime Minister has directed local authorities to focus on tackling obstacles in land clearance compensation for EVNNPT's key electricity grid projects.

Tung emphasised that they are also responsible before the PM for any delays in the progress of handing over land for projects in the approved national power development master plan. 

Hai Duong continues to create breakthroughs in attracting investment

The northern province of Hai Duong this year will continue to attract large domestic and foreign investors who have sufficient financial and technological capacities and strong management skills, according to local authorities.

The province would also complete the list of projects calling for investment between now and 2030, Chairman of the provincial People's Committee Trieu The Hung said, adding that projects that might have risks of causing environmental pollution would not be prioritised.

Secretary of the provincial Party Committee Tran Duc Thang said the province focused on luring foreign investment in the fields of high technology, smart technology, biological industry, new materials, processing industry, manufacturing and supporting industries.

In 2024, the locality would continue to improve the quality and efficiency of business support services, deploy solutions to restructure the labour market, associated with bettering the quality of labour training and facilitate the cooperation between businesses and training institutions, authorities said.

They added that accelerating investment promotion activities and perfecting the investment and business environment would also be included.

By the end of November 2023, Hai Duong had attracted more than 1.13 billion USD worth of foreign investment, over three times higher than the same period last year, statistics from the provincial Department of Planning and Investment revealed.

The province is now home to 540 foreign-invested projects with a total registered capital of over 10.16 billion USD. Of the sum, 289 projects, worth above 5.98 billion USD, have been invested in industrial parks.

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