Vietnam's economy recovered rapidly in the first half of 2024 after a challenging period at the end of 2022 and early 2023, thanks to its government’s drastic actions, according to Paulo Medas, head of the International Monetary Fund (IMF)’s 2024 Article IV Mission to Vietnam.

The IMF team, led by Paulo Medas, held the 2024 Article IV consultation with Vietnam from June 12-26.

In a recent interview granted to the Vietnam News Agency in Washington D.C., the official said that Vietnam’s economy rebounded and grew by 6.4% year-on-year in the first half. He attributed this to thriving exports and actions taken by the government and the State Bank of Vietnam (SBV) such as reducing interest rates and increasing public investment and wages.

Regarding prospects for the second half, the expert forecast the Vietnamese economy will continue to recover, but at a slower pace, and may expand by over 6% for the whole year.

The country’s inflation has gone up, and reached around 4.3% year-on-year in June, he stated, predicting it's likely to stay around, close to the SBV target of 4.5%.

The expert also pointed out several latent risks, including the currency depreciation and public wage rise that require the central bank to monitor closely and to take measures to regulate.

To help the country overcome the challenges, he recommended Vietnam to balance economic recovery and inflation risk management.

The State Bank must keep a close watch on the situation and be ready to take actions in case inflation rises sharply, he stressed.

According to Medas, Vietnam needs to pay more attention to medium-term economic growth. The IMF is conducting an in-depth study on what could happen to medium-term growth in Vietnam. In the past 15-20 years, Vietnam's economic performance has been really strong, with the growth higher than the average of emerging markets around the world.

He went on to say that the aging population and climate change are major factors that will impact Vietnam’s economic growth in the future.

Regarding productivity, the IMF expert said that the Southeast Asian country’s productivity growth continues to be lower than other countries around the world. So reforms that can push productivity up can compensate for the demographic issue in the future.

He stressed the need for continued efforts to improve the business environment, upgrade infrastructure, including on energy and renewables, accelerate reforms related to climate, and have good capital markets./.

Vietnamese businesses in UK strengthen connections

More than 50 members of the Vietnam Business Association in the UK (VBUK) have gathered in London to share their operation experience in the European country.

VBUK President Hoang Viet Phuong said that the event aims to provide participants with a chance to meet, exchange ideas, and get updates on the macro-economic situation and information helpful for their operations, especially amid current challenges facing the British economy.

In the time to come, the association will coordinate with the Vietnamese Trade Office and the Vietnamese Embassy in the UK as well as ministries, sectors, and localities to organise trade and investment events to connect Vietnamese and British businesses, thus providing more chances for them to expand partnership and contribute to the two economies, he said.

Meanwhile, VBUK Vice President Nguyen Li Le said the association has always worked as a bridge between Vietnam and the UK as well as a venue for Vietnamese businesses in the UK. She said that such meetings will be held regularly in every two or three months to foster the solidarity among Vietnamese firms for common development.

Along with business issues, participants also shared their experience in many areas such as electricity and gas efficiency in businesses and other noteworthy issues.

VBUK, a non-profit organisation established in 2006, operates with the goal of supporting Vietnamese businesses in the UK, while connecting and assisting domestic businesses that engage in import-export and capital attraction activities with the UK, as well as British businesses wishing to invest and cooperate with Vietnamese peers.

Currently, the association has a membership of more than 100./.

Binh Dinh trade fair features special seafoods

As many as 55 food business establishments, restaurants, and traditional craft villages are showcasing seafood and “One commune, One product” (OCOP) products at a trade fair in the central province of Binh Dinh, which kicked off on July 11.

The five-day event is part of the 2024 Binh Dinh Essence of Land and Sea Festival, the highlight of which is the demonstration of skills in dissecting a 50 kg, 1.4-meter-long Pacific bluefin tuna by Japanese chef Tatsuhiko Itano. There is also a cocktail mixing performance featuring Bau Da liquor, a specialty from Binh Dinh.

The event offers a chance for visitors to interact with chefs, and personally grill tuna according to their preferences, as well as sample unique cocktails.

According to Vice Director of the provincial Department of Industry and Trade Nguyen Dinh Kha, Binh Dinh tuna products are not only popular and highly consumed domestically but also exported to European countries.

The event is expected to help the locality create a distinctive brand for Binh Dinh tuna, contributing to attracting more tourists, thus bringing about amotivation for the local socio-economic development, he said./.

Reference exchange rate decreases on July 12

The State Bank of Vietnam set the daily reference exchange rate at 24,248 VND/USD on July 12, down 5 VND from the previous day.

With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 25,460 VND/USD and the floor rate 23,035 VND/USD.

At commercial banks, the opening-hour rates saw decreases.

At 8:40 am, Vietcombank listed the rates at 25,210 VND/USD (buying) and 25,460 VND/USD (selling), dowm 5 VND from July 11.

BIDV also cut both rates by 5 VND, listing the buying rate at 25,240 VND/USD and the selling rate at 25,460 VND/USD./.

Vietjet reaches agreement to enhance Vietnam-Laos air transport connectivity

Vietnamese airline Vietjet and the Ministry of Public Works and Transport of Laos on July 11 announced an agreement to boost air transport connectivity between Vietnam and Laos.

The announcement ceremony took place in Vientiane in the witness of Vietnam’s President To Lam, Party General Secretary and President of Laos Thongloun Sisoulith, and high-ranking dignitaries of both countries.

Under the agreement, Vietjet will collaborate with the Department of Civil Aviation of Laos to implement aviation-related projects and further expand air transport activities in Laos, which is expected to create up to 2,500 new jobs in the aviation sector.

The airline also plans to establish its own Maintenance Repair Overhaul (MRO) facilities in Laos with Vietjet Aviation Academy to oversee the training of the new workforce following international aviation standards.

In return, as the airline’s partner, the Department of Civil Aviation of Laos will provide administrative, legal, and facility support, and coordination with other agencies to facilitate the projects’ execution.

Vietjet's commitment to expanding air connectivity in Laos will bring affordable flight options and quality air services to Laotian and international tourists visiting the country.

These initiatives are set to drive socio-economic development, enhance trade, tourism connectivity, and cultural exchange between Laos and the regional neighbours.

The Ministry of Public Works and Transport of Laos appreciated the contributions and capabilities of Vietjet, an international airline with fast-growing flight network. The agreement also aligns with the mutual goals and directions set by the governments of both countries in the Memorandum of Understanding on Strategic Cooperation in Transport between the Governments of Vietnam and Laos for the 2016-2025 period.

In 2023, Vietjet launched a regional state-of-the-art aircraft maintenance centre in the cooperation with Lao Airlines.

Earlier this year, the airline inaugurated its first route between Vietnam and Laos, linking Ho Chi Minh City with Vientiane. The air service has offered more convenient and diversified travel choices to flyers between the two countries and for further connection to Australia, India, the Republic of Korea, Japan, China, Indonesia, Thailand, Singapore, Malaysia, Kazakhstan, and beyond.

Vietnam is currently one of Laos’ largest investors and trading partners, with 255 active investment projects in Laos totaling 5.5 billion USD. The projects focus on the industries of transport, tourism, and science and technology, which promote trade exchanges, sustainable development and shared prosperity of Laos, Vietnam and the region.

Exporters advised to update trade policies of Singapore

The Vietnam Trade Office in Singapore has advised Vietnamese exporters to carefully study and keep updated on new regulations in Singapore, a market that is becoming more cautious in trade policy, in order to further exploit this market.

A representative from the office said that recently, the Singapore Food Agency (SFA) has revised the Qualified Person (QP) declaration form for export consignments of food products, which has been applicable since July 1.

On February 16, Singapore’s Ministry of Finance (MOF) proposed the Multinational Enterprise (Minimum Tax) Bill and subsidiary legislation called the Multinational Enterprise (Minimum Tax) Regulations 2025.

The proposed bill and subsidiary legislation will implement a Qualifying Domestic Minimum Top-up Tax (QDMTT) and the Income Inclusion Rule (IIR) under Pillar Two of the Organisation for Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting (BEPS) 2.0 initiative. The ministry gathered public feedback on the proposed legislation from June 10 to July 5.

Alongside, the office also noted a number of changes in tax policies that Singapore is about to apply on domestic and foreign businesses, and reminded Vietnamese State management agencies and companies to regularly follow up to make suitable policy adjustments.

According to Cao Xuan Thang, Trade Counsellor and head of Vietnam Trade Office in Singapore, in the first five months of 2024, Vietnam’s exports to Singapore rose 26.09% to nearly 3.29 billion SGD (2.44 billion USD).

Strong growth was seen in the export of all the three major groups of products in the Singaporean market, with the group of machinery, equipment, mobile phones, components and spare parts rising 28.87%; the group of reactors, boilers, machine tools and equipment and spare parts of the above machines increasing 38.86%; and glass and glass products 1.74 times.

The Vietnam Association of Seafood Exporters and Producers said that Singapore was among the top five leading markets for Vietnamese tra fish in the first five months of this year.

The Vietnamese Trade Office in Singapore said that it will continue keeping a close eye on policy and mechanism changes in the country and support Vietnamese firms to connect with Singaporean partners and promote their products in the market, while assisting Singaporean firms in exploring trade and investment opportunities in Vietnam./.

Vietnam advertising festival opens in Binh Duong province

The Vietnam Advertising Festival opened in the southern province of Binh Duong on July 11, drawing the participation of more than 600 representatives from the Government agencies, organisations, enterprises and experts in the sector.

The event, held by the Vietnam Advertising Association (VAA), also lured tens of thousands of visitors from China, the Republic of Korea (RoK), India, the United Arab Emirates, Malaysia, Laos and Thailand.

At the opening ceremony, Deputy Minister of Culture, Sports and Tourism Trinh Thi Thuy highlighted the significance of the advertising industry to the country’s economic growth, adding the cultural industry has a vital role in the socio-economic development, with the production value of some 1 quadrillion VND (44 billion USD) during 2018-2022, posting an average expansion of nearly 7.2% per year.

She stressed that festival is an important to concretise the nation’s cultural development strategy by 2030 as approved by the Prime Minster.

Various Memoranda of Understanding was signed between the VAA and its Chinese and Korean peers.

The Vietnam Advertising Exhibition is taking place on July 11-13 within the framework of the festival, with domestic and foreign firms showcasing the state-of-the-art advertising technologies at 250 booths. It creates opportunities for businesses and organisations to seek prestigious suppliers, thus promoting trade ties and develop the Vietnamese advertising industry.

The festival also features a seminar on bolstering the international trade and cultural industry of Binh Duong province, an artistic photo contest called “Vietnam – World Rendezvous”, a job fair, and a charity run./.

Vietnamese businesses in UK strengthen connections

More than 50 members of the Vietnam Business Association in the UK (VBUK) have gathered in London to share their operation experience in the European country.

VBUK President Hoang Viet Phuong said that the event aims to provide participants with a chance to meet, exchange ideas, and get updates on the macro-economic situation and information helpful for their operations, especially amid current challenges facing the British economy.

In the time to come, the association will coordinate with the Vietnamese Trade Office and the Vietnamese Embassy in the UK as well as ministries, sectors, and localities to organise trade and investment events to connect Vietnamese and British businesses, thus providing more chances for them to expand partnership and contribute to the two economies, he said.

Meanwhile, VBUK Vice President Nguyen Li Le said the association has always worked as a bridge between Vietnam and the UK as well as a venue for Vietnamese businesses in the UK. She said that such meetings will be held regularly in every two or three months to foster the solidarity among Vietnamese firms for common development.

Along with business issues, participants also shared their experience in many areas such as electricity and gas efficiency in businesses and other noteworthy issues.

VBUK, a non-profit organisation established in 2006, operates with the goal of supporting Vietnamese businesses in the UK, while connecting and assisting domestic businesses that engage in import-export and capital attraction activities with the UK, as well as British businesses wishing to invest and cooperate with Vietnamese peers.

Currently, the association has a membership of more than 100./.

HCM City accelerates major transport infrastructure projects

Ho Chi Minh City has accelerated a series of key infrastructure projects to put them into operation soon.

Of these projects, the Nguyen Van Linh – Nguyen Huu Tho intersection tunnel is expected to open to traffic in September and be fully completed in December.

Nguyen Van Nen, Secretary of the city’s Party Committee, has conducted an inspection of the Nguyen Van Linh – Nguyen Huu Tho intersection tunnel project to tackle problems to finish the project sooner than planned.

This is one of the key transportation projects that will play an important role in reducing traffic jams in the southern area of the city.

At the construction site, more than 100 officers, engineers, and workers and 42 machines and pieces of equipment have been mobilised to relentlessly carry out the tunnel project.

The engineers and workers are divided into groups to take turns working in three shifts to speed up the construction progress of some items and complete the project soon as per the direction of the city’s Party Committee and the People's Committee.

Luong Minh Phuc, director of the city's Transportation Works Construction Investment Project Management Board, said the tunnel will help ensure traffic flow.

“All groups must make every effort to open the tunnel to traffic as soon as possible,” he said.

Investors, the Traffic Police Department under the city’s Department of Public Security, and relevant units have coordinated to manage issues to reduce traffic congestion, create favorable conditions for construction, and ensure safe and comfortable road trips, he said.

Construction of the tunnel at the intersection of Nguyen Van Linh and Nguyen Huu Tho streets in District 7 with an investment of VNĐ830 billion (US$32.4 million) began in September 2020. So far, about 70 per cent of the work volume has been done.

Bui Xuan Cuong, Vice Chairman of the municipal People's Committee, regularly conducts inspections of the project and urges investors to accelerate the progress.

The southern city aims to complete projects in the southern area soon, creating conditions for social and economic development and reduce traffic congestion at the city’s southern gateway.

In addition, the city has also sped up the construction project of Rach Dia Bridge on Le Van Luong street connecting District 7 and Nha Be district.

The project cost more than 512.7 billion VND (20 million USD), started in June 2023 and is expected to be completed at the end of 2024.

The bridge will shorten travel time between the two districts, and resolve congestion points such as Kenh Te and Phuoc Long bridges, Nguyen Huu Tho - Nguyen Van Linh intersection, and Huynh Tan Phat – Bui Van Ba crossroads.

It will also contribute to connecting the city with Long An province.

At the construction site of Terminal 3 of Tan Son Nhat International Airport in Tan Binh district, thousands of engineers, technicians and workers, and hundreds of machines are now busy completing their work.

The rough frame covering an area of 112,500 sq.m has been completed while other major component items are also going to be finished after nearly a year of construction.

Le Khac Hong, head of the Management Board for the Construction Project of T3 Terminal, said the structural phase of the terminal with four floors and one basement has been completed ahead of schedule by 15 days.

The terminal covers a total floor area of around 112,500 sq.m and has four floors, one basement, 90 counters, 20 automated bag drop counters, 42 check-in kiosks, 27 doorways leading to aircraft, 16 baggage storage units, and 25 airport security gates.

The private VIP terminal facility includes eight airport security gates and a business-class lounge.

The new terminal is designed with a capacity of receiving 20 million passengers per year and 7,000 passengers during peak time.

With a total capital of nearly 11 trillion VND (430.5 million USD), it is expected to be completed by the end of 2024.

Around 97% of the work volume of the multi-story car parking lot on a total floor area of 130,000 sq.m has been done. The building, including two basements and four floors, also offers non-aviation services such as a commercial centre, hotels, and restaurants.

In addition, the construction of a new road connecting Tran Quoc Hoan, Cong Hoa and Phan Thuc Duyen streets in Tan Binh district to ease congestion around the airport will be completed by the end of this year.

The access path was approved for construction with a total cost of more than 4.8 trillion VND (187.7 million USD)./.

Petrol prices decrease slightly in latest adjustment

Retail prices of petrol products were slashed starting 3pm on July 11 by the Ministry of Industry and Trade and the Ministry of Finance.

Accordingly, the price of E5RON92 bio-fuel was cut by 179 VND per litre from the base price to be not higher than 22,282 VND (0.87 USD) per litre, while that of RON95-III fell by 258 VND to 23,297 VND per litre at the maximum.

Meanwhile, diesel 0.05S is capped at 20,834 VND per litre, down 342 VND per litre. The kerosene price is not higher than 21,038 VND per litre, down 178 VND per litre.

Meanwhile, Mazut oil 180CST 3.5S is now sold at no more than 17,784 VND per kg, up 250 VND per kg.

The two ministries also decided not to use the petrol price stabilisation fund this time./.

PM urges thorough study for North-South high-speed railway project

Prime Minister Pham Minh Chinh on July 11 requested relevant ministries and agencies to consult experts and scientists, and learn from international experiences to quickly complete the building of the North-South high-speed railway project.

Chairing a meeting between standing Government members and leaders of ministries and sectors to discuss the investment policy for the project, PM Chinh noted that Vietnam is recognised for its significant potential in logistics development; however, logistics costs remain higher than the global average due to an underdeveloped transportation system. Therefore, the development of transportation infrastructure, including the North-South high-speed railway, will reduce logistics costs, lower prices, and enhance the competitiveness of goods

He stressed the need for innovative and strategic approaches, aiming to complete 1,541km of the railway across 20 provinces and cities within 10 years, targeting 2035 for completion, adding that the project should prioritise the most efficient and shortest routes, designed to operate at a speed of 350km/h.

The construction of the high-speed railway must ensure coherence and connectivity, and utilise and promote the efficiency of the existing transportation systems and means, Chinh said.

Noting that the estimated 67 billion USD investment is huge, the Government leader requested a thorough study of the total investment to ensure appropriateness, with similar projects abroad and Vietnam's unique terrain taken into consideration. He added that funding should be diversified through various sources, including central and local funds, loans, bonds, and corporate funds.

The leader also highlighted the necessity of a modern, digitalised management plan, workforce training, technology transfer, and the development of a railway industry ecosystem./.

This year's credit growth target achievable: experts

As of June 30, credit expanded 6% compared to the end of 2023 while total outstanding loans approximated 14.4 quadrillion VND (563.3 billion USD), a positive signal showing this year's credit growth target of 14 - 15% is within reach, experts said.

Banks have rolled out various measures to save costs, stabilise interest rates and launch preferential loan packages to pump capital into the economy and fuel credit growth in the second half of 2024.

Deposit interest rates have tended to increase in recent months, by 0.4 - 1.6% per year depending on the terms.

Experts point to the mounting inflationary pressure and fierce competition from other investment channels such as gold and securities, which have prompted banks to raise deposit interest rates.

Assoc. Prof. Dr. Dinh Trong Thinh, an economic expert, said although deposit rates have inched up, lending rates need to be kept stable and at low levels to aid businesses' recovery.

In fact, banks have been making efforts to keep lending rates low as directed by the Government and the State Bank of Vietnam (SBV).

Recently, the Lien Viet Post Joint Stock Commercial Bank (LPBank) has launched a credit package worth 4 trillion VND to help businesses access a good financial source and maximise their profit. Interest rates under this package stand at 6.5% and over per annum for medium-sized enterprises, and at 6.8% and over per annum for small and medium-sized ones.

The Saigon - Hanoi Commercial Joint Stock Bank (SHB) is also offering a loan package to meet customers’ housing needs with an interest rate of 5.79% per year at the minimum.

Nguyen Thanh Tung, General Director of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), said that it will continue to implement cost reduction measures and enhance technology application to its governance and operations.

Vietcombank and other state-run commercial banks will take the lead in considering more lending rate cuts despite the pressure from rising deposit rates, he noted.

Cutting lending rates has been one of the top priorities of the banking sector recently. The SBV has reported a significant interest rate reduction of 3.4% since the beginning of 2023.

MBS Research, a research centre under the MB Securities Joint Stock Company (MBS), forecast that credit growth will hit 14% in 2024, given an expected GDP growth rate of 6.3 - 6.5% for the year. Drivers for the growth include the recovering consumer finance market, increased credit card usage, robust import - export activities, and high demand for auto loans.

Low lending rates, signs of a reviving real estate market, along with a surge in inventory and land-related tax revenue will also stimulate loan demand in the near future, according to MBS Research.

Echoing the view, the Maybank Vietnam Securities Company (MSVN) held that credit growth since the year's beginning is reasonable and good enough, predicting that credit will accelerate in the third quarter thanks to the real estate market's recovery.

Le Ngoc Lam, General Director of the Bank for Investment and Development of Vietnam (BIDV), blamed the economy's weak capital absorption on the fact that many businesses were dissolved and businesses’ health declined. However, he expected that credit will grow strongly in year-end months, when businesses get back on track.

Meanwhile, Pham Chi Quang, Director of the SBV's Monetary Policy Department, held that bringing down lending interest rates is a big challenge to the banking system.

To support credit growth, the SBV will continue working to keep interest rates stable and encourage credit institutions to decrease costs and publicise average lending interest rates. It has also issued a circular which allows credit institutions to extend the restructuring of debt repayment deadlines and maintain debt groups for certain sectors until the end of 2024, he added./.

Gap between science and agriculture needs to be bridged

It is necessary to connect supply and demand for science and technology products and to find opportunities for cooperation between scientists and businesses operating in Vietnam's agriculture sector, a conference in Hanoi on July 10.

Minister of Agriculture and Rural Development Le Minh Hoan said in recent times, scientists have focused on researching and developing many useful scientific and technological products in the field of agriculture, but businesses and cooperatives that need these products have failed to access them due to a lack of information.

Cooperation between scientists and businesses is needed, Hoan said, adding that it will allow relevant parties to add ideas and content to scientific research, ensuring the feasibility and market accessibility of products. Closer coordination will also ensure that scientific research is suitable for practical conditions at reasonable costs, he said.

Minister Hoan also urged for a stronger order-driven mechanism between research and production, and between businesses and scientists in Vietnam's agriculture sector. At the same time, he emphasised that for businesses to place orders, scientists need to have samples to showcase their products.

Nguyen Cong Tiep, Deputy Director of the Vietnam National University of Agriculture (VNUA) said his university strives to conduct scientific research that meets practical needs. VNUA is currently cooperating with about 200 domestic and foreign enterprises.

He called on businesses and cooperatives to place orders so that his university could speed up research, transfer, and application to improve the value of agricultural products.

Meanwhile, Nguyen Hong Son, Director of the Vietnam Academy of Agricultural Sciences (VAAS) said that the market is the facilitator of scientists in the agriculture sector. Currently, the demand for production development and value increase from businesses is very high. Therefore, orders from businesses are the motivation for scientists to get started right from the research stage, Son said.

He added that a large number of businesses are very interested in investing in science-technology research and application in production. Many of them have allocated their funds to research and development or received the transfer of scientific and technical advances so that they can improve plant variety.

Tran Kim Lien, Chairwoman of the Board of Directors of the Vietnam National Seed Corp (Vinaseed) said since 2006, the company has cooperated with public research institutes to commercialise agricultural research results, accounting for nearly 50% of the corporation’s revenue structure.

The important point is understanding the market’s demands and investing correspondingly to create plant varieties that can meet consumers’ needs. Liên said she believed that for a successful connection between researchers and businesses, it is necessary to forecast changes in consumer trends and direct scientific research accordingly.

At the same time, the State needs to have policies to promote a more effective mechanism of public-private partnership in scientific research with longer-term programmes so that businesses can participate and attract investment capital.

For instance, the MARD should introduce regulations on intellectual property protection so that businesses can feel secure in investing in research or receiving technology transfer in the agriculture field.

Lien also suggested the MARD select ideas from institutes and schools. Based on science and technology, the ministry could determine specific investment portfolios. Thereby creating conditions for small and medium enterprises to participate in the value chain.

For his part, Tran Trung Duc, Chairman of the Viba banana cooperative in Hoa Binh province, said bringing a product to market is a long process and requires constant back-and-forth communication with scientists.

When consumers change their requirements, businesses must respond and scientists can be companions, according to Duc.

The conference also saw eight agreements for the transfer of scientific products inked among research institutes and businesses./.

Malaysia to boost exports to Vietnam

The Malaysian Ministry of Investment, Trade and Industry (MITI) on July 11 announced that the country has secured potential exports worth 3.3 billion RM (about 717 million USD) to Vietnam.

The announcement was made following a visit to Vietnam from July 8 to 10 by MITI Minister Utama Zafrul Tengku Abdul.

MITI said 14 Vietnamese companies have committed to sourcing Malaysian products, including electrical and electronics, palm oil, chemicals and petrochemicals, iron and steel, food and beverages, as well as fast-moving consumer goods. The commitments were made at roundtables between Vietnamese corporations and the Malaysian minister in Ho Chi Minh City and Hanoi.

Minister Zafrul said that Malaysia is pleased with the 3.3 billion RM potential exports from its brief mission to Vietnam, adding MITI will follow up on the realisation of these commitments to support the gross domestic product growth and create job opportunities for people.

He emphasised that the visit’s results reflect the growing momentum in economic ties between the two countries, highlighting mutually beneficial opportunities for their business communities.

According to a statement that MITI released on July 11, during his Vietnam visit, Tengku Zafrul had meetings with Vietnamese Prime Minister Pham Minh Chinh, Minister of Planning and Investment Nguyen Chi Dung, and Minister of Industry and Trade Nguyen Hong Dien. Tengku Zafrul and Dien also co-chaired the fourth meeting of the Malaysia-Vietnam Joint Trade Committee in Hanoi on July 9.

Last year, Vietnam was Malaysia’s 11th largest trading partner while Malaysia was Vietnam’s 10th largest globally, with a total trade volume of 17.38 billion USD.

Vietnam is also an important investment destination for Malaysia, especially in real estate, utilities, financial services and manufacturing. As of 2023, Malaysia registered 717 projects in Vietnam with total investment of 13.1 billion USD./.

Korean SMEs supported to export products to Vietnam

The Ministry of Small- and Medium-sized Enterprises and Startups (MSS) of the Republic of Korea on July 10 signed a tripartite memorandum of understanding with Lotte Mart and Lotte Global Logistics to support Korean SMEs to export products to Vietnam.

Accordingly, qualified products of Korean SMEs will be supported to be sold at Lotte Mart Vietnam while Lotte Global Logistics will transport the products with its lowest international shipping rates.

Under the MoU, the three sides agreed to establish a cooperation system and support the export of high-quality products of Korean SMEs.

The MSS planned to organise a promotional even called “Companion Festival” in September to stimulate the consumption of excellent Korean products in Vietnam with the support of Lotte Mart and Lotte Global Logistics.

Meanwhile, SMEs will receive consultations from logistics experts to establish logistics strategies that are cost-effective and suited to the products’ characteristics. If needed, logistics services such as storage, management and delivery of products will be provided through overseas warehouses owned by Lotte Global Logistics./.

Construction sector enjoys highest six-month growth in four years

The construction sector recorded a 7.34% expansion in the first six months of 2024, the highest in the first half of a year in the 2020-2024 period, head of the Ministry of Construction (MoC)’s Office Dau Minh Thanh said at a conference held by the ministry on July 11.

Thanh said that in the period, the real estate sector grew 2.45%, while the country’s urbanisation rate rose by over 43.1%.

The official noted that a surge was seen in searches for real estate information by house-seekers and investors, while the transaction volume for apartments, houses and land plots tended to increase.

Meanwhile, real property supplies have shown recovery signs with the re-launch of many projects.

The downturn in bank interest rates have also prompted investors to offer incentives for customers, thus improving their confidence as well as market liquidity, according to the official.

He said that in the first half of this year, the MoC took many specific measures to boost social housing development.

Since 2021, 503 social housing projects have been started throughout the country with 418,200 units. Among them, 75 projects have been completed, offering 39,884 houses. Meanwhile, this year's overall target set by the Government is for 130,000 social houses to be completed nationwide.

To fulfil the target, the MoC has been urging localities to implement the project “Building at least one million social houses for low-income earners and industrial zone workers in the period 2021-30”.

Regarding the disbursement of the 120-trillion-VND (4.72 billion USD) credit package for the real estate sector, Thanh said that currently, along with the four State-owned commercial banks namely BIDV, Vietinbank, Agribank, and Vietcombank, two other banks – Tpbank and VPBank, have registered to join the programme with 5 trillion VND each. To date, the banks have disbursed over 1.23 trillion VND, he noted.

The MoC has submitted to the Government and the Prime Minister five decrees and one decision detailing the implementation of the 2023 Housing Law and 2023 Law on Real Estate Business. It plans to finalise the drafting of a circular detailing a number of articles of the Housing Law, and another guiding the realisation of the framework training programme for real estate brokers and real estate trading floor operators, the official said./.

HCM City to host Vietnam – RoK expo

The Multi-Trend Expo & Global Business People’s HUB (Mega Us Expo) 2024, a Vietnam and the Republic of Korea (RoK) multi-sector exhibition, is scheduled from August 22-24 in Ho Chi Minh City with 200 pavilions of Korean partners, more than 30 centres, startups, universities together with associations, startups in Vietnam.

Participants will have a chance to connect with more than 200 Korean enterprises, startups while experiencing and shopping with more than 600 Korean advanced products, technologies, and services at the event. They can also directly meet and boost linkages with Korean manufacturers, call for investment from many countries, as well as connecting with agencies, organisations, universities, and trade associations from Vietnam and the RoK.

The expo will intensify trade and investment connections in many fields from food, cosmetics to technology, and is expected to attract 5,000 visitors and create 1,500 business-to-business matchings.

It is also a bridge to connect business cooperation between Vietnamese and Korean enterprises while promoting the startup spirit among youngsters through startup or fund calling competitions.

Mega Us Expo is one of the activities in the Memorandum of Understanding on cooperation to support innovative startups, promote market expansion for Korean and Vietnamese enterprises between the Jeonbuk Creative Economy Innovation Centre and the Department of Science and Technology of Ho Chi Minh City.

The collaboration aims to support startups of the two sides, assist enterprises in Ho Chi Minh in particular and Vietnam in general to seek and apply technology from the RoK for production, while forming a joint cooperation programme in project incubation activities and start-ups./.

Da Nang businesses strengthen trade connectivity in RoK

A trade exchange programme was held on July 11 in the Republic of Korea (RoK) to enhance connectivity between Da Nang businesses and Korean firms in Deagu City, according to the Department of Industry and Trade of Da Nang City.

In his speech, Nguyen Huu Hanh, deputy director of the Department of Industry and Trade of Da Nang City, emphasized that the scheme is aimed at supporting the central city's enterprises as they introduce their products and seek opportunities for greater trade and investment ties with partners in the RoK. The activity has also contributed to  strengthening trade linkages and friendly relations between the two cities.

For his part, Jong-Geun Yun, chairman of the Korea-Vietnam Economic Cooperation Association, expressed his hope that the event will create further opportunities for Vietnamese businesses to introduce their products and ramp up ties with RoK firms, adding that there is plenty of room ahead for Vietnamese products within the Korean market.

At the event, NR Biotech of the RoK signed a Memorandum of Understanding (MoU) with Vina Ginseng Co., Ltd. of Da Nang.

In addition, Health One Two Company of the RoK also inked a MoU with Central Vietnam Production, Trade and Service Co., Ltd.

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