According to fibre2fashion.com, Vietnam has become the world’s leading textiles and garments exporter.

Textile and garment exports play an important role in the country’s economy, accounting for about 12.52% of export turnover. This shows the importance and influence of this industry on Vietnam’s trade.

Over the recent decades, Vietnam has recorded high growth in the industry and become a major supplier of garments.

Despite difficult and challenging situation, Vietnam is expected to achieve high economic growth in terms of capital expenditure thanks to a strong increase in foreign direct investment (FDI) and investment in infrastructure.
  
The Vietnamese government has identified the need to invest in domestic infrastructure. Investment in power infrastructure demonstrates Vietnam’s commitment to common infrastructure development.

The textile industry, including synthetic textiles, plays an important role in Vietnam’s exports. Vietnam has also made efforts to improve the business environment and promote sustainable practices in the textile and garment industry. With its continued economic development, Vietnam continues to attract investors and strengthen its presence in global trade.

Vietnam has been making efforts to promote sustainable activities in the textile and garment industry. The government has initiated plans to improve environmental standards, energy efficiency and waste management.

Sustainable materials are increasingly being developed such as organic cotton and recycled fibers to reduce environmental impact.

Customers, especially those representing major brands and international brand chains, are restructuring global supply chains to meet stringent sustainability goals with regard to environmental performance.

Fiber2fashion.com said that Vietnam has really become one of the leading textile and garment suppliers in the world.

Vietnam’s success in this industry can be attributed to many factors such as natural resources as the country has a suitable climatic conditions for growing cotton and natural fibers, an open economy which has implemented economic reforms and actively participated in international trade, low labor costs which helps to attract FDI, and stable cross-border trade with stable cross-border trade through many agreements.

These factors, together with investment in infrastructure, skills development and production capacity, have spurred the development of Vietnam’s textile and garment industry.

Vietnam has attracted major international brands and retailers and has become an important source of supply.

PM orders prioritising capital for production, trade to propel growth

Prime Minister Pham Minh Chinh on July 15 ordered prioritising capital for production and trade to fuel growth in tandem with stabilising macro-economy, controlling inflation and Government and public debts while ensuring major balances of the economy.

Speaking at a teleconference to review the activities of the State Bank of Vietnam (SBV) in the first half and launch its tasks for the remainder of this year, PM Chinh asked the central bank to pursue active, flexible and effective monetary policy while accelerating decentralisation and administrative reform.

Capital should be geared toward priority areas and growth driving forces, while loan interest rates must be cut to facilitate citizens and businesses’ access to credit, he said.

The PM ordered that the forex rates must be managed actively and flexible, with the global and domestic situations taken into consideration. Drastic and effective efforts must be exerted to carry out a scheme on restructuring credit institutions and dealing with bad debts for the 2021-2025 period.

As the size of the domestic corporate bond market remains modest compared to those of other countries and the set target, he ordered the raising of capital through bond issuance to support economic recovery.

The leader called on the business community, together with the SBV and banking sector, to further strive to save costs, renovate corporate governance, step up digital transformation, and propel green growth and circular economy.

Ministries, agencies and localities were also urged to work closely with the bank and credit institutions to tackle difficulties in production and trade, especially via fine-tuning policies and mechanisms and reforming administrative procedures.

Refrigerated container train linking Binh Duong to China inaugurated

A refrigerated container train was inaugurated at Song Than station in Binh Duong on July 14, in a bid to transport fresh fruits and vegetables from the southern province to Dong Dang station in the northern border province of Lang Son for transshipment to China.

Capable of transporting up to 900 tonnes of goods, the train consists of between 20 and 21 MC cars carrying 40-foot refrigerated containers used to preserve fresh fruits, farm produce, and seafood.

Its travel from Song Than to Dong Dang is expected to take 72 hours. After the completion of the railway upgrade, the travel time will be further shortened to better compete with other means of transport.

According to experts, the train meets the demand for transporting agricultural and frozen goods from southern provinces to the northern region.

Song Than is located in Di An city, adjacent to National Highway 1A, and borders Ho Chi Minh City. With its intermodal code, the station aims to become a key freight transport centre in the south. Its total annual intermodal transportation capacity hits 1.27 million tonnes and is projected to reach 2.5 million tonnes by 2025.

HCM City’s public spending tardy in first half despite great efforts

Ho Chi Minh City's public spending in the first half of 2023 reached 15.43 trillion VND (652 million USD), accounting for only 23% of the budgeted amount despite the many measures it took to remove hurdles.

District authorities and government agencies have been making great efforts to achieve the spending target after an unsatisfactory performance last year and in the first few months of this year.

Besides unavoidable factors like escalating prices of construction materials, which affect contractors’ work, the city has also discovered that agencies overseeing public spending register for low amounts of funds to avoid the stigma of failure to spend.

To ensure that spending this year reaches at least 95% as required by the Government, the City People's Committee has instructed all related agencies and districts to accelerate disbursement.

It has also instructed the districts to review projects that face problems and propose solutions. If resolving them is beyond their authority, they should promptly report them to the city administration, it added.

The Department of Planning and Investment has been ordered to immediately review all projects and make plans to replace those that cannot be implemented.

For the full year the city’s public spending allocation is 70 trillion VND (3 billion USD), double last year’s figure.

PV Drilling to open four offices in ASEAN to support rig operations

Petrovietnam Drilling and Drilling Services Joint Stock Corporation (PV Drilling) has decided to establish four operating offices in ASEAN countries as part of its efforts to expand its presence in the region.

In its filing to the State Securities Commission (SSC) and Ho Chi Minh Stock Exchange (HOSE) this week, the company said it would establish offices in Malaysia, Thailand, Brunei and Indonesia to support its rig operations in these nations. 

The firm is currently engaged in drilling programmes for oil and gas contractors in these countries. Notably, it has secured a significant contract with Brunei Shell Petroleum Company Sdn Bhd (BSP) for a period of six years, with the possibility of two two-year extensions thereafter.

The stable job opportunities for PV Drilling's rigs in foreign markets also present prospects for the growth and development of its technical service units. In the future, PV Drilling and its affiliated units aim to strengthen their involvement in providing various technical services in the markets where PV Drilling operates rigs. These services may include personnel training, drilling manpower provision, drilling equipment leasing, and more.

According to PV Drilling's General Director Nguyen Xuan Cuong, after six months, the company has achieved its production and business plan set for the whole year. With the positive indicators of increasing demand, PV Drilling anticipates doubling its profit, reaching 200 billion VND (8.4 million USD), surpassing the initial set target.

Da Nang hosts meeting of International Federation of Freight Forwarders Associations

The Asia-Pacific Regional Annual Meeting of the Federation of International Freight Forwarders Associations (FIATA RAP) opened in the central city of Da Nang on July 14.

The event attracted the participation of 300 domestic and international logistic enterprises.

Addressing the meeting, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said the event would contribute to promoting investment and trade cooperation as well as knowledge sharing for logistic services and freight forwarding in Asia-Pacific in particular and in the international market in general.

Vietnam will accompany domestic and international partners and facilitate economic, investment, trade, and service cooperation activities, he said, adding that attention will be paid to those serving logistics development to bring more benefits to the parties.

Le Duy Hiep, Chairman of the Vietnam Logistics Business Association (VLA), the meeting brought together leading freight forwarders from Asia to discuss challenges, new trends as well as requirements for sustainable development in the region.

A lot of activities will be held within the framework of the event to connect domestic and foreign businesses such as a dialogue between more than 100 enterprises and the signing of cooperative agreements between Vietnamese companies and members of logistic associations in the region and the world.

It provided opportunities for Vietnamese logistics companies to grasp the latest trends of development and enhance their competitiveness.

Yukki Nugrahawan Hanafi, FIATA RAP Chairman, said with a favourable geographical position and the government's interest in the logistics industry, Vietnam plays a very important role in the logistics field of the region and the world. The hosting of the event is expected to contribute to promoting connection between Vietnam and international logistics associations and businesses in the coming time, he added.

According to the World Bank’s report released in 2023, Vietnam placed 43rd out of 160 examined countries and territories in the logistics performance index. It was also among the top five Association of Southeast Asian Nations (ASEAN) countries with a growth rate ranging from 14-16%.

Workshop talks cooperation between Da Nang, Japan

Potential for cooperation between the central city of Da Nang and Japan was the main focus of a workshop held by the municipal People’s Committee on July 14.  

In his opening remarks, Vice Chairman of the People’s Committee Ho Ky Minh said in the first half of this year, Da Nang’s gross regional domestic product (GRDP) grew about 3.74% year-on-year.

Da Nang ranked third among the five centrally-run cities, and 46th among the 63 cities and provinces nationwide in terms of growth, he added.

The official said Da Nang has established friendship and official cooperative ties with the Japanese cities of Kawasaki, Sakai, Yokohama and Kisarazu, while maintaining cooperation with 15 other cities and prefectures.

Notably, Japan is taking the lead in registered investment capital in Da Nang, with more than 1 billion USD injected into 222 projects, accounting for 23.5% of the total FDI projects and 26% of the accumulative foreign investment capital in the city.

The projects mainly focus on component manufacturing, processing, IT, education, health care, services and tourism, generating jobs for more than 40,000 labourers, he said.

Trade between the two sides reached 730 million USD last year, significantly contributing to the trade ties between Vietnam and Japan, the official continued, pledging that Da Nang will create optimal conditions for Japanese experts and businesses to work and invest in the city.

For his part, Japanese Consul General in Da Nang Yakabe Yoshinori stressed that Japanese firms are interested in the city, saying he hopes that following the workshop, Japanese investment in the locality will be further facilitated.

Vietnam eyes sustainable development for coconut industry

Coconut industry is playing a very important role in the socio-economic development of Vietnam and should be considered an indispensable part of the country's development strategies. However, there remain shortcomings in the industry, according to Nguyen Quang Dung, Director of the Institute of Agricultural Planning and Projection (NIAPP).

They include a loose linkage in the value chain and low processing capacity, he went on.

Dung pointed out that an imbalance in the supply of material for processing and capital shortage for upgrading technolgy is the biggest limitation. Thus, it is necessary to devise a project on turning coconuts into Vietnam’s main industrial crops by 2030.

Vietnam has more than 188,000 hectares under coconut, accounting for 1.67% of that of the world, according to the Institute of Agricultural Planning and Economics.

Coconut trees are a source of income for about 389,530 farmer households and export value of coconut and coconut products has reached over 900 million USD. Vietnam is in the fourth place in the world in terms of cococut value.

Currently, there are about 854 enterprises that specialise in producing and processing coconut products, along with over 90 companies exporting coconut products. They create jobs for more than 15,000 employees.

Huynh Quang Duc, Deputy Director of the Department of Agriculture and Rural Development of Ben Tre province, which has the largest coconut area in the country, said that coconut trees play an important role in the socio-economic life of the province. More than 70% of its population relies on coconut growing for their livelihood and the province has more than 163,000 households engaged in coconut farming.

The production value of coconut products accounts for 20.69% of the province’s total industrial production value; making up 42.51% of its total export turnover and creating jobs for tens of thousands of workers.

Ben Tre now has 78,000ha under coconut cultivation.  Its coconut products have present in nearly 100 countries and territories and access choosy markets such as Europe, US and the Midde East.

In recent years, the province has issued many resolutions and plans to create favourable conditions for the coconut industry to develop in a stable, sustainable and effective manner.

Particularly, the 11th tenure of the provincial Party Committee has issued Resolution No. 07 on building concentrated production areas associated with developing the value chain of key product groups, thereby enhancing the development of the coconut industry as well as the position and image of Ben Tre coconut trees at home and abroad.

Market diversification crucial for rice sector: Experts

Although Vietnamese rice has been exported to 150 countries and territories, markets for the product are mainly Asian countries and thus need to be diversified, according to experts.

Currently, the Asian region has been the largest market of Vietnamese rice, consuming over 60% of the country's total exported volume. It is followed by Africa with 22%, America 8%, Europe 5%, and other regions 5%.

In the first six months of this year, Vietnam exported 4.27 million tonnes of rice for 2.3 billion USD, up 22.2% in volume and 34.7% in value over the same period last year. Those are the highest growth rates of the rice sector in the recent 10 years.

This year, rice export volume is forecast to stand at a similar volume as last year when 7.35 million tonnes of rice was shipped abroad.

In a recent report, the US Department of Agriculture also predicted that Vietnam's rice export will exceed 7 million tonnes this year, mostly due to rising demands in Asian markets.

 In the first six months of this year, Vietnam exports 4.27 million tonnes of rice for 2.3 billion USD. (Photo: VNA)
In this scenario, Vietnam will rank third in the world in rice exports after India and Thailand.

Deputy Director of the Department of Asian-African Markets under the Ministry of Industry and Trade (MoIT) To Ngoc Son said that high demands from traditional markets such as the Philippines, China, Indonesia and African countries are creating opportunities for Vietnam to increase exports.

Particularly, Indonesia and Africa have announced plans to import a large amount of rice this year to ensure national food reserves.

Indonesia said it needs 2.4 million tonnes, while Africa plans to import about 17.7 million tonnes.

The MoIT underlined that from now to the end of this year, Vietnam should continue to seek new rice markets, while optimising traditional markets of China and the Philippines.

Vu Ba Phu, Director of the Trade Promotion Agency said that the agency will continue to connect domestic firms and their foreign importers through various forms, while making full use of free trade agreements, and foster connections between domestic exporters and Vietnam Trade Offices abroad.

He said that the MoIT is building a project to build and promote the trademark of Vietnamese rice. He advised local firms to strengthen their linkage and cooperation with farmers to form a closed production chain.

In order to support businesses in expanding markets, the MoIT has coordinated with the Ministry of Agriculture and Rural Development to strengthen trade promotion in new markets such as Africa, the Middle-East, Western and Southern Asian countries, and Turkey.

Although the rice demands in these markets are not higher than traditional ones, they are promising markets for high-quality rice types, which can help Vietnam increase rice export value, according to the MoIT.

Vietjet launches direct flights between HCM City and Tokyo’s Haneda airport

Vietjet has officially launched the direct flight from Ho Chi Minh City to Haneda Airport in Tokyo, meeting the demands of people and tourists.

From July 15, with seven return flights every week, passengers can easily travel between Ho Chi Minh City and Haneda Airport - the largest airport in Japan and one of the top in Asia. The airport is located less than 30 minutes from central Tokyo and is one of the largest transit points from Asia to western countries through an extensive domestic and international flight network.

Flights from HCM City to Tokyo (Haneda) depart at 17:00 and arrive at 1:00 the next day (local time). Flights from Tokyo (Haneda) to HCM City depart at 12:00 and arrive at 16:10 (local time).

From now until December 31, passengers have an opportunity to hunt tickets to fly to Tokyo and other Vietjet international routes on Wednesdays, Thursdays and Fridays. The tickets, going for zero Vietnamese dong, can be found at www.vietjetair.com and the Vietjet Air mobile app, with flexible flight schedules from August 10, 2023, to March 31, 2024.

Passengers also can accumulate bonus SkyPoints on each flight to redeem vouchers for Vietjet and services from 250 favourite brands of dining, resort, and shopping in Vietnam via SkyJoy mobile app or  https://skyjoy.vietjetair.com/

HCM City - Tokyo (Haneda) is Vietjet's second route, after HCM City - Tokyo (Narita), connecting HCM City.

Vietjet is a fully-fledged member of the International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam’s largest private carrier, the airline has been awarded the highest ranking for safety with 7 stars by the world’s only safety and product rating website airlineratings.com and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in many consecutive years. The airline has also been named as Best Low-Cost Carrier by renowned organisations such as Skytrax, CAPA, Airline Ratings, and many others.

Ziehl-Abegg expands footprint with new production facility in Vietnam

Ziehl-Abegg, a manufacturer of electric motors, air conditioning equipment, and fans that is headquartered in Germany, has just unveiled its strategic plans to establish a new production facility in Vietnam, a move aimed at expanding its global footprint.      

The inauguration ceremony for the newly formed subsidiary, Ziehl-Abegg Vietnam, took place  in Ho Chi Minh City. Currently, construction of an advanced facility close to the city is underway.

To address the persistent surge in customer demand, construction work has already commenced, with production at the facility slated to commence in the first half of 2024. Full-scale production is anticipated to be achieved by the end of the same year.

Encompassing a sprawling expanse of 14,000 square meters, the production site will allocate 12,900sq.m for manufacturing purposes and 1,100sq.m for administrative functions.

This expansion initiative builds on prior investments to enhance the company's production capacities in Poland and the United States, along with ongoing investments in Germany.

Joachim Ley, Ziehl-Abegg's Production director, underscored the paramount importance of expanding production worldwide in order to meet customers' escalating demands.

Ley emphasised, "The new facility in Vietnam holds particular significance for the Asian and Australian markets, allowing us to continually provide our customers with optimal solutions."

The establishment of Ziehl-Abegg Vietnam represents another pivotal stride in the company's overarching global expansion strategy. With the establishment of a production facility in Vietnam, Ziehl-Abegg aims to bolster its market presence in the Asian and Australian regions, effectively enhancing its ability to serve customers in these areas.

Furthermore, Ziehl-Abegg disclosed the appointment of Alexander Reich as the managing director of Ziehl-Abegg Vietnam. Working alongside COO Joachim Ley, Reich will assume a crucial role in spearheading the success of the new facility.

Ziehl-Abegg, headquartered in Künzelsau, Germany, is a globally renowned industry player in the field of ventilation, control, and drive technology. With a storied history dating back to the 1950s, when it pioneered the development of external rotor motors, the company continues to specialise in electric motors that power a diverse array of applications, ranging from elevators to medical equipment – such as computer tomography devices – and deep-sea underwater vehicles.

Boasting an illustrious track record of innovation, Ziehl-Abegg employs 2,800 skilled employees in its production plants in southern Germany, and its global workforce numbers 5,100, spread across 15 production facilities, 30 subsidiary companies, and 117 sales locations around the world.

With a product portfolio exceeding 30,000 items, the company's offerings are distributed across more than 100 countries. Ziehl-Abegg generates an annual turnover of $981.5 million.

Founded by Emil Ziehl in Berlin in 1910 as an electric motor manufacturer, the company relocated its headquarters to southern Germany in the aftermath of World War II. Ziehl-Abegg SE remains a family-owned enterprise and is not publicly traded.

Interest rates decline but remain high

After four consecutive policy interest rate cuts by the central bank, the average annual rates on deposits and loans on the market have decreased by one percentage point against late last year.

Speaking at a State Bank of Vietnam (SBV) conference this morning, July 15, on the January-June performance of the banking sector and solutions for the second half of this year, SBV deputy governor Dao Minh Tu, said borrowing and lending rates have been declining.

Commercial banks have reduced lending rates by 0.5-3 percentage points for new loans, Tu told the conference, which was also attended by Prime Minister Pham Minh Chinh.

As of June 30, total outstanding loans in the banking system had reached over VND12,490 trillion, up 4.73% versus the end of 2022.

As interest rates are still high, PM Chinh requested the banking sector to reduce costs to make it possible to further lower interest rates, especially for loans.

Given low credit growth and difficult access to loans, PM Chinh asked the banking system to ease lending conditions to inject capital into production and business, especially small and medium-sized ones.

The PM also urged the banking sector to expedite the implementation of the VND120 trillion credit package for social housing and the VND40 trillion interest subsidy package.

HCM City set to host annual international travel expo

The annual International Travel Expo HCM City will be held from September 7 to 9 at the Saigon Exhibition and Convention Center.

The largest travel event in the Mekong sub-region, ITE HCMC, titled “Connectivity, Growth, Sustainability”, will be double its size last year and has attracted more than 400 exhibitors.

It will be held in a hybrid format, combining physical booths and online booths. The latter will inform international buyers about products, services and a pre-appointment booking system to connect with sellers.

National tourism organizations from Cambodia, Chile, Laos, Malaysia, Myanmar, Japan, the Philippines, and Thailand and local ones from St. Petersburg (Russia), Seoul (South Korea) and more than 40 Vietnamese provinces and cities will participate.

A hosted buyer programme with 200 buyers from 20 countries and territories will provide the opportunity for international tourism businesses to grow their markets and broaden tourism partner networks in Việt Nam and the Lower Mekong region.

The programme is expected to welcome decision makers from travel agencies and MICE and luxury travel companies from key and promising markets such as China, South Korea, Japan, Chinese Taipei, the United Kingdom, Germany, France, Italy, Spain, the United States, Canada, Thailand, Singapore, Philippines, Indonesia, Malaysia, Cambodia, Australia, India, Qatar, the UAE, and Kuwait.

A high-level tourism forum on “Digital Transformation Driving Tourism Development” and an ASEAN public relations and communications forum on “Destination marketing and sustainable communications” will be held as part of the expo.

On June 24 the National Assembly approved the extension of tourist e-visas from 30 to 90 days. Citizens of certain countries for whom Việt Nam waives visas can now stay for 45 days instead of the earlier 15.

The policy is expected to enhance the competitiveness of Việt Nam’s tourism industry and attract international visitors.

Promotion and marketing are essential to develop tourism and enhance a destination’s competitiveness, according to the city's tourism authority, one of the expo's organisers.

The HCM City received more than 1.9 million foreign visitors in the first half of the year, up 300 per cent year-on-year. Revenues from tourism in the period were worth an estimated VNĐ80.8 trillion (about US$3.38 billion). 

Honda Việt Nam implements carbon-neutral solutions, launching hybrid cars

Honda Việt Nam said that the carbon neutrality goal of this joint venture by 2030 is to reduce CO2 by 46 per cent compared to 2019 and to be carbon neutral by 2050.

In order to realise the goal, Motofumi Marutani, deputy general director of Honda Việt Nam, said that it is expected to reduce CO2 by 16 per cent compared to 2019 by the end of 2024 fiscal year from April this year to March next year.

In motorcycle production, Honda Việt Nam will develop technologies to improve internal combustion engines such as improving the combustion chamber and powertrain, friction reduction system; research, promote the use of biofuels and consider future electric motorcycle products for the Vietnamese market.

At the same time, it will introduce eco-friendly car models to Vietnamese customers. Notably, initially, Honda Việt Nam will launch a series of hybrid electric vehicles (HEVs), starting this year.

Funds record positive performance in the first half

Open-ended funds recorded positive performance in the first half of this year with most enjoying profits.

VinaCapital Fund Management Joint Stock Company has announced that open-ended funds managed by the company recorded very good performance in the first six months of 2023, as well as the last three years.

As of June 30, 2023, the average annualised return of the VINACAPITAL-VESAF Investment Fund in the last three years reached 28.9 per cent per year; followed by VINACAPITAL-VEOF Fund with average annualised return of 22.1 per cent per year. With these performances, they were the two best-performing open-ended equity funds in the market in the period.

Meanwhile, VinaCapital's VINACAPITAL-VIBF fund recorded an average return in the last three years of 15.4 per cent. VINACAPITAL-VFF Fund achieved a return of 7.6 per cent per year in the period.

VinaCapital believes that the outstanding long-term investment performance of open-ended funds was due to its investment in high-quality companies with good cash flow, high-profit growth and good prospects, as well as competent management, and good ESG (Environmental, Social, and Governance) practices.

VinaCapital controlled risks by selecting stocks of companies with competitive advantages and sustainable business performance, or buying stocks at low prices to increase the possibility of achieving expected profits.

According to Brook Taylor, General Director of VinaCapital Fund Management Joint Stock Company, open-ended funds managed by VinaCapital had continued to deliver long-term returns. This had proven the value the funds bring to investors and their ability to generate solid returns amid market fluctuations.

As of June 30, 2023, the total assets of four open-ended funds owned by VinaCapital reached VNĐ3.14 trillion, up 0.97 per cent over the same period last year. The funds attracted 40,772 investors as of June 30, 2023.

In the first six months of the year, the net asset value per fund certificate of the DC Corporate Investment Fund (DCBC) increased by 11.37 per cent. Currently, the investment portfolio of the fund is holding stocks of companies with good profit expectations in the second quarter of 2023 such as banks, software, and steel firms.

Dragon Capital's Dynamic Securities Investment Fund (DCDS) saw an increase in net asset value per fund certificate of 14.68 per cent.

Open-ended funds of SSI Fund Management Joint Stock Company (SSIAM) also outperformed the market in the first half of this year.

Of which, the return of SSI Sustainable Competitive Advantage Investment Fund (SSI-SCA) reached 16.45 per cent in the first six months of this year, with a large contribution from growth stocks such as FPT Corporation (FPT), Hoà Phát Group (HPG), Sacombank (STB), and Quảng Ngãi Sugar JSC (QNS).

According to fund management companies, although Việt Nam's economy has not yet overcome a period of difficulties and slow growth, the Government has continuously emphasised the implementation of measures to support enterprises in production and business, requiring banks to reduce lending interest rates.

Bloomberg data shows that profit growth in 2024 of listed companies is forecasted to reach over 20 per cent. In terms of valuation, the VN-Index is trading at a price/earnings (PE) ratio for 2023 of 11.5 times, still in the undervalued area for the past 10 years.

Investment funds said that this valuation is still an attractive opportunity for long-term investment. Currently, investment funds have reduced their proportion of cash holdings and said they will continue to disburse in the near future. However, there will be a large divergence during the recovery. 

VN has eyes on a new logistics centre in Asia Pacific

Vietnam's logistics market grew from 14 to 16 per cent with a total import-export turnover of US$730 billion in 2022. The country expects to be a new logistics centre in the Asia Pacific region, creating an effective transport network for domestic and international markets in the future.

The comments were made by Vice Minister of Industry and Trade Nguyễn Sinh Nhật Tân at the Asia-Pacific Regional Annual Meeting of the International Federation of Freight Forwarders Associations (FIATA) and again at the mid-year meeting of the ASEAN Freight Forwarders Association (AFFA) in the central city on July 14.

He said the Government and ministries have been improving solutions to reduce logistics costs and create favourable conditions for sustainable development of the industry.

“In the context of the difficulties the world logistics service industry has been facing, the meetings of FIATA and AFFA offered a valuable opportunity to Việt Nam in connecting partners and businesses and exchanging experience and ties in the growing industry,” said Tân.

“FIATA is an important link for the Việt Nam Logistics Association in cooperating with the world associations and communities. The Prime Minister highly appreciated the contributions of FIATA and AFFA in the development of Việt Nam’s logistics service in a working visit in Hà Nội,” he said.

He added the conferences of FIATA and AFFA would open up chances to promote import and export growth as well as improve competitiveness for businesses in Việt Nam and the region.

President of FIATA, Ivan Petrov emphasised the trend of the structure of the global logistics service and freight forwarders associations – digital transformation, e-commerce and last-mile delivery and cross-border trade.

He suggested members should keep an eye on developments in electronic documents, artificial intelligence, internet of things (IoT), and the rapid growth of e-commerce, all of which need improved infrastructure, automated processes and innovative delivery solutions.

He said cross-border trade requires improved trade facilitation and regional integration.

Chairman of AFFA Yukki Nugrahawan Hanafi said the annual meeting of FIATA and AFFA aimed to boost cooperation and partnerships among associations during the crisis of the world economy and logistics industry.

He said big logistics service providers in the world gathered in the meeting to discuss solutions for boosting links and sharing experiences.

Việt Nam played an important role in the centre of the meetings and Đà Nẵng was chosen as the most favourable location for the event, he said.

Alex Marcias, an associate expert of the transport division under the UN Economic and Social Commission for Asia and the Pacific (ESCAP) introduced three pillars of ESCAP’s transport work including a platform for intergovernmental cooperation and policy dialogue; a comprehensive capacity-building programme, and analytical work and data collection.

He also said the ongoing projects must enhance the energy efficiency of the freight transport sector in Asia and the Pacific, as well as support policies on green and resilient transport infrastructure along the Asian network.

He added that improving the safety of navigation and sustainability of shipping through introducing innovative autonomous shipping technologies in the Asia-Pacific region, as well as leveraging the Trans-Asia railway network, would build more efficient and resilient transport connectivity and logistics in ASEAN and beyond.

It requires regional cooperation and the advancement of policies on sustainable maritime connectivity in the Asia Pacific in 2023, he said.

Chairman of Việt Nam Logistics Association, Lê Duy Hiệp said the annual meeting has helped bring together global and regional freight forwarders to discuss the highlights of the logistics and transportation industry in Asia, and the latest trends and best practices in the freight forwarding sector in 2023.

It’s also a chance for leading freight forwarders from Asia to focus on the implementation of sustainable development goals in the region, he said.

He added more than 100 businesses joined and partook in a field trip to Đà Nẵng’s Tiên Sa Port and explored the city's air logistics service.

Đà Nẵng, the host of the conferences, plans to develop as an international-standard logistics centre for Việt Nam, ASEAN and the Asia Pacific region by 2030.

According to the World Bank, Việt Nam ranks 43rd in the logistics performance index and is in the top five in ASEAN.

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