The 2024 Land Law, to take effect from August 1, is hoped to bring about investment waves in relevant sectors such as real estate, requiring stakeholders to make good preparations, experts stated at a conference jointly held by the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC) and the Vietnam International Arbitration Centre (VIAC) in HCM City on July 17.

ITPC Vice Director Cao Phi Van clarified that the law has many new contents, including the regulations on the rights and obligations of citizens regarding land, the classification of land, and land use planning, while expanding the limit for the transfer of agricultural land use rights of individuals, and supplementing regulations on development, management and utilisation of land funds.

In addition, the law also includes regulations on decentralisation and delegation of power to localities, contributing to removing difficulties and obstacles and smoothing the land resources for national development, she said.

Meanwhile, VIAC Deputy General Secretary Chau Viet Bac said that the 2024 Land Law relates with many other laws and regulations and impacts many socio-economic aspects. When it comes into effect, the law serves as a premise for changes in business investment situation of not only related industries such as real estate but also many others such as finance, construction, and service, said Bac.

He advised businesses to brace themselves with necessary knowledge and information to ensure their effective operations in the context of new legal framework.

Meanwhile, Phan Duc Hieu, member of the National Assembly Economic Committee, said that the Government is preparing to issue documents guiding the implementation of laws related to real estate sector such as the Land Law, the Housing Law, and the Law on Real Estate Business.

He held that the new regulations allowing overseas Vietnamese to own houses and land use rights will motivate this community to actively engage in long-term investment activities at home.

Particularly, the 2024 Land Law allows the combined use of land for multiple purposes, enabling investors to use part of the agricultural land area to build auxiliary works such as warehouses, temporary accommodations for workers, or agricultural service works. This mechanism will untangle the long-lasting “knot” and drive investment in large-scale agriculture and eco-agriculture projects, contributing to enhancing the economic efficiency for the sector.

Regarding industrial real estate, experts held that the law will provide more options to investors as they can rent land with annual or one-time land use fees, depending on the needs of the businesss./.

AIIB ready to support Vietnam: President

The Asian Infrastructure Investment Bank (AIIB) is always ready to support Vietnam and has prepared a 5-billion-USD loan to start with supporting the counrty’s infrastructure development, and will further mobilise private sector financing and resources to support sustainable infrastructure development in the country, AIIB President Jin Liqun told the Vietnam News Agency on July 17.

Jin commended the progress Vietnam has recorded in its socio-economic development over the recent years, particularly its impressive economic growth rate. However, he also pointed out that to sustain strong growth, Vietnam needs to continue improving living standards and investing in basic infrastructure, energy and green energy.

Identifying energy and transport as the two remaining shortcomings, the official stressed that as for energy, the construction of coal-fired power plants needs to proceed with caution. Although Vietnam still has hydroelectric resources, developing renewable energy will contribute to improving electricity supply issues.

With regard to transportation, metro lines under construction will partially alleviate current traffic problems. However, further improvements are needed in expressways, high-speed railways and airports.

There is much work to be done, but the focus should be on these two sectors first, and AIIB is always ready to support Vietnam, said Jin Liqun.

Established in 2016, AIIB is a multilateral development bank that began with 57 founding member countries, including Vietnam. Its membership has since expanded to 109, representing 81% of the global population and 65% of global GDP. To date, AIIB has approved 274 projects worth over 53.5 billion USD for its member countries.

In Vietnam, AIIB has approved three projects totaling 223 million USD. Most recently, in early July, the bank invested 75 million USD in green bonds issued by the Southeast Asia Commercial Joint Stock Bank (SeABank). In 2021, it granted a loan of 95 million USD to the 125MW Dakdrinh Hydropower Plant in central Vietnam. In 2020, it approved a 100-million-USD loan to the Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to help sustain business activities disrupted by the COVID-19 pandemic./.

Vietnamese enterprises attend Texworld New York City 2024

Thirty-nine Vietnamese textile enterprises are participating in Texworld New York City, a leading international trade fair for fashion and apparel procurement held biannually in New York, the US.

The three-day fair, which opened on July 16, has gathered hundreds of suppliers and designers in the global textile and garment supply chain.

The Vietnamese firms showcase products with diverse and creative designs, many of which are made from green and environmental friendly materials such as coffee and lotus fibers.

Ambassador Dang Hoang Giang, Permanent Representative of Vietnam to the United Nations, appreciated the impressive presence of Vietnamese textile and garment products in New York City - one of the world's leading fashion centres.

Textile-garment is Vietnam's main export product and ample room remains for its businesses to expand market share, he said, underlining the need to approach potential customers, learn about and promptly grasp fashion trends and focus on innovation, meeting the demand of choosy markets like the US.

The diplomat suggested that Vietnamese associations and businesses continue to coordinate closely with the country’s representative agencies in the US, including the Permanent Mission of Vietnam in New York, to bring Vietnamese products closer to the local market, thereby contributing to creating new development momentum for the country’s textile and garment industry and strengthening trade relations between the two countries./.

Deputy PM urges implementation of 1 million hectare of high-quality rice project

Deputy Prime Minister Tran Luu Quang on July 17 requested the acceleration of the implementation of a project to develop 1 million hectares of specialised rice cultivation with high quality and low emissions associated with green growth in the Mekong Delta region from now to 2030.

Speaking at a Hanoi meeting on the project implementation progress, Quang emphasised that it creates a new production method suitable for the world's production and consumption trends; and generates a breakthrough in agriculture thinking in the Mekong Delta, which is facing the effects of rapid and unpredictable climate change, thus contributing to improving the income and living conditions of farmers and businesses, and helping Vietnam realise its goal of achieving net zero emissions by 2050.

Agreeing with the opinions on the need to have the engagement of authorities in the central level, localities, farmers, and businesses in implementing the project, the Deputy PM required the Ministry of Agriculture and Rural Development (MARD) to keep the coordinating role, proactively handle the work under its authority, and report to the Prime Minister on issues beyond that.

Regarding borrowing loans from the World Bank (WB), the ministry must clarify investment items and work contents to ensure consistency, no duplication, and no overlap with other projects underway in the region, Quang added.

MARD Deputy Minister Tran Thanh Nam told the meeting that to carry out the project, his ministry has established a steering committee to oversee the project implementation. This committee includes representatives from the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Natural Resources and Environment, the State Bank of Vietnam, the World Bank, and 12 Mekong Delta localities.

The ministry has developed a technical process for producing high-quality, low-emission rice in the region and a plan to enhance capabilities for partners and agricultural cooperatives in developing value chain linkages under the project. It has also collaborated with localities to review the current status of production areas, infrastructure, production organisation and farming practices, and assess the situation of cooperatives in the Vietnam - Sustainable Agriculture Transformation Project in the 2015-2022 period.

Currently, the MARD is working with the WB and the 12 localities to finalise a loan project on infrastructure and technical support for high-quality, low-emission rice in the Mekong Delta region, Nam said.

According to the official, the ministry has implemented seven pilot models in Can Tho city, and Dong Thap, Kien Giang, Tra Vinh, and Soc Trang provinces.

Initial assessments show that the rice farming model under the project during the 2024 Summer-Autumn crop in Can Tho has yielded positive results. Input costs have decreased by 10-15%, including those in seed, fertilisers, and irrigation water. The yield of the pilot model ranged from 6.13-6.51 tonnes/ha compared to 5.89 tonnes/ha in the normal one, while its profits reached 21-25.8 million VND (830-1,020 USD)/ha, surpassing the normal model by 1.3-6.2 million VND/ha.

Moreover, the pilot model contributed to reducing CO2 emissions by 2 tonnes/ha compared to the model that removes rice straw from the fields and by 12 tonnes/ha compared to that practicing rice straw burial after harvesting. Importantly, many businesses have committed to purchasing all rice produced under these pilot models.

As Vietnam is the first country in the world to have a large-scale project on rice production towards sustainable growth and emissions reduction, it is facing a lot of difficulties, Nam said, proposing the Government submit to the National Assembly a resolution to pilot certain specific policies regarding the use of official development assistance (ODA) and concessional loans from foreign donors during the legislature’s plenary session in October.

Additionally, the ministry recommended that the Government allow the ministry to collaborate with the Asian Development Bank (ADB) to prepare a project for a 270-million-USD loan and to support the implementation of the project./.

Hung Yen province promotes effectiveness of agricultural cooperatives

Taking advantage of agricultural potential, the northern province of Hung Yen has rolled out many solutions to improve the operational efficiency of cooperatives.

Priority is given to supporting the development of new-style agricultural cooperatives associated with key product production areas and linkages between businesses to form large-scale value chains.

Dong Tao Chicken Breeding and Trading Cooperative in Khoai Chau district, which is renowned for its Dong Tao chicken trademark, is a typical example.

Le Van Thang, the cooperative’s director, said that to improve the quality of its special chicken, it built a slaughterhouse in 2018, ensuring food safety and hygiene.

The cooperative has launched ready-made products such as sausages, steamed salted chicken and chicken feet soaked in lemongrass and kumquat, winning consumers' trust, he continued.

Besides introducing products on social network platforms such as Facebook, Zalo and Tiktok, the cooperative has also collaborated with collective kitchens and companies’ canteens to boost consumption.

Le Tuan Cuong, a farmer in Dong Tao commune, said that after joining the cooperative, his family was equipped with breeding techniques as well as the product sale was secured.

His family raises about 400 Dong Tao chickens every year and earns a profit of 100 million and 200 million VND (3,840-7,870 USD) a year from breeding the poultry, he added.

Tran Van My, director of Quyet Thang specialty fruit tree cooperative in Hung Yen city’s Tan Hung commune, said the cooperative was set up by 18 local households in 2017, with 30ha under longan cultivation that follow the VietGAP standards. Three years later, its fresh longan was the first in Hung Yen to be exported to the European Union.

Apart from longan cultivation, the cooperative has also developed cage fish farming. The number of fish cages has risen from 20 in 2019 to 60 now, with carp, ca lang (bagridae) - a kind of cat fish and tilapia are the most bred species.

To diversify products, the cooperative has cooperated with Khai Ha Pharmaceutical and Medical Supply Trading Joint Stock Company in neighbouring Thai Binh province to grow medicinal plants. The cooperative posts revenue of 4 billion VND each year, bringing high income to its members.

Chairman of the provincial Cooperative Alliance Nguyen Cao Cuong said that there are 390 agricultural cooperatives in the locality.

He noted that the linkage between production and consumption has helped cooperatives reduce input costs, increase product value and ensure product sale.

In the coming time, the alliance will continue to promote communications work on the collective economy to facilitate cooperatives’ access to preferential credit sources, according to Cuong.

It will also support cooperatives in joining the One Commune One Product (OCOP) programme to enhance value and build brands for their products as well as intensify trade promotion activities, he said.

Hung Yen aims to have 1,500 cooperatives and cooperative groups by 2030, with at least 60% to operate effectively./.

AMRO revises Vietnam’s 2024 growth forecast upward to 6.3%, highest in ASEAN

The ASEAN+3 Macroeconomic Research Office (AMRO) revised Vietnam’s economic growth forecast upward to 6.3% for 2024 in its latest update released on July 16.

The growth rate is 0.3 percentage points higher than the 6% forecast in April and is the highest among ASEAN countries for 2024.

The Singapore-based organisation maintained its forecast for Vietnam’s GDP growth in 2025 at 6.5%.

In its flagship report, AMRO revised the growth of most ASEAN countries downward for 2024, with the Philippines projected to have the second-highest growth rate at 6.1%, followed by Cambodia at 5.6% and Indonesia at 5.2%.

The report by AMRO Chief Economist Hoe Ee Khor noted that Vietnam was hit hard last year by the downturn in external demand, but is expected to benefit from a turnaround in external demand this year.

“This is going to be a very strong growth year for Vietnam. The country is one of those highly open economies that benefit greatly from trade,” he said.
However, Khor also pointed out some weaknesses in the economy due to uneven growth across sectors.

“In the real estate sector, for instance, there is a struggle from a downturn. There is scope for the authorities to implement targeted measures to help revive the real estate sector and also support the vulnerable group of small and medium enterprises (SMEs), many of which are still lagging behind,” he said.

AMRO staff forecast Vietnam’s inflation to rise by 3.8% this year, up from 3.6% in its April update.

Vietnam's economy was reported to have grown by 6.93% in the second quarter and 6.42% in the first six months of 2024. The consumer price index (CPI) rose by 4.08% in the first half of 2024 compared to the same period last year, according to the General Statistics Office.

In its latest forecast for the country’s GDP growth, the Ministry of Planning and Investment estimated that Vietnam's economy might surpass forecasts to grow by 7% this year. In one scenario, growth could hit 6.5%, matching the National Assembly's target. In a more optimistic scenario, growth could reach 7%, with higher rates in the last two quarters./.

PVEP signs crude oil, gas supply deals

The Vietnam Oil and Gas Group( Petrovietnam) Exploration Production Corporation (PVEP) on July 14 signed contracts to supply crude oil to the Dung Quat Oil Refinery, and supply and consume gas from Ky Lan field.

Specifically, the memorandum of understanding for the agreement on supply and consumption of gas from Ky Lan field’s Blocks 103 & 107 is inked between the PVEP and the Petrovietnam Gas Joint Stock Corporation (PV GAS).

Meanwhile, the principle contract for crude oil supply from Dai Hung field’s Block 05-1a to the Dung Quat Oil Refinery is reached between the PVEP, the Petrovietnam Oil Joint Stock Corporation (PVOIL), and the Binh Son Refining and Petrochemical Joint Stock Company (BSR).

According to the project on developing a competitive energy market to 2030, with a vision to 2045, the Prime Minister allows contractors and investors of new gas exploitation projects to choose direct negotiations for gas sales to consumers or wholesale sales to Petrovietnam or PV GAS.

This initiative aims to meet energy security requirements and needs, and promptly respond to unfavorable changes in the global crude oil market. It seeks to balance the interests with other business operations of Petrovietnam and its subsidiaries, including PV GAS's gas business, while contributing to market stabilisation and ensuring national energy security./.

HCM City hosts major electrical technology, green energy expo

The 17th International Exhibition on Electrical Technology & Equipment (Vietnam ETE) and Products of Energy Saving & Green Energy (Enertec Expo) 2024 kicked off in Ho Chi Minh City on July 17.

The three-day event, co-hosted by the municipal Department of Industry and Trade, the Ho Chi Minh City Centre for Supporting Industries Development, and C.I.S Vietnam Advertising and Exhibition Company, is a major gathering for the electrical technology and green energy sectors.

Over 300 leading brands from both Vietnam and abroad, including China, Germany, France, the US, Japan, and the Republic of Korea, are showcasing their products and services at nearly 500 booths.

Le Hoang Tai, Deputy Director General of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, called the Vietnam ETE and Enertec Expo 2024 a prestigious destination for the business community engaging in trade promotion, technology transfer, investment attraction, and business expansion.

This will assist domestic and international businesses to contribute to the implementation of Vietnam's national energy and environmental protection strategies, ultimately promoting the overall development of the Vietnamese economy, Tai added.

The annual exhibition has established itself as the largest in HCM City to showcase advancements and foster collaboration in the electrical technology, green energy, and renewable energy sectors.

This year's event also features a business-to-business networking session connecting Vietnamese enterprises with participating foreign partners. Additionally, a seminar delving into current demand and opportunities in the HCM City and Vietnamese electrical equipment industry is scheduled./.

Works starts on most modern automated sorting centre in Binh Duong

Work started on July 16 on an automated sorting centre in the southern province of Binh Duong, which will become the most modern facility in the region when finished.

The centre is a collaborative project between SPX Express and Frasers Property Vietnam, a multinational owner-operator-developer of real estate products and services.

Set up in the Binh Duong Premium Industrial Park (BIDP) in Thu Dau Mot city, the 10.6-hectare facility is equipped with the most up-to-date automatic sorting system that can process over 2.5 million parcels a day.

When the first phase is put into use in 2025, it will play a vital role in improving the logistics infrastructure in the country and creating jobs for thousands of local people, which helps foster the province’s economic growth.

Vice Chairman of the provincial People’s Committee Nguyen Van Danh said Binh Duong has attracted many investments over the past few years, especially those from foreign countries. It has also created favourable conditions to call for investments in logistics infrastructure from leading businesses, with an aim to become a satellite logistics centre of the southeast region.

With an investment of 30 million USD, the centre is expected to bring development opportunities and contribute to the local and national economy, he added.

Danh said province authorities would continue to support investors to ensure stable production and business activities.

Binh Duong province, one of the key southern economic hubs, has 29 industrial parks with a total area of 12,600 hectares, and it expects to have 17 more by 2050.

Among them, BIDP is the first industrial park in Vietnam to be built based on the elevated industrial real estate model, with high quality industrial and logistics infrastructure.

Several factories placed in the park have also achieved the Leadership in Energy and Environmental Design certification for being green, sustainable, and operationally efficient.

The province has attracted nearly 4,300 projects with total investment capital of nearly 40.6 billion USD from 65 countries and territories as of May, ranking third in the country after Ho Chi Minh City and Hanoi./.

Policies urged for valuable, economically beneficial medicinal herb development

Specific policies in the development of medicinal herbs, particularly valuable and economically beneficial medicinal herbs need to be issued, as a matter of some urgency.

That was the directive came under the 86th conclusion of the Secretariat on developing Vietnam's traditional medicine and the Vietnam Orientally Traditional Oriental Medicine Association in the new period, recently signed by the permanent member of the Party Central Committee's Secretariat.

The Secretariat ordered that all levels of Party committees, authorities, the Vietnam Fatherland Front and socio-political organisations must plan and develop areas for cultivating medicinal herbs on an industrial scale, establish a traceability system and ensure the safety of medicinal herbs.

The development of the medicinal herb industry should be linked with scientific research, production and preservation and processing chains.

Efforts should be intensified to coordinate between ministries, sectors and localities in managing medicinal herbs, enhancing quality control and resolutely fighting against counterfeit, substandard and untraceable traditional medicine products.

Furthermore, the Secretariat called for the effective implementation of Directive 24, the resolutions of the 13th National Party Congress and the Party's policies on protecting, caring for and improving the health of the people.

It should renew and enhance dissemination, education and determine the responsibility and actions of all levels of Party committees, authorities, officials, Party members and the public in developing Vietnam's traditional medicine, contributing to preserving and promoting the national cultural heritage, the conclusion says.

The Secretariat demanded a review and completion of relevant policies and laws, continuing to concretise policies on traditional medicine, renewing the management system, diversifying and improving the quality of traditional medicine services in conjunction with health tourism.

Investment must be increased, focusing on training and developing herbalists and traditional medicine practitioners, ensuring sufficient human resources from central to local levels.

Mobilisation of social resources for the development of Vietnam's traditional medicine needs to be strengthened, the conclusion adds.

Developing the traditional medicine healthcare system, especially at grassroots health levels, integrating traditional medicine with modern medicine, research and testing and proving the efficacy of non-drug treatment methods should be prioritised.

A comprehensive database of medicinal herbs and traditional medicines must be developed, connected with national and specialised databases, promoting the application of science, technology and digital transformation in traditional medicine.

Proactive international integration and effective international cooperation should be pursued, promoting the image and brand of Vietnamese traditional medicine and creating policies to export traditional medicine products, including high-quality human resources and non-drug treatment methods.

Participation in professional and educational associations on traditional medicine regionally and globally; support for discovering, registering and protecting intellectual property rights in traditional medicine; honouring and ensuring the rights of renowned physicians, implementing specific policies for registering and protecting intellectual property rights; and safeguarding the secrets of traditional medicine formulation are among the requirements from the Secretariat.

The Secretariat also told the Vietnam Traditional Oriental Medicine Association and socio-political organisations to actively disseminate and provide information on Vietnamese traditional medicine, effective remedies, and treatment methods to both domestic and international populations.

Coordination with media agencies to introduce and replicate effective models and exemplary practices in traditional medicine development is necessary.

Relevant agencies have to boost the campaigns 'Vietnamese people prioritise using Vietnamese goods' and 'Vietnamese people prioritise using Vietnamese medicine'.

The Government has been asked to direct the issuance of documents to develop Vietnamese traditional medicine and the Vietnam Traditional Oriental Medicine Association for the period 2025-30, with vision towards 2045.

The Ministry of Health and Vietnam Oriental Traditional Oriental Medicine Association are tasked to closely coordinate with relevant agencies and localities to effectively implement the conclusions.

The Party Central Committee's Commission for Publicity and Education, in collaboration with the health ministry and relevant agencies are assigned to guide, supervise and periodically report to the Secretariat on the implementation of the conclusions./.

NIC launches semiconductor design training programme with Qorvo, Cadence partnerships

Minister of Planning and Investment Nguyen Chi Dung on July 16 announced the launch of the Analogue IC Design Course, an initiative spearheaded by the National Innovation Centre (NIC), in partnership with US giants Qorvo and Cadence, aiming to enhance the workforce in the semiconductor design sector.

The Minister said that course is not only the beginning of a critical training programme, but also a significant step towards Vietnamese mastery of semiconductor technology.

He stressed that this initiative is a crucial way to leverage Vietnamese human capital in the country's socio-economic development strategy.

The program aims to enhance Vietnam's workforce capabilities in semiconductor design, addressing the country's talent shortage in this sector. It also aligns with the country’s target of training 50,000 engineers and graduates for the semiconductor industry by 2030.

Qorvo will provide senior lecturers and experts, delivering training according to US standards, while Cadence will support the initiative by supplying comprehensive software licences for semiconductor design.

Forty students will be selected from Hanoi University of Science and Technology, Vietnam National University - Hanoi - and seven others will undergo a three-month intensive programme at NIC's Hanoi campus, combining theoretical knowledge with practical experience using Cadence Virtuoso, an industry-standard software. Graduates will have internships and employment opportunities at Qorvo and other leading partner firms in the semiconductor design sector.

The partnership was solidified with a Memorandum of Understanding (MOU) between NIC and Qorvo, demonstrating a strategic commitment to advancing Vietnam's semiconductor ecosystem through high-quality research, development and talent training.

Prior to the ceremony, Minister Dung met with Qorvo's chairman to discuss investment and collaboration strategies to foster Vietnam's semiconductor industry.

The Ministry of Planning and Investment has encouraged Qorvo and other semiconductor partners to continue investing and expanding their businesses in Vietnam, emphasising the importance of local supply chain services and the development of R&D centres, particularly within NIC facilities.

Amid the shifting global semiconductor value chain towards Southeast Asia, Minister Dung asserted that Vietnam has the necessary conditions to develop its semiconductor industry, including a favourable geographical location, a tech-savvy young workforce, rapidly modernising infrastructure and a conducive investment environment.

He expressed confidence in meeting the target of training 50,000 engineers for Vietnam's semiconductor industry, with 15,000 specialising in design by 2030, bolstering both domestic and international workforce needs.

“I am confident in Vietnam's semiconductor sector. Vietnam has the potential to become an R&D and production hub for semiconductors in the region with a robust workforce, not just 50,000 engineers but potentially hundreds of thousands,” he stated.

Innovation is identified as one of five pillars in Vietnam's socio-economic development strategy for 2021-30. This strategy has driven the comprehensive development of Vietnam's innovation ecosystem, fostering research, development and technology.

Bob Bruggeworth, Qorvo's Chairman, praised Vietnam's rapid semiconductor development and the government's decisive actions in building a local semiconductor ecosystem. He expressed confidence that NIC will become a central hub for semiconductor development in Vietnam, highlighting the critical role of human resources in this sector.

"We will work with universities to train great engineers, both theoretical and practical here in Vietnam," Bruggeworth said.

Qorvo is a leading global supplier of semiconductor chips for power and connectivity solutions and have a component manufacturing facility in Vietnam. The company employs over 8,500 people worldwide, with revenues reaching 3.8 billion USD in the fiscal year 2024 (April 2023 - March 2024)./.

Germany increases Vietnamese imports amid falls in other markets

Germany has increased the import of Vietnamese commodities in the first six months of the year in the context that it reduced imports from other markets, according to the General Department of Vietnam Customs.

Statistics show that two-way trade turnover between the two countries rose 1.7% in the reviewed period to US$5.5 billion. Of the total, Vietnamese exports edged up by 3% to US$3.8 billion, while imports from the market declined by 1.2% to US$1.7 billion. The country posted a trade surplus of US$2.06 billion with Germany, representing an annual increase of 7%.

The Vietnamese Trade Office in Germany reported that the Central European country is currently Vietnam’s second largest trading partner in the EU with trade turnover of US$6.5 billion, equivalent to 17% of total trade turnover between the country and the EU in the reviewed period. Of the figure, exports and imports accounted for 15% and 23%, respectively.

Agro-aquatic and electronics products were among key export items to Germany with turnover surging by 39.4% year-on-year to US$640.3 million.

The strongest export growth was recorded in coffee with US$383 million, up 37%; seafood US$94 million, up 10%; cashew nuts US$63 million, up 33%; pepper US$48 million, up 156%; fruit and vegetables US$32 million, up 118%; and rubber US$18 million, up 35%.  

Most notably, Vietnamese seafood exports to Germany posted a higher growth rate compared to exports to the EU bloc as a whole, up 5% year on year.

This impressive export growth was also seen in the category of phone products with turnover up 23% to US$431 million; computers, electronic products, and components US$422 million, up 29%; plastic products US$84 million, up 30%; and timber and wood products US$44 million, up 46%. Vietnamese wooden furniture exports to Germany are mainly furniture, accounting for a proportion of 85.3%.

However, footwear and garments, that are the strongest Vietnamese exports to Germany, witnessed declines of 21% and 18%, respectively.

Insiders attributed the fall to rising inflation which has forced people to tighten spending on non-essential products.

In addition, fierce competition from regional peers such as China, India, and Turkey has also affected the export of these products to the demanding market.

Over 300 firms attend int’l expos on electrical technology and energy in HCM City

More than 300 leading domestic and international firms are joining the 17th International Exhibition and Electrical Technology and Equipment (Vietnam ETE 2024) and the International Exhibition of Energy Saving and Green Power Products and Technologies (Enertec Expo 2024) which opened in Ho Chi Minh City on July 17.

On display across the 500 booths were a range of cutting-edge electrical equipment and technologies, as well as solutions in the field of renewable energy and green energy by popular brands, including Song Nhat - ABB, Gelex, Vina Electric, Nguyen Ha, Fluke, Shihlin Vietnam, Song Da Energy Company, Solar Z, Lux Power, and Hieu Kiet.

Addressing the opening ceremony, Nguyen Thi Kim Ngoc, deputy director of the Ho Chi Minh City Department of Industry and Trade, emphasised that the engagement of renowned energy brands from advanced countries is anticipated to contribute to promoting the sustainable development of these industries and the business community as a whole.

For his part, Le Hoang Tai, deputy director of the Vietnam Trade Promotion Agency, said these reputable expos provide an ideal venue for the business community to step up trade promotion activities, enhance technology transfer, and attract further investment, thereby accelerating environmental protection and simultaneously promoting the development of the Vietnamese economy.

A number of seminars and business-to-business (B2B) sessions will be held during the three-day event as part of efforts to enhance trade connectivity among firms.

Overseas remittances to Ho Chi Minh City continue to see upturn

Overseas remittances to Ho Chi Minh City during the first half of the year reached nearly US$5.2 billion, marking an increase of 19.5% on-year, Nguyen Duc Lenh, deputy director of the State Bank of Vietnam (SBV)'s Ho Chi Minh City branch, said on July 18.

Lenh said that the amount of remittances sent to the southern city in the reviewed period is equivalent to 54.7% compared to the entirety of last year.

Overseas remittances to the city in the second quarter of the year stood at more than US$2.3 billion, down 19.5% compared to the first quarter but up 4.2% against the same period from last year.

Most notably, remittances from Asia still accounted for the highest proportion with 56.1%, representing a rise of 48.5% on-year.

Lenh pointed out that both workforce and labour market factors continue to exert a positive impact on the amount of remittances transferred from the region during the six-month period.

However, he proposed a number of solutions aimed at attracting and using overseas remittances effectively, including improvements made to the investment climate and the overall quality of remittance payment services.

Furthermore, he underscored the importance of the efficient use of remittances in developing production activities, high-quality education and healthcare services, and promoting the microfinance model for the agricultural sector.

Experts expressed their belief that the enforcement of the Law on Real Estate Business (amended) from August 1 will allow overseas Vietnamese to invest in the real estate sector, which can be viewed as a positive factor in attracting further remittances to Ho Chi Minh City in particular, as well as Vietnam in general, in the near future.

RoK eyes broader smart agriculture co-operation with Vietnam

The Republic of Korea (RoK)'s smart farm sector is gaining greater motivation to penetrate the Vietnamese market as a basis for further expansion into Southeast Asia thanks to advanced technology, the Ministry of Agriculture, Food and Rural Affairs (MAFRA) said on July 18.

At a press conference held on July 18 in Sejong city in the RoK, the MAFRA said that 15 companies operating in the field of smart farms in the RoK participated in the Vietnam-Korea Plus Partnership Week 2024 organised on July 16 by Ho Chi Minh City and conducted 105 trade promotion meetings alongside Vietnamese partners.

The parties signed a total of eight Memoranda of Understanding (MoU) worth US$2.69 million. Through this event, officials and businessmen in the Vietnamese agricultural sector showed a keen interest in the RoK’s smart farms and related technologies.

Korean smart farm enterprise AVALVE captured special attention with its presentation on the successes achieved in the nation and the prospects ahead for promoting ties in the field of smart agriculture between the two nations.

In November, 2022, AVALVE signed a MoU on co-operation in the field of smart agriculture with the Vietnam National Centre for Fertilizer Testing (NCFT) and then build a pilot vertical farm to grow ginseng sprouts in the nation in February, 2023.

Furthermore, in an effort to export the smart farm model Demo Smart Farm which is a model smart greenhouse built in Hanoi that received good feedback, AFFES company also signed a contract worth US$370,000 to complete a smart farm in Indonesia in July this year.

The project aims to introduce the RoK’s advanced smart farm technologies to promising overseas markets, thereby laying the foundation for Korean companies to export products and technology to the world.

MAFRA has chosen Vietnam as an export destination of Southeast Asia as it works to promote and export Korean smart farm products and technologies and build a pilot smart farm in Hanoi from 2022. This is a steel frame greenhouse farm model which is equipped with an environmental control system.

Lee Sang Min, director of MAFRA's Agri-Food Innovation Policy Department, said Southeast Asian countries are highly interested in smart farming as this technology helps to solve problems related to climate change and other contemporary challenges that the world is facing.

Southeast Asian nations are also very interested in applying relevant technology to develop smart agriculture, he went on.

Accordingly, MAFRA will continue to develop policies aimed at supporting Korean businesses in exporting, expanding business networks, creating fresh momentum for businesses to expand their penetration, and boosting the export of smart farms to Southeast Asia.

The Vietnam-Korea Plus Partnership Week 2024 aims to promote co-operative activities between both countries in the fields of smart and environmentally friendly industry, clean energy, and smart agriculture with a view to providing a solid foundation to further joint economic ties in the future.

Gold prices suddenly bounce back to reach VND80 million

After standing still for 45 consecutive days, the opening session on the morning of July 18 saw Saigon Jewelry Company (SJC) gold bar prices rebound, reaching VND80 million per tael.

This comes as at 9 a.m. (local time) buying and selling prices for gold bars quoted by both SJC and Doji stood at VND78.50 million and VND80 million per tael, respectively, marking an increase of VND3 million per tael compared to the previous session.

Furthermore, SJC gold prices at the Phu Quy Gold Joint Stock Company also increased by VND3 million per tael to reach VND78.50 million and VND80 million per tael for buying and selling, respectively.

Meanwhile, the domestic price of gold rings saw a drop, reaching VND77.6 million per tael.

Phu Quy Gold Joint Stock Company bought and sold gold rings at VND76.30 million and VND77.60 million per tael, marking a decrease of VND100,000 over the previous session.

Gold ring prices at the Bao Tin Minh Chau Co., Ltd. were traded at VND76.33 million and VND77.63 million for buying and selling, a figure of VND30,000 per tael lower compared to the previous session.

Globally, gold prices stood at around US$2,463 per ounce, down by about US$14 compared to the previous trading session.

Securities stocks still see positive long-term outlook

The Vietnamese stock market has failed to break the crucial 1,300-point threshold despite various efforts, preventing the establishment of a sustainable upward trend. 

The benchmark index's rallies have encountered significant resistance forces, compounded by a lack of supporting momentum due to divergences among industry groups. In particular, the securities stocks group seems unable to recapture the strong performance set at the start of the year.

Securities stocks displayed a positive trend in the first four months of 2024, buoyed by encouraging first quarter business results and capital increase activities.

However, since the end of April, the group has shown signs of losing steam compared to other sectors. Trading activity has been sluggish and many securities stocks have struggled to maintain their previous price gains.

Sustaining the recovery momentum is no easy feat for the securities industry, particularly given the waning market liquidity amid prevailing cautious sentiment.

Liquidity has exhibited a declining trend in recent months, with lower trading volumes and values. The billion-dollar trading sessions have largely disappeared, replaced by more modest matched order liquidity levels typically ranging between VNĐ12,000-15,000 billion (US$472.7-591 million).

Experts note that the gradual rise in interest rates has visibly impacted the market, particularly for securities firms with limited lending and margin activities amid the volatile market environment. 

The lack of momentum from margin operations may make it difficult to improve prevailing liquidity constraints in the short term, potentially affecting brokerage and margin lending revenues.

Meanwhile, the trend of global capital flow shifts is expected to persist. Strong net selling by foreign investors has weighed on domestic sentiment, with cumulative net selling on the Hồ Chí Minh Stock Exchange (HoSE) surpassing the 2021 full-year record of around VNĐ59 trillion. 

Though supported by domestic investors, the VN-Index has yet to breach the 1,300-point resistance point, which could significantly impact the profitable proprietary trading portfolios of securities firms.

The delay in the KRX project or the upgrading of the emerging market status remains an unresolved factor, which is not entirely positive. The relative steadiness of the securities stocks in recent months reflects the caution and wait-and-see approach of investors towards the market volatility.

KB Securities Vietnam (KBSV) noted that the current valuation of the securities stock group has reflected the positive outlook for the second half of 2024. Currently, the industry's stocks are trading at or near the std+1 (standard deviation) zone of the 5-year average price to book (P/B) ratio.

However, the information gap related to the progress of the KRX implementation may lead to short-term corrections and accumulation in the securities stock group.

The securities industry outlook remains positive in the long-term. KBSV maintains an optimistic view on prices and liquidity of the Vietnamese stock market in the second half of 2024. Market profit growth is expected around 10 per cent this year, with valuations at reasonable levels.

Interest rates, even after increases, may still drive investment demand in the stock market as bank deposit returns become less attractive. 

On the other hand, anticipated rate cuts by major central banks in the world could narrow the Vietnamese interest rate gap, potentially reversing the recent foreign net selling course.

The market upgrade remains a key long-term driver. While an upgrade in 2024 seems unlikely, given the time needed to change pre-funding requirements, KBSV expects Việt Nam will be upgraded by FTSE Russell's assessment in 2025 and officially included in the FTSE Emerging Markets Index by 2025-2026.

Securities companies are expected to continue aggressively raising capital in the remainder of 2024. According to KBSV's analysis, the observed group of securities firms is projected to increase their total charter capital by over VNĐ26 trillion - around a 23 per cent gain from the the first quarter of 2024. 

This will be achieved through share issuances to existing shareholders, private placements and employee stock ownership plans (ESOPs).

The influx of new capital is anticipated to drive various business activities at these securities companies. It will boost their lending capacity for margin trading, strengthen investment resources and enable investments in systems, technology and human capital. 

Lai Chau improves business climate to attract investment

To boost investment attraction, Chairman of the provincial People’s Committee of the northern mountainous province of Lai Chau Le Van Luong has directed local departments and localities to improve business environment and competitiveness throughout the remainder of 2024.

The focus will be on continuing to improve indicators and sub-indices that have shown an upward trend, and drastically addressing lagging areas like land access, transparency and labour training.

Lai Chau will continue to leverage the role of the special working group set up to resolve difficulties and obstacles faced by businesses and investors. It will also take effective measures in support of enterprises, and build plans to hold the 2024 business dialogue, Luong said.

According to a report by the Lai Chau provincial People’s Committee, the Provincial Competitiveness Index (PCI) of the province significantly improved last year, Lai Chau was ranked 35th out of 63 provinces and centrally-run cities, a jump of 22 places compared to 2022, a testament to the success of previous initiatives aimed at fostering a more attractive investment landscape.

The first half of 2024 already saw positive results. Lai Chau witnessed the establishment of 81 new enterprises with a combined registered capital of nearly 900 billion VND (37.5 million USD). Additionally, authorities approved investment decisions for five new projects valued at 182 billion VND.

Currently, Lai Chau boasts over 300 valid investment projects with a total capital exceeding 142 trillion VND. Among them, 187 projects have been completed and put into operation, 39 others are under construction, and 74 in the final stage of legal completion. Total social investment capital for the first half was estimated at more than 3.9 trillion VND.

The province has taken a proactive approach to address challenges in specific projects. These efforts include resolving obstacles faced by the project to build the Son Binh resort complex in Tam Duong district and the FOBIC afforestation and development project in Tan Uyen and Than Uyen districts. Additionally, Lai Chau has assigned tasks to its special working group to expedite the construction of a road tunnel connecting Lai Chau's Tam Duong district with Sa Pa town in neighbouring Lao Cai province.

Investment promotion activities are another key focus area. Lai Chau is actively developing promotional materials, documentaries, and videos showcasing the local strengths and investment potential. In the first half of this year, 30 investors and businesses came to the province to explore business opportunities, with a particular focus on agricultural sector./.

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