A mobile phone production line of Samsung Vietnam in the northern province of Bac Ninh. Photo: VNA

Thus, after a continuous decrease in the first five months, foreign direct investment (FDI) disbursement has started to rise slightly, which is also a positive sign amid a difficult landscape.

However, the registered FDI was still decreasing. As of June 20, the total registered investment was $13.43 billion, equivalent to 95.7 per cent on-year, a decrease of 4.3 per cent, which is a smaller reduction on-month.

A total of 1,293 new projects were granted investment registration certificates in the first half, with the total registered capital of over $6.49 billion, up 71.9 per cent in the number of projects and up 31.3 per cent on-year in terms of capital.

The adjusted capital of almost 632 ongoing projects stood at about $2.93 billion, up 29.8 per cent on-year in number but down 57.1 per cent in capital terms.

There were approximately 1,594 capital contributions and share purchases as of June 20, equivalent to $4 billion, showing an increase of 76.8 per cent on-year.

The FIA said that the newly registered capital has been increasing more sharply in both values and project numbers as compared to previous months.

"That means small- and medium- sized investors are paying more attention to Vietnam, and appreciating the nation's investment climate," noted an FIA report.

The FIA report also indicated that FDI was seen in 18 out of the 21 economic sectors in the first half. Of those, processing and manufacturing took the lead with $8.46 billion, capturing 63 per cent of the total, but saw a 4.2 per cent drop compared to the same period in 2022.

Banking and finance ranked second with $1.53 billion, making up 11.4 per cent of the total. This was followed by real estate, and professional, science and technologies with $1.53 billion and $630.6 million, respectively.

Singapore was the top foreign investor in Vietnam with close to $3 billion, accounting for 22.3 per cent of FDI into the country in the first half of 2023, but representing a decrease of over 27.5 per cent on-year.

Japan came second with $2.21 billion and China third with $1.95 billion. They were followed by South Korea, Hong Kong, and Taiwan.

Foreign-invested projects still choose cities and provinces that have more advantageous infrastructure development, human resources, and clear administrative procedures, such as Hanoi, Ho Chi Minh City, and Bac Giang.

Quang Ninh approves Yen Hung LNG Port project

Quang Ninh province has granted approval for the Yen Hung liquefied natural gas (LNG) port project with an estimated capital of $32.2 million. It aims to support the adjacent Stavian Quang Yen Oil Refinery and be a significant advancement to Vietnam's LNG infrastructure.
 
On June 26, Quang Ninh People's Committee approved the investment proposal put forth by Yen Hung LNG Port JSC for the construction of Yen Hung LNG Port. It will sit along the Chanh River, within Bac Tien Phong Industrial Zone in Quang Yen town. The project, with an estimated capital of around $32.2 million, is set to become one of Vietnam's main LNG ports.

The investor will proceed with building a specialised bridge and berth system for the import and export of liquefied petroleum gas and petroleum, featuring a total berth length of 426m and the ability to accommodate vessels from both sides.

Initially, the port will cater to liquid cargo ships of up to 50,000DWT on its outer side (with the potential future expansion to accommodate ships of up to 100,000 DWT) and vessels of up to 2,000DWT on its inner side. The planning includes all the necessary accompanying technical infrastructure.

Once completed, the port will serve its first customer, the Stavian Quang Yen Oil Refinery project that will be located adjacent to it. The Stavian Quang Yen Oil Refinery and the Yen Hung LNG Port will be closely linked and form a strategic partnership.

In July 2022, Stavian Quang Yen Oil Refinery JSC, Quang Ninh People's Committee, and Bac Tien Phong Industrial Zone JSC launched the Stavian Quang Yen Oil Refinery project by signing an MoU for investment cooperation.

The estimated total investment for the project amounts to $1.5 billion, with a production capacity of 600,000 tonnes of polypropylene per year. It is projected that by Q4/2026, the construction of the refinery will be completed, ready to undergo trial operations and commence full commercial activities.

Stavian Quang Yen Oil Refinery is owned by Stavian Quang Yen Oil Refinery JSC, established in September 2021. By the end of 2022, the company increased its charter capital to $21.7 million. Dinh Duc Thang, chairman of the Board of Directors and CEO of the company, holds the same positions at Stavian Chemical JSC.

At its inception, the company's shareholders included Stavian Chemical JSC (formerly known as Opec Plastic JSC) with a 51 per cent ownership stake, Yen Hung LNG Port JSC with 39 per cent, and Nguyen Hong Hiep with 10 per cent.

Stavian Chemical, founded in 2009, is the 22nd largest chemical distributor globally and the sixth largest in the Asia-Pacific region. The company specialises in trading virgin plastic resins and biodegradable packaging, such as frozen food bags, roll-type rubbish bags, HDPE gloves, and more.

According to the company's website, Stavian Chemical achieved an annual revenue of $1.2 billion and boasts over 2,000 employees operating worldwide. It serves more than 14,000 customers both domestically and internationally, spanning over 100 countries and territories.

Sumitomo Corporation expands investment in Thang Long II Industrial Park

Sumitomo Corporation is strengthening its commitment to Thang Long II Industrial Park (IP) in the northern province Hung Yen, with six Japanese companies investing $500 million in the park's third phase expansion.
 
Sumitomo Corporation, a Japanese conglomerate, held a productive meeting with Tran Quoc Van, Chairman of Hung Yen People's Committee, on June 27.

The meeting focused on the expansion of the Thang Long II IP and the support provided by the province to Japanese businesses operating within it.

Sumitomo Corporation expressed its appreciation to Hung Yen for improving the conditions for Japanese enterprises in the IP.

The corporation is engaged in the third phase expansion of the park, with the province's constructive assistance during the project implementation. Currently, six Japanese companies have invested approximately $500 million in the expanded area for the third phase, and Sumitomo Corporation plans to continue investing into the fourth phase.

During the meeting, Van acknowledged the province's efforts in expediting the land clearance process for the expanded area of Thang Long II IP.

Although substantial progress has been made, a portion of the land still requires clearance. To address this, Van requested Sumitomo Corporation to collaborate with relevant provincial departments and agencies.

Additionally, a detailed plan for the fourth phase expansion should be formulated, and necessary procedures should be promptly implemented.

Thang Long II IP has leased 268 hectares of industrial land, with an occupancy rate of 66.8 per cent. It primarily attracts investments in electronic and precision mechanical manufacturing, transportation machinery, rubber products for the automotive industry, lighting, industrial gas, pharmaceuticals, vaccines, biotechnology products, and optical glass production. The park encourages the development of high-tech industries and packaging material production.

The IP currently hosts 104 foreign-invested projects with a total registered capital of approximately $3.3 billion. Japanese investors dominate the foreign investment landscape, with prominent economic groups such as Kyocera, Hoya, Nippon, Daikin, Toto, and Panasonic leading the way.

Sumitomo Corporation's increased investment in Thang Long II IP demonstrates the confidence and trust of Japanese investors in the province's potential and investment environment.

With ongoing support from the local authorities, the IP is poised to attract more foreign investment, contributing significantly to Hung Yen province's economic growth and industrial development.

Incentives at play for Asian groups to contend with GMT

While waiting for official announcement of actual investment cost-based incentives, South Korean and Japanese businesses in Vietnam are seeking more efficiency in administrative procedures to ease their possible burden via the upcoming global minimum tax.

Hong Sun, chairman of the Korea Chamber of Commerce and Industry (KoCham), said that he and its member companies are evaluating the possible impacts of global minimum tax (GMT) on their preparations, while observing the situation in countries around the Asia-Pacific region where South Korean corporations also have investments such as Singapore, Malaysia, Thailand, and Hong Kong.

Enterprises from Japan are also in a similar situation. Takeo Nakajima, chief representative of the Hanoi office of the Japan External Trade Organization (JETRO) said, “We are concerned that the GMT will reduce the tax benefits related to substantial businesses by foreign direct investment. In any case, we are watching the development of this tax system in Vietnam with interest.”

According to Nakajima, who is also vice chairman of the Japanese Chamber of Commerce and Industry in Vietnam, the introduction of GMT means that low tax rates will no longer be an essential factor in the competition for the business environment in the region. Vietnam must demonstrate its competitive attractiveness in other elements, such as ease of business, administrative speed, human resources, potential partners, accessible finance, and more.

As shown in last year’s survey by JETRO, when asked about the attractiveness of Vietnam’s investment environment, the top reply was “future growth potential of the market” at 74 per cent, and second was “current market size” at 46 per cent. Around one-quarter of respondents cited “preferential tax treatment,” but it ranked ninth among the replies.

On the other hand, in terms of risk, 60-70 per cent of ASEAN countries cited inefficiency in administrative procedures and tax systems. Low tax rates and business costs are preferable, while incentives are necessary but meaningful if the procedures are simple and transparent, the report said.

Vietnam now has an average corporate tax rate of 20 per cent, alongside its closest neighbours. Among ASEAN countries, the lowest is Singapore, at 17 per cent. Malaysia is 17-24 per cent, Indonesia 22 per cent, and the Philippines 25 per cent. In the case of Vietnam, companies benefit significantly from preferential tax treatment: 10-17 per cent preferential; tax exemption for four years of immunity; and nine years of a 50 per cent reduction, which many Japanese companies use.

Countries in the region are making their first announcements about GMT implementation, and many are urging Vietnam to soon have specific moves.

Laptop market anticipates rosy season ahead

The laptop market is expecting a vibrant outlook in the second half of the year, especially as the new school year begins in Q3.
On June 19, FPT Shop – the retail arm of the tech giant FPT Corporation – and Dell Technologies Vietnam inked a strategic cooperative agreement in preparation for the new school year, when the demand for laptops often reaches its peak.

The move aims to provide customers with more choices in terms of quality and price.

Nguyen Viet Anh, deputy CEO of the FPT Shop chain, noted that they aim to provide nearly 200,000 laptops to pupils and students with lucrative incentives, including discounts, gifts, one-year warranties, and payment via interest-free instalments.

This major retailer has opened 150 outlets across Vietnam, buoyed by a wide assortment of laptops with exclusive offerings that cater to each customer group.

Nguyen The Kha, senior director of Mobility Groups at FPT Shop, revealed that the new school year is often the golden growth time for laptops thanks to the spike in the demand from fresh students.

Vu Van Truc, director of Retail and Distribution at Dell Technologies Vietnam, believes that the Vietnamese market still offers space for development. Therefore, Dell will focus on promoting the laptop gaming segment to meet the burgeoning market demands while also seeking new partners.

The turbulence in the macroeconomy has forced consumers to cut their spending, particularly on more pricey items.
After two years of hot-paced development from 2020 to 2021 serving those working from home, the sales revenue of PC items saw a plunge from the second half of last year.

Figures from leading computer retailers show that in Q4 of last year, the market’s scale fell by a half on-year.

The purchasing continued to slide in Q1 of this year, with significant amounts of unsold stock despite attractive promotion programmes.

Digiworld Corporation admitted that the company’s laptop and tablet revenue fell to just $47.5 million in Q1 of this year, taking a 51 per cent dive on-year.

The declining revenue from the sale of PC items is attributable to the fact that purchase of such items peaked in Q4/2021 and Q1/2022, but the market then became saturated.

In addition, the turbulence in the macroeconomy has forced consumers to cut their spending, particularly on more pricey items.

A report on ICT wholesaling by Bao Viet Securities JSC shows that the sales revenue from laptops is expected to experience a 13 per cent drop, falling to around $67.7 million, and that of handsets is likely to be down 6.9 per cent to $4.75 billion in 2023 compared to the previous year.

However, the market demand is expected to fully reboot by 2024-2025.

Small but promising EV market on rise

A number of electric car manufacturers in Vietnam plan to launch mini models, with the world increasingly interested in and strongly committed to reducing emissions.
 
After signing a strategic cooperation agreement with the joint venture of General Motors and SAIC-Wuling on the manufacturing, assembling, and exclusive distribution of electric vehicles (EVs) in Vietnam, Hoang Minh Dong, director of TMT Motor, said the company would officially launch two versions of the Wuling HongGuang Mini EV and announce its sales policy on June 29-30 in Hanoi and Ho Chi Minh City.

The Wuling HongGuang Mini EV includes a standard and fully enhanced version. Each version will have the option of a battery capacity of 9.6kWh or 13.4kWh, for a maximum travel distance of 120 km and 170 km, respectively.

TMT Motor stated it has the sole authorisation to manufacture, assemble, and distribute the EV models in Vietnam, and that Wuling would support its production by providing auto parts to ensure quality and delivery. Because of its tiny size, elegant design, and flexible space with four seats, the Mini EV will be a new option within the lower price range of many Vietnamese clients.

According to Dong, the selling price will give people with average incomes of about $650 per month the chance to access the cars. “The reason for choosing this mini EV model comes from the fact that TMT Motor found that this EV belongs to a segment the market is lacking, and will meet the needs of customers with a stable design and reliable quality,” he said, adding that the model is a bestseller in China.

Chinese car manufacturers will soon land in the Vietnamese market with many mini EV models. The Chinese EV manufacturer Zhidou displayed the A01 model at the Autotech & Accessories 2023 exhibition in Ho Chi Minh City. This is a small EV model, introduced specifically for moving in the inner city.

Zhidou said it would enter into a joint venture with a domestic partner to assemble this model. The Zhidou A01 model will go on sale in Vietnam in the next three months.

Meanwhile, at Vingroup’s annual general shareholders’ meeting, billionaire Pham Nhat Vuong revealed a new direction for VinFast, which is to expand and develop A-class mini EVs.

More coal supply secured for thermal power stations

Major coal suppliers in Vietnam have announced plans to increase their coal supply for thermal power stations this year.

The Vietnam National Coal and Mineral Industries Group (Vinacomin) and the Dong Bac Corporation are set to supply a combined 48.35 million tons of coal to coal-fired power plants, up 10-15% compared to 2022.

Vinacomin has already supplied nearly 21 million tons of coal to thermal power plants in the first six months of this year, marking a 15% increase compared to the same period last year.

To meet the growing demand, Vinacomin plans to deliver an additional 10,000 tons of coal to each of Vietnam Electricity Group’s (EVN) coal-fired power plants in June and July, surpassing the contracted amount with a total transport volume of 1.2 million tons.

Similarly, Dong Bac Corporation has urged its member companies to enhance their coal supply to the electricity sector. In the first half of this year, Dong Bac supplied 5.7 million tons of coal to power stations, reaching 57% of the contract volume.

The company estimates that it will deliver 8.65 million tons of coal this year, exceeding the contracted amount by 800,000 tons.

The recent heatwaves in Vietnam have led to a surge in electricity consumption, reaching record highs in recent weeks.

Thermal power plants consumed 21 million tons of coal in the first half of this year, representing 54.5% of the contract volume. It is projected that coal consumption will reach 39.7 million tons this year, a 15% year-on-year increase.

The El Nino phenomenon has caused heatwaves, drought, and water shortages in many parts of the country, which has impacted the operations of hydropower plants and increased reliance on coal-fired power plants.

The Ministry of Industry and Trade has warned that northern provinces may experience a daily shortage of between 30 and 50 million kWh, leading to power outages throughout the region.

Banks boost digital transformation and cybersecurity

A recent survey conducted by Vietnam Report has found that all banks in question are committed to implementing digital banking and increasing their budgets for digital transformation and cybersecurity this year.

The survey, conducted during the first half of this year, involved most of the members of the commercial banking system nationwide.

When it comes to increasing budgets for digital transformation and cybersecurity in 2023, nearly 43% of the banks responded that they plan to increase their budget by 6-10%. Over 28% of banks are planning to expand their budget by 15% or above. The remaining banks will allocate under 5% of their budget to the security program.

The survey also indicated that cloud computing is the technology that gained the most popularity among banks, scoring 4.4 out of 5 points. Other types of technologies such as multichannel integration, identity management, customer experience control, smart automation, and fraud management and prevention also ranked high.

According to Vietnam Report, digital transformation enables banks to collect information for analysis, build algorithms for decision-making related to lending, evaluation, risk measurement, and customer experience enhancement. With digital solutions, banks can leverage advanced technologies like artificial intelligence and blockchain to diversify customer experiences and financial products in the future.

In terms of customer satisfaction, 85.8% of respondents, who are clients, admitted to using mobile banking services every day, a 58.1% increase compared to last year.

As of 2022, the banking sector has invested over VND15,000 billion in digitalization. Digital payments in Vietnam have gained consistent growth of 40% in recent years.

Fertilizer exports decline steeply in Jan-May
 
Vietnam’s fertilizer exports slid significantly from January to May, according to the General Department of Vietnam Customs.

In May, Vietnam exported nearly 155,000 tons of fertilizer worth US$56.9 million, up 17.5% in volume and value compared to April. However, fertilizer exports dropped 16.9% in volume and 35.2% in revenue compared to the same period last year.

From January to May, Vietnam shipped over 692,000 tons of fertilizer abroad, resulting in US$289 million in revenue, an 8.9% decrease in volume and a staggering 42.2% decrease in value. Among the total exports, the Southeast Asian market accounted for 340,000 tons and US$143.6 million, declining 14.5% in volume and 37.6% in value.

The nation also saw a reduction in orders from its main fertilizer buyer, Cambodia. In the five-month period, Vietnam exported nearly 228,000 tons of fertilizer worth US$95.5 million to Cambodia, an 8% increase in volume but a 19.2% decrease in value compared to the same period in 2022.

During this period, fertilizer exports to South Korea and Malaysia dropped by 62% and 59.8%, respectively. Fertilizer shipments to the markets under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership also slumped 63.5% in value and 47.9% in volume, with over 48,000 tons worth US$16.6 million.

Around 391,000 tons of fertilizer valued at US$162.6 million was delivered to countries under the Regional Comprehensive Economic Partnership, a 16.2% decrease in volume and a 42.8% decrease in value.

Moreover, fertilizer prices plunged 25.1% to 54% in these markets.

Vietnam’s exports to Canada decline

Vietnam’s exports to Canada were put at US$2.2 billion in the first five months of this year, falling by 15% compared to the same period last year.

Shipments of various key products, including garments, footwear, wooden products and steel to Canada edged down.

In particular, garments brought in US$459.3 million between January and May, a 10.7% year-on-year rise. Wooden products generated US$76 million in revenue, down 32% year-on-year, while footwear dropped 15.5% to US$198 million.

However, there are positive signs in the export of certain products. Cellphones and cellphone parts, and computers and electronics experienced a slight growth rate of 3.3% and 7.4%, respectively.

The most impressive increase was observed in the export of transport vehicles and spare parts, which saw a 44.7% uptick, amounting to US$188 million.

Experts suggest that the decline in Vietnam’s exports to Canada in the first half of this year may be attributed to the ongoing global economic downturn.

Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into force in early 2019, trade between Vietnam and Canada has been on the rise. In 2021, two-way trade between the two countries reached a record high of roughly US$9 billion, a 12% increase against the year earlier.

Can Gio transshipment port expected to generate VND40 trillion annually

The Can Gio international transshipment port project in Can Gio District, HCMC is expected to contribute annual revenue of VND34 trillion to VND40 trillion to the State budget, according to the HCMC Department of Transport.

The estimate is part of a study conducted for the Can Gio port project, which was recently submitted to the HCMC People’s Committee for consideration.

The Can Gio would stretch over seven kilometers on Con Cho Island, at the mouth of the Cai Mep River.

Once fully operational, the port would be able to handle container vessels of up to 250,000 DWT on routes connecting Asia with Europe, Africa and the Americas.

The project is divided into seven phases, with the first set to be completed by 2027 and the entire project expected to be done by the end of 2045. It would require a total of US$5.45 billion.

Private businesses can get involved in the port project and its infrastructure, facilities, and logistics facilities. Meanwhile, the transportation and technical infrastructure connecting the port will be funded by the State budget, public-private partnership (PPP), and other sources.

The development of the international transshipment port in Can Gio from 2021 to 2030 is vital in supporting the city’s seaport system, enhancing the country’s competitiveness in the region, and making a breakthrough in the maritime economy.

According to the study, the port is expected to attract significant investments from various businesses and create job opportunities for 6,000-8,000 employees, as well as tens of thousands of individuals working in ports and logistics centers.

MSC Group, a global leader in container shipping, has expressed interest in the port project in Can Gio.

SBV asks Eximbank to ward off interest groups

The inspection and supervision body under the State Bank of Vietnam (SBV) has requested to Eximbank to exercise caution and integrity in its management and operations to ward off interest groups.

In document No. 2666 sent to Eximbank, the inspection and supervision body urged the board chairman and members to strictly adhere to the Law on Credit Institutions, relevant laws, and Eximbank’s Charter in a cautious and honest manner for the benefit of the bank and its shareholders.

On June 21, 2023, the Board of Directors (BOD) of Eximbank held an extraordinary meeting with an aim to dismiss the board chairman and the general director of the bank and elect new leadership. However, the meeting could not proceed due to the absence of two out of five members of the BOD, which did not meet the legal requirements for conducting a meeting.

The second extraordinary meeting of the BOD is scheduled to take place on June 28, 2023, provided that all conditions are met.

A central bank representative stated that the central bank’s examination body is closely supervising the case of Eximbank. Under the current regulations, the positions of board chairman, board members, and general director require prior approval from the SBV.

Before electing or replacing these positions, commercial banks are required to notify the SBV in advance to obtain feedback, added the representative.

Since October last year, there have been multiple changes in the major shareholder structure of Eximbank. In the recent document sent to Eximbank, Deputy Chief of Bank Inspection and Supervision Le Quang Huy emphasized that the board chairman and members of the board need to take full responsibility under the law and before the SBV Governor for the management and operations of the bank.

The incident involving Saigon Joint Stock Commercial Bank (SCB) highlighted the need for the consolidation of the Vietnamese banking system. The SBV’s strict supervision of Eximbank underscores the importance of preventing and addressing issues in a timely manner to ensure the safety of the entire banking system and financial market.

Hydroelectric reservoirs above extremely low levels

Water levels of hydroelectric reservoirs in northern Vietnam have improved, backed by sustainable water flows, reported the local media.

On June 27, all hydropower plants in the north, including Tuyen Quang, Son La, Lai Chau, and Hoa Binh, reported their reservoirs ranging from eight to 22 meters above the extremely low levels, a double increase compared to mid-June.

Other hydropower plants like Thac Ba, Huoi Quang, Ban Ve and Quang Tri recorded water levels exceeding the dead water levels by 1.2 to 1.6 meters.

According to the Power Management Department under the Ministry of Industry and Trade, the increased water volume in the northern hydropower plants has enabled large reservoirs to store more water. However, some medium and small-sized reservoirs have had to regulate water flows to prevent flooding.

A few days ago, Lai Chau and Tuyen Quang hydropower plants resumed electricity generation after a suspension for water storage. Meanwhile, the Thac Ba hydropower plant could only produce power at a moderate level as its reservoir water level is only 1.3 meters higher than the dead level.

Hydrological forecasts indicate a slight decrease in water flows into reservoirs in the northern and south-central regions on June 28. However, other hydropower reservoirs in the north-central region, the Central Highlands, and the southeastern region are experiencing rising water volume.

“The flooding season is arriving earlier than usual in the north. As a result, water levels in hydropower reservoirs in the region have continued to rise, allowing them to generate a total of 421 to 425 kWh per day,” said the Power Management Department.

In case, there is no flooding in soon, the northern hydropower plants can utilize the remaining reservoir water volume and natural water flows to generate electricity, ensuring a stable power supply for households and businesses, added the department.

Since the end of May, Hanoi City and many other northern provinces have experienced power outages due to surging electricity demand during the hot weather. The power generated by hydropower plants, one of the main sources of power in northern Vietnam, significantly declined due to prolonged drought. Additionally, around 2,100 MW of electricity capacity provided by thermal power plants could not be mobilized due to technical issues faced by power generators.

Poor infrastructure for storage leads to post-harvest loss

According to the Vietnam Fruit and Vegetable Association, poor infrastructure for storage leads to post-harvest losses.

The Vietnam Fruit and Vegetable Association announced in the first six months of 2023, fruit and vegetable exports yeilded nearly US$2.749 billion, up 63.6 percent against the same period last year.

As per the main fruit development plan for 2025, Vietnam will reap 12 million tons of fruits of various varieties, and exports will reach $5 billion; moreover, the country’s fruit output will be 14 million tons in 2030, with export revenue of $6.6 billion.

However, the current infrastructure for storage is inadequate, leading to post-harvest losses of up to 30 percent to -35 percent, said the association. In particular, logistics costs account for 30 percent of products which affected Vietnamese fruits’ export competitiveness.

Specifically, the cost of air transportation of fruit is too high while the costs of waterborne transport and road transport are lower, but it takes a long time, so fruits will get old and lose freshness.

HCMC to nurture hi-tech start-ups amongst young entrepreneurs

Ho Chi Minh City will nurture hi-tech start-ups of young entrepreneurs as the city has more than 60,000 hectares of agricultural land, but the area converted to high-tech agriculture is less than one percent.

According to the HCMC Department of Agriculture and Rural Development, the southern metropolis currently has about 4,300 agriculture enterprises, accounting for one percent of the total number of enterprises in the city. The production value of agricultural products is only one fifth of the value of other industries.

Accordingly, the city has more than 60,000 hectares of agricultural land, but the area converted to high-tech agriculture is less than one percent.

According to the plan, by 2030, the city will convert agricultural land to high-tech production by up to 10 percent.

To encourage entrepreneurial spirit amongst young people, the Department of Agriculture and Rural Development has coordinated with the Department of Science and Technology of Ho Chi Minh City, the Business Startup Support Center of the Ho Chi Minh City Youth Union, people's committees in districts to nurture high-tech agricultural startups among young people.

Regarding capital sources, the Department of Agriculture and Rural Development is submitting a draft amendment to the policy to support loan interest in high-tech agriculture and to build net houses and greenhouses on agricultural land.

In addition, the Department of Science and Technology and the Business Startup Support Center of the Ho Chi Minh City Youth Union also have policies to support innovative start-ups in high-tech agriculture.

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