Shrimp experts and businesses gathered at the Shrimp Summit 2023 in Ho Chi Minh City on July 25 to seek measures to tackle challenges facing the shrimp sector in Asia and the globe, ensuring the sustainability and climate change resilience of the sector.

Addressing the event, Deputy Minister of Agriculture and Rural Development (MARD) Phung Duc Tien said that Vietnam has high potential in aquatic farming, especially brackish water shrimp farming.

He noted that the shrimp industry has played an important role in Vietnam's seafood exports during the past two decades. Each year, the shrimp industry contributes about 40-45% of the total seafood export value, equivalent to 3.5-4.3 billion USD. Currently, Vietnamese shrimps have been exported to 100 countries, with the five largest markets being Europe, the US, Japan, China and the Republic of Korea.

To date, about 200 shrimp processing factories in Vietnam have been examined and approved by the European Commission, he said, adding that Vietnam has been the second largest shrimp supplier, providing 13-14% of the total shrimp exports in the world.

Tien said that the Vietnamese shrimp sector has maintained stable export growth at nearly 7% over the past 20 years.

However, it is facing numerous challenges, mostly from COVID-19 pandemic’s impacts and market fluctuations, especially since 2022, he said, underlining that the Government has issued many programmes and projects to boost the sector’s sustainable growth, contributing to the global shrimp sector.

Tien said that during the summit, scientists, experts and businesses focused their discussions on the industry's important issues, giving forecast on production, market demand, updating standards for shrimp products and innovation in farming techniques.

Nguyen Viet Thang, Chairman of the Vietnam Fisheries Society said that currently, the fisheries sector is employing more than 5 million labourers, including more than 1 million in the shrimp sector.

He highlighted contributions that the shrimp sector has made to the country’s economic development as well as major challenges it is encountering.

Thang said that he hopes though the summit, international experts and buyers will share with their domestic peer advanced technologies in varieties production, environmental protection, disease management, and water management, as well as the market demands and cooperation opportunities in shrimp trading.

Le Van Quang, General Director of the Minh Phu Fisheries Group said that Vietnam currently has more than 700,000 hectares of shrimp farm, able to meeting the various demand of more than 100 countries. Vietnam has developed ecological and organic shrimp farming models with high value, meeting sustainability standards.

Within the framework of the summit, participants visited a number of farm production and processing facilities in the Mekong Delta province of Ca Mau.

First batch of Hoa Binh's turmeric starch, pink lemon in honey exported to UK

The first batch of two One Commune One Product (OCOP) products - turmeric starch and pink-fleshed Eureka lemon in honey - from the northern province of Hoa Binh, was exported to the UK on July 25.

The batch concludes 60 boxes of turmeric starch produced by the Nhung Van Co. Ltd in the Lac Son district and pink-fleshed Eureka lemon in honey by the Ha Phong Cooperative in the Cao Phong district exported to the UK by the R.Y.B JSC. Each box contains 1,080 jars and each jar weighs 200-500 grams.

Speaking at the ceremony, Vice Chairman of the provincial People’s Committee Dinh Cong Su said that the export of the two OCOP items proved the potential and advantages of the province’s agricultural products to meet consumers’ tastes, even those in choosy markets.

He said that in the coming time, the province’s agricultural sector and localities will continue to strengthen directing the production, and development of raw material areas. Local authorities will support the certification of food safety for the raw material areas and support manufacturers to improve product quality, packaging design, traceability stamps, and participate in trade promotion programmes.

Many agricultural products of the province have been exported to countries such as frozen white and purple sugarcane to the US, Canada, the Republic of Korea, and Japan; bananas to China and processed bamboo shoots to Europe and Japan.

Tokyo event connects Japanese investors with Vietnamese localities, enterprises

A conference took place in Tokyo on July 25 to connect Japanese investors with Vietnamese localities, industrial parks, and enterprises.

The event, part of activities marking the 50th anniversary of the two countries’ diplomatic ties, attracted a large number of investors and businesses from both countries.

It was organised by the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, the ASEAN - Japan Centre (AJC), the Vietnamese Trade Office in Japan, the Japan External Trade Organisation (JETRO), and the provinces of Hau Giang, Bac Kan and Lai Chau and Da Nang city of Vietnam

Vietrade Director Vu Ba Phu said that via the conference, representatives of localities, industrial parks, and enterprises of Vietnam could directly meet Japanese investors to look into the demand and situation of Japanese investment in the country and discuss measures for enhancing investment ties.

In particular, officials of Hau Giang, Bac Kan, Lai Chau, and Da Nang had chances to provide details about investment and business climate in their localities, along with their policies for tackling difficulties facing enterprises and recovering production and business activities after the COVID-19 pandemic, he added.

AJC Secretary General Kunihiko Hirabayashi said AJC last year submitted a medium-term strategic plan until 2025 aimed at responding to big changes in the international and regional situations. The plan includes promoting and diversifying investment such as direct investments that are sustainable and have positive socio-economic impacts from Japan to ASEAN countries, especially Vietnam.

AJC attaches special importance to investments promoting green growth and circular economy, and will expand trade and investment cooperation activities between Japan and ASEAN more comprehensively, he went on.

Since the diplomatic relationship was established in 1973, Japan has always been one of the leading partners of Vietnam.

As of June 20, it had 5,116 valid projects worth over 69.9 billion USD in Vietnam. It is also the biggest supplier of official development assistance (ODA) for the Southeast Asian country, with about 30 billion USD.

The Northeast Asian country was the fifth largest importer of Vietnamese goods in the first half of 2023, with 11 billion USD in value, statistics show.

Bac Giang approves five industrial zones spanning 1,100ha

Bac Giang Province's People Committee has just approved the planning project for five industrial zones spanning over 1,100 hectares.

These are all multi-industry industrial zones designed to attract investors using high technology and environmentally friendly initiatives.

They include Đức Giang Industrial Park covering 287.5 hectares, Hòa Phú Industrial Park (Phase 2) with 222 hectares, Nghĩa Hưng Industrial Park with 151.8 hectares, Tiên Sơn - Ninh Sơn Industrial Park 223 hectares and Xuân Cẩm-Hương Lâm Industrial Park with a total area of 224 hectares.

Overall, the approval of these industrial zones is part of the province's broader plan to develop its industrial infrastructure. Last year, the Prime Minister granted permission for 29 industrial parks covering 7,000 hectares during 2021-30 for Bắc Giang, with eight parks already established over 2,000 hectares.

Recently, many global corporations have chosen Bắc Giang for long-term production, such as Foxconn, Fukang Technology and Ingrasys (Singapore). 

The province’s Gross Regional Domestic Product (GRDP) grew at an impressive rate of 10.94 per cent in the first half, ranking second nationwide, and experiencing growth across all manufacturing sectors. 

SSI profit reaches $27.5 million in Q2

SSI Securities Corporation reported revenues of nearly VNĐ1.6 trillion (US$67.9 million), and profit before tax of VNĐ656 billion ($27.5 million) for the second quarter compared to VNĐ518 billion from a year earlier.

Its revenues from securities services (including brokerage, investment consulting, custody, and margin lending) were nearly VNĐ711 billion ($32.6 million).

SSI was the second largest player on the Ho Chi Minh Stock Exchange with a brokerage market share in stocks, fund certificates and covered warrants of 10.22 per cent.

Revenues from proprietary investment were worth VNĐ696 billion, or 43.5 per cent of total income.

Half-yearly revenues and profits were estimated at VNĐ3.18 trillion ($134.9 million) and VNĐ1.3 trillion ($55.1 million), both on track to meet the year’s targets.

As of June 30 the company had assets of nearly VNĐ49.5 trillion ($2.09 billion).

Việt Nam's economy showed signs of recovery in the second quarter as did the stock market as domestic investors started to return.

The VN-Index gained 11.2 per cent, outperforming its peers in Southeast Asia and matching the MSCI Emerging Markets Index (+11.65 per cent).

Market liquidity improved with the cumulative average trading value in the first half on the three exchanges reaching VNĐ13.7 trillion ($580.9 million) per session. 

Viettel’s 5G trial successfully tested at Pegatron’s smart factory in Hai Phong

Viettel Group on Thursday announced the successful trial of its 5G Private Mobile Network (5G PMN) for the Pegatron smart factory in the northern port city of Hải Phòng.

This is the first smart factory in Việt Nam to operate automatically based on a 5G mobile service, bringing the advantages of high speed, low latency, and support for multiple connections.

In the first phase of cooperation, Viettel provides 5G private networks for applications including those in augmented reality for video calls; assembly stations; managing product testing activities and direct supervision of the production process.

It expects to provide 5G private networks by the end of 2023 for thousands of devices at Pegatron’s electronic equipment and components factory in Hải Phòng.

CY Feng, a section’s General Manager at Pegatron said that the application of 5G Private Mobile Networks to the production line was in line with new trends.

Pegatron deployed this technology into the production line in Việt Nam to improve the factory’s efficiency towards a modern and professional process. Viettel was a strategic partner of Pegatron and their technology could meet with requirements for a smart factory.

5G PMN is a dedicated mobile network that provides connecting mobile services for organisations and individuals that need to use specialised devices or machines that need real-time connectivity. This is the world’s new trend with an expected annual growth rate of 51.2 per cent from 2023 to 2030.

Preferential policy improvements needed to attract quality FDI

In order to attract quality foreign direct investment (FDI) in the coming time, the improvement of institutions to attract foreign investment was done at the drop of a hat in the context of the global minimum tax application.

As of June 20, the total newly registered capital, adjusted capital and contributed money to buy shares by foreign investors reached over US$13.43 billion, equaling 95.7 percent over the same period in 2022.

The improvement of institutions, especially the review and modification of preferential policies and mechanisms, to attract foreign investment should be carried out to attract quality foreign direct investment in the coming time.

According to the General Statistics Office, the economy declined by 4.3 percent showing clearly the general difficulties of the world economy as well as of Vietnam in the face of many risks and fluctuations in 2022. Worse, this trend was forecast to continue extending in 2023.

Developed countries’ outward direct investment showed signs of slowdown even though the Covid-19 pandemic has been brought under control. This is the subsequent result of adverse factors such as the complicated and unpredictable world context and existing political conflicts in some nations. Moreover, although price pressure and inflation showed signs of cooling down, they still remained at a high level and global commodity demand tends to decrease without recovery signs.

In addition, global financial conditions tend to tighten, strongly affecting international business, trade, and investment, which are negatively affecting the investment partners of Vietnam.

However, though the total registered FDI capital in the first 6 months of 2023 dipped by 4.3 percent over the same period, this decrease has improved compared to the same period in 2022, which saw a decrease of 8.1 percent. Newly granted investment capital accounting for 48.3 percent of total registered capital increased by 31.3 percent in cash and 71.9 percent in the number of projects. Meanwhile, foreign investors’ capital for buying shares accounted for 29.9 percent of total registered capital, which increased by 79 percent, and registered capital, accounting for 21.8 percent of total registered capital, dropped by 57.1 percent.

Remarkably, in the past 6 months, small and medium-sized investors have continued to eye Vietnam for opportunities and trust in Vietnam's investment environment to make new investment decisions while large corporations still seem to carefully consider the impact of the global minimum tax policy effective from 2024.

Foreign investors' capital contribution and share purchase in Ho Chi Minh City in the first six months of 2023 increased by 3.6 times over the same period, bringing the total foreign investment capital from the beginning of the year to June 20 to reach $2.8 billion, up 30.7 percent against the same period last year.

In addition to traditional solutions such as administrative reform, effectively implementing one-stop procedures and quality improvement of human resources, more solutions should be adopted to attract big investors and multinational corporations. In particular, relevant agencies should pay attention to meeting their requirements on time for negotiation, signing of agreements and implementation.

In addition to preferential policies for strategic investors, a global production chain and high-tech enterprises with technology transfer to domestic enterprises also need to be clearer and more substantial, especially in Ho Chi Minh City, which has no more clean land. These policies should not be fixed and rigid but need a certain margin to promptly adapt to the current volatile situation.

Vietnam International Sourcing 2023 attracts Belgian companies

A delegation of about 50 Belgian entrepreneurs is expected to come to Vietnam to seek partners and attend Vietnam International Sourcing 2023, to be held in Ho Chi Minh City from September 13 to 15, said the Vietnamese Trade Office in Belgium and the EU.

The office noted that the entrepreneurs will represent their businesses from the region of Flanders that operates in various sectors, from farm produce, machinery, construction materials to real estate and logistics services.

In particular, some have expressed their wish to be further connected with Vietnamese companies in such industries as confectionery and chocolate production, fruit, insulation film and outdoor product manufacturing via Vietnam International Sourcing 2023.

The First Vice President of the Belgian Senate, who is also head of the Belgian - Vietnamese Alliance (which promotes bilateral cooperation in all fields, especially economy), is scheduled to deliver a speech at the Vietnam - EU trade forum as part of Vietnam International Sourcing 2023.

With bilateral ties increasingly reinforced in multiple areas over the last 50 years, more and more Belgium enterprises have been paying attention to and seeking business chances in Vietnam.

Since the start of 2023, many major firms like John Cockerill, IPEI, and DEME have visited Vietnam to explore investment opportunities, a move to help carry out the outcomes of Prime Minister Pham Minh Chinh’s visit to Belgium in late 2022. The regions of Flanders and Wallonie are also planning to send business delegations to the Southeast Asian country in the last four months of 2023, according to the trade office.

Vietnam International Sourcing 2023 is a series of events aiming to help with domestic enterprises’ efforts to further engage in global production and supply chains, adapt to the growing trend of international economic integration, and boost connectivity with foreign distribution channels and importers.

It features conferences, workshops, business-matching events, Vietnam International Sourcing Expo 2023, and fringe activities help companies improve their capacity and sustainability.

This year’s event attracts unprecedented attention of large enterprises from around the world, said the European - American Market Department of the Ministry of Industry and Trade.

Work to begin on Dong Hoi airport’s Terminal T2 next year

Construction of Terminal T2 at Dong Hoi Airport in the north-central province of Quang Binh is scheduled to commence in the third quarter of next year, according to the Ministry of Transport.

The Airports Corporation of Vietnam will make the necessary preparations to ensure funding for the project and keep it on schedule, the ministry said in a statement.

The VND1,900-billion project also includes upgrading aircraft aprons at the airport.

The 16,800-square-meter passenger terminal is designed to handle three million people annually and expected to be operational by March 2026.

In the first phase, four aprons would be built to accommodate planes such as Airbus A321 and A320, with an additional four aprons to be developed in the second phase.

According to the national aviation development plan, Dong Hoi Airport is projected to have an annual handling capacity of up to five million passengers by 2050.

VND120 trillion housing package sees progress

Banks have started disbursing loans in the VND120 trillion credit support package for social housing projects, said Nguyen Thi Hong, governor of the State Bank of Vietnam (SBV).

At a meeting on July 4 between the central Government and local authorities, Hong said that projects that have obtained construction permits are eligible to borrow from this package. Banks such as BIDV and Agribank have already started utilizing this preferential loan package since the start of the year.

There were 24 eligible social housing projects in the provinces of Bac Giang, Tra Vinh, Tay Ninh, Binh Dinh, Ba Ria-Vung Tau, and Phu Tho, with five of them already granted construction permits.

The VND120 trillion credit package, introduced in early April, aims to encourage investors to develop social housing projects and support workers in purchasing a home. Loans under the package are offered at interest rates that are 1.5-2 percentage points lower than the prevailing market rates for medium and long-term loans.

However, despite the availability of this credit package, the Ministry of Construction reported that no projects qualified for loans in the first half of this year. This was because the localities were still in the process of finalizing and announcing eligible projects. Moreover, most of the projects were still undergoing the necessary investment procedures.

During the conference, the central bank governor said credit to the real estate sector in May grew 14% against early this year.

However, real estate loans for individuals in the first five months dropped by 1.3%, compared to a 15% increase during the same period last year. This suggests that individual real estate investors and homebuyers remain hesitant to invest.

Governor Hong emphasized the need for legal reforms, price reductions and other measures to stimulate consumer demand and investment in the real estate sector.

Interest rates have now returned to pre-Covid-19 levels after continuous efforts to reduce them, making the SBV stand out as one of the few central banks in the world that have lowered key interest rates, she said, adding many other countries have maintained high rates.

Moreover, commercial banks have been directed to review procedures and documentation to facilitate credit access for businesses. Banks have already restructured the repayment terms for 2,800 customers.

Fruit and veggie exports expected to reach US$5 billion this year

Vietnam’s fruit and vegetable export target by 2025 is US$5 billion. However, this goal may be achieved as early as this year if the current export pace is maintained, said Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association (Vinafruit).

In June, fruit and vegetable exports generated US$1 billion, up a staggering 2.7 times over the same period last year, said Vinafruit. The total value of January-June exports amounted to US$3 billion, equivalent to 94.9% of the total in 2022.

China continues to be the leading market for Vietnam’s fruit and vegetable exporters, with a market share of nearly 63.5% and a growth rate of over 12.4% year-on-year. From January to May, fruit and veggie exports to China skirted US$1.3 billion.

China is followed by South Korea, Japan, and the Netherlands, which all show promising growth. However, exports of fruits and vegetables to the U.S. have inched down by 12% versus the same period last year.

Exporters attributed the significant growth in fruit and vegetable exports to the stronger demand of China, facilitated by an agreement signed with the neighboring country last year. Despite China’s strict technical and food safety regulations, Vietnamese products are gaining popularity due to their improving quality and competitive prices.

Many types of Vietnamese fruits are entering the harvest season. With a staggered harvesting pattern, there is still significant potential for fruit and vegetable exports this year, said Nguyen Dinh Tung, vice chairman of Vinafruit.

Dragon fruit, mango, rambutan, durian, and longan account for over 62% of the total harvested area, with the production of these fruits contributing to over 54% of the total output.

Among the exported fruit varieties, durian has demonstrated the highest growth rate. In the first five months of 2023, durian exports generated over US$503 million, up 18-fold over the same period last year. The Chinese market is the primary destination for durian from Vietnam, accounting for 84.3% of the total export value of durian.

This robust rise is attributable to the memorandum of understanding signed in July last year between Vietnam and China regarding phytosanitary requirements for durian exports from Vietnam to the Chinese market.

To further boost fruit and vegetable exports to the Chinese market, Vietnam has proposed that China facilitate shipments of other fruits and vegetables, such as pomelo, fresh coconut, avocado, lime, pineapple, and starapple.

The estimated export value of processed fruit and vegetable products totaled US$550 million in the first six months of 2023, a 24% year-on-year rise. This segment has consistently maintained a positive growth trajectory and holds huge potential for growth due to the increasing global demand for processed fruits and vegetables in people’s diets.

Fruit and vegetable exports are forecasted to sustain high growth in the coming months, driven by increasing domestic production and demand from global markets.

Cloud use intensifies within business arena

Cloud adoption in Vietnam’s business landscape is expected to revolutionise financial reporting by streamlining workflows, enhancing efficiency, and ensuring accuracy through automation, data consolidation, and seamless integration.

Tran Thi Nham, chief accountant from Kim Tin Corporation, a firm specialising in welding equipment, has experienced substantial time savings and increased accuracy by leveraging cloud-based consolidated financial statement solutions. She told VIR, “With the adoption of cloud services, we can now swiftly generate reports, including cash flow statements, without the need for manual data extraction and consolidation.”

The automation streamlines the process and facilitates seamless collaboration, even with renowned firms, minimising the need for extensive adjustments during the reporting phase.

Pham Duy Hoang Nam, CFO of FPT Retail, said that the company’s financial reporting process previously required a team of at least three individuals working continuously.

The implementation of a cloud-based system automated various tasks, saving valuable time and reducing the risk of errors. With financial data securely stored within the cloud, businesses could benefit from improved accuracy and data integrity. The automated processes streamlined their reporting workflows, leading to significant time savings and increased productivity.

Le Hong Viet, CEO of FPT Smart Cloud, underscored the importance of cloud-based service providers in offering seamless integration capabilities with various accounting software and leveraging multiple cloud platforms, including Oracle, Fast Accounting, or Misa.

This integrated approach plays a crucial role in enabling businesses to effectively automate their financial processes, ensuring a smooth and continuous flow of data and facilitating consolidated reporting. By consolidating data from diverse sources onto a unified cloud platform, businesses can access comprehensive financial insights efficiently, leading to more informed decision-making.

In line with the growing importance of sustainability in today’s business landscape, some cloud services providers could also integrate additional features that will assist companies in launching their sustainability reports and adopting environmental, social, and governance criteria.

However, he stated, as more organisations recognise the advantages of cloud services in terms of automation, data consolidation, and improved reporting accuracy, it is expected that the number of listed companies leveraging cloud services for financial statement integration will gradually increase in the future.

Nam of FPT Retail acknowledged the complexity of handling data from various sources, particularly in the retail industry, such as point-of-sale systems and accounting systems.

He also underscored the importance of reflecting transaction fluctuations in the balance sheet, in addition to ensuring accurate account balances. Traditional accounting practices often focus on the latter while overlooking cash flow dynamics. Accurate representation of cash flow dynamics in financial reporting is crucial to align with accounting standards and facilitate effective cash flow management.

In addition, industry insiders also believed cloud services offer immense value to real estate companies with numerous projects and subsidiaries. These businesses, including those exposed to high tax risks, can benefit from cloud solutions that enhance financial management and streamline tax-related processes. By leveraging cloud services, companies can effectively navigate complex tax regulations and ensure efficient financial operations.

In Vietnam, the cloud market has been experiencing fast-paced growth, but it still lacks the robustness needed to match global standards. While Vietnam has been recognised for its innovative initiatives in the cloud sector and is on a trajectory of strong development, it ranks 53 out of 76 countries in the 2022 Cloud Ecosystem Index, according to German online platform Statista.

Lenders determined to meet financing needs of customers

In line with the government’s economic stimulus initiatives and to ensure market liquidity, a number of major financial institutions are implementing strategies to address the financing needs of businesses and individuals.

LPBank has witnessed remarkable results just 20 days after launching a short-term loan programme with attractive interest rates for business and individual customers. The programme offers business loans starting at 7.5 per cent per annum and personal loans starting at 8.5 per cent per annum.

The bank has reported a total of 514 out of 561 nationwide branches generating over $250 million in disbursed loans from an incentive package worth $333 million. These figures highlight the strong demand for credit in Vietnam’s economy. Similarly, MSB recently announced interest rate reductions to support personal loans. The bank has lowered interest rates by an additional 1 per cent per annum for existing individual customers until December 31. This marks the second interest rate adjustment made by MSB this year.

“Moreover, MSB has intensified efforts to attract new customers by offering competitive credit packages for various purposes, including business loans, flexible collateral loans, and real estate financing,” said Nguyen Thi My Hanh, deputy CEO of the bank. “MSB strives to optimise cost, provide timely capital infusion for business operations, fulfill expenditure requirements, and reinforce customer trust and loyalty through credit support programmes.”

The strategic moves by LPBank and MSB reflect their determination to stimulate economic growth and meet the financing needs of businesses and individuals. These initiatives come as part of broader efforts by the Vietnamese banking sector to support economic recovery and ensure adequate liquidity in the market.

Meanwhile, other major banks, including VPBank and MB Bank, have faced a depletion of their available credit limits due to heightened demand. The banks have requested an additional 10 per cent increase in their credit limits, aiming to allocate a total credit limit of 22 per cent for all of 2023.

The urgency to expand credit limits stems from the banks’ commitment to meeting the borrowing requirements of primarily short-term loans and export-import activities. The banks claim that the timely extension of credit limits will prevent any disruptions in lending operations, ensuring a continuous and uninterrupted flow of funds to the economy.

The government has played a crucial role in promoting a supportive economic environment. Last month, it announced its commitment to stability and growth, urging the State Bank of Vietnam (SBV) to determine the necessary and reasonable credit growth targets for 2023.

The SBV had been tasked with allocating credit limits and making public announcements by the end of June. The approach empowers credit institutions to expand lending operations throughout the remainder of the year, with a focus on real estate and production loans to invigorate the market and stimulate investment and business activities.

Nguyen Dinh Tung, CEO of OCB, acknowledged the unpredictable nature of the current market but adopted a positive outlook. He highlighted the recognition of challenges and the government’s call to increase credit limits, which reflects a supportive policy and a programme for overall economic development.

Yun Liu, an economist at HSBC, has acknowledged the challenging economic landscape but maintains a positive perspective. She points to encouraging signs, such as the gradual recovery of international tourism, with Vietnam welcoming nearly one million visitors in the past two months, about 70 per cent of the 2019 level in the same period.

With the resumption of direct flights between Vietnam and China and potential relaxation of visa restrictions, Vietnam is poised for a stronger recovery in the fourth quarter of 2023, bolstered by increasing tourism demand. Furthermore, the first half of June 2023 has witnessed an 8.2 per cent increase in the import value of goods by foreign-invested enterprises, signalling a recovery in export-import activities.

Korean lenders aspiring to become major market players

South Korean financial conglomerates are deepening their involvement in Vietnam through a series of strategic agreements in energy, banking system restructuring, and digital payments.

VinaCapital and South Korean firm GS Energy entered into an MoU with the Export-Import Bank of Korea (KEXIM) last week.

The agreement will expedite the financial progression of the Long An I and II liquefied natural gas power plant projects, representing a significant breakthrough for South Korean banking conglomerates in Vietnam.

The bilateral agreement is aimed at enabling thorough investigation of potential opportunities for KEXIM to extend financial aid and credit facilities to Long An Energy Group.

This joint venture is a brainchild of VinaCapital and GS Energy. Yoon Hee-seong, CEO of KEXIM, acknowledged the strategic significance of the power plants, vowing KEXIM’s unwavering support to South Korean businesses and engineering, procurement, and construction contractors engaged in the project.

Meanwhile, Vietnam’s Deputy Prime Minister Le Minh Khai welcomed representatives from major South Korean financial institutions, Industrial Bank of Korea (IBK) and Korea Development Bank (KDB), for talks regarding potential collaborations amid Vietnam’s banking system ovserhaul.

DPM Khai’s interaction with Kim Sung-tae and Kang Seoghoon, chairmen and CEOs of IBK and KDB respectively, underscored the pivotal role of foreign financial entities in reinforcing Vietnam’s banking sector restructuring.

Seoghoon extended his admiration for Vietnam and conveyed KDB’s aspirations to align with Vietnamese companies in high-tech innovations, digital transformation, and green energy initiatives.

“Furthermore, we plan to establish a KDB branch in Vietnam to aid Vietnamese enterprises in their global market expansion, catalysing job creation and economic growth,” he said.

Khai said that he appreciated the KDB’s successful operations as a government-owned development bank. He referred to the MoU inked between KDB and the Vietnamese Ministry of Finance.

The purpose behind these agreements is to share valuable knowledge and experience to aid the ministry in determining appropriate operational models for restructuring the Development Bank of Vietnam.

Current players in the Vietnamese financial market, such as IBK, are boosting their activities in the country. With branches operating in Hanoi and Ho Chi Minh City, and assets in Vietnam tallying up to $1.5 billion, IBK is offering loans to South Korean businesses in Vietnam, along with local partners. The bank also plans to establish a legal entity in Vietnam to cater to Vietnamese businesses, particularly small- and medium-sized enterprises.

As Vietnam’s financial landscape continues to evolve, foreign financial entities have been encouraged to participate in the restructuring process, particularly in reforming credit organisations and handling weaker banks.

This reformative initiative is not only advantageous for financial organisations seeking to establish a new commercial presence in Vietnam, but also brings opportunities for active participation from South Korean banking and financial institutions, DPM Khai said.

Other South Korean banking entities extending their footprint in Vietnam include Shinhan Bank and Woori Bank.

A collaboration of Samsung Vietnam and Shinhan Bank Vietnam, cemented in an MoU last month, is set to further accelerate the digital payment landscape. The alliance merges Samsung Wallet’s digital wallet technology with Shinhan’s financial services.

Lee Chung Lyong, general director of Samsung Vina Electronics, believes this synergy will shape a digital payment platform for the Vietnamese market.

In addition, the bank has also teamed up with Nguyen Hoang Group (NHG), a local educational group, to offer an interest-free tuition fee financing programme for parents whose children attend NHG-affiliated educational institutions.

The initiative also supports financial assistance and future credit facilities for infrastructure development as well as teaching equipment procurement within NHG’s educational network.

Woori Bank Vietnam, under its new CEO Park Jong Il, aspires to become a prominent player in the Vietnamese market.

Jong Il also stressed the need for a second leap forward, positioning Woori Bank Vietnam as a top retail business operator in Vietnam’s market while expanding localisation strategies targeting local customers through Vietnamese personnel.

Positive developments in the real estate market

The SBV has received 24 social housing initiative applications for a $5 billion loan package in six provinces, including 15 social housing projects in the provinces of Bac Giang, Tra Vinh, and Tay Ninh, and nine projects in the provinces of Binh Dinh, Phu Tho, and Ba Ria-Vung Tau.
 
The positive news was revealed by Nguyen Thi Hong, Governor of the SBV, during the government's online national conference.

Credit made available to real estate businesses rose by 14 per cent in the first five months of the year, according to the SBV, indicating that market-improving solutions have begun to take effect. However, credit for real estate purchasers dropped by 1.32 per cent during the same period.

Hong emphasised that easing access to credit is of vital importance. She stated that the SBV is directing credit institutions to evaluate their procedures to increase credit availability. In addition, the operator is contemplating an announcement of credit expansion soon, at the behest of the Prime Minister.

The governor stated that interest rates have returned to pre-pandemic levels following a succession of recent rate reductions, while noting that the SBV is also one of the few central banks in the world that is actually lowering interest rates at the moment.

According to Governor Hong, the SBV is tracking macroeconomic developments and government directives vigilantly.

As of June 27, the credit of the entire economy had increased by 4.03 per cent since the start of the year and by 9.08 per cent on-year.

Quang Tri greenlights Thanh An Wind Power to spearhead $74 million wind power project

In a stride towards expanding its renewable energy portfolio, Quang Tri People's Committee has green lit a second adjustment to the investment initiative for the Tan Hop wind power plant project, with the total investment approaching VND1.7 trillion (approximately $74 million).

According to Quang Tri Department of Industry and Trade, the local people's committee's decision facilitates a second investment adjustment for the Tan Hop wind power project, led by Thanh An Wind Power JSC.

With the plant's capacity maintained at 38MW, the revisions encompass a broad spectrum of tasks, including the installation of a medium-voltage electrical system to connect the turbines to a 110kV transformer station, the construction of a 35/110kV cable station, a 5km long 110kV line, the expansion of a 110kV output compartment at the 220kV Lao Bao transformer station, and approximately 2.2km of access roads to the project site.

The schedule has also been revised, with design adjustments and technical design approval set for June to September this year. Construction and turbine installation, along with the internal transmission line, is slated for October 2023 through to July 2025.

Commercial operations are projected to commence in August 2025, a significant deviation from the original plan of November 2021.

In approving these changes, Quang Tri People's Committee mandates regular investment activity reports from Thanh An Wind Power JSC, and insists on adherence to the revised schedule.

In the case of violations of Article 48 of the 2014 Investment Law, Quang Tri Department of Planning and Investment will report to the local people's committee to terminate the project.

Quang Tri People's Committee previously issued Decision No.2168/QD-UBND to change the use restrictions of 20.4 hectares of forest land (3.9ha of protected forest and 16.5ha of production forest) to land lease to allow Thanh An Wind Power JSC to implement the Tan Hop wind power project.

Endorsed by Quang Tri People's Committee in Decision No.3588/QD-UBND on December 15, 2020, the Tan Hop wind power project has an estimated annual output of 150 million kWh and a projected capacity of 38MW. It consists of 10 wind turbines, each with a capacity of 3.8MW.

Vietnam’s LNG power projects face regulatory hurdles despite high hopes

Vietnam's liquified natural gas (LNG) power projects, hailed as potential baseline power sources with quick startup capacity, continue to confront significant challenges amidst efforts to expedite their progress.
 
As of the end of June, Nhon Trach 3 and 4 LNG Power Project has shown no progress in its power purchase agreement (PPA) negotiations, as compared to its status that was shared in mid-May at the Vietnam Clean Energy Forum.

Stakeholders involved in the PPA negotiations cite the absence of a government-issued power pricing framework for the LNG power plant as the main obstacle to finalising negotiations.

An energy price negotiation expert explained, "Finding agreement on gas power plant PPAs has been a protracted process in the past. The Ministry of Industry and Trade issued Circular No.57/2014/TT-BCT in 2014 to govern the methodology and procedures for constructing and issuing power pricing frameworks, but since then, no new gas power projects have been implemented, hence no pricing framework for this type of power generation has been introduced by the relevant state regulatory bodies."

In contrast to the stagnant PPA negotiations, Nhon Trach 3 and 4 LNG Power Project has progressed substantially on the ground. This advancement was facilitated by Circular No.02/2023/TT-BCT, which eliminated the requirement for a signed PPA before the start of construction. Therefore, even amidst PPA negotiation difficulties, the project has been able to commence work on several fronts.

However, not all LNG power projects have the fortitude to proceed under such circumstances. For instance, the Bac Lieu project, granted an investment certificate in January 2020, and the Quang Ninh project, which initiated investment work in October 2021, have yet to fully materialise on the ground. Other projects like the Hai Lang and Long An I and II LNG power projects also face similar challenges.

Nguyen Binh, an energy project consultant, pointed out that a significant hurdle to actual project implementation is securing annual electricity production commitments from Electricity of Vietnam (EVN) and ensuring annual gas volume guarantees.

Some LNG power projects have been held up by these issues. The Vietnamese government considers these as business production agreements, the Ministry of Industry and Trade recommends reporting to higher authorities, and EVN claims insufficient authority to make decisions.

However, the commitment to annual power output and gas consumption is crucial, serving as the basis for financial institutions to consider credit sponsorship for projects, and for the project teams to secure cheap LNG through long-term contracts – resulting in lower electricity prices.

The price of electricity remains an unresolved hurdle.

The high cost of LNG power generation, primarily due to dependence on imported raw materials, remains a major barrier. Without a clear power pricing framework for LNG projects, it is hard to determine a reasonable negotiation benchmark.

A PPA negotiation expert stated, "The biggest obstacle for LNG power plants is the high cost, as input materials for electricity production depend on imports. Therefore, the plants need to operate at base load to get a better price that is more acceptable. However, without a power pricing framework for these power projects, it is unclear how much it is reasonable to negotiate."

"If only considering the global LNG prices, which at times reach up to $30 per million BTU, the price of electricity from LNG power sources would be much higher than the retail price at which EVN sells it to the public. EVN's financial regulatory bodies are unlikely to accept this, so it cannot make this purchase decision," they continued.

A representative of PV Power Corporation, the investor in Nhon Trach 3 and 4 Power Project, shared that under the current regulations and operating mechanisms of the electricity market, there is no specific mechanism to encourage investment in the stable operation of the power grid for LNG power projects. Additionally, the annual electricity purchase volume for LNG power plants has not been regulated, creating a lack of consensus with the electricity buyer, EVN.

A clearer glimpse into these issues can be gained from the experience of the Bac Lieu project. Despite projected electricity prices of around 7 US cents per kilowatt hour, the project's investors have raised a series of concerns that require government guarantees to be addressed before the project can proceed.

These include foreign currency conversion commitments, assurances for payment obligations to EVN, compensation for damages when terminating PPAs, the LNG gas price conversion to electricity sale prices, and volume guarantees.

Binh commented, "These commitments are also aimed at ensuring project efficiency when there are no officially determined electricity prices. With projects like wind and solar power that once had attractive feed-in tariff prices, investors rushed in without needing the government to make any other commitments."

Vietnam's economic growth is geared towards environmental protection

The national environmental protection plan for the 2021-2030 period, with a vision to 2050, is designed to meet the need for ecological safety and sustainable growth.
 
On July 3, while chairing the meeting of the National Environmental Protection Planning Appraisal Council for the 2021-2030 period, with a vision to 2050, Deputy Prime Minister Tran Hong Ha stated that the master plan's content needs to be further improved and augmented with a multi-sectoral and multi-regional approach.

The DPM reasoned that the aforementioned master plan should be revised in accordance with the growth models of the green and circular economies to guarantee that economic development, social security, and environmental protection are in sync.

The plan must also reflect new global trends in terms of reducing net greenhouse gas (GHG) emissions, treating and reusing wastewater, and institutionalising the content of Resolution No.24-NQ/TW issued in June 2013 on proactively responding to climate change, bolstering natural resource management, and safeguarding the environment under the Law on Environmental Protection 2020.

DPM Ha stated that the primary objective of modern environmental protection is to maintain and preserve intact natural landscapes and biodiversity, creating a new economic sector for sustainability through the development of renewable energy, pollution control, and environmental restoration.

The national environmental protection plan for 2021-2030, with a vision to 2050, has been developed to meet the requirements of environmental protection and sustainable development based on structure, zoning-oriented management, conservation of nature and biodiversity, and territory-specific environmental warnings.

According to the Ministry of Natural Resources and Environment, the master plan outlines objectives for the establishment and administration of 256 nature reserves (covering approximately 6.7 million hectares), 13 biodiversity corridors (spanning more than 1.55 million ha), and 21 biodiversity conservation facilities by 2025. The master plan also specifies that by 2030, there will be three centralised waste treatment zones at the national level.

The objective of Vietnam's environmental protection efforts is to construct and develop circular economy models with a green and low carbon economy to fulfil the commitment to achieve net-zero GHG emissions.

Danang mulls tunnel crossing Han River

In light of Danang’s draft planning for the 2021-2030 period, the central city is considering building a tunnel to cross the Han River in a bid to alleviate traffic volume flowing into the city centre.

Building a tunnel crossing the Han river is deemed a crucial project to Danang’s development over the rest of the decade, as the future tunnel would contribute to mitigating the traffic volume at three existing bridges that connect to Hai Chau and Son Tra districts.

The project is embedded in the revised general construction planning of Danang to 2030, and Danang’s underground urban space construction planning to 2030.

In light of the draft planning, this underground tunnel project is one of the infrastructure projects in Danang’s downtown areas, along with several other projects like building Le Duan road to connect existing Dong Da road, and building a flyover to connect Road 29/3 with Bui Ta Han road.

The future tunnel crossing the Han river would be about one kilometre long, starting at the intersection between Dong Da and Tran Phu roads in Hai Chau district, in which Dong Da road directly links to Danang railway station, and connects to Danang International Airport.

The project’s ending point is the intersection between Van Don and Tran Hung Dao roads, in which Van Don road directly links to the National Highway No.14B and Tien Sa Port.

The tunnel project is expected to be a highlight for Danang’s urban landscape. According to the draft planning, Danang aims to expand the existing passenger terminal and build a new one for Danang International Airport.

Over the next decade, the city envisages building a new terminal for local passengers in the airport’s southeast, combined with the existing T2 terminal for international passengers and expanded T1 terminal for local passengers to constitute a mega terminal complex capable of welcoming 15 million passengers a year.

The airport’s capacity-building project during the period will require about $370 million in total investment value.

Also, according to the draft planning, Danang also aims to renovate and build a new freight terminal reaching capacity of 100,000 tonnes per year in the airport’s east, and build a new freight terminal with capacity reaching 100,000 tonnes a year combined with a logistics centre west of the airport. The total investment value to raise the airport’s capacity is estimated at $826 million.

Innovation vital for local retail advance

Vietnamese consumers are entering a new era characterised by their evolving preferences, with it being more crucial than ever for businesses to understand the emerging trend of localised retail and consumption.

While Vietnam has become highly favoured by multinational companies due to its minimal disruptions in manufacturing operations during the pandemic, the presence of home-grown tech firms and a surge in tech funding are propelling the nation’s journey towards becoming a regional hub for technology.

“The number of Vietnamese startups doubled since the start of the pandemic to mid-2022, while the country drew a funding record of $2.6 billion across 2021. Coupled with improvements in logistical infrastructure that will propel e-commerce to $49 billion by 2025, Vietnam is the fastest-growing digital economy in Southeast Asia,” highlighted a June report titled “Asia: Markets to Watch 2023” by consumer insights firm WGSN.

It indicated that Vietnamese shoppers are increasingly confident in locally branded products, with approximately three-quarters expressing a preference for goods labelled “Made in Vietnam” over foreign brands. In light of this trend, brands are advised to pursue initiatives that celebrate the local community and foster connections with young Vietnamese people.

As younger Vietnamese consumers embrace hyperlocalism and rally around a home-grown creative class that aligns with their immediate values and lifestyle, brands should explore lo-fi strategies that leverage DIY user-generated content and prioritise conversational commerce to establish deeper connections with their target audience.

In the same vein, a report published in May by McKinsey & Company highlighted the significance of embracing localisation strategies, in the context that Vietnamese consumers are demonstrating a growing preference for locally branded products and services.

“Buying brands that are local or perceived to be local can also fulfill consumers’ desire to be purposeful, and strong local players seem to have significant market share. Developing these types of products is therefore likely to accelerate growth,” the report said.

According to McKinsey’s analysis, spending on large Vietnamese brands has increased significantly in the past 10 years. Whereas in 2013, local brands only took up one-third of market share in the food industry, the number rose to 38 per cent in 2021 and is likely to be higher now, while all other segments experienced a decrease.

To cater to the rising demand for localised retail experiences, businesses must focus on initiatives that celebrate and engage with the local community. McKinsey recommends brands to localise global products innovatively, adopting strategies that reflect Vietnamese consumers’ immediate values and lifestyle.

“Local brands or brands perceived to be local fare better, as Vietnamese consumers tend to derive a sense of pride from them. Companies can cater to this nuance, which includes subsegments of customers and specific budgets, by localising global product innovations while also prioritising hero stock-keeping units in traditional trade, rotating them strategically in limited shelf space,” the report suggested.

In fact, promoting consumption of goods in the domestic market has been one of the important directions in regulating production.

“In 2023, we have received hundreds of applications from foreign retail distribution systems interested in the domestic market. However, in the process of reviewing dossiers, the Ministry of Industry and Trade (MoIT) emphasised that it must be the output pillar for domestic production,” said Le Viet Nga, deputy director of the Domestic Market Department under the MoIT.

Earlier this year, a number of large local retail groups announced plans to increase investment capital and expand distribution networks. WinCommerce has outlined ambitious plans to open an additional 1,000 stores and achieve a 25 per cent increase in store revenue this year.

Simultaneously, they intend to transition towards smaller store models, such as multi-convenience stores and mini supermarkets, targeting both urban and rural areas. On the other hand, Saigon Coop is prioritising digitalisation by integrating AI technology to gain a better understanding of customers and enhance the overall shopping experience.

In parallel, the competition is fierce as big international players are also fighting for market share. Central Retail has unveiled plans to invest $1.45 billion between now and 2027, with a target of establishing 600 stores by 2027. AEON Mall aims to expand its presence with 30 new mall locations by 2030, along with 100 AEON MaxValu supermarkets in Hanoi by 2025.

Likewise, Mega Market has demonstrated expansion efforts by opening three new supply warehouses within the past 12 months, reflecting their commitment to increasing their operational footprint.

Massive loan portfolio at Sacombank under scrutiny following government audit

Sacombank faces intense scrutiny as a government audit exposes substantial loans tied to a single project and an array of potential regulatory violations, sparking concerns over the bank's internal control systems.

As per recent audit findings released by the Vietnamese government, the Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank) has landed itself in troubled waters.

The audit, focused on the bank's historical transactions, showed a reduction in outstanding credit balance, from $640.5 million as of December 2017 to $634.1 million by August 2018.

Alarmingly, nine corporations had accessed loans that accounted for a staggering 48.5 per cent of the bank's equity, amounting to $385.9 million.

The beneficiaries, including prominent corporations such as Him Lam Thu Do JSC and Hong Bang Investment JSC, utilised these funds to invest in the Saigon Binh An Urban Area project.

However, the audit has highlighted numerous irregularities within the credit files of these businesses, triggering concerns about Sacombank's regulatory oversight. The bank failed to exert stringent controls on these clients, who simultaneously sourced loans from Sacombank and other institutions to finance their contracts tied to the aforementioned project.

Furthermore, the audit underscored potential risks tied to the collateral underpinning these loans. The entirety of the asset rights and benefits derived from the Saigon Binh An Urban Area project were used as collateral. Yet, at the time, the project did not possess comprehensive legal documentation pertaining to ownership rights, raising concerns about the legality of such security.

Sacombank's considerable loans, despite the weak or missing credit files, had been green lit without adequate assessment.

In addition to these problematic real estate loans, the audit recommended probing Sacombank's handling of bad debt sold to the Vietnam Asset Management Company (VAMC). The bank had failed to retain the original collateral files, which constitutes a violation.

In another major lapse, Sacombank reportedly auctioned off collateral without obtaining the necessary client authorisation, in clear breach of legal regulations.

Consequently, the auditing body has recommended an in-depth examination of the roles and responsibilities of Sacombank's leadership, alongside those of the Ho Chi Minh City Banking Inspection and Supervision Agency.

The investigation comes as Sacombank neglected to set up additional provisions worth $100.2 million for 77 debts before offloading them to the VAMC, further highlighting the bank's potential shortcomings in terms of risk management and internal control mechanisms.

Plastics & Rubber Vietnam Exhibition 2023 opens in Hanoi

Plastics & Rubber Vietnam 2023, an international plastics & rubber technologies and materials exhibition, kicked off at the International Centre for Exhibition in Hanoi on July 25.

The 10th event covers an exhibition space of 3,300 sq.m. and features more than 100 booths from over 10 countries and territories, including five international pavilions – Italy, Taiwan (China), Singapore, K Alliance, and China.

Held by Informa Markets Vietnam and Messe Düsseldor, it aims to help businesses access cutting-edge technologies supplied by world leading companies, seek partnerships, and stay updated with the latest trends and knowledge in the plastics and rubber sectors.

The exhibition also includes several seminars giving multidimensional views of the circular and recycled plastics and rubber industries in Vietnam.

Lasting through July 27, it is expected to welcome more than 3,500 individual and group visitors.

BT Tee, General Director of Informa Markets Vietnam, told the opening ceremony that in recent years, the plastics sector has been asked to review the entire life cycle of plastics. The industry supports production processes that use less natural resources and emit less toxic gases, along with recyclable products.

Innovative technology is the solution, which is what the exhibition hopes to bring to Vietnamese firms, he noted, expressing his hope that enterprises can access scientific advances and opportunities to invest in new technologies to reduce the environmental impact of manufacturing industries, increase economic benefits, and meet growing demand.

Hoa Binh exports first two OCOP products to UK

The first batch of two One Commune One Product (OCOP) products - turmeric starch and honey peach lemon tea - from the northern province of Hoa Binh, was exported to the UK on July 25.

Addressing a ceremony marking the event, Dinh Cong Su, vice chairman of Hoa Binh provincial People’s Committee, attributed the shipment to the great efforts made by local farmers and support provided by relevant agencies and enterprises.

He urged local farmers and businesses to maintain the quality of the OCOP products exported in an effort to conquer more markets in the future.

Turmeric starch of Nhung Van turmeric starch Co., Ltd of Lac Son district and honey peach lemon tea from Ha Phong Cooperative in Cao Phong district were first exported to the UK market with a quantity of 60 boxes, 1,080 jars, weighing 200 to 500 grams each jar.

They are packed in standard export cartons and transported to the export market by R.Y.B Joint Stock Company. Both products have fully met the food safety criteria required by the EU and the UK.

Turmeric starch and honey peach lemon tea have become two OCOP products of Hoa Binh province to be exported.

Gamuda Land acquires $315 million project in Ho Chi Minh City

Gamuda Land, a property arm of Malaysian Gamuda Bhd, is continuing to expand its portfolio in Vietnam by acquiring a third project in Ho Chi Minh City after two acquisitions done last year.

The New Strait Times on July 20 said that Gamuda Land has signed a share transfer agreement to acquire Tam Luc Real Estate Corporation, which owns a 3.68 hectare project site in Thu Duc City in Ho Chi Minh City, Vietnam, for $315.8 million.

On its dossier submitted to the Malaysia Stocks Exchange, Gamuda said the site was a shovel-ready mixed-use high-rise project site with all requisite planning approvals, ready for immediate development.

It is strategically situated in Thu Duc City which has been gazetted as the innovation hub of Ho Chi Minh City.

The location is accessible to Hanoi Highway and An Phu intersections, which is the gateway to North-South Expressway which connects Ho Chi Minh and Hanoi.

"The upcoming completion of Metro Line 1 in the fourth quarter of 2023 will further enhance connectivity, providing direct access to the Central Business District, which is highly desirable for both commercial and residential purposes, catering to the needs of a rapidly growing urban population," it said.

Gamuda intends to develop the site into a mixed-use high-rise project consisting of 1,968 exclusive apartments, 12 penthouses, 51 podium shops and 21 shophouse units across six towers of up to 40 levels. The development plan is set to be fully developed and sold within five years.

"The target positioning for this development will be in the 'high-end' category. This market segment has a pricing range of $4,000 to $7,000 per sq.m, subject to location and product quality," it said.

This is the third project acquired by Gamuda Land in the last 24 months. Last year Gamuda Land acquired a local company to develop a high-rise apartment building in Thu Duc named Elysian, which will consist of 1,300 apartment units. The total gross development value of the project is estimated to be over $250 million.

In addition, Gamuda Land had acquired the Artisan Park, which is strategically located right next to the new administrative centre of Binh Duong province. Binh Duong is also an economic hub with many industrial areas and parks. This increasing industrial growth is bringing superb demand for housing.

Artisan Park is planned to be a commercial-landed housing project, created to become a dynamic shopping and meeting hub. The project aims to bring the feel of “a summer fair all year long” to its residents. Gamuda Land also envisions the development to be a hotspot for the local real estate market upon completion.

Active in the Vietnamese market for the last 20 years, Gamuda Land is now developing two large-scale townships: Celadon City in Ho Chi Minh City and Gamuda City in Hanoi. Both two projects will become typical green townships in Vietnam with a high standard of environmentally friendly and biophilic design.

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