Vietnamese exports have ample room to grow in the second half of this year since their large markets such as the US and the UK are expected to cut interest rates which will be a boost to economic expansion and consumption, according to experts.

Deputy Minister of Industry and Trade Nguyen Hoang Long held that enterprises and localities should get an update on the essence of the free trade agreements, especially important ones.

The ministry is completing legal documents and policies to support businesses and localities in trade promotion and international integration as a whole to bolster exports, he added.

According to Secretary General of the Vietnam Vegetable and Fruit Association Dang Phuc Nguyen, the export of fruits and vegetables is forecast to expand 15-20%, and, if opportunities from the inked protocols are levered to the fullest extent, export revenue could hit 7 billion USD this year, up 0.5-1 billion USD from the set plan.

However, specialists held that trade activities have faced numerous challenges, including rising transport costs, a strong USD, trade remedies related to the environment, sustainable development and green transition in large markets like the EU and the US.

Former deputy director of the industrial and commercial information centre under the Ministry of Industry and Trade (MoIT) Le Quoc Phuong said as an export power, Vietnam should work to ensure timely delivery of products that meet stringent requirements from importers.

He suggested enterprises diversity their markets, look for niche markets with huge potential like the Middle East, Africa, and South America to lessen its independence in a single market.

The country’s trade is projected at 369.6 billion USD for the whole year, up 16% against last year, with export revenue being 189.5 billion USD, a year-on-year increase of 14.2%.

Director of the MoIT’s Foreign Trade Agency Tran Thanh Hai said that the ministry is accelerating the negotiations on the comprehensive economic partnership agreement (CEPA) between Vietnam and the UAE, and informing associations and enterprises of the market development, helping them adjust their production plans.

It will continue renewing its trade promotion programmes and connecting firms and their products with the Vietnamese trade offices in foreign countries and territories, he said, adding logistics services will enjoy due attention while administrative procedures will be simplified to facilitate trade activities./.

Lao Cai border gate sees 143% surge in import-export revenue in H1

Import-export revenue through the Lao Cai Border Gate surged 143% year on year in the first half of this year to 1.05 billion USD.

According to Pham Van Phuc, Vice Chairman of the Lao Cai Border Gate Sub-Department of Customs, since the beginning of 2024, the Chinese side has resumed normal import-export activities through the border.

Meanwhile, customs clearance activities at the Kim Thanh International Road Border Gate No. 2 have been carried out smoothly, with no congestion of vehicles transporting goods, he said.

Averagely, 370 vehicles crossed the border gate each day, including 180 for export goods and 190 for import goods. The number of enterprises engaged in import and export activities totalled 515, a 22.6% increase from 2023, Phu said.

The number of customs declarations processed via the VNACCS/VCIP electronic system reached 36,754, he said.

He noted that State budget collection from import-export activities through local border gates in the first half of this year hit 381.4 billion VND (14.98 million USD), a surge of 66.5% year on year.

Meanwhile, six trains serving import-export activities have run through the international railway border gate each day.

Statistics from the Lao Cai Department of Industry and Trade showed that total import-export value through local border gates in the first six months of this year hit over 1.57 billion USD, equivalent to 164.2% of the figure recorded in the same period last year, fulfilling 35% of the yearly plan. Of the total, imports were 886.6 million USD, equivalent to 186.2% of the same time last year’s figure./.

Vietnam continues efforts to control inflation

Experts and scientists sought price management solutions, especially in the context that the minimum wage has increased since July 1, at a workshop in Hanoi on July 3.

Jointly held by the Institute of Economics and Finance (IEF) at the Academy of Finance and the Department of Price Management under the Ministry of Finance, the workshop reviewed market and price developments in the first half of this year, and gave forecasts for the whole year.

Dr. Nguyen Duc Do, deputy head of the institute, said inflation pressure in the reviewed period is not a big problem, noting that the consumer price index (CPI) rose by only 1.4% as compared with late 2023, and in the second quarter alone, it inched up 0.1% monthly.

In this regard, economist Ngo Tri Long said although inflation has been controlled within the plan, core inflation has shown a rising trend since mid-2022.

The Department of Price Management also predicted that inflation pressure will be felt clearly in the second half due to the impacts of regional and global uncertainties.

Economists shared the view that the prices of goods would rocket in the remaining months of the year and beyond after the 30% increase in base salary.

Against the backdrop, some suggested the roll-out of concerted solutions in communications work as well as economic, financial, administrative and legal aspects, involving all stakeholders from the State, businesses to residents.

The State should set aside resources or mechanisms to stock goods and deliver them when needed, form a ceiling price mechanism suitable for essential goods, strengthen market management, and increase imports to keep prices stable, they said, urging enterprises to restructure their business and put into place new business models to cut costs.

Long forecast the national CPI to grow between 4.2% and 4.5% as global inflation and prices are cooling down, and the Government has maintained a cautious and proactive attitude in price management and inflation control.

The department stressed the need to keep a close watch on market developments, especially the prices of essential goods and services, and manage the monetary policy in tandem with the fiscal policy and others to contribute to stabilising the macro economy, taming inflation and ensuring major economic balances.

It also suggested ministries, agencies and localities work out price management plans for goods and services subject to State control in prices, and thoroughly assess impacts of any adjustments.

The Ministry of Finance said it will continue keeping tabs on price plans and roadmaps put forth and proposed by ministries to update inflation scenarios, which will serve as a basis for the ministry to advise the Government, the Prime Minister and the head of the steering committee on price management, in order to achieve the yearly inflation target of 4-4.5% set by the National Assembly./.

HCM City sees surge in FDI in first half

Ho Chi Minh City drew 198.82 million USD in foreign direct investment in the first half of this year, doubling the amount recorded in the same period last year, the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA) told a press conference on July 3.

This growth was primarily driven by existing projects increasing their capital. Nine projects reported capital injections totaling 188.97 million USD, a threefold increase year-on-year. The Green Planet project led the way with a capital rise of 158 million USD.

However, the number of new FDI projects approved during the period declined. HEPZA reported the approval of only 10 new projects with a combined registered capital of 9.85 million USD, down 73.46% annually.

Domestic investment in the city's industrial parks and processing zones also experienced a decline. Total domestic investment reached over 1.79 trillion VND (73.17 million USD), marking an 89.42% decrease year-on-year. While there were nine new domestic projects with a registered capital of 604.9 billion VND (down 96.23% annually), 11 existing projects saw their investment capital rise by 1.187 trillion VND, representing a 33.75% increase.

Despite the slowdown in new projects, Chief of HEPZA Office Nguyen Thi Lan Huong highlighted positive developments in the city's industrial parks and export processing zones, with an export turnover estimated at 4.5 billion USD for the first half, reflecting a 7% increase year-on-year.

As of the end of June, the IPs and EPZs housed a total of 1,715 active investment projects with a combined registered capital of 13.59 billion USD, including 561 foreign-invested projects valued at over 7.2 billion USD and 1,154 domestic projects with a total investment exceeding 114.98 trillion VND (6.32 billion USD)./.

Vietnamese consumer price index to fall within limit this year, says economist

The consumer price index (CPI) of the Vietnamese economy is unlikely to go wild this year due to inflation and market prices cooling down globally, said Assoc. Prof. PhD Ngo Tri Long, a leading Vietnamese economist, at a workshop held on July 3 in Hanoi.

Prof. Long cited a report recently unveiled by the General Statistics Office (GSO) saying the local CPI rose by 4.34% in June compared to the previous year, fueling the CPI to inch up by 4.39% in the second quarter and 4.08% in the first half of the year.

He attributed the CPI hike to increasing prices of essential commodities such as food and foodstuff, housing, electricity, water, fuels, and construction materials.

An increase in input costs also served to fuel cost-push inflation. The past six months witnessed the economy’s production costs continue to climb due to a relative increase taking place in the costs of most production inputs.

Furthermore, rising exchange rates contributed to driving up the price of goods through import channels.

As Vietnam is a highly open economy that is heavily dependent on imported raw materials and fuels, it is more vulnerable to global economic shocks, said Prof. Long.

In fact, the global economy recently faced high inflationary pressure and recession risks. Geopolitical tensions also impacted commodity price fluctuations in the market. In particular, many countries moved to implement tight monetary policies, forcing others to increase exchange rates and interest rates.

However, the economist predicted that Vietnamese CPI would probably not experience a rapid increase and will hover at between 4.2% and 4.5% by the year’s end due to decreasing inflation and market prices globally.

The Government remains both cautious and proactive in managing market prices and controlling inflation in order to stabilise the macroeconomy, creating room to promote further growth, explained Prof. Long.

Taking the floor, PhD Nguyen Duc Do, deputy director of the Institute of Economics and Finance, introduced three scenarios for the country’s inflation this year depending on oil fluctuations in the world market as well as the health of the United States’ economy.

In his calculations, the local inflation rate would probably stay at 3.2% if oil prices go up slightly and exchange rates remain stable; at 3.4% if oil prices and exchange rates keep stable; and at 3.6% if oil prices and exchange rates fall and the US economy moves into recession.

To stabilise market prices up to the year’s end, a representative of the price watchdog of the Ministry of Finance recommended closely monitoring market fluctuations, especially for essential products and services, to come up with flexible and timely price management policies.

For State-controlled products and services such as electricity, health services, and education services that are undergoing the market economy roadmap, he said the Ministry of Finance will continue to keep a close watch on the price roadmap formulated by specific ministries to update inflation scenarios and consult with the Government to ensure average inflation will be kept at between 4% and 4.5% as the set target.

The Ministry of Finance will also closely coordinate efforts with the Ministry of Industry and Trade to regulate retail petrol and oil prices in line with market developments, while also making recommendations to complete the petroleum price management mechanism.

The price watchdog will also seek to increase market inspections to timely detect and handle any violations which may occur, he said.

Trade with the US likely to exceed US$100 billion for fourth consecutive year

Two-way trade turnover between Vietnam and the United States hit US$61.4 billion in the first half of the year and it is on track to surpass the US$100 billion mark for the fourth year in a row.

Statistics indicate that of the six-month total, Vietnamese exports brought in US$54.3 billion, up 22.1% year on year, while its imports were valued at US$7.1 billion, up 2.8%, resulting in a trade surplus of US$47.2 billion.

The US is currently taking steps towards lowering interest rates, thereby stimulating local consumption and facilitating business import and export activities. Such a move has served to fuel local consumer demand for furniture, seafood, and garments, among other items that are key Vietnamese export products.

Do Ngoc Hung, trade counselor of the Vietnamese Embassy in the US, pointed out that bilateral trade has flourished considerably over recent years despite global fluctuations.

According to the trade counselor, the 2023 upgrade of Vietnam – US ties to a comprehensive strategic partnership is expected to open further business opportunities for the two countries.

Furthermore, Vietnamese commodities are increasingly popular in the US market thanks to continuously improved quality, updated trends, and competitive prices.

Changes in the supply chain, as well as the wave of investment shifts, have contributed to enhancing the production capacity of Vietnamese enterprises, creating conditions for their products to stand firm in the international market, including in the US.

The Ministry of Industry and Trade recently dispatched an investment and trade promotion delegation to the US to assist Vietnamese localities and firms with investment connections in this lucrative market.

During the working trip, Vietnamese enterprises engaged in a series of business-to-business matching sessions to inquire into the needs of US firms and the market as a whole.

The US is Vietnam’s second largest trade partner, with bilateral trade expected to maintain its upward trajectory thanks to high market demand coupled with a low inventory in the US market, according to Vu Ba Phu, director of the Trade Promotion Agency under the Ministry of Industry and Trade.

However, Phu also reminded Vietnamese firms of the need to learn more about trade defence measures as a way of limiting the risks of investigations and lawsuits.

The General Department of Vietnam Customs reported that two-way trade turnover between Vietnam and the US first beat the US$100 billion mark in 2021, hitting US$111.55 billion.

Despite the impact of COVID-19, their trade turnover in 2022 and 2023 still exceeded the US$100 billion threshold, reaching nearly US$124 billion and nearly US$111 billion, respectively.  

Hai Phong ranks first among centrally-run cities in economic growth

The northern port city of Hai Phong continued its impressive economic performance in the first half of the year, ranking fifth nationwide, second in the Red River Delta and first among centrally-run cities in terms of growth rate, said Permanent Vice Chairman of the municipal People's Committee Le Anh Quan.

Speaking at a regular meeting of the municipal People's Committee on July 3, Quan said several sectors posted double-digit growth, including industrial production, cargo throughput at ports and budget revenue. The tourism and service sectors also displayed a remarkable recovery, while social welfare policies proved effective.

Hai Phong's gross regional domestic product (GRDP) expanded by an estimated 10.32% year-on-year during the period. This growth was driven by strong performances across industrial and construction (12.76%), services (8.54%), and agro-forestry-fisheries (0.86%). 

Total State budget revenue reached an estimated 60.8 trillion VND (2.53 billion USD), a significant increase of 34.77% compared to the same period last year. This represented 62.15% of the target set by the Government and 56.96% of the target set by the municipal People's Council.

Foreign direct investment also saw positive developments, surpassing 1.5 billion USD and achieving 77.58% of the annual plan. Export turnover grew by 28.87% year-on-year, reaching 17.2 billion USD and accounting for 51.26% of the yearly plan. Cargo throughput at ports reached 75.7 million tonnes, reflecting a 9.03% annual increase.

The number of tourists visiting the city exceeded 4.27 million, up 16.25% year on year./.

Hanoi keeps hastening investment attraction, disbursement

Hanoi recorded encouraging results in investment attraction and disbursement during the first half of 2024, and is poised to push ahead with this work in the coming time.

The municipal People’s Committee reported that development investment in Hanoi reached 208.8 trillion VND (8.2 billion USD) during the January - June period, representing a year-on-year rise of 9.5%.

Added with 43.8 million USD registered in June, the city recorded 1.165 billion USD in foreign direct investment (FDI) during H1, comprising 1.036 billion USD for 120 new projects, 55 million USD for 78 existing projects, and 74 million USD spent on contributing capital to or purchasing shares of local companies.

Thanks to the effective use of public investment capital, construction activities continued to be sped up in the first six months, the administration said, noting that together with investment attraction, it has also asked contractors and construction units to harness resources to accelerate key projects and infrastructure development, helping boost public investment disbursement.

In 2024, Hanoi has 226 public investment projects on basic construction, consisting of 155 projects launched in previous years and invested with 205.5 trillion VND in total (including 24.4 trillion VND planned to be disbursed this year), and 71 new projects worth 7.2 trillion VND (including 1.1 trillion VND to be disbursed this year). Among them, there are 58 transport projects, accounting for 19.5% of the capital plan.

Key projects in the city are being accelerated so as to be completed on schedule, the People’s Committee went on.

It elaborated that the Belt Road No. 4 project in the Capital Region, invested with about 12.6 trillion VND so far, has had 9.6% of its workload done. Invested with over 7.2 trillion VND from the city’s budget, the Hoang Cau - Voi Phuc section of the Belt Road No. 1 project (Phase 1) has had 32.4% of its investment capital disbursed.

The project on upgrading the Ba La - Xuan Mai section of National Highway 6, with investment totalling 8.1 trillion VND funded by the city’s budget, has seen 7.5% of its capital plan allocated.

The city has also disbursed about 7.3% of the 5.2 trillion VND in total investment for a project that builds a road connecting Thang Long Avenue with Hanoi - Hoa Binh Expressway.

Meanwhile, the first phase of the Hanoi Children’s Hospital has recorded 53.6% of its total investment, nearing 785 billion VND, disbursed. The hospital is expected to be completed and put into use by the end of 2024.

The Hanoi Children’s Palace project, worth over 1.3 trillion VND in total, has had up to 75.8% of its capital plan allocated. The facility is scheduled to open in the third quarter of this year.

Hanoi is taking various big and long-term measures to attract investment to many areas and create a favourable environment for projects to be sped up.

Chairman of the municipal People’s Council Nguyen Ngoc Tuan said the city will soon announce the Hanoi Capital Master Plan for the 2021 - 2030 period with a vision to 2050, and the adjustments to the general master plan on building Hanoi until 2030 with a vision to 2050. It will also make implementation plans for these two master plans as soon as they are approved by the Prime Minister.

In particular, special attention will be given to devising concrete measures and detailing progress targets to serve as the basis for implementing projects and calling for domestic and foreign investment.

Authorities will also focus on perfecting land-related regulations and thoroughly deal with prolonged shortcomings and weaknesses pertaining to land management and use, Tuan added./.

Mountainous areas need more foreign investment to thrive

Aside from harnessing domestic resources, it is important to attract foreign investment to optimise potential and advantages of ethnic minority and mountainous areas, according to experts.

Such “soft” factors as limited knowledge, skills, and experience have affected foreign investment attraction in ethnic minority and mountainous areas, they said.

Hoang Van Xo, Director of the Department of International Cooperation at the Government’s Committee for Ethnic Minority Affairs (CEMA), said there are 53 ethnic minority groups with 11.7 million people residing in 52 provinces and cities nationwide, accounting for over 11% of the total population.

Developing ethnic minority areas is a consistent priority policy of the Vietnamese Party and Government, he affirmed.

Xo noted that the biggest asset of ethnic minority communities is the 8 million working-age people, so a measure for eliminating poverty there is promoting human resources training.

Hong Sun, Chairman of the Korean Chamber of Commerce in Vietnam (KOCHAM), said businesses from the Republic of Korea (RoK) has invested in some mountainous provinces such as Cao Bang, Lai Chau, Dien Bien, and Bac Kan, but the investment value remains modest.

He perceived that in the investment promotion for ethnic minority and mountainous areas, it is necessary to select projects that suit local conditions. For example, northern midland and highland localities should not call for investment in the semiconductor sector but hi-tech agriculture.

The distance between urban and mountainous areas in Vietnam is too big, Hong pointed out, adding that one of the biggest barriers is the incomplete transport infrastructure.

Therefore, CEMA should coordinate with the Ministry of Planning and Investment to mobilise more resources for developing infrastructure and human resources, the KOCHAM executive suggested.

Echoing the view, Morimoto Yutaka, Chairman of the Japanese-invested Accord Biz Co. Ltd, recommended mountainous provinces focus on attracting foreign investment to hi-tech agriculture to make use of local human resources and favourable natural conditions.

To do that, Vietnam needs to expand the logistics system, infrastructure and, especially, export markets, according to Yutaka.

To continue tapping into mountainous areas’ potential, CEMA’s Department of International Cooperation recently signed a strategic cooperation deal with the Institute of International Investment Studies Company (ISC) to support highland localities to improve foreign investment quality and effectiveness, and attract more investment.

Under the deal, the two sides will cooperate in equipping the localities’ cadres with legal knowledge, improving their foreign investment management and promotion skills, organising investment promotion activities, and giving advice on international investment cooperation.

Phan Huu Thang, Chairman of the ISC and the Vietnam Industrial Park Finance Association, described the agreement signing as an important step in mobilising international resources and experience to help with socio-economic development in ethnic minority and mountainous areas, local life quality improvement, as well as the country’s integration into the world./.

Plan targets modern fishing ports, storm shelters

The Prime Minister has approved a plan to put into service an uninterrupted, inter-regional, modern system of fishing ports and storm shelters by 2030.

The PM on July 3 issued Decision No. 582/QD-TTg approving the plan on the national system of fishing ports and storm shelters for fishing vessels for 2021 – 2030, with a vision to 2050.

The plan’s objectives are to consolidate and modernise the fisheries sector’s infrastructure, meet logistics needs, ensure food safety and hygiene, reduce post-harvest losses, ensure safety for vessels and fishermen, raise the efficiency of fisheries management, step up international integration, adapt to climate change, protect the environment and the marine ecosystem, and contribute to ensuring national defence and security.

Specifically, by 2030, the country will have 173 fishing ports, including 39 of level 1, which are capable of handling about 2.98 million tonnes in total each year, and 160 storm shelters capable of accommodating about 90,600 fishing vessels.

In addition, there will be major trade hubs serving as driving forces for fisheries industrial parks, coastal economic zones, and large fisheries centres associated with key fishing grounds, thus creating investment attraction and growth momentum for the fisheries sector.

Notably, digital management methods will be used at all level-1 fishing ports, as classified in the Government’s Decree No. 76/2021/ND-CP dated July 28, 2021, according to the plan.

By 2050, Vietnam expects to house a harmonious, comprehensive and modern network of fishing ports on part with others in the region and the world, meeting green standards.

Level-1 fishing ports at big fisheries centres that serve as international gateways will become crucial links in the global aquatic product value chain, with high competitiveness.

The plan also aims for the upgrade of fishing ports and storm shelters on islands, especially Truong Sa (Spratly) and Hoang Sa (Paracel).

Between 2021 and 2030, five large, harmonious fisheries centres will be formed in connection with the system of fishing ports and storm shelters in the northern city of Hai Phong, the central city of Da Nang, the south central province of Khanh Hoa, the southern province of Ba Ria-Vung Tau, and the Mekong Delta province of Kien Giang./.

Hai Phong ranks first among centrally-run cities in economic growth

The northern port city of Hai Phong continued its impressive economic performance in the first half of the year, ranking fifth nationwide, second in the Red River Delta and first among centrally-run cities in terms of growth rate, said Permanent Vice Chairman of the municipal People's Committee Le Anh Quan.

Speaking at a regular meeting of the municipal People's Committee on July 3, Quan said several sectors posted double-digit growth, including industrial production, cargo throughput at ports and budget revenue. The tourism and service sectors also displayed a remarkable recovery, while social welfare policies proved effective.

Hai Phong's gross regional domestic product (GRDP) expanded by an estimated 10.32% year-on-year during the period. This growth was driven by strong performances across industrial and construction (12.76%), services (8.54%), and agro-forestry-fisheries (0.86%).

Total State budget revenue reached an estimated 60.8 trillion VND (2.53 billion USD), a significant increase of 34.77% compared to the same period last year. This represented 62.15% of the target set by the Government and 56.96% of the target set by the municipal People's Council.

Foreign direct investment also saw positive developments, surpassing 1.5 billion USD and achieving 77.58% of the annual plan. Export turnover grew by 28.87% year-on-year, reaching 17.2 billion USD and accounting for 51.26% of the yearly plan. Cargo throughput at ports reached 75.7 million tonnes, reflecting a 9.03% annual increase.

The number of tourists visiting the city exceeded 4.27 million, up 16.25% year on year./.

Hanoi hosts first Aerospace and Defence Manufacturing Innovation Day

The first ever Aerospace and Defence Manufacturing Innovation Day attracted participation from key organisations and ministries, including the French Embassy in Vietnam.

The forum, on July 2, was jointly organised by Dassault Systèmes, the National Innovation Center (NIC) and Kami Manufacturing Technology Corporation (KMTC).

The focus was on Vietnam's digital transformation and innovation in aviation, aerospace and defence, drawing significant interest from global investors, particularly from France.

French Ambassador Olivier Brochet said, "France and Vietnam have enjoyed over 10 years of strategic partnership, with French enterprises bringing numerous technological solutions to Vietnam to foster economic development and innovation. Today’s event, featuring Dassault Systèmes, highlights the expertise and technology that France can contribute to this bilateral cooperation."

Topics discussed at the event included the impact of digitisation and new technologies such as virtual twins on future manufacturing, aiming to accelerate innovation and optimise operations. Model-Based Enterprises (MBE) are emerging as a key methodology to streamline and standardise business processes.

David Ziegler, vice president of Aerospace & Defence at Dassault Systèmes, said, "Over the past 40 years, since 1981, we have used virtual reality systems for design and practical applications.

"By 1989, we expanded partnerships with airlines and aircraft manufacturers using our VR software for component design. We introduced Virtual Twin technology before 2020, leading to 70% of current vaccines being developed through this system. Looking towards 2040, we envision this technology driving innovation and new business models. Dassault Systèmes' systems are crucial in aerospace and defence, with strategic partnerships with Boeing, Airbus, Dassault Aviation and Lockheed Martin.

"Before designing an aircraft, goals for the product, cost and weight are set. Engineers, along with partners, create initial aircraft designs and digital system simulations using complex tools. They conduct necessary operations and tests, collaborating with experts in various fields on parallel studies like noise, simulation and vibration.

"The manufacturing process is also simulated, showing machinery and robot deployment. Dassault Systèmes' optimised workflow offers custom options for clients. Once the aircraft is operational, all flight data is recorded on our platform." 

Louis Cao, president of Kami Manufacturing Technology Corporation, said, "Not only Kami but the entire domestic supply chain and manufacturing community view this partnership as a harmonious combination of Vietnam's aerospace and defence expertise with Dassault Systèmes' global experience and advanced technological solutions. This collaboration will enhance the competitiveness of domestic component manufacturers to meet the modern needs of the aerospace industry, fostering innovation for the national digital economy."

Vo Xuan Hoai, deputy director of NIC, added, "NIC proudly supports high-tech initiatives, recognising the vital role of innovation in production and design amid digital transformation. Committed to investing in R&D, NIC collaborates with businesses, researchers and international partners to drive sustainable growth and innovation, fostering effective cooperation among stakeholders."

Dassault Systèmes established its representative office in Hanoi in July 2022 and on that occasion, also announced a cooperation agreement with KMTC. This agreement will position KMTC as a leader in digital transformation in the aerospace manufacturing sector in Vietnam.

Listed firms’ compliance with disclosure requirements increases sharply

Some 424 out of 708 listed companies on the Hanoi and Ho Chi Minh stock exchanges surveyed have complied with information disclosure norms, 60 more than last year, a survey by the 2024 IR Best Practice Awards programme has found.

The annual survey was done between May last year and April this year by Vietstock, the Việt Nam Association of Financial Executives and Finance and Life online magazine.

Disclosure is a mandatory obligation for all listed companies on the country’s two stock exchanges, and responsibility towards their shareholders and the investor community in general.

The ratio of listed companies fulfilling this obligation rose from 50 per cent last year to 60 per cent this year, the highest ever in the 14 years of the programme.

The large cap category had the highest compliance rate at 81 per cent of companies in the financial sector and 65 per cent in others.

Impressively, the compliance rate among small and micro cap companies increased to 58 per cent from 46 per cent last year.

It was 60 per cent for mid-cap companies.

In terms of industries, banking led with 18 out of 20 complying, or 90 per cent, a huge jump from previous years, followed by mining (79 per cent), food and beverage (77 per cent) and utilities (76 per cent).

Last year the securities sector had the highest compliance ratio of 80 per cent, but this year it dropped to 54 per cent.

Construction and real estate had rates just below 50 per cent.

The awards recognise achievements and honour listed companies that meet disclosure standards on the stock market.

After the survey, the programme will move to the evaluation phase of investor relations (IR) activities to nominate the winners of the IR Best Practice Awards. 

Hà Nội collects over $390m in taxes from e-commerce

The capital city has collected more than VNĐ9.9 trillion (US$390 million) in taxes from e-commerce activities so far this year, according to the municipal People's Committee. 

The figure includes over VNĐ2.54 trillion in corporate taxes and over VNĐ7.36 trillion in taxes paid by household businesses, the committee said. 

It said that the city has compiled data from 418 e-commerce business owners, 668 digital businesses and 54 businesses providing accommodation services and e-commerce sellers. 

To prevent fiscal losses in e-commerce activities, the Hà Nội Department of Taxation had a plan for inspections and audits with a focus on e-commerce in 2024, targeting a total of 2,342 organisations and individuals, of which 1,749 have been audited, hanoitimes.vn reported. 

Based on the results of the pilot, the tax management for e-commerce activities will be extended to the whole city, leading to the development of a city-level project on tax management for e-commerce activities throughout the city.

The online newspaper cited the department's director Vũ Mạnh Cường as saying that to further strengthen tax management of e-commerce, the department would continue to apply information technology and build an e-commerce database to support tax officials in accessing taxpayer identification information.

In addition, the department would strengthen communication methods and electronic support for tax filing and payments and aim to establish virtual tax agencies and virtual tax support units on e-commerce platforms to maximise electronic tax filing, he said.

The VN-Index rises for third consecutive day

Vietnamese markets extended gains and ended higher on Wednesday, while the foreign bloc net withdrew VNĐ536 billion.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index rose 7.06 points, or 0.56 per cent, to close the trading session at 1,276.85 points.

For most of the trading day, the VN-Index was above the reference level. Even though the morning session recorded slight selling pressure, VN-Index still ended the session higher on Wednesday, a third consecutive day of rises.

More stocks moved down on the southern bourse, with 180 ticker symbols finishing lower, while 133 stocks inched higher.

More than 589 million shares were traded on the southern exchange, worth nearly VNĐ15 trillion (US$609 million).

The 30 biggest stocks tracker, VN30-Index, also increased 9.44 points or 0.73 per cent, to 1,305.5 points. Twenty stocks of the VN30 basket rose, while six inched down and four ended flat.

Data compiled by financial website vietstock.vn showed that the Bank for Investment and Development (BID) was the biggest gainer on the market, with its shares up nearly 3.2 per cent, contributing more than two points to the VN-Index gains.

It was followed by FPT Corporation (FPT), shares of the software manufacturer increased 2.34 per cent, Vietnam Technological and Commercial Joint Stock Bank (TCB), up 2.62 per cent and PetroVietnam Power Corporation (POW), up 4.14 per cent.

Some sectors posted losses and put slight pressure on the overall market. So-called Vin family stocks dropped, with losers being Vinhomes JSC (VHM), Vincom Retail Joint Stock Company (VRE) and Vingroup Joint Stock Company (VIC).

On the Hà Nội Stock Exchange, the HNX-Index ended higher at 241.43 points, up 0.26 per cent. During the session, over 52 million shares were traded on the northern bourse, worth over VNĐ1.1 trillion.

Foreign investors extended their net selling spree as they net sold over VNĐ536 billion on the HoSE. 

EuroCham confident in Vietnam's stable economic development

The European Chamber of Commerce in Vietnam (EuroCham) said it is confident in the stable development of Vietnam’s economy at a recent seminar held by the Vietnamese Embassy in Belgium.

At the July 2 event, Ambassador to Belgium and head of the Vietnamese mission to European Union (EU) Nguyen Van Thao emphasised the importance of cooperation between Vietnam and the EU in promoting green and sustainable economic development, especially in the fields of renewable energy and environmental protection.

The ambassador affirmed that Vietnam values cooperation with the EU and the EuroCham in these areas and expressed his confidence that EuroCham's cooperation and expertise in renewable energy will make important contributions to Vietnam's efforts in reducing greenhouse gas emissions and climate change response.

Regarding illegal, unreported and unregulated (IUU) fishing, Thao also called on EuroCham to urge the European Commission (EC) to remove its “yellow card” warning against Vietnamese seafood.

For the Just Energy Transition Partnership (JETP), Thao appreciated EuroCham's role in promoting the JETP in Vietnam, and expressed his hope for close cooperation with the chamber in implementing the partnership effectively.

For his part, Eurocham Chairman Dominik Meichle said the seminar highlights the ongoing and future cooperation between EuroCham and Vietnamese partners, focusing on sustainable economic development.

He said that during meetings with the EC's bodies, Eurocham touched upon the "yellow card" warning against Vietnamese seafood and called on the EC to consider lifting it soon.

Meichle said the business confidence index released by EuroCham shows its members are positive about Vietnam’s economy, and acknowledge substantial opportunities brought about by the Southeast Asian nation.

Moreover, Vietnam has strengths to attract foreign investment thanks to its stable investment environment, well-trained workforce, and open dialogues between the Government and businesses, he said, noting Vietnam's economic outlook is very rosy.

Meichle suggested the country keep inflation at a reasonable level, increase public investment in infrastructure development, especially for green energy, transportation and seaports, streamline administrative procedures, and boost digitalisation./.

Inflation target is achievable, wage increase expected not to have significant impact on prices

The National Assembly’s inflation target, set at 4-4.5 per cent this year, is achievable, as the wage increases in the public sector are expected not to have significant impact on prices, a conference hosted by the Institute of Economics and Finance has heard.

The inflationary pressure is not significant for the second half of this year, Nguyễn Đức Độ, the institute’s Deputy Director said.

Speaking on Wednesday in Hà Nội, he pointed out that inflationary pressure in the first half of this year mainly came from the increases in healthcare and education services prices from the third quarter of 2023.

Độ said that the impact of the public sector’s wage increases on inflation is expected not to be considerable, as the public sector accounts for less than 8 per cent of the economy.

Overall, if there are no large-scale adjustments in prices of State-managed services, inflation is forecast to be around 3.4 per cent this year, Độ said. The prediction excludes any adjustments in prices of State-managed goods and services.

A representative from the Price Management Department under the Ministry of Finance, said there were no price shocks from the beginning of this year and prices fluctuated following the market supply and demand.

There were increases in food prices, especially rice and pork, but these were under control. Prices of petrol products have been on a downward trend since April, further helping ease the inflationary pressure. The prices of State-managed services were not adjusted in the first half of this year.

For the full year, she predicted that CPI would be controlled and within the Government’s target of 4-4.5 per cent, adding that mild inflationary pressure provides room for the Government to adjust prices of State-managed services including healthcare and non-public education.

The Prime Minister last week issued an official dispatch to ask the management on prices to be enhanced to control inflation and stabilise macro-economy this year.

Still, she urged close watch on the market developments to timely apply price management measures, especially prices of necessary goods.

It is also necessary to choose appropriate points of time to adjust prices of State-managed services to prevent significant impact on inflation.

“Although inflation is still under control, close watch must be on prices developments. We need to promptly provide information and ensure transparency in prices of goods to control any expected inflation,” economic expert Ngô Trí Long said.

The adjustments of prices of State-managed goods and prices must follow a roadmap with careful evaluation of the impacts on inflation to have appropriate adjustments, he said.

Longer term the forecast is that Vietnamese CPI will rise to 4.2-4.5 per cent this year on cooling world inflationary pressures and commodity prices and the Government’s proactiveness in controlling inflation, stabilising the macroeconomy and promoting growth.

However, Lê Quốc Phương, former Deputy Director of Việt Nam Industry and trade Information Centre under the Ministry of Industry and Trade, warned that the price developments in the domestic market are dependent on global developments.

Updates from the General Statistics Office showed that CPI rose 4.08 per cent in the first half of this year. 

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