The EU - Vietnam Free Trade Agreement (EVFTA) has opened up unprecedentedly big opportunities for Vietnamese rice export. Thanks to preferential tariffs, the shipments of fragrant and high-quality rice to the EU have reaped encouraging results.

The Ministry of Industry and Trade said though rice export to the EU is not big in volume compared to other regional markets, it posts high added value since the 27 EU members consume mainly fragrant and high-quality grain from Vietnam. Domestic firms have made full use of the rice quota entitled to an import duty of 0% to boost shipments to the bloc, reported the Cong Thuong (Industry & Trade) newspaper.

In 2022, the country saw a sharp increase in rice export to the EU to 94,510 tonnes, surpassing the annual quota of 80,000 tonnes granted to Vietnam under the EVFTA. Prices of the produce sold to the EU stood at 688 USD per tonne, 41.4% higher than the general export price of 486 USD per tonne of Vietnamese rice, statistics show.

This indicates the quality of Vietnamese rice has been improved and satisfied strict requirements from demanding markets, and that enterprises have been making good use of the EVFTA.

In the first four months of 2023, Vietnam shipped nearly 2.9 million tonnes of rice worth almost 1.53 billion USD abroad, up 40.7% in volume and 51.6% in value from a year earlier. Export prices averaged 527 USD per tonne, rising 7.8%. Notably, exports to some EU markets surged such as the Netherlands 44%, Poland 68%, Spain 89%, and Belgium 149%.

With stable demand, especially for fragrant and high-quality rice, the EU is expected to remain a highly potential market for Vietnamese exporters, according to Cong Thuong.

Under the EVFTA, the EU granted Vietnam an annual export quota of 80,000 tonnes of rice, including 30,000 tonnes of milled, 20,000 tonnes of unmilled, and 30,000 tonnes of fragrant one. In particular, it will completely liberalise the export of broken rice, which will help Vietnam ship about 100,000 tonnes of this type of grain to this block each year. Meanwhile, import duties on products made from rice will be slashed to 0% after three - five years.

Vietnam to accelerate international economic integration: resolution

Vietnam will work to step up international integration in general and international economic integration in particular, significantly contributing to growth model reform towards sustainability, according to a government resolution.

Resolution No. 93/NQ-CP was issued on July 5, aiming to raise the efficiency of international economic integration, and spur economic development in a rapid, sustainable manner for the 2023-2030 period.

Its general objective is to successfully materialise major policies and guidelines adopted at the 13th National Party Congress in the context that Vietnam is implementing the 2021-2025 socio-economic development plan, and the 2021-2030 socio-economic development strategy.

It puts forward the main targets of building an economy of independence and self-reliance, promoting science-technology and innovation, quickly overcoming adverse impacts of the COVID-19 pandemic, raising Vietnam’s position in the international arena, and ensuring national security, among others.

Economic integration benefits should be transformed into specific outcomes in exports and imports, the document said, pointing to other tasks like improving the efficiency of capital use of the national economy, advancing Vietnam’s position in the global value chain, and perfecting and raising the quality of institutions and laws.

Under the resolution, Vietnam will continue with economic restructuring, push ahead with industrialisation and modernisation, and narrow development gaps with more developed countries in the region and the world.

The country will also enhance the public-private partnership, and mobilise social resources, including the support of multilateral mechanisms, non-governmental organisations and the business community, in the fulfillment of its international commitments, particularly those in free trade agreements (FTAs).

In the resolution, the government ordered the strengthening of the economy’s resilience to external negative impacts, as well as its response capacity against threats to trade and economic integration, consolidating the trade remedy system, and sharpening the competitiveness of the economy, businesses and products.

The document also stressed the need to raise the awareness of the role and position of international law in Vietnam’s economic integration, and develop high-quality personnel, meeting requirements of the Fourth Industrial Revolution, and intensive, extensive international integration.

Notably, the resolution touched upon digital economy integration, which it said helps Vietnam achieve targets set in the national strategy on digital economy and digital society development by 2025 with a vision towards 2030.

To that end, it set out the important solutions of reforming and perfecting economic institutions, improving the business environment and competitiveness, effectively implementing FTAs, boosting post-pandemic growth and sustainable development, and comprehensive integration in culture, social affairs, science-technology, and national defence and security.

Minister urges seizing opportunities to boost rice export

The chance has come and doesn’t wait any, so it is necessary seize it to step up rice export, Minister of Agriculture and Rural Development Le Minh Hoan told this ministry’s meeting on July 6.

Le Thanh Hoa, Deputy Director of the ministry’s Department of Quality, Processing and Market Development, said the rice sector’s outlook is assessed as relatively positive for the second half of 2023 since many other rice producers in Asia are facing risks of declined output due to El Nino impacts, which will boost rice demand and prices in the global market.

Vietnam exported 4.27 million tonnes of rice worth 2.3 billion USD in the first six months, rising 22.2% in volume and 34.7% in value year on year. Export prices averaged 539 USD per tonne, up 10.2% from a year earlier, data from the department show.

Bui Thi Thanh Tam, a representative of the Vietnam Food Association, said the Philippines is the biggest importer of Vietnamese rice. Shipments to China have also posted good growth since its reopening after the COVID-19 pandemic. Meanwhile, Indonesia has begun re-importing rice, so exports to this market have also shot up by up to 1,498%.

Rice export is benefiting from favourable conditions as major markets are still importing strongly such as China, the Philippines, and Malaysia, she noted, adding that this will make export prices increase, or at least not decline.

Rice demand is predicted to grow slightly as a result of limited supplies of other types of grain food. High-quality rice of Vietnam is currently a favourite of consumers in such demanding markets as Europe, the Republic of Korea and Australia or some new destinations like those in the Middle East, which is also an opportunity for boosting the sale of high-quality rice.

Exports are likely to rise further also thanks to higher-than-expected shipments to the Philippines, China, and Indonesia, according to Hoa.

The agriculture ministry said Vietnam plans to cultivate 7.1 million ha of rice in 2023, with average productivity estimated at 6.07 tonnes of unmilled grain per ha. Total output is expected at 43.11 million tonnes, up 400,000 tonnes from 2022.

About 3.3 million ha with 21.8 million tonnes of unmilled rice has been harvested so far. The remaining 3.75 million ha with 21 million tonnes will be harvested from now to January 2024.

Tam held that demand is growing even further as the General Department of State Reserves has opened rice stockpile bids. Therefore, aside from working to reach this year’s export targets, it is also important to guarantee national food security and the stockpile for early 2024.

Given the soaring global demand and difficulties facing businesses in production and quality improvement, Minister Hoan said the ministry will work with the Ministry of Industry and Trade as well as other sectors to soon tackle hindrances and help firms seize market opportunities.

They will also devise mechanisms and policies to assist the sector to improve quality and value and diversity export markets as in conformity with the strategy for developing rice export markets by 2030, he added.

Construction of terminal at Long Thanh int’l airport to begin in August

Work on a passenger terminal at Long Thanh International Airport in southern Dong Nai province is scheduled to start in August, the Airports Corporation of Vietnam (ACV) announced at a working session on July 6 with the provincial People's Committee.

The construction and equipment installation package for the terminal costs over 35 trillion VND (1.52 billion USD) and it will be carried out in 39 months, said the ACV - the project's investor.

In August, the construction of various components of the Long Thanh airport, such as a runway, taxiway, apron, and connecting roads, will commence.

According to the People's Committee of Long Thanh district, the Long Thanh airport is being built on an area of 5,000ha, with the first phase covering over 2,530ha. To date, the district has essentially completed land clearance for the first phase. As for the two connecting roads to the airport, the district is expediting land clearance.

About the construction of 11 social works in Loc An - Binh Son resettlement area spanning over 280ha in service of the airport, five of them have been completed and basically completed. The work on the remainders has been resumed after a long period of delay. Thousands of people have already relocated to the resettlement area.

Starting in 2021, the Long Thanh International Airport project covers six communes in Long Thanh district. It has total investment is 336.63 trillion VND and is divided into three phases.

In the first phase, a runway and one passenger terminal along with other supporting facilities will be built at a cost of 109.1 trillion VND to serve 25 million passengers and 1.2 million tonnes of cargo each year.

Once fully completed by 2050, the airport will be able to handle 100 million passengers and 5 million tonnes of cargo annually.

Located 40km east of Ho Chi Minh City, it is expected to relieve overloading at Tan Son Nhat International Airport, currently the country’s largest, in the southern metropolis.

Binh Phuoc works to improve foreign investment attraction

The southern province of Binh Phuoc has been implementing several groups of tasks and measures for fostering foreign investment cooperation so as to attract major foreign enterprises.

For the 2023 - 2030 period, Binh Phuoc, part of the southern key economic region, looks to attract foreign direct investment (FDI) projects that apply advanced and new technologies, have positive influence on domestic firms, and connect with global production and supply chains. It also aims to increase the FDI sector’s contributions to local socio-economic development on par with the preferential treatment those businesses receive.

In particular, the province hopes to raise the rate of registered investment capital from certain countries and territories to over 70% by 2030, namely Japan, the Republic of Korea, Singapore, Thailand, China, Taiwan (China), Hong Kong (China), the UK, France, Germany, the US, Australia, and New Zealand.

It is set to attract one to two multinationals among the Fortune Global 500, a list of the 500 biggest companies in the world compiled by the US-based Fortune magazine, and become one of the top 35 provinces and cities in the Provincial Competitiveness Index (PCI) rankings.

To that end, the provincial People’s Committee has requested sectors and localities carry out some tasks and measures, including improving the investment and business climate along with the quality, effectiveness and competitiveness of the local economy; developing an ecosystem of science-technology and innovation; and promoting competitiveness in foreign investment attraction.

Other measures include facilitating supporting industries and enhancing businesses’ connectivity; tapping into internal strength and competitive edges; enhancing the effectiveness of international economic integration; modernising and diversifying investment promotion; and strengthening the effectiveness and efficiency of the state management over foreign investment.

Regarding infrastructure development, Binh Phuoc will build plans with a strategic mindset and long-term vision to develop comprehensive and modern infrastructure that helps connect it with other localities in the region. Besides, it will create optimal conditions for all economic sectors, including foreign invested firms, to invest in infrastructure development.

Binh Phuoc is currently home to 12 operating industrial parks among the 13 planned ones. These parks is accommodating 380 projects, including 284 FDI projects with combined capital of nearly 3.5 billion USD and 96 domestic ones worth some 17.2 trillion VND (725 million USD). Businesses there have provided jobs for over 72,000 workers.

Located in the southeastern region and in the transition zone between the southern key economic region and the Central Highlands, the province boasts much potential and advantages for industry and trade. Experts held that Binh Phuoc is gradually transforming itself from a “development reserve” zone into a development impulse of the southeastern region.

More efforts to be exerted to simplify business conditions: Official

Cutting down business condition number is one of the key solutions that the Government has worked out to improve the business environment and national competitiveness in 2023, stated Deputy Minister of Planning and Investment (MPI) Tran Huy Dong at a conference in Hanoi on July 6.

This year, the inspection and check of business activities will be reformed to ensure they do not affect the normal operation of enterprises, along with measures to enhance the quality of supporting services for enterprises, said the official.

Dong noted that in the 2016-2019 period, about 50% of the business conditions were abolished, commenting that this is a positive result.

Dr. Nguyen Minh Thao, head of Business Environment and Competitiveness Department of the Central Institute for Economic Management (CIEM), cited a survey on conditional investment and business activities and business conditions in 15 fields, which shows that the quality of business conditions in some areas have been improved.

Thao said that business conditions in many areas have been designed in a systematic and clear manner, while many unreasonable conditions have been removed, contributing to enhancing transparency in law-building.

However, the expert held that the efforts to improve the business environment and business conditions are slowing down, while the barriers in business conditions have yet to be removed in some areas.

Deputy Minister Dong said that the MPI is reviewing all conditional business activities and business conditions in 15 areas under the management of ministries and sectors to explore existing problems in the field.

Participants noted that under the Investment Law 2020, the number of conditional investment and business activities is 227, but the real number is much higher, while overlapping and incoherence have still been seen in regulations on conditional business activities.

A representative from the CIEM pointed to major problems in the field, including the unreasonably large number of required certificates, the limitation in decentralisation in licence granting, and complicated administrative procedures in granting sub-licences.

The CIEM representative proposed that ministries and sectors continue to simplify and cut down business conditions. The Government should not raise more conditions that hinder investment and business activities when issuing new legal documents or amending existing ones, while enhancing the efficiency of consultation and verification of legal documents before issuance, said the representative.

At the event, representatives of some associations, businesses and experts expressed their hope that the Government will resume the programme to reform and improve the business environment, directing the implementation of solutions to improve the business environment, and strengthening the evaluation of the solutions’ efficiency.

HCM City’s export turnover drops 22.4% in H1

Ho Chi Minh City’s export turnover in the first half of this year reached an estimated 19.42 billion USD, down 22.4% year-on-year.

The total import turnover of enterprises of the country's economic locomotive through the national border gates in the period also decreased by 24.2% over the same period last year to 25.55 billion USD.

Statistics from the municipal Department of Customs show that the export value of computers, electronic products and components; aquatic products; and coffee via the municipal border gate in the January – June period respectively dropped by 31%, 37% and 30% year-on-year.

The situation was blamed on strong impacts from geopolitical conflicts, high global inflation, and a downward trend in consumption globally.

According to Dinh Ngoc Thang, Director of the municipal Department of Customs, the drop in the export and import value led to a decrease of 9.4% in the budget revenue from import and export activities in the period.  

Pham Binh An, Deputy Director of the HCM City Institute for Development Studies, said in the context of difficulties facing export activities, municipal authorities should focus on supporting specific sectors, and soon implement solutions to stimulate domestic consumption demand such as expanding consumer credit, establishing new commercial space such as river economy and night economy.

The city needs to restore business confidence by effectively implementing supportive policies on interest, credit, and taxes, he stressed.

Vietjet Air, EL AL Israel Airlines discuss cooperation

Leaders of Vietnam's budget carrier Vietjet Air and EL AL Israel Airlines had a working session in Israel on July 5 to discuss opportunities and prospects for cooperation in the near future.

Vietjet Air proposed cooperation with EL AL Airlines in the transportation of passengers and cargo and certain logistics services.

In the short term, the two airlines could explore code sharing services to take advantage of their respective flight networks aligning with each other's interests. In the long run, they might consider studying the possibility of opening direct routes between the two countries when conditions allow.

EL AL Airlines expressed its impression with Vietjet Air’s scale of operations, service quality, and development plans and agreed with the proposals put forth by the Vietnamese carrier.

Both sides concurred to maintain contact and further discuss specific details towards the signing of an agreement and promoting collaboration in relevant areas for mutual benefits.

To date, Vietjet Air has operated around 450 flights per day and 160 routes connecting Vietnam to countries in Asia, Europe, and Oceania. EL AL Airlines has code sharing agreements with 22 airlines worldwide, including Vietnam Airlines.

According to Le Thai Hoa, Vietnamese Trade Counselor in Israel, in early April, Vietnam and Israel announced the conclusion of bilateral negotiations on the Vietnam-Israel Free Trade Agreement (VIFTA). The two sides are reviewing and finalising the legal procedures for the official signing of the deal. Currently, their businesses are engaging in various transactions to seek investment, trade, and tourism cooperation opportunities.

Vietjet Air's expansion of cooperation with the Israeli aviation partner will diversify passenger and cargo transport services, creating favourable conditions for investment, business, and tourism activities between the two countries, said the official.

Mitani Sangyo group explores investment opportunities in Binh Duong

Secretary of the Party Committee of Binh Duong southern province Nguyen Van Loi held a meeting with Special Advisor of Mitani Sangyo group of Japan Mitani Mitsuru on July 6 to discuss investment possibilities.  

The Binh Duong leader welcomed the Japanese group to the province, and told the guest that Binh Duong has actively invested in modern and uniform technical infrastructure.

According to Loi, the province now is home to 4,120 foreign-invested projects of 65 countries and territories with total registered capital of over 40 billion USD. Japan is the second biggest foreign investor in Binh Duong with 344 projects worth nearly 6 billion USD.

The official said he hopes Mitani Sangyo will continue to expand investment in Binh Duong, stressing that the combination of the Japanese group’s strengths in finance, technology, international markets and business administration and Binh Duong’s advantages will generate great benefits to both sides.

He pledged that the province’s authorities are committed to creating the best possible conditions for foreign investors, including those from Japan.

Mitani said Mitani Sangyo, operating in chemicals, resin, information systems, air conditioning systems, and energy, entered Vietnam in 1994.

He added that the group plans to conduct a survey on further investment opportunities in Vietnam in November this year.

Binh Thuan province develops dragon fruit value chain

The People's Committee of the south-central province of Binh Thuan is seeking ways to facilitate the sustainable development of its dragon fruit production chain.

The province targets to improve economic efficiency for cooperatives and businesses, while increasing competitiveness and expanding the fruit's consumption.

At a workshop late last week to connect local enterprises with partners at home and abroad to expand the market for dragon fruit, experts said the province needed to focus on producing organic dragon fruit and developing a production roadmap to meet the needs of market diversification.

Accordingly, the plan would help expand the green dragon fruit export market, increase export volume to traditional export markets and enhance trade promotion activities.

At present, Binh Thuan mainly produces fresh dragon fruit, of which 80-85% are for export and about 15-20% are for the domestic market.

Binh Thuan province now encourages farmers to increase product quality in dragon fruit production while not expanding production areas for the sustainable development of this product.

Nguyen Duc Tri, Deputy Director of the provincial Agricultural Extension Center, said VietGAP standards are also applied for the sustainable development of dragon fruit production. That has increased the value of dragon fruit products and met the demand of export markets. On the other hand, the use of pesticides is also minimised, increasing the prestige and quality of Binh Thuan dragon fruit products.

By the end of 2022, the area of dragon fruit trees in the province was about 26,977 hectares, down 5,283 hectares compared to 2021; production reached more than 600,000 tonnes. In the period of 2020-2022, the whole province had only 9,063 hectares of dragon fruits that met VietGAP standards.

Binh Thuan province is forming a dragon fruit production region with high technology in the districts of Ham Thuan Nam and Ham Thuan Bac.

The Binh Thuan Department of Agriculture and Rural Development has also requested the Sub-Department of Crop Production and Plant Protection and relevant agencies to strengthen the management and supervision of the use of planting region codes and codes of dragon fruit packing establishments that have been granted to organisations and individuals in the province.

It would also coordinate with the Market Management Department to strengthen inspection and control of the labelling at dragon fruit packaging facilities in accordance with existing regulations.

Binh Thuan’s dragon fruit has been exported to 17 countries such as India, China and Malaysia.

Cambodian tourists to Vietnam surge by 338% in H1

With an annual increase of 338% recorded during the first half of the year, Cambodian tourists saw the largest growth among global visitor numbers during the country’s significant post-pandemic recovery period, according to online newspaper Khmer Times.

Cambodian nationals now constitute the largest growing segment of the Vietnam tourism market, the Cambodia-based media outlet stressed.

Elsewhere, Cambodian tourists were closely followed by Indian travelers, which witnessed growth of 236% compared to 2019. Laos came third with a growth rate of 117%, followed by Thailand with an increase of 108%, and Singapore, up 107%.

The Khmer Times also noted that Vietnamese tourism offerings include a visa-free stay of up to one month for citizens of Thailand, Singapore, Indonesia, Cambodia, and Laos, which serves to make the nation a great attraction among tourists originating from Southeast Asia.

The central beach city of Da Nang, the ancient town of Hoi An, Da Lat – the city of thousand flowers in the Central Highlands region, Nha Trang, Vung Tau, and the “Paradise Pearl Island” of Phu Quoc are some of the top Vietnamese destinations among Cambodian tourists, it wrote.

As well as for tourism, many Cambodians regularly visit the country for medical purposes, the article added.

Singapore Regional Business Forum 2023 to get underway in Hanoi

The Singapore Regional Business Forum 2023 (SRBF) is set to take place on July 7 in Hanoi and will feature the participation of over 500 top business leaders, senior government officials, policy makers, and diplomats from more than 30 countries around the globe.      

The event is part of activities to mark the 50th anniversary of bilateral relationship and 10th anniversary of the Strategic Partnership between both sides.

Under the theme of “Strengthening Regional Collaboration for Sustainable Growth”, the forum aims to expand economic relations and foster close ties between the two countries.

A number of discussions will therefore be held during the course of the event, with a specific focus on sustainable development, technological innovation in ASEAN's digitalisation, and the future of human resources.

Furthermore, a variety of sideline activities will be held at the forum, including the signing of memorandum of understanding (MOU), a business matching event, and exhibitions to help firms explore investment opportunities in the region.

Most notably, the Singapore Business Federation (SBF) will lead a delegation of 25 Singapore businesses operating in the fields of business services, manufacturing, and consumer goods to the Vietnamese market in order to get greater insights into business climate and promote bilateral ties.

Vietnam to resume swift medium-term economic growth

The nation is poised to resume rapid economic growth over the medium-term economic outlook, with the “rising star” being one of the fastest growing emerging markets in Asia, according to details given by foreign newswires.      

In an article published on the website of S&P Global Market Intelligence, Asia Pacific Chief Economist Rajiv Biswas outlined that Vietnam is expected to continue to be a key beneficiary of the shift in global manufacturing supply chains towards competitive Southeast Asian manufacturing hubs.

He stated that the country will continue to benefit from its relatively lower manufacturing wage costs relative to coastal Chinese provinces. Indeed, it boasts a relatively large, well-educated labour force compared to many other regional competitors throughout the region, thereby making it an attractive hub for manufacturing production by multinationals. Along with this, many multinationals have been in the process of diversifying their manufacturing supply chains during the past decade as they seek to reduce vulnerability to supply disruptions and geopolitical events. 

The nation is also set to benefit from its growing network of free trade agreements such as the ASEAN Free Trade Agreement (AFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP), Biswas added.

The Economic Times explained that the country is among the economies likely to benefit from the global supply chain changes, whilst it has done relatively well in attracting big names over the past few years such as Samsung, Apple, Google, Nike, and Adidas.

On Eurasia Review, analyst and journalist Matija Šerić cited PricewaterhouseCoopers as saying that the nation is already a regional (middle) power, and in the future it could become an even stronger power in Asia and in the Indo-Pacific region as a whole, with its influence potential being even wider. By 2050, the Vietnamese economy could be the 10th largest in the world. 

Experts therefore include Vietnam among the group of Next-11 countries, including Egypt, Mexico, Nigeria, and others, which together with the BRICS (Brazil, Russia, India, China, and South Africa) will be among the largest world economies of the 21st century.

Šerić noted that there are three main factors that have contributed to the rapid rise of GDP growth, production, and investments. The first factor refers to the almost maximum liberalisation of trade with Asia and the rest of the world, with another factor being domestic reforms through the deregulation of the economy and the lowering of labour prices. The third important factor is large investments through public investments in human and material capital.

The International Monetary Fund (IMF) projected that Vietnamese economic growth will recover in the second half of the year, hitting roughly around 4.7% for the year, supported by a rebound in both exports and expansionary domestic policies. Inflation is also projected to remain contained below the State Bank of Vietnam’s 4.5% ceiling. 

Participants in the 14th Annual Meeting of the New Champions of the World Economic Forum (WEF) in Tianjin, China, in late June outlined that Vietnam is one of the bright spots in terms of economic recovery in the region and a successful example in the pandemic combat, whilst also playing a pioneering role in changing its growth model and committing to energy transition.

Titled “Vietnam: A rising star in emerging markets”, an article published on US-based websiteportfolio-adviser.com outlines there is frequent hope that the nation will be upgraded from its current, off-benchmark, frontier market status to emerging market status by the MSCI. This comes amid its stock market now meeting the size and liquidity requirements to be included, with a four-fold surge in retail participation during recent years driven by digital account technology.

However, the limiting factor is the strict foreign ownership limits (FOLs) that constrict the market depth, it added.

Ha Noi calls for stronger investment from India in Hoa Lac Hi-Tech Park

Ha Noi is inviting Indian enterprises, renowned for their strength in the information technology industry, to invest in the Hoa Lac Hi-Tech Park.

The call was made during a meeting between Sandeep Arya, Ambassador Extraordinary and Plenipotentiary of India to Viet Nam, and Dinh Tien Dung, Secretary of the Ha Noi Party Committee on Tuesday.

During the meeting, the emphasis was on reaffirming the enduring Friendship and Comprehensive Strategic Partnership between Viet Nam and India. Notably, the collaboration between Ha Noi and the Indian Embassy has been marked by joint initiatives like the highly successful International Yoga Day event since 2015, drawing enthusiastic support from the local populace.

However, with Indian investment in Ha Noi yet to match its potential, Ha Noi is redoubling efforts to develop the Hoa Lac Hi-Tech Park, which will be transferred from the Ministry of Science and Technology to the municipal People's Committee, and enhance infrastructure to attract domestic and foreign investors, particularly in technology sectors such as manufacturing, energy, information, and communication.

Spanning 380 hectares, the Hoa Lac Hi-Tech Park has already attracted 106 projects with a total capital investment of VND85.6 trillion and USD$702.5 million. Ha Noi eagerly looks forward to receiving increased investments from Indian entrepreneurs in sectors where they excel, such as pharmaceuticals, processing and manufacturing, ICT, energy, hi-tech agriculture, innovation and infrastructure development.

The city aims to elevate the friendly ties between Viet nam and India and foster a stronger partnership between the capital cities of Ha Noi and Delhi.

Ambassador Arya conveyed the Indian Government's keen interest in seeking new development opportunities and fostering investment and trade cooperation with Viet Nam, particularly in high technology, energy, agriculture, and pharmaceuticals. This signifies a promising future for the collaboration between the two nations. 

More than 4,600 digital transformation domain names issued

More than 4,600 domain names with new domain extensions AI.VN, IO.VN and ID.VN have been issued in the first 19 days since they became available.

Three new domain name extensions associated with digital transformation including AI.VN, ID.VN and IO.VN have been open for people to register for since June 1.

In particular, ID.VN is for Vietnamese citizens registered to promote personal images, products and brands through websites, online CVs, or blogs.

IO.VN is for organisations and individuals to register to use digital technology applications, platforms and services online.

AI.VN is for organisations and individuals registered for activities and services related to the field of artificial intelligence (AI).

Circular 20 dated April 13, 2023, of the Ministry of Finance on the schedule of fees and charges for internet resources took effect from the beginning of this month.

The highlight of the new circular is the preferential policy of fees and charges in the registration and use of domain names in order to facilitate and encourage people and businesses to exploit the values of using .VN domain names. This especially applies to those associated with digital services such as e-commerce, blogging, and email solutions. All of this contributes to the development of the digital economy and society.

A representative of the Vietnam Internet Network Information Centre (VNNIC) said that according to Circular 20, the registration fee for most .VN domain names has been reduced deeply, with the most heavily discounted seeing a 91.6 per cent drop in price.

These incentives are adjusted to ensure wide coverage of users. Businesses and individuals can easily own national domain names and apply them to real use cases such as opening online stores and building personal brands.

In the newly updated circular on June 19, VNNIC said that the new domain name space policy for digital transformation has met the needs of people and businesses.

According to statistics, after 19 days, registrars have issued more than 4,600 domain names with new domain extensions AI.VN, IO.VN and ID.VN, accounting for about 36 per cent of newly-issued domain names in one month.

Notably, VNNIC's data has recorded the trend of personal branding on the internet.

Specifically, immidiately after the new domain name extension ID.VN was opened, there were nearly 2,000 registered domains and now the number is in excess of 3,100. 

State budget takes hit as foreign trade plummets

The state budget has suffered a significant blow as import-export revenue has declined, according to official data.
From January to June, foreign trade plunged 15%, resulting in a 19.9% year-on-year drop in state budget revenue.

The General Department of Vietnam Customs reported that state budget revenue from import-export activities in the first half of the year totaled over VND183.7 trillion, equivalent to 43.23% of the projected amount.

Although there was a 3.6% month-on-month increase in the total value of imported and exported goods in June, the cumulative figures for the first six months still edged down.

The total value of Vietnam’s imports and exports in the first half of the year dropped 15.1% year-on-year to US$316.6 billion, equivalent to a fall of US$56.54 billion.

To reach the budget revenue target of VND425 trillion assigned by the National Assembly this year, Vietnam Customs plans to collaborate closely with various ministries and sectors to implement the national single window mechanism and the ASEAN single window mechanism to create favorable conditions for trade with other Southeast Asian nations.

The customs is focused on developing a comprehensive plan to enhance the information technology system, adopting a centralized processing approach. Additionally, an action plan is underway to implement the national single window mechanism throughout 2023, with the goal of streamlining customs procedures and improving efficiency.

VNDirect forecasts 2023 credit growth at 10%

Credit may expand a mere 10% in all of 2023, way below the State Bank of Vietnam’s (SBV) target of 14-15%, according to a recent report by the local securities brokerage VNDirect.

The report, released on July 4, assesses the impacts of the SBV’s Circular 06/2023, which imposes stricter lending requirements.

The SBV has cut key interest rates four times over a period of four months. In response, commercial banks have implemented rigorous lending policy.

Data from VNDirect showed that many banks have reduced interest rates for both existing and new loans by 50 to 100 basis points, with even larger reductions for consumer loans with collateral, working capital supplementation, and loans for business operations.

While the substantial cuts of lending rates pose risks, such as the potential allocation of cheap funding toward substandard projects, Circular 06/2023 aims to address these concerns. It highlights the need for increased monitoring of borrowers’ business operations and repayment sources.

These measures aim to mitigate potential risks and prevent the accumulation of non-performing loans in the future.

To bolster lending practices, Circular 06/2023 adds conditions for non-lendable capital needs and requires banks to enhance their loan request approval process for debt restructuring and loans for securities investment and real estate deals. These strengthened disbursement regulations are designed to redirect credit towards high-value projects.

In a bid to address riskier lending practices, the circular introduces three major provisions. First, it restricts lending to customers in potential high-risk groups.

Second, it emphasizes the need for enhanced monitoring by commercial banks when granting loans for securities investment and real estate transactions. Lastly, it establishes a legal framework for loans approved through electronic means.

With tighter lending regulations, there may be a potential slowdown in credit growth in the short term, VNDirect said. As of June 15, credit growth had reached a meager 3.36%, the lowest level in a decade.

However, the long-term perspective assures overall economic safety, VNDirect noted.

Recognizing the increasing demand for electronically approved loans, the SBV has established a legal framework to support these operations. This includes risk assessment procedures, document archiving, and regulations limiting the maximum loan balance per customer at a single lender.

VNDirect views these developments as positive signals for the growth of consumer lending in the market. By the end of 2022, consumer loans provided by consumer finance companies are projected at nearly VND220 trillion, a staggering 82% increase compared to the previous year, accounting for 8.5% of the total outstanding consumer loans within the system.

Longest mountain tunnelling completed for North-South Expressway

Local constractors in the south-central province of Ninh Thuan have finished tunnel boring through Nui Vung, the longest mountain tunnel on the North-South Expressway project.
The Nui Vung Tunnel component is being implemented under the build-operate-transfer format at a total cost of VND1.6 trillion.

The 2.2-kilometer tunnel is a crucial part of the Cam Lam-Vinh Hao Expressway, which is a section of the North-South Expressway project.

The Cam Lam-Vinh Hao Expressway project is planned to be completed by the Reunification Day on April 30, 2024.

Once fully operational, Cam Lam-Vinh Hao Expressway will help improve traffic connectivity between HCMC and Nha Trang City in Khanh Hoa Province, providing an alternative to National Highway 1A.

Two more stocks disallowed for trading in Q3

The Hochiminh Stock Exchange, or HOSE, today, July 5, released a list of 76 stocks and fund certificates ineligible for margin trading in the third quarter of this year, two stocks higher than the previous list published in the second quarter.

The list includes stocks frequently under warning or control by authorities, such as ABS, TGG, HBC, HNG, HVN, ITA, LDG, NVT, PMG, POM, QBS, SCD and APC.

Margin trading restrictions have also been imposed on several stocks, such as NKG, APH, DC4, DTL, LEC, MHC, PSH, PVD, SMC, SRF, TSC and VJC. These companies suffered accumulated losses, according to their financial statements.

Another reason for the restrictions is that some companies have failed to file their audited financial statements on time.

Additionally, some other stocks and fund certificates listed for less than six months are also ineligible for margin trading, including PVP, FUEFCV50 and FUEMAVND.

Other fund certificates, including FUCTVGF3, FUCVREIT, FUEDCMID, FUEIP100, FUEKIVFS and FUEKIV30, have been subject to margin trading restrictions as their indicative net asset value (iNAV) is lower than the par value based on the monthly report on NAV Changes for three consecutive months.

Investors will not be able to use the credit limit provided by brokerage companies to buy these stocks and fund certificates.

Japan to provide Vietnam with over VND10.6 trillion in ODA

The Japan International Cooperation Agency (JICA) has signed three agreements with the Vietnamese Government to provide official development assistance (ODA) loans totaling over VND10.6 trillion.

These agreements mark a significant milestone in the celebration of the 50th anniversary of Vietnam-Japan diplomatic relations.

The ODA loans will support three crucial projects in Vietnam. The largest portion, around VND8.75 trillion, will go to the economic and social development recovery program, aimed at revitalizing the country’s economy post pandemic.

The second project focuses on the renovation of public transportation infrastructure in Binh Duong Province, with a value of around VND1.1 trillion. The objective is to establish a high-speed bus system that connects Binh Duong, HCMC, and Dong Nai, facilitating efficient transportation between these areas.

The remaining loan, around VND829 billion, will be utilized to support the development of agricultural infrastructure in the Central Highlands province of Lam Dong. This includes improving transportation facilities, irrigation systems, and establishing flower trading centers.

The signing ceremony for these ODA agreements took place on July 4, with representatives from JICA and Vietnam coming together to solidify the partnership.

At least 3,200 int’l tourists to come to Hue by October

The central province of Thua Thien-Hue is set to welcome at least 3,200 visitors from China and Northeast Asian countries in the next four months.

There will be four to six trips carrying travelers from China and other countries in Northeast Asia every month until late October, Nguyen Van Phuc, director of the provincial Department of Tourism, told The Saigon Times.

Recently, the Phu Bai International Airport received 230 visitors from Kunming, China on July 2.

To boost tourism, the provincial government has introduced a 50% fee discount on admission to the historic Hue relic sites. Various welcome activities, including Hue Royal music performances and gift-giving events, have been organized at Ngo Mon Gate (Noon Gate), the main southern entry to the Hue Imperial Citadel.

The Department of Tourism has advised the provincial government to support airlines and tour operators to bring in more visitors.

Thua Thien-Hue is actively preparing for the Four Seasons Festival project, which is aimed at attracting visitors from around the world throughout the year.

This effort is expected to significantly contribute to the growth of the tourism industry and socioeconomic development in the province.

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