Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has suggested sectors and localities take more measures to remove difficulties facing small- and medium-sized enterprises (SMEs), stressing that policy solutions are needed to help businesses access capital.

Speaking at a meeting between permanent Government members and the executive committee of the Vietnam Association of Small and Medium Enterprises (SMEs) in Hanoi on July 6 to seek solutions to challenges facing SMEs, Hong recommended the Government organise a conference to review the implementation of support policies for SMEs in accordance with the Law on Support for SMEs, thus finding effective measures to address issues faced by enterprises.

The banking sector has set interest rate caps for loans in priority sectors, including SMEs, along with other policies, she noted.

Enhancing the effectiveness of local credit guarantee funds is crucial because local authorities have the best understanding of businesses' operation within their jurisdiction, Hong said, expressing her belief that the allocation of resources to guarantee loans for SMEs will help credit grow higher and SMEs receive more support.

To access capital, SMEs themselves need to address limitations that hinder banks from making lending decisions, and they should also improve their business management capabilities, financial situations, and enhance transparency in information reporting, Hong said.

The SBV will continue to closely follow the Government's guidance and economic and monetary developments, and coordinate with relevant ministries and sectors to help businesses and people in general, and SMEs in particular address difficulties, she stated.

According to the governor, the central bank has cut regulatory interest rates for four consecutive times since the beginning of this year.

The SBV is one of the few central banks in the world to reduce interest rates. Credit institutions are also actively reducing interest rates with the average interest rate decreasing by about 1% compared to the end of 2022.

The SBV regularly directs credit institutions to review loan procedures, thus making it easier for enterprises to access capital in accordance with legal provisions.

The central bank has made efforts to create favourable conditions for businesses to access loans through issuing Circular 02/2023/TT-NHNN on the rescheduling of debt payment and maintaining debt groups by credit institutions and foreign bank branches to support borrowers in difficulties.

Hong emphasised the importance of interaction between banks and businesses, saying that this will help identify difficulties and obstacles in order to collaboratively address them in compliance with legal regulations.

Singapore Regional Business Forum takes place in Hanoi

Deputy Prime Minister Le Minh Khai spoke highly of the effective cooperation between Vietnam and Singapore, while addressing the seventh Singapore Regional Business Forum (SRBF) in Hanoi on July 7.

This is the first time the forum has been held outside Singapore.

Khai told participants that Singapore currently ranks second among the 143 countries and territories pouring capital into Vietnam, with over 3,200 projects totaling 73.4 billion USD.

Singaporean investors have been participating in most of Vietnam's economic sectors and fields and have always implemented their projects seriously. Meanwhile, Vietnamese businesses have invested in nearly 150 projects in Singapore with a total registered capital of nearly 700 million USD, mainly in professional activities, science and technology.

According to the Deputy PM, these cooperation results are encouraging, but have yet to meet both sides’ potential.

He expressed his hope that with high determination, joint efforts of the two countries, and close friendship of the two peoples, economic cooperation will remain an important pillar in the bilateral relations and a driving force to lift the ties to a new height.

The Vietnamese Government is committed to always listening to, accompanying, supporting and creating all favourable conditions for foreign enterprises, including those from Singapore, to run effective, long-term and sustainable business and investment in Vietnam, added Khai.

On this occasion, the Singapore Business Federation (SBF) – the organiser of the forum - is bringing a delegation of 25 Singapore businesses to Hanoi from July 5 to 8 to learn about Vietnam’s business climate, and culture, and to promote cooperation with local enterprises.

North-central localities look to boost export to Laos, Thailand

A conference to promote trade activities between businesses of six north-central provinces and those of Laos and Thailand took place in Dong Hoi city of Quang Binh province on July 7.

Jointly hosted by the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) and the provincial Department of Industry and Trade, the event is part of a project of the National Programme on Trade Promotion in 2023 approved by the ministry. It saw the participation of over 230 delegates from the ministry, the Vietnamese Consulate Generals in Savannakhet of Laos, and Thailand's Khon Kaen; and businesses of the three nations.

In his opening remarks, Director of the provincial Department of Industry and Trade Pham Quang Hai said the conference aims to create opportunities for exchange, cooperation, market expansion, and trade connectivity to promote the export of goods between Thua Thien – Hue, Quang Tri, Quang Binh, Ha Tinh, Nghe An and Thanh Hoa provinces of Vietnam and enterprises and distributors from Laos and Thailand.

It is hoped to contribute to enhancing competitiveness and promoting business and production activities of enterprises, and fully tapping opportunities and benefits of new-generation multilateral and bilateral trade agreements signed between Vietnam and Laos, and Thailand, Hai said.

Vice Chairman of the People’s Committee of Quang Binh Doan Ngoc Lam briefed participants on the locality’s potential and strengths, saying that this offers a chance for businesses in and outside the locality to seek partners and expand market, towards boosting export activities between the three countries.

According to Chu Duc Dung, Consul General of Vietnam in Khon Kaen, two-way trade between Vietnam and Thailand reached 21.56 billion USD in 2022. Thailand remains the largest trading partner of Vietnam in ASEAN, while Vietnam is the second-largest trade partner of Thailand in the region and the sixth-largest in the world.

Thailand has so far had 677 investment projects worth 13.09 billion USD in Vietnam, ranking 9th among the largest foreign investors in Vietnam.

The Vietnamese and Thai states need to have incentive policies to facilitate good exchange, thus boosting export between the two countries, Dung said.

On the occasion, 15 Memorandums of Understanding (MoU) on cooperation between businesses in the north-central provinces of Vietnam and those from Laos and Thailand were signed.

Tra Vinh province develops agricultural tourism

The Cuu Long (Mekong) Delta province of Tra Vinh is focusing on developing agricultural and rural tourism to improve incomes for rural people.

Duong Hoang Sum, Director of the province's Department of Culture, Sports and Tourism, said the province plans to develop tourism in combination with promoting its advantages of agriculture, craft villages, culture and biological environment, and this will help develop the rural economy sustainably.

It will develop and standardise tourism destinations and rural tourism products, he said.

It aims for half of its agricultural and rural tourism service establishments to meet the standards of serving tourists by 2025.

It is assisting households and companies to build the digital data and maps of rural tourism destinations, and providing professional skills to serve tourists for people working in agricultural and rural tourism services.  

It will mobilise various sources to develop rural tourism, use technology and digital transformation, and strengthen the co-operation among related sectors to develop tourism.

The province has developed green and sustainable tourism products and tourism destinations related to history, ancient architect, culture, spiritual festivals, rivers and orchards.

It has three community-based tourism destinations – Chim riverine island in Chau Thanh district, Ho riverine island in Cang Long district and My Long fishing and marine village in Cau Ngang district.

Chim riverine island is located on Co Chien river in Hoa Minh commune and is about 10km away from Tra Vinh city’s centre.

The island began to offer community-based tourism services in 2019 and has become a well-known tourism destination.

Nguyen Thi Bich Van, head of the island community-based tourism services group, said after offering tourism services, the island has a new look as roads have flowers and trees planted next to them and houses are decorated beautifully.

Visiting the island, tourists will be served traditional dishes such as ‘banh xeo’ (crispy Vietnamese pancake made from rice flour outside, shrimp meat, bean sprouts and other ingredients inside), steamed shrimp, grilled fish and the delta’s other traditional foods, she said.

“All ingredients used for making these dishes are fresh, and cultivated or caught in nature by local farmers so tourists like the dishes,” she said.

The island has a total area of 62ha and 55 households whose main occupations are growing rice and breeding shrimp.

Of the 55 households, more than 20 participate in offering tourism services and their lives have been improved significantly.

Each tourism household makes one traditional dish or offers traditional games, and they co-operate together to serve many dishes for tourists at a same time.

Visiting the island, tourists can play traditional games, ride bicycles, walk in fruit orchards, row boats, cook local foods, and catch fish, shrimp and crab. 

To develop community-based tourism, the province gives 50 million VND (2,100 USD) for each household that offers tourism services to invest in tourism service facilities.

The province has instructed these houses to build bamboo and thatched roof houses to serve tourists and strictly manage tourism services activities to secure their quality.

Tra Vinh has advantages for developing agricultural and rural tourism as it has a coastline of 65km, and is located 130km away from Ho Chi Minh City between the Tien and Hau rivers, two tributaries of the Mekong River.

It has diversified natural tourism resources, with a dense river and canal network, many riverine islands with fruit orchards and friendly local people.

It has many popular tourism destinations such as  Ba Om pond and Ang pagoda complex in the city of Tra Vinh, which were recognised as national cultural and historic heritages in 1994.

Vietnamese company develops wind power project in Laos

An agreement signing ceremony to develop a wind power plant project in Savannakhet province was held in Vientiane on July 6 between representatives of the Lao Government and Vietnam's AMI Renewables Quang Binh Investment Joint Stock Company.

Speaking at the event, Lao Deputy Minister of Planning and Investment Sthabandith Insisienmay emphaised that energy development is one of the potential fields and comes in line with Laos' socio-economic development orientation, adding that the work has been included in the list of projects selling electricity to Vietnam by 2025.

He expressed his hope that the investor will closely coordinate with ministries, sectors and locality to carry out the project in timely fashion and implement their rights and obligations under the signed contract.

For his part, Nguyen Nam Thang, Chairman of the Board of Directors of AMI Renewables Quang Binh, affirmed that his company will strive to complete the work ahead of schedule, making practical and effective contributions to economic cooperation between Quang Binh and Savannakhet provinces in particular and the two countries at large in the new period.

With a total capacity of 1,220 MW, the AMI Savannakhet Wind Power Plant project has a total investment of over 2 billion USD, the largest in the energy field of Vietnam invested in Laos.

The project will be a symbol of special solidarity and comprehensive cooperation between Quang Binh and Savannakhet in particular and the two countries in general. In addition, the project will play an important role in economic development, ensuring energy security, and contributing to national defense and security in the Vietnam-Laos border area in Quang Binh.

VinFast kicks off EV exhibition series

VinFast, the subsidiary automaker of Vietnamese conglomerate Vingroup, launched the exhibition series "VinFast - For a Green Future" in Hanoi on July 7.

The series gives the public a look at VinFast’s six-year journey from the first Vietnamese automotive company to a global smart electric vehicle (EV) maker. It is also the largest series of electric mobility exhibitions ever held in the country, with 11 provinces and cities hosting the events from July 7 to September 17.

At the first exhibition, held at the Viet Xo Friendship Labour Cultural Palace in Hanoi from July 7 to 9, the firm displays its comprehensive electric mobility ecosystem, including e-bikes, e-scooters, electric cars, and e-buses.

It also debuted three new e-car models, namely VF 3, VF 6 and VF 7, along with the first e-bike model for the domestic market.

Binh Dinh province calls for more Japanese investment

The south-central coastal province of Binh Dinh always wants to strengthen cooperation with Japanese firms, a local official affirmed at an investment and trade promotion conference in Quy Nhon city on July 7.

Secretary of the provincial Party Committee Ho Quoc Dung highlighted the areas where Japan has strengths and Binh Dinh has demand like machine manufacturing, mechanics, software, AI, high-tech agriculture, environment, automation, logistics, health care, education and labour.

Dung expressed his hope that Japanese enterprises will expand their investment in Binh Dinh, and support local businesses in joining supply and value chains at a higher level.

Chairman of the provincial People’s Committee Pham Anh Tuan affirmed that Binh Dinh stands ready to follow the Government’s regulations on new incentives as the global minimum tax rate will be put in place next year.

He said apart from upgrading its infrastructure, Binh Dinh has paid attention to administrative reform and improving relations between investors, businesses and authorities.

According to the official, the locality is calling for Japanese investors in 24 projects, including four in social welfare and environment; 11 in industry; four in tourism; three in trade, service and logistics; and two in high-tech agro-forestry-fishery.

Deputy Minister of Planning and Investment Do Thanh Trung also called for Japanese investments in support industries, electronics and spare parts, science-technology, innovation, research and development, green economy, digital economy, circular economy, knowledge-based economy, new energy, renewable energy and eco-industrial parks associated with smart urban areas.

The deputy minister noted his hope that Japanese businesses will step up cooperation in high-quality personnel training and exchange experience in business administration.

Since 2013, Binh Dinh has established close relations with Japan’s Sakai city and Kansai region. In 2019, the locality and Izumisano city of Japan’s Osaka also signed a Memorandum of Understanding to enhance collaboration and set up cooperative ties in administration, culture, tourism and training, among other fields.

Binh Dinh has attracted 19 Japanese projects, making 22% of the total FDI projects in the locality, with a total registered capital of 94.17 million USD, covering industry, trade, services and agriculture.  

A number of cooperation documents were signed on this occasion.

Vietnam, France eye green, sustainable development

The Vietnam-France 2023 Economic Forum, themed "Towards green and sustainable development", was held in Hanoi on July 7, aiming to honour the close relationship between the two countries as well as offer a chance for policy makers, businesses and scholars to exchange cooperation plans.

The event is part of a series of activities to celebrate the 50th anniversary of Vietnam-France diplomatic relations and the 10th founding anniversary of their bilateral strategic partnership.

At the forum, Assoc. Prof. Dr. Pham Bao Son, Vice President of Vietnam National University (VNU), Hanoi said through many years of close partnership, Vietnam and France have demonstrated their commitment and consensus in protecting the environment, using resources in a sustainable way, developing green economic and circular economic models based on modern technology and innovation.

Tireless efforts have been made by the two countries to develop appropriate infrastructure and policies, thereby creating opportunities for cooperation and common development, he went on.

Vietnam, with its significant potential in clean energy, and France, boasting experience and advanced technology, will create a unique, close and friendly cooperation to achieve the goal of sustainable and greener development for both countries, Son noted.

According to French Ambassador to Vietnam Nicolas Warnery, the two countries' trade turnover has increased fivefold to 16 billion EUR (17.4 billion USD) in the 2010-2022 period. Major French companies along with many small- and medium-sized enterprises have been present in Vietnam, while a growing number of big Vietnamese corporations, including tech giant FPT and electric vehicle maker VinFast, have invested in France.

The diplomat said that with the net-zero commitment, the Government of Vietnam has shown a strong determination in responding to climate change and is in the process of realising this commitment, with phasing out fossil energy as the first move.

Another move is signing agreements with the Group of Seven (G7) development partners on the Just Energy Transition Partnership (JETP), he added, saying that this relationship has set ambitious targets for reducing greenhouse gas emissions and increasing the share of electricity from renewable energy in the national power source structure.

Three main topics discussed at the forum are economic relationship between France and Vietnam: challenges and prospects; France's green growth policy and recommendations for Vietnam; and sustainable development and social responsibility in the higher education environment.

Through discussion, experts from Vietnam and France made useful recommendations to strength the two nations' economic, commercial, institutional, environmental and social resilience.

In the energy sector, France has been investing in renewable energy sources to reduce its dependence on fossil fuels, with the goal of achieving 40% of its electricity production from renewables by 2030.

For the sustainable transport sector, the French Government supports electric vehicles and develops infrastructure to achieve 35% of sales of new electric or hydrogen passenger cars by 2030 and 100% in 2040.

It also strongly supports green finance through comprehensive subsidy programmes such as tax support and the development of financial instruments, experts said.

Ba Ria – Vung Tau to become national marine economic hub

The southern coastal province of Ba Ria-Vung Tau aims to become a national marine economic hub and a maritime service centre of Southeast Asia by 2050.

According to the province’s master plan for the 2021-2030 period, with a vision to 2050, which is awaiting approval, the locality will become a centrally-run city with multi-centre urban structure and multimodal transport infrastructure.

It is also set to develop into a gateway to the sea and an industrial centre of the Southeastern region, as well as an international-class high-quality tourism centre.

The locality will develop in a comprehensive, dynamic, and sustainable way, on the basis of “ good infrastructure, good environment and good human resources”.

During a conference in May, Secretary of the provincial Party Committee Pham Viet Thanh said the master plan has been refined based on feedback and recommendations of the national appraisal council, ministries, central agencies, sectors, experts, scientists and the public. The master plan also keeps abreast with development orientations of the country in general and the Southeastern region in particular.

 The conference to give opinions on the province’s master plan for the 2021-2030 period, with a vision to 2050 (Photo: VNA)

Vice Chairman of the provincial People’s Committee Nguyen Cong Vinh said Ba Ria-Vung Tau will focus on carrying out development breakthroughs, including completing regional and inter-regional connectivity routes, developing a seaport system, forming a national-level logistics centre, and establishing a free trade area in Cai Mep Ha, attracting strategic investors, designing a complete and synchronous ecosystem applying international standards.

The province will also work to form tourism urban areas with the aim of turning it into an entertainment and resort centre of international standards, and establish hi-tech industrial parks to attract investors and human resources in advanced production industries.

From now to 2050, Ba Ria-Vung Tau will continue modernising its infrastructure system, with focus on the Bien Hoa-Vung Tau railway, metro lines connecting urban areas, and a monorail system linking coastal tourism urban areas from Vung Tau city to Binh Chau hot mineral spring.

Railway sector’s revenue up 17% in H1

The Vietnam Railways Corporation (VNR) revealed on July 6 that its total revenue topped 3.7 trillion VND (156.4 million USD) in the first six months of this year, up 17% year-on-year.

Of the total, the combined revenue of the VNR’s two affiliates - the Hanoi Railway Transport Joint Stock Company (Haraco) and the Sai Gon Railway Transport Joint Stock Company (Saratrans) - is estimated at 2.5 trillion VND, up 18% year-on-year, with direct takings from transportation activities reaching more than 1.9 trillion VND, up 25%.

However, while passenger transport grew strongly with a turnover of more than 1.2 trillion VND, a year-on-year increase of 83%, freight transportation dropped sharply, with only 824 billion VND, equal to about 80% of that the same period last year.

According to the VNR, the railway sector has implemented many solutions to promote transport.

Regarding passenger transport, the number of trains and train schedules have been adjusted to suit passengers’ needs, with focus on short-distance sections of high travel demand such as Hanoi to Thanh Hoa, Vinh, Dong Hoi, Hue and Da Nang and vice versa, and Ho Chi Minh City to Nha Trang, Phan Thiet and Da Nang and vice versa.

Laos tourists to Vietnam soar by 117%

The number of Lao tourist arrivals to Vietnam soared in the first half of the year, with a growth rate of 117%, which is the third-highest rate among nations having visitors to Vietnam, following Cambodia (338%) and India (236%).

The most popular destinations for foreign tourists in Vietnam until June 2023 were the central beach city of Da Nang; the ancient city of Hoi An; Da Lat, known as the city of a thousand flowers in the Central Highlands; the coastal cities of Nha Trang and Vung Tau; and the “Paradise Pearl Island” of Phu Quoc, the Lao media reported.

The surge in international tourist arrivals was a sign of Vietnam’s post-pandemic recovery. Many Laotians, as well as Cambodians, also visited Vietnam for medical purposes.

On the other hand, Laos welcomed more than 1 million foreign tourists in the first four months of 2023, which was an impressive increase compared to 1.3 million tourists in the whole  2022. Vietnamese visitors made up the second-largest group of foreign tourists with 224,461 holidaymakers, just after Thailand.

In Luang Prabang alone, the province recorded nearly 400,000 international tourists from January to May this year, and the province’s five-year tourism plan hopes to attract 4 million tourists by 2025.

The steady growth in the number of Lao tourist arrivals to Vietnam is a positive sign for both countries’ tourism industries and a testament to the close ties between the two nations.

Vietnam and Singapore sign 12 MoUs at joint business forum

A total of 12 memoranda of understanding (MoUs) on sustainability, digitization, financial services, and human resources development were signed at the seventh Singapore Regional Business Forum (SRBF) held for the first time in Hanoi on July 7.

The forum was attended by more than 800 entrepreneurs, government officials, and diplomats from over 420 companies and organisations from 32 countries across the world.

Addressing the forum, Deputy Prime Minister Le Minh Khai hailed the Vietnam – Singapore cooperation as a role model in international cooperation, saying Singapore is the second largest foreign investor in Vietnam, with more than 3,200 projects worth US$73.4 billion in registered capital.

Singaporean firms have engaged in most of Vietnam’s economic sectors and have seriously implemented projects on schedule and with high efficiency.

Meanwhile, Vietnamese businesses have invested in nearly 150 projects in Singapore with a total registered investment capital of nearly US$700 million, focusing on professional fields and science – technology.

Those results of cooperation are encouraging, but still not really commensurate with the cooperation potential of the two sides, he said.

The Deputy PM expressed his belief that economic cooperation will continue to be an important pillar in bilateral relations and a driving force for the lifting of the Vietnam – Singapore partnership to new heights, while creating a positive spillover effect on the region and the world.

The Vietnamese Government is committed to listening to, accompanying, supporting and creating all favourable conditions for foreign firms, including those from Singapore, to operate in an effective, long-term and sustainable manner in the country, he assured delegates attending the forum.

Taking the floor, Vietnamese Minister of Planning and Investment Nguyen Chi Dung said, to take advantage of the opportunities of the global economic recovery and the Fourth Industrial Revolution, the two sides need to expand cooperation within the framework of their economic connectivity agreement and the digital economy - green economy partnership.

Accordingly, he suggested that the two countries focus on their potential and highly complementary areas, such as innovation, digital transformation, energy transition, green transformation, green finance, and science - technology.

For his part, Tan See Leng, Second Minister for Trade and Industry of Singapore, emphasized the forum is an opportunity to further enhance economic cooperation between Vietnam and Singapore. He noted that Singaporean companies have over the years expanded their operations in Vietnam, making a practical contribution to the Vietnamese economy.

Currently, the Singapore Business Federation (SBF) is bringing a delegation of 25 Singapore businesses to Hanoi from July 5 to 8 to learn about the local business climate and culture, as well as to promote cooperation with local enterprises.

PM instructs measures to accelerate highway projects in Mekong Delta

Prime Minister Pham Minh Chinh chaired a conference on tackling difficulties to speed up highway projects and disbursement of Official Development Assistance (ODA) capital in the Mekong Delta, which took place in Can Tho city on July 8 afternoon.

At present eight highway projects with a total length of more than 460km are being implemented in the Mekong Delta, with total investment of approximately 94.4 trillion VND (3.99 billion USD).

Officials of relevant ministries, sectors and localities reported that those projects are facing obstacles related to ground clearance and a shortage of materials for roads’ foundation.

Stressing that the Mekong Delta is an especially important strategic region and the greatest agricultural hub of the country, PM Chinh said the Party and State have issued many policies and undertaken measures to make the best use of the region’s potential and advantages, one of which is investment in infrastructure.

A series of highway projects were launched in the delta recently, aiming to increase the total length of highways in the region to 554km in 2026.

To remove the obstacles and accelerate the transport projects, the PM instructed that investors of those projects should closely monitor the pace of construction and take firm actions in controlling the quality and pace of work as well as the use of capital.

Relevant ministries must work closely with People’s Committees of provinces and cities where the projects run through to create favourable conditions and timely address arising problems for the projects, he said.

Regarding those projects which have not completed ground clearance, the Government leader required local administrations to intensify the work so as to hand over the ground to contractors before December 31 this year at the latest. He particularly reminded the administrations to pay attention to ensuring housing and livelihoods for people who have to relocate to make way for the highway projects.

Regarding ODA projects in the Mekong Delta, the average disbursement rate in the region in the first six months of this year is only 5.3%, much lower than the national rate of 15.7%. The region now has 62 projects using ODA and foreign loans worth over 56.4 trillion VND (2.8 billion USD).

Participants at the conference attributed the slow disbursement to obstacles caused by outdated institutions and regulations, poor preparations for the projects; problems in adjusting projects, investment intents and loan agreements; and issues in procedures of both Vietnam and donors.

PM Chinh required Chairpersons of provincial-level People’s Committees of 13 Mekong Delta localities to review ODA projects and select project management boards and investors with good capacity and experience for implementation.

He also instructed the Ministry of Planning and Investment to coordinate with the Finance Ministry and related agencies and localities to work with development partners on streamlining and harmonizing procedures of the partners and Vietnam.

Construction of large-scale urban area starts in Ninh Thuan

Construction of Ca Na New City urban development project, which has a total investment of nearly 4.5 trillion VND (192.27 million USD), started in Thuan Nam district of the south-central province of Ninh Thuan on July 8.

Covering 64.46 hectares, the project is located in the gateway to the East Sea of the south central coastal region, with close technical infrastructure linkages with neighbouring areas.

It is a green urban area with 20% of the total area designed for tree planting, with 36 parks and a lake.

Kieu Anh Tuan, Vice Chairman and General Director of ATC Holdings JSC, the investor of the project, said that with shophouses, villas, hotels, luxury apartments, social housing, the highlight of Ca Na New City urban area is the modern and neoclassical design style and its harmony with nature. Ca Na New City urban area will accommodate more than 9,000 residents, he said.

The project is scheduled to be put into operation in December 2027.

Addressing the ground-breaking ceremony, Chairman of the provincial People's Committee Tran Quoc Nam said that the project will meet the housing demands of local residents, helping ease population density in Thuan Nam district, especially Ca Na and Phuoc Diem communes.

It is also expected to meet the accommodation demands for experts, scientists and workers in nearby industrial parks and seaport, he said.

He pledged that the locality will create optimal conditions for the implementation of the project, and promptly settle obstacles facing the investors, thus ensuring the progress of the project.

Market diversification crucial for rice sector: Experts

Although Vietnamese rice has been exported to 150 countries and territories, markets for the product are mainly Asian countries and thus need to be diversified, according to experts.

Currently, the Asian region has been the largest market of Vietnamese rice, consuming over 60% of the country's total exported volume. It is followed by Africa with 22%, America 8%, Europe 5%, and other regions 5%.

In the first six months of this year, Vietnam exported 4.27 million tonnes of rice for 2.3 billion USD, up 22.2% in volume and 34.7% in value over the same period last year. Those are the highest growth rates of the rice sector in the recent 10 years.

This year, rice export volume is forecast to stand at a similar volume as last year when 7.35 million tonnes of rice was shipped abroad.

In a recent report, the US Department of Agriculture also predicted that Vietnam's rice export will exceed 7 million tonnes this year, mostly due to rising demands in Asian markets.

In this scenario, Vietnam will rank third in the world in rice exports after India and Thailand.

Deputy Director of the Department of Asian-African Markets under the Ministry of Industry and Trade (MoIT) To Ngoc Son said that high demands from traditional markets such as the Philippines, China, Indonesia and African countries are creating opportunities for Vietnam to increase exports.

Particularly, Indonesia and Africa have announced plans to import a large amount of rice this year to ensure national food reserves.

Indonesia said it needs 2.4 million tonnes, while Africa plans to import about 17.7 million tonnes.

The MoIT underlined that from now to the end of this year, Vietnam should continue to seek new rice markets, while optimising traditional markets of China and the Philippines.

Vu Ba Phu, Director of the Trade Promotion Agency said that the agency will continue to connect domestic firms and their foreign importers through various forms, while making full use of free trade agreements, and foster connections between domestic exporters and Vietnam Trade Offices abroad.

He said that the MoIT is building a project to build and promote the trademark of Vietnamese rice. He advised local firms to strengthen their linkage and cooperation with farmers to form a closed production chain.

In order to support businesses in expanding markets, the MoIT has coordinated with the Ministry of Agriculture and Rural Development to strengthen trade promotion in new markets such as Africa, the Middle-East, Western and Southern Asian countries, and Turkey.

Although the rice demands in these markets are not higher than traditional ones, they are promising markets for high-quality rice types, which can help Vietnam increase rice export value, according to the MoIT.

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