The Ministry of Industry and Trade (MoIT) will send a proposal to the government on whether it is necessary to maintain the petrol price stabilisation fund in June.

A decision will be made after reviewing of the new 2023 Price Law, which will take effect on July 1.

According to the Ministry of Finance (MoF), as of the end of 2023, the balance of the fund was over 6.65 trillion VND, or 260 million USD. During the first five months of this year, the fund was barely touched as a joint task force from the MoIT and the MoF decided to not use it.

The MoIT said with the implementation of the current seven-day price adjustment cycle, the price fluctuations have not been significant. Domestic prices have closely followed global price trends. As fuel traders have taken a more proactive approach to planning and pricing, the petrol supply looks stable for now.

"As the impact of petrol prices on the current socio-economic situation remains low, there are few instances in which the fund can be utilised effectively," said the MoIT in a recent statement.

Total petrol import and production during the first four months of the year reached 7,88 million tonnes, or 9,93 million cubic metres with import accounting for 43.73%. Across the country, traders imported and purchased about 9.2 million cubic metres of petrol products, 32.35% of the ministry's target for 2024.

Meanwhile, Vietnam consumed about 8.3 million cubic metres of petrol products while keeping an inventory level of 1.8 - 1.9 million cubic metres, ensuring sufficient supply for the economy.

A forecast by the ministry has put petrol supply in the second quarter of 2024 at 8,87 million cubic metres with traders' volume reaching 6,35 cubic metres while keeping an inventory level of 1.7 - 1.8 million cubic metres./.

India is main market for Vietnamese star anise exports

India continued to be the main market for Vietnamese star anise exports as it imported 951 tonnes of Vietnamese star anise in May, accounting for 61% of the total exported volume of this item.

Statistics released by the Vietnam Pepper Association (VPA) indicate that Vietnamese star anise exports reached 1,560 tonnes in May with a turnover of around US$7.2 million, up 5.4% compared to April.

The May figure raised the five-month export of the product to 5,475 tonnes with a total turnover of US$27.5 million, down 14.7% in volume and 29.9% in turnover from the same period last year.

India became the largest consumer of Vietnamese star anise with 3,360 tonnes, followed by the United States and Bangladesh with 399 tonnes and 140 tonnes, respectively.

India is the world's leading consumer of cinnamon and anise products, whilst it is also a major producer of medicinal herbs. Currently, Vietnam dominates the Indian market with more than 80% of cinnamon and anise imports.

Vietnam has an anise growing area of about 40,000 hectares, mainly in Lang Son and Cao Bang provinces in the north, with an annual output of more than 16,000 tonnes.

The country is currently one of the strongest spices exporter in the world, ranking first for pepper and cinnamon export, and second for anise star export.

Import markets of Vietnamese spices are also increasingly diverse such as the United States, the EU, China, India, and the Middle East.

Cambodia's exports of raw cashew nuts to Việt Nam rise 37% in five months

Cambodia exported 667,000 tonnes of raw cashew nuts to Việt Nam in the first five months of this year, an increase of 37 per cent over the same period last year, reaching a revenue of US$851 million.

The Voice of Việt Nam (VOV) online newspaper quoted the chairman of the Cashew nut Association of Cambodia Uon Silot as saying that although hot weather affected cashew output, the volumes of raw cashew exports still showed positive signs.

The country produced 716,000 tonnes of raw cashew nuts in the first five months of 2024, he said.

The chairman explained that the growth in raw cashew nut exports to Việt Nam was due to the increase in cultivation space in the Cambodia, combined with nut output falling in Africa due to climate change.

Although some extremes in temperatures had affected Cambodia's cashew trees in recent times, it did not have much impact on cashew production as the association members were proactive in technology, he said.

The Cashew Nut Association of Cambodia is projected to cut the amount of raw cashew nuts exports by 70 per cent over the next ten years. Currently up to 90 per cent of Cambodia's nuts are exported, especially to Việt Nam. 

State budget revenues from import-export grow 7.4% in five months

Total State budget revenue from import-export activities reached almost VNĐ165.7 trillion (nearly US$6.63 billion) in the first five months of 2024, equivalent to 44.2 per cent of the assigned estimate and marking 7.4 per cent growth compared to the same period last year.

According to the General Department of Vietnam Customs (Vietnam Customs), the five months saw the country’s trade volume amounting to some $305.53 billion, up 16.6 per cent year-on-year.

Of the total turnover, the export and import value are estimated to hit $156.77 billion and $148.76 billion, year-on-year increases of 15.2 per cent and 18.2 per cent, respectively, resulting in a trade surplus of $8 billion.

For 2024, the National Assembly assigned Vietnam Customs to collect VNĐ375 trillion for the State budget, with balanced revenues from import-export activities set at VNĐ204 trillion. 

Policy on business registration to be revised

The Ministry of Planning and Investment (MPI) has finalised a new draft decree on business registration reforms to make it accord with several newly-issued laws.

MPI Deputy Minister Trần Duy Đông said the original decree dated from 2021, so it needs to be amended to be a good fit with a number of newly promulgated laws. For example, the Law on Credit Institutions has different regulations on business registration for credit institutions; or the Law on Cooperatives regulates business household registration.

The revised decree (No. 01/2021/NĐ-CP) aims to streamline lots of processes, creating maximum favourable conditions for enterprises, respecting the autonomy of enterprises and protecting the legitimate rights and interests of the company, members and shareholders, while still ensuring State management in business registration, Đông said.

Representatives of the Business Registration Office, under the Hà Nội Department of Planning and Investment, welcomed the draft as it also will mean moving a lot of operations online, currently, most are in paper form.

Meanwhile, representatives of the Ministry of Justice proposed that the drafting committee strengthen post-inspection regulations, make public for comment and further study international experience to make the revised decree simplify procedures and connect with relevant databases to suit the current context. 

Vietjet increases flights between Nha Trang and Busan

Vietjet will double the frequency of flights between Nha Trang and Busan, South Korea starting from July 19, providing more travel options between major cities in South Korea and Việt Nam.

The additions will raise the number of Vietjet flights between Việt Nam and South Korea to 42 per day, Vietjet announced on Sunday.

New flights from Nha Trang to Busan will depart at 1.50am and arrive at Gimhae International Airport at 8.30am. The return flight will leave Busan at 10am and land at Nha Trang at 12.40pm.

Busan is the second-largest city in South Korea, with many recreational spots, shopping centers, seafood markets and unique museums and architecture, offering tourists many exciting experiences.

Nha Trang, often called the 'Pearl of the East Sea,' is famous for its mild climate, Po Nagar Cham Towers, Institute of Oceanography and Hòn Tằm Island.

Increasing flights between Nha Trang and Busan will enhance trade opportunities, cultural and tourism connections between the two cities and the two countries, according to Vietjet.

Passengers who fly on all Vietjet international routes will have the chance to book tickets priced from zero đồng every Friday on the website www.vietjetair.com and the Vietjet Air mobile app from now until December 31.

10 leading brokerages unveil capital raising plans in first five months

In the first five months of the year, one third of the 30 largest securities companies in the domestic market have announced plans to increase their capital by a total value of around VNĐ38 trillion (US$1.5 billion) over the next 12 months, a report from Vietnam Investment Credit Rating JSC (VIS Rating) showed.

The capital raising plans are significant and are expected to boost the total equity of these companies by around 20 per cent. With the additional capital, the firms will be able to accelerate their core business activities of investment and margin lending in 2024.

"The higher profitability that is expected from these business expansions will help strengthen the companies' risk buffers," VIS Rating said.

The capital increase plans are primarily from large domestic securities firms, such as Hồ Chí Minh City Securities Corporation (HCM), SSI Securities Corporation (SSI), Vietcap Securities JSC (VCI) and VNDirect Securities Corporation (VND), as well as companies affiliated with banks like ACB Securities (ACBS), MB Securities (MBS), Tiên Phong Securities Corporation (ORS) and Saigon - Hanoi Securities (SHS).

These enterprises have set an average profit growth target of 30 per cent for 2024 compared to the previous year. The projected growth is mainly driven by the expansion of their core investment and margin lending operations, along with an overall improvement in industry business conditions.

According to VIS Rating, the low interest rates and improved investor sentiment in both the stock and corporate bond markets are expected to encourage more trading activities by investors.

In the first five months, average daily stock trading value increased 36 per cent from 2023 to VNĐ24 trillion. Industry return on average assets (ROAA) rose from 4.3 per cent in 2023 to 5.3 per cent in the first quarter, driven by growth in investments and margin lending.

The regulator's plans to upgrade trading infrastructure and remove foreign investor margin requirements are factors expected to attract new investors.

Among ten companies raising capital, four securities firms - ACBS, DNSE Securities JSC (DNSE), HCM and KAFI Securities Corporation (KAFI) - completed the raising plans.

ACBS, a 100 per cent Asia Commercial Joint Stock Bank (ACB) subsidiary, has become an important contributor to ACB's growth strategy, while DNSE will use funds to enhance IT and develop financial tech like robo-advisory.

VCI previously announced plans to focus more on individual investors. For HCM and MBS, extra capital will allow continued growth while keeping margin lending below 200 per cent of equity.

The additional capital will strengthen risk absorption for companies with large bond and stock portfolios, such as ORS, SHS, VIX Securities and VND.

VIS Rating also said that the pace of capital raising by foreign securities firms has decelerated over the past two years. In fact, growth of these foreign companies has trailed that of their domestic counterparts.

For example, the margin lending balances of foreign brokerages increased by just 18 per cent annually in the recent two-year period, far below the 35 per cent growth seen at local firms.

Additionally, foreign securities companies tend to have smaller investment portfolios compared to domestic peers. As a result, their ROAA was 3.7 per cent from 2020-2023, significantly lower than the 6 per cent ROAA achieved by Vietnamese securities firms during that time. 

Vietinbank to auction 10 land plots with $1m reserve price to recover debts

State-owned bank Vietinbank is seeking to auction 10 land plots on Phú Quốc Island with a total reserve price of VNĐ27 billion (over US$1 million) to recover loans from a borrower.

They add up to over 1,400 square metres, and belong to a single unidentified individual living in Phú Quốc.

The reserve prices range from VNĐ2.4 billion to VNĐ5.2 billion.

Bidders need to deposit 10 per cent of the starting price for the auction to take place on July 4 in Rạch Giá Town.

This is not the first time the person’s assets will be auctioned by Vietinbank to recover debts.

In July 2022, the lender sold eight plots of land in Dương Đông Town in Phú Quốc for over VNĐ25.3 billion.

Banks across the country have been struggling to find buyers for mortgaged assets such as lands, villas and houses.

Other assets such as luxury cars, machinery, yachts, and factories have also been placed under the hammer with little success.

Real estate makes up 70 per cent of all assets mortgaged for loans, and is the most likely to be auctioned to recover debts.

Việt Nam is currently struggling with non-performing loans, which are in fact posing a threat to its banking system.

Analysts have raised concerns about them, warning there could be a further rise due to the unfavourable economic conditions.

According to the financial statements of nearly 30 banks, their total bad debts exceeded VNĐ224.14 trillion as of the end of March, up 14 per cent from the end of last year.

The Asian Development Bank has warned of potential risks to the banking system stemming from irregularities in corporate bond issuances and real estate markets.

Techcombank receives green light to double charter capital

The State Securities Commission (SSC) has recently approved Techcombank to double its charter capital.

The bank will increase its charter capital from over VNĐ35.2 trillion to VNĐ70.45 trillion (US$2.8 billion) through a bonus share issuance from retained earnings.

The expected issuance rate is 100 per cent, meaning that existing shareholders will receive an additional 100 new shares for every 100 shares held.

This important decision was approved during Techcombank's annual general shareholders' meeting held in April. 

Once the capital increase plan is completed, the lender will ascend from the eighth position to the second position in the banking sector's charter capital rankings, trailing only VPBank, which has a charter capital of over VNĐ79.3 trillion.

Techcombank had previously obtained regulatory approval to distribute cash dividends for 2023 at a rate of 15 per cent, with each share receiving VNĐ1,500 in cash. Investors started receiving dividends in their accounts at the beginning of June.

With a combined cash dividend rate of 15 per cent and a bonus share rate of 100 per cent, Techcombank stands out as the only bank that has provided shareholders with a total payout of 115 per cent for the current year. 

This milestone also signifies the bank's first distribution of cash dividends in a decade. The dividend distribution is estimated at over VNĐ5 trillion.

This year, it aims to achieve a profit before tax of VNĐ27.1 trillion, an 18.4 per cent increase from 2023.

On the stock market, Techcombank’s shares were traded at VNĐ49,050 per share at 10.25am on Monday, down 0.1 per cent from the previous session.

The big three State-owned commercial banks, Vietcombank, BIDV and VietinBank, have all formulated capital increase plans that received unanimous approval from shareholders at their recent general meetings. These plans are currently pending regulatory approval. 

Long Hậu sets to divest from Sài Gòn - Hiệp Phước Port

After a poor performance in the first quarter of 2024, Long Hậu Corporation is now looking to sell its stake in Sài Gòn – Hiệp Phước Port JSC.

Long Hậu has approved a plan to divest its capital from Sài Gòn – Hiệp Phước Port. The company has tasked its CEO Trần Hồng Sơn with hiring an independent entity with the necessary expertise to evaluate the company's capital contribution and then submit a specific divestment proposal.

As of March 31, Long Hậu held 80,000 shares in Sài Gòn – Hiệp Phước Port, equivalent to an investment value of VNĐ80 billion (US$3.1 million).

In the first quarter of the year, the company reported revenue of VNĐ76.25 billion, a 34.1 per cent decrease year-on-year. Its profit after tax was VNĐ31.45 billion, down 32.3 per cent year-on-year. However, the gross profit margin improved from 50.5 per cent to 53.3 per cent.

The main reason for the decrease in Long Hậu's profit was the significant decline in revenue, as other activities saw negligible fluctuations.

Long Hậu also explained that the significant decline in revenue was primarily due to a drop in revenue from land leasing for ready-built workshops. The revenue decreased from VNĐ53.9 billion in the previous year to only VNĐ0.17 billion.

For the full year of 2024, the company has set a business target of a total revenue of VNĐ743.7 billion and an expected profit after tax of VNĐ131.46 billion. By completing the first quarter of 2024 with a profit of VNĐ31.45 billion, its has achieved 23.9 per cent of the planned profit.

Phúc Long Industrial Park in Long An to be expanded by 330ha

The 80ha Phúc Long Industrial Park in Long An Province will be expanded by 330ha at a cost of over VNĐ5.6 trillion to become one of the largest industrial parks in the province.

Deputy Prime Minister Lê Minh Khái has approved the expansion, which will be developed by Phúc Long Investment and Construction Ltd, the same company behind the current industrial park in Bến Lức District.

However, the timeline for expansion is currently uncertain.

Home to 34 industrial parks covering over 9,250ha, Long An has attracted over 1,900 projects and employs 183,000 workers, including more than 950 FDI projects.

Long An aims to have 51 industrial parks covering over 12,400 hectares by 2030, in order to become the country’s second-largest industrial area, after Bình Dương Province.

Last year, Long An approved 118 new foreign direct investment (FDI) projects totaling nearly $603 million, with 81 projects adjusting their capital to nearly $118 million.

The province remains among the top ten provinces attracting the most foreign investment in the first five months of the year, with major investors from Singapore and Japan. 

US$980 million contract for Song Hau 2 Thermal Power Plant Project signed

Toyo Ink Group Berhad, Song Hau 2 Power Company Limited and Export-Import Bank of Malaysia (Eximbank Malaysia) have signed a credit contract worth US$980 million for Song Hau 2 Thermal Power Plant Project.

Successfully dealing with a US$980 million loan to carry out the design, equipment procurement, construction and operation of the Song Hau 2 Thermal Power Plant Project is of great significance, thus enabling the investor to go ahead with coordination with relevant parties to implement the next stages to meet the project schedule.

The Song Hau 2 Thermal Power Plant Project is implemented in the form of BOT in Chau Thanh district, the Mekong Delta province of Hau Giang , invested by Toyo Ink Group Berhad,

with a design capacity of 2 x 1,060 MW. This is considered an important project in Electricity Planning VIII.

The project's contracts (BOT, power purchase, sale and land lease conrtracts) were signed in December 2020 and have taken legal effect.

Song Hau 2 Thermal Power Project is located in Song Hau Power Center where Song Hau 1 Thermal Power Plant invested by Vietnam National Oil and Gas Group entered commercial operations in 2022, with a capacity of 1,200 MW.

It is expected that after being put into operation, Song Hau 2 Thermal Power Plant will contribute to diversifying power generation sources and ensuring energy security as a way of bringing abundant revenue to the local budget, creating jobs for locals, and boosting the socio-economic development of Hau Giang province as well as the Mekong Delta region.

Recovering demand for aquatic products comes with challenges: conference

The demand for aquatic products is expected to pick up from the third quarter of 2024, with many associated challenges requiring advertisements and the diversification of business products and markets, insiders have said at a conference held by the Vietnam Association of Seafood Exporters and Producers (VASEP) in Ho Chi Minh City on June 10.

VASEP General Secretary Truong Dinh Hoe said Vietnam’s seafood exports were valued at about US$3.6 billion in the first five months, up 6% year-on-year and forecast to hit US$4.4 billion in the first half.

According to the association, the sector has strength in deep processing. To busy consumers with limited time for cooking, deep-processed seafood products are gaining popularity. They also promise higher profits for businesses.

However, the slow and cautious recovery of markets, competitive pressure on export prices, and challenges in domestic processing, among many other factors, are expected to continue to impact the sector’s exports this year.

Do Ngoc Tai, Director of Tai Kim Anh Seafood Joint Stock Company, analysed that in the first months of the year, the overseas shipments of shrimp saw a slight increase compared to the same period in 2023. However, in major markets such as the US and the EU, high inflation has forced consumers to tighten their belts, while conflicts in various regions have caused a surge in sea freight rates, adding pressure to the costs.

Cao Thi Kim Lan, Director of Binh Dinh Fishery Joint Stock Company, said processing and exporting seafood products have been extremely challenging due to the scarcity of material sources. This year, the risk of the shortage is even greater, as hot weather conditions might lead to decreased exploitation yields.

Nguyen Thi Thu Sac, Chairwoman of VASEP, noted despite numerous global challenges, Vietnam still aims for US$10 billion from aquatic product exports this year. To achieve this goal, she recommended businesses adapt and adjust their operations to the market context, with a focus on diversifying export markets and promoting domestic market development. It is also essential to develop appropriate development strategies, step up branding activities, and stay updated with market information.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien, meanwhile, highlighted the significant role of aquaculture as well as aquatic exploitation, processing, and export in the country’s overall agricultural development. It is estimated that the seafood sector contributes 28% to the total agricultural production value, with its export turnover surpassing US$10 billion at some points.

Given the domestic and global challenges, he suggested the industry work on important tasks such as addressing illegal, unreported and unregulated (IUU) fishing, enhancing trade promotion, and regularly updating market information to enable farmers and fishermen to organise production and exploitation rationally and efficiently.

Coconut exports likely to exceed US$1 billion in the time ahead

The signing of the Protocol to officially export coconuts to China will help this product have the opportunity to surpass the US$1 billion mark in the near future, while also opening up "successful" opportunities for numerous key coconut localities, according to insiders.

The Vietnamese Ministry of Agriculture and Rural Development (MARD) and the General Administration of Customs of China (GACC) have consented to soon finalize procedures regarding the signing of a protocol on plant quarantine requirements for Vietnamese fresh coconuts and frozen durians exported to China.

In particular, both sides initialed the conclusion of negotiations on the protocol regarding phytosanitary requirements for the export of fresh coconuts from Vietnam to China. This has opened the door for Vietnamese fresh coconuts to enter the vast market of 1.4 billion people.

Tran Van Duc, chairman of the Board of Directors of Ben Tre Coconut Investment Joint Stock Company, highlighted the huge demand for imported coconut of China which consumes about 2.6 billion fresh coconuts each year and 1.5 billion coconuts for processing, while the neighbouring country's coconut output only meets 10%.

According to Duc, local businesses have long wanted to bring products into the highly lucrative market. However, the company's coconut products cannot be exported as both nations do not have a protocol even though the company's products have made their foray into high-end markets such as Europe, the US, and the Middle East.

“Vietnam currently ranks 7th in coconut production worldwide. With the advantage of being close to China, if this market can be opened, coconut exports will make a breakthrough in the time ahead," Duc emphasized.

A number of Chinese partners have begun to contact him to learn about and visit his company's factories. Duc is also confident that his company has experience in exporting fresh coconuts to fastidious markets, therefore, it will not be too difficult to meet the requirements of raw material areas and packaging facilities from China.

Dang Huynh Uc My, chairwoman of Betrimex, said that Vietnam currently has more than 180,000 hectares of coconuts, with a large amount concentrated in the central coastal provinces and the Mekong Delta.

Notably, like the southern province of Ben Tre, coconut products have been shipped to nearly 100 countries and regions, including European, American and Middle Eastern markets, and coconuts account for more than 42.5% of the province's export revenue.

“Last year, coconuts were also identified as a key economic crop for the first time and exports reached US$1 billion. With abundant supply, when Vietnamese coconuts are officially exported to China, this product will have the opportunity to exceed the US$1 billion mark as a contribution to raising people's income and boosting domestic coconut production in a more professional and standardized manner,” My went on to say.

Huynh Tan Dat, head of the Plant Protection Department under the Ministry of Agriculture and Rural Development, said that over the past 2 years, the department has held an in-depth discussion with Chinese competent agencies on technical issues related to pest management, fruit quality and safety management measures, as well as product packaging.

According to him, the signing of the protocol on fresh coconuts is one of the innovations China creates for Vietnam. Successfully opening the market for each agricultural product also shows the trust of the international market in Vietnamese agricultural products, he added.

International trade connected with domestic consumption market

Since the beginning of this year, a diverse range of foreign products have entered the Vietnamese market, with Ho Chi Minh City experiencing a surge across various promotional channels.

Highlighting the importance of Vietnam as a trade partner, Kim Ki-hoon, a member of the Republic of Korea's Ministry of Oceans and Fisheries' Promotion Bureau for Processing and Export, acknowledged Vietnam as the 4th largest food trading partner.

He outlined the bureau's plans to expand partnerships with Vietnamese retailers and distributors to introduce a variety of seafood products, including abalone, oysters, and seaweed, to Vietnamese consumers. Additionally, Korean companies are seeking to strengthen ties with hotels, restaurants and catering businesses.

Nguyen Anh Duc, Chairman of the Vietnam Retailers Association, underlined the significant role of the retail sector, contributing 35% to Vietnam's GDP. However, he noted that growth primarily stems from traditional channels, signifying immense potential for modern retail expansion.

Statistics indicated a substantial need for supermarkets and convenience stores, with an estimated requirement of one mega supermarket and one shopping outlet per 100,000 people, one medium-sized supermarket per 10,000 people, and 1-3 convenience stores per 1,000 people. These figures represent promising opportunities for distributors and retailers to capture a larger market share.

According to the Ministry of Industry and Trade, Vietnam's retail market surpassed US$180 billion in 2023, with projections for continued growth in the coming years. This thriving market, coupled with a rapidly growing affluent population, including a doubling of the ultra-rich segment and a 70% increase in the affluent class over the past five years, is attracting renowned global brands.

A report by the Euromonitor Market Research Organisation further pointed out the significance of brand reputation and product quality for Vietnamese consumers, with 26.1% frequently purchasing from well-known brands and 35.8% prioritising higher-quality products even if it means buying less.

Canada imposes preliminary anti-dumping duties on Vietnamese steel wire

The Canada Border Services Agency (CBSA) on June 6 issued preliminary conclusions on the investigation of applying anti-dumping measures on steel wire rod originating or exported from China, Egypt and Vietnam.

Accordingly, the temporary anti-dumping tax rates for Vietnamese enterprises stays at the lowest levels, ranging from 6.1% to 38.9% compared to 50.9% - 71.1% for Chinese enterprises and 49.7% - 99.8% for Egyptian enterprises.

CBSA will issue statements of reasons within 15 days and publish them on the agency’s website at www.cbsa-asfc.gc.ca/sima.

Currently, the Canadian agency is continuing investigations and is expected to issue a final determination on September 4, 2024.

On March 8, 2024, the Canada Border Services Agency initiated an investigation to apply anti-dumping measures on steel wire rod originating or exported from China, Egypt and Vietnam.

The projects are certain hot‐rolled wire rod of carbon steel and alloy steel of circular or approximately circular cross section, in coils, equal to or less than 25.5 mm in actual solid cross‐sectional diameter.

The investigation follows a complaint filed by Ivaco Rolling Mills 2004 LP.

Small but quality FDI projects invested in southeastern localities

New foreign direct investment (FDI) projects in southeastern localities in the first five months of 2024 are not large but friendly to the environment and apply high technologies.

Specifically, new projects in Ba Ria-Vung Tau province operate in the sectors of biology, electronics and high technology. Meanwhile, projects in Ho Chi Minh City and the nearby provinces of Binh Duong and Dong Nai, despite of their small or medium sizes, use advanced and environmentally friendly technologies while being less labour intensive and having high productivity.

Nguyen Tri Phuong, Head of the Dong Nai Industrial Zones Authority, said that the newly-licensed projects in his province are mainly in the semiconductor, electrical component, electronics, and mechanical engineering industries. There are no polluting or labour intensive projects, he noted.

Outstanding examples include the Silicon Carbide Vietnam Co. Ltd. and the Advanced Optics projects of the US-based Coherent Group with a total investment of 83 million USD.

In the first five months of this year, Ba Ria-Vung Tau lead the country in FDI attraction with over 1.5 billion USD, exceeding the number of the whole 2023 – 1.4 billion USD, according to the provincial Department of Planning and Investment.

Another bright spot is Dong Nai, which attracted 834 million USD to local industrial parks during the period, 19% higher than this year's target, Phuong said.

FDI projects are poured into Dong Nai and Ba Ria-Vung Tau thanks to their great infrastructure advantages. Dong Nai is home to Long Thanh International Airport, which is expected to become operational in 2026. Meanwhile, Ba Ria-Vung Tau boasts a deep-water port system that can handle big cargo vessels destined for around the world./.

Reduced working hours must go hand-in-hand with improved productivity

The Vietnam General Confederation of Labour (VGCL), the sole representative of Vietnamese worker's interests and unified trade union organisation in the country, has for the second time this year called on the Government to reduce the weekly working hours for the private sector workers from 48 to 44, and eventually to 40 hours per week.

Dr Nguyen Thi Lien, Head of the Department of Business Human Resource Management at the Vietnam University of Commerce in Hanoi, said the shorter working week proposal was scientifically researched, practical and in line with global norms.

Extensive research has shown that reducing working hours allows workers to rest, rejuvenate, spend more time with their families, providing a wide range of well-being and social benefits. Businesses also benefit when workers come back fully rested and more committed to their jobs, fewer mistakes are made and productivity increases.

Lien, however, said reducing working hours should be implemented gradually to allow room for adjustments and allow proper assessment from both businesses and workers.

It must be properly communicated that reducing working hours does not necessary mean lower incomes.

She said the key to the challenge of maintaining national competitiveness and investment while giving workers more time to rest, is increased labour productivity.

"Businesses must invest more in technologies and automation, improve workflow and the working environment. Workers should be geared toward being adaptive, creative and producing advanced products," Lien said.

She advised the Government to implement additional policies to stimulate creativity and innovation while raising the nation's minimum wage and workers' living standards. As incomes increase, reduced working hours allow more time for family, rest and recreational activities, which aligns with global development trends.

She added that reducing working hours will inevitably happen in the future, but the timing and implementation need careful planning and execution.

Dr Cao Van Sam, Chairman of the Advisory Council at the Institute for Human Resources Training and Development, said the proposal to reduce working hours was brought to and approved by the 2019 National Assembly's Resolution 101. However, policymakers must strike a balance between labour productivity and the ability to ensure minimum living conditions for workers and meet various conditions for implementation.

"There should be thorough research based on scientific principles and practical approaches to build a roadmap that allows for reduced working hours and increased labour productivity," he said.

Sam said tests should be carried out in businesses that meet all the conditions for implementation before the country's labour authorities implement national-scale policies.

"There have to be solutions to ensure workers that reducing their working hours will not hurt their income significantly, as well as their employers' competitiveness and investment. Workers must be encouraged to improve their crafts, contributing to improved labour productivity," he said.

Businesswoman Nancy Ngo Thi Bich Quyen, VP of BNI Vietnam and a human resource management expert, said that while better regulations for workers are necessary, the impact on businesses must be considered.

"Vietnam remains among the countries with low labour productivity while wages are no longer exceptionally low in comparison to its regional average. The mindset of the young generation is to try out new fields and constantly seek for better employment opportunities," she said.

She said, to be practical and sustainable, the proposal must balance the interests of employers and workers./.

Domestic production sees green shoots

Vietnam ran a trade deficit in May as the import of major materials rebounded, signaling that green shoots are sprouting in domestic production, experts have said.

The Ministry of Industry and Trade (MoIT) reported that imports turnover in the month was estimated at 33.81 billion USD, up 12.8% year-on-year, while exports stood at 32.81 billion USD, up 5.7%, resulting in a trade deficit of about 1 billion USD.

The country has posted a trade deficit for the first time after its two-year streak of trade surplus, the ministry said, adding that in the January-May period, it still enjoyed a trade surplus of 8.01 billion USD, with imports valued at 148.76 billion USD, up 18.2%.

Notably, up to 88.8% of the imports in the first five months were machinery, tools, equipment and materials in service of production and business, according to the ministry.

The Vietnam Textile and Apparel Association said the sector saw rosy signs in May and the first five months, with many enterprises receiving enough orders for the third quarter, even the whole year.

The import of cotton, fabric, yarn, and other raw materials in May expanded by 14.32% from the previous month. The five-month revenue also increased 15.34% year-on-year.

The domestic production and business recovery has pushed up the sector’s exports in the five months by 6.3% as compared with the same period last year.

Pointing to sustainability in trade surplus, experts said the May trade deficit is not a big problem, stressing imports regaining momentum raises the hope that exports and domestic consultation would stay on a roll in the next periods.

Nguyen Cam Trang, Deputy Director of the MoIT’s Agency of Foreign Trade, said both domestic and foreign-invested sectors recorded export growth, reflecting their recovery this year.

Associate Professor, Dr. Nguyen Thuong Lang from the National Economics University held that domestic firms have found new orders and invested much in production, helping generate jobs and create resources for economic recovery./.

Canadian enterprises interested in Vietnamese market

The Vietnam Trade Office in Canada has coordinated with agencies of the host country to hold a business dialogue in Toronto, drawing the attention of Canadian businesses that have invested in Vietnam and those planning to seek opportunities in this dynamic Asian market.

Trade Counsellor at the Vietnamese Embassy in Canada Tran Thu Quynh noted that experts and speakers at the event highly valued trade and investment opportunities in Vietnam.

Those having operated or planning projects in Vietnam all consider it as a good market with a plenty of opportunities and a safe place to invest and do business in, said Quynh.

Experts in the field of supporting Canadian businesses to invest abroad and enterprises shared the view that the Vietnamese market has not only multiple opportunities, but also effective support from all-level administrations. The country also boasts political stability and fewer financial risks or market frauds compared to others.

Christine Nakamura, Vice-President of the Asia Pacific Foundation of Canada, stated that Vietnam, one of the fastest growing economies in the Association of Southeast Asian Nations (ASEAN), is paying attention to foreign investment attraction, so it is taking various measures to create more conditions for foreign companies and investors to pour capital into the country.

Many Canadians are also interested in the Vietnamese market, she said, adding that whether it is trade or investment, opportunities are truly open for both sides.

In addition to Vietnam's strong changes over the past years, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Indo-Pacific Strategy have helped draw more attention from Canadian investors to the Southeast Asian nation, she said.

Saina Fan, Ontario Regional Director at Export Development Canada (EDC), said Vietnam is one of the markets that EDC cannot miss. As a specialised export development agency, it has all necessary tools to assist Canadian firms to export to Vietnam, one of the important strategic markets and also the largest export market of EDC in ASEAN.

In the first five months of this year, Canada's exports to Vietnam increased by 27%. The North American country also had 10 new investment projects and 13 mergers in this market, with each project worth about 2 million USD, statistics showed./.

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