Accordingly, Asia Commercial Bank (ACB) has just worked with FPT Information System to launch an authentication solution using chip-based citizen ID cards called FPT.IDCheck and another solution to automate the bank’s professional process via robot named akaBot. The former allows the reading of chip-based citizen ID cards and authentication by face recognition with 100 percent accuracy.

Vietnam Public Joint Stock Commercial Bank (PVcomBank) also collaborated with Quang Trung Digital Technology and Service JSC. to allow the use of a chip-based citizen ID card to open a new bank account via Electronic Know Your Customer (eKYC).

In the upcoming time, over-the-counter transactions and online payments through banks are planned to have the authentication step via a chip-based citizen ID card. This is supposed to completely eliminate the act of renting, borrowing, and selling bank accounts which have existed for many years now.

Foreign-led groups neglecting sci-tech fund involvement

No contribution to a science and technology development fund from foreign enterprises has been put under scrutiny by some lawmakers.

The sci-tech fund, first mentioned in the 2013 Law on Science and Technology, has yet to complete its mission to create new advantages for enterprises to conduct research, and develop technology and innovation.

National Assembly (NA) deputy Pham Van Hoa from the Mekong province of Dong Thap last week asked Minister of Science and Technology Huynh Thanh Dat to clarify the reason for the slow process in the disbursement of the fund, and also why no foreign-invested enterprises were contributing to it, including large-scale groups such as Samsung, LG, or Panasonic.

Minister Dat responded, acknowledging that the incentive policies for using the fund were not appropriate or practical. For many years, these policies have not been widely applied by enterprises, he said.

The latest statistics from the General Statistics Office of Vietnam show that from 2015 to 2021, only 1,281 enterprises, economic groups, or general corporations set up and used sci-tech funds, worth VND24 trillion ($1 billion).

Last year, the Ministry of Science and Technology (MoST) and the Ministry of Finance enabled two circulars guiding the implementation of Resolution No.43/2022/QH15 released in early last year on the fiscal and monetary policies for the delivery of the Programme on Socioeconomic and Recovery and Development.

The resolution mentioned utilising approximately VND5 trillion ($208.3 million) from the Vietnam Public-utility Telecommunication Service Fund to develop telecommunication and internet infrastructure. However, to date, the two ministries have yet to complete disbursement.

Dat said the MoST would review and complete the legal system regarding sci-tech and innovation to better fit with the current requirements in the field. It will also propose new mechanisms, policies, and laws related to public investment and procurement and tax to encourage developments in sci-tech while promoting public-private cooperation in the field.

Upgrading technology is an important requirement for both domestic and foreign-invested enterprises. Statistics from the “Vietnam Investment Report” recently published by the Institute of International Investment Studies indicate that the number of projects with advanced and modern technology originating from European countries is still low, at just 5 per cent.

Most projects used medium-age technology at about 80 per cent, with around 30-40 per cent of this technology coming from China. There is still outdated technology being used in about 15 per cent of cases, leading to risks and challenges regarding environmental pollution, increased energy consumption, and resource depletion.

Value of bonds bought back before maturity by businesses increases 70.6 percent

The value of bonds bought back by businesses before maturity since the beginning of the year increased 70.6 percent year on year with a total value of VND76,523 billion (US$3,293,043).

The Vietnam Bond Market Association (VBMA) announced only one enterprise had successful corporate bond issuance in May. Specifically, Nui Phao Mining and Mineral Processing Company issued 5-year bonds worth VND2,600 billion with the average interest rate of corporate bonds around 9 percent per annum.

Accumulation of corporate bond issuance from the beginning of the year until now reached a total value of VND34,258 billion, through 7 issuances worth VND 5,521 billion accounting for 16 percent and 19 sole issuances worth VND28,737 billion accounting for 84 percent.

According to VBMA data compiled from the Hanoi Stock Exchange, as of June 2, businesses have bought back VND25,598 billion of bonds. The value of bonds bought back by businesses before maturity since the beginning of the year increased 70.6 percent year on year with a total value of VND76,523 billion (US$3,293,043).

Positive outlook ahead for EU investment in Vietnamese food processing industry

EU firms hold an especially advantageous position in terms of gaining access to the Vietnamese food processing market thanks to the close trading ties that exist between the nation and the bloc, as well as a favourable image of European products among Vietnamese consumers, according to details given by Vietnam Briefing news site.

In a recent article the news site highlighted the growth prospects ahead for the nation’s food processing sectors and discussed how EU companies can capitalise on the current opportunities that are in the market.

Vietnam Briefing outlined that food processing represents one of the country’s most important industries, benefitting from its fertile and favourable climate, whilst also having historically been a net exporter of food. Indeed, last year saw the agricultural sector earn a record export value of US$53.22 billion, including a trade surplus of US$8.5 billion.

However, growing domestic demand is now contributing to the country’s own food manufacturing and processing industry. Amid income levels nationwide rising, so too has domestic consumption, a factor reflecting the growing demand for food services and high-quality agricultural products.

The country’s growing middle class, which is set to account for around 40% of the population by 2030, is rapidly becoming a major driver of the food industry’s growth.

The article cited Statista's figures which indicate that in 2021, the food and beverage (F&B) manufacturing industry contributed US$17 billion to the country’s GDP and created jobs for three million people. Meanwhile, the food service industry is anticipated to record a compound annual growth rate (CAGR) of 8.5% between 2022 and 2027, with a growing trend towards dining out.

It outlined there are advantages for EU firms investing in the Vietnamese food processing industry, one of which is the EU-Vietnam free trade agreement (EVFTA), which will over the course of the next decade see the elimination of almost all import duties between the nation and the bloc.

The EVFTA will significantly improve the prospects for bilateral agri-food trade, which would ultimately see an increase in the availability of both specialty Vietnamese products in the EU and European products in the nation.

A notable aspect of the EVFTA is the inclusion of geographical indication (GI) for certain food products. The terms of the deal automatically recognise the GI of 39 Vietnamese food products and 169 European products.

This therefore helps consumers in both markets recognise the authenticity of the products and provides a leg-up for companies when it comes to marketing their products in the respective markets.

Secondly, there is an increasing demand for high-quality food products, with EU investors seeking to capitalise on the growing taste for high-end, high-quality, and organic products in the nation. In the food service industry, consumers are keen to explore new cuisines and ingredients, while niche high-end segments present opportunities for the introduction of specialty products, such as European wines, cheeses, and processed meats.

Thirdly, the country has shown a robust food processing infrastructure. In addition, the relatively low labour cost in the nation makes it a competitive option for the location or relocation of manufacturing and processing facilities.

The Vietnamese food processing industry is therefore increasingly becoming a magnet for foreign investment, noting that the fast pace of development and strong growth prospects have already pulled in many foreign companies and fostered the growth of a range of domestic producers.

Vietnamese-foreign joint ventures, as well as mergers and acquisitions (M&As), have also increased in number over recent years, the article added.

Fisheries exports to rebound during remaining months of 2023

Despite enduring high global inflation, Vietnam’s seafood exports are anticipated to recover ahead in the remaining months of the year, according to figures given by VNDIRECT Securities Corporation.      

The US National Oceanic and Atmospheric Administration (NOAA) stated that prolonged and high inflation in the US has led to a tightened spending, thereby affecting the demand for seafood in the US market. As a result of this Vietnamese seafood exports to the US in April also dropped by 51% against the same period from last year.

According to the General Statistics Office (GSO), fishery output in May stood at an estimated 756,900 tonnes, up 2.9% over the same period last year.

Most notably, pangasius exports to major markets such as the US, the EU, and China enjoyed positive growth due to domestic processing enterprises’ export price being competitive, while pangasius also represents an alternative source for the shortage of whitefish from Russia.

VNDIRECT pointed out that with the import demand from the US market rebounding in the second half of the year due to cooling inflation, reduced inventories, and high demand during the year-end holidays, Vietnamese seafood export turnover to the US is predicted to increase by between 40% and 50% in the time ahead.

Consider easing restrictions on foreign ownership of construction projects: VCCI

To assist the growth of the real estate market, the Vietnam Chamber of Commerce and Industry (VCCI) has proposed allowing foreign individuals and organisations to acquire construction sites.

Early last week, the VCCI sent a document to the Economics Committee of the National Assembly with comments on the amended Draft Real Estate Business Law.

According to the VCCI, several provisions in the draft lack compatibility with pertinent legal documents. For example, the draft stipulates that foreign individuals are not permitted to rent or rental-purchase construction activities.

"With a welcoming policy towards foreign homeownership, it is unclear why, for construction projects, foreigners are not permitted to purchase but only lease the construction site for use in accordance with the purpose of the project," the VCCI said in a statement.

The VCCI posed queries and stated that, if there are qualms regarding national security issues, the same administration process as that applies to foreign property ownership can govern this issue.

Additionally, this regulation is inconsistent with the provisions of Clause 1, Article 14 of the draft, which states, "Foreign organisations and individuals acquiring construction works must comply with the Law on Real Estate Business."

According to current regulations and the Draft Housing Law, foreign nationals are permitted to own homes (under certain conditions). The VCCI added, "This has helped foster the growth of the real estate market."

To promote real estate growth, the VCCI suggested that foreign individuals and organisations be permitted to purchase non-residential building projects, with the exception of areas where security and defence concerns exist – akin to the mechanism implemented for foreign individuals buying houses.

Fair energy transition awaits financing

With public financing insufficient, Vietnam requires more affordable capital than commercial loans for a fair energy transition.
 
At the G7 Summit held in Hiroshima last month, Vietnamese Prime Minister Pham Minh Chinh reaffirmed his commitment to achieving net-zero carbon emissions by 2050, despite Vietnam's status as a developing nation.

The PM proposed that G7 nations continue to assist Vietnam in carrying out the Just Energy Transition Partnership in a practical and efficient manner. The country is already committed to receiving $15.5 billion in support over the next two to three years.

Much of the conversation centred on the financial requirements for a fair energy transition in Vietnam. Estimated costs vary based on the underlying assumptions used in the calculation. However, according to conservative estimates published by the World Bank last summer, Vietnam will need to invest an additional 6.8 per cent of its GDP, or $368 billion, between now and 2040 to achieve net-zero emissions while sustaining high economic growth.

Former deputy director of the Banking Strategy Institute Pham Xuan Hoe has stated that "green finance" may be on the horizon.

In 2018, the State Bank of Vietnam unveiled the Green Banking Project and set an objective that by 2025, the ratio of green credit to total outstanding loans will increase progressively, and 60 per cent of banks are expected to reach and employ loans for green credit projects.

Reducing reliance on fossil fuels will impact all economic sectors, including electricity generation, agriculture, construction, and transportation. According to Ngo Thi To Nhien, executive director of the Vietnam Initiative for Energy Transition, the route map for the advancement of renewable energy must be transparent to maintain a mature market.

Policies on financing mechanisms for renewable energy have gaps, which has prevented the development of this energy source.

The magnitude of the obstacles Vietnam faces on its path to a just energy transition, according to policy analysts, should not be underestimated.

Vietnam's financial system has grown increasingly sophisticated and varied, but its capacity to provide long-term financing has been hampered by the absence of a deep and liquid secondary market.

Governance, corporate disclosure, and accountability are key obstacles to the development of dynamic secondary markets, as evidenced by recent events in the bond market.

Nguyen Thi Hoang Yen, deputy director of the Department of Science, Education, Natural Resources and Environment of the Ministry of Planning and Investment, said that Vietnam appears on the list of priority for energy cooperation, but the number of countries offering to Vietnam will only be an insignificant component of the path to economic expansion and an energy transition.

Meiko Corporation to invest $200 million in electronic manufacturing project in Hoa Binh province

Japan’s Meiko Corporation has recently partnered with the leadership of Hoa Binh province to propose an investment plan for constructing an electronic circuit manufacturing facility at the Da River Left Bank Industrial Park in Hoa Binh city.

According to the e-portal of Hoa Binh, the provincial leadership recently held a meeting with representatives from the Meiko Corporation of Japan to discuss the proposal for investing in a factory that produces electronic circuits at the Da River Left Bank Industrial Park in Hoa Binh City.

During the meeting, Atsushi Sakate, deputy chairman of Meiko Corporation, announced that the group was actively planning to construct a factory for manufacturing electronic circuits on the left bank of the Da River.

This endeavour will involve leasing both land and infrastructure components from Da Hop JSC. The project will encompass a sprawling expanse of 9.2 hectares, with an investment capital of around $200 million.

Sakate expressed Meiko's desire to forge a harmonious alliance with the province, seeking support to propel the venture to success.

Nguyen Phi Long, Secretary of the Hoa Binh Party Committee, said the province was prioritising the implementation of crucial transport projects.

The projects include the expansion of Hoa Lac - Hoa Binh Road and regional connectivity, the Hoa Binh - Moc Chau Expressway project, administrative reform, improvement of the business environment, and the successful attraction of foreign enterprises, particularly Japanese companies, to invest in projects within Hoa Binh.

Can Gio int’l transit terminal project to creat breakthroughs for marine economy

An international transit terminal project worth nearly 5.5 billion USD is expected to be built in Can Gio district of Ho Chi Minh City, creating breakthroughs for the marine economy of the city, the southeastern region, and Vietnam as a whole.

The city’s Transport Department has proposed the municipal People’s Committee to develop the project.

Under the proposal, the terminal will be located at the mouth of the Cai Mep - Thi Vai River, in Ganh Rai Bay, near international shipping routes passing through the East Sea, between regions with great growth potential in Asia.

In addition, the port is adjacent to the Vung Tau - Thi Vai navigation route, which is considered the best in Vietnam today as it can accommodate vessels with a tonnage of up to 232,494 tonnes (24,000 TEU).

The port’s location is considered to have competitive advantages that can help attract international sources of goods from countries such as Cambodia, Thailand, Brunei, the Philippines, and the southern part of China.

Currently, goods from those countries are mainly transshipped via Singapore or Malaysia. If transhipped via the Can Gio terminal, the goods’ journey is reduced by about 30% - 70% compared to the distance transported to Singapore.

Regarding the volume of cargo through the port, it is forecast that the proportion of transshipped container goods will reach 28% - 30% of the total volume of global container transport, equivalent to 274 - 293 million TEUs by 2025. In particular, nearly 60% of the volume of global container shipping is through the East Sea.

Ports in Southeast Asia will account for about 30% of the transshipment volume, equivalent to 82-88 million TEUs by 2025. The capacity of Southeast Asia's international transshipment ports is currently nearly 53.6 million TEUs. So, new ports will still have the opportunity to attract 28.4 - 34.4 million TEU of transshipment goods.

In particular, the investment commitment from the Mediterranean Shipping Company (MSC), the world’s largest container shipping firm, will ensure cargo for the Can Gio terminal. The volume of cargo through the Can Gio international transshipment port is forecast to be 4.8 million TEU by 2030, and 16.9 million TEU by 2047.

Can Gio international transit terminal is said to not affect or compete with Cai Mep - Thi Vai port in Ba Ria - Vung Tau province. The volume of international transshipment at the port is very small, less than 5%, and mainly from Cambodia. Cai Mep-Thi Vai port cannot receive vessels with a capacity of over 10,000 TEU while the Can Gio terminal is built to mainly serve transshipment goods.

Economic expert Tran Du Lich, a member of the Government's Advisory Group, said that the Can Gio terminal project has favourable conditions for implementation, particularly in terms of location and investors.

It’s not a matter if it’s necessary to build the terminal but the matter now is how to deploy it as quickly as possible so as not to miss the opportunity, Lich said.

He suggested the Southeast Coordination Committee needs to join hands to speed up the project concertedly.

The project proposal is expected to be reported to the Ministry of Transport and submitted to the Prime Minister in May 2024. If approved, it is divided into seven implementation phases with the first expected to be completed in 2027 and the last, in 2045.

Forum talks building of regulatory sandbox for circular economy development

The building of a regulatory sandbox for circular economy development in Vietnam was discussed at a forum held on June 12 by the Central Institute for Economic Management (CIEM) and the Programme for Sustainable Economic Development under the German Agency for International Cooperation (GIZ).

CIEM Director Tran Thi Hong Minh said the Prime Minister’s Decision 687/QD-TTg, issued in 2022, approving the plan on circular economy development in Vietnam is one of the country’s first important efforts to identify the road map, requirements, and orientations in this regard.

To soon develop a circular economy and benefit from it, it is particularly important to create momentum for businesses and investors to conduct digital transformation and invent circular economy models, especially in such potential sectors as agriculture, industry, energy, and construction material production, she noted.

Nguyen Anh Duong, head of the CIEM division for general studies, said a circular economy will provide an impetus for innovation and labour productivity improvement, which will help achieve economic prosperity, environmental sustainability, and social equality.

However, Vietnam is encountering considerable challenges, including natural resource depletion, environmental pollution, and climate change, which are becoming more complex amid the growing population, fast urbanisation and industrialisation, and slow transition.

Facing those challenges, the country needs to have a more serious view of sustainable development requirements, enhance its economy’s independence and self-reliance, and promote the resilience of supply chains. In particular, developing circular economy models is one of the important solutions and directions that many countries are adopting, Duong went on.

Minh said to give “vitality” to the policies on circular economy development, the traditional approach is necessary but insufficient, adding it is necessary to gain more momentum green recovery fostering efforts.
 
An important task in this regard is to build a decree on a regulatory sandbox for circular economy development. This decree is being drafted by the Ministry of Planning and Investment and will be submitted to the Government in the second quarter of 2023.

The early formation of a solid legal basis for circular economy development will also help implement relevant international cooperation commitments, she added.

With the facts pointed out and suggestions raised at the seminar, CIEM hoped to propose an effective regulatory sandbox and help complete the draft decree in the time ahead.

Hai Phong city works to lure more Korean investment

Representatives from Hai Phong briefed Korean investors on the northern port city's potential, advantages, investment opportunities and incentives at a trade promotion conference in Seoul, the Republic of Korea (RoK), on June 12.

The event was jointly held by the Hai Phong People’s Committee and the Korea International Trade Association (KITA), with the participation of nearly 200 delegates who are representatives from Korean agencies, organisations, businesses and investors.

In his remarks, Secretary of the Hai Phong Party Committee Le Tien Chau affirmed that the city is working to enhance its comprehensive cooperation with Korean partners, and calling for Korean investment in such areas as smart city and e-administration building, renewable energy, semiconductor component manufacturing, urban and infrastructure development, and construction of hospitals and schools.

Present at the conference, Vietnamese Ambassador to the RoK Nguyen Vu Tung stressed that Vietnam and the RoK are leading, reciprocal partners of each other in economy, trade, investment, labour and tourism.

He cited statistics as saying that the RoK has poured 81.5 billion USD into the Southeast Asian nation so far, of which nearly 10 billion USD has been injected into Hai Phong, mainly in electronics, auto parts and machinery.

Vietnam’s total export value to the RoK through ports in Hai Phong reached 12.3 billion USD last year, while the import revenue stood at 7.8 billion USD, the official continued.

The RoK now ranks first among 42 countries and territories investing in Hai Phong in terms of both quantity and quality of investment projects, he said, adding that the city is home to 14 operational industrial parks and the number is expected to increase by 13 by 2025.

Hai Phong will work harder to improve its investment environment, focus on infrastructure development, particularly in transport, and speed up the formation of new industrial parks, he pledged.  

On this occasion, Hai Phong handed over investment licences to new Korean projects and projects permitted to adjust their existing capital with a combined capital of 230 million USD.

Vietnamese people optimistic about personal finances

Vietnamese people are optimistic about the improvement of their personal finances but the vast majority are anxious about how they will manage their health, a Manulife survey has revealed. 

According to the survey, more than half of respondents expect to see their personal income increase on average 17% in 2023. This will help them achieve their financial goals, the principle of which is saving for retirement (40%), followed by saving for healthcare and medical costs (37%), children’s education (32%) and saving for a new home (30%).

The main tools for achieving personal finance goals, including saving for retirement, are cash (80%), family support and inheritance (42%), and personal health and critical illness insurance (37%). These percentages are broadly in line with consumers in other markets across Asia.

At the same time, Vietnamese consumers see the main obstacles to achieving their goals as economic slowdown (62%), inflation (60%) and a deterioration in health (51%). Loss of income (48%) and the rising cost of healthcare (38%) are also significant concerns.

Higher medical costs are the key factor in nearly all respondents (98%) having health management anxieties, the survey said, outlining the rising expense of medical treatment (43%) as the biggest one. The cost of consultation is also considered too high (31%). Other concerns include the risk of lost income or even job loss (31%) due to illness. 

Close to two-thirds expect to achieve their save-for-retirement goals within 10 years however that may be optimistic given that only 12% of those surveyed said they have a retirement plan in place, compared to an average of 32% across Asia.

The survey also shows millennials are less concerned about saving for retirement (34%) than they are about buying a home (42%). Millennials also expect to retire at 56, while they think bad or chronic health issues will set in at a very young 48, suggesting eight years of bad health before retiring. In contrast, 45-plus-year-olds expect to retire at 61 and anticipate poor health at 67.

The Vietnamese edition of Manulife’s annual Asia Care Survey 2023 was conducted in the first quarter of this year via online self-completed questionnaires in seven markets including mainland China, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, and Vietnam.

A total of 7,224 people, aged 25 to 60 years old, were surveyed in late December 2022 and early January 2023. In Vietnam, 1,015 people were surveyed. Each respondent either owns insurance or intends to buy insurance.

Vietnamese major bourse’s profit plunges 23% in 2022

The Ho Chi Minh Stock Exchange (HOSE)'s total revenue in 2022 reached over 2.5 trillion VND, down 23% compared to 2021, the country’s major bourse has announced.

HOSE's revenue comes from three main activities, including securities trading activities, service provision activities and financial activities.

According to the exchange, the reason for the sharp decrease in revenue in the past year was mainly due to the drop in revenue from securities trading activities which reached only 2.3 trillion VND, down nearly 22% compared to the previous year. Meanwhile, service provision activities recorded an increase of over 10.9% compared to 2021, while revenue from financial activities did not fluctuate much.

HOSE's total expenses in 2022 reached more than 562 billion VND, down 20% compared to 2021; in which, the cost of market monitoring still made up the largest proportion in the cost structure of HOSE, accounting for 66.05%, equivalent to 371.44 billion VND.

This cost of market monitoring was reduced by 25% compared to the previous year. The cost of tools and equipment, and depreciation of fixed assets accounted for 10.2% of the total cost, equivalent to 57.54 billion VND. The cost of salaries and other payables for employees was 87.27 billion VND, accounting for 15.5% and the remaining costs made up 8.18% of the cost structure of HOSE in 2022.

In 2022, the bourse achieved a pre-tax profit of 1.95 trillion VND, down 23% compared to a record profit of 2.5 trillion VND in 2021.

HOSE paid nearly 1.93 trillion VND to the State budget in 2022, down about 17.14% compared to 2021.

According to the exchange, 2022 was a year with many fluctuations and difficulties for the Vietnamese stock market. The instability of the world economy, the geopolitical conflict between Russia and Ukraine, the pressure to adjust interest rates to control inflation by the US Federal Reserve (Fed) and central banks around the world, cases of violations by some individuals and organisations on the domestic stock market, all negatively affected investor sentiment.

The VN-Index as of December 30, 2022 reached 1,007.09 points, down 32.78% compared to the end of 2021. The average transaction value reached nearly 17.19 trillion VND, down 21.88% compared to the previous year. Market capitalisation as of December 30, 2022, attained about 4.02 quadrillion VND, down 31.19% compared to the end of 2021.

According to Nguyen Thi Viet Ha, acting chairwoman of HOSE, although experiencing many sharp declines, in general, Vietnam’s stock market still maintains stable and safe operation. Most of the companies listed on HOSE recovered and made profits this year.

Foreign investors returned to net buy more than 26 trillion VND compared to 58 trillion VND in 2021. Strong GDP growth, inflation under control, proper monetary and fiscal policies, improved business and investment environment were the basic factors that create the foundation for long-term growth of Vietnam’s stock market, Ha said.

In 2022, in the context of many difficulties and challenges, HOSE has achieved some results in market organisation and internal governance.

The supervision of information disclosure of listed companies and supervision of unusual transactions have been strengthened by HOSE in order to tighten market discipline. The market has been organised and operated safely and stably, odd-lot securities trading has been successfully implemented, providing additional trading facilities to meet the needs of investors, Ha said.

Brazil - Vietnam’s largest trading partner in Latin America

Brazil is Vietnam’s trading partner in Latin America and one of the three largest markets of Việt Nam in the Americas market, according to the Vietnam Trade Office in Brazil.

Brazil is a very large and potential market for Vietnamese goods. This market is not too strict and people's tastes are very diverse. 

The General Department of Customs reported that in the first four months of 2023, bilateral trade turnover between Vietnam and Brazil reached 2.32 billion USD, down 2.4% over the same period in 2022. Of which, Vietnam’s exports to Brazil reached more than 855 million USD, up 14%, while Vietnam’s imports from Brazil reached 1.4 billion USD, down 10% over the same period in 2022.

According to the Vietnam Trade Office, Vietnam’s exports to Brazil in the first four months of 2023 included iron and steel, means of transport and spare parts, bags and suitcases, machinery and equipment, textiles, materials of textile, garment and footwear, rubber, seafood, and phones and components.

Meanwhile, Vietnam’s main imported products from Brazil were raw materials and accessories for domestic production, such as corn, machinery, equipment and spare parts, and plastic materials. 

Now, enterprises of the two countries mainly carry out trade activities to meet their production and consumption on the domestic markets. The two countries do not have each other's investors, so the trend of investment cooperation in the two countries is necessary to meet the product supply in each country, according to the trade office.

Meanwhile, the trade activities between Vietnam and Brazil still have many difficulties and challenges. Of which, the geographical distance between the two countries is far, while the transportation is not convenient, so the logistics have not met the import and export needs of the two sides. 

The challenges have also included fierce competition in quality and price from export competitors from China, Thailand, Indonesia, Malaysia, Philippines, and Singapore. 

Additionally, Vietnamese businesses, localities and associations have not been proactive and drastic in expanding markets, including Brazil.

In order to promote exports to Brazil, Ngo Xuan Ty, head of the Vietnam Trade Office in Brazil (concurrently Peru and Bolivia), has suggested that the Ministry of Industry and Trade should propose the Government to promote the development of logistics, helping the businesses reduce transportation costs and facilitate exports. Because the logistics directly affect competition in price and delivery time with export competitors from China, Thailand, Indonesia, Malaysia, the Philippines and Singapore.

At the same time, he has recommended that the ministry proposes the Government to open a flight route connecting Vietnam with Sao Paulo, Brazil, which is the largest trading gateway of South America.

Meanwhile, the businesses, associations and localities should coordinate with the industry and trade ministry to participate in trade promotion programmes such as fairs, exhibitions, trade promotion conferences in Brazil as well as Peru and Bolivia. The Vietnam Trade Office in Brazil is working with partners in Santa Cruz, Bolivia's largest economic centre, to boost exports to Bolivia.

The Peruvian market is an open market with great potential. This is an opportunity to increase the export of Vietnamese goods to this market. Local people are very welcome to import goods with good quality and competitive prices, so Vietnamese businesses should have many trade promotion programmes to introduce their products in Peru, Ty said.

In addition, it is necessary to have a close connection between domestic enterprises to build a community of reputable export businesses for expanding the export market. 

On the other hand, they need to do better in building reputable brands and produce goods with improved quality and competitive prices, he said.

Currently, increased transport and logistics costs have affected export activities. In addition, the export and consumption of goods have suffered negative impacts from many uncertainties in the global market caused by the Covid-19 pandemic, and the conflict between Russia and Ukraine. 

Those factors have affected the production of Vietnam and also the trade activities between Vietnam and other countries, including Brazil.

In 2022, the bilateral trade turnover between Vietnam and Brazil reached 6.78 billion USD, up 6.6% compared to 2021.

Green Trade Forum 2023 kicks off

SGGP Newspaper, HCMC Union of Trading Cooperatives, HCMC Union of Business Associations this morning co-host Green Trade Forum 2023, themed ‘Green Trade – Challenges and Opportunities for Business Development’.

Green going is an inevitable development direction of all businesses, yet domestic small and medium enterprises (SMEs) still encounter various difficulties following this trend owing to their limited capacity.

Hence, for this process to carry out smoothly, it is necessary that functional agencies, credit organizations, and distribution channels provide support to these SMEs. Green Trade Forum 2023 could be a chance for businesses to approach policies to aid them when greening their operations.

The Forum is discussing such essential topics as analyses on green barriers in global trading, technological solutions and support policies as to credit and distribution for business to go green.

This Forum belongs to the 14th Green Consumption Campaign, the largest annual event of this kind held by SGGP Newspaper and relevant units, in order to encourage the community to use environmentally friendly products from companies effectively performing their environmental protection tasks. This Forum aims at forming a good consumption habit among the public – prioritizing environmental aspects when choosing merchandise.

Besides this Forum, this year’s Campaign also includes meaningful activities like building communication strategies for company brands in association with social responsibility for the environment, mobilizing the participation of volunteers in helping the public to identify environmentally friendly products from companies effectively performing their environmental protection tasks.

Particularly, the distribution system of HCMC Union of Trading Cooperatives (Saigon Co.op) is running promotion and preferential price policies along with allocating special space in each of its supermarkets to display environmentally friendly products from companies effectively performing their environmental protection tasks.

Networking event connects Vietnamese, Dutch firms

Nearly 50 Vietnamese and Dutch business leaders and representatives have engaged in a recent networking event, co-organised by the Dutch Business Association Vietnam/Netherlands Vietnam Chamber of Commerce (DBAV/NVCC) and Damen Shipyards Group at the latter’s headquarters in Gorinchem, the Netherlands.

Damen, which is operating in 120 countries across the world, freshly inaugurated its 12th service centre in Southeast Asia within its joint venture with the Song Cam Shipbuilding Joint Stock Company in the northern Vietnamese port city of Hai Phong. In addition to the Damen Song Cam, the Dutch group has also cooperated with a series of Vietnamese shipbuilders.

In his remarks at the event, Vietnamese Ambassador to the Netherlands Pham Viet Anh lauded its significance in expanding the relationship and opening up cooperation opportunities for the current and future DBAV/NVCC members.

He expressed his delight to see more and more Vietnamese businesses such as Vinfast and FPT investing in the Netherlands and joining this dynamic business network.

Since Vietnam and the Netherlands set up their diplomatic relations on April 9, 1973, the two sides have jointly developed a sound friendship and cooperation across all fields, from politics, economy, and education to defence and security. The Netherlands is a leading trading partner and investor of Vietnam in Europe. Bilateral trade reached 11.1 billion USD in 2022, up 32.6% compared to 2021.

Ten transitional renewable power plants connect to national grid

After many months of waiting and completing necessary processes and procedures between investors and power distributors, up to now, ten renewable power projects have successfully sold electricity to the national grid.

As of June 13, the Vietnam Electricity Group (EVN) has announced that 11 transitional renewable energy projects have submitted documents for the Commercial Operation Date (COD) certification. Of these, ten projects and component projects, with a combined capacity of 536.52MW, have successfully undergone COD procedures and officially started commercial electricity generation connected to the national power grid.

However, according to EVN, the contribution of renewable energy projects to the national grid is relatively low. For instance, on June 11, the electricity consumption for the day across the entire system was 751 million kWh, while the electricity generated by COD-certified transitional renewable energy projects was only slightly over 3.2 million kWh. As a result, the electricity generation from these transitional projects accounts for only 0.43 percent of the total electricity output of the entire system.

The total cumulative electricity generation from COD-certified transitional renewable energy projects, calculated from the COD date until June 12, amounted to approximately 29,270 MWh.

Vietnamese leading ICT firms attend Asia Tech x Singapore 2023

Twenty-five leading Vietnamese ICT firms, part of a delegation led by Deputy Minister of Public Security Le Van Tuyen, attended Asia Tech x Singapore 2023 last week to showcase their advanced technology products to roughly 800 international partners.  

Asia Tech x Singapore 2023 (ATxSG), Asia's flagship tech event where technology intersects with society and the digital economy, marked the participation of security officials, technology experts, and business leaders around the world.

Vietnamese Ambassador to Singapore Mai Phuoc Dung, visited the Vietnamese exhibition area and urged more connections at Asia's premier technology event.

During the Ministerial Roundtable on AI Governance and Online Fraud, Deputy Minister of Public Security Le Van Tuyen delivered a speech on improving international cooperation to build trust in the digital age. He emphasized that "cybersecurity challenges are growing as cybercriminals use advanced technologies that directly affect many sectors, making prevention and countermeasures difficult."

He warned of organized transborder online fraud crimes that use a variety of services, tools, and malware to carry out nefarious activities, challenging law enforcement agencies.

He proposed solutions to combat cybercrime, high-tech crime, and online fraud. He highlighted the importance of cooperation, saying that Vietnam, Singapore, and other countries must promote awareness and action, especially in building legal frameworks; expand international cooperation on cyber security and against high-tech crime.

On the sidelines of the event, the Vietnamese delegation also met with Chng Kai Fong, Permanent Secretary of Singapore's Ministry of Communications and Information, who worked at the Personal Data Protection Commission (PDPC) under Singapore's Infocomm Media Development Authority (IMDA) and the Vietnamese Embassy in Singapore.

Speaking at ATxSG, Singapore's Deputy Prime Minister and Minister for Finance Lawrence Wong said that cybersecurity, connectivity, and the responsible use of artificial intelligence (AI) are among the vital digital priorities that must be addressed. He also predicted that Southeast Asia's digital economy will grow fivefold to US$1 trillion by 2030, driven by new Internet users and a growing middle class.

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