Hanoi capital city is taking measures to bring into full play opportunities brought about by craft villages to facilitate its development, as it accounts for 59% of the country’s total number of trade villages.

Currently, these villages are creating jobs for about 1 million labourers, their production value is about 22 trillion VND (935.9 million USD), and their export turnover, about 200 million USD per year.

To make the most of this advantage, the capital city will build at least one centre for design, introduction, promotion and sale of OCOP (one commune-one product) products of craft villages associated with tourism development, and organise the evaluation and classification of products registered to participate in the city-level OCOP programme in accordance with regulations.

It will implement and complete the goals set out in the OCOP programmes to 2025 of the city and the Government.

According to the municipal Department of Industry and Trade, Hanoi leads the country in the number of OCOP products, with nearly 1,700 ranked from 426 enterprises, cooperatives, and business households in the capital. As many as 80 showrooms for introducing and selling OCOP products have been established in districts and towns, helping widely promote products to consumers and tourists.

Hanoi has recognised more than 2,140 OCOP products, including six 5-star OCOP ones, with more than 800 active trade villages, helping boost economic development in rural areas while generating jobs for local labourers.

The city aims to have an additional 2,000 OCOP products rated three stars and above by 2025.

The OCOP programme, initiated by the Ministry of Agriculture and Rural Development in 2008, is based on Japan’s “One Village, One Product” programme and Thailand’s “One Tambon, One Product”. It is an economic development programme for rural areas and also to help implement the national target programme on new-style rural area building.

South Korean chairmen and CEO delegation led by President Yoon Suk Yeol to visit Vietnam

Chairmen and CEOs from top South Korean conglomerates, including Samsung, SK, Hyundai, LG, Hanwha, Hanjin, and Hyosung, join President Yoon Suk Yeol on his groundbreaking state visit to Vietnam, fostering a transformative landscape for unprecedented collaboration and growth.
 
President Yoon Suk Yeol of the Republic of Korea graces Vietnam with a state visit from June 22-24. This marks President Yoon Suk Yeol's maiden voyage to the vibrant nation of Vietnam, symbolising the dawn of a new era in their bilateral relations.

What sets this visit apart is the illustrious entourage accompanying the president on this diplomatic expedition. It boasts leaders from 205 of South Korea's most pre-eminent corporations, including industry titans such as the chairman of Samsung Electronics, Lee Jae-yong; chairman of the SK Group, Chey Tae-won; CEO of Hyundai Motor Group, Euisun Chung; chairman of LG Group, Koo Kwang-mo; vice chairman of Hanwha Group, Kim Dong-kwan; chairman of Hanjin Group, Cho Won-tae; and vice chairman of Hyosung Group, Cho Hyun-sang.

Kim Tae Hyo, national security advisor to the president, said that the primary objective of the visit was to forge an alliance between South Korea and Vietnam, encompassing multifaceted sectors such as finance, cutting-edge technology, information, robust, and sustainable energy.

The country is firmly solidifying its position as one of the foremost contributors of foreign direct investment in Vietnam.

South Korea's unwavering commitment to Vietnam's economic development is evidenced by its diverse array of investments spanning multiple sectors. From pivotal contributions in the energy industry, spearheading innovative renewable energy projects, to bolstering the financial sector with cutting-edge technologies and expertise, South Korean investments permeate various domains including manufacturing, technology, infrastructure, and beyond.

This comprehensive approach showcases South Korea's foresight in harnessing the full spectrum of opportunities in Vietnam, solidifying their position as a strategic partner in the nation's rapid growth and progress.

Korean beauty technology firm enters Vietnamese market

Coati Co., Ltd., a beauty-care company with its headquarters in Donggu, Gwangju city the Republic of Korea (RoK), has officially announced its plan to enter the Vietnamese market.

To make inroads into the Vietnamese market, Coati, which specialises in hair beauty technology and training hairstylists, has signed a contract with a company in Hong Kong (China) and completed the development of the Artist Fun website at vn.artistfun.com to provide online education services. Learners can find videos on how to cut women's hair for beginners, as well as hairstylist training courses.

The company is seeking business partners to share information and benefits related to hair beauty technology. Coati expects to attract approximately 100 million Vietnamese customers to use Korean hair-care technology via the website.

Taking advantage of the widespread Hallyu (Korean wave) in Vietnam, the company is also developing customised teaching programme tailored to the Vietnamese environment, focusing on training a professional workforce.

Number of passengers through Noi Bai airport on summer days surges

The number of passengers through Hanoi’s Noi Bai International Airport, the second busiest airport in Vietnam, on the first days of this summer has surged, and is expected to maintain at a high level to mid-August.

On the first 12 days of June, the airport served over 1 million passengers with more than 7,000 flights, up 3% against the same period last year.

Notably, on June 11 – the first Sunday after the high school entrance exam, over 103,000 passengers on board over 620 flights passed through the airport

Its managers predict that in the peak period this summer, it will serve 109,000 passengers, including nearly 29,000 foreigners, each day, up around 38% compared to that on normal days, and 15% against the same period last year.

The increase is attributed to rises in the number of foreign tourists and international flights.

Noi Bai is making necessary preparations to better serve passengers during the peak time, they added.

Hanoi to host fire safety exhibition next month

Secutech Vietnam 2023, the largest professional exhibition and conference on security technology and fire safety and rescue in Vietnam, will be held in Hanoi from July 19-21.

The event will be jointly organised by the Fire Prevention and Rescue Police Department, the Vietnam Advertisement and Fair Exhibition JSC (VIETFAIR) and the Messe Frankfurt Group, Germany.

The exhibition will introduce advanced products and technologies in the field of fire-fighting, security, safety, prevention and rescue, and equipment used in industrial zones, roads, banks, buildings and smart houses.

According to Department, the event is a chance to strengthen international cooperation, share experience, technology transfer in the field while promoting images of Vietnamese fire-firing and rescue forces in the region and the world.

The event will be an opportunity for people to experience practical fire-fighting skills and escape and rescue methods in different situations.

Secutech Vietnam 2022 held in Ho Chi Minh City featured more than 250 booths of agencies, organisations, manufacturers and suppliers in the industry from many territories and countries in the world, including Germany, the US, Italy, India, Japan, Singapore, the Repuclic of Korea, and China, among others.

Samsung, Shinhan Bank jointly bring wallet solution closer to Vietnamese

Samsung Vina Electronics signed a memorandum of understanding (MoU) with Shinhan Bank Vietnam to establish a strategic relationship between Samsung Wallet and financial products from Shinhan Bank on June 14.

Sharing the same vision of creating a seamless and secure digital payment ecosystem, the partnership will serve as a foundation to accelerate a convenient and comfortable lifestyle for both Galaxy users and Shinhan customers within the scenario of mobile payment making its way to all activities and entertainment of Vietnamese customers.

The partnership will enable Galaxy users to seamlessly connect their Shinhan Bank cards to Samsung Wallet, empowering them to make fast and secure payments using their smartphones. With Samsung's cutting-edge management and security platforms, this collaboration will offer a convenient, confident, and reassured feeling to customers as they get used to using mobile payment for daily activities.

Galaxy smartphone users will benefit from Samsung's wide ecosystem when special offers from Shinhan Bank for Korean companies' products and services in Việt Nam are integrated and managed directly in the Samsung Wallet digital wallet. Users can thoroughly enjoy life with top services thanks to Knox Guard's mobile payment method with the finest security quality.

Exchange held for HCM City youth, Vietnamese peacekeepers

Youngsters in Ho Chi Minh City had an exchange on June 14 with peacekeepers of Vietnam's Level-2 Field Hospital Rotation 3 in South Sudan.

The event aimed to inspire patriotism and national pride among local youth, and highlight the role of the youth in UN peacekeeping operations.

At the exchange, peacekeepers, doctors from Level-2 Field Hospital Rotation 3 told stories and memories of their operations in South Sudan, and their training sessions before joining the mission.

Captain Nguyen Manh Hiep, a nurse of the air ambulance force who has participated in the UN peacekeeping missions three times in the Republic of South Sudan, said that each officer and soldier of the Vietnamese peacekeeping force always remind themselves to promote the good traditions of the force in general and Vietnam’s Level-2 Field Hospital in particular. They have acted as ambassadors of peace and culture, bringing the image of people and military of Vietnam to the world, he said.

Within the event’s framework, a number of activities were held, including a photo exhibition on activities of Vietnamese peacekeepers in South Sudan. The Vietnam Youth Federation in HCM City presented Vietnam's Level-2 Field Hospital Rotation 3 with 100 bags of seeds and 100 “I love my Fatherland” badges.

Through the peacekeepers, sponsors of the event presented 100 pairs of shoes to needy adolescences and children of South Sudan.

Meanwhile, the Vietnam Youth Federation in HCM City and Level-2 Field Hospital Rotation 3 signed an agreement on cooperation in organising regular exchanges and dialogues, making communications works, holding online exchange on Lunar New Year occasion, and supporting children of the peacekeepers in Vietnam.

Urban economy to make up 85% of Hanoi’s GRDP by 2025

The People’s Committee of Hanoi has approved a project on urban economic development, under which the urban economy is hoped to make up 85% of the capital city’s gross regional domestic product (GRDP) by 2025, and 90% by 2030.

The share of the digital economy in the city's GRDP will reach 30% by 2025 and 40% by 2030.

The city also expects that e-commerce sales will account for 10% of the total retail sales of consumer goods and services in the city by 2025, and 20% by 2030.

Although urban areas account for only over 10% of the city's area, they are holding an increasingly important position and role in the capital’s socio-economic growth and development.

The urban economy has also affirmed its role as a driving force for economic development, and the nucleus of promoting the transformation of the city's economic and labour structure.

In the 2016-2020 period, budget revenue in urban areas accounted for 78.8% of the total of the whole city.

Individual customers keep depositing at banks despite interest rate cut

Though deposit interest rates listed at commercial banks have decreased rapidly after the State Bank of Vietnam's (SBV) policy rate cut, savings of individual customers have kept rising.

The latest data of deposits at commercial banks by the end of March 2023 released last week by the SBV showed unexpected numbers. While deposits of economic organisations decreased sharply by 4.87% compared to the end of last year to more than 5.66 quadrillion VND, deposits of individual customers increased by 7.08% to more than 6.28 quadrillion VND.

Since the beginning of 2023, the deposits of the individual customers have continuously increased to exceed 6 quadrillion VND. Within the first three months of this year, individual customers deposited into the banking system an addition of 415 trillion VND.

The deposits of individual customers into the banking system have increased in the context of high savings interest rates in late 2022 and early 2023. The SBV has just begun to reduce the policy interest rate since mid-March this year and after about three months, it made three policy rate cuts.

The deposit interest rate currently decreases rapidly. Many joint-stock commercial banks only list the highest deposit interest rate at around 8% per year, while the highest rate at State-owned commercial banks is about 6.8% per year.

Analysis of some experts showed the deposits of individual customers into the banking system have increased rapidly when other investment channels such as real estate, securities, gold and foreign currencies haven’t been attractive. The stock market has only prospered for about two months and officially surpassed 1,100 points at the beginning of this month.

Meanwhile, deposits of economic organisations have dropped sharply compared to the end of last year, which has reflected difficulties of firms. Instead of depositing at banks as previously, firms had to withdraw their savings to pay for production and business activities.

Analysts of SSI Securities Company said the deposit interest rate is continuing to cool down, but it is still quite different between groups of State-owned commercial banks and joint-stock banks for tenors of more than six months.

In its June strategy report released last week, Yuanta Vietnam Securities Company said the common interest rate of 12-month deposits listed at commercial banks currently falls to less than 8% per year.

The SBV has also required banks to reduce lending rates by using credit growth quota for management so interest rates are continuing their downward trend. However, the rate cut of lending rates will lag behind deposit rates.

Fifteen social enterprises compete at the Young Social Entrepreneurs Global 2023 programme

Fifteen social enterprise teams will advance to the final phase of the Singapore International Foundation’s (SIF) Young Social Entrepreneurs (YSE) Global 2023 programme.

The teams were selected from an initial pool of 46 teams, comprising 79 participants of eight nationalities, who attended the YSE Global 2023 – Workshop. The 15 selected teams were from China, India, Indonesia, Laos, Malaysia, Singapore and Việt Nam. The YSE Global programme inspires, equips, and enables youth from around the globe to start or scale up their social enterprises in Singapore and beyond. Since 2010, the programme has nurtured a global alumni network of more than 1,400 change makers, representing 43 nationalities and 674 social enterprises.

This year, more than a quarter of the solutions proposed by participating teams (28 per cent) contribute to UNSDG Goal 3 – Healthcare and Wellbeing. They include health-tech applications and platforms that provide improved healthcare access to vulnerable groups, including low-income communities and mental health patients.

Over the next four months, the selected teams will be mentored by leading business consultants from McKinsey & Company, Temasek International, and established entrepreneurs relevant to their sectors. The teams will work with their mentors to sharpen their business acumen and broaden their cultural perspectives through a series of webinars and dialogues to expand their perspectives on social entrepreneurship through regional and local players in the social enterprise landscape.

The 15 teams will reconvene at the YSE Global 2023 – Pitching for Change event in November this year. They will then present their refined business plans for a chance to receive funding of up to S$20,000 each.

The selected participants are looking forward to the next chapter of their YSE journey. One of them was Vũ Hải Nam, Founder and CEO of tMonitor. The Vietnam-based social enterprise aims to improve indoor air quality while mitigating the risk of fire and harmful gasses. It provides real-time monitoring through software that can collect, monitor, and analyse air quality using artificial intelligence.

Most reputable ICT firms in Viet Nam announced

The Viet Nam Report JSC has announced a list of the top 10 most reputable information and communications technology (ICT) companies in Viet Nam this year, with Viettel Military Industry and Telecoms Group (Viettel) and FPT Corporation in the lead.

Other companies include Viet Nam Posts and Telecommunications Group (VNPT), MobiFone Telecoms Corporation (MobiFone), CMC Corporation (CMC), Telecommunication Services Corporations (VNPT-Vinaphone), Viet Nam Technology & Telecommunication JSC, Hanel Communications JSC, Viet Nam Maritime Communication and Electronics Single Member Limited, and Tien Phat Technology Corporation.

Meanwhile, the list of top 10 software services, solutions and system integration providers this year include FPT Software, FPT Information System Corporation (FPT IS), Misa JSC, VNPT Technology, CMC Technology & Solution Company Limited, and Elcom Technology Communications Corporation, FSI Technology Development and Trading Investment JSC, HPT Viet Nam Corporation, Joint Stock Company for Telecom and Informatics, and HIPT Group Joint Stock Company.

The lists were made in an objective and independent manner, based on the results of the financial capacity assessments of the enterprises as well as their reputation evaluation using Media Coding method and surveys with relevant parties between May and June.

Viet Nam Report General Director Vu Dang Vinh said that amid emerging challenges and unpredictable developments in the world macro-economic situation, the ICT sector still showed strong growth and continued to be a bright spot in the Vietnamese economy last year.

He cited a report by the Ministry of Information and Communications as saying that the ICT sector's revenue reached US$148 billion, a rise of 8.7 per cent year on year, while about 70,000 new firms were established in the year, up 9.5 per cent.

Four years since the "Make in Viet Nam" campaign was officially launched, ICT has become the driving force of the country, playing a leading role and creating a foundation for the development of the digital economy, digital society and digital government.

The sector’s contribution to GDP as well as the export turnover of hardware - electronics also saw a rise compared to 2021.

However, since late last year and the beginning of this year, the ICT sector has faced many difficulties due to the economic recession.

As of March, the sector’s revenue was estimated at nearly VND845.58 trillion ($36 billion), equivalent to 20 per cent of the yearly plan. Meanwhile, exports of hardware and electronics products reached about $26.6 billion, down 9.5 per cent year on year.

Vinh said that Viet Nam Report’s survey showed that all ICT businesses and experts did not expect strong growth in the sector, with 71.4 per cent predicting continuous growth and 28.6 per cent forecasting a downturn in the second half of the year.

The survey pointed out major difficulties facing the sector this year, including those in human resources, legal regulations, competitions among businesses and capital access.

In order to maintain growth in the current difficult context, ICT businesses were advised to maintain their development goals, along with balanced and comprehensive action strategies regarding technology, process, and people-related issues.

Viet Nam Report suggested six prioritised strategies for this year, including improvement of competitiveness, enhancing high-quality human resources, increasing research and development activities, improving the reputation and image of the businesses in the media, enhancing the efficiency of the management system, especially the risk management system and upgrading the information technology infrastructure.

Retail stocks see sharp increase in prices

Retail stocks are attracting strong cash flow with large gains in prices, in the context that the stock market is moving positively.

Since the end of May, many retail stocks have increased significantly. For example, Mobile World Group (MWG) has increased by 13.1 per cent; FPT Retail (FRT) has risen by 14.4 per cent; Petrovietnam General Services JSC Corporation (PET) has gained by 15.2 per cent; and Masan Group (MSN) has risen 11 per cent.

The first quarter of 2023 recorded a relatively difficult business situation for this industry group. MWG reported a profit of just over VND21 billion in the first quarter, a record low since listing. FPT Retail (FRT) even suffered a net loss of VND5 billion, recording the biggest quarterly loss of this retail giant since 2020.

After a difficult period, retail sales of consumer goods tend to increase again. Data from the General Statistics Office shows that the total retail sales of consumer goods and services in the past five months were estimated at VND2.52 trillion (US$102 million), up 12.6 per cent over the same period last year. This is the highest growth rate ever recorded in the same period in years from 2015 onwards.

In the context that exports continue to face difficulties, the domestic market of nearly 100 million people, 50 per cent of which is a young population, with diverse consumer needs, is really a potential market for retail businesses.

A series of policies on taxes and consumer loans have been issued, which will further promote consumption growth. At the end of April, the Government issued Resolution 59/NQ-CP on solutions to support and remove difficulties for borrowers to serve their daily life and consumption needs.

The Ministry of Finance in April also proposed to continue the policy of reducing VAT by 2 per cent in 2023. The expected implementation time is from July 1 to the end of December 31, 2023.

However, Viet Dragon Securities (VDSC) emphasised that amid the context of an economic downturn, consumption cannot recover quickly. Essential items will still witness high sale volume, whereas non-essential products, especially technology devices, may experience the sharpest decline in consumption in 2023.

In its latest report, Bao Viet Securities (BVSC) forecasts that net profit of Mobile World Group (MWG) in 2023 will drop sharply by 70 per cent compared to last year, to VND1.23 trillion.

BVSC expects that the business results of Mobile World will recover significantly after the end of 2023, forecasting net profit in 2024 and 2025 will reach VND2.86 trillion and VND3.83 trillion, respectively; about the same level as in 2019 but still lower than the peak in the period of 2021 - 2022. 

Vietnamese stock market becomes reliable destination for investors worldwide: official

The Vietnamese stock market has become a reliable destination for many investors worldwide in recent years, especially those in the Asia-Pacific, said Chairwoman of the State Securities Commission Vu Thi Chan Phuong.

Addressing the 48th Annual Meeting of the International Organisation of Securities Commissions (IOSCO) held in Bangkok, Thailand, from June 13-15, Phuong said the Vietnamese stock market had witnessed impressive developments in recent years, maintaining a vibrant performance and good liquidity, and increasingly asserting itself as an important long-term capital mobilisation channel for the economy and businesses.

It has also become an attractive investment channel for the public, attracting a growing number of domestic and foreign investors.

Not only enjoying more favourable conditions in capital mobilisation, Vietnamese firms have also made significant progress in governance, transparency and sustainable development, she said.

In order to develop the stock market towards quality and sustainability, Viet Nam is striving to upgrade its market classification from frontier to emerging, persistently pursuing market restructuring based on four main pillars of commodity base, market organisation, investor base, and securities business organisation.

The 48th Annual Meeting of IOSCO comprises a series of annual meetings of the Asia-Pacific Regional Committee (APRC), the Africa-Middle East Regional Committee, the Inter-American Regional Committee, the European Regional Committee, the Growth and Emerging Markets Committee (GEMC), the Presidents' Committee (PC), and the General Assembly.

During the meeting, the Vietnamese delegation attended the meetings of the APRC, the GEMC and the PC, as well as the expanded sessions of IOSCO.

This year, IOSCO also collaborated with the Securities and Exchange Commission of Thailand to organise four major workshops on the frontier markets and the trend of moving towards emerging markets, reshaping the future of finance and digital assets, capital markets for a more sustainable and green world, and raising awareness and investment in a digitalised world.

IOSCO was established in 1983. Its member organisations oversee more than 95 per cent of the global securities market in over 130 economies. The GEMC represents 75 per cent of the full and official members of IOSCO. Each market can only have one full and official member participating in IOSCO, while the remaining agencies can become affiliate members.

The State Securities Commission of Viet Nam was officially recognised as a full and official member of IOSCO at the 26th Annual Meeting held in Stockholm, Sweden on June 26, 2001. 

Policy interest rate expected to further reduce in H2 2023

The State Bank of Vietnam (SBV) may further reduce its policy interest rate if the Fed’s monetary policy reverses in the second half of this year, according to analysts from VNDirect Securities Company.

The analysts also expect the average 12-month deposit interest rate will drop to 7 per cent per year in 2023.

Though deposit interest rates have decreased by 0.5-2 percentage points per year for all terms in recent months, especially after the SBV reduced its policy interest rates on March 15 and April 3 this year, lending interest rates have had a lower decrease compared to the reduction of deposit rates, except at State-owned banks, which has caused difficulties for many firms needing capital.

Ly Kim Chi, chairman of HCM City Food Association and vice president of HCM City Business Association, said with loan interest rates around 10 per cent per year, firms will struggle to recover. Therefore, she suggested that the SBV further reduce its policy interest rate by 0.5 percentage points to create conditions for banks to reduce lending rates.

According to banking expert Can Van Luc, net profit margin (NIM) of banks in 2022 was 3.5 per cent, higher than 3.2 per cent in 2021. In 2023, banks' NIM will likely return to the level of 2021. This year, both the Government and the SBV have requested commercial banks to reduce interest rates. Many commercial banks have deployed preferential interest rate loan packages to stimulate credit demand.

Explaining the current high lending interest rate, the SBV said the banking system is still the main capital provider for the economy. Viet Nam's economy depends mainly on bank credit capital with the credit-to-GDP ratio at the end of 2022 being 125.3 per cent while the capital demand for economic development is always high, which creates pressure on lending interest rates.

After the COVID-19 pandemic, the economy recovered so the capital demand for production and business increased, the banking system used the maximum amount of raised capital to provide capital for the economy. Currently, the gap between deposit and credit in Vietnamese dong is at VND167 trillion and the ratio of credit per deposit in the dong is at 101.4 per cent, slightly down from 102.3 per cent at the end of 2022.

The banking system mainly raises short-term capital (about 88 per cent of deposits have a term of 12 months or less), but it still has to meet the medium- and long-term lending needs (more than 52 per cent of the dong-denominated outstanding loans of the banking system is medium and long term). Therefore, it has put pressure on deposit rates.

Besides, Viet Nam deeply integrates into the global economy so fluctuations in the world's financial and currency markets have a strong and rapid impact on domestic interest rates and exchange rates. The world’s interest rate level increased in 2022 and remained at a high level in the first months of 2023. Major central banks also continue to implement the roadmap to tighten monetary policy.

In addition, domestic inflation pressure also affects interest rates. Average inflation in the first four months of 2023 was at 3.84 per cent and core inflation was at 4.9 per cent, while the inflation target for 2023 is 4.5 per cent.

Inflationary pressure makes people expect a positive real interest rate, so it is difficult for banks to reduce deposit rates, leading to banks’ high input costs. Therefore, raised capital of the whole industry as of April 27, 2023 only increased by 1.78 per cent, while the credit growth rate was 3.04 per cent, which makes it difficult for banks to cut lending interest rates.

Pham Chi Quang, director of the SBV’s Monetary Policy Department, said lending interest rate cut in the market was slower than that of deposits because banks had previously raised deposits at high interest rates. Besides, each bank has a different interest rate reduction roadmap depending on their cost of raised capital and financial strength.

According to the SBV, the lending interest rate is agreed upon by banks and the customer according to the market capital supply and demand and the customers’ credit level.

However, on the basis of macro-economic developments as well as domestic and foreign monetary markets, the SBV will study and control interest rates in accordance with the macro balance, inflation and monetary policy target. It will also encourage banks to implement cost-saving solutions to reduce lending interest rates in order to support firms and households to recover and develop production and business. 

Vietnam, UK work to foster ICT partnership

A workshop promoting cooperation opportunities with Vietnamese technological firms was held in London on June 14, as part of the Vietnam-UK Friendship Year 2023 to mark the 50th anniversary of diplomatic relations between the two nations.

Co-organised by the Vietnam Software and IT Services Association (VINASA), the UK's technology trade association techUK, the Vietnamese Embassy and Trade Office in the UK, the event introduced the ICT capacity of Vietnamese companies and connected them with their UK peers.

Vietnamese Ambassador to the UK Nguyen Hoang Long expressed his hope that in the next five years, technology will be a key area of cooperation between the two nations, particularly concerning digital health, financial centres, and financial technology.

Vietnam is currently a top destination in Southeast Asia for ICT, while the UK is the best place in the world for digital business. Total revenue of the Vietnamese ICT industry increased from 30 billion USD in 2013 to 148 billion USD today, with an average annual growth rate of 10.5%, said Hoang Anh Tu, Deputy Director of the Department of International Cooperation under the Vietnamese Ministry of Information and Communications.
 
Tu said Vietnam is seeking partners in the digitisation process and considers British technology businesses among its top partners.

VINASA Deputy Chairwoman and Secretary General Nguyen Thi Thu Giang held that Vietnam and the UK have a lot of potential for ICT cooperation, which covers the development of digital transformation solutions for both the public and private sectors; digital transformation for cities and urban areas; new technologies such as AI, blockchain, and metaverse; and the establishment of IT/software development centres.

Vietnam, with its strategic location in the region, is also a gateway for British enterprises to enter the ASEAN market, she added.

Deputy CEO of techUK Antony Walker emphasised that with the UK’s policy of leaning towards the Indo-Pacific and its participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), its cooperation with Vietnam at the governmental, sectoral, national, and business levels is more important than ever to the UK.

Debby Davidson, co-founder and COO of Acclime, said tech firms’ demand for digital transition coupled with the Vietnamese Government’s digital transformation policy will make the country an attractive destination for British businesses within the next five years.

Meanwhile, Mohan Naidu, Managing Director of FPT Software UK, pointed out Vietnam’s advantages as an emerging innovation destination.

The country sees 57,000 IT bachelors graduating each year, he said, adding that having a thriving ITC industry, it was the world's second fastest growing digital economy in 2022 and is expected to rank first in 2024.

Nearly 180 Chinese firms to attend Automechanika Ho Chi Minh City 2023

As many as 180 Chinese firms operating in the auto parts industry are set to participate in the Automechanika Ho Chi Minh City 2023 from June 23 to 25 to seek business opportunities in the Vietnamese market, according to Calvin Lau, director of Messe Frankfurt Co., Ltd (Hong Kong).      

More than 450 exhibitors from 21 countries worldwide are expected to join in the event, which is being co-organised by Messe Frankfurt (HK) Ltd, Chan Chao International Enterprise Group, and Yorker Exhibition Service Vietnam.

Most notably, the number of participating Vietnamese auto parts enterprises are set to increase by 50% compared to the 2019 trade show.

The organisers said foreign exhibitors are anticipated to showcase cutting edge technologies, spare parts, accessories, steering systems, electronics, tires and wheels, auto parts for diagnostics and repair of vehicles, as well as logistics services for passenger vehicles, commercial vehicles, and motorcycles.

A wide range of activities will take place during the three-day event, including Vehicle Maintenance Day, AUTO NITZ banquet, car drift show, and an car audio competition -EMMA 2023.

Hanoi cancels two new urban projects

Authorities in Hanoi have suspended two new urban area projects in the outskirt district of Me Linh after they failed to complete appraisal procedures, allowing over 200 hectares to be recouped for other developments. 

The Me Linh-Dai Thinh and Thanh Lam-Dai Thinh projects cover 202 hectares in Me Linh District, around 30 kilometres from central Hanoi, with both invested in by the Housing and Urban Development Corporation.

According to Hanoi’s People’s Committee, both projects were previously approved for planning and had not yet carried out appraisal procedures for investment as regulated under the current law.

City authorities ordered relevant agencies to take over the two plots of land and ensure efficient land use.

The Me Linh-Dai Thinh urban new project covers an area of 136.6 hectares while the remaining project covers 53.1 hectares.

Ten renewable power projects connected to national power grid

Ten renewable power projects that have been connected to the national power grid generated a total of 29,270 MWh since their commercial operation, according to Vietnam Electricity Group (EVN).

As of June 13, a total of 11 projects have submitted the necessary documents to determine their commercial operation date. Ten of them with a combined capacity of 536 MW have completed the required procedures for commercial operation and are eligible to connect to the national grid, according to the Vietnam News Agency.

To date, out of 85 renewable energy transition projects, 68 have submitted their documents to EVN for price negotiations and power purchase agreements. Among them, investors of 59 projects have proposed a tentative price, which is equivalent to 50% of the price ceiling set by the Ministry of Industry and Trade.

EVN has held price negotiations with 55 out of the 59 projects, and the Ministry of Industry and Trade has approved tentative prices for 43 of them.

According to EVN, the remaining projects, with a total capacity of 940 MW, have not yet submitted their documents for price negotiations.

South Korea becomes largest investor in Haiphong

South Korea has invested nearly US$10 billion in Haiphong City, making it the largest investor in the port city of northern Vietnam.

Le Tien Chau, secretary of the Haiphong City Party Committee, led a delegation to South Korea to attend a trade and investment promotion conference between Haiphong and South Korea in Seoul from June 11 to 14.

During the conference, the Haiphong authorities presented investment certificates to new projects and amended certificates to existing projects that had revised up capital. These projects include Bumhan Vina Heavy Industries – Nam Dinh Vu, Haewon Vina Company Limited, Hala Electronics Vina Company Limited, and EST Vina Haiphong Company Limited.

At the event, the South Korean business association signed a memorandum of cooperation with Haiphong, committing to invest up to US$1.5 billion in the city in the near future.

The trade and investment promotion event attracted over 150 companies, investors, and investment consulting organizations from South Korea, exploring business opportunities in Haiphong.

To date, South Korea has invested US$81.5 billion in Vietnam, with 12% of that capital being poured into Haiphong, totaling US$10 billion.

Power generation needs extra 1.2 million tons of coal in H2

The demand for coal is projected to rise by 1.2 million tons in order to ensure electricity security, bringing the total coal volume needed for electricity production to 18.75 million tons in the second half of the year.

Vietnam National Coal – Mineral Industries Holding Corporation Limited (Vinacomin), a State-run conglomerate specializing in coal and mineral mining, said that it is exploring ways to meet the coal demand of thermal power plants.

Over the next two months, Vinacomin plans to supply Vietnam Electricity Group’s (EVN) coal-fired power plants with an additional 10,000 tons of coal per month beyond the contracted amount.

The supply of coal to Thai Binh 2 thermal power plant is expected to reach 300,000 tons, doubling the prescribed amount.

Coal supply is anticipated to increase by 500,000 tons in July, resulting in a total coal volume of 18.75 million tons needed for electricity production in the second half of the year. The majority of the coal will be sold to EVN.

During a recent meeting with coal suppliers, EVN requested Vinacomin and Dong Bac Corp to provide an extra one million tons of coal to ensure sufficient energy supply in June and July. This request was prompted by the record-low water levels at hydropower plants in the north, which necessitates the full-capacity operation of thermal power plants.

In the first half of the year, thermal power plants consumed 21 million tons of coal, marking a 15% increase compared to the same period in 2021 and reaching 54.5% of the contract volume. It is estimated that they will burn 39.7 million tons of coal this year, reflecting a 15% year-on-year increase.

The Ministry of Industry and Trade has warned that northern provinces may face a daily shortage of between 30 and 50 million kWh, resulting in blackouts for most of the day in some parts of the region.

Steel prices in downward spiral

Construction steel prices in Vietnam have continued to fall as demand has remained weak.

Hoa Phat Group, which holds a 40% share of the nation’s construction steel market, now quotes rebar D10 CB300 at VND14.69 million per ton and rolled steel CB240 at VND14.49 million per ton, both down by VND200,000 and VND210,000, respectively.

Other local steel manufacturers, including Viet Y, Viet Duc, Thep Mien Nam, Viet Nhat, Thep Thai Nguyen and TQIS, have also reduced the prices of these two common construction steel products by the same amount.

Construction steel has dropped by VND1.5 million per ton since April. Weak domestic demand has led manufacturers to lower prices in order to enhance their competitiveness, according to the Vietnam Steel Association.

The steel price decline has helped fuel production and consumption. Data from the association showed that Vietnam produced over 812,000 tons of construction steel in May, a 14% increase compared to April, and steel sales reached 927,000 tons, up a significant 26% month-on-month.

May was the second consecutive month in which steel sales surpassed production. The gap between steel consumption and production increased nearly fivefold compared to the previous month, reaching over 115,000 tons, indicating a recovery in market demand.

Hoa Phat also reported an improvement in sales, with 530,000 tons of steel sold in May, a 16% increase versus April. Construction steel accounted for 284,000 tons of the total, a 33% month-on-month rise.

However, securities broker VNDirect predicted that steel sales may remain flat throughout the year. It estimated a decline of 9.2% in total construction steel sales and 7% in galvanized steel sales compared to the previous year, with estimated volumes of 9.5 million tons and 3.9 million tons, respectively.

Gia Nghia-Chon Thanh Expressway to be developed under PPP

Gia Nghia-Chon Thanh Expressway, a section of the North-South Expressway project in western Vietnam, will be constructed under the public-private partnership (PPP) format.

The feasibility study for the expressway is currently under review by the authorities in Binh Phuoc Province, according to a report from the Ministry of Transport.

Previously, the southern province selected the Vingroup-Techcombank consortium as the investor of the project and proposed developing the expressway through the public-private partnership (PPP).

The project is estimated to cost nearly VND26 trillion, with VND16.6 trillion going to road construction and the remainder to land clearance.

The period for recouping capital is 21 years and four months.

The expressway between Gia Nghia District in Dak Nong Province and Chon Thanh District in Binh Phuoc Province will also be connected to the planned HCMC-Thu Dau Mot-Chon Thanh Expressway.

The four-lane expressway will have a total length of 129 kilometers, with 101 kilometers in Binh Phuoc and 28 kilometers in Dak Nong.

Once completed, the expressway will reduce travel time between Dak Nong, Binh Phuoc and HCMC, and improve connectivity from the province to the under-construction Long Thanh International Airport and the Cai Mep-Thi Vai Port in Ba Ria-Vung Tau.

The Western North-South Expressway is 1,300 kilometers long, starting in Phu Tho Province and ending in Kien Giang Province.

It is divided into 16 sections, passing through 23 provinces and cities: Tuyen Quang, Phu Tho, Hanoi, Hoa Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Danang, Quang Nam, Kon Tum, Gia Lai, Dak Lak, Dak Nong, Binh Phuoc, Binh Duong, Tay Ninh, Long An, Dong Thap, Can Tho, and Kien Giang.

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