Deputy PM ask for support policies to encourage using electric vehicles

Deputy Prime Minister Lê Minh Khái has asked the Ministry of Transport to study support policies to encourage and create favourable conditions for taxi companies to switch to using electric vehicles.

Electric vehicles reduce carbon emissions and protect the environment, but traditional taxi firms are still hesitant to convert to electric, or to hybrids, to replace petrol and diesel vehicles, over worries about the shortage in the charging infrastructure.

Vinasun last week introduced the first hybrid taxi services in Việt Nam and signed a strategic deal with Toyota, with a view of investing into 2,000 hybrid cars in 2025.

Hybrid vehicles can help reduce fuel costs by 50 per cent compared to petrol-powered cars, Vinasun Deputy Director General Trần Anh Minh said.

It is estimated that it costs around VNĐ800 for an electric vehicle to run one kilometre while the fuel consumption of hybrid vehicles is VNĐ1,100-1,200 per km.

Taxi firm Mai Linh has a deal with Toyota to bring in a total of 9,999 hybrid cars over the next three years. The company said that electric vehicles have not really been suitable and optimal in Việt Nam, because of infrastructure inadequacy, as well as risks related to battery dumping.

According to Nguyễn Công Hùng, chairman of the Hà Nội Taxi Association, electric vehicles can run around 200-300km after each charging and this is a limitation when comparing electric vehicles with petrol cars or hybrids.

Hùng said that with around 150,000 electric vehicle charging points across the country, the charging infrastructure still fails to meet the demand of electric vehicle owners and more than 5,600 taxies of Xanh SM. In addition, it takes up to six hours to fully charge a battery at the charging station.

There are also currently no detailed regulations for transport service companies about the use of electric vehicles, such as how to ensure safe charging or how to handle battery waste, he said.

Competition in the taxi industry is growing ever harder, especially against the ride-hailing services, Nguyễn Thị Ngọc Trang, director of transport services cooperative Sen Việt in HCM City said.

In that context, many cooperatives have not had or been able to find resources to invest in electric vehicles.

Phùng Đăng Hải, chairman of HCM City’s Cooperative Alliance, cooperatives need support from the Government to replace fuel-powered vehicles by electric vehicles.

Countries around the world such as India, China and Europe have been successfully encouraged conversion to electric cars thanks to the Government’s strong support policies.

If the Government have detailed support policies, taxi companies will have grounds for calculations to decide their investment in electric vehicles, Phạm Xuân Mai, former head of Transport Engineering Faculty under HCM City University of Technology, said. 

Banks limits foreign room, waiting for strategic buyers

Commercial banks have been holding back on increasing their foreign ownership ratio, or foreign room, to wait for suitable strategic buyers in the future, according to industry leaders and insiders.

Chairman of Techcombank, one of Việt Nam's largest commercial joint stocj banks, said the bank's current foreign room is 22 per cent, allowing it to sell as much as 10 per cent to potential strategic shareholders. The bank has also been considering issuing additional shares to strategic shareholders, which typically results in a positive move in terms of stock prices.

Techcombank said it has been on the lookout for deals such as last year's VPBank's sale to Japanese Sumitomo Mitsui Banking Corporation (SMBC), as market conditions have been improving. VPBank has just completed a private placement of 15 per cent with the Japanese bank. The transaction was valued at VNĐ35.9 trillion, or US$1.5 billion.

Việt Nam's banking sector has seen significant inflows of foreign capital worth billions of dollars, opening many doors to capital, technology and management streamlining.

HDBank recently announced its intention to maintain its current foreign room at 17.5 per cent, hoping to find strategic shareholders.

According to a letter published by HDBank to ensure compliance with regulations and meeting the investment needs of foreign shareholders, the bank proposed to its shareholders at the AGM they should adjust the foreign ownership ratio to 17.5 per cent, down from the current 20 per cent.

HDBank remains one of the few major banks yet to choose a foreign strategic shareholder. The bank has shown promising and steady growth in the last ten years, especially in digital banking, consumer finance, insurance, investment banking, securities and rural banking.

Hoàng Thanh Tùng, director of investor relations at HDBank, said the bank has been preparing strategic partnerships by reserving 10 per cent of its foreign room. Sales to strategic investors, however, should only take place once market conditions improve, he said, adding that HDBank has received interest from several foreign partners from South Korea, Europe and the US.

SHB Chairman Đỗ Quang Hiển told a shareholder meeting that the bank is to complete the offering of shares to foreign investors in 2024. Last year, its shareholders approved the continuation of capital increase through the issuance of shares to foreign investors and strategic foreign investors.

Reuters has reported that SHB was in negotiations to sell 20 per cent of its capital after foreign investors from South Korea and Japan approached the bank, which was valued at $2-2.2 billion. A source close to the talks said the deal was expected to go through this year once the State Bank of Vietnam gives the green light.

Similarly, SeABank approved a plan to privately issue a maximum of 94.6 million shares, equivalent to 4.6366 per cent of its total shares to Norfund, the Norwegian Investment Fund for Developing Countries, which could add VNĐ1.2-3.5 trillion to the bank's coffers.

Nguyễn Quốc Hùng, secretary-general of the Vietnam Banks Association, said taking in strategic foreign investors has often produced positive changes in finance, technology, management and operations at credit institutions, bringing them closer to international practices and standards.

Việt Nam Cycle Expo 2024 to take place in HCM City in September

The Việt Nam Cycle Expo – a major international event in Việt Nam for bicycles, electric bikes, electric motorcycles, motorcycles and accessories will return in September in HCM City.

The event, co-organised by the VINEXAD company under the Ministry of Industry and Trade (MoIT) and the Việt Nam Automobile, Motorcycle and Bicycle Association (VAMOBA), is expected to attract 180 exhibitors from 12 countries and territories across the worlds.

With up to 300 display booths in an area of 2,500sq.m, the exhibitors will introduce latest products and services relating to bikes, electric bikes, electric vehicles, components and accessories. Besides world famous brandings, the expo also welcomes newly established start-ups.

Visitors to the expo can take part in interactive activities, an adventure cycle show and a bike fashion show.

The expo will take place at the same time and venue with other major exhibitions including the Việt Nam Sport Show 2024 and Zhejiang Expo Fair. The series of events featuring more than 500 display booths are expected to attract over 20,000 visitors.

A report by Mordor Intelligence shows that the world bicycle market is estimated to reach US$56.16 billion this year and $69 billion in 2029.

In Việt Nam, the trend of using bicycles for exercise and transportation has been increasing sharply recently.

Data from Statista, a German market research company, shows that revenue from the bicycle segment in Việt Nam was estimated at $295.8 million last year, and is expected to reach $371.8 million with 2.49 million bicycles sold in 2027.

Meanwhile, according to the MoIT, electric motorbike sales in Việt Nam have increased by about 30-35 per cent, making Việt Nam the largest electric motorbike market in Southeast Asia and the second largest in the world, just behind China.

Environmental issues and fluctuations in petrol prices are also factors that affect consumer demand for electric vehicles, which are expected to increase sharply in the near future. 

Apartment rental prices on the rise in country’s largest city

Apartment rents in HCM City have surged by up to 28 per cent since last year, especially in the mid-priced and high-end segments.

Phạm Viết Túc, a house broker in District 4, told Việt Nam News that rentals in high-end apartment projects in prime locations have risen by up to 28 per cent compared to last year.

According to a report by JLL, rental prices for apartments in the city increased by 1.6 per cent quarterly and 5.9 per cent annually in the first three months, averaging US$10 per square metre per month, particularly in new high-quality developments.

The rental growth has been influenced by the stronger rent prices recorded in new high-quality offerings in the city, according to the report.

Roddy Allan, chief research officer of JLL in Asia-Pacific, said that HCM City, along with Jakarta, Bangkok, and Manila, has seen a hike in rental apartment prices among developing market groups.

“Việt Nam’s largest city, HCM City, was also one of the region’s best performing markets from a residential perspective,” he said.

Limited supply has resulted in consistent price hikes in the rental segment, he said.

Only 500 apartments were put up for sale in HCM City in the first quarter, the lowest number in the past 15 years and a 17 per cent decrease from the same period last year.

The demand for high-end living standards remains strong, especially among those with high incomes willing to pay VNĐ20-30 million per month to rent a comfortable apartment rather than buy one, said a real estate broker.

Social housing development must be one of localities' socio-economic development targets: Directive

To hit the specified target of one million social housing apartments by 2030, social housing needs will have to be incorporated into local five-year and annual socio-economic development plans.

That is a directive from the Party Central Committee Secretariat on strengthening the Party's leadership and direction on social housing development in the new situation, Deputy Minister of Construction Bùi Xuân Dũng said at the Ministry of Construction's press conference on June 14.

This directive (34/CT-TW dated May 24, 2024) is one of many efforts over the entire political system, from central to local levels, to complete the project on investment and construction of at least one million social housing apartments for low-income people and industrial park workers in the 2021-2030 period, Dũng said.

Hoàng Hải, director of the Department of Housing and Real Estate Market Management said that in the past authorities at all levels worked together to remove difficulties and obstacles in the development and investment in social housing construction.

There are currently 503 social housing projects, supplying 418,200 apartments, an increase of 6,950 units compared to March.

Among them, 75 projects have already been completed with a supply of 39,884 units and 128 projects have started construction with a scale of 115,379 units, while a further 300 projects have been approved for investment, they will supply 262,937 units.

However, Hải said the implementation of this social housing development plan still has some difficulties in terms of the land allocation fund, capital sources and investment procedures for social housing projects.

Therefore, the Ministry of Construction and other ministries, need to continue completing and submitting to the Government decrees and legal documents relating to development of social housing projects such as amended Laws on Housing, Land, and Credit Institutions.

In July, the Ministry of Construction will coordinate with the Central Economic Committee to organise a national conference to implement the Directive No 34-CT/TW to promote implementation of the social housing development project, Hải said. 

Boosting knowledge for Vietnamese SMEs through collaboration

An online training project to boost Vietnamese small and medium enterprises has recently been initiated by the Ministry of Planning and Investment (MPI) and the Việt Nam Association of Small and Medium Enterprises (SMEs).

The project, themed 'Elevating Knowledge for Vietnamese Small and Medium Enterprises', is active on www.smelearning.vn.

It aims to enhance the training and development of entrepreneurs and businesses across the country, in line with the Government's target of creating a thousand courses by 2025 and five times that number by 2035.

Around 1.5 million businesses nationwide already have access to quality, free courses tailored to their development plans. Over 6,000 SME workers, including owners, managers and employees, have benefited from these training programmes.

The project involves partnering organisations and sponsors who contribute through content sharing, digital services and new technology platforms.

It encourages the participation of ministries, local business associations and experts to create an effective learning platform for SMEs. The project will provide a conducive learning environment, foster a learning culture and enhance sustainable development capabilities for Vietnamese SMEs.

To ensure the effective implementation of the project, Deputy Minister of Planning and Investment Trần Duy Đông suggests that ministries, local authorities, associations and supportive organisations, widely publicise how to register for the project's programmes and courses.

Localities are encouraged to actively participate and collaborate with associations to promote continuous learning and enhance business management capabilities.

Nguyễn Văn Thân, Chairman of the Việt Nam Small and Medium Enterprise Association, hailed the project as a significant step for businesses, enabling them to engage in government administrative reforms, creating a digital environment to address their individual needs. 

Vietnam - ideal destination for Australian tourists

A delegation led by Chairman of the Vietnam National Authority of Tourism (VNAT) Nguyen Trung Khanh on June 18 attended a travel symposium and many side activities in Australia's Melbourne city.

At the event, Minister Counsellor of the Vietnamese Embassy in Australia Nghiem Xuan Hoa said the bilateral relations have witnessed strong development in recent years, notably the establishment of the strategic comprehensive partnership in March.

In their joint statement, their leaders agreed to seek opportunities to spur tourism development, he continued.

Hoa pointed to advantages to promote tourism cooperation between the two countries, including the growing bilateral relations, Australian tourists' great interest in Vietnam and vice versa, and joint efforts in forging tourism cooperation.

For his part, Khanh said Vietnam is striving to turn tourism into a key economic sector, adding over the past two years, its tourism industry is bouncing back after the COVID-19 pandemic with remarkable achievements. The country's tourism industry and destinations have been honoured with prestigious international awards.

Particularly, in the first five months of 2024, it welcomed 213,000 Australian visitors, an increase of 35% over the same period last year, making Australia the seventh largest source of tourists to Vietnam.

Australian Senator Raff Ciccone said Vietnam is a key market in Australia's diversification of tourism markets.

To better understand the Vietnamese market and serve tourists from the Southeast Asian nation, Raff said the Australian Trade and Investment Commission (Austrade) is coordinating with the Australian Tourism Export Council (ATEC) to organise a programme themed "Vietnam Host" in the next few months, and include Vietnam into the list of Australia's important tourism markets, together with China, India, Japan, the Republic of Korea and Indonesia.

He called the Australia – Vietnam Travel Symposium a good opportunity for two sides to learn about each other's market and promote the collaboration.

After the symposium, tourism businesses and agencies of Vietnam and Australia joined a business meeting and two relevant discussions./.

Can Tho exports first green-peel elephant mango to Australia, US

The Mekong Delta city of Can Tho on June 18 exported two tonnes of green-peel elephant mango (Mangifera Indica) to Australia and the US.

This was the first batch of mango export under a contract signed between Loc Hung agricultural cooperative in Co Do district and Vina T&T Company.

Le Chi Phuong, Vice Chairman of the People's Committee of Co Do district, acknowledged that the exports have helped motivate mango farmers to actively learn scientific and technical knowledge, and new regulations of domestic and foreign markets in order to improve product quality and design to better meet requirements of market, contributing to increasing the value of the locality’s mango while helping increase income and stabilise people's lives.

In the coming time, the district hopes it can access to support policies and programmes for farmers in linkage process, new regulations, techniques, good programmes from central agencies and Can Tho city to help local farmers develop and export more local agricultural products.

Can Tho city currently has 3,376 hectares under mangoes, with output estimated at 17,500 tonnes.

According to data from the Department of Crop Production, Vietnam had about 115,000 hectares of mango with an output of around 1 million tonnes a year. Currently, Vietnam is the 13th largest mango producer in the world. The advantage of Vietnamese mango is that it is harvested all year round, with the peak from March to July./.

Germany supports Vietnam’s garment industry in green transformation

Five pilot projects on green technology for Vietnamese textile and garment exporters went on show at the ‘For a Sustainable Garment and Textile Industry in Vietnam’ show held in Hanoi on June 17.

The event is part of the German government-supported ‘Green Tech Landing Pad’ initiative, jointly implemented by GIZ and the National Innovation Center (NIC) under the Ministry of Planning and Investment.

The new technologies being piloted include IoTeamVN's energy management solution, Enedig Kft's cloud-based labour cost calculation solution timeSSD®, Hoang Ha's waste heat recovery solution, ECOSOI's pineapple fabrics and fibres, and BlockTexx's polyester and cellulose recycling solution.

These innovations, evaluated favourably by domestic partners such as VINATEX, Faslink, Thinh Phuc, and Kyungbang, demonstrate significant potential for application and scale-ups.

The pilot projects have demonstrated the industry’s potential in transitioning to sustainable production and meeting European market standards.

The textile and garment sector makes an average contribution of 30-50 billion USD to Vietnam’s GDP and is poised for significant growth, especially with free trade agreements like the one with the EU (EVFTA).

Nonetheless, textile and garment enterprises face technical challenges in their transition to green and sustainable practices to comply with EU standards and seize growth opportunities.

The Green Tech Landing Pad represents a strategic response to those challenges. It identifies, connects, and facilitates the adoption of green technologies among Vietnamese textile and garment enterprises to ensure compliance with European sustainability standards.

Vu Quoc Huy, Director of the National Innovation Centre, said: “The Green Tech Landing Pad initiative plays a crucial role in the context of the environmental and sustainability challenges that Vietnam’s textile and garment industry is facing.

"Through this initiative, we equip textile and garment enterprises with cutting-edge and eco-friendly technologies, solutions, and production models. This not only enhances competitiveness but also drives Vietnam's garment and textile industry’s trajectory towards sustainability.”

Tarek Hassan, head of the Digital Transformation Centre Vietnam, a project funded by GIZ noted that Vietnam's textile and garment industry would face many difficulties and challenges in green transformation such as high upfront costs, Return on Investment (ROI) uncertainty, lack of a skilled workforce, infrastructure limitations, integration of new technologies and environmental issues.

Dennis Quennet, Director of Sustainable Economic Development at GIZ in Vietnam, said: "German-Vietnamese cooperation goes beyond today. On behalf of the German government, GIZ will continue to support the digital and green transformation of Vietnam’s economy by working with the public and private sectors in different industries. Together, we will enhance the roles of start-ups and SMEs in Vietnam’s economy to improve competitiveness and create innovation, opportunities, and jobs.”

The Green Tech Landing Pad initiative has successfully connected nine new technological solutions with seven textile and garment export companies to address common technical issues, including sludge treatment, heat recovery, fabric recycling, energy optimisation, labour management, and new sustainable materials./.

Binh Duong records impressive economic growth in H1

Binh Duong province posts gross regional domestic product (GRDP) growth of 6.19% in the first half of 2024, much higher than the figure of 3.55% this southern industrial hub recorded in the same period last year.

Upturn has been seen in many sectors, with industry - construction expanding 5.81%, service 7.36% and agro-forestry-fisheries 3.29%, local authorities reported.

Particularly, the province has seen remarkable recovery in exports with revenue estimated at nearly 16.3 billion USD during the first half, a year-on-year rise of 10.3%.

In terms of investment, although the province has enjoyed a 12.1% increase in domestic investment to over 27 trillion VND (1.06 billion USD), the attracted foreign direct investment is only equal to 64.4% of that in the same period last year due to common difficulties in the global investment environment.

So far, Binh Duong has fulfilled only 24.7% of this year's public investment disbursement plan assigned by the Prime Minister and 17.1% of the target set by the provincial People’s Council, mostly due to mechanism, policy and administrative procedure bottlenecks.

Ngo Van Mit, Director of the provincial Statistics Office, said that in order to achieve the 8% growth target for 2024, Binh Duong needs to achieve economic expansion of 8.5% in the third quarter and 10.7% in the fourth quarter.

Chairman of the Binh Duong People’s Committee Vo Van Minh said that to reach the growth target for this year and maintain its role as one of the key economic hubs of the country, the province will work to come up with specific and effective solutions, from enhancing the investment quality, improving the business environment to promoting sustainable development in each sector.

Alongside, the province will continue to speed up the disbursement of public investment capital and increase its competitiveness, he added./.

Hanoi to host int’l exhibition on electronic components, smart manufacturing

An international exhibition on electronic components and smart manufacturing - Global Electronic Intelligent Manufacturing Show - Vietnam (GEIMS Vietnam) will be held in Hanoi from November 28-30.

Jointly organised by Global Sources, a leading business-to-business media company and the Vietnam Electronic Industries Association (VEIA), the event aims to showcase the most advanced technology and promote trade in the electronics manufacturing industry.

Covering 10,000 sq.m, the exhibition will gather 200 exhibitors from countries and territories across the world, including Vietnam, China, the Republic of Korea, Taiwan (China) Japan, the US, Southeast Asia and Europe.

A variety of essential products and services, including electronic components, assembly and testing equipment, precision mechanics and new energy technologies will be displayed at the event.

According to Wilson Wu, Vice President of Global Sources, the exhibition is an important turning point for his company in promoting the development of the electronics manufacturing industry in Vietnam by trade connection activities and supporting Vietnamese businesses in terms of supply, especially in the field of electronics manufacturing.

The exhibition focuses on providing comprehensive solutions for the electronics manufacturing industry to strengthen Vietnam's position, aiming to become the world's electronics hub, he said.

Do Thi Thuy Huong, member of the VEIA’s Executive Board, said that the Vietnamese electronics industry still faces many challenges, but there are still many breakthrough opportunities for businesses that know how to grasp them and utilise internal strengths to improve competitiveness on the global market.

Under a memorandum of understanding signed on June 18, Global Sources and VEIA also promote close cooperation, making the most of the expertise, resources and connection networks of both sides to build a comprehensive platform, helping local businesses access advanced technologies, high-quality components and new business opportunities./.

Fisheries sector sets sights on US$10 billion export target 
 
With signs of recovery ahead in both demand and import prices in major markets, the seafood industry aims to achieve an export turnover of US$10 billion this year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). 

During the past five months of the year, Vietnam's aquatic exports edged up 6% to reach nearly US$3.6 billion against the same period last year. The strongest export growth was recorded in crab with 84%, followed by tuna with 22%, and shellfish with 13%.

Most notably, seafood exports to the United States enjoyed robust growth with turnover soaring by 7% to US$605 million.

Aquatic exports to China, Japan, and the EU stood at the equivalent to the same period from last year, while exports to the Republic of Korea and the Middle East posted respective increases of 2% and 19% on-year.

Do Ngoc Tai, general director of Tai Kim Anh Seafood Processing Joint Stock Company, emphasised that China has surpassed the US to become the largest consumer of Vietnamese shrimp, accounting for 20% of the overall market shares.

Meanwhile, shrimp exports to several markets such as Canada, the UK, and Russia also bounced back with growth rates of 51%, 15%, and 332%, respectively.

Nguyen Thi Thu Sac, chairwoman of the VASEP, said seafood exports are predicted to reach US$4.4 billion in the first half of the year, up 6% with demand and export prices rebounding in the second half of the year.

Industry insiders pointed out that despite recording a number of positive signs, the seafood industry has encountered numerous difficulties, including competitive pressure on export prices, rising input costs, and a general shortage of raw materials.

Currently, many local businesses are concerned about anti-dumping lawsuits launched by the US, while the yellow card warning against illegal, unreported, and unregulated (IUU) imposed by the European Commission (EC) remains a burden for Vietnamese firms.

Moreover, ongoing tensions in the Red Sea have continued to make transportation costs escalate, and trade conflicts among major powers and large inventories in import markets set to remain a hindrance for the sector over the remaining months of the year.

According to Truong Dinh Hoe, general secretary of the VASEP, to achieve the export target of US$10 billion this year, local enterprises are required to adjust their plans to suit the market demand.

“It is hoped that Vietnam will be recognized as a market economy in the near future, while the EC’s IUU yellow card will be lifted moving forward, which will expert a positive impact to help bolster aquatic exports during the year-end,” Hoe noted.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien proposed that the VASEP needs to regularly evaluate market developments, devise solutions, and augment co-operation with businesses as a way of further boosting market expansion.

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