There will be no electricity shortages this year, even as electricity consumption reaches record-high figures in Vietnam, the Ministry of Industry and Trade (MoIT) has promised.

According to the MoIT, as of June 18, the Southeast Asian country's power consumption has reached 141.8 billion kWh, equivalent to 45.6% of the annual estimate.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said there has been significant pressure on the country's power infrastructure this year as the economy's recovery gains momentum.

Ensuring sufficient power supply has been among the top priorities of the ministries and the Prime Minister.

"The ministry has sent task forces to inspect and monitor the availability of resources including water, coal and gas. A rapid response team has also been formed under the Electricity Regulatory Authority in preparation for possible issues with the system," said the deputy minister.

Nguyen The Huu, the authority's deputy director, said despite record-breaking consumption levels this year, the power supply has remained stable and smooth. He said there should not be power shortages in 2024.

However, the country's power network may experience peak demand during the hot summer months of June and July. Huu said residents and businesses should also help conserve electricity, relieving pressure on the country's power networks.

"In the long term, to ensure electricity supply, the Department of Electricity and Renewable Energy and the Electricity Regulatory Authority, both under the MoIT's management, have established a direct power purchase agreement (DPPA) mechanism," Huu said.

Meanwhile, the ministry has also been working on building the legal frameworks required to regulate the production and transmission of alternative power sources, including waste and biomass.
Bui Quoc Hung, deputy director of the electricity and renewable energy department, said demand has experienced rapid growth since last year and recently reported a 12% increase year-on-year, exceeding previous estimations of 8-9%.

Since the approval of Power Plan VIII, the MoIT has started the implementation of several projects to bolster and expand the national grid.

The construction of the 500 kV Line Circuit 3 has been expedited to cover the north and central regions, as well as various other projects.

The ministry has also started negotiations with power suppliers from Laos./.

Algeria, Vietnam ramp up trade-investment cooperation

Vietnamese trade counselor in Algeria Hoang Duc Nhuan on June 21 made a business trip to Boumerdes province, and coordinated with the local Chamber of Commerce and Industry to organize a seminar to introduce the potential for economic and trade cooperation between the two countries.

In his address, Trade Counselor Hoang Duc Nhuan introduced Vietnam's economic and foreign trade situation and the trade and investment cooperation between Vietnam and Algeria. He also provided information and invited Algerian businesses to attend a number of trade events in 2024 such as Vietnam Food Expo and Vietnam Expo in Ho Chi Minh City, while giving a list of reputable Vietnamese export businesses.

According to statistics from Vietnam Customs, last year’s bilateral trade turnover reached roughly US$ 250 million, an increase of 68% compared to 2022.

Chairman of the Chamber of Commerce and Industry of Boumerdes province, Charef Rabah, said Boumerdes is located at the gateway to the capital, about 45 km east of Algiers, and is an important commercial and industrial hub of Algeria.

With a population of about 900,000 people, the province has industrial parks and more than 14,820 firms, of which 14,797 are private enterprises and 24 state-owned enterprises.

There are currently more than 2,000 enterprises operating in the fields of petrochemicals, metallurgy, mechanics, agricultural product processing, and garments and textiles.

Boumerdes also boasts 100 km of coastline, two fishing ports and great potential for agricultural and tourism development.

Famous local products are honey, olive oil and cheese. In the province, there are currently a number of companies cooperating with Vietnamese businesses in the fields of importing coffee and exporting chicken feet.

In recent years, the province has also benefited from an ambitious development program, including 653 projects in health care, public works, sports, education, housing, agriculture, and tourism, with a total capital of about US$1.3 billion. 

On this occasion, the representative of the provincial Department of Investment also introduced notable points in Algeria's new Investment Law issued in 2022, such as a commitment to improving the investment environment and ensuring suitable conditions for diversification of the national economy within the framework of a common and stable vision, and taking into account the principles of investment freedom, transparency and equality as prescribed by the 2020 Constitution.

Local government representatives also called on Vietnamese businesses to invest and enter into joint ventures in the above fields and committed to creating favorable conditions for foreign investors with many preferential policies in terms of taxes and industrial land lease.

At the seminar, businesses in Boumerdes expressed their desire to directly import raw coffee, parboiled rice, soybean seeds, corn for animal feed production from Vietnam and export olive oil, dried figs, margarine, sauces, cosmetics. They aspired to look for joint venture partners and associates in the fields of electronic goods assembly, aquaculture, animal feed production, and fish fingerlings and cashew processing.

On this occasion, the Vietnam Trade Office in Algeria also launched a display of samples of products such as coffee, pepper, cashew nuts, cinnamon, anise, coconut rice from domestic businesses.

Local automobile market will see a big influx of Chinese car brands

The Vietnamese car market is experiencing significant transformations with the entry of Chinese brands, according to motoring experts.

Brands like Omoda, Jaecoo, BYD, Haval and Lynk & Co. are aggressively pushing into the market, aiming to capitalise on Vietnam's growing demand for cars as the country is undergoing an automobilisation phase with rising average incomes.

Chinese car manufacturers are rapidly establishing showrooms and dealerships across Vietnam. For example, BYD plans to open 50 showrooms by mid-2024 and Haval aims to have 25-30 dealerships this year. This aggressive expansion contrasts with the cautious approach of many traditional international brands.

Chinese automakers are investing heavily in local production facilities. Omoda and Jaecoo will soon start operating a factory with an annual capacity of 200,000 cars in Thai Binh Province. BYD is also considering building an automobile factory in Vietnam.

The Chinese brands are offering a range of vehicles including petrol models, plug-in hybrids and pure electric vehicles (BEVs). This diverse product lineup is aimed at catering to various segments of the Vietnamese market.

Chinese brands are particularly targeting young Vietnamese consumers who are quick to adopt new technologies, including electric vehicles (EVs). BYD, for example, aims to leverage its expertise in EVs to penetrate the market further.

While these brands have ambitious goals to capture a significant market share in Vietnam (with Omoda and Jaecoo aiming to have ten per cent of the market by 2028), hitting those targets in a competitive market will require time and sustained effort.

The reception of Chinese cars among Vietnamese consumers will be critical. Brands like Lynk & Co are focusing not just on selling cars, but also on creating community.

Liu Xueliang, the CEO of BYD, emphasises the strategic importance of Vietnam as a key market for their expansion. He highlights several factors that make Vietnam attractive, particularly the fact that the country has a large population, over a hundred million, with a significant proportion being young people. This demographic is crucial because young consumers are typically early adopters of new technologies, including electric vehicles (EVs).

BYD aims to leverage its existing technological capabilities to cater to these market dynamics. While acknowledging the presence of price competition in the market. Liu emphasises that BYD's focus lies in maintaining leadership through its core technologies in electric vehicles.

Omoda and Jaecoo Auto Vietnam, are instead focusing on achieving ambitious market share targets by strategically importing a variety of vehicle types initially and transitioning to local assembly. Their approach includes adhering to global 3S standards in showrooms to provide a premium customer experience, emphasising comfort and luxury.

Nguyen Dang Quang, overseeing sales and dealer development for Omoda and Jaecoo, says the company has a phased plan, capturing three per cent market share by 2025, rising to 6% with locally assembled vehicles by 2027 and achieving 10% market share and a top five position post-2028.

This strategy underscores their intent to grow progressively and solidify their presence in Vietnam's competitive auto sector.

On the other hand, Lynk & Co is adopting a community-oriented approach with its Lynk & Co Center and Clubs model. This innovative concept goes beyond traditional showrooms by integrating sales, after-sales services and community events. By fostering a social environment where customers can engage with the brand and each other, Lynk & Co aims to appeal directly to young consumers who value connectivity and unique experiences.

Customers often chose to buy a second car from China, suggesting a growing familiarity and acceptance of Chinese vehicles among Vietnamese consumers. This trend indicates a favourable perception that could facilitate further market penetration and growth for Chinese brands in Vietnam. 

Credit growth bright spot for banking

As of June 14, credit growth has reached 3.79% compared to the end of last year, marking a bright spot for the banking sector, according to the central bank.

The State Bank of Vietnam (SBV) said at a sector-wide online conference on promoting bank credit growth for the year on June 19 that challenges still abound in promoting credit growth in the banking industry heading into the third quarter.

The bank has recently issued a document directing a number of solutions on credit and interest rates, requiring implementation of solutions and striving to achieve a credit growth rate of 5-65 by the end of the second quarter this year.

Statistics show that in the first quarter of this year, seven out of 27 banks recorded negative credit growth, including some large banks.

But there are still many banks with a credit growth rate that is much higher than the industry average, such as LPBank, Techcombank, HDBank and MSB.

These banks are also showing good profits compared to the industry average.

Each bank has different strategies and competitive advantages to exploit market opportunities.

LPBank recorded the strongest credit increase of over 12%, while Techcombank grew by more than 7% and HDBank by 6.2%. MSB's credit growth increased by more than 5.6%.

For the banking industry, the rate of growth or the scale of credit expansion alone does not tell the whole story. Growth must be efficient, sustainable and stable to ensure prosperity for the bank not only in the present but also in the future.

A HDBank representative stated that early risk management policies have been implemented, helping the bank to mitigate adverse external impacts and ensure the maintenance of a stable and flexible operational framework.

Continuous improvements in operational safety ratios also provide shareholders and investors with peace of mind amid numerous challenges.

Meanwhile, promoting digitalisation and optimising processes and operating costs are also key to improving the bank's operational efficiency over the past few years.

At HDBank, high growth targets and industry-leading ROE come with a strong optimisation of the Cost-to-Income Ratio (CIR), from 39.3% in 2022 to only 31.7% in the first quarter of this year.

At other banks like Techcombank, VPBank or especially at large network-operating banks like VietinBank, the CIR has also shown significant improvements in recent years, approaching around 30%.

This is considered optimal for banks effectively making a digital transformation in the region.

Besides strictly controlling risks and enhancing operational safety, strong digitalisation and optimisation of performance and operational efficiency are also necessary factors for sustainable growth goals among Vietnamese banks.

According to the central bank’s representatives at the conference, with drastic actions by the Government, the Prime Minister and ministries in improving the business environment and coordinating to solve problems for businesses and people, credit growth is expected to increase in the last months of the year.

This forecast shows that the bright spots in the Vietnamese banking industry in enhancing efficiency and maintaining sustainable growth will likely continue.

Petrol prices increase slightly in latest adjustment

The retail sale prices of petrol and other fuels were adjusted up from 3pm on June 20 by the Ministry of Industry and Trade and the Ministry of Finance.

Accordingly, the price of E5RON92 bio-fuel rose by 198 VND to 21,508 VND (0.84 USD) per litre, while that of RON95-III went up by 231 VND to 22,466 VND per litre.

Meanwhile, diesel 0.05S, kerosene, and mazut oil 180CST 3.5S are now sold at 20,360 VND a litre, 20,356 VND a litr,e and 17,233 VND a kilogram, up 720 VND, 497 VND, and 334 VND, respectively.

The two ministries decided not to use the petrol price stabilisation fund./.

HCM City eyes sustainable marine economy development

The Ho Chi Minh City People’s Committee has issued a plan to implement the strategy for the sustainable exploitation and use of natural resources and protection of the marine and island environment to 2030 with a vision to 2050.

The plan outlines that the city will give high priority to developing tourism, marine transport and services, fisheries, energy, coastal urban areas, and other marine sectors as well as improve community livelihoods.

Can Gio, the only coastal district in the city, will be developed into a a high-quality leisure and eco-tourism hub by 2030.

The rate of solid waste collected and treated in the district will reach 100% and the rate of urban wastewater treated to meet technical standards will stand at 40% by 2030.

Under the plan, marine and coastal ecosystems will be effectively managed and protected. The city’s aquaculture growth rate will be maintained at 2.2 – 2.5% a year.

The plan also focuses on planting forests along coastlines, preserving biodiversity, and improving the quality of the environment.

Marine resources, and seas and islands will be effectively exploited and utilised by 2050, driving the city’s green growth, biodiversity conservation, marine environment protection, and a society in harmony with nature./.

Ministry proposes removing FiT for more competitive renewable energy prices

It’s time for Vietnam to develop more competitive pricing for the renewable energy market, as the feed-in-tariff (FiT) mechanism is no longer appropriate, according to the Ministry of Industry and Trade.

FiT was introduced to support early development of renewable energy sources by providing a guaranteed, above-market price for producers to sell energy back to the grid.

The ministry said that FiT should be applied within a certain period of time in order to encourage investments in renewable energy.

Now, Vietnam has seen a significant rise in the number of renewable energy projects. It’s time to develop a more competitive pricing mechanism to increase efficiency in the system and ensure competition as well as a stable and sustainable energy supply.

A renewable energy price framework that is flexible and appropriate to developments in each period should be planned, according to the ministry.

In Vietnam, FiT prices are valid for 20 years. For solar projects that were put into operation before December 21, 2020, the FiT price is 7.09 cents per kWh for ground-mounted solar power projects, 7.69 cents for floating solar power and 8.38 cents for rooftop solar.

For wind power projects that started operations before November 1, 2011, the FiT price is 9.8 cents per kWh for offshore and 8.5 cents for onshore wind energy.

According to Vietnam Electricity, as of May 23, 81 out of 85 renewable energy projects with a total capacity of 4.597 MW had sent documents for electricity price negotiations.

Negotiations for power purchase agreements are completed for 63 projects with a total capacity of 3.429 MW.

Among them, 29 projects with a total capacity of 1,577 MW completed procedures to begin commercial operations and generate electricity to the grid with a total output of around 2.597 billion kWh as of May 23. /.

Banks estimate large extraordinary revenues from debt recovery

Some banks, including MSB, Sacombank, VIB and Saigonbank, are expecting extraordinary revenues worth up to trillions of Vietnamese đồng from debt recovery this year.

In a recent report, Vietcombank Securities Company (VCBS) said Vietnam Maritime Commercial Joint Stock Bank (MSB) this year will record extraordinary income growth from bad debt recovery and capital divestment of its financial company TNEX Finance.

MSB is currently in the process of completing the handling of debt restructuring and guarantees with its large borrowers Vinashin and Vinalines. The bank said it will also promote activities to clear bad debts out of the balance sheet by using the reserve fund to bring the bad debt ratio below 3 per cent.

According to VCBS, in the second quarter of this year, MSB collected two extraordinary revenues worth more than VNĐ800 billion from the debt recovery. The bank expects this year's extraordinary income from debt recovery will reach about VNĐ1.7 trillion.

MSB is also implementing a plan to sell TNEX Finance. Currently, the bank is working with the consulting firm McKinsey to build a strategy for developing a new digital credit model within the next 6-12 months. Three investors from South Korea, Japan and Taiwan (China) are interested in this financial company whose value is estimated at some VNĐ1.8-2 trillion.

On the sidelines of the 2024 Annual General Meeting of Shareholders, MSB General Director Nguyễn Hoàng Linh said MSB may record two extraordinary revenues from debt settlement in the second quarter this year.

As for the TNEX Finance, MSB still leaves an open plan in cases where investors want to cooperate, Linh said, adding that three investors from South Korea, Japan and Taiwan (China) are cooperating with the finance company.

As for Sacombank, at the bank’s 2024 AGM, its leaders said they successfully auctioned the debt secured by property rights at the Phong Phú Industrial Park project. At that time, Sacombank successfully recovered 20 per cent of the total auction value. It is due 40 per cent of the total value will be paid in 2024 and the remaining 40 per cent will be paid in 2025.

In a newly published report, KB Securities Company (KBSV) expects Sacombank will record an extraordinary income of VNĐ1.336 trillion in 2024 from the sale of debt related to the Phong Phú Industrial Park.

Regarding VIB, the bank in the first quarter this year posted an extraordinary profit of more than VNĐ226 billion from other business activities, five times higher than the same period in 2023. At the bank’s recent AGM, VIB Chairman of the Board of Directors Đặng Khắc Vỹ said this bank recovered VNĐ200 billion from risk handling in the first quarter of 2024.

With the warming of the real estate market and additional debt recovery solutions, the bank also expects an extraordinary income of VNĐ1-1.5 trillion from debt recovery this year.

Continuing the impressive performance in 2023, Saigonbank's net profit from other activities in the first quarter of 2024 also reached VNĐ28 billion, an increase of 2.15 times over the same period last year. According to Saigonbank's board of directors, in 2024, the bank will implement solutions to recover bad debts to increase income. 

Sixth Automechanika Ho Chi Minh City returns

The sixth edition of Automechanika Ho Chi Minh City, underway from June 20-22, is hosting an impressive line-up of global industry players.

Co-hosted by the Messe Frankfurt (HK) Co.,Ltd, the Chan Chao International Co., Ltd and the Yorkers Exhibition Service Vietnam Co., Ltd, the event draws over 500 exhibitors from 23 countries and territories, including Brazil, Canada, Germany, Georgia, Hong Kong (China), India, Indonesia, Japan, Malaysia, Peru, Singapore, the Republic of Korea, Spain, Taiwan (China), Thailand, Turkey, the United Arab Emirates, the UK, the US and Vietnam.

Other zones across the exhibition grounds include parts & components and automotive repair, maintenance & care, accessories & customizing. Leading brands comprise the likes of Autel, Carlas, FPT Automotive, Hengst, Koryo, Lucas, Millenium, Mulantan, Thinkcar and Zero Mileage.

Fiona Chiew, General Manager of Messe Frankfurt (HK) Ltd, said the show’s expansion of 44 % to a record-breaking space of over 22,600 sq.m reflects a growing confidence and heightened ambition within Vietnam’s thriving automotive market. Automechanika Ho Chi Minh City, the largest regional trade fair in the automotive aftermarket, will further consolidate its role as a comprehensive platform for business, education and entertainment.

Automechanika Ho Chi Minh City’s fringe events offer even more opportunities to discover the latest advancements, trends and updates about the industry, including the Automotive Mobility Solutions Conference, the Collision Repair Training Workshop and other sessions on Electrification and Digitalisation Business Networking Event, Automotive Logistics, Warehousing and Supply Chain Conference, and Automotive Manufacturing, Transformation and Automation Workshop.

Elsewhere, the returning Collision Repair Training Workshop will have experts from OTO-HUI and Magic Cube Auto-Aftermarket (a highly influential automotive training consultancy from China) sharing their insights on electric vehicle systems, repair and safety precautions./.

Ministry to consider possible tax on gold transactions

The Ministry of Finance is to start a process to study the effect of a tax on gold transactions, Deputy Minister of Finance Nguyen Duc Chi has said.

As gold prices surged to a historic high before settling down last week, the press, economists, as well as members of the public, have voiced their concerns over the lack of a gold tax for transactions of the precious metal. Many asked why when there are taxes on other assets such as real estate and securities, there are none for gold transactions.

Chi said in considering the profound impact a gold tax could produce on society as a whole, the ministry must conduct a thorough study before sending a proposal on the matter to the government.

Economists have long maintained before granting the right to import gold into the market, with the State Bank of Vietnam (SBV) being the only entity allowed to right now, taxing gold transactions is necessary to keep gold prices in control.

Prof. Nguyen Thi Mui, a member of the National Financial, Monetary Policy Advisory Council advised the central bank and the ministry to start building a tax policy for gold transactions.

She said a gold tax could significantly reduce demand for the precious metal among certain investor groups, especially those who speculate and hoard. A gold tax could also serve as the foundation for a fairer and more sustainable business environment, given that traders of real estate and securities are also subject to personal income tax.

Dang Ngoc Minh, Deputy Director-General of the General Department of Taxation, said gold trading is subject to the state's management policy, just like other economic activities.

In accordance with the Prime Minister's directives, measures have been taken to monitor the trading of the precious metal, including the use of electronic invoices. The Ministry of Finance (MoF) has recently proposed all gold transactions should be conducted via non-cash payment methods, Minh added.

According to the general department, nearly 55,000 businesses country-wide have started issuing electronic invoices, including 5,835 gold and silver traders, who have issued over 1.06 million of such invoices to date./.

Southeast key economic region’s exports grow strongly

Exports by provinces and cities in the southeastern key economic region have grown strongly so far this year.

The region includes Ho Chi Minh City and the five provinces of Dong Nai, Binh Duong, Ba Ria - Vung Tau, Binh Phuoc, and Tay Ninh, making it the country’s largest economic hub and a major contributor to economic growth, exports, Government revenue collections, and jobs.

According to the Binh Duong Department of Industry and Trade, in the first five months of the year the province's exports valued nearly 13.8 billion USD, up 13.9% year-on-year.

Vice Chairman of the province’s Wood Processing Association Luu Phuoc Loc said the wood products sector has always been one of Binh Duong's bright spots in terms of exports.

With its effective business support policies, Vietnam's wood and wood products exports have achieved great success in the international market, he said.

Businesses are trying to secure more orders by organising fairs and exhibitions at home and abroad and making inroads into new markets in the Middle East, he added.

According to Dong Nai province's Statistics Department, in the first five months of the year, the trade surplus topped 2.8 billion USD, with local businesses exporting nearly 9.3 billion USD worth of goods.

Of Dong Nai's exports, more than 60% are from industries such as electronics, textiles, footwear, and machinery components and equipment.

The province exports to more than 170 countries and territories, but the US, Japan, China, the Republic of Korea, and Europe remain the main markets.

According to businesses, the export market shows signs of improvement with more orders coming in.

Dong Nai expects a trade surplus of 6.8 billion USD this year.

Nguyen Ngoc Hoa, Chairman of the HCM City Business Association (HUBA), said since the beginning of the year, local businesses have had large orders that would take until the end of the third quarter to complete.

Though businesses are still under pressure to reduce prices and face high technical barriers, they are striving not to lose orders, accepting reduced profits and finding ways to reduce costs.

Thanks to this, the city's exports continue to recover after being affected by fluctuations in the world market, with shipments increasing across the board by product and market.

Its Department of Industry and Trade said exports in the first four months of the year were quite high at 12.5 billion USD, a 69% increase year-on-year.

Textile and garment exports topped 1.2 billion USD, an increase of 40%, wood and wood product exports rose by more than 80% to 175.6 million USD, and machinery, equipment, tools, and parts exports reached 912.8 million USD, an increase of 41%.

The city has created mechanisms and policies to support businesses in converting production models towards increasing the application of modern, environmentally friendly technology and improving the competitiveness of Vietnamese exports.

It has also encouraged businesses to find partners in and expand markets outside of China and the US.

Diversifying export markets will help reduce cyclicality and volatility in exports./.

Vietnamese, Russian taxation agencies ink MoU on cooperation

The General Department of Taxation of Vietnam and the Federal Taxation Service of the Russian Federation signed a Memorandum of Understanding (MoU) on bilateral cooperation in Hanoi on June 20.

The signing ceremony of the MoU was held on the sidelines of Russian President Vladimir Putin’s state visit to Vietnam from June 19-20.

The General Department of Taxation said the signing of the MoU would create opportunities for the two sides to deploy bilateral cooperation activities, thus contributing to taxation partnership between Vietnam and Russia.

The cooperation covers the exchange of experiences in tax policy and management; tax management in e-commerce and retail; digital tax services for tax payers; automatic exchange of information for tax purposes (including e-commerce); digital transformation in tax management (including big data management); transmission of online data about transactions from cash registers, among others.

The forms of cooperation include the exchange of information and sharing of experiences in the said-above fields; holding seminars, meetings, working groups and field trips in both countries; personnel training; transfer of experience and knowledge between the two sides.

According to the General Department of Taxation, the signing of the MoU was a step forwards in economic, external and political relations between the two nations, helping Vietnam to improve its capacity in developing and building tax policies and management, especially in the fields where Russia has experience such as tax management in e-commerce, digital tax services for tax payers, automatic exchange of information for tax purposes, and digital transformation in tax management./.

Vietnam – Brazil's priority partner in Asia: Brazilian Vice President

Vietnam is Brazil’s priority partner in Asia, Vice President and Minister of Development, Industry, Trade and Services of Brazil Geraldo Alckmin affirmed at a working session with Vietnamese Ambassador to Brazil Bui Van Nghi in Brasilia on June 19.

The Vice President said he is impressed by Vietnam's growth rate and international economic integration as it has joined 16 free trade agreements (FTAs).

Vietnam is currently an attractive economic, trade and tourism destination, he said, adding that the country connects supply chains, semiconductor production and logistics services.

He proposed establishing a direct route linking Brazil and Vietnam, thus contributing to promoting tourism and trade exchange with Southeast Asia.

Brazil is interested in promoting cooperation in science and technology, innovation, and high technology, especially the semiconductor industry and clean, renewable energy, Alckmin said.

For his part, Ambassador Nghi emphasised that in addition to the fine political and diplomatic relations, economic and trade cooperation between Vietnam and Brazil continues to grow strongly. Brazil is Vietnam's largest trading partner in Latin America and second in America, after the US. Meanwhile, Vietnam is Brazil's leading trading partner in the Association of Southeast Asian Nations (ASEAN).

According to the General Department of Vietnam Customs, trade between Vietnam and Brazil hit 7.11 billion USD, of which Vietnam’s imports were valued at 4.7 billion USD.

In the first five months of this year, Vietnam's export turnover to Brazil reached 1.14 billion USD, up 1.48% over the same period last year. Vietnam's key export items to Brazil included phones and components, vehicles and spare parts and computers and electronic products.

Nghi spoke highly of Brazilia's aviation technology, including Embraer's narrow-body aircraft, suitable to the need of Vietnam's air transport and tourism development./.

Vietnam’s anti-corruption efforts help boost economic growth: Canadian experts

Vietnam’s anti-corruption efforts have helped spur its economic growth, Director of the Canada-Vietnam Trade Council Julie Nguyen and Professor of Business at Centennial College in Toronto Luis Silva shared the view.

In their recent article on Canada’s Ottawa Life magazine, the experts said in recent years, Vietnam’s battle against corruption has been intensified, marked by high-profile cases hitting the headlines. Those cases demonstrated the Government’s commitment to transparency and accountability.

Vietnam’s standing on the Transparency International’s Corruption Perceptions Index (CPI) jumped by 10 points between 2013 and 2023, ranking 83rd out of 180 countries in 2023.

The article said under the leadership of Party General Secretary Nguyen Phu Trong, Vietnam has taken significant strides in its anti-corruption efforts since 2016.

The anti-corruption campaign has seen the dismissal of numerous senior officials, signalling a commitment to root out the phenomenon at all levels.

Business corruption, particularly in industries like real estate, banking, and health care, has also been targeted. Notably, Truong My Lan, head of a major real estate company, was sentenced to death for involvement in a 12.5 billion USD financial fraud case.

While these anti-corruption measures may have disrupted some projects and supply chains, they’ve contributed to an improved business environment, as reflected in Transparency International’s assessments.

"Over the years, Vietnam has become an attractive destination for foreign investors due to decreased corruption, improved business climate, and enhanced transparency," the experts said.

According to the article, Vietnam presents promising investment opportunities. The country's stable political environment, strategic location, and growing economy appeal to institutional investors.

Although investors have to navigate infrastructural inadequacies, regulatory complexities, and corruption risks. Vietnam’s ongoing reforms and investment-friendly policies instil optimism among them.

It said Canadian stakeholders stand to benefit from engaging with Vietnam. Bilateral trade between Canada and Vietnam has soared, surpassing 10 billion USD in 2023.

As members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the two countries are poised to deepen economic ties further. Canadian businesses are advised to capitalise on Vietnam’s growth trajectory and its strategic position in Canada’s Indo-Pacific Strategy.

Amid geopolitical shifts, Vietnam remains steadfast in its foreign policy, balancing relations with major powers and strengthening ties with other ASEAN members. For Canada, deepening engagement with Vietnam aligns with its Indo-Pacific Strategy and offers opportunities for economic cooperation and regional influence, the article said./.

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