A firm policy framework is crucial to nurture the creative economy, one with “unlimited” development potential, according to Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM).

The creative economy, though a new norm as it is, has brought to Vietnam billions of USD each year. According to a CIEM research, Vietnam has initially made efforts to access creative industries and services.

The country has built a policy framework for creative economic development, with a number of policies and regulations completed and meeting the requirements for creative economic development.

For example, Vietnam's regulations on intellectual property protection have been completed in accordance with international commitments and international practices, motivating creators to promote their creativity.

A report announced by the UN Trade and Development (UNTAD) in 2022 showed that the global market size for creative goods increased by an average of 2.28% per year between 2011 and 2020 and up to 16.56% in 2021.

Total global exports of creative services rose by an average of 8.14% per year in the 2011-2020 period. It can be seen that global export of creative goods has grown significantly because many countries are implementing measures to support cultural and creative industries.

In Vietnam, MISA, a financial and accounting software supplier for small and medium enterprises, has been an example of a successful creative business. The firm has designed and exported MISA CukCuk software to the world. After five years in the international market, this software is currently available in more than 20 countries around the world and has achieved sales of nearly 2 million USD. It targets a revenue of 1 million USD in 2024 and 50 million USD in the next five years.

Nguyen Anh Duong, head of the CIEM’s General Research Department, said that Vietnam has great advantages in promoting the creative economy thanks to a young, tech-savvy population, rich cultural heritage, rapid digitalisation, and increasing international economic integration.Economist Vo Tri Thanh held that a widely connected and strongly supported culturally-based creative industry will give Vietnam a great commercial capacity and global competitiveness.

Vietnam has a large domestic market, along with an expanding and very promising regional market, he commented.Meanwhile, Dr. Nguyen Hoang Hanh, Director of the centre for research, training, support and consulting under the National Office of Intellectual Property, said that intellectual property is the energy and even the backbone and the lifeblood for the creative economy.

She stressed the need for Vietnam to promote the potential of intellectual property as an effective tool for creative economic development.

However, Dr. Minh held that Vietnam should clearly define difficulties and limitations for creative economic development.She cited a CIEM survey in some localities which showed that the understanding of creative economy remained different in localities, while there is a lack of policy framework and legal regulations for many creative activities.

Pointing to a lack of updated and detail data related to creative economy, Duong held that in the immediate future, it is necessary to improve policy and legal institutions to create a suitable legal framework for the development of the creative economy.

This includes the creative and cultural industries as well as the creative cultural market, while integrating creative economic development in economic development plans and goods and service export policies.

It is necessary to invest more in infrastructure and digital technology, increasing education and skills training, and promoting domestic and international markets for Vietnamese creative products and enhancing sustainability and social responsibility in creative-related businesses, he said.

Dr. Minh stressed the need to renovate mindset, methods, and models to create new spaces for economic growth./.

Geographical Indication certificates help increase value of Vietnamese farm produce

Geographical Indications (GIs) are considered an effective tool to promote the export of Vietnamese agricultural products.

Therefore, building brands for Vietnamese agricultural products associated with geographical indication protection has become an important direction to enhance value and affirm brands for local specialty products in the domestic and international markets.

On June 3, 2024, the Intellectual Property Office of Vietnam under the Ministry of Science and Technology issued a decision on granting a geographical indication registration certificate for clam products of the Mekong Delta province of Ben Tre, with the provincial Department of Science and Technology managing this GI.

Earlier, the province’s clam farming sector received the Marine Stewardship Council (MSC) certification, marking the third time it has met the organisation’s sustainability and management standards, said Director of the provincial Department of Agriculture and Rural Development Doan Van Danh.

The certificate will be valid from May 23, 2024 to May 22, 2029. The MSC Fisheries Standard conducts the assessment on the management and sustainability of facilities. Earlier, the local clam farming sector received the MSC certificate in 2009 and 2016.

According to the department, receiving the GI certificate and being re-certified by the MSC will help Ben Tre’s clam products easily access such choosy markets as the US, the European Union, and Japan in the coming time.

Experts said geographical indications affirm local advantages in developing and promoting products and enhancing the economic value of specialties. Maintaining the quality of products bearing GIs is an important way to ensure product quality for consumers.

In addition, GIs not only bring higher value to agricultural products in the domestic market but also help boost exports. The price of Luc Ngan lychee in the northern province of Bac Giang increased from under 10,000 VND (0.39 USD) to more than 35,000 VND per kilogram. Geographical indications are also considered as a "passport" for Vietnamese lychee to gain access to many demanding markets such as Australia, France, the US, and Japan.

After being granted a GI, the first batches of Luc Ngan Lychee were exported to Japan, marking an improvement in the intellectual property development work.

Nguyen Van Bay, Deputy Director of the Intellectual Property Office of Vietnam, said that GI protection has proved effective in increasing the value and reputation of many products. Typically, Meo Vac mint honey of the northern mountainous province of Ha Giang, after being protected by geographical indications, has seen its price double. Similarly, that of Phu Quoc fish sauce has risen by 30-50%, Phuc Trach grapefruit by 30-35%, Cao Phong orange and Vinh orange by more than 50%./.

Son La exports red-fleshed dragon fruit to Italian market

The northwestern mountainous province of Son La held a departure ceremony to export red-fleshed dragon fruit products to the Italian market on June 21.

Accordingly, five tonnes of red-fleshed dragon fruit from Quynh Thuan agricultural cooperative, Chieng Pha commune were exported via official channels through Ngoc Hoang agricultural cooperative,Mai Son district and the Vietnam Organic Foods Company Limited.

Red-fleshed dragon fruit is currently one of eight production chains for sustainable fruit development in Thuan Chau district.

To date, the entire district has 50 hectares of red-fleshed dragon fruit, of which 44 hectares are linked in chains, concentrating mainly in the communes of Chieng Pha, Phong Lai, Phong Lang, and Muong E.

This year's output is estimated to reach over 500 tonnes, with an average selling price of 30,000 - 35,000 VND (1.2-1.4 USD) per kilogramme.

It is expected that 60 tonnes of Thuan Chau's red-fleshed dragon fruit will be exported to markets such as the UK, France, Russia, Italy, some Middle Eastern countries and the EU market, striving to achieve the export value target of 325 billion VND this year./.

Firm policy framework crucial for creative economy: Experts

A firm policy framework is crucial to nurture the creative economy, one with “unlimited” development potential, according to Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM).

The creative economy, though a new norm as it is, has brought to Vietnam billions of US dollars each year. According to a CIEM research, Vietnam has initially made efforts to access creative industries and services.

The country has built a policy framework for creative economic development, with a number of policies and regulations completed and meeting the requirements for creative economic development.

For example, Vietnam's regulations on intellectual property protection have been completed in accordance with international commitments and international practices, motivating creators to promote their creativity.

A report announced by the UN Trade and Development (UNTAD) in 2022 showed that the global market size for creative goods increased by an average of 2.28% per year between 2011 and 2020 and up to 16.56% in 2021.

Total global exports of creative services rose by an average of 8.14% per year in the 2011-2020 period. It can be seen that global export of creative goods has grown significantly because many countries are implementing measures to support cultural and creative industries.

In Vietnam, MISA, a financial and accounting software supplier for small and medium enterprises, has been an example of a successful creative business. The firm has designed and exported MISA CukCuk software to the world. After five years in the international market, this software is currently available in more than 20 countries around the world and has achieved sales of nearly US$2 million. It targets a revenue of US$1 million in 2024 and US$50 million in the next five years.

Nguyen Anh Duong, head of the CIEM’s General Research Department, said that Vietnam has great advantages in promoting the creative economy thanks to a young, tech-savvy population, rich cultural heritage, rapid digitalisation, and increasing international economic integration.Economist Vo Tri Thanh held that a widely connected and strongly supported culturally-based creative industry will give Vietnam a great commercial capacity and global competitiveness.

Vietnam has a large domestic market, along with an expanding and very promising regional market, he commented.Meanwhile, Dr. Nguyen Hoang Hanh, Director of the centre for research, training, support and consulting under the National Office of Intellectual Property, said that intellectual property is the energy and even the backbone and the lifeblood for the creative economy.

She stressed the need for Vietnam to promote the potential of intellectual property as an effective tool for creative economic development.

However, Dr. Minh held that Vietnam should clearly define difficulties and limitations for creative economic development.She cited a CIEM survey in some localities which showed that the understanding of creative economy remained different in localities, while there is a lack of policy framework and legal regulations for many creative activities.

Pointing to a lack of updated and detail data related to creative economy, Duong held that in the immediate future, it is necessary to improve policy and legal institutions to create a suitable legal framework for the development of the creative economy.

This includes the creative and cultural industries as well as the creative cultural market, while integrating creative economic development in economic development plans and goods and service export policies.

It is necessary to invest more in infrastructure and digital technology, increasing education and skills training, and promoting domestic and international markets for Vietnamese creative products and enhancing sustainability and social responsibility in creative-related businesses, he said.

Dr. Minh stressed the need to renovate mindset, methods, and models to create new spaces for economic growth.

Singapore's Charge+ ties up with Porsche to develop charging network in Vietnam

Singapore electric vehicle (EV) charging firm Charge+ has teamed up with Porsche to launch a 1,700km EV charging network in Vietnam that links Hanoi and Ho Chi Minh City.

The initiative will see 17 DC ultra-fast charging sites installed across the entire country over the next three years.

The first nine sites with charging speeds of up to 180 kW will be up and running by the first half of 2025, located in key cities such as Hanoi, Ho Chi Minh City, Haiphong and Danang. The remaining eight sites are slated to be completed by the first half of 2027.

Meanwhile, the two high-performance charging sites already available at Porsche Studio Hanoi and Porsche Centre Saigon will also be integrated into the Charge+ app.

When the Charge+ network is complete, it will mark a significant milestone for Vietnam's EV charging infrastructure, facilitating seamless and efficient journeys for EV drivers throughout the country.

“In line with our mission to catalyse electric mobility in Southeast Asia, Charge+ is now implementing a 5,000 km EV charging highway that spans six countries that starts with Singapore and ends with Hanoi in Vietnam. We are most excited to partner Porsche, a visionary pioneer in EVs, to undertake the 1,700 km Vietnam leg, which represents a quantum leap in enhancing the EV charging experience in Vietnam. We are confident that this new charging backbone will boost confidence in long-distance driving and accelerate the EV transition in Vietnam,” says Goh Chee Kiong, CEO of Charge+.

“We are immensely proud to spearhead the development of charging infrastructure in Southeast Asia, in line with our three-pronged charging strategy including convenient at-home charging solutions, Porsche Destination Charging at lifestyle locations, and seamless ultra-fast charging networks enabling long EV journeys,” Henrik Dreier, director of New Business Fields at Porsche Asia Pacific, said. "The partnership with Charge+ in Vietnam reflects this continuous commitment to delivering exceptional mobility solutions, driving sustainable progress in the region."

In the same vein, Andreas Klingler, general director Porsche Vietnam, said that, "By establishing this new ultra-fast charging network with our partners, we want to unlock the possibility of fuss-free nationwide EV journeys for their customers, whilst also providing high levels of service and convenient charging solutions. EV owners in Vietnam can look forward to the possibility of inter-city EV journeys, and we look forward to making long-distance EV travel smoother, more seamless, and easier than ever before."

Charge+ boasts over 2,000 EV charging points active across Southeast Asia, making it the largest EV charging operator in Singapore and a key player across the region. The Singapore company aims to operate 30,000 charging points by 2030. Following its launch in its native Singapore, Charge+ also operates in Malaysia, Thailand, Vietnam, Indonesia, and Cambodia.

Ample room ahead for Vietnam to become circular economic model

With Vietnam being the fifth largest rice producer in the world, there are bright prospects ahead for the development of the local agricultural industry towards an ecological and circular model, according to industry insiders.

Le Thanh Tung, deputy director of the Department of Crop Production under the Ministry of Agriculture and Rural Development, said the Mekong Delta region typically produces about 24 million tonnes of straw each year.

Of the figure, only 30% of the straw is collected, while 70% of it is burned or buried in the fields, an issue that causes environmental pollution and increases greenhouse gas emissions.

Tung emphasised that circular agriculture has contributed to increasing income whilst reducing greenhouse gas emissions, adding that utilising by-products will serve to enhance the value chain of the rice industry.

He underlined the need to build a database and develop straw management models towards circular agriculture, with the ultimate aim being to collect 100% of straw from fields by 2030 and contribute to implementing the nation’s commitments at the UN Climate Change Conference (COP26).

Improving efficiency of circular economy through one million-hectare project

Insiders pointed out that with the volume of straw across the country reaching over 40 million tonnes per year, the reuse of the volume is expected to bring about great benefits to farmers and businesses whilst also contributing to reducing greenhouse gas emissions.

The project to develop one million hectares of high-quality, low-emission rice associated with green growth in the Mekong Delta region is anticipated to help to improve the overall efficiency of circular economy in rice production, while simultaneously promoting the development of circular economy in the entire rice value chain in the region.

Associate Professor Dr. Nguyen Van Hung, a senior expert from the International Rice Research Institute (IRRI), stressed that there remains ample room ahead for the Vietnamese rice industry to improve its value chain in association with reducing greenhouse gas emissions.

However, Dr. Hung underscored the importance of devising policies which seek to support the development of circular agriculture for farmers and cooperatives in terms of technology and markets.

The IRRI has been always ready to share and provide databases, design systems and develop circular agricultural value chains, while also working to introduce science and technology in production, build technical processes, as well as compiling circular agricultural handbooks for the rice industry, he noted.

Encouraging businesses to participate in circular economic chain

In fact, the rice production and processing sector has captured greater attention from domestic and foreign enterprises that are interested in an investment climate with transparency and simplified administrative procedures.

Phan Van Tam, deputy general director of Binh Dien Fertilizer Joint Stock Company, stressed that in order to exploit by-product sources at low costs and enhance competitiveness, it is necessary to draw up a zoning plan and pay special attention to traffic infrastructure for the purpose of transporting raw materials from production areas to processing plants.

Tam went on to reveal that in the project, the company has also co-operated alongside IRRI, scientists, and other companies in the Mekong Delta region to connect straw production cooperatives.

He noted that as a means of connecting cooperatives to collect raw materials, the cooperative's infrastructure to the factory locations must be convenient, while transportation costs must be at the lowest rate to compete with imported products.

Circular economy lays foundation for sustainable development in rice industry

Pham Thi Minh Hieu, head of the Can Tho Department of Cultivation and Plant Protection, said the circular economy model is an inevitable trend in terms of current agricultural production, adding that the effective use of straw in rice production will contribute to reducing greenhouse gas emissions.

 “The goal of the Can Tho agricultural sector is to apply circular agriculture with various technical solutions, thus helping farmers reduce production costs, increase profits and protect the environment,” Hieu said.

Can Tho wishes to replicate the circular economy model from straw in production areas around the southern city and the Mekong Delta region, that requires direction from the Ministry of Agriculture and Rural Development and support from international organisations, she noted.

According to experts, climate change has become increasingly severe, causing natural resources to be depleted. The shift of the Vietnamese rice industry to the circular economy model is an urgent requirement in the current context, which will help to optimise resource use, minimise waste, reduce greenhouse gas emissions, and create added value for the rice industry as a whole.

Oil company associated with Vạn Thịnh Phát scandal owes VNĐ760 billion in tax

The Cần Thơ-based Orient Oil And Gas Joint Stock Company (Orient Oil) has a tax debt exceeding VNĐ760 billion (US$29.85 million), according to the Cần Thơ Tax Department.

The amount accounts for nearly 36 per cent of the total tax debt in Cần Thơ City as of the end of May, according to the department.

The tax debt of Orient Oil has resulted in the temporary restriction of the company’s CEO, Huỳnh Trần Hồng Hải, from leaving the country.

Established in 2010 in Cần Thơ City, Orient Oil is engaged in the production and trading of petroleum, solvents, liquefied gas, and petrochemical products, with a production plant capacity of 130,000 metric tonnes per year.

Under the leadership of Nguyễn Thanh Tùng, its former chairman, Orient Oil has faced challenges related to tax debts.

Its tax responsibilities amounted to VNĐ108 billion in 2018, which escalated to nearly VNĐ1 trillion by the end of June 2021.

Last year, the company also defaulted on bank loan repayments, prompting asset recovery measures by the Bank for Investment and Development of Vietnam (BIDV) due to its failure to repay VNĐ1.19 trillion in principal and interest.

In addition to Orient Oil, the Cần Thơ Tax Department has also identified 162 companies with unresolved tax obligations worth a total of VNĐ1.37 trillion.

Vietnamese authorities are implementing stringent measures to combat tax evasion, including restricting individuals with outstanding tax debts from leaving the country until their obligations are settled.

The initiative aims to recover tax debts, particularly land use and lease taxes, to uphold state budget revenue.

Nguyễn Thanh Tùng, the former chairman of Orient Oil, has been implicated in the Vạn Thịnh Phát scandal, according to police investigations.

Tùng was identified as a key figure in the scandal involving financial fraud with Trương Mỹ Lan, chairwoman of Vạn Thịnh Phát group.

Tùng was accused of collaborating with Lan to create fake loan documents to obtain loans from the Saigon Commercial Joint Stock Bank (SCB), resulting in a loss of over VNĐ1.2 trillion to the lender.

Trương Mỹ Lan at a trial earlier this year received the death penalty for financial fraud at SCB and was also ordered to pay compensation of VNĐ673.8 trillion ($27 billion) to the bank.

Other bank executives and State officials involved in the scandal received various sentences ranging from three years to life for embezzlement and violating banking regulations.

Lan owned a significant stake in SCB under various people’s names and was found guilty of using the bank to fund her own company, Vạn Thịnh Phát.

In 1992, Lan and her family founded Vạn Thịnh Phát, one of the country’s most prominent real estate companies.

Her arrest was part of a national anti-corruption campaign which has intensified since 2021. 

Vietnamese lychee promoted in Bangkok

Central Retail on Friday inaugurated the "Vietnamese Lychee Promotion Event" at CentralwOrld Shopping Mall in Bangkok, Thailand.

The event aims to introduce Thai consumers to premium, in-season lychees from Việt Nam, certified with GlobalGAP and geographical indication labels.

Vietnamese Ambassador to Thailand, Phạm Việt Hùng, highlighted the importance of such events in promoting Vietnamese exports and strengthening trade ties between Việt Nam and Thailand, with a bilateral trade goal of US$25 billion by 2025.

Jariya Chirathivat, Executive Vice President of Central Group, emphasised Tops' commitment to sourcing top-quality products globally, noting that this is the seventh consecutive year Tops has promoted Vietnamese lychees in Thailand.

The event runs from mid-June to early July at 32 Tops Food Hall and Tops Market stores across Thailand.

Due to challenging weather, Bắc Giang Province's lychee production is expected to reduce by 30 per cent compared to last year's output. Despite that, Central Retail has maintained competitive prices to boost consumer support. Lychees are offered at a promotional price of 299 baht ($8.16) per kilo, down from 399 baht/kg.

Paul Le, Vice President of Central Retail in Việt Nam, expressed confidence in the export potential of Vietnamese lychees, thanks to improved cold storage and packaging techniques.

"With increasingly improved cold storage and packaging management, we believe Vietnamese lychees will soon be exported to many countries worldwide," he said.

"In the Thai market alone, Central Retail has successfully exported to Thailand continuously since 2017. Thai people now often wait for Vietnamese lychees in season to enjoy the world's best quality lychees." 

More than 400 handicraft products showcased in Hà Nội

A specialised exhibition of handicrafts, One Commune Once Product (OCOP), and exemplary rural industrial lacquerware and wood-carving products opened in Hà Nội today (June 21).

Set over an area of around 500sq.m, the exhibition, organised by the Hà Nội's Department of Industry and Trade, showcased over 400 unique and creative samples of handicrafts and village products.

The event was planned over an open space to fully show off the crafts and offer a friendly, comfortable and welcoming experience for visitors and traders.

This event is an opportunity for the public, enthusiasts and those interested in handicrafts, especially lacquerware and mother-of-pearl inlay - wood carving, to admire the outstanding and high-aesthetic-value works created by the talented hands of skilled artisans.

At the exhibition, there was also an opportunity for visitors to learn more about the crafts and connect with the handicraft community, while also learning how to bring these designs into practical production to meet market demands, particularly for export.

Speaking at the opening of the event, Hoàng Minh Lâm, Director of the Centre for Industrial Promotion and Industrial Development Consultancy, said that this specialised exhibition aims to display, introduce, promote and connect trade for new and creative handicraft designs in the lacquerware and mother-of-pearl inlay - wood carving sector across all experts, including younger designers in Hà Nội.

The exhibition helps businesses and rural industrial production facilities in the lacquerware and mother-of-pearl inlay - wood carving sector in the city to learn, understand and incorporate these designs into practical production. These designs can help develop new products to meet market demands, said Lâm.

The 2024 event also actively supports businesses and rural industrial production facilities in Hà Nội's handicraft sector to develop and diversify their product designs to meet market demands.

Organisers hope that the exhibition will strengthen the connection between designers, craftsmen, manufacturers, distributors and consumers, while promoting outstanding and typical products from traditional craft villages in the capital city's districts and towns.

It also connects and expands business co-operation among domestic and international organisations, experts and businesses in the field of design and creative industries. 

Domestic enterprises advised to optimise FTAs

The FTAs have opened up many doors for Vietnamese products to enter potential markets, including many demanding markets with high requirements and standards.

Though free trade agreements (FTA) have so far helped Việt Nam boost exports significantly, domestic enterprises need to further study markets and better focus on the country’s strengths to optimise the deals.

According to statistics from the Ministry of Industry and Trade (MIT), since joining the first FTA with ASEAN more than 30 years ago, Việt Nam has so far signed and implemented 16 FTAs while negotiating another three FTAs.

Việt Nam is also the only country that has signed FTAs ​​with all major economic partners globally such as the US, Japan, China, the EU, the UK, and Russia.

The FTAs have opened up many doors for Vietnamese products to enter potential markets, including many demanding markets with high requirements and standards.

Expert Doãn Hữu Tuệ said FTAs helped Việt Nam significantly increase export output, with a growth rate of more than 20 per cent, much higher than the general export growth rate. In 2022, Việt Nam's trade surplus with FTA markets was more than US$30 billion.

Dominik Meichle, chairman of the European Chamber of Commerce in Vietnam (Eurocharm), said with the EU-Vietnam Free Trade Agreement (EVFTA) alone, Việt Nam's export turnover to the EU market increased to more than 48 billion euros in 2023 from about 35 billion euros in 2019.

The signing and implementation of the FTAs ​​have brought many positive export impacts for Việt Nam, but there remain limitations related to origin and non-tariff barriers that have meant many opportunities have not been fully exploited.

According to experts, the certificate of origin (C/O) plays an increasingly important role as a ‘golden key’ to help Vietnamese businesses expand exports and take advantage of tariff incentives under FTAs.

However, the Vietnam Import-Export Report 2023 recently published by MIT shows Việt Nam’s total export turnover which used preferential C/O types under the FTAs in 2023 reached $86.1 billion, accounting for 37.35 per cent of the country’s $230.5 billion total to the FTA markets.

Nguyễn Thường Lạng, PhD, from the National Economics University’s Institute of International Trade and Economics, cited MIT’s data as saying that for the EVFTA alone, after three years of implementation, Vietnamese enterprises could only take advantage of 26 per cent of the agreement's incentives while the rate for FDI-based Việt Nam enterprises was significantly greater.

Specifically, FDI disbursement in Việt Nam hit a record high of more than $23 billion in 2023, most of which headed into the export sector to take advantage of FTA opportunities. More than 70 per cent of Việt Nam's export turnover was a result of FDI enterprises.

As for FTAs, Vietnamese exporters had mainly focused on traditional products with low labour cost advantages, such as textiles-garments and assembled industrial goods and natural resource advantages such as agricultural products and wooden products. Furthermore, these products had not yet been fully exploited through the increase of added value by using supply chain and professional marketing development.

Meanwhile, the fields which associate with the development of international investment relations in the new stage, have remained moderate, not commensurate with the great potential of the economy and mainly implemented by transnational companies, according to the International Investment Research Institute (ISC).

Việt Nam, Lạng said, was optimistically forecast to be the base for manufacturing electronic products worldwide after a series of FTAs ​​take effect. However, this role was unlikely to be played by Vietnamese enterprises in the short term. FTAs had not been used to create enough momentum to form a wave of innovation in domestic businesses.

According to a recent report submitted to the Prime Minister on the results of implementing the CPTPP, EVFTA and UKVFTA, though exports to large FTA markets, such as the EU, CPTPP and the UK, are growing positively, their proportion is still relatively modest and the preferential utilisation rate has not met expectations.

The preferential utilisation rate in the new CPTPP, EVFTA and UKVFTA is about 5 per cent, 26 per cent and nearly 24 per cent, respectively. Meanwhile, FDI enterprises still account for the majority of Việt Nam's key product export turnover, the report notes.

Vietnamese businesses, Tuệ said, had only participated in some stages of the supply chain. The ability to meet and comply with quality, food hygiene, safety and technical requirements of Vietnamese goods was still limited, especially in the context that many import markets had increasingly improved technical standards and non-tariff barriers. Vietnamese enterprises still mainly made processed products according to orders so the added value was not high.

To optimise the FTAs, Vietnamese businesses needed to take advantage of market opportunities, participate in the global value chain and access modern technology, according to Lạng.

The first and biggest impact of FTAs ​​is to maximise market expansion in both width and depth. Therefore, to effectively exploit this, domestic businesses need to proactively invest in surveying and understanding the market to firmly grasp the needs of partners. They should actively take part in trade fairs, exhibitions, forums, conferences, trade connections to find suitable partners.

Participation in FTAs means the connection and deep penetration in the global value chain. To gain a genuine connection, domestic businesses need to meet origin standards as committed in each FTA. They absolutely do not cheat on origin or avoid trade defence measures to avoid a loss of credibility with relevant entities.

Most Vietnamese businesses are small and medium sized, so it is difficult for them to cover the entire large market, create scale advantages and invest in high technology, besides being easily dominated by competitors. Therefore, the businesses need to proactively connect and cooperate with each other to increase support and complement each other to enhance the capacity to meet large-scale orders.

Domestic businesses need to invest in research, development and innovation, which create differentiating factors, know-how and core competitive advantages for them. 

Healthcare sector urged to shift to a patient-centric model

The healthcare sector needs to shift from a hospital-centric model to a patient-centric one to meet the needs of patients, especially in light of an aging and growing population, said Dr. Dilshaad Ali Bin Abas Ali, Group CEO of Hoàn Mỹ Medical Group.

During a roundtable on healthcare transformation in HCM City this week, he said that with this new model of care, the healthcare sector would focus not only on patients' experiences in hospitals, but also on establishing a system capable of providing healthcare services directly at home through digital applications.

"Successfully implementing this model can help reduce costs for patients," he said.

"For the patient-centric model, system design plays a crucial role, as it determines the success or failure of efforts to enhance patient experience.

"The operation of the home and hospital care model requires intelligent digital integration, involving logistics, and understanding and effectively utilising data. Moreover, service quality must be measured and resulting actions clearly defined," he said.

Attendants at the event agreed that Việt Nam's health sector is facing an increasingly high need for treatment and care due to population growth, aging demographics and improved living standards.

Dương Huy Lương, Deputy Director of the Department of Medical Service Administration, under the Ministry of Health, said Việt Nam has encountered challenges from the dual disease burden (infectious and non-communicable diseases), increasing the risk of mortality and imposing a burden on society.

“This underscores the need to swiftly transform and continuously enhance the quality and efficiency of the healthcare system from central to local levels to adapt to changing disease patterns,” he said.

According to Lương, Vietnamese people spend around US$2 billion every year on medical treatment abroad, a figure that could rise to $3-4 billion in the coming years.

He added that if Việt Nam is to become a regional healthcare hub, there needs to be comprehensive solutions on such things as training high-quality healthcare professionals, investing in robust infrastructure, developing specialised medical services, advancing digital transformations and simplifying administrative procedures.

Increasing access to quality healthcare services

Participants at the event also discussed the accessibility of healthcare services with an equitable delivery model.

Alongside the rapid growth of the middle class, with a higher disposable income for healthcare, a large segment of Vietnamese people still seek better-quality private healthcare services at affordable costs.

The healthcare sector's transformation needs to meet the demands of both high-income individuals, potentially redirecting the $2 billion spent abroad every year for medical treatment back to Việt Nam and the general public, particularly those on below-average incomes.

"The Hoàn Mỹ ecosystem is focusing on building and developing healthcare facilities that cater to people’s diverse needs and financial capabilities,” the group's CEO Dilshaad Ali Bin Abas Ali said.

“Hoàn Mỹ is expanding access to healthcare through the Thuận Mỹ network of hospitals and clinics, offering quality medical services at affordable costs.

"Our vision is that, by 2030, we will have transitioned from leading the medical sector to shaping healthcare culture, to advance the health and well-being of all Vietnamese people.”

In her speech at the event, Louise Cuskelly, Executive Director at the ACHS International & Consulting, shared insights on high-quality care elements, challenges and practical experiences to help Vietnamese healthcare facilities raise care standards to international levels.

Additionally, with digitalisation, processes that optimise data flow between medical devices and computer models are essential, she said.

Meanwhile, James Anibal, a Researcher at Oxford University said despite challenges, digital healthcare models have demonstrated potential advantages in optimising costs, time and patient accessibility.

He added that in the future, artificial intelligence (AI) applications may help doctors worldwide reduce errors in diagnosis and treatment processes, ultimately improving the quality of care.

Việt Nam’s healthcare sector aims to position the country as a destination for health and wellness tourism within the next 20 years, contributing to the country’s economic growth, while building a 'healthcare industry' for the future. 

Rubber exports to Sri Lanka soar

The Sri Lankan market suddenly increased rubber imports from Việt Nam with a growth of 435.7 per cent in volume and 530.5 per cent in value in the first five months of the year.

The Agency of Foreign Trade under the Ministry of Industry and Trade cited statistics from the General Department of Customs as saying that the country rubber exports reached 84,460 tonnes last month, worth US$135.64 million, up 14.8 per cent in volume and 14.5 per cent in value compared to April, but decreased by 27.9 per cent in volume and 14.9 per cent in value compared to May last year.

This is the second consecutive month that rubber exports have decreased compared to the same period last year.

In the first five months of this year, rubber exports reached 572,280 tonnes, worth $859.4 million, down 2.4 per cent in volume, but up 6 per cent in value compared to the same period last year.

Rubber exports to many major markets decreased in the first five months of this year, in particular markets such as China, the Netherlands and Peru.

However, exports to some markets still grew including India, South Korea, Russia, Indonesia, Sri Lanka, Turkey, Brazil and Italy.

Notably, Vietnamese rubber imports to the Sri Lankan market suddenly soared in the first five months of the year, rising the market share of rubber exports to this market from 0.26 per cent to 1.43 per cent of Việt Nam's total rubber exports. 

Businesses concerned over removal of VAT exemptions

The abolition of the 0 per cent value-added tax for export products and services will likely raise product costs and reduce Vietnamese products’ ability to compete internationally, said industry insiders.

The concern was raised by businesses about the scope of the draft VAT law, which has been discussed on the floor of the National Assembly this week.

Bùi Ngọc Tuấn, Deputy Director General of Tax Advisory Services at Deloitte Vietnam said for many, costs may go up as much as 6 per cent, on top of increased expenses on administrative procedures for tax refunds.

He added it took some businesses nearly two years to complete tax refunds, which was “a very, very long time” and has greatly affected their financial performance and cash flow.

"For medium-sized export manufacturing companies in Việt Nam, the absolute figure for additional input VAT could reach tens of millions of USD per year, not to mention the complications during tax refund procedures," he said.

Economists said careful consideration is required to ensure balance among the interests of investors, the economy and the government and that implementation must also be gradual to avoid negative responses from investors. 

Corporate income tax on smaller enterprises might be cut to as little as 15%

The corporate income tax on small and micro-sized enterprises might be cut to 15-17 per cent from a current common rate of 20 per cent, depending on previous revenues.

More appropriate tax rates for small and micro–sized enterprises is one highlight of the draft amendments to the Law on Corporate Income Tax, which with aims to promote the development of the private economic sector and encourage a transition from business households into enterprises, according to the Ministry of Finance.

The ministry said that most countries apply tax rates lower than the common rate on small enterprises. Tax rates can vary according to revenue scale and taxable income.

In comparison with ASEAN countries, the ministry said that the common tax rate of 20 per cent is equal to that of Thailand, Laos and Cambodia, lower than the Philippines (at 30 per cent), Myanmar (at 25 per cent) and Indonesia (at 22 per cent) but higher than Singapore (at 17 per cent) and Brunei (at 18.5 per cent).

Statistics show that there are about 900,000 enterprises in Việt Nam, of which small and micro-sized enterprises account for nearly 94 per cent.

It is necessary to encourage their development to generate revenue for the State budget in the long term, the ministry said.

The ministry is therefore proposing a tax rate of 15 per cent for enterprises with revenues of less than VNĐ3 billion per year and 17 per cent for enterprises with revenues between VNĐ3 billion and VNĐ50 billion. 

VN business forum in Indonesia discusses opportunities

The Association of Vietnamese Enterprises in Indonesia, along with the Vietnamese Embassy to Indonesia, organised a business forum in Jakarta on Thursday to discuss opportunities for doing business in the country.

Vietnamese Ambassador to Indonesia Tạ Văn Thông said that the embassy is willing to provide support to Vietnamese enterprises to operate and develop in Indonesia, contributing to promote the trade and investment cooperation between the two countries in potential sectors such as green economy, logistics, digital economy and electric vehicles.

Enterprises at the forum shared experiences in undertaking business in Indonesian markets and committed to support each other to create a Việt Nam business ecosystem in the country.

Thái Thanh Long from the Association of Vietnamese Enterprises in Indonesia said that the association has already helped connect more than 30 enterprises in Indonesia.

Đào Quý Phi, a representative of VinGroup’s Xanh SM Indonesia said that Indonesia is a huge market with a population almost three times the size of Việt Nam’s.

Indonesia is currently the third largest trade partner of Việt Nam, while Việt Nam is the fourth largest of Indonesia's within the economic union, ASEAN.

Bilateral trade reached nearly US$14 billion in 2023 with the two countries hoping to reach a joint trade target of $18 billion in 2028. 

Gov’t pushes for expressway connection between Vietnam, Cambodia
 
The Ministry of Transport has proposed a study on connecting the HCMC-Moc Bai Expressway in Vietnam with the Phnom Penh-Bavet Expressway in Cambodia.

Deputy Prime Minister Tran Hong Ha previously instructed the Ministry of Transport to lead an inter-ministerial working group to expedite procedures for this expressway connection.

Currently, Vietnam and Cambodia facilitate transportation and trade at the Moc Bai and Ba Vet border gates via National Highway 22 in Vietnam and National Highway 1 in Cambodia.

To further support trading, Tay Ninh Province, which borders Cambodia, is planning the construction of the Moc Bai Border Economic Zone. Authorities have emphasized the need to study the connection of the expressway through Ben Cau town to the Cay Me checkpoint, linking with the Phnom Penh-Bavet expressway in the short term.

According to a memorandum of understanding (MOU) between Vietnam and Cambodia, the Phnom Penh-Bavet Expressway, near the Vietnam-Cambodia border, is planned adjacent to border marker number 164 in Thiok village, Prey Phdao village, Chrok Mtes commune, Bavet city.

However, the proposed connection point and future development plans for a new border facility depend on further agreement between the two governments.

Tan Son Nhat airport to handle more flights in summer
 
Tan Son Nhat International Airport will be handling more flights during the summer season to meet the strong travel demand.

The airport in HCMC will manage around 680 flights per day on weekdays and around 710 flights on weekends from June to August.

According to the Vietnam News Agency, the airport announced that passenger numbers would surge significantly during the period from June 15 to August 15. It is estimated that the airport will serve around 110,000 passengers daily on weekends in this period.

In response to the rising travel demand, Tan Son Nhat is enhancing measures to ensure order and aviation security. These measures include deploying forces to address issues with touts, unregistered taxis, and motorbike taxis operating within the airport premises.

Additionally, a team of 30 youth union members will be stationed at the airport to assist passengers at security screening areas and in the public hall of the domestic terminal during peak hours from Thursday to Saturday each week, starting from June 14 to August 14.

Vietnam’s fruit and veggie exports grow strongly in Jan-June
 
Vietnam’s fruit and vegetable exports have reached nearly US$3.5 billion in the year to date, up by over 28% year-on-year.

Preliminary statistics from the General Department of Vietnam Customs showed that fruit and vegetable exports in June alone have expanded by 1% against the previous month and a sharp 16.7% year-on-year.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association (VINAFRUIT), attributed the sharp increase in June’s exports to the good harvest season of key products, including durian, dragon fruit and banana.

With the current growth rate, Nguyen predicted, total export revenue from fruits and vegetables in all of 2024 could exceed US$7 billion.

In 2023, Vietnam exported US$5.69 billion worth of fruits and vegetables, up by a staggering 69.2% compared to 2022, with durian alone contributing over US$2.2 billion.

Gov’t pushes for expressway connection between Vietnam, Cambodia

The Ministry of Transport has proposed a study on connecting the HCMC-Moc Bai Expressway in Vietnam with the Phnom Penh-Bavet Expressway in Cambodia.

Deputy Prime Minister Tran Hong Ha previously instructed the Ministry of Transport to lead an inter-ministerial working group to expedite procedures for this expressway connection.

Currently, Vietnam and Cambodia facilitate transportation and trade at the Moc Bai and Ba Vet border gates via National Highway 22 in Vietnam and National Highway 1 in Cambodia.

To further support trading, Tay Ninh Province, which borders Cambodia, is planning the construction of the Moc Bai Border Economic Zone. Authorities have emphasized the need to study the connection of the expressway through Ben Cau town to the Cay Me checkpoint, linking with the Phnom Penh-Bavet expressway in the short term.

According to a memorandum of understanding (MOU) between Vietnam and Cambodia, the Phnom Penh-Bavet Expressway, near the Vietnam-Cambodia border, is planned adjacent to border marker number 164 in Thiok village, Prey Phdao village, Chrok Mtes commune, Bavet city.

However, the proposed connection point and future development plans for a new border facility depend on further agreement between the two governments.

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