With summer vacation approaching and travel demand surging, Vietnamese airlines are ramping up capacity, particularly on popular routes connecting to tourist destinations.

The Civil Aviation Authority of Vietnam (CAAV) reported booking rates exceeding average levels on several routes from Hanoi and Ho Chi Minh City to popular tourist spots. Weekends and days closer to departure show the highest demand, with booking rates exceeding 50% on some routes. Even on weekdays, bookings remain healthy, hovering between 20% and 40%.

Destinations like Quy Nhon, Phu Quoc, Nha Trang and Dien Bien are experiencing particularly high booking rates from both Hanoi and Ho Chi Minh City.

To cater to this increasing demand, airlines are offering a variety of fares, including several significantly lower-priced options compared to the maximum fares regulated for economy class.

Industry leaders believe there is ample room for cooperation between airlines and tourism companies to maximise efficiency and affordability. Le Hong Ha, General Director of Vietnam Airlines Corporation, suggested tourism companies offer discounted rates of first-night stays for passengers arriving on late-night flights. Given the global shortage of aircraft, airlines should work together and share the best practices to maximise flight efficiency.

Vietjet Air's Deputy General Director Do Xuan Quang proposed additional measures to support the aviation and tourism sectors. These include continued government support mechanisms regarding the environmental tax on fuel, reduced fees for new international routes, and lowered banking interest rates to airlines, hotels and tourism companies.

He also called for the State's support policies to develop the aircraft fleet of Vietnamese airlines, as well as more effective airport management practices such as efficient flight slot allocation and airport operations, to increase overall capacity./.

Finance ministry cuts fees to aid businesses, citizens from July 1

In a move to ease burdens and bolster economic activity, the Ministry of Finance has announced reductions in fees and charges for various services.

The revised rates, outlined in a recently issued circular, will be effective from July 1 to December 31, 2024.

The measures target a range of sectors, with significant reductions for business operations. Fees associated with establishing and running banks and non-bank credit institutions will see a 50% decrease. Businesses will also benefit from a 50% cut in fees related to intellectual property protection. Citizens applying for new identity cards will enjoy the same discount.

Other sectors will experience reductions of 10-30%, including fees for getting licenses and permits for civil aviation operations, as well as entry and exit permits for restricted airport areas; and customs fees for foreign flights landing in Vietnam.

The securities industry will see a 50% reduction in most fees and charges. However, there are exceptions for licensing fees of securities professionals and supervision fees for securities activities.

This marks the fourth time the ministry has imposed fee reductions of 10-50%, which is estimated to have a budgetary impact of about 700 billion VND (29.1 million USD)./.

Hanoi businesses riding through headwinds with online sale

E-commerce in general and livestreaming in particular where buyers and sellers transact in real-time video have been growing in Vietnam with about 2.5 million sessions each month, heard a recent online meeting.

The Hanoi event was jointly held by the municipal steering committee for the “Vietnamese people prioritise Vietnamese goods” campaign and Ha Noi Moi Newspaper on June 27.

Nguyen The Hiep, Deputy Director of the municipal Department of Industry and Trade, said a wide range of products, from clothes and cosmetics to stationery and household utensils, have been put up for sale during livestream sessions.

He pointed to advantages of livestreaming such as fostering direct interaction with customers, shortening the purchasing process, and better promoting products, adding through e-commerce and livestreaming, enterprises have developed modern distribution channels and expanded the network of customers.

According to the official, livestream shopping is creating an intense race where retailers are seeking to lure customers by offering special promotion programmes and games, using music as the background, partnering with key opinion leaders (KOLs), and optimising different social networks like Facebook, YouTube and TikTok and e-commerce platforms such as Shopee, Lazada, Tiki, and Sendo.

The Hanoi department of market surveillance said the evolving consumer tastes and habits that target affordable and unique products have generated both opportunities and challenges, prompting businesses to put forth innovative strategies to lure customers.

The agency also warned of negative impacts caused by livestreaming, including the prevalence of counterfeit and smuggled goods, which may erode consumers’ confidence.

At the meeting, participants looked into solutions to make it easier for businesses, particularly startups, retailers, and stakeholders of “One Commune-One Product” programme, to deliver their products in the domestic market.

They also exchanged views on how to fight counterfeit and smuggled goods on e-commerce and livestream, and called for support from Hanoi departments and agencies to sellers online./.

Vietnam tourism considered as rising star in Italy: official

President of the Italian Government Tourist Board (ENIT) Alessandra Priante has described Vietnam tourism as a rising star in Italy.

Speaking at a tourism promotion programme held in Milan on June 27 by the Vietnam National Authority of Tourism (VNAT) and the Vietnamese Embassy in Italy, the Italian official said the numbers of tourists from Italy to Vietnam and vice versa is expected to increase.

Addressing the event, VNAT Director Nguyen Trung Khanh said that Italy is a leading traditional and important market of Vietnamese tourism in Europe. In 2023, Vietnam welcomed about 57,000 Italian visitors, equivalent to over 80% of the pre-COVID-19 pandemic level.

Khanh assessed that the Vietnam Tourism Roadshow in Italy was a good opportunity for tourism businesses of the two countries to share updated information, seek business cooperation opportunities, increase tourism exchanges, and prepare for a new phase with stronger development.

Convenient direct flights, simple immigration procedures, attractive destinations and tourism products, and hospitable people are ideal conditions to promote tourism development between the two countries, he said.

Vietnamese Ambassador to Italy Duong Hai Hung affirmed that Italy is the third largest economy in the EU and a potential tourist market for Vietnam.

The two countries celebrated the 50th founding anniversary of diplomatic relations in 2023, which demonstrateed a long-standing friendship and cooperative relations and a good foundation for cultural, economic and tourism cooperation between the two countries.

Hung said the Vietnamese embassy in Italy has carried out many activities to promote cooperation and promote tourism in localities in Italy. The Ambassador also appreciated the cooperation between Italy in general and the Lombardy region in particular with Vietnam in recent times and emphasised the need for a direct flight connecting Italy and Vietnam.

At the event, Italian travel businesses expressed their interest and asked many questions to better understand Vietnam’s tourism policies and incentives.

Within the framework of the tourism promotion programme in Italy, Khanh had a meeting Alessandra Priante, ENIT President and Raffaele Cattaneo, deputy minister in charge of international relations of Italy's Lombardia region.

At the meeting, the two sides affirmed the need to strengthen tourism cooperation between the two countries in the coming time. They agreed to call on the two governments consider signing a bilateral tourism cooperation agreement in the new period.

They also agreed to propose leaders of the two countries to allow opening a direct flight between Vietnam and Italy soon. The two sides also committed to strengthening tourism information exchanges and promotion activities in the coming time.

The programme in Italy was part of activities to promote Vietnamese tourism in Europe together with similar programmes held in France and Germany./.

Da Nang enjoys 40% surge in H1 foreign tourist arrivals

The central tourism hub of Da Nang has enjoyed an impressive growth of 40% in the number of international visitors in the first six months of this year, exceeding the pre-COVID-19 level in 2019, according to the city's Statistics Office.

The robust recovery of tourism has resulted in strong revenue increases of restaurant and accommodation services, by 22.2% to nearly 13 trillion VND (510.8 million USD), and retail sales by 14.6% to over 37 trillion VND, Director of the office Tran Van Vu told a press conference on June 28.

Particularly, the visitors served by local accommodation facilities are estimated at 5.1 million, reflecting a 25.6% increase compared to the same period last year. Of the total, international tourists numbered 2 million, up 40.3%, and domestic visitors 3.1 million, up 17.7%.

Meanwhile, the state budget revenue as of June 20 totalled 12.98 trillion VND, rising 34% from a year earlier. Total development investment during the period exceeded 5.33 trillion VND, accounting for 36% of the total state budget expenditure and growing 3.5% year on year.

During January-June, Da Nang's gross regional domestic product (GRDP) has expanded by about 5%, higher than the 3.48% growth in the same period of 2023 and the average of 3.54% recorded during H1 of the years in the 2020-2024 period.

In particular, the service sector has risen 5.99%, industry - construction 1.7%, and agro-forestry-fisheries 0.85%.

The size of the local economy is estimated at over 72.3 trillion VND during the period, 7.05 trillion VND higher than that in the same time last year, ranking 17th out of the 63 cities and provinces nationwide and topping the south-central coastal localities./.

Farm produce exports on course to meet US$54 billion target for 2024

Vietnam earned US$29.2 billion from agro-forestry-fishery exports in the first half of this year, marking a rise of 19% year on year, and it is now on course to meet the export target set for 2024.

Seafood is one of Vietnam's key export staples, bringing in large amounts of foreign currencies for the agricultural sector
The January-June period witnessed agricultural products gross US$15.76 billion, up 24.4%; forestry products bring in US$7.95 billion, up 21.2%; seafood at US$4.36 billion, up 4.9%; and livestock products at US$240 million, up 3.8%.

Seven key export items witnessed export turnover of over US$1 billion each, including coffee (US$3.22 billion), rice (US$2.98 billion), and cashew nut (US$1.92 billion), representing increases of 34.6%, 32%, and 17.4%, respectively.

The United States, China, and Japan all continued to make up the three largest import markets with respective growth rates of 20.8%, 9.5%, and 5%.

The import turnover of agro-forestry-fishery products in the first half of the year was estimated to be at around US$20.92 billion.

The five commodities recording the highest trade surpluses consisted of timber and wood products (US$6.16 billion), coffee (US$3.14 billion), fruits and vegetables (US$2.42 billion), rice (US$2.31 billion), and shrimp (US$1.43 billion), showing annual increases of 22.5%, 36.2%, 35.3%, 27%, and 13.3%, respectively.

The other five commodities posting the highest trade deficit were animal feed and raw materials (US$2.13 billion, up 17.5%); cotton (US$1.5 billion, up 9%); crop products (US$1.51 billion, up 7.2%); corn (US$1.17 billion, down 2.2%); and wheat (US$828 million, down 3.6%).

Overall, Vietnam racked up a trade surplus of US$8.28 billion from agro-forestry-fishery exports during the first half of the year, representing an annual rise of 62.4%.

At a press briefing in Hanoi on June 28, the Ministry of Agriculture and Rural Development attributed the upward trajectory in exports to effective implementation of a scheme to boost the export of farm produce to key arkets such as China, the United States, Japan, and the European Union.

Statistics show the US, China and Japan were the largest consumers of Vietnamese agro-forestry and fisheries products in the reviewed period. The US consumed 20.7% of the Vietnamese products, up 20.8%; China 20.2%, up 9.5%; and Japan 6.7%, up 5%

In addition the ministry is also increasing the export of the products to other potential markets in the Middle East and Africa.

The Prime Minister expected that the agricultural sector would bring in US$54 billion from exports this year, and the target would be achievable on the ground of high growth.

It is forecast that from July onwards, the demand for agricultural products will often be higher, so the export target by the end of the year of about US$54 billion can be achieved, said Deputy Minister of Agricultural and Rural Development Phung Duc Tien.

He said his ministry will continue to develop markets and remove obstacles to support the sales of the products by working closely with diplomatic missions of Vietnam overseas, facilitating business connectivity, and making full use of incentives fro free trade agreements especially in potential markets.

Khanh Hoa welcomes nearly 5.2 million visitors in six-month period

The south-central coastal province of Khanh Hoa received nearly 5.2 million visitors during the first six months of the year, earning more than VND26 trillion, up over 88% year on year, according to the provincial Tourism Department.

Of the figure, foreign visitors reached nearly 2.4 million, 3.2 times higher than the same period last year. The majority of tourists came from the Republic of Korea, China, Thailand, Kazakhstan, and Malaysia.

According to Nguyen Thi Le Thanh, director of the Khanh Hoa Department of Tourism, since the beginning of the year, the province has made efforts to implement a number of promotional programmes in a bid to attract both domestic and international visitors.

She revealed that the locality will hold the Nha Trang International Bay of Light Festival with the theme of "Brilliant milky way" which is scheduled to run from July 13 to 20.

The show will witness the participation of teams from the Republic of Korea, China, France, and the United Arab Emirates (UAE). It is expected to attract more than 50,000 spectators each night.

This year Khanh Hoa aims to welcome roughly 10 million tourists, including some four million foreigners.

Hải Dương to invest VNĐ1.4 trillion in developing another logistics complex

Hải Dương Province plans to invest more than VNĐ1.4 trillion ($55 million) to develop a logistics, petroleum and cargo port complex in Kinh Môn Town.

The project’s developer is a local company Đức Phương Limited Liability Company.

The project, covering 348,000 sq.m is expected to complete and go operational in 2027.

The logistics centre will be capable of handling around 280,000 TEU of container cargo and 1 million tonnes of other cargo per year.

The petroleum storage facility can store 48,000 cu.m of petroleum products to meet the demand in Hải Dương and neighbouring provinces.

The port can receive vessels of less than 3,500 DWT.

The project also includes a trade centre with an area of 32,850 sq.m.

The logistics complex is expected to contribute to promoting the development of the logistics industry of Hải Dương Province and facilitate customs clearance.

Deputy Chairman of the provincial People’s Committee Dương Lưu Văn Bản said that further consideration will be given on the project’s investment policy followed the established regulations.

This is the second logistics complex in the northern province under consideration, after Ninh Giang inland port and logistics complex which is expected to have an investment of nearly VNĐ1.4 trillion and cover nearly 27 ha in Ninh Giang District. The project’s developer is Vietnam Maritime Corporation.

Hải Dương aims to have six logistics centres by 2030.

Bắc Giang lychee prices reach record high

The price of Bắc Giang lychees in 2024 ranges from VNĐ55,000 to VNĐ85,000 per kilogramme, doubling or even tripling the prices of 2023, reaching the highest level in history.

This surge is attributed to adverse weather conditions that significantly reduced Bắc Giang’s lychee output, which now stands at nearly 100,000 tonnes, around half of last year's production.

According to the Bắc Giang Department of Industry and Trade, the 2024 lychee season has seen favourable consumption both domestically and internationally. The province exported over 24,700 tonnes of lychees, accounting for more than 28.9 per cent of the total consumption, while domestic sales exceeded 60,900 tonnes, making up over 71 per cent.

The rise in prices has led to a significant reduction in the volume of Bắc Giang lychees exported this year. As of June 24, over 24,500 tonnes were exported to China. Other export destinations included the EU (53 tonnes), Japan (45 tonnes), Australia (42 tonnes), the United States (20 tonnes), Dubai (21 tonnes), Canada (16 tonnes) and South-East Asian countries (18 tonnes).

The Bắc Giang Department of Industry and Trade estimated that the total revenue from lychees and related services this year would exceed VNĐ6 trillion. Of this, domestic sales are projected to generate over VNĐ4.8 trillion, while export activities are expected to bring in VNĐ1.6 trillion.

With nearly 30,000 hectares dedicated to lychee cultivation, Bắc Giang has focused on producing 223 planting area codes, covering more than 17,100 hectares for exports.

Currently, Bắc Giang lychees are exported to 30 countries and territories. Recently, the "Lục Ngạn Lychee" brand from Hồng Xuân General Services Production and Business Cooperative (Hồng Giang Commune, Lục Ngạn District) was among four products that achieved a 5-star OCOP (One Commune One Product) rating by the Central OCOP Evaluation and Grading Council on June 25. 

Property transactions of individuals might be limited

Việt Nam may develop regulations about caps on the number of property transactions and revenues individuals make in a year to limit speculation, heard a meeting to discuss the draft decree detailing several points of the Law on Real Estate Business.

This will tackle the fact that individuals bought and sold many real estate assets in a year with great value to speculate and make profits without establishing real estate businesses.

Deputy Prime Minister Trần Hồng Hà asked the Ministry of Construction to study carefully in order to raise specific regulations.

In the draft version in March, the ministry proposed that individuals be allowed to sell and lease from three to five properties in a year. If the transaction number exceeds five, the individuals must establish enterprises to implement property business. The proposal, however, was removed from the next draft.

Hà also asked the Ministry of Construction to coordinate with the Ministry of Information and Communications to develop regulations on the operation of electronic real estate trading platforms to ensure information safety and security as well as the responsibilities of the operators.

The Ministry of Construction must develop tools and a statistical approach to evaluate real estate price fluctuations as a base to timely raise solutions to regulate the market. 

VN has huge potential in semiconductor industry: US expert

Việt Nam has huge potential to promote the development of the semiconductor industry and artificial intelligence (AI) with an abundant young and well-trained work force, Richard Lawton Thurston, a leading non-engineer semiconductor specialist in the US said.

He made the comments during a meeting with the Minister of Planning and Investment Nguyễn Chí Dũng on Wednesday in Washington D.C.

The specialist who has supported many companies and governments in establishing and managing technology parks around the world, said AI requires many different technologies such as sensor, memory, data collection and processing and Việt Nam can select one of the stages to focus its strategy on.

Since Việt Nam and the US upgraded the relation to comprehensive strategic partnership, the two counties have actively increased cooperations in many fields, especially science, technology and innovation, Minister of Planning and Investment Nguyễn Chí Dũng said.

The US has agreed to support Việt Nam in improving semiconductor capacity and participating in the global value chain, especially in order to create a high-quality work force and to enhance research and development capacity.

Việt Nam is developing a project on human resource development for the semiconductor industry to 2030 with a vision to 2050, focusing on in-depth training of 1,300 lecturers and 50,000 engineers, setting up four national semiconductor laboratories and 18 standard semiconductor laboratories.

Dũng asked the American to share his experiences in developing the semiconductor industry with Việt Nam, as well as give recommendations, especially in human resource development, to promote the semiconductor sector.

Dũng also urged him to promote investments in Việt Nam and invited him to be an advisor to Việt Nam in semiconductor industry development.

While he was in Washington DC, Dũng met with Kathryn Neal, Director of International Policy, Microsoft Corporation, calling for Microsoft investments into developing research centres in Việt Nam as well as implementing training cooperation programmes and promoting AI application.

During the business trip to the US from June 22 to 26, Dũng also worked with Super Micro Computer, calling for cooperation to develop data centres and AI and 5G infrastructure in Việt Nam. 

Inflation a concern following salary increases

With many goods already witnessing sharp price increases in the first half of 2024, and incomes still struggling to bounce back from economic hardships, families are bracing for a potential squeeze on their budgets.

As the calendar inches towards July 1, a palpable sense of unease is spreading among households across the nation. The anticipated 30 per cent salary hike for public employees, raising the base salary to VNĐ2.34 million from VNĐ1.8 million, is sparking fears of price hikes. With many goods already witnessing sharp price increases in the first half of 2024, and incomes still struggling to bounce back from economic hardships, families are bracing for a potential squeeze on their budgets.

Economic expert Lê Duy Bình, director of Emonica Vietnam, said that raising salaries would be essential to increase income for public employees to motivate productivity. Salary reform policies would also be necessary to stimulate demand and boost domestic consumption amid ongoing economic difficulties.

However, he expressed concern that salary increases could lead to inflation. He noted that the impact on inflation arose not from the actual scale but from the expectation factor.

Reflecting on previous adjustments, Bình highlighted that prices often rose even before the expected salary increase took effect.

He also pointed out that deciding to increase salaries from July 1 (mid-year) could reduce additional pressure compared to peak price periods such as the beginning or end of the year. Intervention through temporary price freezes could mitigate inflationary pressure for goods with state-controlled prices.

"For market-determined prices, policy communication solutions are necessary to reduce inflation expectations, preventing prices from rising in tandem with salaries," Bình said.

He emphasised the need to communicate to businesses and traders that price increases would adversely affect purchasing power in the current difficult economic context with weak demand.

Trần Thị Khánh Hiền, director of Analysis at MB Securities (MBS), noted that the salary increase was occurring amid rising inflation since the beginning of the year, which could create significant pressure in the third quarter.

According to the General Statistics Office, the Consumer Price Index (CPI) in May 2024 increased by 0.05 per cent compared to the previous month and by 4.4 per cent compared to the same period last year.

Hiền noted that rising pork price and heatwaves pushing electricity price up contributed to the price rises in May.

The average CPI for the first five months of 2024 was up by 4.03 per cent compared to the same period last year, with core inflation rising by 2.7 per cent. The CPI trend had been upward since the beginning of the year and was approaching the Government's target of 4.5 per cent, Hiền said.

Furthermore, Hiền pointed out that rising transport costs including airfares due to the recovery in tourism were significantly impacting domestic inflation. Exchange rate pressures also showed no signs of abating, which increased the cost of importing goods, raw materials, and fuel.

Before the planned salary increase, goods prices were already under substantial pressure as businesses faced higher input costs.

"The fastest production cost increase in nearly two years has led to price hikes, which could affect market demand in the coming months," MBS warned.

Bình stressed the need for clarity regarding salary increases for public employees and the armed forces.

"The number of minimum-paid officials is only a few per cent of the population, not large enough to create real price pressure, so most of it is expectation. This information needs to be clear so that service and product providers can reconsider before raising prices," Bình said.

He also proposed that state management agencies increase inspections and supervision to promptly detect violations of competition laws and unreasonable price hikes that affect the market.

Many National Assembly deputies and experts suggested measures to prevent price increases following the salary raise.

NA Deputy Hoàng Anh Công, deputy head of the People's Petition Committee of the NA Standing Committee, noted that while the salary increase would benefit public employees, the Government and relevant agencies must take decisive measures to control prices and maintain macroeconomic stability.

This should include a thorough inspection of price listing processes, ensuring that price formation factors are checked to prevent unreasonable price increases that undermine the purpose of salary rises, thereby affecting government workers' livelihoods. Special attention must be given to essential food items and price listings at traditional markets.

Similarly, NA Deputy Vũ Tiến Lộc, a member of the National Assembly's Economic Committee, said that the proposal to increase the base salary was welcome news for government workers. However, past salary increases had often been followed by price hikes, causing more concern than relief for them.

The Government and the Prime Minister had worked out various measures to address this problem, and these efforts must continue. Relevant authorities should enhance the implementation and supervision of price declaration and public price listing measures. Strict enforcement against violations of price regulations was crucial.

In addition, proactive, flexible, timely, and effective monetary policy should be maintained, and coordinated with fiscal and other macroeconomic policies. Only when commodity prices are controlled, avoiding the situation where "prices rise before salaries rise" or "prices rise with salaries rise", could the purpose of salary increases for government workers be fully realised.

Deputy Minister of Finance Nguyễn Đức Chi noted that historically, prices often rose before salaries did, negating the benefits of salary increases for those on the payroll.

"However, in recent years, the Government, the market, and the public have adapted better, with less psychological impact when salaries are increased. Some past salary increases did not lead to price hikes," he said.

Lê Thị Tuyết Nhung, deputy director of the Ministry of Finance Price Management Department, said that at a recent Price Steering Committee meeting, the ministry had reviewed and proactively forecast various inflation scenarios, focusing on measures to control inflation.

The department would closely monitor the price changes of strategic commodities on global markets, geopolitical tensions, and their impact on domestic prices, taking timely and flexible measures to ensure the 2024 inflation target of 4-4.5 per cent would be met as set by the National Assembly.

Deputy Prime Minister Lê Minh Khái, head of the Price Management Steering Committee, has directed ministries and agencies to closely monitor fluctuating prices in both domestic and international markets to propose timely and appropriate measures and scenarios.

The goal is to maintain price control within the 4.5 per cent limit set by the National Assembly, ensuring smooth supply and circulation of goods to meet consumption demand.

Given the significant expectations associated with the upcoming salary increase, Deputy Prime Minister Khái stressed the importance of thorough inspection and enforcement of pricing policies to prevent unreasonable price hikes. Special focus should be on essential food prices at traditional markets.

To ensure timely and effective policy responses from the outset and to avoid confusion, Prime Minister Phạm Minh Chính has requested that ministers, heads of ministerial-level agencies, and leaders of provinces and cities continue to monitor market developments promptly and implement solutions to ensure the balance of domestic supply and demand, stabilise prices, and prevent shortages, hoarding, speculation, and unreasonable price increases.

"It is necessary to enhance the effective implementation and supervision of price declaration, price listing, and public disclosure of price information as per legal regulations. Ministries, sectors, and localities should regularly monitor information, keep track of market price movement of key commodities affecting the consumer price index, conduct inspections to ensure compliance with pricing laws, and strictly handle any violations," the Prime Minister said. 

Import-export turnover through Lào Cai Border Gate reaches nearly $1.6 billion

The total value of exports and imports through the border gates in the northern province of Lào Cai is estimated to reach US$1.57 billion in the first six months of this year, a year-on-year increase of 164.2 per cent, achieving 35 per cent of this year’s plan.

Of which, the export value is estimated to reach $866.6 million in the first six months of this year, equal to 186.24 per cent compared to the same period last year, fulfilling 45.61 per cent of the year's plan.

The import value is estimated at $313 million in the period, equal to 134.5 per cent over the same period last year, fulfilling 26.08 per cent of the year plan.

The Office of the provincial People's Committee said that after implementing many solutions to restore and stabilise import-export activities and custom clearances at the border, the operations at the gates are ensured. 

AI propels renewable energy to new heights

In Việt Nam, AI is expected to be adopted across smart buildings, urban transportation and electric vehicle charging infrastructure to enhance energy security.

AI and its applications are making profound inroads into every sphere of production and daily life. It is becoming increasingly vital for the efficient and cost-effective management of the global renewable energy industry by 2030.

In Việt Nam, AI is expected to be adopted across smart buildings, urban transportation, and electric vehicle charging infrastructure to enhance energy security.

The importance of AI in power grid management is rising significantly thanks to its accurate forecasting in smart grid operation, energy demand coordination and distribution, improving power generation efficiency, as well as research and development of new energy materials, according to Đồng Mai Lâm, cluster president for Schneider Electric Vietnam and Cambodia.

AI goes beyond simply alerting about potential issues, damage, or deterioration in systems, energy centres, or power lines that require maintenance and preventive measures. It also integrates this information with data on weather and traffic to assist companies in swiftly and optimally deploying electrical engineers to the field.

“The large amounts of data available on power grid parameters, including generation capacity, loads, currents, voltages, frequencies and grid fault signals, can serve as valuable inputs for various AI applications aimed at enhancing power quality and managing the grid more effectively,” Lâm said.

For example, when it comes to solar power, AI can be used to determine optimal locations for building solar farms based on sunlight duration and intensity. It can also aid operators in strategically planning the layout of solar systems to maximise sunlight capture.

AI technology can also be employed to make automated decisions, enabling solar panels to efficiently track the movement of sunlight throughout the day.

Given Việt Nam’s commitment at COP26 in 2021 to achieve net-zero emissions by 2050, the development of electric vehicles has also become crucial. Transportation contributes around 30 per cent of the country's greenhouse gas emissions, according to the 2022 report by the Ministry of Natural Resources and Environment.

Transitioning to electric vehicles, such as electric cars, motorcycles, vans and buses, offers more than just a climate-friendly solution, according to the recent Vietnam Energy Outlook Report - Pathways to Net Zero, released by the Vietnam Electricity and Renewable Energy Authority, the Danish Energy Agency, and the Embassy of Denmark in Việt Nam.

It provides opportunities to reduce healthcare and environmental costs related to air pollution, particularly in urban areas

The Ministry of Transport is drafting new laws on urban planning and development that will include policies to expand electric mobility infrastructure, including charging stations. These laws are expected to be presented to the National Assembly in 2024 and potentially take effect in 2025, which could boost public demand for electric vehicles.

The latest electric vehicle models widely employ AI technology, ensuring optimal performance and maximum safety, according to VinFast. With AI, these vehicles can utilise intelligent driver assistance systems, proactive cruise control, adaptive lane control, and smart parking assist. AI also enables automatic collision detection and warning, as well as software updates to address any identified errors.

On the other hand, AI can be used to help optimise EV charging station management, increasing revenue.

Citing a report from Mordor Intelligence, an in-depth market research report provider, Lâm said that the global AI infrastructure market was projected to grow rapidly, from US$23.5 billion in 2022 to over $164 billion by 2029, a 27.5 per cent annual growth rate.

A key segment would be electric vehicle charging stations, forecast to expand from $32.86 billion in 2024 to $104.09 billion by 2029, a 25.94 per cent annual growth.

In recent years, countries around the world have made significant strides in policy, financial support and technology, which have helped drive and narrow the green gap - turning corporate net-zero ambitions into concrete actions, particularly in the energy sector.

"Việt Nam faces unique challenges that differentiate its situation from others. The advancement of green sectors, particularly renewable energy projects, could be accelerated with enhanced policy support," Phạm Quốc Anh, CEO of Pacifico Energy Vietnam, told Việt Nam News.

"To boost investment in green energy, both from within the country and abroad, we see a great opportunity to refine our institutional and legal frameworks for clearer guidance. This would also facilitate effective government oversight of project outcomes."

He noted that streamlining the policy implementation and approval processes could significantly improve the landscape for investment opportunities.

Meanwhile, Lâm from Schneider Electric said that despite AI's essential contribution to enterprises' energy management and greener production, concerns about the costs of investing in green production and business operations remained a major barrier for many.

To enable businesses to both increase profits and produce in a green and sustainable manner, the optimal solution would be to develop a comprehensive model that integrates tangible economic value and non-financial value into investment decisions, Lâm said.

This should include identifying the comprehensive value of green buildings based on tangible economic values such as operating cost savings, increased real estate value, and higher rental rates.

"The initial investment cost for new green buildings is higher than that for existing buildings, but the gap can decrease over time as the technology further develops," Lâm added.

Greater application of electrification and digitalisation is key to balancing this equation, as they allow for more efficient energy use and smarter building and factory solutions, according to Lâm. 

The market sees a significant drop as foreign investors continue net selling

Benchmark indices moved in different directions on Friday as blue-chip stocks saw a withdrawal in capital while foreign investors continue net selling for 17 straight sessions.

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) finished the day at 1,245.32 points, down 13.77 points, or 1.09 per cent.

On the southern bourse, the breadth was negative as 266 stocks ticked down, while 69 increased. Liquidity hovered above VNĐ20.8 trillion (US$815 million), an increase of 37 per cent from the previous session.

The VN30-Index, tracking the 30 biggest stocks on HoSE by market capitalisation, also dropped 10.71 points, or 0.83 per cent, down to 1,278.32 points. The number of decliners surpassed gainers in the VN30 basket by 18 to nine while three stocks ended flat.

Large-cap stocks in the banking and manufacturing sectors led the market's downturn, with Vietnam Rubber Group Joint Stock Company (GVR) posting the biggest fall in market capitalisation of 5 per cent, contributing to a decrease of more than 1.7 points in the VN-Index.

Banking stocks also saw poor performance on Friday. Bank for Bank for Investment and Development of Vietnam (BID) declined 1.93 per cent, Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG) fell 0.96 per cent, and Vietnam Prosperity Joint Stock Commercial Bank (VPB) tumbled 1.84 per cent.

Losses were capped by gains in some pillar stocks, led by Eximbank (EIB). Shares of the lender rose 3 per cent, contributing nearly 0.25 point to the VN-Index.

It was followed by Vingroup Joint Stock Company (VIC), which increased by 0.49 per cent and Viet Nam Dairy Products Joint Stock Company (VNM) rose 0.31 per cent.

The Hà Nội Stock Exchange (HNX) index also finished lower on Friday afternoon, declining 1.03 per cent to 237.59 points.

During the session, more than VNĐ1.4 trillion worth of shares were traded, equivalent to a trading volume of over 76 million shares on the northern bourse.

Foreign investors on Friday continued to have a very strong net selling session on the Vietnamese stock market with more than VNĐ1.2 trillion. Thus, this block has had 17 consecutive sessions of net selling. 

Hà Nội could lead the country in digital technology

At a conference on Hà Nội's plans to develop digital technology enterprises, a representative from Ministry of Information and Communications said they believed Hà Nội can lead the country in the field of digital technology.

Deputy Minister of Information and Communications Bùi Hoàng Phương said that in recent years, Hà Nội has always been one of the top localities in the field of information technology.

Now, technology corporations in the world are paying attention to Việt Nam, including Hà Nội, so the capital city will have opportunities to develop information technology and digital technology.

Phương, speaking at the conference held on June 27, proposed that Hà Nội continue to prioritise resources to develop digital technology businesses and attract foreign investment related to high-tech fields, such as semiconductors and AI.

"The ministry will accompany Hà Nội to develop digital technology businesses and complete the legal system to help the digital firms develop sustainably," he said.

The Hà Nội Department of Information and Communications said that the People's Committee has issued Plan No. 184/KH-UBND to develop local digital technology enterprises from now until 2025.

Hà Nội is working to establish 10,000 digital technology enterprises, form ten groups of digital technology products as key industrial markers and incubate 10 digital technology startups, aiming at developing digital government, digital economy and digital society in the City.

In addition, this plan also specifies groups of key tasks and solutions to develop Hà Nội's digital technology enterprises until 2025.

Also at the conference, the Hà Nội Department of Information and Communications signed a cooperation programmes and plans with the Authority of ICT Industry and Communications under the Ministry of Information and Communications and Việt Nam Software and Information Technology Services Association (VINASA) to develop State management of information technology and digital technology businesses in Hà Nội in the 2024-25 period.

In addition, Hà Nội has plans on promoting digital transformation and building the smart city with the Hà Nội Informatics and Telecommunications Association and developing digital technology businesses and enhancing digital transformation in small and medium-sized enterprises in the city with the Hà Nội Association of Small and Medium Enterprises for the 2024-25 period.

These cooperation programmes are the basis for the information technology industry and the digital technology businesses in the city to develop further, promoting the development of Hà Nội's digital government, digital economy and digital society, said Nguyễn Việt Hùng, director of Hà Nội Department of Information and Communications. 

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