As much as 332.3 million USD in foreign investment was poured into Ho Chi Minh City in the first two months of this year, up 43.1% year on year, the municipal Statistics Office reported.

The southern economic hub granted investment certificates to 101 projects with registered capital of 97.7 million USD, up 22.8% from a year earlier.

Singapore ranked first with 23 new projects worth 76.6 million USD, accounting for 78.4% of the new capital. It was followed by the Republic of Korea (RoK) with nine projects worth 4.8 million USD, equivalent to 4.9%; and Taiwan (China) with four projects worth 4.2 million USD, 4.3%.

Meanwhile, 47.6 million USD was channeled into 29 existing projects. The RoK added the most, 16.4 million USD, making up 34.4% of the additional capital.

During the period, foreign investors spent 187 million USD on contributing capital to and purchasing shares of local businesses, rising 15.9% year on year. Singapore and the RoK topped the list in this regard, respectively accounting for 64.3% and 11.7%, data show.

As of February 20, total foreign investment in HCM City approximated 80.31 billion USD. In particular, there were 11,447 valid foreign investment projects with total capital of nearly 56.33 billion USD. About 23.98 billion USD was registered to contribute capital to and purchase shares of domestic firms, according to Statistics Office.

Vietnamese electrical vehicles reach US customers

Vietnamese electrical carmakers VinFast on March 1 delivered its first 45 VF 8 City Edition electric SUVs to US customers at nine California showrooms, marking its official entry into the US automobile market. 

These initial deliveries are from the first shipment of 999 City Edition vehicles, which were shipped to the US in December last year. The version comes in both Eco and Plus trim with an EPA-rated range of 207 miles and 191 miles, respectively.

Other vehicles will continue to be delivered to customers at VinFast’s stores or through a home-delivery service.

Besides financial promotion for US consumers, VinFast also offers an impressive 10-year warranty for their vehicles and batteries, as well as mobile repair services, and 24/7 roadside assistance.

According to the website electrek.co, VF 8 City Edition is the version that VinFast exports exclusively to the US market. It integrates Advanced Driver Assistance Systems (ADAS) and smart entertainment and utility applications Smart Services. In addition, VF 8 City Edition will receive free software updates, and upgrade many other features and applications.

Brand building for farm produce exported to China needed: experts

Vietnamese producers need to pay special heed to ensuring food safety and transparency of production information; building brands and well managing growing area codes for products exported to China, said Nguyen Nhu Tiep, Director of the Agro-Forestry-Fisheries Quality Assurance Department under the Ministry of Agriculture and Rural Development (MARD).

China is now the largest importer of Vietnam's vegetables and fruits, and ranks second in importing agro-forestry-fishery products from the Southeast Asian nation. It is seen as a "huge market" for regional and global farm produce, and one of the most demanding markets with strict requirements on quality, price, brand, and distribution forms for imported goods. This requires Vietnamese exporters to ensure the quality and brand of their products to be able to earn a sustainable foothold in the market.

To maintain and promote exports to China, Vietnamese enterprises should strictly comply with the General Administration of China Customs of China (GACC)’s Decree 248 on the Registration and Administration of Overseas Producers of Imported Food, which will take effect on January 1, 2022, and Decree 249 on the Administrative Measures on Import and Export Food Safety, Tiep said.

Deputy General Director of Dong Giao Food Export JSC (DOVECO) Pham Ngoc Thanh underlined the necessity to promote and introduce products to Chinese customers through joining trade fairs in the country, saying this is the fastest way for Chinese consumers to access Vietnamese farm produce.

Thanh suggested ministries and sectors continue to create favourable conditions for Vietnamese businesses to attend trade promotion programmes for Vietnamese farm produce, especially in potential markets.

Huynh Tan Dat, Deputy Director of the MARD’s Plant Protection Department, said producers need to ensure strict compliance with instructions from production, harvesting, preliminary processing and processing as well as packaging, transportation and distribution, adding that this is a prerequisite for expanding exports.

He requested businesses, organisations and individuals to cooperate more closely with the Departments of Agriculture and Rural Development; and keep close watch on China’s new regulations.
According to Le Thanh Hoa, Director of the Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (SPS Vietnam Office), Vietnam earned over 53 billion USD from exporting agro-forestry-fishery products in 2022, including over 14 billion USD from the Chinese market.

Vietnam has exported 16 farm produce to China, including banana, durian, mangosteen, black jelly, rice bran, rice, sweet potato, watermelon, dragon fruit, mango, jackfruit, longan, lychee, rambutan, chili, and passion fruit. The MARD has been negotiating with Chinese authorities for opening the door for other products such as avocado, pomelo, pineapple, custard apple, and cardamom.

Local fuel prices inch down

The domestic retail prices of fuels were revised down at 15:00 p.m. today, March 1, according to an announcement jointly released by the ministries of Industry-Trade and Finance.

Bio-fuel E5 RON92 is now priced at VND22,420 per liter, down VND120, while the higher-grade RON95 petrol sells for VND23,320 per liter, down VND120, the local media reported.

Diesel oil costs VND20,250 per liter, falling by VND550 per liter, and kerosene is down by VND370 per liter at VND20,470.

Heavy fuel oil picked up VND300 at VND14,550 per kilogram.

During this fuel price adjustment, the two ministries decided to replenish the national fuel price stabilization fund with a fuel surcharge of VND200 for each liter of RON95 petrol sold and VND500 for each liter of diesel oil sold.

Local fuel traders are not allowed to tap the fuel price stabilization fund.

The two ministries have revised down local gasoline prices for second time in a row.

Since the start of the year, petrol prices have been adjusted seven times, with four increases and two cuts.

Tra fish, shrimp, wood exports plunge in February

Vietnam’s exports of some key items, including tra fish, shrimp, and wooden products, dropped sharply in February this year, according to the Ministry of Agriculture and Rural Development.

Wooden products brought total export revenue of US$1.61 billion in February, down nearly 35% year-on-year.

Revenue from shrimp exports decreased nearly 55% to US$251 million, and that from tra fish plunged by 64.1% to US$133 million in February this year.

Forestry exports stood at US$872.1 million, down 10.7%, while seafood fetched US$550 million, down 13.1%.

Statistics from the Ministry of Agriculture and Rural Development showed that export revenue from agricultural products reached about US$3.4 billion, up 5.7% over the same period last year.

Among those, Vietnam gained US$1.79 billion from exporting the main group of agricultural products, up 25.9%, and US$29 million from livestock exports.

February saw export growth of some items, such as tea with US$25 million, up 5.1%; vegetables and fruits, with US$592 million, up 17.8%; cassava and cassava products with US$283 million, up 32.7%; and milk and dairy products with US$16.2 million, up 10.2%.

The Ministry of Agriculture and Rural Development will focus on exploiting the international market, taking advantage of trade agreements such as the CPTPP and EVFTA, as well as supporting trademark protection for products.

Vietnamese agricultural products welcomed in Belgium

More and more people in Belgium are learning about Vietnamese agricultural products and welcoming them.

Phạm Bích Thủy, the owner of “Le Panier Asiatique” – an Asian grocery store in Brussels, said that besides Vietnamese customers, many foreigners visit her store.

She always tries to introduce Vietnamese products to the customers, offering them to take home to try first and pay later.

Many of the customers revisit her store and choose Vietnamese products because of their competitive prices and quality compared with those from other countries, Thủy said.

For the last few years, many agricultural and food products of Việt Nam are favoured by customers in Belgium such as Duy Anh rice papers, Ba cây tre (Three Bamboo) fresh vermicelli, dried phở, Vifon instant noodles, Phú Quốc fish sauce, and Cocoxim fresh coconut milk of Bến Tre Import-Export Joint Stock Company (Betrimex).

Trần Ngọc Quân, Việt Nam’s Trade Counselor in Belgium and the EU, said that the challenges for Vietnamese goods are not small. Firstly, Vietnamese goods access the Belgian market through many local importers, making Vietnamese businesses highly reliant on the importers and unable to build brands.

Secondly, while some Vietnamese enterprises were very proactive and made changes in production to serve export, others still produced first and then looked for markets.

Quân said that in that way, it’s very difficult for them to access markets like the EU which has a lot of regulations for imports.

In addition, many spices such as basil, laksa leaves, perilla, and coriander are of Vietnamese origin but purchased and exported to Europe by Thai enterprises.

Therefore, promoting the export of agricultural products, fruits, and vegetables to the Belgian market in particular and the European market in general requires more efforts from Vietnamese enterprises to improve production capacity, ensure product quality, and look for business partners. 

Construction of Nhon Trach 3 and 4 thermal power plants behind schedule

The construction of the Nhon Trach 3 and 4 thermal power plants is behind the initial schedule because of barriers to land clearance and capital mobilisation.

According to Thai Thanh Phong, deputy director of Dong Nai Department of Industry and Trade, the Ministry of Industry and Trade has yet to issue the power price framework that will be applied to the liquefied natural gas projects.

The Nhon Trach 3 and 4 power plants are set to be built in Ong Keo Industrial Park in the southern province of Dong Nai. With its favourable location and the solid infrastructure of the Southern Key Economic Zone, Dong Nai has become the focus of attention for property developers in recent years.

The projects have a total investment capital of $1.4 billion. The investor, PetroVietnam Power Corporation, was committed to ensuring sufficient capital for the projects, including 25 per cent from equity and 75 per cent from loans from export credit. $300 million will come from foreign commercial sources and around $170 million from domestic banks.

Previously, the investors targeted starting the construction of these two thermal power plants in April 2022. They expected that the first turbine would come into operation in October 2024, with the second running in April 2025. The plan was for the boiler system to be established in late 2023.

Rice export to enjoy favourable conditions in 2023

Vietnam’s rice export this year is expected to benefit from many favourable conditions, including high global demand, to reach 7 million tonnes, according to the Cong Thuong (Industry & Trade) newspaper.

The January report by the US Department of Agriculture forecast the global rice trade in 2023 will decrease about 4% from last year.

Large rice exporters are predicted to witness declines, including Argentina, Brazil, Cambodia, China, the EU, India, Laos, Malaysia, Pakistan, Paraguay, Russia, Senegal, Tanzania, Turkey, Uruguay, and the US. Among them, India and Pakistan may see the sharpest falls, down by some 2.1 million tonnes in total, due to lower output and domestic market stabilisation policies.

Climate change impacts and drought in the US, Europe, and China are posing a risk of supply shortages, the Foreign Trade Agency under the Ministry of Industry and Trade told a recent conference on rice export.

Aside from rising global demand, improved quality has also boosted importing countries’ demand for Vietnamese rice, the agency noted, expecting an export volume of 6.5 - 7 million tonnes in 2023.

Import demand in traditional markets like the Philippines and Africa will stay stable in the first half of this year as they are increasing food stockpiles, according to Chairman of the Vietnam Food Association Nguyen Ngoc Nam.

Nguyen Viet Anh, Director General of the Phuong Dong food company, said businesses are now highly optimistic, and that since 2019, the sector has no longer needed support to sell out the grain, but sometimes even run out of rice to meet demand.

Last year, Vietnam exported nearly 7.2 million tonnes of rice, gaining 3.49 billion USD.

Vietjet offers great promotions with new int’l routes on Women’s Day

In celebration of International Women's Day (March 8), Vietjet offers passengers millions of tickets priced from only 8,300 VND (0.35 USD) on its entire flight network from March 3-9.

Moreover, the budget carrier has also increased the frequency and opened many new routes connecting Da Nang to Taipei (Taiwan, China), Ho Chi Minh City to Tokyo (Japan), and Ho Chi Minh City to Hong Kong (China).

It will increase the frequency of Ho Chi Minh City-Hong Kong route from March 8 to five flights per week every Monday, Wednesday, Friday, Saturday and Sunday. The flights from Ho Chi Minh City take off at 15:10 and land in Hong Kong at 18:50 (local time). The flights from Hong Kong International Airport take off at 19:50 (local time) and land in Ho Chi Minh City at 21:30.

The flights connecting Da Nang to Taipei will operate from July 1, with a frequency of five flights per week every Tuesday, Wednesday, Friday, Saturday and Sunday. The flights from Da Nang take off at 12:00 and land in Taipei at 15:45 (local time). The flights from Taoyuan International Airport (Taipei) take off at 16:50 (local time) and land in Da Nang at 18:35.

Vietnam targets at least one tourism attraction in each locality by 2025

Vietnam is striving to, by 2025, have at least one tourism attraction in each province and city with local advantages in terms of agriculture, culture, craft villages and ecological environment.

This is one of the targets of a rural tourism development programme that will be carried out by the Ministry of Agriculture and Rural Development within the framework of a movement on building new-style rural areas in the 2021-2025 period.

Under the programme, about 50% of the rural tourism establishments will be certified to meet tourist service standards.

Also, at least 50% of the rural tourist spots are recognised to be digitised and connected to each other with digital technology. They are expected to adopt e-transactions in their operations.

All the rural destinations will be popularised.

Each local district with potential in rural tourism will have at least one model of a typical agro-rural tourism chain.

At least 70% of the owners of the rural tourism establishments will be trained in tourism management, while 80% of rural tourism workers will receive training and improve their skills. At least 50% of the rural tourism workforce will be female. Each tourist destination will have, at minimum, one staff fluent in foreign languages.

The programme underlined the need for developing a database and digital map of rural tourist attractions nationwide.

According to the Central Coordination Office on New Rural Development, the country counts 8,867 products rated as three-star or higher after four years implementing the One Commune One Product programme (OCOP). They include 80 community-based tourism products.

Dutch firms offer suggestions to HCM City to draw investment

Dutch enterprises have suggested Ho Chi Minh City improve its investment environment, develop transport infrastructure and connectivity, hold trade promotion activities, fight climate change and improve its urban living environment.

They made the suggestions during a dialogue with the city’s leaders chaired by Chairman of the municipal People’s Committee Phan Van Mai on February 28.

Chairman of the Dutch Business Association Vietnam Phuc Nguyen advised the city to accelerate administrative reforms to create favourable conditions for Dutch investors to do business there.

Dutch firms also proposed the municipal authorities deal with traffic congestion, especially on roads connecting with seaports and nearby cities and provinces; control air and noise pollution and flooding as well as develop a green and friendly environment.

Dutch Ambassador to Vietnam Kees van Baar said apart from capacities of dealing with challenges in climate change, flooding prevention, environment and wastewater treatment, Dutch enterprises have advantages in hi-tech, digital transformation in logistics, transport infrastructure, green and renewable energy.

According to the diplomat, the city needs to have sustainable planning schemes to improve living quality and better serve citizens.

Mai expressed his belief that construction of several urban railway routes will be completed before 2035. The city will focus on the development of green and circular economy, digital transformation and logistics, he said, adding that there remained room for bilateral cooperation in digital transformation.

HCM City always welcomes investors and aims to become a hub of economy, services, logistics, digital transformation and innovation, he said, therefore, the city's leaders always listen to feedback from the business community and are committed to taking practical actions to address any obstacles faced by investors, thus creating the best possible conditions for Dutch businesses to invest in the city.

The dialogue took place at a time when Vietnam and the Netherlands are celebrating the 50th founding anniversary of diplomatic ties. The Netherlands is not only an important partner of the city in climate change but also its biggest European trade partner and investor.

Last year, two-way trade between HCM City and the Netherlands hit 1.6 billion USD. The Netherlands is the fifth biggest investor in the city with 183 projects worth over 5 billion USD.

Regional automotive trade fair to open in HCM City in June

Automechanika 2023, a regional trade fair for the automotive service industry, will take place at Saigon Exhibition & Convention Centre (SECC) in Ho Chi Minh City from June 23 to 25.

More than 400 exhibitors are expected to join the event, which is co-organized by Messe Frankfurt (HK) Ltd, Chan Chao International Enterprise Group, and Yorker Exhibition Service Vietnam.

Speaking at the press conference announcing the event on February 21, Calvin Lau, director of Messe Frankfurt (HK) Ltd, said that Vietnam is in a special position in the development of electric vehicles thanks to the transformation in automobile manufacturing, electrification, and digitalization.

Opportunities are open for businesses to participate in the supply chain in Vietnam and the global automotive industry.

To accelerate the development, the Government of Vietnam has launched many initiatives to support the public and private sectors, with priorities given to investment plans and tax incentives.

Automechanika Ho Chi Minh City 2023 is expected to attract more than 400 businesses from countries including Germany, China, Singapore, Malaysia, Taiwan (China), Japan, the Republic of Korea, Thailand, and Vietnam who will display products in automobile manufacturing, automotive maintenance, accessories, customization, and connected technology.

Domestic and foreign speakers will talk about Automechanika exchange and connection, smart factories and the fourth Industrial Revolution, electrification, and digitization.

Positive goals set by livestock groups

Many large-scale livestock companies plan to implement significant projects in 2023, a year in which the sector is widely tipped to recover.

Dutch-backed De Heus Group and Vietnam’s Hung Nhon Group are eager to implement provisions for an MoU that the two parties signed in December. Accordingly, in 2023 they are aiming to accelerate cooperation to develop projects in agriculture such as livestock and poultry farming as well as animal feed production, and set up high-tech agricultural production sites based on the Dutch cooperative model in Vietnam.

Hung Nhon will be responsible for investing in large modern livestock farms, while its strategic partner will provide international-standard wine and poultry genetics.

In the short term, Hung Nhon and De Heus will expand its complex high-tech agricultural models in the Central Highlands provinces of Dak Nong and Kon Tum, following three existing complexes in the nearby provinces of Gia Lai, Dak Lak, and Lam Dong.

By 2030, the two parties target achieving a capacity of 7,500 gilts in the Central Highlands region, 30,000 sows in the southeast and south-central regions, and 25 million broiler chickens in the southern province of Tay Ninh.

Vu Manh Hung, chairman of the board at Hung Nhon, said that though the agricultural sector always faces risks from weather and diseases, the group still saw large room for growth. During the past 10 years, the sector’s average growth was between 4 and 6 per cent per annum.

Meanwhile, Vietnamese conglomerate Thaco Group has released specific targets its Thaco Agri arm. The group will spend $356.5 million to develop Thaco Agri, which expects more to have more than 100,000 cows and 215,000 pigs by the end of this year. It also expects $422.5 million in revenues in 2023. Thaco Agri has formed integrated and circular agricultural production complexes, including fruit tree cultivation, animal husbandry, and processing.

Ministry of Agriculture and Rural Development (MARD) statistics have showed that in January, livestock production reached $30 million, up 14.5 per cent on-year.

In terms of export value, livestock is a rare sector seeing growth in the first month of 2023. Meanwhile, the agro-forestry-fishery sector’s export value reached $3.73 billion, down 23.6 per cent. Of which, the export value of main agricultural products is $1.76 billion, seafood $600 million, and forest products $1.19 billion, a decrease of 12.7, 30.9, and 30 per cent, respectively.

In 2023, the livestock sector is expected to continue to increase in production value by 5.5-6 per cent. The total output of live animals for meat is forecast to reach about 7-7.5 million tonnes.

Analysts at VNDirect Securities believed that difficulties for pork producers will ease this year, thanks to the forecasted pork price increase of 5 per cent when demand for eating out recovers. In addition, grain prices are likely to fall as exporting countries increase supplies, Ukraine’s grain goods can be shipped again after the agreement to end the blockade of its ports, and fertiliser prices cool.

According to VNDirect, although Vietnam’s animal feed prices are trailing world agricultural prices, feed costs will still decrease gradually in 2023.

Although an outbreak of African swine fever has yet to fully controlled on household farms, it will not affect the total pork supply. This outbreak is not as severe as past versions, and vaccination deployment is expected to begin in 2023 after more trials.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said as of January, more than 300,000 ASF vaccine doses were being used for conducting narrow-scope tests. Vaccinated pigs have met immunity criteria and no incidents have yet been reported. The MARD expects to start vaccinating livestock on a larger scale by July.

Tien assigned the Department of Animal Health to coordinate with the production unit to closely monitor several groups of problems related to the vaccine to ensure a stable, immune-responsive, and sterile vaccine. This month, Tien also required the department to invite the agricultural company Dabaco to report on the production process of the ASF vaccine, which failed to debut last year as hoped.

Int’l trade fair for construction, mining, transport to take place in April

The Vietnam International Trade Fair for Construction, Mining & Transport - Machinery, Equipment, Technology, Vehicle & Material (Contech Vietnam 2023) will take place in Hanoi from April 21-24, the organisers announced on February 21.

The fair is expected to draw the participation of exhibitors and brands from Germany, Spain, Japan, Sweden, the US, the Republic of Korea, China, Taiwan (China), Thailand, Australia, Singapore and Vietnam.

Le Anh Duc, a representative of the organisers, said that the event will not only offer a venue for businesses to introduce and promote their brands, but also create conditions for investors and businessmen to exchange information, seek partners, and boost trade promotion.

On the sidelines of the fair, there are several seminars and business matching activities.

Localities chastised for lethargic public spending

Many localities in Vietnam have faced government criticism for their slow pace in public spending, with large sums still to be spent, despite several hurdles remaining in the way of doing so.

Numerous ministries, agencies, and localities were named and shamed by Prime Minister Pham Minh Chinh at last week’s national conference on accelerating public investment in 2023 due to the weak disbursement of public investment in 2022. The PM reiterated the responsibilities of the leaders involved at all levels.

Chairman of Ho Chi Minh City People’s Committee Phan Van Mai pointed out several reasons why the city’s public investment spending only stood at 71 per cent of the allocation in 2022 ($1.6 billion in total).

“They show poor performance in implementing project procedures, especially using official development assistance (ODA), construction procedures, capital allocation, land clearance, and material prices increase. But the most important aspect is about the responsibility of investors in preparing documents, assessing problems, and proactively removing difficulties,” Mai said.

Chairman of Gia Lai People’s Committee Truong Hai Long said that in 2022, the province disbursed 76.3 per cent of its allocation ($143.5 million), lower than the average national rate. This was chiefly due to poor project preparation, leading many localities to receive government criticism for their slow spending.

“Some projects struggle with planning adjustments, and the ground clearance for works was not completely resolved, leading to slow disbursement and construction progress,” said Long.

Recalculating base prices and retailers' bonus key to stabilise fuel market: MPI
     
Recalculating base fuel retail prices and granting retailers a minimum bonus were among a number of suggestions made by the Ministry of Planning and Investment (MPI) as measures to put a stop to fuel retail disruption, as seen last year and earlier this year, across the country.

"The underlying cause behind disruptions in the domestic fuel market in recent months could be attributed to an inadequate calculation of the base fuel retail prices, which have resulted in retailers voicing concerns over prolonged financial losses and hurt their incentives to push sales," said the ministry in a public statement.

The ministry advocated for the current fuel management system but stressed the importance of implementing a revised calculation of retail prices, which should cover most, if not all, costs incurred by retailers' operations.

Meanwhile, reviews must be conducted on fees shouldered by retailers and how often they must pay them. The goal, according to the ministry, is to reach a balance among all of the sector's stakeholders.

In addition, the ministry supported establishing a minimum bonus regime for retailers, to serve as an incentive for sales, which aims at letting the market sort out supply and demand issues and to lessen the central government's role in it.

Retailers bear most of the responsibility in the distribution and quality of fuel and should be held accountable in the events of accidents and malfeasance, said the ministry. Having multiple suppliers, given the nature of the merchandise, will likely make it difficult for governmental agencies to enforce quality control measures.

"However, having only one supplier may also lead to difficulties in ensuring supply on retailers' part, especially during supply shortage as seen in previous months," said the ministry.

MPI, therefore, suggested that the Ministry of Industry and Trade develop measures to allow retailers to purchase from multiple suppliers while implementing stronger product origin regulations.

Regarding the country's fuel stabilisation fund, the MPI supported the continuation of the fund but stressed the central government should only intervene in the event fuel price fluctuate enormously within a 7-10 per cent margin.

According to the General Department of Vietnam Customs, the Southeast Asian country imported more than 1 million cubic metres of fuel in January alone, a 9 per cent increase compared to December 2022.

Imported fuel's average price was estimated at US$889 per cubic metre in January, a $17 hike from December 2022 and a 21 per cent increase from the same period last year.

The country imported nearly 9 million cubic metres throughout 2022, paying $9 billion, a 28 per cent increase in quantity and a 220 per cent increase in value compared to the year 2021. The average fuel price for 2022 was estimated at $1,007 per cubic metre, a 67 per cent increase from the same figure of the previous year.

Localities slowly approve investment of four key transport projects

The Ministry of Transport said that the investment policy of some component projects under four key transport projects of localities has not been approved yet causing the lateness of the whole projects' progress.

Of these, the Khanh Hoa – Buon Ma Thuot Expressway Project was required to complete the approval of the investment policy on January 20 of 2023. However, the investment policy of its component projects has not been approved so far.

The main reason is that the second component project travels through mountainous and rocky areas with a high risk of depression and landslide and the total investment is expected to lack around VND900 billion (US$38 million). Therefore, the Ministry of Transport is working with the two provinces of Khanh Hoa and Dak Lak to balance and adjust the total investment without exceeding the approved investment benchmark.

As for the Ring Road No.3 project in Ho Chi Minh City, the province of Dong Nai has not approved its component projects managed by the locality due to slow implementation on submitting the environmental impact report. As for Chau Doc – Can Tho – Soc Trang Expressway Project, the province of An Giang has not approved the first component project due to prolonged assessment.

The Ministry of Transport required the People’s Committee of An Giang to complete the project approval in February 2023.

As for the Ring Road No.4 project in the capital city of Hanoi, the approval of component projects of parallel roads, compensation and resettlement have not been implemented in the localities of Hung Yen, Bac Ninh and Hanoi.

The Ministry of Transport consulted the Government on directing relevant ministries, agencies, units and localities to soon complete the investment approval to implement the projects as scheduled.

French groups keen to back green schemes

Sustainable green development and expanding investment links between France and Vietnam are being highlighted as the two countries celebrate the 50th anniversary of diplomatic relations and 10 years of strategic partnership this year.

Rémy Rioux, CEO of the French Development Agency (AFD), last week came to Vietnam to discuss the energy transition here. “Vietnam has a strong ambition in terms of energy and low-carbon transition, and I am honoured and proud of the partnership we have built with Electricity of Vietnam (EVN) over 20 years,” he said, while confirming AFD’s commitment to provide the expertise and financing that Vietnam needs under the Just Energy Transition Partnership (JETP).

“The experience of Vietnam, EVN, and its public banks will be useful in preparing for a new financial pact to be announced by the President of France in Paris in June,” he added.

The AFD has been operating in Vietnam since 1994 and has financed almost 100 projects for a total of €2.3 billion ($2.44 billion) in various sectors, including energy, transport, infrastructure, and agriculture.

The JETP will mobilise an initial $15.5 billion of public and private finance over the next 3-5 years to support Vietnam’s green transition. Public financial contributions, including those of the AFD, will be made available to the tune of $7.75 billion.

Vietnam has promised to expand renewable energy with measurable goals, limit the use of fossil fuels, and reduce annual emissions from the electricity sector by 30 per cent.

Besides the public sector, the surge in French business investment in Vietnam indicates a positive sign in a brightening outlook for the domestic economy. Energy company GreenYellow in November successfully acquired the domestic subsidiary of Qair – a French independent renewable energy producer – as well as 70 per cent stake in Binh Dinh solar farm, a 49.5MWp asset on Vietnam’s central coast. The acquisition highlights its commitment in the Vietnam and Southeast Asian market, where GreenYellow operates more than 250MWp of renewable energy projects.

The following month, CMA CGM Air Cargo, the cargo airline division of the CMA CGM shipping group, was reportedly seeking a flight licence in Vietnam. The French corporation has invested in Vietnam since 1994 through its joint-venture partnership with Sowatco and Mitsui on the VICT Terminal in Ho Chi Minh City. Patric Bergamini, vice president of business development at CMA CGM, emphasised that the company was “dedicated to helping Vietnam’s economic growth and providing logistical solutions”.

According to the France-Vietnam Chamber of Commerce and Industry (CCI France Vietnam), Vietnam is an attractive business environment with a consistent track record of high performing economic and market growth, as well as ample workforce of young and skilled labourers.

In January, French Trade Minister Olivier Becht told Nikkei Asia that the country would encourage businesses to spread their operational bases to Southeast Asia, including Vietnam, in an effort to reduce their supply chain’s exposure to China.

Becht proposed moving semiconductor and component manufacturing to ASEAN and several African nations, which he considers to be geopolitically stable, as well as Europe. Specifically, he wants to persuade “businesses in important sectors like semiconductors and medicines to relocate their manufacturing facilities and broaden their pool of vendors”.

As of January 20, the newly-registered capital, capital contributions, and capital from stake acquisitions involving French investments reached $3.77 billion for 662 valid projects, according to Vietnam’s Ministry of Planning and Investment.

Nicolas Warnery, French ambassador to Vietnam, told VIR that the milestone anniversaries of France-Vietnam relations this year is a good opportunity to look back and assess what the two countries have accomplished in trade and investment and reflect on ways to further develop our economic exchanges.

Nearly 500 executives will be at the event to connect and exchange their thoughts. There will be some major conferences and workshops on topics such as the energy transition, corporate social responsibility, digital healthcare disruption, and new payment and financing platforms, among others.

Numerous French entrepreneurs and corporations have set up successful companies in Vietnam over the years, including Vergers du Mekong, Annam Gourmet, Aden Services, Saint Honoré, L’Oreal, and Sanofi.

Vietnam and Japan cooperate for a net-zero carbon future

Japan is promoting green growth cooperation with Vietnam, with low-carbon value chains considered one of the leading priorities.

Hau Giang Biomass Energy, a joint venture of Erex Co., Ltd., from Japan, Power Engineering Consulting 2, and Son My Renewable Energy, is accelerating the construction of a biomass power plant in the Mekong Delta province of Hau Giang after a groundbreaking ceremony held in December.

The project is financed through a joint credit mechanism of the Japanese government and is expected to be put into commercial operation by the end of 2024 with an annual generation of about 125 GWh.

Like its Japan-based factories, the plant will employ steam condensing turbine technology using biomass materials, mainly rice husks, which are carbon-neutral and environmentally friendly.

Emphasising the role of large-scale ventures in helping Vietnam to reach carbon neutrality by 2050, Kazuo Kusakabe, chief representative of Toshiba Asia-Pacific in Hanoi, said that climate change is a challenge for the entire world, and to achieve the goal of being carbon-neutral by 2050, Vietnam may need an investment of up to $600 billion.

At the forum, experts from the CIEM said that the room for cooperation on green growth between the two countries remains large, particularly in electrical equipment, wooden architecture, wind and solar power, biomass power, organic aquaculture, and farming.

Experts from CIEM also suggested the two countries’ cooperation focuses on improving institutional capacity, regulations, and policies related to green growth and developing sustainable infrastructure in Vietnam. In addition, they need to promote low-carbon and-emission value chains and foster the development of international treaties, rules, and standards related to green growth.

In the past, the two nations’ governments and related agencies have implemented action plans to support Vietnam to reach its low carbon goals. At a meeting with Prime Minister Pham Minh Chinh in early 2022, Japanese Ambassador to Vietnam Yamada Takio said that Japan would boost all-around comprehensive cooperation from policy and technology to financial issues with Vietnam.

In November 2021, Minister of Natural Resources and Environment Tran Hong Ha and Japanese Minister of the Environment Yamaguchi Tsuyoshi signed an MoU on the joint credit mechanism. Under the deal, the Japanese party will assist Vietnam’s purchase of equipment with advanced Japanese tech, thus contributing to the net carbon economy.

Currently, there are over 40 projects in Vietnam approved through the mechanism. The building of a waste-to-energy plant in the northern province of Bac Ninh, implemented by T&J Green Energy, is one such example. Besides this, the Japan International Cooperation Agency and the Japan Science and Technology Agency will implement a scheme on sci-tech for natural rubber, in cooperation with the Hanoi University of Science and Technology and the Nagaoka University of Technology in Japan.

The initiative will run until 2027 and will focus on development of advanced tech to establish large-scale production for protein-free natural rubber in Vietnam. New technologies for biodegradation of rubber products, low greenhouse gases, and rubber production wastewater systems will also be developed.

Bac Giang puts science and technology to the test in agricultural production

The northern province of Bac Giang is stepping up the application of science and technology in agricultural production to improve its value and increase farmers’ income.

The province hopes that its quality rice area will reach 55,000 hectares, and the output will be nearly 357,500 tonnes, meeting both domestic consumption and export demands.

The total area of fruit trees will be about 55,000 hectares, with focus on growing lychee, citrus (orange, pomelo), longan, custard apple, pineapple and guava following VietGAP and GlobalGAP standards.

By 2030, the province will also expand its vegetable production area to 28,000 hectares, which can produce an output of about 554,400 tonnes. Of the total, the area of safe vegetables grown according to VietGAP standards will be 12,500 hectares, with an output of around 272,500 tonnes.

At the same time, the locality will maintain the breeding of 1-1.2 million pigs, and 22-25 million poultry.

To that end, Bac Giang will promote the transfer and application of scientific and technological advances in agricultural, forestry and fishery production. Accordingly, the province focuses on applying good agricultural practices (VietGAP, GlobalGAP), clean production technology and biotechnology; develop organic agriculture; ensure food safety and hygiene; and protect the environment.

The locality will encourage the building of ecological and environment-friendly agricultural models such as organic agriculture and closed-loop circular agriculture.

In addition, Bac Giang will strengthen mechanisation in production, harvesting, preservation and processing to improve the productivity, quality and competitiveness of agricultural products. The focus is to connect with other sectors and fields to form smart agricultural production adaptive to climate change and diseases.

Since 2021, Bac Giang has paid attention to applying science and technology to agricultural production. The province has researched and piloted the plantation of new pure rice species with high yield and good quality suitable to the growing areas and ecology of the province. The idea behind the move is to select two species with the best yield and quality for both domestic consumption and export.

In addition, the province has transferred, received and mastered 14 techniques for growing vegetables. Notably, it has successfully built a model of growing vegetables in simple net houses following VietGAP standards. It has also established a product quality safety monitoring system, issued VietGAP certificate for safe vegetables, and built a model to preserve vegetables using environmental control technology, with a scale of 100-200 tonnes per store.

Bac Giang has also developed animal husbandry by expanding the application of high technologies, developing environmentally friendly farms, and ensuring disease safety and traceability.

The provincial science and technology sector has consulted the provincial People's Committee and the Ministry of Science and Technology to out scientific and technological research and application tasks at the national and provincial levels on the conservation and development of precious livestock breeds with high economic value. These include the six-claw chicken in Son Dong; snakehead in Hiep Hoa; trionychidae turtle in Viet Yen district, Lang Giang district, Bac Giang city, and white horse in Luc Ngan.

The province also boasts 80,000 hectares of production forests. Bac Giang will promote the mechanisation and application of science and technology; improve productivity, quality and efficiency of production forests in the direction of optimising the production system, and the value chain of forest products.

Bac Giang will invest in intensive farming and apply techniques to improve the productivity and quality of forests, and plant new varieties with high yield and quality.

In 2022, the production value of the agriculture, forestry and fishery sector in Bac Giang province increased by 2.1% compared to the previous year to reach nearly 37.70 trillion VND.

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