Deputy Prime Minister Tran Hong Ha has directed the Ministry of Transport to expedite the investor selection process for component 4 of the Long Thanh International Airport project in Dong Nai Province.

Component 4 consists of freight terminal, aviation logistics section, aircraft maintenance section, catering service, and operational centers of air carriers.

The Long Thanh airport project has four components. ACV has been assigned to develop the passenger terminal and runway under component 3, while Vietnam Air Traffic Management Corporation (VATM) is in charge of component 2, which includes the air control tower and aircraft operation facilities.

In his directive to the Ministry of Transport, Deputy PM Ha emphasized the importance of adhering to orders and procedures for contractor selection.

The investor selection process for component 4 has grappled with delays.

Covering 5,000 hectares, the Long Thanh International Airport project requires a total of VND336,630 billion for three phases of development. The first phase, set to be completed in 2026, will be able to handle 25 million passengers and accommodate 1.2 million tons of cargo annually.

Upon completion of the entire project, Long Thanh will have four runways, four passenger terminals, and auxiliary facilities, increasing its handling capacity to 100 million passengers and five million tons of cargo per year.

Dong Nai holds meeting with FDI enterprises

The People’s Committee of the southern province of Dong Nai on March 28 held a meeting with foreign-invested (FDI) enterprises in the locality with the aim of removing obstacles for their operations.

At the meeting, FDI enterprises talked about problems they encountered in expanding production, installing rooftop solar power systems, procedures for upgrading projects, accommodations for experts and tax-related procedures.

A representative from Terumo BCT Vietnam Co.Ltd in Long Duc Industrial Park said the company, along with many other businesses in Long Duc Industrial Park, wants to install rooftop solar power systems. However, it did not receive support from the park, making the work difficult.

He noted that the Vietnamese Government and Dong Nai province target reducing carbon emissions and using clean energy.

According to businesses in Amata and Song May Industrial Parks, in recent years, many firms have specific plans to build additional workshop facilities, and the functional departments of the province have committed to allocating land for business expansion but it has not yet been implemented. They suggested local administration give them exact timing of land handover, thus helping enterprises come up with appropriate production and business plans.

Fielding queries from firms at the meeting, Nguyen Thi Hoang, Vice Chairwoman of the provincial People’s Committee said previously, Dong Nai allowed experts to reside within production and business premises. However, legal regulations have been changed. The province has set a deadline for all experts to reside outside by the end of 2024.

She acknowledged that accommodation near industrial parks is an issue that Dong Nai is coping with as it fails to meet the demand. Currently, the province is reviewing the lodging situation for experts and it will continue to extend residence permits for experts residing in separate premises within business facilities if necessary.

She went on to say that Dong Nai will organise a workshop to assess the specific impacts of the new Land Law on businesses, thereby devising policies and solutions to support them in the land leasing process.

According to the province's Management Board of Industrial Parks, the province is facing numerous difficulties related to land clearance in Amata and Song May Industrial Parks. However, relevant authorities will strive to resolve obstacles and promptly allocate land for business expansion. Regarding the installation of rooftop solar energy, the board has granted permits to 28 businesses and is currently processing applications for others.

The province is currently home to nearly 1,560 FDI valid projects with total capital of more than 34 billion USD.  Since the beginning of this year, it has attracted over 570 million USD of FDI capital, up 13% year on year./.

Vietnam explores roadmap for sustainable energy transition

The United Nations Development Programme (UNDP) in Vietnam on March 28 convened a technical meeting focusing on a roadmap for transition from coal-fired power generation to sustainable alternatives.

The meeting aimed to provide the latest information about policies and technologies for the transition process, the best available techniques; costs, benefits and potential impacts of the shift while discussing options for decommissioning, repurposing and transforming various types of coal-fired power plants.

It facilitated connections between existing and potential investors in the energy sector, along with financial institutions, to explore future investment opportunities in the transition process.

The event gathered key stakeholders from diverse sectors, including Vietnamese agencies, members of the International Partners Group (IPG) and the Glasgow Financial Alliance for Net Zero (GFANZ), coal-fired power plants, financial institutions, banks, investors, development partners and non-governmental organisations.

Discussions revolved around the outcomes of a comprehensive case study which presents a feasible transition roadmap for Vietnam's major coal-fired power plants, specifically Pha Lai, Cao Ngan, and Van Phong plants.

UNDP Resident Representative in Vietnam Ramla Khalidi highlighted the importance of ensuring a fair and comprehensive transition process, and coordinated efforts among stakeholders to minimise challenges, especially those faced by workers directly or indirectly involved in coal exploitation in remote and mountainous areas./.

Breakthrough policies needed to ensure sustainable development: advisory council

Experts gave forecasts on impacts of the global economy on Vietnam and exchanged views on how to manage the macro economy and the domestic gold market at a meeting of the National Financial and Monetary Policy Advisory Council on March 28.

They held that the monetary and fiscal policies employed over the past time have helped achieve set objectives and enabled the national economy to withstand shocks that seemed to be insurmountable.

The economy, however, is expected to face quite a few difficulties in the time ahead, which calls for breakthrough policies, especially those that would fully tap resources, boost consumption and private investment, and manage the gold market, to ensure stable development, the experts noted.

Economist Le Xuan Nghia pointed to the weak recovery of the economy, especially demand, and the strong reduction in investment by the private sector. He suggested budget incentives for businesses and the utilisation of fiscal policies to serve economic recovery in the time ahead.

The participating experts also voiced approval for the proposal to abolish the State monopoly on gold bars, and grant licences to businesses eligible for the production.

Deputy Governor of the State Bank of Vietnam (SBV) Pham Thanh Ha briefed the participants on the central bank’s efforts to manage monetary policies and banking operations, saying it is implementing credit programmes and policies for prioritised fields and driving forces, such as the 12 trillion VND (484.21 million USD) credit package.

He underlined the problems facing the economy, particularly unfavourable developments and unpredictable prospects of the world economy, rising bad debts and low mobilisation of middle- and long-term capital of credit organisations.  

Deputy Prime Minister Le Minh Khai, who is also chairman of the council, pointed to challenges like the pressure of the US dollar appreciation trend on Vietnam’s foreign exchange market, and weak capital absorption by businesses and people, along with difficulties in the real estate market.

Against the backdrop, he suggested prioritising the use of fiscal policies, spurring public investment, supporting trade promotion, and expanding the market, with the support of monetary policies./.

Establishment of Vietnamese IT business network in Japan promoted

The Vietnamese Embassy in Japan on March 28 held a get-together of Vietnamese IT enterprises in the East Asian country, providing an opportunity for them to exchange ideas, seek collaboration opportunities and discuss measures to further develop their community.

In his opening remarks, Ambassador Pham Quang Hieu stated that the IT sector is one of the industries with Vietnamese firms investing in Japan at the earliest time and gaining the most success among the Vietnamese business community.

He said Vietnamese IT companies have become important partners of major Japanese corporations, with many expanding their operations and establishing branches in various cities across Japan, accompanied by a growing workforce.

The diplomat noted that with Japan's projected increasing demand for IT services, Vietnamese businesses have an opportunity to continue their development and further engage in this sector, thereby making more significant contributions to the economic cooperation between the two countries, particularly in digital transformation.

Participating in the conference, leaders of prominent Vietnamese IT firms such as FPT, Rikkei, VTI, and Hachix, introduced notable collaborative projects between their companies and Japanese partners. They also exchanged experiences in developing businesses in Japan and explored opportunities to connect with demand from Vietnam.

Moreover, they discussed measures to promote the formation of a Vietnamese IT business community in Japan in the future, which is expected to be effective and collaborative for substantial growth./.

Ho Chi Minh City explores green growth with German partners

A Germany – Vietnam business forum, themed “Collaborative pathways to green growth in Ho Chi Minh City”, took place in Ho Chi Minh City on March 28.

The event was co-hosted by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC), the German Business Association (GBA) in Ho Chi Minh City, and the United Overseas Bank (UOB).

Speaking at the event, ITPC Deputy Director of ITPC Cao Thi Phi Van highlighted Ho Chi Minh City as a vibrant urban area and an economic, cultural and technological hub of Vietnam, contributing 25% to the national budget.

Ho Chi Minh City is home to more than 400,000 active businesses, including nearly 15,000 foreign-invested ones, she said, adding that the city has completed a framework strategy for green growth until 2030, with a vision to 2050, which places citizens and businesses at the centre.

She said the event provides a platform to update European investors, especially those from Germany, about local investment environment and new development mechanisms, thereby tapping investment cooperation potential between Ho Chi Minh City, neighbouring localities and European countries, especially in the fields of green growth, sustainable development and innovation.

GBA Chairman Alexander Ziehe suggested that Vietnam and Ho Chi Minh City in particular should improve policies on finance, administrative procedures, infrastructure, digitalisation, and foreign labour.

Meanwhile, Chairman of the EuroCham Green Growth Sector Subcommittee Erick Contreras advised Vietnam and Ho Chi Minh City to prioritise transparent mechanisms to stimulate investment in energy efficiency, including reducing subsidies for electricity.

He also called for timely and coordinated approaches to maximise the integration of renewable energy sources into the national grid, adding that the city also needs to prioritise the use of eco-friendly construction materials and recycling while building clear urban planning strategies that encompass not only green infrastructure but also water, waste and transportation management./.

Vietnamese firms updated on Algerian market

The Trade Office of Vietnam in Algeria held an online consulting session on export to and investment in the North African country for Vietnamese businesses on March 27.

The 42 participating companies operate in such fields as agro-forestry-fishery export and import, food, beverage, rubber, logistics, international transportation, packaging, printing, pharmaceutical, furniture, training equipment, and nanotechnology.

The office updated them about Algeria’s economic situation, trade and investment policies, the two countries’ relations, bilateral export and import, along with investment and labour partnerships.

It also mentioned potential products for export to Algeria, advantages and difficulties when entering this market, the local business culture, payment methods, noteworthy points about partner search and verification, and ways for resolving disputes, among others.

An office representative also fielded businesses’ questions about risk prevention measures and authorities’ assistance for companies in seeking partners.

The Trade Office also introduced some coming business matching events in Algeria, including the International Food Industry Exhibition (Djazagro) in April, the Algiers International Fair (FIA) in June, the International Fair of Wood, Woodworking, Equipment and Technologies (Algeria Woodtech) in September, and the International Fair of Textile, Apparel, Leather & Equipment (TexStyle-Expo) in November, and invited them to attend.

Algeria, the fourth largest economy in Africa, has demand for the products that are also strengths of Vietnam, especially agricultural ones like raw coffee, peppercorn, cashew nut, copra, and freshwater aquatic products, according to the Trade Office.

Data of the Algerian customs agency show that trade turnover between the two countries stood at about 300 million USD in 2023, surging 68% year on year./.

Three-month FDI inflow into Vietnam up 13.4%

Vietnam had attracted 6.17 billion USD in foreign direct investment (FDI) as of March 20, a year-on-year rise of 13.4%, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Specifically, in the period, 644 new projects with total registered capital of 4.77 billion USD were granted investment certificates, up 23.4% in the number of projects, and 57.9% in value year-on-year.

A total of 934.6 million USD was registered to be added to 248 existing projects and 466.2 million USD earmarked for stake purchase and capital contribution.

The disbursed foreign investment rose by 7.1% in the first quarter to reach 4.63 billion USD, a signal that the disbursement will continue the positive trend, the agency said.

Foreign investors poured capital into 17 out of 21 economic sectors, among which, the manufacturing and processing industry took the lead with total registered capital of 3.93 billion USD, a slight decrease of 1.3% from the same period last year.

The real estate sector came second with total registered capital of 1.58 billion USD, 2.1 times higher than the figure of the same period last year, followed by the wholesale and retail industry and science and technology with investment of 224.8 million USD and 190.2 million USD, respectively.

The foreign investment influx came from 62 countries and territories. Singapore was the biggest investor in Vietnam in the period with total registered capital of over 2.55 billion USD, up by 51.3%, followed by Hong Kong (China) with 1.05 billion USD, 2.3 times higher.

The capital city of Hanoi was the top FDI destination with an influx of 970.8 million USD, rising by 6.1 times over the same period last year, followed by northern Bac Ninh province with 745.2 million USD./.

An Giang province exports first batch of acacia mangoes to RoK

The Mekong Delta province of An Giang on March 27 exported 18 tonnes of acacia mangoes to the Republic of Korea (RoK).

This was the first batch of mangoes exported to the RoK under a contract signed between Long Binh Agriculture Cooperative in An Phu district and Hoang Phat Fruit Ltd. Co.

Chairman of the An Phu district People’s Committee Trang Cong Cuong said that it took local authorities and farmers more than 10 years to open the doors for local mangoes to demanding markets like the RoK.

The official emphasised that the district will increase support for enterprises and farmers to build stable material areas, develop sustainable value chains, and accelerate the issuance of codes of remaining mango growing areas to boost exports while coordinating with fruit exporting companies to survey other mango orchards to sign export contracts to choosy markets.

An Giang province has more than 12,000 ha of mango, of which An Phu district accounts for 1,860 ha. The district has over 354 ha of mango farming in line with VietGAP standards in Khanh An and Phu Huu communes. The district has issued 61 area codes for planting acacia mangoes for export to New Zealand, the US, the RoK, Japan, Australia and China./

Vietnam - Japan joint initiative in new era launched

A meeting was held in Hanoi on March 27 to launch the first phase of the Vietnam - Japan joint initiative in the new era.

In his remarks, Vietnamese Minister of Planning and Investment Nguyen Chi Dung said the Vietnam - Japan joint initiative, which began in April 2003, is special cooperation between the two governments.

Via the establishment of a policy dialogue forum between Japanese investors and related Vietnamese ministries and sectors, it has contributed to building a transparent and conductive business climate in the Southeast Asian nation, and offered policy recommendations as reference serving the law and policy refinement processes by local agencies.

Japanese Ambassador to Vietnam Yamada Takio said after two decades, the initiative completed eight phases, with 84% of the workload finished on time, giving a boost to foreign capital inflows in Vietnam, particularly from Japan.

The Vietnam - Japan joint initiative in the new era consists of five major groups of issues. They involve the promotion of the Asia Zero Emission Community (AZEC), green transition, innovation, and digital transformation, the strengthening of the supply chain, the training of high-quality IT, AI, and semiconductor human resources, and the reform of mechanisms to improve the business climate.

Participating Vietnamese and Japanese delegates agreed that the first phase will last for 19 months, with a mid-term review meeting slated for December this year and a summit to assess the entire process in October 2025.

The sides pledged cooperative efforts and active implementation of commitments in the action plan to meet the set goals, for mutual prosperity of the Vietnamese and Japanese business communities and the enhancement of the two countries’ relations.

As of February 20, Japanese investors had channeled 74.3 billion USD into 5,288 projects in Vietnam. In the first two months of 2024, their registered investment amounted to 422.4 million USD, soaring by 290% year-on-year./.

Vinhomes plans to raise up to VND10 trillion through bond sales

Vinhomes JSC (HOSE: VHM) has announced to launch multiple bond issues to raise up to VND10 trillion through public offering or private placement.

The non-convertible bonds, without warrants or mortgages, will come with a term of 24 to 36 months and a face value of VND100,000 for public offerings or VND100 million per bond for private placements. These bonds are set to be issued in the third quarter of this year and will carry a fixed coupon rate.

While the specific coupon rates and the purpose of the bond issues have not been disclosed, Vinhomes said that the bonds will enjoy equal payment priority alongside other unsecured obligations, ensuring equitable rights and benefits for bondholders.

Vinhomes put its bond balance in 2023 at VND15.3 trillion, up by 57% over the previous year. Over VND4.4 trillion worth of these bonds will fall due this year.

Vinhomes, the real estate arm of Vingroup JSC, is involved in various large-scale urban projects, including Vinhomes Ocean Parks I, II and III, and Vinhomes Grand Park.

Vinhomes’ 2023 financial report put its total assets at VND447 trillion, up by 24% against 2022.

Origin rules must be tightened to benefit from global trade

Vietnam is facing some tough challenges, including in terms of rule of origin, in taking advantage of incentives from a regional free trade deal, with a continued trade deficit being recorded.

According to a report assessing how the Regional Comprehensive Economic Partnership (RCEP) has impacted on the Vietnamese economy, released this month by the Central Institute for Economic Management (CIEM), while some Vietnamese businesses have taken advantage of incentives in free trade agreements (FTA) and the RCEP in particular, it is not that significant, and some progress has even reversed in the 2019-2022 period.

“Businesses will eventually have to face numerous issues in making the most of incentives from the RCEP,” the report stated.

Inked in November 2020 by 15 countries, the RCEP began taking effect in January 2022. According to the CIEM, the RCEP may increase Vietnam’s trade deficit.

“There may be an increase in pressure for the domestic manufacturing industries as goods from regional markets enter Vietnam at lower import tariff rates. […] In fact, pre-2020 trade deficit figures with RCEP economies reflected this concern (see box),” the CIEM noted.

Figures from the General Department of Vietnam Customs showed that Vietnam’s total export and import turnover with RCEP markets has been on a downward trend. Its total export and import value from and to these markets in its total trade value increased from 45.7 per cent in 2012 to 44.2 per cent in 2018, before declining to 39.5 per cent in 2022. Figures for 2023 are not yet available.

Vietnam recorded a trade deficit of $13.6 billion in 2022 and $8.3 billion last year with ASEAN member states. In 2022, it did so with RCEP partners at $118.9 billion.

Under the RCEP, member countries committed to providing duty-free access to goods that represent 92 per cent of tariff lines.

The United Nations Conference on Trade and Development’s (UNCTAD) analysis indicates that Japan would benefit the most from RCEP tariff concessions, largely because of trade diversion effects. The country’s exports are expected to rise by about $20 billion, an increase equivalent to about 5.5 per cent relative to its exports to RCEP members in 2019.

The UNCTAD report also finds substantial positive effects for the exports of most other economies, including Australia, China, South Korea, and New Zealand. On the other hand, calculations show RCEP tariff concessions may end up lowering exports for Cambodia, Indonesia, the Philippines, and Vietnam.

This would stem primarily from the negative trade diversion effects, as some exports of these economies are expected to be diverted to the advantage of other RCEP members because of differences in the magnitude of tariff concessions.

“For example, some of the imports of China from Vietnam will be replaced by imports from Japan because of the stronger tariff liberalisation between China and Japan,” the UNCTAD said.

According to experts, a big challenge for ASEAN businesses in general and for Vietnam’s in particular is that the RCEP could create a risk of trade diversion.

Meanwhile, the export structure of these industries in Vietnam is similar to ASEAN countries and China, and Vietnam’s export similarity with South Korea is also increasing.

“Thus, the competitive pressure between Vietnam and RCEP countries may increase. Additionally, these countries, including China, also issue new, strict regulations with higher standards, affecting the penetration of imported goods including those from Vietnam,” the CIEM said.

According to Vietnam’s Ministry of Industry and Trade, studies have revealed that the main cause behind Vietnam’s trade deficit with RCEP markets is that Vietnamese businesses fail to clearly understand the criteria and conditions for their exported goods to receive incentives.

At present, so as to enjoy incentives under FTAs, exports must ensure rules of origin through dedicated certificates.

“However, many businesses encounter difficulties proving the origin rate according to regulations due to not having collected enough certificates when purchasing input materials for production and business, and therefore they do not enjoy preferential tax rates,” the CIEM stated.

In fact, many Vietnamese production chains of many goods still depend on it raw material supply - such as electronic products, textiles, footwear, and processed foods - from many RCEP countries such as China and South Korea.

For example, in the textile and garment production chain, 80 per cent of raw materials must be imported from abroad, mostly from China, Taiwan, and South Korea.

Even though Vietnam currently can produce yarn, it still has to export raw yarn to China and then import from this market finished yarn and fabric for domestic production.

For instance in 2019, Vietnam exported $4.2 billion of yarn and $2.1 billion of assorted fabric, but must import up to $13.2 billion of fabric. Of which, $1.3 billion of fibre and $7.7 billion of fabric were imported from China.

Meanwhile, under the ASEAN-Japan FTA commitments, if the product contains fabric made by Japan and ASEAN countries and sewn in Vietnam, it will be tax exempt when exported to Japan. If the fabric is produced outside the RCEP bloc and sewn in Vietnam, the finished product exported to Japan will be subject to a tax rate of 9-10 per cent.

“In other words, the textile industry can hardly take advantage of these tax preferences,” the CIEM said. “Therefore, joining the RCEP will help reduce problems regarding origin, thereby contributing to the creation of new value chains and helping businesses take advantage of important tax incentives.”

Under the RCEP’s commitments, member states pledged to remove 87.8-98.3 per cent of tariff lines for Vietnam, and ASEAN nations vowed to do that with 85.9-100 per cent of tariff lines. The longest roadmap for tariff elimination is 15-20 years as from the RCEP became valid.

Export risks could be tamed with market economy status

Vietnam is actively working with the United States on recognition of its market economy status in a bid to help Vietnamese goods avert American market risks.
 
The Ministry of Foreign Affairs reported that during the working visit over a week ago to the US by Vietnamese Vice State President Vo Thi Anh Xuan, who is now the acting state president, she met with Patty Murray, president pro tempore of the US Senate.

“Vietnam stands ready to hold dialogue and exchanges with the US side on remaining differences, and Vietnam suggests that the US government and congress continue prioritising cooperation in facilitating trade and investment relations with the country, and promptly recognising Vietnam as a market economy,” acting State President Xuan said.

Murray stated her strong support for US efforts to promote its friendship and cooperation with Vietnam over recent times, and took notes of Vietnam’s proposals.

The Ministry of Industry and Trade’s (MoIT) Department for European and American Markets also reported that during the visit, MoIT Deputy Minister Phan Thi Thang met with Sarah Elleman, deputy assistant US trade representative for Southeast Asia-Pacific, to mobilise the US to soon lift Vietnam out of its list of nations having a non-market economy.

“Thang continues reiterating the importance for relevant agencies of the US government to have a substantive voice and support Vietnam’s early removal from the list of countries with a non-market economy,” said the department. “She also stated that recognising Vietnam as a market economy will allow Vietnamese firms to be treated more fairly, without affecting the legal rights of the US domestic manufacturing industry.”

In addition, according to the MoIT, the US’ recognition of Vietnam’s efforts in economic reform will create motivation for other economies as well as produce bigger momentum for Vietnam in improving the domestic investment and business climate, creating a stable supply chain for the import and consumption needs of US businesses and individuals.

Last week, Vietnamese National Assembly Chairman Vuong Dinh Hue welcomed the first Vietnam visit by a high-ranking delegation from the US-ASEAN Business Council (USABC). He spoke highly of the US government’s commitment to consider granting the market economy status to Vietnam, while also calling it “a practical and significant step that will lay a premise for all-around cooperation and benefit businesses and citizens of both countries.”

USABC President and CEO Ted Osius said the USABC has provided evidence of Vietnam’s market economy and submitted recommendations and reports to the US Department of Commerce (DoC).

In September, Vietnam filed an official request that the DoC consider it a market economy, citing the country’s economic reforms made in recent years. The following month, the DoC announced it will begin reviewing the non-market economy status of Vietnam.

“The DoC will carefully review the information submitted by the Vietnamese government concerning its market reforms, and will complete a review as expeditiously as possible, in accordance with US law. The DoC has 270 days to complete this review, which includes a public comment period before a determination is made,” it said.

Since the first anti-dumping investigation involving Vietnam in 2002, the US has considered Vietnam a non-market economy. According to US regulations, the determination of a market economy status is based on six criteria set by the DoC.

These criteria include the currency conversion rate, wage and labour negotiation issues, foreign investment levels, state and private ownership, government control over resources and prices, and other relevant factors.

At present, the US categorises 12 countries, including Vietnam, as non-market economies in trade defence cases, which has a significant impact on Vietnamese businesses, especially in anti-dumping investigations.

The US assesses a Vietnamese product’s value based on what it is worth in a third country (a market economy) and then assumes this is the likely production cost to a Vietnamese company, rather than using data provided by the company itself.

This calculation causes the dumping margin to be pushed up very high and does not actually reflect the status of Vietnamese companies.

If recognised, the market economy status will help Vietnam avoid anti-dumping duties by the US, and Vietnam would be able to make their products more competitive in the US market, also meaning that Vietnam’s export-oriented manufacturing sector will develop further.

Currently, the US is among the key export markets of Vietnam. Two-way trade between Vietnam and the US soared from $450 million in 1995 when the two countries established their diplomatic relations, to $110.6 billion last year. The figure hit $19.6 billion in the first two months of 2024, up from $15 billion recorded in the same period last year.

“While there may be some disagreement over whether Vietnam has adequately addressed each of the statutory criteria commerce uses to evaluate a country’s market economy status, it is certain that Vietnam’s economy is very different to the other 11 countries on the non-market economy list,” Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, told VIR.

“We believe that sufficient progress has been made and that promoting Vietnam to market economy status serves the interests of both of our great countries,” he said.

According to Vietnam’s Ministry of Planning and Investment, cumulatively as of February 20, the US was Vietnam’s 11th largest foreign investor with total registered capital of over $11.83 billion for nearly 1,350 valid ventures.

Chairman Hue stated that Vietnam encourages US businesses to increase investment and cooperation with Vietnamese counterparts in the sectors of green transition, clean and renewable energy, transport infrastructure, digital economy, high technology, healthcare and pharma, electronics, manufacturing, finance-banking, logistics, and quality workforce training.

Quang Ninh’s tourism revenue grows 10%

Quang Ninh Province’s tourism sector has gained revenue of VND10 trillion this year to date, a 10% increase against the year-ago period.
According to local authorities, the total number of visitors to Quang Ninh has surpassed 5.3 million, up by 11% year-on-year.

International guests have made a significant contribution, totaling 616,000, primarily arriving by cruise ship. This marks a remarkable 310% increase over the year-ago period.

Three cruise ships, including one Bahamas-flagged vessel and two others with Malta flags, brought around 4,000 international guests to Halong City.

The Mong Cai International Border Gate has seen an influx of visitors from neighboring China in the first three months of the year, with daily arrivals averaging nearly 10,000.

Hanoi: Key products make up nearly 35% of total industrial production value

Revenues from enterprises making key industrial products in Hanoi amounts to some 200 trillion VND (8.33 billion USD) on an annual basis, or close to 35% of the local sector’s total production value.

According to the municipal Department of Industry and Trade, the capital authorities accredited 229 products by 156 enterprises as key industrial goods. Those enterprises boast high competitiveness, capable of joining the global production and supply chains.

Tran Phuong Lan, Acting Director of the department, elaborated that the group also generates an average annual export turnover of nearly 2 billion USD, creating nearly 80,000 jobs. 
 
From an insider's perspective, Luong Van Thang, Chairman of the Board of Directors of the Viet Tiep Lock Joint Stock Company, said despite facing intense competition from similar products, the firm manages to maintain a large market share thanks to its continuous adoption of new technologies and production of diverse designs, colours, and materials.

Nguyen Ngoc Chung, General Director of the Export Mechanical Tools Joint Stock Company (EMTC), highlighted the company's orientation towards making international-standard products to serve Vietnamese people and to go global.

However, these businesses are also encountering difficulties such as limited access to capital sources, monopolistic practices, and the negative impact of the global economy.

In response, a plan has been issued for the implementation of the city’s key industrial products development project for 2021-2025, specifically outlining that all enterprises involved in the production of those products will benefit from supportive policies.

Moreover, Hanoi is set to enhance support for them in brand building, technology transfer, workforce training, and product innovation. There will also be a strong focus on trade promotion activities to facilitate their participation in global production and supply chains./.

Breakthroughs recorded in fruit, vegetable exports in Q1

With positive signals right from the beginning of the year, including over 1 billion USD in export value in the first quarter of this year, experts have shown optimism about the growth in overseas shipments of Vietnamese fruits and vegetables in the coming time.

According to the General Department of Vietnam Customs, Vietnam earned 325.8 million USD from exporting fruits and vegetables in February, down 33.6% from January, but up 1.4% compared to the same period of 2023.

The figure hit 433 million USD in March, a rise of nearly 4% year on year, pushing the total export revenue of the product in the first three months of 2024 to 1.25 billion USD, up 27% year on year. This is the first time the fruit and vegetable export value exceeds 1 billion USD right in the first quarter, signaling a strong growth of the sector in the future.

Major export markets of Vietnamese fruits and vegetables include China, the Republic of Korea (RoK), the US, Thailand, and Japan. Particularly, a surge of 125.9% was seen in shipments to Thailand as of the end of February to 28.6 million USD.

Meanwhile, the Import-Export Department under the Ministry of Industry and Trade reported that the export of Vietnamese fruits and vegetables to China in the first two months of this year reached 501.4 million USD, a rise of 57.2% over the same period of 2023.

Strong growth was also seen in many other markets, including the RoK (52.4%), and Australia (36.2%).

The Vietnam Fruit & Vegetables Association (VinaFruit) held that the soaring fruit and vegetable export in the first quarter of this year is thanks to the increase of off-season durians. Particularly, the surge in Thailand’s consumption of Vietnamese durians made the country the fourth largest importer of Vietnamese fruits and vegetables.

Experts predicted that although the Red Sea crisis has greatly affected Vietnam’s fruit and vegetable shipments to Europe and the US, but may push those to China and regional countries, especially for durian, coconut, dragon fruit, jackfruits, banana, and mango.

They held that this year, the granting of more codes for durian farming regions and packaging facilities will help promote the export of this product. At the same time, coconut is also another promising product that contributes to the growth of Vietnamese fruit and vegetable export revenue.

This year, Vietnam expects 6.2-6.5 billion USD in fruit and vegetable export turnover./.

Sustainable production towards green growth urgent

Việt Nam is facing challenges from climate change, so transitioning to a sustainable production model towards green growth is an urgent requirement, experts said.

Speaking in the workshop "Sustainable production towards green growth" on Tuesday in HCM City, Director of Quang Trung Software Park Trần Hữu Dũng said that countries around the world and Việt Nam are facing challenges of climate change and limited resources, and converting traditional production into a sustainable model is not only an option, but also an urgent request. This is necessary to protect the environment and create sustainable development.

Việt Nam has participated in international conventions on global pollution control, climate change and environmental protection.

The Vietnamese Government is in the process of completing the legal framework and policies for green transformation.

Policies are introduced to target Việt Nam's Net Zero goal by 2050 and ESG (environment, social, and governance) standards.

At the conference, the speakers recognised that sustainable development is increasingly becoming an overarching trend in the world. Digital economy, circular economy and green growth are development models chosen by many countries.

Science, technology and innovation are also increasingly becoming decisive factors for the competitiveness of each country. Speakers also introduced businesses to useful information about sustainable development trends, sharing practical experiences on building and implementing green production models and sustainable economic development.

Nguyễn Thị Thanh Phượng, director of the City Institute of Environmental Industry, said that businesses aiming for green development need to combine circularity and digital economy for sustainable development.

In particular, the digital economy is understood as an economy that operates mainly based on digital technology, while the circular economy is a model in which design, production, and service activities set the goal of prolonging product life and eliminating negative environmental impact.

According to Thanh Phượng, digital transformation not only brings efficiency and flexibility in production management but also helps optimise resources and minimise waste.

At the same time, green transformation helps minimise the impact on the environment and creates a healthy living environment for the community.

Phí Anh Tuấn, chairman of the HCM City Computer Association (HCA), said that businesses are currently facing many challenges such as resources and technology when switching to green production.

Therefore, for sustainable production towards green growth, businesses need to implement control solutions to help increase efficiency in green production such as applying MES tools.

MES is a production operating system used in factories for the purposes of tracking, monitoring, and controlling production systems and storing complex data.

It also helps automate production lines, enhancing the efficiency of corporate governance.

At the same time, businesses need to focus on meeting the targets in the ESG standards as well as reducing carbon emissions from production activities.

From there, businesses can save operating costs, increase productivity efficiency and reduce regulatory and policy risks related to climate change.

In addition, to promote sustainable production towards green growth, State management agencies need to continue to promote awareness of green production.

In particular, the Government also needs to have policies to encourage and prioritise green production units, while perfecting policy mechanisms to support businesses in converting to green production and sustainable consumption. 

Hà Nội struggles with advancing organic agriculture

Despite the development of several organic agriculture models in Hà Nội, which have shown promising outcomes, the city encounters challenges in scaling these models up to large-scale commercial production.

The city has over 197,000 ha of agricultural land but organic farming has just been practiced on about 2,000 ha of crops and over 10 ha of aquacultural areas.

Vũ Thị Hương, director of the Hà Nội Agriculture Promotion Centre, said that the economic efficiency of organic agricultural production models is usually 10-20 per cent higher than conventional production.

By participating in the models, farmers have their knowledge and skills improved. They also change the way of thinking and working to better meet consumers’ demand, she said, noting that qualified organic products can enter supermarkets, convenience stores, and collective kitchens more easily.

Talking about the difficulties that organic agriculture is facing, Trịnh Thị Nguyệt, director of Đông Phú Organic Agriculture Cooperative in Hà Nội’s suburban district of Chương Mỹ said that the costs of organic agriculture production remain high, making organic products less competitive than conventional ones.

Moreover, organic products don’t look good or yet have differences to attract consumers, which results in instable consumption.

General Director of Bảo Minh Agricultural Processing and Trade Joint Stock Company Bùi Thị Hạnh Hiếu said that to overcome difficulties and expand organic agricultural areas, farmers need support in accessing scientific and technological applications and meeting organic production standards.

Authorities also need to pay more attention to building brands for local organic products and helping farmers connect with businesses and boost trade promotion.

In efforts to limit the negative impacts of agricultural production on the environment, Hà Nội has been implementing a project on organic agriculture development in the 2021-25 period, under which organic agriculture will be combined with eco-tourism and hi-tech organic production.

Deputy Director of the city’s Department of Agriculture and Rural Development Nguyễn Mạnh Phương said that to promote organic agriculture, localities need to strengthen communications to raise public awareness of organic products, particularly among producers, businesses and consumers.

Meanwhile, localities need to focus on developing concentrated organic agricultural production areas and key products, creating favourable conditions to attract investors to organic agricultural models in closed chains from production, processing to distribution.

Retail petrol prices up again to close to VND25,000 per litre

The prices of oil and petrol have climbed VND530 per litre at maximum folowing the latest joint adjustment by Ministry of Finance and the Ministry of Industry and Trade as of 3 p.m. on March 28.      

Accordingly, the price of E5RON92 went up VND410 to VND23,620 per litre, while that of RON95-III, the commonly used fuel, was raised by VND530 to no more than VND24,810 per litre. 

The prices of diesel oil 0.05S and kerosene were capped at VND20,690 and VND20,870 per litre, down VND320 and VND390 per litre, respectively.

Meanwhile, mazut oil 180CST 3.5S was sold at no more than VND17,140 per kilogramme, representing an increase of VND50.

During the latest adjustment, the two ministries decided to use the petrol price stabilization fund for mazut oil, at VND300 per kilogramme.

Since the beginning of the year, petrol prices have undergone 13 adjustments, with eight up, four down, and one down for petrol and one up for oil.

HSBC helps Vietnam scale up digital platform businesses

HSBC has unveiled a US$1 billion ASEAN Growth Fund to help scale up platform players in ASEAN and Vietnam’s booming digital economy.

“ASEAN trade and FDI has been an integral part of the Vietnam success story and looking into the future I am excited by the emerging opportunities it presents for the economy,” said Ahmed Yeganeh, head of Wholesale Banking, HSBC Vietnam.

“The statistics and momentum spell out the size of the opportunity and I am impressed by the growing trade and FDI flows between Vietnam and other ASEAN markets. Particularly relevant for Vietnam is the growing digital economy coupled with it consumption market, will I believe soon make the digital economy one of the key pillars for Vietnam’s growth story,” he added.

The fund is expected to support digital platform players of both ASEAN and Vietnam to achieve economies of scale, grow their asset portfolios, and advance along the corporate lifecycle.

Vietnam was the fastest growing digital economy in ASEAN in 2022 and 2023, and it is expected to retain this position up to 2025, driven by e-commerce, online tourism, and online media, according to the HSBC report.

With the number of smartphones users expected to amount to 67.3 million by 2026, or 96.9% of the country’s internet users, Vietnam is an increasingly lucrative market for the digital industry and its local and international players.

Vietnam joins Macau int’l environment cooperation forum & expo

Vietnam is attending the 2024 Macao International Environmental Co-operation Forum and Exhibition (MIECF), which was kicked off in the Chinese special administrative region on March 28.

The event saw the participation of over 400 exhibitors from 30 countries and territories worldwide. Vietnam is part of the lineup of the Association of Southeast Asian Nations (ASEAN)’s member nations.

Speaking to the Vietnam News Agency in Macau, Vu Thi Thuy, the head of the Vietnam Trade Office in Hong Kong-Macau, said that it had brought to the annual event various documents and images to promote Vietnam's efforts in environmental protection as well as the development of economy, trade, and tourism.

Thuy expressed her confidence that thanks to its incentives and favourable cooperation environments, Vietnam will become an attractive destination for regional and international investors, with an increasing number of environmental friendly cooperation projects signed.

Themed “Reaching the Dual Carbon Goals through Green Transformation”, the 2024 MIECF will last until March 30./.

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