In the first three months of 2024, the US market attracted 23 percent of Vietnam's total outbound investment capital.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, Vietnamese investors initiated 22 new investment projects abroad and adjusted investment capital in two instances during the same period. Vietnam's total overseas investment amounted to US$28.94 million, equivalent to 24.2 percent compared to the same period last year.

Vietnamese investors have expanded into nine sectors overseas. Among these, the highest concentration of investment capital is in wholesale and retail trade, constituting 39.8 percent of total capital, followed by real estate business activities with 18.6 percent of total capital and construction with 17.3 percent of total capital.

Thirteen countries and territories received investments from Vietnam in the first three months of 2024. The countries that attracted the most investment from Vietnam are the US (23 percent), New Zealand (20.3 percent), and Germany (18.6 percent), respectively.

As of February 20, 2024, Vietnam has maintained 1,720 active outbound investment projects, with a total investment capital exceeding $22.12 billion.

Vietnam's outbound investments are predominantly concentrated in the mining sector (31.5 percent) and agriculture, forestry, and fisheries (15.5 percent).

The top destinations for Vietnamese investments are Laos (24.7 percent), Cambodia (13.2 percent), and Venezuela (8.3 percent).

Management of real estate brokers to be tightened

According to the Việt Nam Association of Real Estate Brokers (VARS), only 40,000 out of about 100,000 individual brokers in the domestic real estate market have brokerage practising certificates.

The remaining are freelancers or do this as a second job without training or the right credentials.

Brokerage activities are not managed closely and it is still a job with almost no barriers when the individuals do brokerage activities or stop doing this work, according to a VARS report.

The emended Real Estate Business Law 2023 that takes effect from January 1, 2025, has many regulations to manage strictly real estate brokerage activities.

Article 61 of this law stipulates that individuals practising real estate brokerage must have certificates and work for enterprises providing real estate trading floor services or real estate brokerage services.

It means that individuals will be not allowed to do independent real estate brokerage activities as currently, VARS said.

In addition, Article 48 of the amended Law on Real Estate Business requires project investors, real estate trading businesses and real estate service businesses to receive payments under contracts with customers through accounts opened at domestic credit institutions or foreign bank branches legally operating in Việt Nam.

All remunerations and brokerage commissions of brokers operating in real estate companies will be paid via bank.

Forum on sustainable development of IPs opens in Hà Nội

A forum on promoting the sustainable development of industrial parks (IPs) in Việt Nam takes place in Hà Nội on March 28 organised by the Diễn đàn doanh nghiệp (Business Forum) magazine.

Participants include representatives of the Ministry of Planning and Investment, Việt Nam Chamber of Commerce and Industry, departments, management boards of economic zones and industrial parks, domestic and international organisations, business and industry associations and IP infrastructure investors, developers, experts and researchers.

The forum is expected to present initiatives and recommendations for sustainable development of Việt Nam's industrial parks in the future.

As of February 20, 2024, Việt Nam has 418 industrial parks, including 298 industrial parks under operation and 120 industrial parks under construction. 

Industrial parks have become bright spots in attracting domestic and foreign investment, playing an important role in implementing the country's socio-economic development goals.

However, there is a number of limitations during developing the industrial parks, such as lack of synchronisation and connection, inefficient use of resources, and negative affects on the natural environment and the living environment of the residential community around the industrial parks.

Therefore, perfecting institutions and policies for industrial parks and economic zones to continue their important role in implementing socio-economic development goals is needed.

Hà Nội: Key products make up nearly 35 per cent of total industrial production value

Revenues from enterprises making key industrial products in Hà Nội amounts to some VNĐ200 trillion (US$8.33 billion) on an annual basis, or close to 35 per cent 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.

Trần Phương Lan, acting director of the department, elaborated that the group also generates an average annual export turnover of nearly US$2 billion, creating nearly 80,000 jobs.

From an insider's perspective, Lương Văn Thắng, chairman of the Board of Directors of the Việt Tiệp 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.

Nguyễn Ngọc 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, Hà Nội 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. 

Vietnam Airlines to add over 560,000 seats for upcoming holidays

To serve the increasing travel demand during the holidays of Liberation Day (April 30) and May Day (May 1), Vietnam Airlines Group, including Vietnam Airlines, Pacific Airlines and VASCO, will increase the frequency of its flights.

The national flag carrier will add nearly 560,000 seats or more than 2,800 flights to all of its domestic and international routes during the holidays.

The group will focus on increasing the load on eight key tourist routes.

Meanwhile, on its international routes, the group will increase more flights to Japan, the Republic of Korea, Thailand, Laos, and Cambodia.

It is currently operating over 120 routes, connecting more than 22 provinces and cities across Vietnam and more than 30 destinations in Asia, Europe, Australia, and the Americas./.

HCM City has ample room for innovation, start-up development: Official

Ho Chi Minh City has the most dynamic innovation and start-up ecosystem in the country, so there is a lot of room for start-up and innovation activities, said Chairman of the municipal People's Committee Phan Van Mai on March 28.

Speaking at a meeting with the start-up community, Mai shared that the city makes up 50% of the start-ups, 40% of the incubators and support facilities, 44% of the investment capital, and 60% of the business deals of the country. It is also home to three out of the four "unicorns" which are valued at over 1 billion USD in Vietnam.

The city administration have many policies and responsible commitments to build and develop the start-up ecosystem, and is the first locality to have a specific policy on innovation and start-up, Mai said. The city also aims to become an innovation and start-up hub based on the ASEAN regional science and technology centre, towards a continental level by 2030, he added.

Therefore, it hopes entrepreneurs and experts will continue to research and propose mechanisms and policies to effectively develop start-up and innovation activities, contributing to its socioeconomic development and integration, he stated.

According to Director of the municipal Department of Science and Technology, in the Global Start-up Ecosystem Report (GSER) 2023 by Startup Genome, Ho Chi Minh City secured its position within the top 100 emerging start-up markets worldwide, placing in the range of 81-90. The city’s start-up ecosystem is currently ranked 1st in Vietnam and 114th in the world by Startup Blink.

Secretary of the municipal Party Committee Nguyen Van Nen said that following this first meeting, city leaders will have regular meetings with the start-up community.

The city will issue outstanding investment attraction policies, focusing on training high-quality human resources, and build a close cooperation and cohesion mechanism so that members of the start-up and innovation ecosystem can promote their strengths, stated Nen./.

Domestic, international experts share experience in developing digital economy, tech regulations

The Central Institute for Economic Management (CIEM) on March 28 held a workshop on developing policies to promote innovation and the digital economy.

At the event, domestic and international experts reviewed policies and the legal framework for technological development and innovation in Vietnam. They also reviewed policy-relating challenges that the country is facing as well as the experiences of other countries. 

Participants focused on discussing innovative initiatives, the role of policy-making and enforcement agencies, the roles of stakeholders, potential areas for cooperation in Southeast Asia, and improving the legal framework for technological development and innovations.

Speaking at the event, Dr Nguyen Minh Thao, head of the Business Environment and Competitiveness Research Department at VCCI, said that digital transformation is a driving force for innovation to improve productivity, quality, efficiency and competitiveness of an economy.

In Vietnam, the Party, the State and the Government have issued many guidelines and policies to promote the digital economy. As a result, the digital economy has made progress and is considered one of the important growth drivers of the country.

Thao said that improving mechanisms and policies to promote the development of science, technology and innovation is important. The Government has also attached importance to creating a legal framework to deploy pilot mechanisms for new economic models based on science, technology and innovation, Thao said.

Keith Detros from the Tech for Good Institute (TFGI), a non-profit organisation founded by Grab, said that although Southeast Asian countries have different technology development policies, they all share the common interest in maintaining competitiveness, promoting innovation, protecting personal data, and enhancing network security.

Experts recommended that Government agencies need to closely coordinate to help enhance digital governance effectiveness. Meanwhile, Southeast Asian countries need to further cooperate through initiatives or framework agreements to establish coordination mechanisms and regulations./.

Hoa Binh exports first lot of pickled chili peppers to RoK

The northern province of Hoa Binh’s Department of Agriculture and Rural Development on March 28 coordinated with Tien Ngan Trading and Investment Co., Ltd, Tomas Trade Co., Ltd and ASIA Ocean company to export the first lot of 7.5 tonnes of pickled chili peppers to the Republic of Korea (RoK).

Hoa Binh farmers harvest two crops of chili peppers each year with an output of 30-40 tonnes per hectare thanks to favourable conditions in climate and soil for chili pepper farming.

According to the Plant Protection Sub-Department of Hoa Binh, RoK firms have said that they need 4,000 tonnes of pickled chili peppers each year. Therefore, the locality plans to expand its chili pepper farming area to about 50 hectares for export, mostly in Luong Son, Lac Son and Kim Boi districts as well as Hoa Binh city.

Director of the Hoa Binh Department of Agriculture and Rural Development Nguyen Huy Nhuan said that the export of the first lot of pickled chili peppers to the RoK opens up new hopes for the locality in promoting the export of major agricultural products, while enhancing the confidence of farmers in producing products for international orders.

Hoa Binh has encouraged local businesses to invest in deep processing technologies and supply chains to increase export volume and value, he said.

Nguyen Le Diep, Director of Tien Ngan Trading and Investment Co., Ltd said that the RoK is a potential market with high demand for pickled chili peppers, which is a strength of Hoa Binh.

In 2024, the firm plans to export 150 tonnes of pickled chili peppers to the RoK, Diep revealed./.

Electricity prices to be adjusted every three months

The average retail electricity prices are to be adjusted no more than every three months starting from May 15.

That was the ruling from the government in Decision No. 05/2024/QD-TTg, signed recently by Deputy Prime Minister Le Minh Khai, to regulate the country's electricity price adjustment system.

The decision allows the adjustment of the average retail prices in the event of changes in the prices of its input costs including production, transmission, distribution, management and support services among others.

If input costs fall by 1% than the in-effect average retail price, it must be adjusted down. In the event the input costs rise by more than 3%, it can be adjusted up, with a minimum waiting period of three months between each adjustment. 

The minimum waiting period between price adjustments was six months previously. 

Vietnam Electricity (EVN) will be given autonomy to implement a price increase within the range of 3-5%. Within five working days since the beginning of an adjustment, the EVN must report to the Ministry of Industry and Trade (MoIT), among other ministries and governmental agencies, to form a schedule for inspection and supervision during the period. 

In the event that the EVN proposes a price increase within the range of 5-10%, the EVN must report to the MoIT. Within 15 working days, the ministry, in turn, must provide the EVN with an answer.

Suppose the EVN proposes a price increase greater than 10%. In that case, the MoIT is charged with the task of submitting a report, after a period of co-consulting with other ministries and governmental agencies, to the central government and the Prime Minister for review. 

The ministry is tasked by the Prime Minister to provide the EVN with a framework to calculate the average retail prices of electricity, implement and adjust the prices and oversee the periods.

In addition, the MoIT, with the support of the Ministry of Finance, among other ministries and governmental agencies, reports to the Steering Committee for Price Management and the Prime Minister. 

Economist Tran Dinh Long said a shorter price period will help bring electricity prices closer to the market price. However, it is still very important to expedite the implementation of a competitive electricity market to ensure that electricity prices truly follow market principles.

Nguyen Tien Thoa, Chairman of the Vietnam Valuation Association, said a shorter price period will allow the EVN to more quickly respond to changes in input costs. 

"The longer they have to wait, the greater their financial losses and the chance of a shock increase," he said. 

Tran Viet Hoa, Director of the Electricity Regulation Department under the MoIT, said just because theoretically the EVN can submit a proposal every three months doesn't mean they will do so. Many other aspects, including the potential impacts on macroeconomic factors and the input costs, will be considered.

Economists have long suggested that shortening the time for price adjustments is a necessary preparation step towards a competitive electricity market./.

GDP grows 5.66% in Q1

Vietnam's economy grew 5.66% in the first quarter compared to the same period last year, the highest for the first quarter since 2020, the General Statistics Office (GSO) announced at a press conference in Hanoi on March 29.

According to the GSO, the agro-forestry-fishery, industry-construction, service sectors expanded by 2.98%, 6.28%, 6.12%, contributing 6.09%, 41.68%, and 52.23% to the total Q1 GDP growth, respectively.

In her remarks, GSO General Director Nguyen Thi Huong lauded the positive gain amidst global economic instabilities, which reflects the effectiveness of management policies of the Government, ministries, sectors, and localities.

She also noted bustling trade activities, a strong tourism recovery, and high increases in export turnovers of key products.

Regarding the structure of the economy in the quarter, the agro-forestry-fishery made up 11.77%, industry-construction 35.73%, and service 43.48%.

On the utilisation of GDP, final consumption and asset accumulation increased by 4.93% and 4.69% year-on-year, contributing 56.77% and 24.07% to the overall growth rate, respectively. The export of goods and services grew by 18%, while imports rose by 17.08%, resulting in a trade surplus contribution of 19.16%./.

Tuna exports predicted to rebound as billion-USD earner

Vietnam’s tuna exports showed a gradual recovery in the last quarter of 2023 and have strongly grown again in the first months of this year, promising a surge throughout 2024 and a return as a commodity with billion-USD export value, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Amidst the overall decline in aquatic exports, tuna exports also saw a drop of 17% to 845 million USD in 2023. However, from the last few months of 2023, they have begun to recover. In January of this year, the tuna export turnover reached over 79 million USD, surging by 58% year-on-year.

Nguyen Ha, VASEP tuna market expert, said he believes that this is a positive sign for tuna exports in 2024.

The growth in January helps lift the export turnover of this product to 131 million USD in the first two months of 2024, up 21% over the same period last year.

The result was attributed to efforts by businesses to expand export markets.

According to VASEP, Vietnamese exporters shipped tuna products to more than 80 markets worldwide. Enterprises have mitigated risks by diversifying their export destinations to compensate for the decline in major markets.

For instance, in February, while tuna exports to key markets such as the US and the European Union (EU) saw a sharp drop, the shipments to many smaller markets recorded strong growth such as Canada (up 146%), and Chile (up 116%).

To overcome difficulties and challenges and to bring tuna back to the list of billion-USD exports, businesses need to fully tap free trade agreements (FTAs) Vietnam signed with the EU and the UK, insiders said.

The UK is seen as a promising market for Vietnam’s tuna, however the export value of this product to the European nation remains modest, accounting for only 1% of the UK’s tuna import value.

The Ministry of Industry and Trade’s Import and Export Department said that Vietnamese tuna has gained advantages in the UK market thanks to tariff preferences provided by the Vietnam-UK FTA (UKVFTA). Tuna exports to the market hit 5.5 million USD in the first nine months of 2023, up 48% year-on-year.

The department rolled out various scenarios for exploiting the UK market for Vietnamese tuna during 2022 – 2025. It forecasts that the tuna export turnover to the market will gradually recover and averagely expand by 8 - 9% per year in the period./.

Hanoi economy expands 5.5% in Q1

Hanoi’s economy continues its growth momentum in the first quarter of 2024, thanks to its activeness and flexibility in implementing socio-economic development measures, according to the municipal People’s Committee.

The committee said that the capital city’s gross regional domestic product (GRDP) grows by 5.5% in the first quarter, in which services expand by 5.84%, industry and construction by 4.77% and agro-fishery-forestry by 3.76%, and product tax by 4.94%.

Budget collection reaches 146.8 trillion VND (5.87 billion USD) in the period, equal to 36% of the yearly estimates, and up 3.9% against the same period last year.

Local budget expenditure is 31.59 trillion VND, or 14.7% of the estimates, of which 9.5 trillion VND is for development investment.

In January-March, the capital’s export turnover is estimated at 3.9 billion USD, up 3.7% year-on-year, while its import revenue is estimated at 8.6 billion USD, up 1% year-on-year.

The index of industrial production in the first quarter is estimated to expand 3.6% against the same period of 2023, while total retail sales of consumer goods and services are estimated at 199.6 trillion VND, up 9.3%.

Truong Viet Dung, Chief of the Office of the Hanoi People's Committee Office, said that the city will continue to promote growth associated with controlling inflation and ensuring major balances of the economy.

Attention will be paid to effectively and promptly implementing the government’s policies on interest rates and credit to support businesses and people, and speeding up disbursement of public investment right from the beginning of the year, especially for key projects, and national target programmes, he added./.

Vietnam advised to fully tap CPTPP to boost exports to Canada

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up numerous opportunities for Vietnam and Canada to boost two-way trade, however, tax initiatives under the trade pact have not been tapped to the fullest extent by the Vietnamese exporters, said Vietnamese Trade Counsellor in Canada Tran Thu Quynh.

Attending a seminar in Ho Chi Minh City on March 28, Quynh stressed two-way trade has increased to 10 billion USD from only 2.5 billion USD in 2013.

Vietnam shipped more than 9 billion USD worth of products to Canada but only 18% of which used certificates of origin (C/O) under the CPTPP to enjoy preferential tariffs while more than 90% used C/O most-favoured nation (MFN) tariff and general preferential tariff (GPT) which will be invalid in December 2024.

Around 4 billion USD worth Vietnamese exports to Canada did not capitalise on the CPTPP, which means Vietnamese goods are more expansive than their rivals in the market, Quynh said, stressing enterprises should pay attention to taking advantage of the trade agreement and working to meet the requirements on the rule of origin to improve the competitive edge for the Vietnamese products, thus increasing export revenue in the Northern American market.

Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng said since the CPTPP took effect, trade turnover between Vietnam and Canada surged by 170%, making the bilateral trade cooperation a “bright star” in the CPTPP bloc.

According to Mary Ng, Vietnam is Canada’s largest trading partner in the Association of Southeast Asian Nations (ASEAN) and Canada wants to expand this successful cooperation model in the region. Vietnam is an important gateway for Canada to develop its relations with other ASEAN member states and the whole Asia.

Deputy Director of the HCM City Customs Department Nguyen Huu Nghiep said the department has worked to facilitate trade for the business community, expressing his hope that the department and the Canada Border Services Agency will meet and discuss measures to remove bottlenecks and create confidence among import-export enterprises amidst radical changes in international trade./.

Mekong Delta firms optimistic about economic outlook in 2024

Up to 75.8% of surveyed businesses in the Mekong Delta region forecast that their revenues will increase and 74.1% predict rises in profits, according to Nguyen Phuong Lam, Director of the Vietnam Chamber of Commerce and Industry’s Mekong Delta office.

Speaking at a meeting with VCCI members on March 28, Lam pointed to several difficulties facing enterprises in 2024, including logistics and labour costs, capital, petrol and oil prices, and unofficial costs. 

In face of these difficulties, Nguyen Thai Binh from Trung An Hi-tech Farming JSC expressed his hope that the VCCI’s Mekong Delta Office will continue its support for trade and investment promotion activities, and provide updated information and consultations for businesses.

Lam said that efforts will be made to improve the business environment, increase dialogues between enterprises and local authorities, ministries and sectors, and organise business cooperation forums with key markets such as Japan, China and the Republic of Korea.

Last year, 11,381 new enterprises were established in the Mekong Delta region, but 10,514 others stopped operating or dissolve, posing a big challenge for the region. FDI inflows into the 13 localities in the region totalled 741 million USD, only one quarter of the amount recorded by the northern province of Quang Ninh.

At present, the unemployment and underemployment rate in the region is the highest in the country.
 
The Mekong Delta comprises Can Tho City and the provinces of An Giang, Dong Thap, Long An, Tien Giang, Vinh Long, Ben Tre, Tra Vinh, Soc Trang, Hau Giang, Bac Lieu, Ca Mau and Kien Giang./.

Vietnam’s CPI rises in Q1, driven by rice prices

Vietnam's consumer price index (CPI), a key measure of inflation, climbed 3.77% year-on-year in the first quarter, General Director of the General Statistics Office (GSO) Nguyen Thi Huong told a press conference in Hanoi on March 29.  

Huong attributed the rise primarily to a surge in domestic rice prices. This increase mirrored a rise in export rice prices and was further fueled by higher demand for glutinous and jasmine rice varieties during the Kitchen Gods' Day and Lunar New Year holidays. The rice price jumped 21.71% annually during the quarter, pushing up the overall CPI by 0.55 percentage points.

Core inflation, which excludes volatile items like food, energy, and health and education services, remained relatively stable, rising 2.81% annually in the first quarter.

Looking at monthly figures, the March CPI rose 1.12% compared to December 2023 and 3.97% year-on-year. However, it did see a slight decrease of 0.23% compared to February.

Prices of water, electricity, education, medicines, and health services recorded respective increases of 10.58%, 9.38%, 9.02% and 6.51%.

Meanwhile, those of food and dining services, education, and transportation all decreased slightly on a month-on-month basis, by 0.76%, 0.29%, and 0.03%, respectively.

Year-on-year comparisons also revealed a 1.47% decline in the cost of postal and telecommunication services.

On a different note, the prices of gold and US dollars experienced significant increases in March, rising 22.71% and 4.32% year-on-year, respectively./.

Hanoi’s tourism revival boosted

Hanoi welcomed about 6.54 million tourist arrivals in the first quarter of this year, of them some 1.4 million international, representing year-on-year rises of 10.9% and 40%, respectively, the municipal Department of Tourism said.

The office reported that the capital city earned 25.48 trillion VND (1.02 billion USD) from tourism activities, up 17.8% from the corresponding time last year, attributing the increase to the ongoing peak season in Hanoi.

To attract more visitors, the sector is developing products associated with heritages, relic sites, and craft villages, and others based on strengths of each locality like sports tourism in the outskirts district of Soc Son, and community and medical tourism in Soc Son and Ba Vi districts.

The city has also set up connectivity with other cities and provinces such as Ha Nam, Ninh Binh, Son La, Lao Cai, and Lai Chau to form travel routes where their key, reciprocal products are brought into full play.

At the same time, the department has coordinated with districts and township to boost tourism at pedestrian streets like those in Hoan Kiem, Hai Ba Trung, and Son Tay, while opening new ones.

Attention has also been paid to tourism digitalisation, covering information about tourist sites, services, and market./.

VN a key location for establishing production centre: Japanese businesses

Việt Nam is a key location for production centre establishment, according to the co-chairs of the Việt Nam-Japan Economic Committee at a meeting with National Assembly Chairman Vương Đình Huệ on Thursday.

Fujimoto Masayoshi and Hyodo Masayuki, heads of the committee, were leading a business delegation from the Japan Business Federation (Keidanren) to attend a summit launching the Việt Nam-Japan Joint Initiative in the New Era.

The project consists of five major groups of issues: promoting the Asia Zero Emission Community (AZEC); green transition, innovation and digital transformation; strengthening the supply chain; high-quality human resources training (in IT, artificial intelligence and semiconductors); and mechanism reforms to improve the business climate.

Speaking with the Vietnamese top legislator, Japanese representatives agreed that Việt Nam is a developing country with a large population, a hardworking labour force and a high-potential consumer market.

Many Japanese businesses are looking to contribute to bilateral ties and expand their operations in Việt Nam, especially in human resources training for software development, supporting industries and clean energy production, they said.

Keidanren members hoped that in the near future, the Vietnamese National Assembly (NA) and government will further accelerate administrative reforms to improve the business-investment climate and attract more Japanese companies.

NA Chairman Huệ gave high regard to the Việt Nam-Japan Joint Initiative, which has been executed successfully for the past 20 years.

Việt Nam always attaches great importance to and welcomes Japanese investment in Việt Nam, as well as their recommendation for legal and administrative reforms for a better business environment, he reiterated.

He also agreed that the five areas of focus in the initiative are emerging and crucial sectors, and expects that Keidanren, the Vietnamese Ministry of Planning and Investment, and other government agencies would devise a specific, practical and effective action plan.

They should also work to clarify the cooperation mechanism, nature of operations, financial resources and stakeholder responsibilities, while also evaluating the unsuccessful cooperation in the six focus industries in the 2013 Industrialisation Strategy, for lessons learnt.

As part of the legislation for plan implementation, the Vietnamese NA is looking into related bills such as the Law on Defence, Security Industries and Industry Mobilisation, in addition to administrative and educational reforms.

NA Chairman Huệ also asked the Việt Nam-Japan Economic Committee and Keidanren to continue working with Vietnamese departments to increase dialogues on policies as well as information and experience exchange to improve the Vietnamese business-investment climate.

Keidanren is also encouraged to promote Việt Nam’s image and investment opportunities and environment to major Japanese corporations, especially in the five key sectors of the joint initiative.

A meeting was held in Hà Nội on Wednesday to launch the first phase of the Việt Nam-Japan Joint Initiative in the New Era.

In his remarks, Vietnamese Minister of Planning and Investment Nguyễn Chí Dũng said that the initiative, which began in April 2003, is a 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 conducive business climate in the Southeast Asian country, and offered policy recommendations as reference for law and policy refinement processes by local agencies.

Japanese Ambassador to Việt Nam Yamada Takio said after two decades, the initiative completed eight phases, with 84 per cent of the workload finished on time, boosting foreign capital inflows in Việt Nam, particularly from Japan.

Participating Vietnamese and Japanese delegates agreed that the first phase would 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 two sides pledged cooperative efforts and active implementation of commitments in the action plan to meet the set goals, for the mutual prosperity of the Vietnamese and Japanese business communities and to enhance the two countries’ relations.

As of February 20, Japanese investors had channelled US$74.3 billion into 5,288 projects in Việt Nam.

In the first two months of 2024, their registered investment amounted to $422.4 million, soaring by 290 per cent year-on-year. 

Investors embrace stock dividend capture strategy for steady profits

A company's dividend policy is a perennially popular topic that takes centre stage during shareholder meetings. Within the investor community, a strategy focused on selective stock acquisition for the purpose of securing dividends has become increasingly popular due to its demonstrated effectiveness.

The deadline for finalising the shareholder meeting attendee list of Bình Minh Plastic Joint Stock Company (BMP) is approaching on April 2. Investors are eagerly awaiting the dividend policy for 2024 from BMP, known for its generous dividend payouts. During last year's shareholder meeting, the company's leaders even hinted at the possibility of maintaining high dividends until 2025. BMP has consistently maintained a cash dividend payout ratio of over 100 per cent for the past four years, from 2020 to 2023. In 2023, the company's dividend ratio reached an impressive 118 per cent.

Although BMP experienced an 11.2 per cent decrease in net revenue in 2023 compared to 2022, amounting to VNĐ5.15 trillion, the after-tax profit reached VNĐ1.04 trillion, representing a 50 per cent increase from the previous year. This was the highest profit level the company has achieved in its history.

BMP's stock price is at an all-time high, staying at around VNĐ111,300 per share. If the company maintains a 100 per cent dividend payout ratio (equivalent to VNĐ10,000 per share), the current dividend yield to the BMP stock price exceeds 9 per cent. This percentage is significantly higher than long-term savings interest rates, making it an attractive option for investors.

Đức Giang Chemical Group (DGC) Joint Stock Company will hold its annual shareholder meeting on Friday. The company's board of directors expects to present a revenue plan for 2024, projecting a 4.7 per cent increase to VNĐ10.2 trillion compared to the actual performance in 2023. However, they anticipate a 4 per cent decrease in after-tax profit to VNĐ3.1 trillion compared to the previous year. The proposed cash dividend payout ratio is 30 per cent, equivalent to a total dividend payment of VNĐ1.13 trillion. DGC shares have gained investor attention due to their impressive business performance and a history of high-profit distribution to shareholders. In 2023 alone, shareholders received dividends of up to VNđ4,000 per share, including VNĐ1,000 from 2022 and VNĐ3,000 as an interim dividend for 2023.

Sơn La Sugar Joint Stock Company (SLS) paid a cash dividend of VNĐ15,000 per share in 2023, corresponding to a dividend payout ratio of 150 per cent of its charter capital. This ratio exceeded the initial plan by 50 per cent. With an average trading price of around VNĐ150,000 per share, the dividend yield on SLS stock is approximately 10 per cent, twice as high as long-term savings interest rates.

Another company known for its substantial dividend payouts is the Cadivi Joint Stock Company (CAV). In 2023, Cadivi distributed five cash dividends, for a total payout ratio of 140 per cent. CAV is currently trading at VNĐ74,000 per share, which is still considered an attractive price when considering the dividend payout ratio in relation to the stock price.

Lê Đức Khánh, the Director of Strategy at VPS Securities Company, has provided insights on companies paying dividends above 100 per cent in the stock market. Such occurrences are rare, and these companies typically have high market prices and low liquidity, making it challenging to acquire significant quantities of their stocks. However, stocks with high dividend yields can be a viable choice for long-term investors.

After a dividend distribution, stock prices often adjust, and if they fail to increase, investors may not benefit or even incur losses if prices decline. Effective business growth prospects are the most significant factor in determining stock price growth potential, which companies can consistently achieve by offering high and regular dividends.

Companies like FPT Corporation (FPT), Bình Minh Plastic JSC (BMP) and Đức Giang Chemical Group (DGC) in this category have seen their stock prices quickly return to pre-dividend levels. For instance, FPT's stock price currently stands at around VNĐ115,000 per share, reaching a historical high due to sustained double-digit business growth prospects. FPT's 2024 shareholders' meeting documents indicate a target revenue of VNĐ61.85 trillion, a 17.5 per cent growth compared to the previous year, a pre-tax profit of VNĐ10.87 trillion, an 18.2 per cent growth, and an expected dividend of 20 per cent in cash, matching 2023 figures.

According to Khánh's recommendations, companies with sound business prospects and a history of maintaining solid dividends include banking, telecommunications technology, pharmaceutical, oil and gas, utilities, and insurance companies.

Nguyễn Anh Khoa, the Director of Analysis at Agribank Securities Company (AGR), suggests that during periods of market volatility, selecting defensive stocks with high dividend payments and strong market resilience is a suitable strategy for risk-averse investors. Criteria for selecting such stocks include stable cash flow, low-risk and low-volatility business models, a track record of regular dividend payments, and reasonable valuation. In addition to some banking stocks, companies in the hydropower, thermal power, pharmaceutical, beverage and sugar sectors are considered suitable, as they offer both business prospects and reasonable dividends. 

Construction industry's largest gathering next month

The premier event for the construction, mining and transportation industries, Contech Vietnam 2024, is soon to be launched in Hà Nội.

Supported by government bodies, associations and trusted industry businesses, the annual event is organised by HADIFA.

Particularly, this year, EL Vietnam 2024, an International Exhibition on Electrical Energy and Lighting, will be held concurrently with Contech Vietnam 2024.

Both international exhibitions are scheduled to take place from April 17 to April 20. The venue for the exhibitions is the National Exhibition Construction Centre (NECC), located at 01 Đỗ Đức Dục Street, Nam Từ Liêm District, Hà Nội.

Contech 2024 and EL Vietnam 2024, with hundreds of booths covering 5,000 square metres of indoor and outdoor exhibition space, offer rich content and diverse technology and product displays.

The exhibitions are expected to attract thousands of visitors, including trade visitors and experts from various fields. They provide a platform for brand promotion and facilitate networking, partnership building and business opportunities for investors and professionals.

This year, the organising committee welcomes exhibitors, brands, machinery, equipment and technology from countries and regions such as Germany, China, Hong Kong (China), South Korea, India, Singapore, Israel and Việt Nam.

Speaking at a press conference, representative of HADIFA said that the two events act as a catalyst, facilitating optimal opportunities for Vietnamese and international businesses to showcase products, new technologies and foster collaborative relationships, business negotiations and the signing of trade agreements and contracts. 

HCM City to host Tourism Fair

The 20th HCM City Tourism Fair will be held from April 4 to 7 at the September 23 Park in the city’s District 1.

The event, with the theme “20-year exciting journey,” is a major promotion event organised annually to boost the city’s tourism, Lê Trương Hiền Hòa, deputy director of the city Department of Tourism, said.

The fair is a good opportunity for travel firms to introduce their new summer tours to meet domestic travel demand, he told a press briefing on Tuesday.

It will bring together tourism promotion agencies, travel companies, hotels, airlines, and other tourism services nationwide to showcase their products and services at more than 100 booths.

A range of tourism stimulus programmes will be launched at the event, with nearly 400 tours and travel-related products and services sold at nearly 50 per cent discounts.

Nearly 40 new HCM City tours and river tours will be sold at 60 per cent discounts.

A number of seminars on human resources and new business models in the tourism industry will be held as part of the event.

The fair will be organised by the department and the city Tourism Association.

Thailand Week 2024 opens in Quảng Ninh Province

Thailand Week 2024 officially opened at the Quảng Ninh Exhibition of Planning and Expo Centre of Quảng Ninh Province on March 28.

The week was jointly organised by the Department of International Trade Promotion of the Ministry of Commerce of Thailand and the Embassy of the Kingdom of Thailand in Hà Nội.

The event aims to promote bilateral trade activities, introduce high-quality Thai products, as well as create a platform for business connection and expansion.

Speaking at the event, Thai Ambassador to Việt Nam Nikorndej Balankura said that Thai Product Week 2024 is one of the support and introduction channels for Vietnamese people to know about quality products from Thailand.

The Thai Week has been organised 10 times in Việt Nam. This is the third time it was organised in Quảng Ninh Province due to the province's potential to connect with Thailand in all aspects, according to Balankura.

Thailand Week 2024 has 74 booths, showing a rich picture of Thai products and culture through seven main categories: food and beverages, health care and beauty products, apparel and fashion products, home appliances, gifts and decorations, pet food and travel services.

The event is also an opportunity to connect business-to-business (B2B), business-to-consumer (B2C), and develop trade and investment cooperation between Thailand and Quảng Ninh Province in particular and Việt Nam in general.

At the event, visitors can participate in exciting activities throughout, such as tasting the unique flavours of Thai cuisine from a Thai SELECT-certified restaurant or checking in to receive gifts or participating in daily lucky draws with prizes of Thai products. 

Honda Vietnam recalls more than 220 Gold Wing and CBR1000RR vehicles

Honda Vietnam (HVN) announced a recall campaign for 221 Gold Wing and CBR1000RR vehicles to check the faulty fuel pump to ensure optimal quality for the product on Thursday.

The recall involves 147 Gold Wing vehicles produced from October 2017 to March 2023 and 74 CBR1000RR vehicles produced from September 2017 to September 2020, all imported as complete units by Honda Vietnam from Japan for distribution at Honda large displacement vehicle stores (DreamWing).

HVN said that although it had not received any feedback or complaints from customers in the Vietnamese market about defective fuel pumps, for the benefit and safety of customers, HVN would invite the 221 owners of the above products to Honda authorised vehicle sales and service stores (HEAD) for inspection and handling.

According to HVN, due to changes in production methods, the fuel pump impeller may be deformed and stick, which would disable the fuel pump causing hard starting or stalling of the engine.

All products in this recall campaign will be inspected and replaced (if necessary) to ensure product quality, completely free of charge.

At the same time, HVN will support inspection and replacement of products of the same type that are not imported and distributed by this joint venture in the Vietnamese market.

HVN will begin replacing parts (if necessary) for products on the recall list around May 2024 because at present, parts are not available.

As for Gold Wing owners, customers can bring their vehicles to DreamWing and HEAD to check and confirm if parts replacement is necessary from March 26.

To check if your vehicle is subject to recall, customers can visit Honda Việt Nam's website at the link: https://www.honda.com.vn/xe-may/trieu-hoi, enter the chassis numbers and click on the “Search” box.

Ba Ria-Vung Tau calls infrastructure investment

The southern province of Ba Ria-Vung Tau is seeking investors for 92 infrastructure projects.

The list will include 21 industrial park and complex projects, six logistic and seaport projects and 23 tourism projects. 

Gemalink Port in Ba Ria-Vung Tau: Photo by T.N

Other projects include urban areas, housing, health, education, science and technology and culture and sports.

Last year, Ba Ria-Vung Tau Province attracted VND50.68 trillion (USD2.06 billion) in investment. Foreign direct investment (FDI) accounted for USD1.40 billion, making the province one of the top ten localities for FDI.

In the first quarter of this year, the province pulled in FDI of up to USD1.55 billion, surpassing 2023’s figure.

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