Vietnam is the most investment worthy place in ASEAN, based on valid and practical grounds where improved economic diversification, international integration, reformed investment legislation and good economic policy must be counted, according to an article recently published on the US’s mondaq.com.

In terms of economic recovery and stable development, the author cited the "The World in 2050" study by PwC consulting firm, which predicted that Vietnam will have the second highest annual GDP-growth rate worldwide.

There will be an average growth by 5.3% each year, from 2014 till 2050. That means Vietnam will have the fastest growing economy within Asia till 2050. In addition, the inflation rate is controlled by the Government with consumer price index to be in the range of 3-5% for the whole year, which is far below the maximum allowed inflation rate of 4.5% in 2023. These two important macroeconomic indices have proved the Government's success to a certain extent in recovering and maintaining stable development of the economy, he said.
         
According to the article, the Vietnamese Government is fiercely improving the business and investment environment and making great attempts to achieve key economic indicators of top regional countries. For that reason, Vietnam encourages FDI on projects that utilise advanced, emerging, high, or clean technology, modern management methods, and contribute positively to global production and supply chains.

Until now, Vietnam has negotiated, signed and put into effect a number of bilateral and multi-lateral free trade agreements (FTAs) with almost all the big economies in the world. Of the figure, 16 FTAs involving more than 60 partners have become effective, covering all continents with a combined GDP accounting for nearly 90 percent of global GDP. Looking at the liberalisation level of market access under the World Trade Organisation (WTO), Vietnam is on par with Singapore - the most developed country in the Southeast Asia. 

Vietnam has concluded an FTA with the European Union and joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Thus, from an international trading and investment perspective, Vietnam is unmatched when it comes to partnership and openness of market access.

The article pointed out that the new laws considered the most liberal and investor-friendly in the region, such as the Enterprise Law, Investment Law and Public Private Partnership Law, have been adopted. Barriers to business and investment are removed to pave the way for an open, transparent and full-of-opportunity environment for foreign investors.

In an attempt to ease burdens on investors, the Government issued a Decree in 2015 to provide more flexibilities in foreign ownership ratio in public listed companies, up to 100% in certain cases, and allow foreign investors to make unlimited investment in Government bonds, bonds guaranteed by the Government, bonds of the provincial authorities or enterprises. 

Concluding the article, the author said Vietnam is a country of changes and currently offering increasing opportunities for foreign businesses. The underlying strength of the economy is reflected in, among others, controlled macroeconomic indicators, strong productivity gains and extensive integration into regional and global economy. It is now exactly time for foreign investors to start their business plans and grasp the upcoming clear opportunities.

Ministry of Finance rejects proposal to raise VAT threshold

The Ministry of Finance (MoF) has rejected a proposal to increase revenue thresholds for value-adde (VAT) tax for individuals and household business to VNĐ300 million (US$12,500) a year, citing concerns that a higher tax threshold would deter household business from converting to enterprises.

In the latest draft amendment to the Law on Value Added Tax, the ministry has maintained its proposal that individuals and household business with revenues exceeding VNĐ150 million per year will be subject to VAT tax, an increase of VNĐ50 million from the existing level.

During recent discussions on amending the Law on Value Added Tax, representatives from Quảng Ngãi Province have suggested to raise the threshold to VNĐ300 million, while other agencies proposed lower levels, with the Ministry of Transport proposing VNĐ250 million.

The Vietnam Tax Consultants' Association (VTCA) have suggested a threshold of between VNĐ180 million and VNĐ240 million.

The rationale behind these suggestions is that CPI has increased significantly since the amended Law on VAT 2013, which replaced the 2008 law, came into force from the beginning of 2014.

There are 5.5 million household businesses in the country that account for 30 per cent of its GDP, according to the General Statistics Office.

VAT accounts for more than 20 per cent of the government’s budget revenues.

Việt Nam has extended the 2-per-cent VAT reduction policy till the end of June this year given prolonged economic difficulty. 

US firm considers Vietnam appealing investment destination

Vietnam could be an appealing investment for investors seeking growth exposure outside of traditional emerging markets, according to a recent market insight analysis by the US investment management firm VanEck.

As reported by the news site asiafundmanagers.com, the analysis said the country’s transition from a frontier to an emerging market and points to the reforms that have led to its remarkable growth.

“Vietnam’s economic reforms have created a virtuous cycle: reforms spurred exports, which in turn drove economic growth, leading to increased domestic demand. This trajectory has positioned Vietnam as a dynamic and integral part of the global economy, with a domestic market that continues to show robust growth potential,” said John Patrick Lee, Product Manager at VanEck, as quoted by the site.

Lee further pointed out that Vietnam’s economic growth is buoyed by its young and growing population. With over 60% of the population under 30 and a literacy rate above 90%, this dynamic is fostering a strong domestic demand driven by a burgeoning middle class with rising disposable income. Compared to other emerging markets, Vietnam’s private consumption ratio to GDP ranks it mid-range, higher than Saudi Arabia and China but lower than Brazil and the Philippines. This robust domestic demand offers Vietnam resilience against external challenges.

When it comes to the equity market, VanEck believes that Vietnam is an emerging opportunity investors should look closely at. Lee also said he sees the biggest equity opportunities in financials, real estate and consumer staples.

HCM City urged to develop carbon credit market to cut greenhouse gas emissions

Ho Chi Minh City needs to adopt policies and channel financial resources to develop a carbon credit market in an effort to cut greenhouse gas emissions and respond to global warming, experts said.

Speaking at a seminar on February 29, Dr. Su Dinh Thanh, Director of the University of Economics HCM City, the event’s organiser, said it was vital for the city to establish a carbon credit market to shape standards and trends for other localities to promote the carbon market.

“The establishment of a carbon credit market will create green financial resources for technological innovation enterprises in the city,” Thanh said.

The city is preparing for a pilot phase of carbon trading, which is set to begin in 2025, with full operations expected to commence in 2028.

The carbon market is expected to attract investment in renewable energy, environmental technology, and international climate finance. 

It will also promote a green economy and create new job opportunities while enhancing the city’s international reputation in climate change mitigation efforts.

Within Southeast Asia, only Indonesia has implemented a mandatory carbon market for the energy sector. 

As a dynamic and fast-growing city, HCM City is facing various environmental challenges, particularly air pollution, with annual carbon emissions exceeding 60 million tonnes, accounting for over 20% of the nation's emissions. 

Dr. Nguyen Thi Tuyet Nhung, a research group member on the carbon market at the University of Economics HCM City, said the city needed to exploit specific mechanisms and policies through the National Assembly to reduce greenhouse gas emissions and respond to climate change.

Resolution 98 allows the city to pilot a financial mechanism for measures to reduce greenhouse gas emissions via the use of the city’s budget for carbon credit exchange, according to Nhung.

These mechanisms enable the city to control environmental pollution, attract sustainable investments, generate revenue and funding for environmental projects, and fulfil international commitments on emission reduction.

Moreover, voluntary development of the carbon market will help the city generate significant revenue through issuing and selling carbon credits and from emission reduction projects using abundant energy sources such as solar, wind, and waste.

Hoang Le Nam Hai, another research group member on the carbon market at the University of Economics HCM City, said the carbon market would create opportunities to attract investment in renewable energy, environmental technology, and international climate finance.

It would also promote a green economy and create new jobs while enhancing the city’s international reputation in climate change mitigation efforts.

HCM City has set a target of reducing emissions by 10 per cent by 2030 and moving towards a low-carbon economy, with the possibility of a 30% reduction. 

Experts also recommended the city equip businesses and the community with knowledge while enhancing awareness of the carbon market.

It also needs to implement policies to encourage and support businesses in voluntarily setting emission reduction targets, and engaging in carbon credit transactions to offset their emissions.

Vietnam plans to officially run a carbon trade exchange in 2028 under a project conducted by the Ministry of Natural Resources and Environment.

Under the scheme, Vietnam will pilot the operation of this carbon credit market in 2025 to connect and exchange carbon credits with regional and international markets.

From now until the end of 2027, the country will focus on developing regulations on carbon credit management and the exchange of greenhouse gas emission quotas and carbon credits.

The operation of the carbon trade exchange contributes to reducing greenhouse gas emissions under previous climate commitments, especially the goal of Vietnam to reduce net emissions to zero by 2050 under the COP26.

A carbon credit is a kind of permit that represents one tonne of carbon dioxide removed from the atmosphere.

They can be purchased by an individual or, more commonly, a company to make up for carbon dioxide emissions that come from industrial production, delivery vehicles or travel.

January iron and steel imports from China sees drastic upturn

In January Vietnam imported Chinese iron and steel with a value of more than US$1.06 billion, up 27.3% in volume and 22.3% in turnover compared to December, 2023.

According to the latest report from the General Department of Customs, during the reviewed period the whole country imported US$1.61 billion worth of iron and steel of all types and products, marking an increase of 20.1%, equivalent to an increase of US$268 million compared to the previous month.

Compared to the same period from last year, imports of this product group increased by 76.6%, equivalent to a rise of US$696 million.

Of the figure, the amount of imported iron and steel alone reached 1.49 million tonnes, equal to US$1.06 billion with the average price being US$711.9 per tonne, an increase of 27.3% in volume, a rise of 22.3% in turnover, but down 3.9% in price compared to December, 2023.

China is widely viewed as the leader in the iron and steel supply market for Vietnam, accounting for 67.6% of the total volume and 60% of the total turnover, reaching nearly 1.01 million tonnes, equivalent to nearly US$635.66 million.

It is followed by the Indonesian market, accounting for over 4.4% of the total volume and 9.7% of the country's total iron and steel imports.

Statistics compiled by the General Department of Customs also indicate that in January, Vietnamese steel exports increased for the fourth consecutive month, hitting more than 1.16 million tonnes with a value of more than US$822 million.

According to the Vietnam Steel Association (VSA), steel consumption in the year ahead is expected to surge by 6.4% to reach nearly 21.6 million tonnes. Among them, exports of finished and semi-finished steel products are forecast to go up by 12% to nearly 13 million tonnes.

The Vietnamese iron and steel industry is forecast to recover in the time ahead with growth and recovery being seen in the profits of businesses operating in this field.

Vietnam viewed as appealing investment destination

Asiafundmanagers.com (Germany) on February 29 cited a report from VanEck, an American investment management firm as saying that Vietnam could be an appealing investment for investors seeking growth exposure outside of traditional emerging markets.

In a recent in-depth market analysis report, VanEck analyzed Vietnam's transition from a "frontier market" to an "emerging market" and pointed out the reform steps that have helped Vietnam grow dramatically.

John Patrick Lee, product manager at VanEck, said “Vietnam’s economic reforms have created a virtuous cycle: reforms spurred exports, which in turn drove economic growth, leading to increased domestic demand. This trajectory has positioned Vietnam as a dynamic and integral part of the global economy, with a domestic market that continues to show robust growth potential.”

Lee also pointed out that Vietnam's economic growth is driven by a young and growing population, with more than 60% of the population under 30 years old and a literacy rate of over 90%. This advantage is driving domestic demand as the middle class grows with increased disposable income.

Compared to other emerging markets, Vietnam's private consumption to GDP ratio is at an average level.

High domestic demand helps Vietnam withstand external challenges, including protectionist policies from major trading partners such as the US and economic downturns from other countries such as China.

Regarding the stock market, VanEck believes that Vietnam is a new opportunity that investors should consider carefully.

Lee emphasized that despite macro shocks, including the COVID-19 pandemic and economic problems in China, Vietnam's stock market has still outperformed common emerging market benchmarks since 2018.

Lee also said he sees the biggest equity opportunities in financials, real estate and consumer staples.

Vân Đồn to become a city by 2030

Vân Đồn will be developed into a multi-sectoral coastal economic zone and a centre for entertainment, high-end sea tourism and services, according to an urban development programme for the district recently approved by Quảng Ninh Province People’s Committee.

The focus will also be on developing Vân Đồn into a city that is green, sustainable and adaptive to climate change with a synchronous infrastructure system

Vân Đồn will invest in upgrading infrastructure and urban development to meet the class-3 standard by 2025, class-1 by 2030 following the National Assembly Standing Committee’s Resolution No 1210/2016/UBTVQH13 on urban classification.

The programme targets to turn Vân Đồn into a city by 2030.

Under the current planning, Vân Đồn Economic Zone is divided into two spaces for development, of which Cái Bầu Island will be for major functional areas of urban and economic zones and Vân Hải Archipelago for high-end resort tourism, eco-tourism high-tech agricultural production associated with preserving with the ecological landscape and biodiversity in the area.

The planning of Vân Đồn Economic Zone covers the entire area of Vân Đồn District of more than 2,171 sq.km, more than 1,589 sq.km of which is marine area.

By 2030, the population of Vân Đồn will be around 140,000 – 200,000 and 300,000-500,000 by 2040.

If Vân Đồn becomes a city, Quảng Ninh will be the province which has the most cities in Việt Nam. Currently, there are four cities in Quảng Ninh, namely Hạ Long, Móng Cái, Cẩm Phả and Uông Bí.

Under Quảng Ninh Province’s planning in 2021-30 period with a vision to 2050, the northern province will have seven cities. 

Banks pay dividends in shares to increase capital in 2024

Many banks have announced plans to pay dividends in shares right at the beginning of this year, aiming to increase charter capital, improve financial strength, meet capital safety regulations and expand operational scale.

The board of directors of VietinBank (stock code CTG) recently announced the remaining profit distribution plan of 2022, estimated at nearly VNĐ11.69 trillion. Accordingly, the bank will pay dividends in shares based on the approval of the competent authority. In 2023, VietinBank also increased its charter capital to VNĐ53.7 trillion from the remaining profit of 2020.

At a conference earlier this year, VietinBank's leaders proposed to retain profits in 2023 and annual profits in the 2024-28 period to increase capital, improve financial capacity and expand credit growth.

Prosperity and Development Commercial Joint Stock Bank (stock code PGB) has recently finalised the list of shareholders to reward 120 million shares, equal to a total par value of VNĐ1.2 trillion. Capital for the share issuance is taken from the bank’s accumulated profits and reserve fund to supplement charter capital according to the bank's 2022 financial report.

Bac A Bank (stock code BAB) at the end of January completed the 2022 dividend payment in shares at a rate of 7.5 per cent. According to the plan, Bac A Bank issued more than 62.5 million shares with a total par value of more than VNĐ625 billion. Capital source for the issuance was from Bac A Bank's accumulated undistributed profits in 2022. The move helped increase the bank's charter capital from VNĐ8.33 trillion to more than VNĐ8.95 trillion.

Saigonbank (stock code SGB) has recently also been approved by the State Bank of Vietnam to increase its charter capital by a maximum of VNĐ308 billion in the form of issuing shares to pay dividends.

Saigonbank's 2023 annual general meeting of shareholders approved the payment of dividends in shares to existing shareholders at a rate of 10 per cent. Specifically, SaigonBank plans to issue 30.8 million shares to pay dividends.

The central bank has so far encouraged commercial banks to pay dividends in shares to increase capital, aiming to thicken banks' capital buffers and improve financial strength against future risks.

In the context of high bad debts and great pressure on capital supply for the economy, strengthening the capital base of the banking system is especially important.

Deputy Governor of the State Bank of Việt Nam Đào Minh Tú encouraged banks to pay dividends in shares to focus financial resources on handling bad debts in 2024.

According to experts, banks should continue to plan to pay dividends in shares to increase the ability to meet capital as well as financial capacity. The dividend method is considered appropriate in the context that many banks are still having to increase their capital buffers to meet Basel II international banking standards and higher standards. 

Bright outlook for industrial real estate

The industrial real estate segment is expected to remain a "shining light" in terms of investment volumes, development of quality ready-built facilities and strong price performance, according to property consultancy Knight Frank Vietnam.

Alex Crane, the company’s managing director, said supply in the ready-built leasing segment has tripled since 2016.

It was admittedly from a non-existent base, as he explained.

“Investors had to build their own facilities [before 2016]. The maturing of the development market now means ready-built inventory is set to increase 65 per cent in the next three years, which is a tremendous amount and this is encouraging for growth of existing occupiers and new-to-market entrants.

“With this amount of space, we will see rents at stable, affordable levels which will be very encouraging for occupiers.”

Speaking at a Canadian Chamber of Commerce event held recently in HCM City, Crane also highlighted the significance of Decree No 08/2023/ND-CP, which allows bond issuers to extend their maturities.

However, he cautioned that many issuances utilising Decree 08 will now fall due this year alongside those issued in 2021, which would result in many developers feeling similar pressure from the capital market as in the last two years.

While interest rates have stabilised, access to credit for developers remains relatively high, he said, adding that his company believes as a result there would be a natural slowdown in supply, which could soften price reductions through the remainder of the year.

He said the forecast for new apartment launches in 2024 has been reduced by over 50 per cent from the earlier one in 2023 as a result of developers reviewing their timelines and pushing many of these developments into 2025 and 2026.

He said apartment prices in HCM City and Hà Nội were converging, and attributed it to Hà Nội's more rational market behaviour over the last few years, less speculation and more genuine demand.

While optimistic about Việt Nam's overall property market in terms of net demand, he cautioned about the country's growing comparative expense to regional peers. He cited examples of large manufacturers opting for other countries based on cost considerations, pointing to the need for Việt Nam to incentivise the best manufacturers to invest in the country, particularly given the global minimum tax is now applicable in Việt Nam, removing some tax incentives for large players.

Referring to regulatory changes, he welcomed delays in discussions about imposing additional taxes on a second property while the residential market finds a new market-led norm. 

He also expressed optimism about the amendments to the Land Law, viewing it as a positive step for the market in the long term. 

HCM City, Hà Nội serviced apartment rents increase as much as 8%

Rental prices for serviced apartments in HCM City and Hà Nội saw an increase of up to 8 per cent last year, according to a real estate market report.

According to the report by Savills Vietnam, in HCM City, the highest increase of 8 per cent was seen in grade C apartments, while grade B rents rose by 5 per cent and grade A rents by 3 per cent. 

The average rent across all grades in the city was VNĐ516,000 (US$21) per square metre per month, representing a 3 per cent increase. However, this was still 11 per cent lower than rents in 2019.

The occupancy rate in HCM City was 82 per cent, up 6 per cent year-on-year. 

Meanwhile, in Hà Nội, the average rent per sqm was VNĐ580,000 ($23.65), up 1 per cent, with an occupancy rate of 83 per cent.

Experts attributed the increased demand for serviced apartments to the increasing number of foreign experts in the country’s two major cities, with HCM City attracting the highest foreign investment last year.

Despite the growing rents and occupancy rates, the supply of serviced apartments is expected to remain low. 

HCM City is expected to add only 600 units at nine projects by 2025, while Hà Nội is expected to add 450 units, mostly in grades A and B, with Tây Hồ District accounting for 63 per cent of them.

As the economy continues to recover, demand for accommodation is expected to increase steadily, especially in locations near industrial parks, city gateways, and areas with good transport infrastructure, experts noted. 

Experts upbeat about real estate prospects

Experts from top real estate consulting companies in Việt Nam have expressed optimism about development prospects of the real estate market, particularly regarding the office and industrial segments.

According to Savills Vietnam, despite numerous challenges, the interest of foreign investors in the Vietnamese market in general and real estate in particular continues to expand. Fitch Ratings recently upgraded the country’s long-term national credit rating from BB to BB+, with a "stable" outlook. In 2024, Việt Nam's GDP growth rate is expected to reach 6-6.5 per cent, thanks to stable foreign direct investment (FDI) and the Government’s efforts to address real estate challenges, increase public investment, and implement growth stimulation policies in a timely manner.

About 85 per cent of the rapidly growing companies in Việt Nam are committed to the environmental, social, and corporate governance (ESG) standard, creating an increase in demand for green-standard office space in the market.

By 2026, HCM City is expected to provide 300,000 sq.m of new Grade A office space, such as The Nexus project or VP Bank Saigon Tower. Moreover, over 80 per cent of the future Grade A and Grade B office supply in the southern economic hub will meet green standards.

Meanwhile, between now and 2026, Hà Nội will see 15 new projects offering over 389,770sq.m of working space, with Grade A offices expected to account for 86 per cent of the future supply. Green space is projected to constitute 18 per cent of the future office floor area in the capital.

In recent times, many legal regulations have been passed, such as the amended real estate business law, amended housing law, and amended land law.

The head of the Hà Nội and Đà Nẵng offices at Savills Vietnam, Matthew Powell, described the passage of these laws as a positive signal for investment in the real estate market this year, boosting investor confidence.

Việt Nam to welcome large amount of new office supply: Cushman & Wakefield

Việt Nam will welcome a large amount of new office supply in 2024, concentrating on the two main markets of Hà Nội and HCM City, according to analysts from Cushman & Wakefield.

In the Asia Pacific Office Outlook Report 2024 released recently, Cushman & Wakefield said Hà Nội would welcome a total of 80,700 sq.m of new office supply in 2024, mainly in the capital city's central districts.

It noted that another 100,000 sq.m of new Grade A office space was forecast to be put into operation in Hà Nội in the 2024-27 period.

Meanwhile, in HCM City, new Grade A supply is expected in central districts with the launch of three projects in 2024 - 2025, contributing a total of 118,700 sq.m of premium office space to the market, according to the report.

About 81,000 sq.m of additional Grade A supply is also expected in non-central districts during 2024-2026.

Cushman & Wakefield said economic instability had affected general office demand in HCM City as tenants become more and more concerned about costs. The absorption rate was expected to gradually increase from 2024, thanks to new, higher quality supply and improved economic conditions.

Office vacancy rates are predicted to be above 20 per cent throughout 2023–26, driven by continued new supply, according to the report.

In Hà Nội, market demand was strong in the first half of 2023, but slowed down in the second half and is expected to remain low throughout 2024. Vacancy rates are expected at 25-30 per cent in 2023–24 and then gradually decrease to about 20.5 per cent in 2027.

With abundant new supply throughout Hà Nội, the market is hoped to be favourable for tenants in the coming time. Hà Nội's total supply will averagely grow by 3.5 per cent a year from 2023-27.

The Asia Pacific Office Outlook Report is a comprehensive regional report that provides supply, demand, vacancy, and rent data forecasts for cities in Việt Nam and other countries.

India initiates anti-dumping investigation of textured tempered glass from Việt Nam

The Trade Remedies Authority of Vietnam (TRAV) under the Ministry of Industry and Trade has been informed that the Indian Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping investigation on textured tempered coated and uncoated glass products originated or imported from Việt Nam.

The initiation announcement date was made on February 13 this year.

The goods under investigation include textured tempered coated and uncoated glass classified according to HS codes 7003.1990, 7005.1010, 7005.1090, 7005.2190, 7005.2990, 7005.3090, 7007.1900, 7007.2190, 7007 .2900, 7016.9000, 7020.0090 and 8541.4011.

This product is used as a component of solar panels and in solar thermal applications.

The request was filed by Borosil Renewable Limited. The subsidy investigation will cover the period from April 2020 to March 2023 while the loss investigation period will span from June 2022 to June 2023.

In the initiation notice, the DGTR requested relevant parties to provide information, documents and instructions on providing information, time limit for providing information as well as the other related contents.

To promptly respond to the case, the TRAV recommends that relevant parties carefully study the initiation notice, prepare information and documents as required, co-operate fully and comprehensively with the DGTR throughout the entire case process, proactively contact and co-ordinate with the TRAV to receive timely support. 

Việt Nam businesses have chances to join global agricultural supply chains at ASCA 2024

The Vietnam Business Council for Sustainable Development (VBCSD) under the Vietnam Chamber of Commerce and Industry (VCCI) has identified the Agricultural Supply Chain Asia conference (ASCA), scheduled for March 18-23 in Bangkok, as a significant event for Vietnamese enterprises to foster connections and stimulate trade discussions and business opportunities for agricultural products from the US and many other nations.

Co-hosted by the US Grains Council, the US Wheat Associates, and the US Soybean Export Council, ASCA has served as an important business-to-business platform and a prominent highlight in the Crop Calendars for Southeast Asia.

According to VCCI, Vietnamese businesses participating in this event will gain insights into potential partnerships and business prospects. Enterprises involving in agriculture, import-export, transportation and logistics, grain trading, food and feed production, as well as government and private entities specialising in purchasing, quality control, transportation analysis, and agribusiness consulting are encouraged to participate in this event.

The conference will be held both in-person and online, attracting a diverse audience of agricultural representatives from around the world.

Delegates will engage in discussions focused on integrating sustainability and innovation in agriculture for future development. They will share market updates and insights, analyse current challenges, and collectively envision the future direction of agriculture and food sectors in Southeast Asia.

Indonesia invites bids for 300,000 tons of rice

The National Logistics Agency of Indonesia (Bulog) is seeking to bolster the indonesian food reserves by inviting bids for an additional 300,000 tons of rice.

The bidding comes on the heels of a successful bid for 500,000 tons in January. The rice sought by Indonesia this time is of the 5% broken rice variety, with a stipulation that it must belong to the 2023-2024 crop and have been milled within the last six months.

Last month, Vietnamese firms secured contracts for over 300,000 tons out of the 500,000 tons of 5% broken rice sought by Indonesia.

Le Phat Long, director of Phat Tai Food Company and one of the participating bidders in January, told The Saigon Times that Indonesia entered negotiations with companies offering the lowest prices in the second round.

While the lowest offer did not guarantee success, it ultimately depended on negotiations and willingness to adjust prices.

Vietnamese businesses secured the winning bids with an average price of US$655 per ton, with the lowest successful bid staying at US$645 per ton.

Delivery to Indonesia is required by March 31.

Viet Nam’s PMI increases to 50.4 points in February

The Vietnamese manufacturing sector continued to grow marginally in February, with both output and new orders up for the second consecutive month, according to S&P Global.

In its latest report on the Vietnamese manufacturing sector, S&P Global found out sustained improvements in new orders support job creation, output prices increase following fall in January and business sentiment at one-year high.

The S&P Global Viet Nam Manufacturing Purchasing Managers' Index (PMI) posted 50.4 in February, up fractionally from 50.3 in January and above the 50.0 no change mark for the second consecutive month. The rate of improvement in the health of the sector signaled by the index remained only marginal.

Andrew Harker, Economics Director at S&P Global Market Intelligence was quoted as saying that Vietnamese manufacturers were able to build on the return to growth seen in January with a further expansion in February. Particularly positive elements of the latest PMI survey were renewed job creation and the strongest business confidence for a year.

"The overall expansion remained relatively muted, however, and this led to further caution with regards to purchasing and inventory holdings. Likewise, although output prices increased following a fall in January, the rate of inflation was only marginal as some firms remained reluctant to hike prices in a competitive environment,” he added.

He suggested manufacturers need to see stronger and sustained growth of new business before they can be confident enough to invest in inputs and start to raise their selling prices more in line with their own cost burdens.

Earlier, S&P Global reported that in January, the country’s PMI reached 50.3 points from 48.9 points in December last year. The result indicated an improvement in the health of the manufacturing sector for the first time in the last five months.

Vietnam to issue VND400 trillion of G-bonds this year

The Government of Vietnam plans to launch VND400 trillion bond auctions on the Hanoi Stock Exchange this year, the local media reported.

In a recent directive on first-quarter budget management, the Ministry of Finance urged the Vietnam State Treasury (VST) and relevant departments to tighten fiscal oversight and policy compliance.

To fulfill borrowing requirements, the VST has been tasked with raising VND108 trillion through the sale of G-bonds on the domestic market in the first quarter. The focus will be on tenures of five years or longer, in accordance with National Assembly Resolution 07-NQ/TW dated November 18, 2016.

Last year, the VST auctioned G-bonds worth nearly VND298.5 trillion, achieving 98% of the adjusted target of the Ministry of Finance.

All G-bonds will be auctioned on the Hanoi Stock Exchange. The diversification of issuance maturities aims to restructure the G-bond portfolio towards longer durations. This move is intended to alleviate short-term debt repayment pressure and reduce borrowing costs, aligning with the Government’s financial restructuring agenda.

Japanese firms concerned about counterfeits on e-commerce platforms in Vietnam

Japanese businesses have raised the alarm over the rampant sale of counterfeit goods resembling Japanese-made products on e-commerce platforms in Vietnam.

The Japan Patent Office (JPO) and the Japan External Trade Organization (JETRO), in collaboration with Vietnam’s Directorate of Market Surveillance under the Ministry of Industry and Trade (MoIT) and the Ministry of Science and Technology (MoST), held a workshop on intellectual property rights in Hanoi yesterday, February 28.

Kikkoman, known for its expertise in soybean sauce production, said that counterfeit Kikkoman products have been found in several northern provinces that border China.

The company noted that most of its products are made in Thailand and Singapore, while Kikkoman products made in China are for consumption there, not for export. Therefore, the made-in-China Kikkoman products that are on sale in Vietnam are counterfeit, it said.

Similarly, a Panasonic representative said there are many fake electric products and home appliances such as hair dryers, kettles and batteries. These counterfeit items are widely distributed on social networks and online marketplaces.

Nguyen Nhu Quynh, head of the inspection team at the Ministry of Science and Technology, emphasized Vietnam’s commitment to enforcing international regulations on counterfeit prevention. Despite these efforts, she acknowledged the challenges faced by authorities in inspecting, verifying, and sanctioning counterfeit trade on e-commerce platforms.

Vietnam has been carrying out a project to combat counterfeit products and safeguard consumer interests since 2023. The project is part of the country’s broader effort to enhance policy and regulatory frameworks for inspecting and managing product standards, quality, and intellectual property infringements in e-commerce transactions.

By 2025, Vietnam aims to ensure that major e-commerce platforms pledge not to facilitate the sale of counterfeit goods and prohibit individuals and organizations from engaging in such practices.

Association works to promote circular economy

Diversifying long-term strategies in supporting businesses to offer high-quality products is among the orientations set out by the Business Association of High Quality Vietnamese Products for the 2024-2028 tenure to promote circular economy.

At its third congress on March 1, the association decided that it will coordinate with domestic and foreign units to step up activities to equip farmers, businesses and startups with knowledge about domestic and foreign market standards.

To achieve the set targets, it will build a chain of indigenous specialty stores nationwide, introducing made-in-Vietnam high-quality products, those with geographical indication (GI) certifications, and items under the “One Commune-One Product” programme.

The association will continue its coordination with Mekong Delta cities and provinces to roll out effective models and programmes such as the Mekong Connect Forum to look into issues regarding state policies and the utilisation of local resources, said its chairwoman Vu Kim Hanh.

Over the past tenure, apart from studying the market and collecting feedback from consumers to select high-quality Vietnamese products, the association played a role in trade promotion and the communications work, and intellectual property (IP) protection.

The congress elected a 15-member executive board for the 2024-2028 term, with Hanh re-elected as its chairwoman.

Consumption surge in Tet gives a boost to domestic market growth: Experts

A strong rise in goods consumption without any shortage or price hikes during the Lunar New Year (Tet) festival is considered a push for the growth of the domestic market in the whole year.

As early as the end of October, 2023, the Ministry of Industry and Trade (MoIT) urged localities and businesses to prepare plans to stockpile goods for Tet, the biggest festival in a year for Vietnamese, while launching a market stabilisation programme and strengthening market management and food safety protection.

In Hanoi, the Department of Industry and Trade reported that the total value of consumed goods during Tet rose about 10% year on year to 40 trillion VND (1.63 billion USD).

Experts held that the peak shopping season during Tet is always a push for production and business activities, promoting the growth of the domestic market.

In the context that the Government is focusing on the domestic market towards an economic growth of 6.5% and inflation of 4-4.5% in 2024, the supply-demand connection and stimulation of domestic product consumption is key to the stable and sustainable development of the national economy in following years, they asserted.

Economist Ngo Tri Long said that along with speeding up public investment and removing difficulties facing businesses, it is necessary to boost the growth of the domestic market by reducing value added tax and adjust personal and corporate income taxes to suit the new situation.

Long advised businesses to adjust their production and business methods to provide high quality products to consumers in a fast manner at reasonable prices, while applying promotion policies and build reputations for their brands.

Meanwhile, businesses underlined the need for long-term and stable consumption stimulating policies as well as direct support to enterprises such as cutting down land rent.

The MoIT said that in order to continue ensuring goods supply and market stability, the ministry will keep a close eye on the development of the market and prices to make timely response, while coordinating with other ministries and sectors in regulating prices of State-managed goods, including petrol, contributing to boosting the domestic market and motivating the country’s economic growth in 2024.

Australian policy think tank hails Vietnam’s economic dynamism within ASEAN

The Interpreter, a publication of the Australian-based international policy think tank The Lowy Institute, has recently published two articles mentioning the Vietnam-Australia relations and Vietnam's economic potential within the Association of Southeast Asian Nations (ASEAN), against the backdrop of the upcoming ASEAN-Australia Special Summit in Melbourne from March 4-6.

In an article titled “What to watch at the ASEAN-Australia summit,” author Susannah Patton wrote: “Most of the ASEAN leaders will be visiting Australia for the first time, at least in their terms in office. This means a big focus will be on relationship building.”

The article noted that Vietnamese Prime Minister Pham Minh Chinh and his Philippine and Malaysian counterparts Ferdinand Marcos and Anwar Ibrahim are undertaking separate bilateral programmes to mark their first visits to Australia since taking office.

The summit will include a CEO Forum and briefings to help Australian small- and medium-sized enterprises do business in Southeast Asia, it said.

Meanwhile, another article titled “The parts within the whole: Understanding Southeast Asia’s economies" by Hannah Denson, assessed that Vietnam’s large manufacturing base and low-cost production have made it a key trade beneficiary as global companies shift. Combined with the return of overseas tourists, this partly explains Vietnam’s steady 5.1% growth rate in 2023.

Considering the electric vehicle industry a potential new source of growth across Southeast Asia, the author said Vietnam is home to the region’s first US‑listed electric vehicle company, VinFast.

PM Pham Minh Chinh and his spouse will attend the ASEAN-Australia Special Summit to commemorate the 50th anniversary of the sides’ dialogue relations, and pay official visits to Australia and New Zealand from March 5-11, the Ministry of Foreign Affairs has announced.

The PM's attendance at the summit and visits will be made at the invitation of Australian Prime Minister Anthony Albanese and Prime Minister of New Zealand Christopher Luxon.

Da Nang steps up cooperation with Thailand’s Ubon Ratchathani province

Da Nang commits to creating favourable conditions for Thai enterprises to study and carry out business activities in the central city, Chairman of the municipal People’s Committee Le Trung Chinh said on March 1.

Hosting a reception for a delegation from Thailand’s Ubon Ratchathani, led by Governor Supasit Kocharoenyos, Chinh said that Da Nang, the nucleus for growth of the central key economic region, has set up cooperative ties with 48 localities of 22 countries and territories across the globe, including Mukdahan, Nakhon Phanom, Phuket and Chiang Mai of Thailand.

The city is working to promote cooperation with localities that boast similarities in culture, society, economy and tourism for future development, he said. The East-West Economic Corridor from Thailand to Da Nang is convenient for businesses from Ubon Ratchathani to study the market to bolster connectivity for economic development in each locality.

Chinh added that Da Nang’s key industrial products include seafood, garment and textiles, leather shoes, engineering, building materials while high-tech industry, particularly IU, is being branched out into an economic spearhead.

Supasit, for his part, said that the Thai province is striving to develop a border trade route with neighbouring countries.

The province has established twining ties with Quang Nam and Kon Tum provinces, he said, stressing Da Nang is the most-visited destination in the central Vietnam by Ubon Ratchathani people.

He went on to say many Da Nang students are pursuing study in Ubon Ratchathani, describing them as a resource that helps connect economy, culture and tourism between the two localities.

He expressed his hope that Da Nang and Ubon Ratchathani will set up official ties soon, and pledged to serve as a bridge to link local businesses with the Vietnamese city.

Over the past time, together with the sound political relations, Da Nang and its Thai partners have enjoyed robust economic-trade cooperation.

Thailand is among the largest importers of Da Nang enterprises. Last year, Da Nang shipped 3 million USD worth of products to Thailand while spending 22 million USD on Thai goods.

Thai firms funneled nearly 64 million USD into 15 valid projects in Da Nang, most of which are in trade, retail sales, production, garment and textiles, design, construction and IT.

Tan Son Nhat International Airport welcomes over 3.8 million passengers during Tet holiday

The Tan Son Nhat International Airport in Ho Chi Minh City served 24,000 flights and over 3.8 million passengers during the Tet (Lunar New Year) peak period from January 26 to February 24.

Among them, there were 8,232 international flights and 16,270 domestic flights. Domestic passengers also made up the majority with 2.43 million visitors and the rest were foreigners.

The airport handled 817 flights with more than 127,400 passengers a day on average in the period. There were 975 flights landing in and departing from the airport with nearly 154,000 passengers on February 18 alone.

A representative of the airport said that the number of flights and passengers during the Lunar New Year 2024 increased by about 1.42% year-on-year. Of which, the domestic terminal saw a decline of 12.15%  while international terminal a rise of 34.7%.

It has proactively coordinated with taxi companies and tech-based hailing service providers to increase the number of vehicles serving the passengers during the holiday, with airlines in updating flight schedules, and with competent forces in ensuring security and traffic order, the representative added.

The launch of the Airport Collaborative Decision Making (A-CDM) model at the airport from February 1 have helped improve operational efficiency, including a higher on-time performance rate and improved luggage and cargo handling thanks to better flight planning.

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