Binh Duong Province has earmarked 1,300 hectares of land to accommodate around 2,900 enterprises and factories set to be relocated from residential areas between 2024 and 2030.

Numerous facilities currently located in residential areas across Thuan An, Di An, Tan Uyen, and Thu Dau Mot cities will be required to move to industrial clusters in Bau Bang and Dau Tieng districts. The province also plans to establish specialized industrial clusters to house pottery factories and wood processing facilities.

In a bid to support the relocated facilities, authorities have proposed a range of incentives, including the conversion of land use purposes, deferment of fee payments for land use conversion, and reduced lending rates for the construction of new facilities.

Moreover, projects involved in building infrastructure for industrial clusters will be exempt from land rentals for 11 years and eligible for Government loans not exceeding 70% of the total investment capital.

The province is also considering allowing 70% of the factories subject to relocation to inherit the land use rights at their current locations.

According to authorities in Binh Duong, the decision to relocate factories in the southern province is driven by several factors, including the failure of some facilities to meet environmental protection and fire prevention requirements. Furthermore, the plan aims to repurpose land for future service development, urban revitalization, and social housing projects.

HCMC wants faster public investment disbursement

The slow pace of public investment disbursement remains a pressing concern for HCMC, with only 2% of the allocated funds disbursed thus far this year, the city’s Chairman Phan Van Mai said today, March 6.

Speaking at a review conference on the city’s socio-economic performance in the first two months of the year, Mai noted that in January and February, the city disbursed VND1.6 trillion. While this represents a fourfold increase compared to the same period last year, it falls far short of the targeted 10% for the first quarter.

To meet the first-quarter target, the city must disburse VND1.6 trillion per week in March, which is a huge challenge, said Mai.

He emphasized the need for decisive action to fuel economic growth, particularly by accelerating the disbursement of public investment capital.

Mai urged departments and developers to prioritize the progress of projects, stressing the importance of closely monitoring action programs to achieve the target of disbursing at least 10% of the total allocated capital in the first quarter of 2024.

This year, the city aims to disburse 95% of its allocated capital, amounting to around VND79.2 trillion, which is VND11.2 trillion higher than last year’s target.

During the conference, Le Thi Huynh Mai, director of the HCMC Department of Planning and Investment, reported that the city’s real estate market showed signs of recovery in the first two months of this year, with revenues from real estate business increasing by 20.1% year-on-year.

Credit expanded by 0.6% in February compared to the previous month. The city also saw a rise in businesses resuming operations and new market entrants against the same period in 2023. The city’s index of industrial production in January-February rose by 4.3% year-on-year.

SBV weighs rule on special loans for bank runs

The State Bank of Vietnam (SBV), the central bank, is currently reviewing a regulation on special loans for commercial banks experiencing massive cash withdrawals.

This regulation is outlined in a draft circular on special loans, which is being circulated to gather feedback.

Such special loans will be sourced from the central bank’s funds designated for fulfilling payment obligations towards depositors in credit institutions struggling with bank runs.

According to the draft circular, the SBV will determine the loan amounts based on the repayment capacity of the financial institutions requesting special loans, and the loan duration will not exceed 12 months.

These special loans will come with favorable lending rates, equivalent to the loan refinancing rates guaranteed by valuable documentation, including Government bonds and the SBV’s short-term bonds.

Moreover, commercial banks under special control may also receive special loans to facilitate approved compulsory transfers.

Borrowers will only be permitted to utilize special loans to make payments in Vietnamese currency for individual depositors at the borrowers. Other payment obligations of the credit institutions will be subject to the discretion of the SBV governor.

Convention held to seek effective measures for rice export in new situation

The SS Rice News Convention 2024 was held yesterday in Da Nang City, attracting the participation of experts and over 400 businesses of rice import-export and supporting services.

In the meeting, Director Nguyen Anh Son of the Import-Export Department (under the Ministry of Industry and Trade) informed that rice export turnover in January reached US$362 million, a rise of 7 percent compared to this time last year.

It is estimated that rice prices will continue their increase this year because supply sources are rarer due to export limits from India. The potential damages caused by El Nino to major rice farming areas in the world add to the concern rice supply shortage.

During the two days of the convention, participants focus on discussing possible trends in global rice markets and the shipping market, the potential influences of current weather and political states on the rice industry.

HCMC welcoming innovative startups via practical supporting policies

The HCMC Science and Technology Department held the conference ‘Introducing policies to support innovative startup projects in HCMC’ to boost the sustainable growth of its startup ecosystem.

In the conference, the HCMC Department of Science and Technology announced the city’s financial aid to innovative startup projects in three distinct stages besides other preferential policies:

Pre-incubation: VND40 million (US$1,620) per project for no more than 6 months (consisting of a labor wage of VND10 million ($405) and other expenses of VND30 million ($1,215);

Incubation: VND80 million ($3,240) per project for no more than 12 months (labor wage of VND30 million ($1,215) and other expenses of VND50 million ($2025);

Acceleration: VND400 million ($16,200) per project for no more than 12 months (labor wage of VND150 million ($6,070) and other expenses of VND250 million ($10,130).

In its 12th meeting on November 11, 2023, the 10th HCMC People’s Council approved Resolution No.20/NQ/HDND about priority fields, conditions and support levels for innovative startup projects in the city.

The eligible subjects of this resolution are individuals, groups, and businesses with innovative startup projects in the city’s priority fields of e-commerce, financial technology, logistics, educational technology, healthcare, hi-tech agriculture, sustainable development, digital transformation, and cyber security.

The criteria to select an innovative startup project for the financial aid in 2024 above include innovation, implementation capability, socio-economic effects, potential markets, business model.

“In 2024, startup-related activities like registration, support, incubation must all be updated precisely on the online platform Ho Chi Minh city Open innovation (H.OIP). This is a tool to link members in the innovative startup ecosystem of the city to strengthen the connection among startups and other organizations to share knowledge as well as address potential problems and transfer technologies”, said Vice Chairwoman Phan Thi Quy Truc of the Office for Technology and Technological Market Management (under the HCMC Department of Science and Technology).

According to the project to support the growth of the city’s innovative startup ecosystem in the 2021-2025 period, in 2024, HCMC will boost the innovation capacity of 900 businesses and incubate 300 innovative startup projects, with a clear focus on developing suitable infrastructure and supporting services in order to form a network of centers for innovative startups.

The municipal Science and Technology Department is assigned to deliver support to commercialize products of innovative startups, help small and medium-sized enterprises to improve their performance, and promote innovative activities in the public sector.

Meanwhile, with Plan No.433/KH-UBND about supporting policies for innovative startup projects in the 2024-2028 period, HCMC aims at offering aid to more than 1,000 such projects at their pre-incubation stage, 700 at their incubation stage, and 200 at their acceleration stage to approach venture capitalists by 2028.

Director Nguyen Viet Dung of the HCMC Department of Science and Technology shared that in 2015, the city’s innovative startup ecosystem was merely at its beginning stage. Thanks to the Government’s project of ‘Supporting national innovative startup ecosystems until 2025’, along with multiple practical policies of the city, HCMC now has a good ranking in the global map of these ecosystems, staying at the 113rd position out of 1,000 cities worldwide.

“The enthusiastic cooperation between the State and academies, universities, incubators, businesses is expected to help HCMC surpass its set targets by 10-20 percent after 5 years adopting Resolution 98”, said Director Dung.

Plan No.433/KH-UBND also mentions training sessions for innovative startups, and HCMC is going to hold such sessions about policies and their implementation methods to state management units who receive money to carry out those policies each year.

Particularly, the city is going to provide help to any innovative solutions, products, services that can be applied in reality and evaluate their implementation capability under the form of performing science-technology missions.

Hanoi's US$257-million industrial park on plan

Hanoi will build a new industrial park in Dong Anh District with an investment of nearly VND6.34 trillion (US$257 million), of which about VND1.27 trillion (US$51.4 million) will be contributed by the main investor - the Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex).

The industrial park will cover a total area of nearly 300 hectares on the land of Dong Anh town and the communes of Nguyen Khe, Xuan Non, Thuy Lam, and Lien Ha.

Construction will be carried out in two phases. The operating life of the industrial park will reach 50 years.

Deputy Prime Minister Le Minh Khai has tasked the Ministry of Planning and Investment to take the lead and work with others to oversee the project in accordance with the law.

The Hanoi People's Committee is responsible for ensuring the accuracy of the project's data and reporting, as well as its compliance with the city's development plans and related legal documents.

The local government must ensure that the project is properly located in the designated area. It is unacceptable to use the area designated for the development of the industrial park for other purposes without the approval of the Prime Minister and in violation of the law.

Priority and incentives should be given to small and medium-sized enterprises (SMEs) and other enterprises that benefit from the government's business development policies.

The Hanoi People's Committee, the Hanoi Industrial and Processing Zone Management Board, and relevant agencies are required to supervise project implementation and instruct investors and contractors to meet regulatory standards.

Ba Ria - Vung Tau's exports up 10.5% in two months

The southern province of Ba Ria – Vung Tau shipped over 1.25 billion USD worth of products abroad in the first two months of this year, a year-on-year increase of 10.5%, according to the provincial Department of Industry and Trade.

Asia remained the province's largest export market with nearly 807 million USD, followed by the EU (over 280 million USD) and the Americas (nearly 94 million USD).

Local firms attributed the robust rebound in exports to the global demand’s recovery and falling inflation.

This year, the province eyes over 6.97 billion USD in export revenue, up 3.05% from the previous year, with crude oil export turnover expected to rise 3.28% to 5.56 billion USD.

The Department of Industry and Trade said the world's slow economic growth, weak consumption demand and rising protectionism will make 2024 a challenging year for local trade activities.

Besides, large importers such as the US and the EU are tightening their belts, resulting a fall in the volume of orders, while domestic industrial production like garments and textiles, leather shoes and electronic products hinge on exports, with only 10% for domestic consumption and the remaining 90% for foreign markets.

Against this backdrop, the provincial People’s Committee has directed competent sectors and localities to focus on improving the local business climate to support enterprises in developing production and ensuring sustainable supply for exports.

Deputy Director of the Department of Industry and Trade Vu Bich Hao said the department will keep a close watch on the local production to remove roadblocks in a timely manner, and accelerate the implementation of three strategic breakthroughs, namely human resource training, improvement of institutions and infrastructure development.

Furthermore, the department will help businesses capitalise on existing free trade agreements, enhance trade promotion, and provide them with market information and that related to policies and technical standards of foreign countries.

Aquatic product exports likely to hit 9.5 billion USD this year: VASEP

Vietnam's aquatic product exports could reach 9.5 billion USD in 2024, said Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP).

Data from VASEP showed that aquatic product exports raked in over 1.3 billion USD in the first two months of 2024, up 23% year-on-year. Of which, both shrimp and tuna exports increased by 37% compared to the same period last year while tra fish (pangasius) exports rose by 15% and other types of fish by 8%.

Kim Thu, a shrimp market expert, said by the end of February, shrimp export turnover reached approximately 460 million USD. Such markets as China, the US, Japan, Canada and Australia, have all seen substantial increases, she added.

In January, China surpassed the US to become Vietnam's largest shrimp importer. It is forecast that China's shrimp imports in 2024 will increase, creating more opportunities for Vietnamese shrimp.

Pangasius export turnover in the first two months of this year was also positive after recording consecutive declines in 2023, raking 275 million USD. Exports to some markets like the US and China will bounce back due to reduced inventories and increasing demand. The pangasius market of China is expected to be more vibrant thanks to the country’s support policies to stimulate consumption in the first half of 2024.

However, insiders said there are still challenges to overcome such as oversupply, high inventories, lower purchasing prices and increased competition. Tensions in the Red Sea leading to increased transport costs, the European Commission's "yellow card" warning against Vietnamese seafood and anti-subsidy lawsuits will likely pose additional difficulties for businesses this year.

VASEP's Director for Communications Le Hang said that the US and EU's bans on Russian aquatic products as well as China's ban on Japanese aquatic products, and the US and EU's warnings against forced labour at China's processing factories are motivating US, European and Japanese businesses to seek processing partners in Vietnam.

Hang advised Vietnamese businesses to review their market strategies and suggest them focus on the domestic market with a population of 100 million as their living standards have improved.

VASEP Chairwoman Nguyen Thi Thu Sac urged businesses to take measures to turn these challenges into opportunities, exploiting and developing suitable products for international markets.

High-quality products announced as voted by consumers in 2024

The Business Association of High-Quality Vietnamese Products on March 7 announced a list of 529 businesses with products winning the high-quality title voted by consumers in 2024.

Among the businesses, 32 have been on the list for 28 consecutive years since the High Quality Vietnamese Goods Programme was launched. Meanwhile, 16 have entered the list for the first time.

Outstanding names in the list include Asia Bakery-Confectionary Co. Ltd., Tho Phat Food Processing One Member Company Limited, Ha Long Canned Food JSC, VISSAN JSC, Cholimex Food JSC, Vietnam Dairy Products JSC (Vinamilk), Van Thanh Mattress Company Ltd., An Phuoc Garment Embroidery Shoes Co. Ltd, My Hao Chemical Cosmetics JSC, and Saigon Cosmetics JSC.

In the ABCD Mekong regional network, An Giang has the highest number of voted businesses with 15. The followers are Can Tho and Dong Thap with 13 each, and Ben Tre with seven.  

The vote for Vietnamese high-quality products this year received feedback from over 70,000 consumers across the country.

According to Vu Kim Hanh, Chairwoman of the Business Association of High Quality Vietnamese Products, the results unveil new businesses winning the title for the first time for their innovative efforts in distribution activities, and increasing presence in distribution systems. Most of the newly emerging businesses are food suppliers, and typical enterprises in production practices and achieving OCOP certification.

The dried and instant food sector has the highest number of voted businesses, followed by the sauce and seasoning industry, Hanh said.

A ceremony to announce and award certificates to high-quality Vietnamese businesses in 2024 will be held in HCM City on April 13, Hanh added.

Nearly 28.2 trillion VND worth of G-bonds raised in February

The Hanoi Stock Exchange (HNX) held 12 auctions of government bonds with a total volume of nearly 28.2 trillion VND (1.1 billion USD) in February.

Interest rates saw an upward trend, reaching 1.42% for 5-year bonds, 2.31% for 10-year bonds, 2.51% for 15-year bonds and 2.65% for 20-year bonds.

According to HNX, the trading value of G-bonds on the secondary market reached 9,363 billion VND a session, up 2.91% compared to the previous month due to the week-long Lunar New Year holiday. Of the figures, outright transactions accounted for 58.58%, while the rest was those via repurchase agreement. The proportion of trading value by foreign investors accounted for 1.86% of the total.

Bonds with 10-, 10-15-, and 7-year maturity were traded the most, accounting for 16.92%, 15.15% and 12.66%, respectively.

Cashless payments surge by over 63%

Non-cash payment transactions increased by 63.3% in volume and 41.45% in value in January, compared to the same period last year, the State Bank of Vietnam (SBV) has announced.

According to the central bank, internet banking transactions surged by 57.85% in volume and 32.43% in value. Mobile banking transactions increased by 68.54% in volume and 41.12% in value. Notably, QR code payments skyrocketed by 892.95% in volume and 1,062.01% in value.

Meanwhile, the amount and value of point-of-sale (POS) transactions rose by 16.87% and 13.65%, respectively. The figures for transactions via automated teller machines (ATM) went down by 15.14% and 18.76%, respectively.

These results illustrate a clear trend towards transitioning from cash to cashless payments.

Towards digitalisation in banking operations, the SBV has encouraged credit institutions to implement digital transformation and collaborate with various sectors to develop and expand the digital ecosystem, which focuses on customer-centric product and service offerings with seamless and personalised transaction experiences.

Many basic banking services have been completely digitalised, including deposits, bank accounts opening and using, e-wallets, and money transfers. Many Vietnamese banks now have over 90% of their transactions conducted via digital channels.

By the end of 2023, about 40 banks and foreign bank branches had opened 35 million accounts via the eKYC (electronic Know Your Customer) process. The number of individual payment accounts reached over 182.88 million last year, up 21.8% compared to the same period in 2022, with indicators of non-cash payments growing well.

Vietnam, New Zealand eye further trade growth

Economic and trade ties between Vietnam and New Zealand have developed continuously since the upgrade of bilateral ties to strategic partnership in September 2009, and the upcoming visit to New Zealand by Prime Minister Pham Minh Chinh is an occasion for leaders of both countries to discuss orientations to further consolidate political trust and multifaceted cooperation. 

According to the Vietnamese Ministry of Industry and Trade’s Asia-Africa Market Department, Vietnam is now the 14th largest trade partner of New Zealand. Meanwhile, New Zealand stands as the 38th biggest trade partner of Vietnam.

In 2022, two-way trade hit 1.4 billion USD, up 5.7% from 2021. A year later, it dropped to 1.3 billion USD, of which, Vietnam's exports to New Zealand reached 648.9 million USD, down 7.1% annually, mostly mobile phones and components, computers, electronics and spare parts, seafood, cashew nuts, footwear. Its major imports from New Zealand consisted of milk and dairy products, fruits, wood, textile and footwear materials, leather and footwear, machinery, equipment, tools, spare parts, scrap iron and steel. 

As of November 2023, New Zealand invested in 52 projects in Vietnam with a total registered capital of 208.35 million USD, ranking 39th out of 143 countries and territories investing in Vietnam. They focused on real estate business, education and training, processing and manufacturing, agriculture, forestry and fisheries, administrative and support services, construction, among others.

In particular, New Zealand has committed to providing Vietnam with 26.7 million NZD in non-refundable Official Development Assistance (ODA) from July 1, 2021 to July 30, 2024, focusing on agriculture, climate change adaptation, education and COVID-19 response.

Minister of Industry and Trade Nguyen Hong Dien said given their membership in various cooperative frameworks and their complementary economies, both Vietnam and New Zealand are actively pursuing deeper integration into the global economy. He said the two sides have agreed to work together to hold business and trade events, and share experience and information between their Government agencies and business communities to curb the reduction in trade.  

At the recent meeting of the Vietnam-New Zealand Joint Economic and Trade Commission, Deputy Minister of Industry and Trade Phan Thi Thang proposed coordinated efforts to achieve the 2 billion USD trade target set by their leaders, with a focus on trade and investment, hi-tech agriculture and agricultural trade, safe agricultural supply chains, labour, education and training, aviation tourism.

To capitalise on the available potential and opportunities for trade, the Vietnamese firms are advised to thoroughly study free trade agreements (FTAs) of which both countries are members, work out long-term strategies, follow stringent regulations and quality standards of the target market and actively join trade promotion activities like fairs and exhibitions to connect with potential partners and showcase their products.