Airports Corporation of Việt Nam (ACV) will borrow a total of US$1.8 billion from three commercial banks over 20 years to invest in Long Thành International Airport, set to become the country's biggest airport.

The plan was approved by the ACV’s Board of Directors.

The credits will be provided by the Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank), Việt Nam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and the Bank for Investment and Development of Việt Nam (BIDV), among which Vietcombank will oversee the loans’ collaterals.

Those are off-plan and existing assets which will be issued as mortgages.

The $1.8 billion loan will be invested in the third component of the four-part first stage of the Long Thành International Project and will include monies invested in passenger terminals, taxiways and aircraft aprons, with a total investment of VNĐ99 trillion (US$3.9 billion).

Plans would eventually see Long Thành International Airport capable of handling 100 million passengers and five million tonnes of cargo a year.

The project has three phases with a total investment of around VNĐ336.63 trillion. The first phase, estimated to cost VNĐ114 trillion, is expected to go operational in the fourth quarter of 2026 to handle around 25 million passengers.

Long Thành International Airport would then become the biggest airport in Việt Nam and a robust transition hub for the region.

ACV reported revenues of more than VNĐ5.66 trillion, profits of more than VNĐ2.9 trillion in the first three months of this year, up 19 per cent and 79 per cent respectively, against the same period last year.

The company has stated it wants to record revenues of VNĐ20.325 and a pre-tax profit of VNĐ9.378 trillion for 2024.

ACV, which operates 22 airports across Việt Nam, traded at VNĐ97,000 at the opening, up from around VNĐ64,000 at the beginning of this year.

ACV is currently the exclusive provider of aviation services for all domestic and foreign airlines. 

Northern midlands, mountainous region targets VNĐ2.1 quadrillion economy

The economic scale of the northern midlands and mountainous region is expected to reach VNĐ2.1 quadrillion by 2030, according to newly approved regional planning.

It is set to become a region with high average income with some provinces classified as being well-developed and approaching the high income threshold.

The average Gross Regional Domestic Product (GRDP) of the 2021-30 period will reach 8.5 to 9 per cent per year. Construction and industry will be the largest contributor to the region’s GRDP.

GRDP per capita at current prices is set at over VNĐ140 million per person per year, according to the plan.

By 2030, the northern midlands and mountainous area will become a green, sustainable and comprehensive development region.

It looks to develop internally-connected infrastructure and others connecting with the Red River Delta, Hà Nội and the north central sub-region.

Sectors to be developed are processing, manufacturing, energy; high-value, organic, specialty, green, circular agriculture; border gate economy and tourism.

By 2030, the region’s urbanisation is expected to reach 40 per cent. About 80 per cent of the communes will be classified as the new rural-style areas.

The plan also sets the target of 65 to 70 per cent of the region’s labourers having been trained. About 35 to 40 per cent of the labourers are expected to own degrees or certificates.

It also aims at universal primary school education with 100 per cent of children under the age of primary students going to school by 2030.

As forest protection and restoration have been identified as the region’s key tasks, especially watershed forests, to develop a sustainable forestry sector. The region's forest coverage rate will be about 54 – 55 per cent.

The regional planning said the northern midlands and mountainous region must focus on developing infrastructure, with priority given to the transportation system connecting with Hà Nội, the Red River, the North Central sub-region and with China and Laos.

Construction of Lạng Sơn – Hà Nội, Lào Cai – Hà Nội – Hải Phòng – Quảng Ninh high-speed railways will be accelerated as part of efforts to foster regional connectivity.

The region must also build and upgrade infrastructure including logistics infrastructure, infrastructure of border gate economic zones, tourist areas, information and communication infrastructure and digital economic infrastructure.

The region must establish industry clusters and regional product chains concentrated mainly in Bắc Giang – Thái Nguyên – Phú Thọ – Hòa Bình and expand regional growth poles in Thái Nguyên, Bắc Giang, Lào Cai, Sơn La, Lạng Sơn and Phú Thọ.

The northern midlands and mountainous region consists of 14 provinces, namely Cao Bằng, Điện Biên, Bắc Giang, Bắc Kạn, Hà Giang, Hòa Bình, Lạng Sơn, Lai Châu, Lào Cai, Phú Thọ, Sơn La, Thái Nguyên, Tuyên Quang and Yên Bái.

The region’s northern part borders with Guangxi and Yunnan, China. The western part borders Laos while the eastern and southern parts border the Red River Delta and the north central and central coastal regions. 

SBV tightens foreign exchange oversight

The State Bank of Vietnam (SBV) branch in HCMC has told commercial banks and foreign bank branches to enhance oversight on foreign exchange agents.

Emphasizing adherence to foreign exchange regulations and the importance of internal checks, the SBV directive issued on May 8 aims to maintain exchange rate stability and promote socio-economic development.

Commercial banks and foreign bank branches operating in HCMC are tasked with ensuring proper delegation of authority to economic organizations acting as foreign exchange agents. They must also bolster management, inspection, and control of foreign exchange agent activities.

These financial institutions are mandated to provide advisory services to ensure compliance with regulations and educate customers on relevant rules on foreign exchange transactions.

Nguyen Duc Lenh, deputy director of the SBV branch in HCMC, said that these measures aim to enhance management efficiency, uphold discipline, ensure compliance with legal provisions, and promote the legitimate use of foreign exchange.

Banks have until June 15 to conduct inspections of authorized foreign exchange agents, report on compliance, identify shortcomings, and make recommendations to the SBV’s HCMC branch.

Vietnam remains on bumpy path of recovery in April: HSBC

Vietnam continued its bumpy path of recovery in April, in part reflecting the highly uncertain global environment, according to the April report “Vietnam at a glance” released recently by HSBC.
 
Experts assessed that exports had risen encouragingly by 10.6% on-year, with this mainly being driven by electronics, up 20% on-year.

The report outlined that despite growing confidence of a cyclical recovery in the global trade cycle, peripheral risks are keeping near-term sentiment relatively cautious. In line with this, several exporters have noted concerns stemming from the Red Sea disruptions for trade with Europe. Unsurprisingly, textiles and footwear exports, for which Europe makes up a major destination, stalled in its recovery, falling almost 3% on-year .

Think tanks have therefore analysed that an expansion of Vietnamese manufacturing capabilities through robust FDI inflows should provide a further tailwind to record a stronger cyclical rebound when the broader trade cycle picks up.

New FDI to the manufacturing sector enjoyed an annual increase of 50%, while FDI disbursements also rallied to a multi-year-high, exceeding US$6 billion in the first four months. Elsewhere, Apple, which has already invested close to US$16 billion, has announced its intention to further boost its investment in the Vietnamese market after its CEO Tim Cook recently visited the country.

While the demand for goods is still recovering, demand for tourism services has been rising. In part thanks to the easing of its visa policy last year, the country has welcomed well over six million international tourists so far, suggesting that 17 million to 18 million target by the year-end is comfortably within reach. In fact, its monthly recovery rate has been the highest in ASEAN since February.

Despite this, given the intensifying regional competition to attract tourists, HSBC believes that measures such as expanding the visa exemption list, which remains under consideration, will be important in sustaining the currently level of momentum.

Furthermore, inflation appears to be an imminent concern. Headline inflation rose by 0.1% on-month, pushing the on-year print to 4.4%, in line with consensus of HSBC at 4.4%.

This marks the first time in more than 18 months that inflation has been approaching so close to the SBV’s 4.5% inflation ceiling. Similar to the previous episodes, the main drivers are higher oil prices and elevated food inflation.

According to economists, the former reminds them of how acutely sensitive the nation is to volatility occuring in the international commodity market, whereas the latter suggests that even an exporter like Vietnam cannot be insulated from high food costs.

Experts anticipate that inflation will breach the 4.5% ceiling in Q2, but this should only be briefly, before likely dropping below 4% in Q3.

Moreover, a rate hike in the face of still-subdued credit growth would be negative for nascent economic growth, with this not being a solution which can support the currency. As a result, they do not expect the SBV to move.

SJC gold spirals, surpassing VND88 million per tael

Despite the global gold price experiencing a decrease, SJC gold continued to break historical records this morning, May 9, reaching a new peak of VND88.2 million per tael.

The disparity between SJC gold and the global market widened to VND17.3 million per tael.

Around 9 a.m. in Ho Chi Minh City, SJC Company raised its prices by VND700,000 for both buying and selling compared to yesterday, with rates set at VND85.9 million per tael for buying and VND88.2 million per tael for selling.

At the same time, in Hanoi, Doji Group also raised its prices by VND500,000 for both buying and selling rates compared to yesterday to purchase gold at VND85.7 million per tael and sell it at VND87.2 million per tael for selling.

Meanwhile, the price of 9999 gold rings remained stable this morning compared to the previous day. SJC and PNJ companies listed prices at VND73.3 million per tael for buying and VND75-75.1 million per tael for selling.

On the global gold market, the price of gold traded on the Kitco this morning, May 9 (Vietnam time), stood at US$2,308.9 an ounce, marking an $8 decrease compared to yesterday. This price translates to approximately VND70.9 million per tael, VND17.3 million per tael lower than SJC gold's, and VND4.4 million per tael lower than the price of 9999 gold rings.

The global gold market saw a downturn as the US dollar regained strength. The DXY Index, which measures the dollar's fluctuations against six key currencies, climbed to 105.5 points from the previous 105 points. Year-to-date, the US dollar has appreciated by around 4 percent against the basket of six major currencies. While demand for precious metals has surged significantly worldwide, particularly in Asia, the revival of the US dollar's strength is exerting downward pressure on gold prices.

Bank shareholders interested in restructuring plans of weak credit institutions

Many shareholders of banks have shown interest in plans to restructure banks and receive the compulsory transfer of weak credit institutions (CI).

At VPBank’s recent annual general meeting of shareholders (AGM) last week, Ngô Chí Dũng, chairman of VPBank’s board of directors, said not all banks had enough financial and management capacity to participate in restructuring weak CIs, which had huge accumulated losses and were continuing to make loss.

However, VPBank had a large capital base as it is backed by Japanese partner SMBC.

Dũng said capital growth was very important in VPBank's strategy and although the participation in restructuring the weak CIs would not immediately bring VPBank financial benefits, it could see higher credit growth and foreign ownership ratio according to the State Bank of Vietnam's (SBV) current incentive policies.

Banks’ foreign ownership ratio is capped at 30 per cent while many foreign investors currently still want to pour in VPBank. Therefore, if the foreign ownership ratio is expanded thanks to the participation in restructuring weak CIs, VPBank can increase the capital scale, according to Dũng.

Nguyễn Thanh Tùng, general director of Vietcombank, said they had completed a plan to receive the compulsory transfer of a weak CI and were currently submitting it to the SBV for approval. Under the plan, Vietcombank had proposed specific solutions to ensure a smooth transfer and compliance with the roadmap.

In addition, Tùng said, Vietcombank was also reviewing the network and assessing the human resource quality of the weak CI to detect and overcome its limitations and had established sub-committees to support the transfer of the weak CI.

The transfer would be carried out in 2024. In the long term, receiving the compulsory transfer of weak CIs would create opportunities for Vietcombank to have many options such as selling shares or merging, Tùng said.

At Military Bank (MB)’s recent AGM, chairman of MB’s board of directors Lưu Trung Thái said this was an opportunity to open up new development space, especially credit growth and governance improvement.

Thái expected MB's plan to receive the mandatory transfer of a weak CI would be approved in April.

The question of the ability to participate in restructuring weak CIs was also raised by many shareholders at HDBank’s recent AGM. Nguyễn Thị Phương Thảo, vice chairwoman of HDBank’s board of directors, said it was one of four banks that had been assessed to have healthy operations and good financial capacity to be selected to participate in an SBV project to restructure the commercial banking system.

When participating in restructuring weak CIs, HDBank would have the opportunity to break through, dominate the market and become one of the top banks in the next five years thanks to the SBV’s preferential policy to have higher annual credit growth quota, Thảo said.

There are several weak CIs in the Vietnamese banking system that are being put under special control and have to undergo restructuring as per the request of the Government. Three of them are Ocean Bank, GPBank and CBbank, which the SBV bought for zero đồng. 

Bắc Ninh Industrial Parks attract nearly $1 billion in investment in first four months of 2024

Bắc Ninh Industrial Parks attracted a total of US$997.1 million in foreign direct investment (FDI) capital and over VNĐ3.6 trillion in domestic capital in the first four months of this year.

According to the Bắc Ninh Province's Industrial Park Management Board, during this period, Bắc Ninh Province approved new investment registrations for 45 projects with a combined registered investment capital of $488 million. Additionally, capital adjustments were granted to 44 projects, resulting in an increased capital adjustment of $409.1 million. However, 12 FDI projects with a total registered investment capital of $18.68 million were terminated.

In April alone, Bắc Ninh Province approved new investment registrations for 12 investment projects and allowed capital adjustments to 13 projects, with total new and adjusted capital of over $142.7 million.

In the first four months of 2024, Bắc Ninh Province witnessed 436 businesses resuming operations, reflecting a growth of 28.99 per cent. Additionally, 1,092 businesses registered temporary suspensions, indicating a rise of 25.09 per cent. Moreover, 167 enterprises undertook voluntary dissolution procedures, and 111 businesses changed their type of operation.

As of now, Bắc Ninh Province is home to 23,165 enterprises with a total registered capital exceeding VNĐ403.9 trillion. Among them, 18,423 businesses are currently operating with a combined charter capital of over VNĐ367.1 trillion, averaging to approximately VNĐ19.93 billion per enterprise. 

Hanoi’s retail sales, services revenue up 9% in four months

Hanoi’s total retail sales of goods and consumer services revenue reached 266.2 trillion VND (10.46 billion USD) in the first four months of this year, up 9% year-on-year, according to the municipal People’s Committee.

In the period, passenger transport increased significantly, reaching 135.2 million arrivals, up 13.3% year-on-year, while revenue hit 7.2 trillion VND, up 17.5%. Meanwhile, the volume of goods transported reached 526.4 million tonnes, up 15.7%, resulting in 30 trillion VND, up 17.1% over the same period last year. In addition, revenue from transportation support activities reached 29.1 trillion VND, a year-on-year rise of 7.6%.

During January-April, tourism played a leading role in the capital's economic sector. In the period, the city welcomed 1.5 million foreign tourist arrivals, up 59.8% year-on-year.

In April, revenue of the retail sales of goods and consumer services is estimated to reach 66.6 trillion VND, up 1.8% month-on-month and 8.1% year-on-year.

Commodities with impressive growth in retail revenue included gemstones and precious metals (40.1%), food (11.3%), and vehicles excluding cars (11%)./.

Investor confidence gains traction on improved business climate

Investor confidence gains traction on improved business climate hinh anh 1
Better investment climate, with simplified administrative producers and special incentives, has helped improve investor confidence, thus catalysing investments from a wider pool of both domestic and international investors for socio-economic development.

Over the past time, the capital city of Hanoi has drastically worked to shorten time to handle administrative procedures.

According to Vice Chairman of the municipal People’s Committee Ha Minh Hai, 76 documents related to administrative reform and digital transformation were issued in 2023 and the first three months of this year. Besides, the single-window mechanism has been carried out to settle procedures in planning and investment, natural resources and environment and tax, among others, helping locals and businesses save time and costs.

In less than a month since the Government approved the policy investment for a project to develop and operate the infrastructure system of the Dong Anh Industrial Park, the municipal People’s Committee granted the investment certificate to the Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex).

In the northern port city of Hai Phong, the Hai Phong Economic Zone Authority has been assigned to settle all administrative procedures. Accordingly, it has cooperated with competent authorities, including the Department of Planning and Investment, the Department of Taxation and the Department of Customs, to grant business certificates and tax codes for investors at the earliest.

Chilisin Electronics Corporation, a Taiwan-based enterprise with operation at the Vietnam – Singapore Industrial Park Hai Phong since 2015, registered additional 73.7 million USD to expand its scale in Vietnam.

Deputy Director General of Chilisin Electronics Vietnam Company Limited Liao Yun Hoan said the city’s incentives together with local safety and better business environment is a solid foundation for the firm to enlarge operation in the city, adding the local authority has supported the firm to remove bottlenecks in a timely fashion.

In the same vein, the northern province of Thai Nguyen has recorded radical changes its business environment, making it a bright spot in the country’s FDI investment attraction.

Chinese solar panel maker Trina Solar, a large investor in Thai Nguyen, said that the group completed all investment procedures for its third project at Yen Binh Industrial Park with total registered of 454 million USD in a very short time, raising its total investment in the country to more than 930 million USD.

Despite improved investment climate, investors have encountered formidable challenges while carrying out their projects, including site clearance work and shortage of industrial land funds.

Against this backdrop, local authorities have worked to push ahead land clearance, develop industrial parks and build transport infrastructure to improve regional connectivity./.

Forum seeks to increase PPP investment effectiveness

Investment cooperation in the public-private partnership (PPP) form is seen as a strategic option to mobilise private investment and improve public service delivery. However, the implementation of PPP projects in Vietnam still faces a lot of difficulties and obstacles, leading to a low number of successful projects and making the private economic sector cautious.

The information was heard at an investment legal support forum held recently in Ho Chi Minh City.

Assessing the challenges in implementing PPP projects today, lawyer Ngo Thanh Tung from the Vietnam International Arbitration Center (VIAC) said that one of the main challenges in implementing PPP in developing countries is the lack of a legal framework to determine roles, responsibilities, and rights of public and private partners.

Public sector institutional capacity and human resources are also factors that hinder the success of those projects. To seize opportunities and attract more PPP projects, the Government and the public and private sectors need to implement specific measures.

From practical assessment and analysis, legal experts made several recommendations at the forum to improve legal regulations, enhance the role, and protect investors more.

Specifically, experts recommended the National Assembly to carry out activities to supervise the implementation of the PPP Law, while relevant agencies and departments should synthesise problems and shortcomings to resolve them promptly for investors./.

Q2/2024: Hanoi businesses expect better performance

Hanoi businesses have banked on stellar performance in the second quarter, anticipating a notable leap forward.

Hanoi-based Traphaco, one of the leading herbal pharmaceutical companies, continues to grow and has set a 2024 target for consolidated sales of nearly VND2.5 trillion (US$98.3 million) and consolidated profit after tax of VND303 billion (US$12 million), representing year-on-year growth rates of 7% and 6%, respectively. 

According to Dao Thuy Ha, Deputy General Director of Traphaco, healthcare spending in Vietnam has been affected by the economic downturn but is still growing. Moreover, new trends create opportunities for local businesses that dare to change.

The company has also made several changes to its 2024 retail distribution policy, which is designed to win over large customers and create opportunities for smaller groups that have an advantage in one or two specific product lines, Ha said.

As a result, the number of new customers has increased significantly since the beginning of the year, with more than 1,500 new customers signed up, a 6% increase from last year, and revenue in the first quarter of 2024 was 1,043% ahead of plan.

In the ETC (ethical medicines) channel, the company is targeting 20% growth compared to 2023. 

"The entire ETC treatment system across the country has seen positive signals in terms of revenue in the first quarter of 2024," she said, expecting that a number of new policies in the sector will encourage health activities and people's use of health services, thereby driving strong growth in the ETC channel.

Ha's more optimistic view is based on a forecast by Mirae Asset Securities Company, which predicts that the pharmaceutical industry will maintain a compound annual growth rate (CAGR) of 6% from 2023 to 2028. In 2024 alone, the value of the pharmaceutical industry is expected to grow by 9.1%.

The Traphaco executive believed that in 2024, Vietnam's economy will continue to face difficulties and volatility, with major challenges for the healthcare industry in particular due to falling incomes, resulting in a decline in consumer demand.

A source from TopCare Vietnam, which operates in the technology sector, said that the reduction of interest rates by banks helps companies to have better access to capital for reinvestment as well as long-term purposes at low-interest rates.

Businesses are facing first-quarter results that account for only about 10% of total annual sales, as well as the gloomy global and Vietnamese economic situation, leading to a decline in customer purchases, according to the company representative.

With such an outlook, the company is preparing capital sources, human resources, skills training and new market knowledge for ongoing projects.

"In-house training and recruitment of suitable personnel is an important issue in order to achieve the plans for the coming quarters or the whole year 2024," he said.

As a well-known brand in the domestic consumer market, Hanoi's Thuong Dinh Footwear Company continues to explore additional channels and domestic sales methods to increase sales and seek potential business partnerships or existing advantages at the factory. 

In the first quarter, the company faced challenges due to reduced consumer demand and low domestic consumption, with almost no export orders and falling employment and income for workers, said Nguyen Van Khiem, the company's CEO. 

Hanoi-based CODY Pharma International Joint Stock Company, operating in the functional food sector, will allocate production resources wisely to ensure production and delivery schedules, focus on maintaining product quality control, actively seek export orders, and may concentrate on essential consumer goods categories, said the company's CEO Nguyen Van Hung.

As for CODY's Lotus Tea products, the company has recently planted nearly 20 hectares of Lotus Bach Diep (West Lake Lotus) varieties under organic standards to secure high quality raw materials and conduct in-depth research on various lotus-based products to diversify product offerings and increase export opportunities. 

It is also expanding its distribution network and showroom, such as in the area of Uncle Ho's Stilt House. In addition, the company has built up its retail outlets at airports and collaborated with South Korean retail chains and travel companies to promote West Lake Lotus Tea to international tourists from China, Taiwan, South Korea and Japan at Hanoi's tourist destinations. 

In its report on first-quarter economic performance, which also includes a forecast for 2024, the General Statistics Office said that Vietnamese economy growth will be satisfactory during this period, while external risks would remain manageable. 

A combination of traditional and emerging growth drivers is being skilfully harnessed, ensuring macroeconomic stability, maintaining crucial balances and boosting business and public confidence.

GDP growth in the second quarter of 2024 is expected to remain optimistic, possibly reaching 5.9-6.3%, contributing to 5.8-6.2% growth in the first half of 2024. Annual growth is projected at 6-6.5% (baseline scenario), in line with government targets, or even more optimistically at around 6.5-7% (positive scenario).

Local companies should strengthen their management and financial capabilities to sustain business operations, achieve a more favourable growth rate compared to the previous quarter and strengthen competitiveness, the report emphasized.

State Treasury raises over 890 million USD worth of G-bonds in April

The State Treasury mobilised nearly 22.75 trillion VND (894.52 million USD) worth of Government bonds in April via 17 auctions on the Hanoi Stock Exchange (HNX).

Notably, the State Treasury successfully auctioned the Government bonds with terms of 20 years and 30 years after unsuccessful bidding for more than one month.

Interest rates for the 5-, 10- and 15-year terms gradually increased in April. The rates in the last session of the month were from 0.3% to 1.1% per year higher than those in the first session of the month. Specifically, the interest rates in the last session of the 5-,10-, 15-, 20- and 30-year term was 1.61%, 2.5%, 2.68%, 2.8% and 3%, respectively.

On the secondary market, the scale of Government bonds listing at the end of April was over 2.04 quadrillion VND, an increase of 1.13% compared to the previous month. The value of Government bond transactions reached almost 174.56 trillion VND, or over 9.18 trillion VND per session, down 20.96% compared to March 2024. Of which, the outright transaction value accounted for 51.63% of the total market transaction value, and repos transactions made up the remaining amount.

Foreign investors total trading value in April accounted for 2.45% of the total market trading value and their net buy value reached 989 billion VND./.

VinFast EVs to debut in Philippines at end of May​

Vietnamese electric vehicles maker VinFast Auto announced it will officially enter the Philippine EV market at the end of May with diverse and smart green mobility solutions, affirming its determination to conquer the regional market.

As one of the pioneering automobile manufacturers with a pure-electric strategy, VinFast has affirmed its reputation with its presence in many international markets such as the US, Canada, Europe and recently Indonesia, India and Thailand.

The Philippines is VinFast's next step in its expansion strategy in the Southeast Asian market, especially as the country is adopting policies to promote the development of electric vehicles.

Nguyen Minh Ngoc, General Director of VinFast Philippines said the company commits to joining hand with the Philippines in the electric mobility revolution. The company is proud to bring powerful, intelligent modern electric vehicles with excellent warranty, gradually realising the goal of expansion in the regional market.

The launching ceremony in the Philippines will be held in Manila on May 31 for the press and June 1-2 for the public. On the occasions, guests will have a chance to experience VinFast's green and smart electric vehicles models, including VF e34, VF 5, VF 7 and VF 9; and six electric motorbike and bike models VF DrgnFly.

In early January 2024, Philippine President Ferdinand Romualdez Marcos Jr. and Vingroup Chairman and Founder of VinFast Pham Nhat Vuong met officially and discussed investment cooperation opportunities.

VinFast's official entry into the market affirms the company's commitment to contributing to the modernisation of transportation infrastructure in the Philippines in a greener and more sustainable direction./.

Tra Vinh advances development of wind power

The Mekong Delta province of Tra Vinh is calling for investment in eight wind-power plants with a combined capacity of 464 MW.

Of the plants, four are in Duyen Hai district, and the others in Duyen Hai town.

The projects are all in line with the province’s planning, national power development plan, and roadmap for the implementation of the national power development for the 2021-2030 period with a vision to 2050.

Tra Vinh is now home to 382 valid projects, 38 of which are foreign with total registered capital of nearly 3 billion USD and the rest, domestic valued over 144.5 trillion VND (5.68 billion USD).

It has granted approval in principle for nine wind-power projects with a combined capacity of 666MW, five of which have been connected to the national grid with a capacity of 322 MW.

It is also housing a 140-MW solar power project and a 25-MW biomass power one.

Earlier, the province called for additional capital to three projects in Dinh An economic zone, including a renewable plant, a green hydrogen plant, and technical infrastructure development at the industrial-urban area-service complex.

Vice Chairman of the provincial People’s Committee Nguyen Quynh Thien said Tra Vinh has issued an investment promotion programme with specific missions and solutions, while studying and evaluating the market, investment trends and investors as well as building database, publications and materials for promotion activities.

Additionally, it will push ahead with the communications work on its business climate and investment opportunities, and work to further improve the investment environment, and administrative reform, he added./.

Positive market figures fuel expectations for stable development climate

The Purchasing Managers' Index (PMI) of the Vietnamese manufacturing sector rebounded above the 50.0 no-change mark, fostering hopes for a stable climate in which businesses can prosper.

The PMI, recently released by S&P Global, rose to 50.3 from 48.8 in March, indicating a slight improvement in the health of the manufacturing sector – the third consecutive one in the past four months.

The economics director at S&P Global Market Intelligence, Andrew Harker, assessed that Vietnam's manufacturing sector has seen an increase in new orders in April following recent weakness. As a result, the number of workers returning to work might increase.

With these indicators, Harker said he expects a more stable environment to help manufacturers plan production and prepare resources efficiently.

Data from the General Statistics Office (GSO) shows that with the entry of 15,300 enterprises into the market in April, the number of newly established firms in the first four months surpassed 51,550, above the average of the past two years and marking the highest to date.

However, although the average registered capital per enterprise has increased, it has yet to return to the level of 12.8 billion VND (512,000 USD) logged in the 2019-2022 period. This shows that they are still cautious about investing in production and business activities.

The volume of those returning to operation between January and April, meanwhile, reached 29,700, up 2.4% year-on-year, further reflecting the recovery from the COVID-19 pandemic.

The number of temporarily suspended businesses stood at 60,900, an annual rise of 21.9%. There were 19,100 ceasing operations pending dissolution and 6,400 completing dissolution procedures, down 9% and up 4.9% against the same period last year. On average, 21,600 businesses withdrew from the market each month.

In a word, the number of businesses exiting the market remains higher than those of newly established and returning ones, which means many challenges facing the production and business environment.

Nguyen Bich Lam, an economic expert and former GSO Director-General, stated that the long-term economy cannot rely solely on public investment. It needs solutions to improve the business climate and reinvigorate private investment as the main and most important growth driver./.

Tetra Pak adds 97 million euros to expand its facility in Bình Dương

Tetra Pak has announced an additional 97 million euros (US$104.2 million) investment to expand further its packaging material production facility in the southern province of Bình Dương.

This takes the total capacity investment to over €217 million. The investment forms part of the company’s long-standing plans to expand its production at the site in Việt Nam to accommodate increasing demand from the region.

Tetra Pak’s expansion plans for the Bình Dương facility will include an additional production line which will be fully operational by Q3 2025. With this expansion, the facility will have the capability to produce new and innovative packaging formats. To manage this additional capacity, the Bình Dương facility will also be enhancing its workforce, creating additional opportunities for both the current staff and those in the surrounding communities.

Eliseo Barcas, Managing Director and President at Tetra Pak Vietnam said: “We are pleased to announce the next strategic growth plan at our Bình Dương site in Việt Nam. This expansion is a testament to Tetra Pak’s long-standing commitment to Việt Nam since we started our operations here 30 years ago.

"We are confident these changes will not only allow us to serve our valued customers better but also contribute to the economic development of the nation and the region.”

Since opening, the Bình Dương manufacturing facility has rapidly become one of the most advanced factories in the region, playing a critical role in Việt Nam and the global supply chain for Tetra Pak.

The expansion forms part of the company’s plans to position the market as a strategic growth engine for the region. The changes will be implemented under Tetra Pak's dedication to environmental responsibility and corporate stewardship, ensuring sustainability standards are upheld throughout the process.

The company has maintained close communication with relevant government bodies and local groups to ensure the expansion adheres to Việt Nam's regulatory framework. 

Vietnam international café, tea shows open in HCM City

Vietnam International Café Show 2024 - a coffee, food, and beverage exhibition, and the first Vietnam International Tea Show opened in Ho Chi Minh City on May 9, attracting more than 500 domestic and international exhibitors.

Organised by Exporum Vietnam Company, the Vietnam Coffee Cocoa Association, Buon Ma Thuot Coffee Association, and domestic and foreign trade promotion agencies, the events gathered leading companies in the food and beverage manufacturing and processing industry. It features equipment, machinery, and technology for the restaurant and hotel management industry.

The exhibition series is also expected to provide opportunities for domestic and international managers and experts to meet and share solutions and practical management tools in the production, processing, and distribution of coffee, tea, food, and drinks.

Director General of Exporum Vietnam Company Hyun Dae Shin said that the annual Vietnam International Café Show is part of the series of Cafe Show exhibitions in Seoul, Shanghai, Paris and Vietnam, featuring prestigious brands such as Maulin (Great Eastern), Dalatmilk, Vinamilk, Tan Nhat Huong, Barista Buddy, Trum Nguyen Lieu, Long Beach and Osterberg.

Meanwhile, the tea show sees the presence of hundreds of local and foreign brands.

Also at the exhibitions, there will be the Vietnam National Barista Championship and Vietnam National Brewer Championship, which are the only two competitions in Vietnam certified by World Coffee Events. Another competition - Asia Latte Art Battle – will be opened for the world's leading baristas, especially in the field of Latte Art - the art of drawing on the cream coffee surface with milk foam and topping.

The events held at the Saigon Exhibition and Convention Centre in District 7 will conclude on May 11./.

Vietnam attractive destination for Dubai enterprises: Forum

Vietnam is an attractive destination for enterprises from Dubai, the UAE, who has demand for trade in goods and investment in multiple fields like logistics, finance, and technology, heard a forum held in Ho Chi Minh City on May 9.

Describing Vietnam as attractive to Dubai investors and traders, President and CEO of Dubai Chambers Mohammad Ali Rashed Lootah held that the Southeast Asian country boasts strong growth potential thanks to its favourable economic policies, firm infrastructure, a skilled workforce, and strategic location.

Members of Dubai Chambers have highly evaluated opportunities in Vietnam and are planning to expand investment and business activities in the country, he noted.

He added that as Vietnam and the UAE are negotiating a comprehensive economic partnership agreement, Dubai enterprises wish to seize opportunities to boost common economic growth. They also hope that this agreement will promote bilateral trade and facilitate Vietnamese exporters’ access to global markets via Dubai.

According to Dubai Chambers, the commodities promising considerable chances for Vietnam’s exports to Dubai include furniture, nuts, tropical fruits, and coffee. Meanwhile, Dubai firms highly value the investment potential in sustainable agriculture, construction, tourism, and food industry in Vietnam.

UAE Ambassador to Vietnam Bader Al Matrooshi said the two countries are witnessing important strides in delegation exchanges in various areas, especially trade promotion. The UAE is the biggest trading partner of Vietnam in the Middle East when it comes to non-oil products, with bilateral trade topping 8 billion USD.

Nguyen Van Dung, Vice Chairman of the HCM City People’s Committee, stated that the southern largest economic hub will continue assisting and providing optimal conditions for foreign enterprises, including UAE firms, to do long-term investment and business, thus contributing to common growth and meeting both sides’ demand and potential.

He cited statistics showing that with 27 valid projects, the UAE currently ranks 42nd among the 120 countries and territories investing in HCM City. Despite the complex global situation, the city’s exports to the UAE still increased over 4% to nearly 340 million USD last year compared to 2022, showing efforts by both HCM City and UAE partners in helping to comprehensively and substantively develop the Vietnam - UAE ties.

Lam Nguyen Hai Long, Chairman of the HCM City Computer Association, said the Vietnamese Government is working actively to reform administrative procedures to grasp opportunities of a new investment influx. Vietnam in general and HCM City in particular have also readied some software and high-tech parks providing a technological foundation for investors.

Besides, Vietnamese enterprises should also consider Dubai as a gateway for them to access other markets in the Middle East, North Africa, and the world, he suggested./.

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