Vietnam views the US as an important partner in the field of agriculture, stated Minister of Agriculture and Rural Development Le Minh Hoan at a working session with representatives from the US Department of Agriculture (USDA) in Washington D.C. on May 11.

Thr Vietnamese Government has approved and implemented a strategy for the sustainable development of agriculture and rural areas to become a responsible country for global food security and the environment.

In order to implement Vietnam’s commitments at COP26, MARD has taken action, including a project to plant 1 billion trees, and the speeding up of projects and programmes to exchange carbon credits from forests, he noted, adding that the sector is transitioning towards green agriculture.

Vietnam has also joined other initiatives of the US and other countries and international organisations such as the Agriculture Innovation Mission for Climate (AIM4C) and the Coalition on Sustainable Productivity Growth for Food Security and Resource Conservation (SPG), he added.

Hoan suggested that the US side continue to provide financial and technical support to Vietnam through specific activities, enabling Vietnam to improve its capacity and successfully implement global initiatives as well as the transition to a green, environmentally-friendly and low-carbon agriculture sector.

The two sides agreed to direct agencies to work together to seek solutions to speed up the market’s opening as well as strengthen cooperation on technology, sustainable development and climate change response.

Concluding the meeting, Hoan invited leaders of the USDA to visit Vietnam, expressing his hope that people of both countries will enjoy more benefits from a trustworthy and win-win partnership.

Minister calls for stronger ties between Qualcomm, Vietnam’s tech firms

Minister of Information and Communications Nguyen Manh Hung expressed his hope for stronger partnerships between Qualcomm Incorporated and technology companies of Vietnam, while receiving an executive of the US firm in Washington D.C. on May 12.

The meeting with Alex Rogers, President of Qualcomm Technology Licensing and Global Affairs, took place as Hung was accompanying Prime Minister Pham Minh Chinh in his ongoing working visit to the US.

Hung appreciated the group’s effective cooperation with Vietnam’s technology businesses, noting that Vietnamese telecoms and digital technology companies are placing great trust in Qualcomm.

He thanked Qualcomm for joining the advisory group for the Vietnamese ministry’s steering committee on 6G development and said he hopes his ministry and Vietnamese digital technology companies’ cooperation with Qualcomm will reach a new height.

Vietnam is working to establish laboratories to test 5G devices made by Vietnam and other countries, so the ministry hopes Qualcomm will assist in setting standards and conducting tests for not only 5G but also 6G devices, he added.

The minister also suggested Qualcomm help Vietnamese universities open training courses for telecoms engineers.

For his part, Rogers voiced his delight that partnerships have helped Vietnam’s telecoms industry develop.

He highly valued Vietnam’s acceleration of and vision on 6G technology development, and pledged to deliver the minister’s recommendation on this issue to the head of his group’s technological development division.

At the event, the two sides discussed the possibility of enhancing joint projects so as to capitalise on the advantages and technological strength of Vietnamese companies. They also agreed to speed up the research, development, and commercialisation of devices, especially 5G ones, so as to meet local demand and supply for global markets.

Vietjet offers promotional tickets for all international routes

Budget carrier Vietjet is offering millions of promotional tickets with prices from zero dong (excluding tax and fees) on its international flight on the occasion of the 31st Southeast Asian Games (SEA Games 31), the biggest regional sports event.

The promotional airfares are sold during the golden hours from 12:00 to 14:00 from May 12 to 23, applied on all international routes with travel period from August 15 to December 31, 2022.

They are available for sale on Vietjet's official website www.vietjetair.com, Vietjet Air mobile app, and Facebook page www.facebook.com/vietjetvietnam.

Programme promotes cooperation between RoK and Binh Dinh province

A series of activities within the “Meet Korea-Binh Dinh 2022” programme were held in Quy Nhon city in Binh Dinh on May 12 to promote cooperation between the south central province and the Republic of Korea.
 
Addressing a seminar themed “Meet Korea-Binh Dinh 2022: Joining hands for development”, which opened the programme’s activities, RoK Ambassador to Vietnam Park Noh-wan said that the programme, the second of its kind held in Vietnam in 2022 on the occasion of the 30th anniversary of the Vietnam-RoK diplomatic ties, focus on seeking measures and visions to increase diverse cooperation activities between Binh Dinh – an important locality in the south central region, and the RoK.

Secretary of the provincial Party Committee Ho Quoc Dung noted that since Binh Dinh and Yongsan district of Seoul set up twin relations in 1996, the two sides have supported each other in all fields of social welfare, education-training, health care, tourism and labour, while many projects using ODA from the RoK Government are underway in Binh Dinh.

The province is currently hosting four RoK-funded investment projects worth nearly 100 million USD, he said, expressing hope that through the programme, more Korean investors will come to Binh Dinh. He pledged that the province will create optimal conditions for them during their operation to develop together.

Chairman of the People’s Committee of Binh Dinh Nguyen Phi Long said that the province is calling for RoK investment in the fields of electronic accessory production, automobile supporting industry, seaport and industrial park infrastructure construction, energy, tourism, high-tech agriculture, aquatic farming, breeding, waste treatment, trade and services.

On the occasion, the Korea Trade and Investment Promotion Agency (KOTRA) in Ho Chi Minh City and the People's Committee of Binh Dinh signed a memorandum of understanding (MoU) on investment cooperation, while the Korean Chamber of Commerce and Industry in the South and Middle of Vietnam (KOCHAM) also signed a MoU on investment cooperation with Becamex IDC.

Vietnam hosts international conference on ocean economy

All countries need to make stronger commitments and take more drastic and effective measures to demonstrate their responsibility for the sustainable development of the ocean economy, Deputy Prime Minister Le Van Thanh addressed the International Conference on Sustainable Ocean Economy and Climate Change Adaptation.

The conference is being held on May 12 and 13 in both online and offline formats by the Vietnamese Ministry of Natural Resources and Environment and the Norwegian Ministry of Foreign Affairs, with the support of the United Nations Development Programme (UNDP).

Thanh emphasised that as marine pollution and ocean plastic waste are urgent global issues, countries should establish a global system to monitor, share data, provide a scientific basis for ocean plastic waste from the national, regional and world scales.

Deputy Minister of Natural Resources and Environment Le Minh Ngan stressed that protecting the health of oceans is a sustainable guarantee for economic growth and social prosperity, food security, livelihoods and employment in many countries, especially for vulnerable ones such as small developing island nations, and low coastal states.

Vietnam has always shown its responsibility as an active member in the international community, and is ready to cooperate with other countries and partners to share scientific knowledge, experience, resources and overall management initiatives for a sustainable ocean economy and climate change adaptation, Ngan added.

Norwegian Minister of Foreign Affairs Anniken Huitfeldt said: “This conference is addressing some of the most important issues of our time. Norway and Vietnam’s objective is to push the climate and ocean agenda forward.  We live in a time of global turbulence. Global cooperation is more important than ever. We need consequential and immediate action. And it is our responsibility to keep building the momentum."

Themed “Solutions for a climate resilient Blue Economy”, the two-day conference attracted the participation of over 400 delegates from 70 countries, including leaders, experts, scientists and representatives from non-governmental organisations and research centres.

VN's GDP to grow by 5.5-6%, risk and inflation on the rise
     
Viet Nam's GDP was forecast to grow by 5.5-6 per cent this year, albeit with significant risks and inflation in the range of 4-4.5 per cent in 2022 and likely over 5 per cent in 2023, said economists and policymakers during an economic forum organised by the Ministry of Planning and Investment in Ha Noi yesterday.

The country recorded 5.03 per cent GDP growth during the first quarter of 2022 and a 2.1 per cent rise in CPI. Inflation has largely remained under control with macroeconomic indicators looking stable, according to deputy minister of planning and investment Tran Quoc Phuong.

Notably, Viet Nam's Business Environment Index has almost recovered to its pre-pandemic level. The ministry said nearly 50,000 new businesses have been registered since the beginning of the year, the highest number recorded for a single quarter in history.

Economists, however, remained optimistically cautious as the Southeast Asian country was still hard at work controlling the pandemic. Coupled with volatile energy prices and the ongoing Russia-Ukraine conflict, Viet Nam's GDP, in the worst-case scenario was forecast at as low as 4.5 per cent, said Prof. Can Van Luc.

Economic recovery, while showing promising signs, was not rapid across the board, especially in travel, tourism and construction which require further support to get back on track, said Nguyen Quang Thuan, Chairman of FinnGroup, a service provider of financial data, business information, industry research, credit rating reports and other data-driven analytics services.

Petrol prices continue to soar, causing more challenges for transport firms
     
The retail prices of oil and petrol continued to rise from May 11 following the latest adjustment by the Ministry of Industry and Trade and Ministry of Finance.

Accordingly, the price of RON95 bio-fuel was raised by VND1,550 per litre to VND29,980 (US$1.3) per litre, while that of E5 RON92 rose by VND1,490 per litre to VND28,950 ($1.26) per litre.

Meanwhile, the price of diesel oil was up by VND1,120 per litre to VND26,650 ($1.16) per litre. A rise of VND1,340 per litre was also seen in the price of kerosene to VND25,160 ($1.09).

This is the eighth adjustment made to petrol prices since the beginning of this year, with only three decreases, and the third from the end of April.

Do Van Bang, vice chairman of the Ha Noi Transport Association, told VTC News on May 11 that petrol prices account for about 40-50 per cent of transportation costs, so the increase in petrol prices has created more difficulties for transport companies.

Ngo Tri Long, a price expert, said petrol products include many kinds of taxes, including environmental protection tax and special consumption tax.

Economic expert Dinh Trong Thinh said the State should consider removing the special consumption tax on petrol products because this kind of tax should be imposed on luxury goods or harmful products and services while petrol is essential. Moreover, petroleum is also subject to environmental protection tax.

Tran Duy Dong, director of the Domestic Market Department under the Ministry of Industry and Trade, said that if the gasoline prices continue to rise, it is possible to consider reducing the special consumption tax.

The Ministry of Industry and Trade has scenarios for managing petrol prices if the petrol price hits $130 per barrel or $150 on the world market. Accordingly, it will propose to reduce taxes for petrol products, such as environmental protection, special consumption and value-added taxes, and diversify petrol supply, Dong said. 

Popular HCM City tourism street targets new customers

Many hotels on the popular tourist street of Bui Vien in HCM City have changed their business model to attract customers after being hard hit by the Covid-19 pandemic.

Cao Phi Yen, owner of Bui Vien Street Hostel, said that around a third of her hostel had been leased to students and office staff at affordable prices. 

At present, tourist numbers are just a third of those before Covid-19. So, she decided to rent space to students and office staff at VND1.8-2 million per month.

Nguyen Gia Hao from New York Thien Phuc said his hotel room had been cut to VND600,000-800,000 from VND1-3 million earlier. However, only 70 percent of the rooms have been rented to date.

Meanwhile, many hotels on Bui Vien remain closed or are available for lease following the long suspension due to Covid-19.

Farmers face losses amid rising animal feed prices

Many pig and poultry farms in the southern province of Dong Nai are facing big losses due to the rising price of animal feed.

General director of Vinh Thanh Dat Food Company, Duong Chi Thien said that their poultry farm was facing losses due to rising animal feed prices.

"Animal feed prices have increased by between 20-30 percent since the Russia-Ukraine War occurred," Thien said. "Meanwhile, egg prices remain low, causing us losses. I see that many small farms have had to close, while others including us are just maintaining smallscale production."

Mai Van Rem owns a farm with 500 pigs in Cam My District. He said that he had to invest VND1.5 billion to build the farm, which was much more costly than previous years.

"The rising land prices have led to soaring rents," he said. "Besides, we are also having to pay more to buy food for the pigs. Meanwhile, pork sales are slow, which has posed a big challenge for us."

Dong Nai supplies the largest amount of pork to the southern markets. Head of the Dong Nai Provincial Department of Livestock Production and Animal Health, Nguyen Truong Giang, said that local farms were raising some three million pigs which meet the demand in the area and some neighbouring localities, including HCM City.

Leading players to contribute to building national highways

The engagement of leading firms like Vingroup, Techcombank, T&T, and Him Land to build national highways could bolster the viability of the government’s target of having 5,000km of highways in place by 2030.

Nguyen Vu Quy, director of Ho Chi Minh Highway Project Management Unit (PMU HCM), said that it is reviewing the proposal from a consortium consisting of Vingroup and Techcombank and another from the State Capital Investment Corporation (SCIC) for the project on building the Gia Nghia-Chon Thanh highway section under a public-private partnership (PPP) and will report to the government soon.

The PMU HCM was assigned by the Ministry of Transport (MoT) to draw the pre-feasibility study of the highway project, which is one of the longest sections of the North-South Highway project’s western part.

The whole project has several sections going parallel to the Ho Chi Minh Highway.

Last week, the Vingroup-Techcombank consortium sent a document to the MoT with a proposal to implement the PPP project for building the Gia Nghia-Chon Thanh section.

Their proposal created a surprise as it has a very large capital requirement – surpassing $1.13 billion for building a 200km four-lane highway – and a lengthy capital recouping process of more than 30 years if it does not have financial support from the state.

This is the first time the Vingroup-Techcombank consortium has made a joint proposal for highway building. Deemed as having the most financial strength, experience, and infrastructure management capacity in Vietnam currently, the consortium brings a huge opportunity to execute the building of the longest highway section in the North-South Highway’s western part, connecting the Central Highlands region with the southeastern gateway.

The Vingroup-Techcombank consortium is not the only investor expressing interest in the Gia Nghia-Chon Thanh project. Earlier, SCIC also sent a document with similar content to the prime minister.

In its document, SCIC asked the MoT to survey the investors’ interest in the PPP Gia Nghia-Chon Thanh road section project soon. If there is a lack of investor interest, the MoT might call on the premier to select investors as noted in Article 40 of the Law on PPP.

An executive of the MoT’s Department of Planning and Investment unveiled that a raft of major local firms such as Deo Ca, Him Lam, Hoa Binh, DIC Corp, and Phuong Thanh have sent proposals by setting up investor consortiums or acting as full contractors for several component projects belonging to North-South Highway’s eastern part for the period from 2021 to 2025.

Prior to the Vingroup-Techcombank proposal submission, T&T proposed to draw a pre-feasibility study for a project on building the Bao Loc-Lien Luong Highway under PPP format, and the Hung Thinh-Deo Ca consortium asked for permission to invest in the Tan Phu-Bao Loc Highway project.

The participation of leading players like Vingroup and Techcombank in building national highways reflects the warming-up of transport infrastructure investment in PPP form after a long period of stagnation.

Investors getting on board the LNG train

Liquefied natural gas-to-power remains an important part of Vietnam’s energy transition story, and investors – both local and international – continue to demonstrate a strong interest in the sector.

Under the latest draft of national Power Development Plan VIII approved by the Appraisal Council in late April, thermal power using domestically-produced gas (including gas turbine thermal power plant) and liquefied natural gas (LNG) – excluding flexible gas turbine power sources using LNG – by 2030 will see the total installed capacity of about 29,700-38,800MW, accounting for approximately 24-29 per cent of total electricity production.

By 2045, the total installed LNG capacity will be about 43,300-46,300MW, producing 233.6-246 billion kWh and accounting for 20-24 per cent of total electricity production.

This policy trend was evidenced by Vietnam’s announcement last November to target net-zero emissions by 2050, in which LNG is regarded as a more promising method of reducing carbon emissions that can also attract foreign and local investors.

Vietnam has nearly 20 LNG-fired power plants in the pipeline nationwide, (see chart), including Delta Offshore Energy’s Bac Lieu LNG-to-power project and LNG Quang Ninh, which is being developed by PV Power, Colavi, Tokyo Gas, ExxonMobil and others.

Local education ripe for levelling-up

More foreign investors have been drawn into Vietnam’s education and training sector, particularly from the United States, with capital flow leading to significant changes in everything from curriculum structure to learners’ behaviour and career prospects.

The latest statistics from the Ministry of Planning and Investment show that as of April 20, 607 foreign cooperation projects have been operational in Vietnam’s education and training sector, with the total investment capital of more than $4.44 billion.

The US, the United Kingdom, and Singapore have been the top educational investors in the past two years, with funding in schools slowing down last year due to long periods of closure – but momentum is being quickly regained.

According to a report by Grant Thornton Vietnam, kindergartens and K-12 schools are the segments that would continue to see the biggest investments, including new establishments, mergers and acquisitions, and also some private equity transactions.

The influx of foreign capital is also causing enormous changes in the country’s educational environment, especially in the curriculum structure. International schools, which are either fully foreign-funded or established by partnerships between the Ministry of Education and Training (MoET) and the Ministry of Foreign Affairs, generally have the freedom to select their curriculum. Currently, there are 12 schools that are recognised by the MoET as international schools.

Fresh opportunities abound for US transport investors

As Vietnam strongly promotes private investment in transport infrastructure with a number of potential initiatives in the pipeline, more openings may become available for American investors.

At the end of last month, Minister of Transport Nguyen Van The hosted a special reception for US Ambassador to Vietnam Marc Evans Knapper, expecting closer cooperation between the two parties in the months to come.

US businesses are very interested in transport infrastructure projects in Vietnam, including aviation and maritime projects such as airports and seaports, Knapper said, proposing to the Ministry of Transport (MoT) to create favourable conditions for US businesses and contractors to join airport upgrade and construction projects.

Relations between Vietnam and the United States have been continuously strengthened, especially in aviation and seaport development. Recent important highlights were the opening of direct flights between Ho Chi Minh City and San Francisco by Vietnam Airlines, the supply of aircraft and engines, and the cooperation between Vietnam and the US Trade and Development Agency in the organisation of conferences on cooperation opportunities in aviation and maritime infrastructure.

Leading US groups such as Boeing, Collins, Aerospace, Haskell, Autodesk and many others are keen on the opportunities to boost the Vietnam-US collaboration.

Besides Vietnam Airlines, Bamboo Airways has also been licensed by the US Department of Transportation to carry passengers and cargo between Vietnam and the US. It will use the wide-body Boeing 787-9 Dreamliner to fly directly from Hanoi and Ho Chi Minh City to international airports in the US.

A 20-year roadmap on opening a Vietnam-US flight route has finally been realised, with such a route by Vietnam Airlines becoming one of the hot topics in meetings of the Vietnamese-American community of California, especially after the Vietnamese government removed obligatory medical quarantine procedures in February.

Experts are evaluating the market potential between the two countries at about 700,000 passengers per year, while only 30,000-60,000 passengers per year are needed to open direct flights.

Ambassador Knapper hopes that the two sides will continue to boost ties in aviation, such as through an increase in the purchases of Boeing aircraft, equipment, and direct flights between the two. US enterprises are also interested in Vietnam’s transport infrastructure development, focusing on projects that reduce greenhouse gas emissions.

In the seaport segment, the Cai Mep Ha project and others have been attracting attention from US investors.

Minister The emphasised that the country encourages domestic and foreign investors to meet the huge demand for transport infrastructure development amid the country’s state budget constraints. Therefore, Vietnam expects close cooperation deals with the US in the development of transport infrastructure and supporting Vietnamese air carriers in expanding more direct flights.

He added that Vietnam is developing a system of about 5,000km of expressways connecting the country by 2030. Vietnam also plans to upgrade and develop modern seaports with high-quality services to meet the rising trade demand.

In aviation, investment priority will be given to a number of key projects, such as Noi Bai, Long Thanh, and Tan Son Nhat international airports, while upgrading 22 existing airports and building six new ones, aiming to increase airport capacity to over 280 million passengers by 2030.

With the ambition to reduce emissions in the transport sector before 2050, the MoT is planning to promote the use of electricity and bio-fuel and develop a green and environmentally-friendly transport infrastructure.

“The MoT will create favourable conditions for US investors who are interested in the local transport sector. I believe that with the cooperation and support of the US embassy in Vietnam, the bilateral transport ties will be strongly strengthened,” Minister The noted.

Lang Son to add 4,600MW of wind power in the National Power Development Plan VIII

Lang Son People’s Committee is waiting for the government’s approval to add 4.600MW of wind power to the National Power Development Plan VIII with the addition of 32 wind farm projects by 2030.

The province reports that it allowed 15 foreign and domestic investors to study and survey conditions. They combine Trungnam Group, BayWa r.e. Wind Projects Vietnam Co., Ltd., LICOGI 16 JSC, T&T group, GE, and Sovico group. They installed wind gauges to determine the wind’s strength and consistency.

These investors are willing to pour in billions of dollars to develop wind farms in the province. One of which is An Xuan Energy JSC’s project worth $791.3 million with a capacity of 528MW.

Eurolast – who carried out the preliminary survey on the wind potential in Lang Son – found that Bac Ai commune, Hoa Tham commune, Thuy Hung, and Thach Dan have great potential for wind power development.

In Lang Son, the wind has an average speed of between 4.5 and 7m/s and the province has the potential to develop 6,500MW.

The province estimates that by 2030 if approximately 60 per cent of the technical potential is exploited, it will create revenue of $1.3 billion and a sustainable income for the province.

Hai Phong commences construction of logistics service centre worth 32 million USD

JD Future Explore V Ltd Co. from Hong Kong (China) held a ground-breaking ceremony on May 12 for a logistics service centre for e-commerce activities in the non-tariff zone and Nam Dinh Vu Industrial Zone.

The JD Property Logitics Park Hai Phong 1 will be built at a cost of 32 million USD on an area of 97,000m2 and is expected to be completed within the third quarter of 2024.

This logistics service centre will serve investors from many different countries and specialising in e-commerce activities – a booming area in Hai Phong with many advantages.

Vietnam’s garment sector records impressive export growth

Vietnam exported over 10.6 billion USD worth of garment products in the first three months of 2022, up nearly 20% over the same period last year, which is a positive signal for garment makers to expand their production.

Experts forecast that, with global consumption picking up, Vietnam’s garment export revenue is highly likely to reach 48 billion USD this year, an increase of nearly 6 billion USD compared to the target.

Currently, the majority of garment makers already have orders until September, with many even having orders until December.

According to the Vietnam Textile and Apparel Association (Vitas), the sector’s total export revenue reached over 10.6 billion USD in the first quarter of 2022, up nearly 20% over the same period last year. It was an impressive growth rate, and the full-year revenue is likely to hit 48 billion USD.

However, if Vietnamese garment makers want to capitalise on export opportunities, they need to be able to secure materials proactively and meet the requirements of new-generation free trade agreements. Recently, the European Commission proposed some new ecological regulations on garment products sold in the market, under which such products must have a long lifetime and be reusable and repairable.

Can Tho wants rail link with HCMC to be kicked off before 2030

Work on the 174-kilometer HCMC-Can Tho railway project should start before 2030, said Can Tho Vice Chairman Nguyen Ngoc He.

Le Tien Dung, director of the Can Tho Department of Transport, said that as planned, the railway would not be kicked off until 2030. However, preparations should be done before 2030, including the prefeasibility report.

Earlier, a representative of the consulting consortium which developed the prefeasibility report for the project said the railway was designed to start at the Tan Kien Station in HCMC’s Binh Chanh District and end at the Cai Rang Station in Can Tho. The project, which requires an estimated US$7 billion, will pass through six cities and provinces: Binh Duong, HCMC, Long An, Tien Giang, Vinh Long and Can Tho.

The double-track rail line would allow a maximum speed of 190 kilometers per hour for passenger trains and 120 kilometers per hour for cargo trains. It would take 75-80 minutes to travel between HCMC and Can Tho by train, while road travel currently takes 180-240 minutes.

The section in Can Tho will have a length of some 6.5 kilometers, including a four-kilometer elevated segment.

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