With the increasing project number and investment value, foreign invested enterprises have become a dynamic sector and an important growth driver for the Vietnamese economy, said Deputy Minister of Planning and Investment Do Thanh Trung.

With open policies and a favourable, stable, and increasingly improved business climate, Vietnam is one of the leading countries and has obtained many major achievements in foreign investment attraction, he told a workshop held by the Vietnam Investment Review in Hanoi on May 15.

Over the last 35 years, the foreign invested sector has always been considered an important part of the Vietnamese economy and given conditions by the Party and State to develop, cooperate, and compete healthily and fairly with other economic sectors, the deputy minister noted.

As of the end of April, Vietnam attracted nearly 446 billion USD in foreign investment, 280 billion USD of which had been disbursed, statistics show.

Despite impacts of the COVID-19 pandemic, Vietnam was still among the 20 biggest recipients of foreign investment in 2020 as reported by the UN Conference on Trade and Development (UNCTAD). This proves Vietnam’s successes in attracting external resources, Trung said.

The foreign invested sector has made substantially contributions to the country’s integration into the world, expansion of relations with other countries, and promotion of its position and role in the region and the world, he went on.

Vietnam is still assessed as an attractive investment destination, he said, citing a recent survey by the Japan External Trade Organisation (JETRO) which revealed that 60% of Japanese firms plan to expand operations in Vietnam in the next one or two years. Meanwhile, European investors rank Vietnam fifth among the leading global investment places.
Choi Joo-ho, General Director of Samsung Vietnam, said Samsung has invested in the country since 2008 and is now present in many localities like Thai Nguyen, Hanoi, and Bac Ninh.

As of 2022, the Korean group had poured 20 billion USD into Vietnam and created about 300,000 jobs. In particular, half of the Samsung mobile phones exported globally is produced in the country.

However, the UNCTAD report also pointed out that competition in foreign investment attraction among developing countries will become fierce, especially amid a forecast decline in foreign investment flows in 2023 and an increase in investment demand for post-pandemic recovery and development.

To attract more foreign direct investment (FDI), many foreign firms recommended Vietnam continue building a transparent, predictable, and optimal investment and business climate. Samsung Vietnam held that foreign investors should also boost social activities and contribute more to local economic growth.

Deputy Minister Trung said aside from measures for keeping macro-economic stability, improving infrastructure, and developing human resources, Vietnam will also carry out others, including promoting an ecosystem for science, technology, and innovation, devising a flexible management mechanism, developing a strong domestic sector able to cooperate with the foreign invested one, and focusing on high and new technologies, modern services, the manufacturing industry, information technology, and financial services.

The country will also bring into play its internal strength and competitive edges to enhance the ties between the domestic and foreign invested sectors so as to secure sustainable economic development, he added.

Deposit rates fall further

Following the central bank’s interest rate cuts in April, commercial banks have lowered deposit rates further this month.

Annual deposit rates now range from 7% to 9% at most banks, 1-1.7 percentage points lower than late last year.

Kienlongbank now applies a 7% yearly rate to nine-month deposits, down by 1.55 percentage points, the sharpest rate cut. Its deposit rate for the 24-month tenor is down by 45 basis points to 7.75% per year.

SaigonBank has lowered deposit rates by 0.6-0.8 percentage point for all tenors, with the rate for six-month, nine-month and 12-month terms standing at 7.6%, 7.7% and 8% per year, respectively.

ACB has reduced deposit rates for 24-month tenors by 30 basis points to 7.5% per year, while rates for other terms remain unchanged.

Deposit rates at the Big Four – Agribank, BIDV, Vietcombank and VietinBank – now range from 5.8% to 7.2% for tenors of less than 12 months.

ABBank, OCB and HDBank still offer interest rates of over 9% for 12-month deposits but conditions apply.

Hanoi industrial products, equipment and automation fair kicks off

The Hanoi Industrial Products, Machinery, Equipment and Automation Fair 2023 kicked off in the capital city on May 17.

Hosted by the municipal Department of Industry and Trade, the event offered a good opportunity for businesses to introduce their products and strengthen connections within the supply chain.

The trade fair saw the participation of local and foreign firms operating in the supporting industry from the Republic of Korea, Japan, Taiwan (China), Hong Kong (China), Thailand, and Malaysia, which are displaying products at 250 booths.

Addressing the event, Tran Thi Phuong Lan, Acting Director of the municipal Department of Industry and Trade, stressed that the city has deployed many solutions aimed at assisting enterprises in producing and trading supporting industrial products, machinery and equipment.

The fair was an ideal venue for local firms to introduce their products and enhance trade promotion activities, thus strengthening linkages within the supply chain in order to raise product quality and competitiveness, as well as improving their capacity to participate in the global supply chain of multinational corporations and foreign-invested enterprises, Lan said.

The event is scheduled to run until May 19.

Central Retail and Bac Giang sign MoU on lychee consumption

Central Retail Vietnam and Bắc Giang Provincial People's Committee signed a cooperation agreement on the sale of lychees on Tuesday in Bắc Giang City.

According to the agreement, Bắc Giang Province Department of Industry and Trade will provide Central Retail details of key agricultural manufacturing and trading units to connect and build consumption plans to meet the retailer’s needs and demands.

The province's Department of Industry and Trade also instructed companies, cooperatives, and suppliers to coordinate and complete the procedures in accordance with regulations. 

Central Retail Vietnam will inform cooperatives and businesses the requirements and processes involved to put lychees and other key agricultural products into its systems, like GO!, BigC, and Tops Market.

It will continue guiding to complete the requirements and processes for goods that have not yet qualified to be inserted into the system right away.

In 2023, Central Retail VN will consume about 300 tonnes of lychees from Lục Ngạn District. The total area of ​​lychee in Bắc Giang Province is 29,700 hectares, an increase of 1,400 hectares compared to 2022. The output is estimated at over 180,000 tonnes. 

Bac Ninh promises favourable conditions for Korean investors

The People’s Committee of northern Bac Ninh province and the Korean Embassy in Vietnam held a conference entitled “Meet Bac Ninh – Korea” on May 17.

Speaking at the event, Chairwoman of the provincial People’s Committee Nguyen Huong Giang said Bac Ninh always pays attention to promoting economic and investment cooperation with Korean partners.

Among 39 countries and territories currently investing in Bac Ninh, the Republic of Korea (RoK) is the biggest investor with 960 projects worth nearly 14.34 billion USD, accounting for 60% of the total foreign investment in the province.

Participating Korean firms discussed Bac Ninh's investment attraction policies and put forward recommendations and solutions to help Bac Ninh attract more investment and create favourable conditions for businesses to develop further.

On the occasion, relevant departments and agencies introduced the potential, strengths and investment attraction orientations of the province, and answered questions raised by enterprises.

Vietnam eyes stronger economic cooperation with China’s Guangdong province

The Vietnamese General Consulate in Guangzhou has exerted efforts to push up economic diplomacy in order to contribute to promoting the bilateral cooperation between Vietnam and Guangdong province – the largest locality with the strongest economy of China.

According to Consul General Vu Viet Anh, Guangdong’s economy focuses on manufacturing, processing agricultural products and food, and microbiological and telecommunications technologies. The locality boasts huge potential for cooperation with Vietnam.

In addition to agreements signed between the two nations, Vietnam and Guangdong province also have a mechanism to organise conferences reviewing economic, trade and investment cooperation between ministries, sectors and localities of Vietnam and Guangdong authorities, which was established in 2009.

Economic, trade, and investment cooperation between localities of Vietnam and Guangdong has recorded many achievements.

Statistics from China Customs showed that the trade turnover between Vietnam and Guangdong in 2022 reached 47 billion USD, accounting for 20.1% of the total import and export turnover between Vietnam and China. The figure hit 10.2 billion USD in the first three months of this year.

Businesses in Guangdong have invested billions of USD in Vietnam. The Shenzhen - Hai Phong Economic and Trade Zone invested by Shenzhen Shen Yue Joint Investment Company is one of the typical investment projects of Guangdong in Vietnam.

Anh said his office has worked hard on looking for Chinese partners and investors who use advanced technologies in production, and those interested in investing in Vietnam, and encouraged them to invest in areas where Vietnam has high demand such as green and sustainable development sustainability, new energy, and biomedical technology. It has also supported Vietnamese localities, ministries, and businesses to access the Chinese market.

In 2022, the Consulate General hosted or jointly organised a series of seminars and trade promotion conferences in order to stimulate economic, trade, and investment cooperation with Guangdong province, Anh said.

He underlined the need for Vietnamese enterprises to pay attention to improving the quality of exports to increase competitiveness, and strengthening trade and investment promotion activities in the Guangdong market, towards expanding bilateral economic, trade, and investment cooperation between Vietnam and the Chinese locality.

Capital needs breakthrough solutions to sci-tech firm development issues

Housing 149 out of Vietnam’s 712 sci-tech companies, Hanoi remains in need of breakthrough solutions so that the capital city can quickly raise the local quality and quantity of businesses to reflect its true potential.

In 2020, the municipal People’s Committee issued Plan 49/KH-UBND on supporting the growth of local enterprises toward 2025. The city is now taking the lead nationwide in the assistance and development of sci-tech firms who operate across a diverse range of sectors including ITC, biotechnology for agriculture and health, new material technology, and environmental protection technology.

Le Thanh Hieu, former head of the Hanoi Department of Science and Technology’s technology management office, said that 90% of the companies conduct research using their own capital or receive technology transfers from other organisations and individuals and make them part of their production, while a mere 10% of them incubate and develop technology from outcomes of State-funded projects.

According to Director of the department Nguyen Hong Son, the city has always paid attention to supporting science and technology enterprises via programmes and plans serving the implementation of various related development measures. As a result, the group has boldly invested in technological innovation and improved products’ quality and value.

The capital aims to have at least 200 firms of this kind by 2025. The current number of 149 is considered falling short of its potential. The local related support mechanism and measures still show shortcomings and shortages.

In particular, its incomplete legal framework regulating the type of sci-tech enterprises poses a significant barrier to the establishment and development of the firms. In addition, a few of them are allowed to participate in and lead projects to create new technologies and directly translate research and testing results into the production of commercial goods. Meanwhile, there are only three sci-tech enterprises recognised as key industrial manufacturers of the city.

Luu Hai Minh, Chairman of the Board at the Nhat Hai New Technology JSC – one of the three key manufacturers, said capital is the biggest difficulty facing enterprises in the field of science and technology. They cannot bring intellectual property to the bank as mortgage, while concessional loans are difficult to access, he explained.

To this end, the city will set aside 1.2-1.5% of its GRDP to invest in related development. The rate will be 1.5-2% in 2030.

Hanoi hosts Electric Energy Show 2023

Over 170 domestic and foreign enterprises are participating in the Electric Energy Show 2023 (ELECS 2023) which opened its doors in the capital city on Wednesday. 

During the three-day show, these firms will introduce their power generation equipment, new renewable energy equipment and distribution and transmission equipment at 250 booths. 

Among them are LS ELECTRIC, KEPCO, KEPCO KDN, Woon Young, YongSung Electric, DK Corporation, G-TOPS, Genad System, K-Solarplaza, Kiwon Solutec, NAUMADE, Elecnova Việt Nam and SUNHOUSE. 

The event is expected to create trade opportunities for Vietnamese and international businesses to meet, exchange experiences, expand cooperation, and access high-tech equipment and advanced achievements in the world to improve their production and business capacities, the event's organisers said.  

Thus, direct meetings among businesses, power producers and potential partners and customers will be held throughout the show, they said, adding that some seminars discussing issues related to the energy sector will also be held on the sidelines of the event.

According to organisers, 50 businesses from South Korea have participated in ELECS 2023. That has demonstrated the strong support from the two countries' governments under the agreement to strengthen cooperation on renewable energy and electricity saving.

Many of them have expressed interest in the Vietnamese market and were willing to meet directly with potential customers and partners in Việt Nam to exchange technology and business cooperation, they said.

Nguyen Thi Nga from LS ELECTRIC Vietnam said her company wanted to introduce new technologies in electricity and smart energy which were hot issues not only in Vietnam but also around the world.

Ngà said she hoped that these technologies would soon be applied in Việt Nam, helping the country reduce CO2 emissions.  

Jointly held by Korea Electrical Manufacturers Association, Korea Electric Power Corporation, Korea’s exhibition organiser - Coex and Việt Nam Advertisement and Fair Exhibition JSC, ELECS 2023 is expected to welcome about 20,000 visitors.  

HCM City looks to corporate world for its digital transformation

HCM City considers digital transformation one of its key tasks and wants businesses to be more proactive in offering efficient digital transformation solutions to it, its deputy chairman, Duong Anh Duc, has said.

He was speaking on the “People Ask – Government Answers” programme on a topic called “Investment in digital transformation in State management to serve people and businesses” held by the People's Council, the city legislature, along with HCM City Television and the Department of Information and Communications on May 14.

The city sets its development goals based on technology and so steadily increases investment in digital transformation, according to Duc. It spent 0.78 per cent of its budget on digital transformation in 2021, 0.97 per cent last year, and it is expected to exceed 1 per cent this year.

The city administration has instructed the Department of Information and Communications to comprehensively deploy core digital transformation applications and services, and pays close attention to developing skilled human resources to serve the digital transformation.

Of the businesses in the city IT sector, more than 98 per cent are small and medium-sized enterprises (SMEs), which is a huge resource for the city in digital transformation.

The People's Committee has instructed the Department of Information and Communications to build a digital transformation centre to showcase the city's digital transformation needs to businesses and for the latter to showcase their solutions.

It is the only locality in the country that has an investment stimulus programme, according to the official.

In the near future, when the National Assembly approves a resolution to supersede Resolution No.54 on specific mechanisms and policies for the development of the city, the stimulus programme could be expanded to many sectors.

In 2015 the People’s Committee began the programme, with technology, manufacturing, supporting industry, trading, agriculture, healthcare, education and training, culture and sports, infrastructure, and environmental companies receiving 50-100 per cent interest rate subsidies on loans of up to VND100 billion. 

Long An targets annual export growth of 10% or more

The Mekong Delta province of Long An targets annual export growth of 10-10.5 per cent for the rest of this decade.

It would focus on raising the export of processed and industrial goods, farm produce and aquatic products, Chau Thi Le, deputy director of the provincial Department of Industry and Trade, said.

The province also wants to diversify its export markets, with non-Asian markets expected to account for 40 per cent of shipments by 2030, she said.

It would increase the use of advanced machinery and technologies and clean technologies in production, she said.

She said to achieve the targets the province would continue with its ongoing restructure of the agricultural sector, which would increase added value and sustainability, creating highly competitive agricultural and aquatic produce that meet the requirements of import markets.

The province would review a number of products that currently fetch low export revenues or have not been exported but have high potential for exports, she said.

It will build brands for key agricultural export items and support enterprises with registering for their trademark protection.

It will also assist businesses, especially small and medium-sized enterprises, to carry out business and investment activities in accordance with international commitments, and help manufacturing and export enterprises innovate technologies, improve productivity and quality and increase local content in export items.

Long An will support research and development of new products to diversify exports and participate in global value chains.

It will improve the efficiency of Long An International Port, solicit investment in logistics; link up logistics and export companies; and develop human resources in various sectors, including services for exports.

Truong Van Liep, acting director of the province's Department of Planning and Investment, said businesses are still facing difficulties.

The Russia and Ukraine conflict has affected global supply chains, and inflation has spiked in many countries, prompting consumers to tighten purse springs.

In addition, many countries have stepped up exports, while imported inventory remains high in major markets like the US and the European Union. This has led to a sharp drop in export orders for the province, he added.

According to the province's statistics, its export turnover decreased by 29.8 per cent in the first four months of the year to $1.7 billion. 

FDI firms committed to expand production in Viet Nam

Many foreign direct investment (FDI) firms were committed to expanding production in Viet Nam, heard attendees at the conference “Strong Investment Partnerships for a Thriving Viet Nam” held in Ha Noi on Monday.

In a speech delivered at the event, Deputy Minister of Planning and Investment Do Thanh Trung said that with open and transparent investment attraction policies and a favourable, stable and constantly improving business environment, Viet Nam has been one of the leading countries and gained many important achievements in attracting foreign investment.

He added that in responding to a survey of the Japan External Trade Organisation (JETRO), up to 60 per cent of Japanese investors in Viet Nam said they would expand their business in Viet Nam in the next 1-2 years. This rate is the highest in ASEAN.

European investors ranked Viet Nam in the top 5 global investment destinations as 41 per cent of businesses surveyed by the European Chamber of Commerce in Viet Nam (EuroCham) said that they are moving their operations to Viet Nam.

According to the United Nations Conference on Trade and Development (UNCTAD), despite the impacts of the COVID-19 pandemic, Viet Nam is still in the Top 20 economies attracting the most foreign investment capital in the world. This has proven Viet Nam's success in attracting resources from outside.

The report also said global foreign investment flows tend to focus on high technology, innovation, research and development, green economy, digital economy, circular economy, and clean energy. These are all areas in which Viet Nam is making many special incentives and support measures.

“In the future, Viet Nam will build and develop an ecosystem of science - technology and innovation, with a flexible management mechanism, suitable for the digital business environment,” he added.

Sharing the ideas, Prof. Dr. Nguyen Mai, Chairman of the Viet Nam Association of Foreign-Invested Enterprises (VAFIE), said that a number of countries and multinational corporations have been adjusting investment in development strategies, with stricter investor screening and higher standards. Therefore, Viet Nam needs to observe and adjust the appropriate strategy to achieve the goal of attracting foreign investment and attracting more high-quality investors.

Furusawa Yasuyuki, Member of the Executive Officer Board of AEON Co Ltd (Japan) in charge of Viet Nam Business, and General Director of AEON Vietnam, said: “We realise that Viet Nam is in a period of rapid and outstanding growth, which is similar to the previous development stage of Japan. Therefore, we believe with AEON’s experiences and know-how accumulated in Japan, we can apply and contribute to the development of Viet Nam’s market.”

He added that the investment environment in Viet Nam also keeps changing but overall, they see more potential than challenges. Viet Nam will continue to attract more foreign investors in the future.

He revealed AEON Group has determined that Viet Nam is the 2nd key market besides Japan to accelerate our investment activities.

Khuat Quang Hung, Director of Corporate Affairs at Nestle Viet Nam, said: “With a commitment to long-term expansion and sustainable development, the group has invested in doubling the capacity of coffee processing and exporting factories in Viet Nam. At the same time, we are transferring technology and techniques of sustainable coffee farming to 26,000 farmer households - an important partner in supplying raw materials for Nestle. Sustainable farming has contributed to saving large production costs for farmers, improving the quality of coffee supplied to the factory.”

Hung added that this is one of the soft investments that Nestle has effectively made in Viet Nam in addition to hard investments into infrastructure and factories. Nestle will continue to invest in digital transformation – a factor that promotes the corporation's green transformation and sustainable development.

Hundreds of Government officials, senior economists, international organisations, and the business community participated in the conference hosted by Vietnam Investment Review (VIR) to discuss the contributions of foreign-invested enterprises to the country's development.

With four keynote speeches and two-panel discussions, the event covered success stories, lessons to learn, future plans, and possible solutions to welcome new investments across a range of sectors nationwide.

In addition, experts also highlighted new capital flows and competitive opportunities in the region, especially high-quality foreign investment flows into Viet Nam.

Southern economic locomotive selective in FDI attraction

Provinces and centrally-run cities in the Southern Key Economic Zone are now more selective in attracting foreign direct investment (FDI) by giving priority to high-tech, environmentally-friendly and less labour-intensive projects.

Since the beginning of 2023, major economic and industrial hubs in the region like Ho Chi Minh City, and Dong Nai and Binh Duong provinces have worked to upgrade the quality of foreign investments.

Speaking at a working session with Japan's SMC Corporation on May 10, Director of Dong Nai province’s Department of Planning and Investment Nguyen Huu Nguyen said the locality is luring investment in clean, environmentally friendly technologies, and less labour-intensive projects.

Under a draft project on FDI attraction for 2023-2025, HCM City also set a target of raising the number of multi-national groups included in the list of the world’s 500 largest corporations by the US Fortune Magazine in the city by 50%.

The rate of firms using cutting-edge technologies and modern administration in HCM City is also expected to increase by 50% per year.

The southern largest economic hub will “roll out red carpet” for investors in e-commerce, logistics and retail, industries with high added values and AI-powered projects.  

Tran Viet Ha, deputy head of the HCM City Export Processing and Industrial Zones Authority (HEPZA), noted that the city will work harder to improve its investment and business environment instead of capitalising on tax incentives.

Such FDI attraction orientations have received the warm response from foreign investors, as reflected through new large-scale FDI projects launched in the localities, using renewable energy.

Notably, Danish toy maker LEGO on November 3, 2022, began construction of an over-1.3 billion-USD factory in Binh Duong, which will be operated by solar energy.

Rajib Gupta, Chairman of the Indian Business Chamber in Vietnam, described the southern region as as magnet for foreign investors, noting that Indian investors are interested in IT, pharmacy, high-tech agriculture and renewable energy in the region.

In an effort to attract more high-tech projects, Becamex IDC Industrial Development and Investment Corporation of Vietnam and Singapore’s Sembcorp Development Ltd. in February 2023 signed a memorandum of understanding on cooperation in developing five green, smart, sustainable industrial parks in Vietnam within the next three years, including those in Binh Duong.

Gia Dinh Group and SEP Cooperative of the Republic of Korea (RoK) in April also inked another MoU on cooperation in building a “Net Zero” industrial cluster in Phu Giao district of Binh Duong province.

In Dong Nai province, most of new projects specialise in supporting, processing and manufacturing industries and use state-of-the-art technologies, said Director of the provincial Department of Planning and Investment Nguyen Huu Nguyen.

In the first quarter of this year, Dong Nai attracted seven projects worth 30.46 million USD in supporting industries, making up 58% of the total newly-registered capital in the province, he added.

Ample room remains for Vietnamese exports to Africa

There remains an ample room for Vietnamese exports to Africa, as the country accounts for only 0.6% of the continent's total import of 600 billion USD per year, according to the Ministry of Industry and Trade, given opportunities brought about by the African Continental Free Trade Area (AfCFTA) agreement.

The Asian-African Market Department said that trade between Vietnam and Africa increased from 2.52 billion USD in 2010 to 5.5 billion USD in 2022.

Of the total, Vietnam’s exports were valued at more than 2.8 billion USD, resulting in a trade surplus of 226.3 million USD.

Vietnam mainly shipped rice (568.6 million USD), phones and component parts (355.6 million USD), computers and electronic products (210.4 million USD), and footwear (141.8 million USD) to Africa.

Meanwhile, it bought cashew nuts (1.1 billion USD), metals (484.1 million USD), and wood and wood products (114.3 million USD) from this continent.

In the coming time, to facilitate intra-bloc trade, African nations will pour more capital into infrastructure facilities, thus opening up more opportunities for Vietnamese goods to access more markets, including 15 landlocked countries, in Africa. At present, Vietnam’s main export markets in the region are major economies with seaports such as South Africa, Egypt and Nigeria.

Countries around the world are planning to study, negotiate and sign international trade agreements, especially free trade agreements (FTAs), with the African Continental Free Trade Area.

This will help them save time negotiating with individual countries or regions (Africa currently has 55 countries divided into eight economic regions). In fact, African countries have quite similar production structures, mainly primary products such as crude oil, raw agricultural products, minerals, and precious metals, according to the ministry.

Even if the AfCFTA agreement takes effect across the region, the continent still cannot guarantee the supply of machinery, equipment, rice, textiles, footwear, and processed aquatic products; and still has to depend on imports from foreign countries.

Therefore, there remains huge potential for Vietnam to export its key commodities such as rice, coffee, garment and textiles, footwear, and aquatic products to Africa.

Vietnam can increase its exports of textile, leather and footwear products to Africa by promoting competitive advantages such as low labour costs, good sewing techniques, and high quality products, if the nation or the Association of Southeast Asian Nations (ASEAN) negotiates a trade agreement with the AfCFTA, the ministry said.

The AfCFTA is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight Regional Economic Communities (RECs). The overall mandate of the AfCFTA is to create a single continental market with a population of about 1.3 billion people and a combined GDP of approximately 3.4 trillion USD.

Workshop seeks measures to boost Vietnam-Russia economic, trade cooperation

The Vietnamese Embassy in Russia on May 15 organised a workshop in Moscow to promote bilateral economic and trade cooperation.

Trade Counselor Duong Hoang Minh said that in 2021, the two countries saw a record-high two-way trade turnover of 7.1 billion USD.

It reduced by half in 2022, and the figure in the first four months of this year was 1.01 billion USD.

Minh said that for the two countries to get a higher bilateral trade revenue, their businesses need to better take advantage of potential and opportunities.

Acting Director of the Department of Multilateral Economic Cooperation and Special Projects of the Ministry of Economic Development of Russia Nikita Kondratiev said that in 2022, bilateral trade faced difficulties, including supply chain disruptions, payment issues, and certain restrictions on investment.

However, there were still silver linings of the cloud such as the opening of sea routes by FESCO transport Group from Vietnamese ports to Vladivostok port or TransContainer transporting consumer goods from Vietnam to Russia by rail.

At the workshop, representatives of businesses raised problems and opportunities as well as proposed measures to strengthen economic trade cooperation between the two countries.

Ambassador Dang Minh Khoi pointed to problems in institutions and mechanisms that hinder the economic and trade activities between the two countries. particularly the issues relating to payment and visa for Vietnamese businessmen to Russia to seek cooperation opportunities.

Securities companies must comply with regulations on deposit management: SSC

Securities companies must strictly manage securities trading deposits of investors, and must not carry out activities that make investors understand that they mobilise deposits.

This is a recent requirement of the State Securities Commission (SSC). Specifically, the State Securities Commission said that it has directed securities companies to improve operational quality and financial safety.

The regulatory agency requires securities companies to strictly comply with securities law provisions; must not conduct business activities, provide securities and financial services without being licensed by the State Securities Commission.

Securities companies ensure the liquidity, and payment of securities trading deposits for investors in all situations.

SSC also requires securities companies to strengthen internal control, and risk management, to fulfil the obligations and responsibilities of the company as prescribed in Article 89 of the Law on Securities and other relevant laws.

It has also directed securities companies to strengthen the management of their employees; when advising clients, the number of employee certificates must be announced; the employees are not allowed to join online forums and groups that are not approved by securities companies to give advice on financial investment, to entice investors to buy and sell securities, as a representative of their securities company.

When participating in forums and groups approved by the securities company, the employees must not perform prohibited acts that the securities company restricted or disallowed.

SSC required securities companies to strengthen information security and safety, monitor and detect links leading to fake websites of the securities company, illegal use of images and trademark of the securities company.

When detecting suspicious links, websites, social networks, groups, and forums online, securities companies should immediately notify the police and promptly warn them to take measures to prevent and limit damage.

The SSC stated that, in the new context of the market, improving the quality of operations of securities companies continues to be a priority of the management agency.

The system of securities companies plays an important role in the active and transparent development of the stock market. Therefore, the quality of service provision to customers of securities companies will be enhanced, which will help support the market to develop healthier and more sustainably.

Back to capital raising race for securities firms

Many securities companies have returned to the capital raising race after the ups and downs of the stock market.

While none too significant, some companies have announced plans for capital raising through additional share issuances after the 2023 Annual General Meeting of Shareholders.

Particularly, Techcombank Securities JSC (TCBS) set a key plan of releasing private shares worth more than VND10 trillion (US$426.3 million), with the issuance date starting from the end of the second quarter to the beginning of the thir quarter.

TCBS's charter capital is now approximately more than VND1.1 trillion. If the plan is completed, the company's charter capital will increase to about VND11.1 trillion, exceeding its equity to over VND21 trillion and listing TCBS in the top securities companies with the largest equity in the industry.

According to TCBS, this is a strategic step to make the company become the largest technology asset management company in Viet Nam in terms of equity, profit and operational efficiency in core areas.

Tien Phong Securities Corporation is also expected to issue another 200 million shares to double its charter capital, from VND2 trillion to VND4 trillion, with two options. One is to issue stock purchase rights for existing shareholders, while the other is through private placement. The implementation date is set to be in 2023 or the first quarter of 2024.

Meanwhile, shareholders of Viet First Securities Corporation just approved a capital increase plan, expected to triple its size to more than VND2.4 trillion through private placement and share issuance at the ratio of 1:1. The securities firm plans to use the additional capital to serve proprietary trading and margin lending.

Vietcap Securities JSC also approved a plan to release more than 100 million shares to pay dividends at the rate of 30 per cent, and 2 million ESOP shares at the price of VND12,000 a share. Once the issuance is successful, the charter capital of VCI will rise to more than VND5.38 trillion.

Similarly, VIX Securities JSC wants to issue more than 29 million shares to pay dividends for existing shareholders and more than 58 million bonus shares at the rate of 15 per cent, if the issuance is successful, its charter capital will rise up to nearly VND6.7 trillion.

Even though it has not been officially announced, the leading broker, VPBank Securities is expected to issue ESOPs through a private placement in 2023.

As the market has not yet been active and the liquidity remains at low levels, plans to mobilise new capital from existing shareholders become more challenging. Therefore, most securities companies choose to offer private placements or issue shares to pay dividends to increase charter capital.

From 2021 to early 2022, when the stock market was booming, issuing new shares was the main momentum of securities companies' capital-raising strategies due to the sudden high demand from investors.

Switzerland increases coffee imports from Vietnam

Switzerland imported coffee from over 50 countries and territories, mainly from Brazil, Colombia, India, Costa Rica, and Vietnam in the first quarter of the year.

Notably, its coffee imports from Vietnam rose to 4,820 tonnes worth US$10.81 million, up 2.6% in volume and 5.3% in value against the same period from last year, reported the Import and Export Department under the Ministry of Industry and Trade.

Vietnam’s coffee market share in Switzerland’s total coffee imports also increased from 8.56% in the first quarter of 2022 to 9.17% a year later.

The first quarter of 2023 witnessed Vietnam ship abroad 552,610 tonnes of coffee worth approximately US$1.23 billion, down 5.0% in volume and 5.4% in value year on year. The average coffee export price also dropped by 0.3% year on year to US$2,222 per tonne.

Elsewhere, Vietnamese coffee exports to most markets recorded an upward trend, with the exception of Belgium, Spain, Japan, and the Netherlands.

Most notably, coffee exports to Indonesia and Algeria recorded triple-digit growth compared to the first quarter of last year, at 209% and 126,8% respectively.

Elsewhere, export earnings to the United States soared by 26.9% to reach more than US$86 million, while exports to the EU market fell by 8.2% to US$473.7 million year on year.

These figures indicate that EU is Vietnam’s largest coffee export markets, accounting for nearly 40% of total exports.

Phu Quoc looks forward to RoK investment flow

The administration of Phu Quoc City of Kien Giang Province had a meeting with a delegation of Yeonsu-gu District of Incheon City of the Republic of Korea on May 16, examining cooperation opportunities in trade, tourism and other fields.

Huynh Quang Hung, head of the Phu Quoc administration, briefed the guests on the city’s tourism development potential, saying the island district dubbed the pearl paradise in Vietnam has attracted approximately 300 projects valued at US$17 billion to develop resorts and tourism services.

Phu Quoc had welcomed between 2.5 – 3 million visitors per year before COVID-19 broke out, and more than 2 million visitors returned to the island district in 2022 when Vietnam reopened its borders.

Phu Quoc also wishes to attract investment and promote trade and tourism development with Yeonsu-gu District for mutual benefit, said Hung.

For his part, Lee Jae-ho, mayor of Yeonsu-gu, noted that Phu Quoc has a lot of potential for tourism development, saying Korean firms find Phu Quoc an attractive investment environment, a market with many opportunities and good development policies for domestic and foreign investors in Vietnam.

Yeonsu-gu wishes to be twined with Phu Quoc to promote the development of education, economy, tourism, ecological zones, and resorts in order to facilitate trade exchanges between the two sides, said Lee.

At the meeting, representatives of Phu Quoc and Yeonsu-gu signed a letter of intent on friendly exchanges between the two sides.

HCMC disburses VND8,200 billion in public investment capital

HCMC had disbursed VND8,236 billion in public investment capital in the year to May 12, representing 20% of the full-year target set by the city government.

In the first four months of the year, the city’s total disbursements were VND2,511 billion, accounting for 6% of the city’s 2023 plan for VND41,526 billion or 3.6% of the VND70,500-billion target allocated for the city by the prime minister.

But in May alone, the city has disbursed more than VND5,600 billion to pay compensation for households and organizations affected by the HCMC Beltway No. 3 project.

The city’s public investment capital disbursements in the year to May 12 had met 12% of the objective set by the prime minister for HCMC this year. The city wants to increase the disbursement rate to 28% of the year’s target by the end of June.

Of the VND70,500-billion target for public investment approved by the prime minister, VND55,225 billion will come from the city’s own budget and VND15,293 billion from the central State budget.

The city has made efforts to accelerate disbursement to meet 95% of the total public investment goal. Therefore, 13 working groups have been established to inspect 38 major projects in the city to make sure their execution is on track.

Bond market still gloomy – FiinRatings

Following a surge in corporate bond issues in March, the bond market has returned to its lackluster state with merely one issue done in April, according to credit rating agency FiinRatings.

North Star Holdings JSC on April 14 issued bonds worth VND671 billion, a mere 2.5% of the total recorded in March.

The bond comes with a term of 16 months and a coupon rate of 14% per year, the highest since January.

Bond buybacks in the month amounted to around VND11.3 trillion, slumping 41.6% versus March and 10% against last April.

The central bank’s Circular 03, which enables banks to buy back corporate bonds issued by unlisted companies within 12 months after they were issued, has helped improve investor sentiment, reduce the proportion of individual investors and stabilize the market, the credit rating agency said.

Last month, most of the buybacks were conducted by banks, accounting for 61% of the total value. Banks’ early redemption of bonds in April surged by 5.6-fold over March and 2.4-fold compared to the same period in 2022.

Meanwhile, 98 issuers were late in settling bond coupon and principal, with a total value of VND128.5 trillion as of May 4, up 13.6% compared to the last update.

Government prioritizes developing HCMC-Can Tho express railway

The Government will prioritize investment in traffic infrastructure projects in the Mekong Delta, especially a high-speed railway between HCMC and Can Tho City, Prime Minister Pham Minh Chinh told a meeting with businesses in Can Tho on May 14.

The HCMC-Can Tho rail line project that connects the Southeast region with the capital of the Mekong Delta was planned 10 years ago. Recently, the Ministry of Transport and local authorities restarted the project.

The 174-kilometer railway will start at An Binh Station in Binh Duong Province and end at Can Tho Station. It will run through six cities and provinces, including Binh Duong, HCMC, Long An, Tien Giang, Vinh Long and Can Tho.

The rail line will require a total of around US$9 billion.

The PM also urged relevant departments and agencies to speed up work on two major roads in the Mekong Delta, namely HCMC-Ca Mau expressway and the axis East-West road passing through Soc Trang, Can Tho, Hau Giang and An Giang.

The Government has allocated around VND400 trillion for traffic infrastructure this term, three to four times higher than in the previous term.

Trade office, embassy explore chances for Vietnamese firms in Africa

The Trade Office and Embassy of Vietnam in Algeria are attending the ninth African Investment and Commerce Forum (AFIC9) in Algiers on May 16-17 to popularise Vietnamese goods and seek investment and business opportunities for Vietnamese enterprises.

AFIC9, held by the Arab-African Centre for Investment and Development (CAAID), aims to connect over 650 economic agents, including investors, leaders of regional and international organisations, experts, researchers, and representatives of trade offices of 37 countries.

Aside from joining workshops on trade and investment in Algeria and Africa, the Trade Office and Embassy of Vietnam have displayed and introduced a number of Vietnamese commodities such as coffee, tea, rice, peppercorn, cashew nut, milk, canned products, and handicrafts. Lists of reputable exporters and catalogues have also been distributed to participants.

Besides, the Trade Office has met with Algerian and African businesses to learn about their demand and explore opportunities for business and investment partnerships with Vietnamese firms.

Hoang Duc Nhuan, Trade Counsellor of Vietnam in Algeria, said Vietnam and African countries hold much potential for trade and investment cooperation, noting that bilateral trade and investment have been growing well over the past years.

Trade between Vietnam and Africa reached 5.4 billion USD in 2022, including 2.8 billion USD in Vietnam’s exports. The main African trade partners of the Southeast Asian nation include Egypt, South Africa, Côte d’Ivoire, Ghana, and Algeria, according to the General Department of Vietnam Customs.

Last year, Vietnam attracted about 2.7 billion USD in investment from Africa with such major investors as Seychelles, Mauritius, and Angola. Meanwhile, it had invested 2.4 billion USD in 17 African countries as of February 2022, with the biggest recipients being Algeria, Mozambique, Tanzania, and Burundi.

Nhuan held that Algeria and Africa’s promotion of integration, especially via the African Continental Free Trade Area (AfCFTA), is creating numerous chances for Vietnamese enterprises.

Companies of Vietnam can directly invest in some countries with big populations, political stability, and abundant material supply so as to capitalise on the AfCFTA to export goods to other African countries, he suggested.

Despite certain difficulties related to geographical distance and trade rules, if Vietnamese enterprises thoroughly learn about African markets, they can successfully enter these markets since most of the African firms have demand for imports to serve the growing population and consumer goods demand in the continent, which can be considered highly potential for strong exports of Vietnam, he added.

Canadians to receive first VinFast VF8 series in June 3023

A shipment of 781 electric vehicles (VF8 series) manufactured by leading Vietnamese automaker VinFast arrived at the Canadian port of Nanaimo in British Columbia on May 18, VinFast has said. 
      
This is the first shipment of VinFast’s VF8 Eco and Plus series to be delivered to Canadian customers.

The Eco and Plus models boast the ranges at 264 miles and 243 miles per charge respectively. The Eco might boast the longest driving range but the Plus model delivers the most luxury features, including a panoramic glass roof, leather upholstery, and second-row captain's chairs.

VinFast says it will provide 10-year/125,000-mile warranty coverage or 10-year/unlimited mileage for the vehicle, along with mobile repair and 24/7 rescue service during the warranty period.

According to the automaker, all of its VF8s have passed tests in accordance with the regulations of the National Highway Traffic Safety Administration of the US.

The firm has also been licensed to market its VF8s in both the US and Cananda. It is expected that the firm will hand over the VF8s to customers from June 2023.

In Canada, the VF8 Eco version changes hand at CAD53,600, while the VF8 Plus version starts at CAD59,200. In addition, the Plus version also has the option to upgrade the power from 260 kW to 300 kW with an additional price of CAD1,500/vehicle.

Earlier, a shipment of 1,098 VF8s reached the US port of Benicia in California on May 12.

WTO Director-General in dialogue with women entrepreneurs in Hanoi

WTO Director-General Ngozi Okonjo-Iweala held a dialogue with Hanoi’s female entrepreneurs on May 17 as part of her working visit to Vietnam.

During the meeting, Okonjo-Iweala introduced the Organization and discussed the initiatives taken by the WTO to promote women's economic empowerment.

She also highlighted the cooperative programs and plans between the WTO and Vietnam to promote and support women entrepreneurs in their participation in international trade.

Vu Ba Phu, Head of the Trade Promotion Agency under the Ministry of Industry and Trade, highlighted Vietnam's active efforts to implement and coordinate with international agencies and organizations.

"This cooperation aims to take advantage of technical assistance from foreign partners in the field of trade promotion and ultimately to improve the capabilities of Vietnamese enterprises, associations, and localities," Phu said.

Specifically, Phu noted that the Trade Promotion Authority had been actively promoting initiatives to support the marketing of products from businesses, including women-owned enterprises.

As part of their collaboration with the International Trade Center (ITC), both have established the SheTrades Vietnam Project Office to provide more effective support to women entrepreneurs and start-ups seeking to engage in the global value chain.

During the meeting, Nguyen Thi Tuyet Minh, Founder and Chairperson of the WeLead Network, emphasized the importance of this opportunity for Vietnamese women and women-owned businesses to keep abreast of the activities of the WTO.

She expressed her expectation that the WTO will work with Vietnam to promote and support the participation of women entrepreneurs in international trade and to consult on issues of concern to Vietnamese women entrepreneurs.

Nguyen Thi Huong Lien, co-founder of Hanoi-based Sao Thai Duong Company, shared Vietnamese women entrepreneurs' determination and approach to challenges.

The meeting and dialogue with the WTO Director-General reflect the Ministry of Industry and Trade's commitment, supported by the Permanent Mission of Vietnam to the United Nations, the WTO, the ITC, Welead, and other relevant organizations, to empower women-owned entrepreneurs and businesses.

This initiative aims to provide them opportunities to network, exchange ideas, and seek advice from the WTO's top leaders. This will increase their knowledge, facilitate access to sustainable business development opportunities, and enable their participation in Vietnam's integration into the global market.

A survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI) in 2021 found that Hanoi was among the top localities with the highest proportion of women-owned businesses, at 30%, higher than the national average of 27.4%.

Most women-owned businesses were micro or small (accounting for 90.7% of the total number of women-owned businesses), and their average size was smaller than that of male-owned businesses. Up to 61.3 % of women-owned businesses originated from individual business households.

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