Vietnam's GDP expanded by a healthy 5.66 per cent in the first quarter of 2024, marking the strongest first-quarter growth since 2020. While slower than the previous quarter's 6.7 per cent growth, this momentum indicates the country is on track to achieve its 2024 economic targets.

The report also reveals that as the underlying economic outlook remains positive, consumer confidence in an economic recovery has reached a five-quarter high. While concerns about household incomes have eased, worries about rising living costs, particularly due to the proposed electricity price increases, have emerged.

Despite improved consumer confidence, the first quarter of 2024 witnessed a subdued performance in take-home fast-moving consumer goods (FMCG) despite a boost from the Tet 2024 (Lunar New Year) holiday. Both urban and rural areas experienced a decline in FMCG volume during the first quarter of 2024, leading to an overall value setback in total FMCG despite slowing grocery inflation. This decline was primarily driven by the food and beverage sectors, with stricter enforcement of legislation on driving under the influence significantly impacting alcoholic purchases.

The decline in alcoholic beverage sales accounted for 30 per cent of FMCG loss, followed by dairy and packaged foods. Conversely, personal care and cooking aids witnessed growth in the festive season.

In addition, online gained significant short-term retail value share in the first quarter of 2024, and is steadily growing in the long term, positioning itself to be the future driver of FMCG expansion. In rural areas, large provisions stores and specialty stores have been growing in prominence over the years.

While FMCG value during the eight-week period around Tet 2024 declined compared to the previous year, it still surpassed the peak of the 2019-2022 period. Notably, a significant portion of this decline can be attributed to reduced beer value in both urban and rural markets during the festive season.

Vietnam – rising star in Indo-Pacific: Canadian agency

The Export Development Canada (EDC) has publicised an article “Doing business in Vietnam: Catch this rising star in the Indo-Pacific” in which, its author - international trade writer Carol Fragiskos emphasised that strategic location makes it an ideal logistics and distribution hub.

In his writing, Fragiskos said that Vietnam is called the Land of the Ascending Dragon. While its unique geographical shape may have inspired the original nickname, these days, it could be referring to its rapid economic growth

Based on data from World Economics, in the last 10 years, its compound annual growth rate has been more than 8%. Last year, Vietnam’s gross domestic product (GDP) grew by more than 5%, with forecasts for this year and next, sitting at 6% and 7%, respectively.

"With numbers like these, it’s no wonder EDC chose Vietnam for our next representation in the Indo-Pacific," he wrote.

Scheduled to open in fall 2024, the in-market team will be led by Nathan Nelson, EDC’s first chief representative in Vietnam and innovation director for the Indo-Pacific.

In his new role, Nelson’s intention is clear: Double the amount of trade from Canada to Vietnam in the next five years.

According to the writing, Vietnam lies at the centre of the Indo-Pacific region. Located near major markets in Asia—with access to key global shipping routes—its strategic location makes it an ideal logistics and distribution hub. But it’s more than geography that makes this country a strong bet, Fragiskos emphasised.

He added that Vietnam’s middle-class growth is outpacing all others in the region. Though smaller than some of its neighbours, Vietnam’s population of close to 100 million is significant, especially considering that half are under the age of 30.

According to the International Labour Organisation, although minimum wages are rising, Vietnam’s labour costs are still lower than similar countries in the Indo-Pacific. As it shifts to higher-value industrial activities, it’s becoming an increasingly sought-after market for those with manufacturing interests.

The writer also stressed that politically stable, Vietnamese government is committed to economic reform and liberalisation. Its progressive foreign investment environment offers tax incentives and preferential rates in certain priority sectors and geographic areas. Perhaps more importantly, a transparent legal framework and predictable regulatory regime provide additional confidence for companies looking to do business in this market.

He added that Vietnam is investing heavily into infrastructure development. Committed to net zero by 2050, the country’s also looking to rapidly increase its renewable energy mix. Multiple nationwide projects are underway in green energy, waste management and sustainable urban development.

In addition, Vietnam has a healthy digital economy expected to reach 38 billion USD by 2025. Multiple sectors—including e-commerce, financial technology and artificial intelligence—have been boosted by initiatives that support innovation and entrepreneurship.

As a member of several bilateral and multilateral free trade agreements—including with China, India, the European Union and the Association of Southeast Asian Nations (ASEAN)—Vietnam is a country that’s wide open for business.

Canadian exporters have preferential access to this fast-growth market through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which eliminates tariffs and reduces barriers for 98% of exports to member states.

Vietnam is Canada’s largest trading partner in the ASEAN, with bilateral trade in goods totalling 14 billion CAD (10.2 billion USD) in 2023.

However, that trade is one-sided, with Canada’s exports to Vietnam under 1 billion CAD.

Nelson said as quoted in the writing that after a lot of market analysis, EDC can confidently say that Vietnam has something for everyone. It’s the new star in the Indo-Pacific, especially for companies looking to diversify beyond China.

Nelson also said that now is important time for Vietnam. The country has been investing heavily in infrastructure development and is already an incredible manufacturing hub. For those reasons, he’s focused on identifying which advanced manufacturing and infrastructure projects mesh closest with Canadian capabilities, so he can foster connections and build capacity./.

Stock market gains momentum with improved liquidity and positive Q1 results

The stock market in Việt Nam is experiencing an upward momentum driven by improved liquidity and positive Q1 results, with experts cautiously optimistic about an increased cash flow.

Despite a relatively softer information flow, experts maintain an optimistic outlook for a potential breakout rather than a significant decline.

However, they cautiously acknowledge the possibility of market volatility in certain expensive sectors.

The VN-Index has displayed a robust upward trend, surpassing critical price levels of 1,190 - 1,200 points and 1,240 - 1,250 points.

An important development is the positive momentum of the VN-Index attracting cash flow back into the market from outside sources.

This has contributed to increased liquidity on the HCM Stock Exchange (HoSE), with average daily trading values rising from around VNĐ15 trillion per session to approximately VNĐ20 trillion per session. While liquidity has improved, it remains relatively low.

However, cash flow has been circulating effectively from large-cap stocks to small and medium-cap stocks, prolonging the upward momentum of the index.

Notably, stocks of large-cap companies such as Vietjet (VJC), Hòa Phát Group (HPG), Petrolimex (PLX), FPT Corporation (FPT), and Mobile World Group (MWG) witnessed price increases in the past week.

Nguyễn Thành Trung, Director of Investment Consulting at Thành Công Securities (TCSC), said: "When investors feel more confident and perceive reduced risks, they will return to the market. Therefore, in the short term, the market is expected to be more stable as the exchange rate has been well controlled and is no longer subject to significant fluctuations. With limited optimism in alternative investment channels, stocks are currently not overly valued."

Statistics from securities companies reveal that investor deposit balances at these firms reached nearly VNĐ100.8 trillion by the end of the first quarter of 2024, representing an increase of over VNĐ21 trillion compared to the beginning of the year.

This marks the strongest quarterly growth in the past five years. Additionally, in April, there were 110,761 new securities accounts opened, indicating a considerable inflow of new funds waiting to be invested in stocks, given the less attractive nature of other investment channels.

Nguyễn Tuấn Anh, Chairman of the FinPeace Board of Directors, recognised that liquidity is expected to increase further when the VN-Index surpasses the threshold of 1,293 points, initiating a new uptrend. Conversely, a significant market decline may attract speculative cash flow seeking undervalued opportunities.

In the first quarter of 2024, SSI Research assesses that while certain industries like real estate, electricity, water, petroleum and gas are still experiencing a downward cycle, most other sectors are gradually recovering.

The overall financial health of businesses is improving, with many industry groups reporting positive profits. Additionally, some industries have reached their lowest point and are now returning to a growth trajectory.

According to SSI Research, business profits have likely surpassed the most challenging period and are entering a more stable growth phase.

Mirae Asset believes that the positive business results in the first quarter will generate momentum for growth throughout the rest of 2024.

With 395 companies listed on the HoSE disclosing their Q1 2024 financial results, the overall outlook presents a series of encouraging signals, particularly when compared to the profit growth targets set by listed companies for the year.

VNDIRECT maintains its profit growth forecast for HoSE-listed businesses in 2024 at 16-18 per cent compared to the previous year.

VNDIRECT said: "It is expected that the VN-Index will reach 1,300-1,350 by the end of 2024, corresponding to a target P/E ratio of 14-14.2 times."

Offering advice to investors, Bùi Văn Huy, Director of DSC Securities HCM City Branch, suggests adopting a moderate investment approach and allocating remaining funds according to the global market trends and their impact on the domestic market. Investors should reserve a portion of their funds to remain prepared for various scenarios.

Selecting the right stocks and maintaining a balanced portfolio proportion is crucial. 

VN seafood exports up 6% in first four months

Việt Nam’s seafood exports during the first four months of the year reached US$2.7 billion, up 6 per cent, with exports of many products seeing positive growth in April.

According to the Việt Nam Association of Seafood Exporters and Producers (VASEP), the country’s seafood exports in April reached $700 million, up 4 per cent year-on-year.

Shrimp exports were in April were similar to that of the same month last year at around $285 million, the highest amount since the start of the year.

According to businesses, shrimp exports are recovering as the inventory stocks are falling and need to be refilled, but actual consumer demand has not shown signs of growth.

Average export prices are still lower than two years ago.

The US is considering recognising Việt Nam as having a market economy status, which is expected to remove the trade barrier of anti-subsidy taxes, which would help Vietnamese shrimp exporters.

Lê Hằng, communications director of VASEP, said that tra fish exports in April reached $168 million, up 13 per cent, which is a positive sign after tra fish exports dropped in February and March.

Exports to the US market are seeing positive signs after Vietnamese tra fish businesses partook in the Seafood Expo North America in Boston in March, she said, adding that they also participated in Spain’s Seafood Expo Global in April.

In addition to frozen tra fish fillet, they focused on promoting deep processed catfish products with high added value, garnering the attention of importers and visitors at the exhibitions.

Tuna exports in April were up 28 per cent, exports of squid and octopus were down 14 per cent, and shelled mollusks were up 14 per cent.

Lê Hằng said that Việt Nam’s tuna, squid, octopus and sea fish processing industries are all facing the shortage of raw materials. Domestic supply is not enough to fulfill demand, so they have to import from other countries.

Regulations from the EU and Việt Nam’s new regulations to tackle illegal, unreported and irregular fishing are further hindering local supply.

For example, Vietnamese importers are now expected to notify and declare documents 72 hours before docking for foreign ships or 48 hours for container ships, which many consider to be unreasonable.

They are also unclear about a new regulation on how exporters cannot “mix together” raw seafood materials that are imported with raw seafood materials that are harvested domestically in the same batch of exported goods.

Meanwhile, exports of crab in April surged 101 per cent, with China being the main market and live crab being the key product. Other products have strong potential in China due to its close location to Việt Nam, such as live lobster and sea cucumber.

Among the top five largest export markets of Việt Nam, Japan and Korea saw slight growth in seafood imports, while the others remained the same or even fell. 

Exports to China have been dropping since February, as the country has many suppliers to choose from, with competitive prices.

According to seafood exporters, if the challenges surrounding importing raw seafood materials are alleviated, exports during the second half of the year will be more favourable. 

Weak bank reform to facilitate expansion activities

A number of domestic banks are planning to restructure distressed zero-VND banks, but experts warn that the process is fraught with significant risks, such as rising non-performing loans and unresolved debts.

At a late April AGM, VPBank chairman Ngo Chi Dung addressed concerns regarding the bank’s involvement in restructuring a zero-VND bank - a financial institution under special control by the State Bank of Vietnam (SBV), acquired for zero due to their negative equity.

The financial landscape includes four such banks: OceanBank, CBBank, GPBank, and DongABank.

“From a strictly financial standpoint, most banks are reluctant to undertake such restructuring. However, VPBank’s participation is motivated by broader strategic goals,” Dung said.

Dung pointed out that the involvement of strategic shareholder SMBC has fortified VPBank with a substantial capital base, enabling its participation in the restructuring efforts.

“Although this restructuring does not offer immediate financial returns, it facilitates our expansion strategy. Notably, it allows us to pursue higher credit growth and potentially increase our foreign ownership limit beyond the current 30 per cent cap,” he explained.

Banks are generally capped at a 30 per cent foreign ownership limit, but with strategic investors, VPBank aims to elevate this threshold. Dung said that participating in the restructuring of zero-VND banks could enable it to extend foreign ownership, which is crucial for scaling operations and boosting capital.

In Vietnam’s challenging financial landscape, pivotal steps are being taken to restructure financially vulnerable institutions. Nguyen Thanh Tung, CEO of Vietcombank, announced that the bank has finalised its restructuring plan, which is now pending approval from the SBV. This move is part of a broader strategy to ensure seamless transitions and adherence to regulatory timelines.

“We have developed specific strategies to proactively ensure the transition is managed smoothly,” Tung said.

In preparation, Vietcombank is refining its network and evaluating its human resources to bridge any skill gaps, simultaneously establishing tailored training programmes to swiftly meet standards. Moreover, the bank has formed dedicated subcommittees to assist in the transfer of weak financial institutions.

“Transfers are planned for 2024. Over the long term, acquiring weaker banks opens doors for potential strategies such as share sales or mergers,” Tung explained.

Meanwhile, Nguyen Thi Phuong Thao, vice chairwoman at HDBank, stated at its AGM in late April that the bank is among four chosen by the SBV due to its strong financial health and effective operations.

“About 6-7 years ago, when we received the proposal from the SBV, we arranged and prepared to engage seriously. Accepting this role underlines the bank’s commitment and opens up transformative growth opportunities,” Thao said.

“Supporting this initiative allows HDBank to utilise additional favourable mechanisms to increase our annual credit growth limits, positioning us to become one of the top banks in the country within the next five years,” Thao added.

Luu Trung Thai, chairman of MB, views this as an opportunity to explore new developmental pathways, notably in credit growth and management capabilities.

“We are prepared for the assigned tasks, just awaiting government approval,” Thai reported at the bank’s AGM last month. “MB is engaging in various collaborative efforts aimed at supporting targeted commercial banks, with mandatory transfers expected to commence this year. Post-transfer, the weak bank will continue to operate independently under MB, with future options for merging or divesting after restructuring.”

While the final destinations for these banks remain undisclosed, Vietcombank is actively providing comprehensive support to CBBank, covering aspects of governance, technology, products, services, and branding.

Meanwhile, MB’s leadership has disclosed that the bank it is acquiring has accumulated losses of approximately $833 million, along with a non-performing loan ratio of 47 per cent. Among these institutions, OceanBank, acquired for zero, faces similar financial challenges.

The restructuring process, while beneficial, is complicated by significant risks, including the potential rise in non-performing loans, unresolved corporate bond debts, and challenges in achieving robust credit growth for production.

“Given the complexities and impending risks, the timing and execution of these transfer plans must be judiciously considered to mitigate any negative impacts on the broader banking system and the economy,” noted one financial sector expert to VIR.

At the SBV’s April report to the National Assembly, the recurrent use of phrases such as “finalising” and “submitting for approval” highlighted the sluggish progress in handling weak banks, a theme that has persisted over the years.

Vu Hong Thanh, Chairman of the National Assembly’s Economic Committee, expressed frustration with the slow progress of the restructuring project for the 2021-2025 period. “In addition to the four mandatory acquisition banks, now including SCB, we are spending a significant amount of money daily to support these struggling banks, which is proving to be very costly,” Thanh remarked.

Vietnam Motor Show 2024 to open in HCM City in October

The Vietnam Motor Show (VMS) 2024, the biggest annual exhibition in the automotive and motorcycle industries, will open in HCM City in October.

The show, which is jointly organised by the Vietnam Automobile Manufacturers' Association (VAMA) and the Vehicle Importers' Vietnam Association (VIVA) at the Sài Gòn Exhibition and Convention Centre (SECC), will gather leading brands who will display the latest technologies and products.

The brands that are so far confirmed to join the show include Ford, GAC, Honda, Isuzu, Mitsubishi, Skoda, Subaru, Suzuki, Toyota, Volkswagen and Volvo.

For the first time, booths displaying motorbikes from Honda, SYM and Yamaha Motors will be set up at the exhibition.

The exhibition will also feature the participation of hundreds of brands in various supporting industries, accessories, spare parts, and related sectors, meeting all the needs of car enthusiasts as well as solutions for owning cars and motorcycles in Việt Nam. 

With the theme "Technology and Environment", VMS 2024 is expected to become an attractive playground with diverse, classy, and fresh experiences for car enthusiasts. 

The organisers aim to create channels for interaction with consumers and authorities. Together, they strive to bring the latest smart technologies, especially environmentally friendly ones, in the automotive and motorcycle industries.

According to the organiser, this year's VMS will also emphasise the development of green, clean energy solutions, and emission reduction, demonstrating the commitment of VAMA and VIVA to Việt Nam's efforts to achieve the goal of net zero emissions by 2050 at the COP26 conference.

One of the new features at VMS 2024 will be the optimal use of technology to enhance the experience and benefits for exhibition visitors. Visitors will engage in a unique experiential journey introduced for the first time at VMS 2024, such as utilising AI technology applications or interactive technologies in the vehicle display area.

These technologies will provide impressive visual effects when experiencing specific vehicle models, as well as the overall activities at the exhibition.

Some examples include the Bullet Time technology for checking in or utilising an AI ChatBot assistant on a website and the VMS News platform for searching and updating information about VMS 2024.

Many conferences discussing hot topics in the industry will be organsied during the exhibition.

Organised since 2002, VMS is considered the largest and most attractive exhibition in Việt Nam by industry professionals.

In 2024, VMS is expected to attract over 200,000 direct visitors during the five-day exhibition and reach millions of car enthusiasts online across various channels throughout the event. 

Mekong Delta: Position of the Global Food Basket

It is no coincidence that the Mekong Delta is known as the "rice bowl" of the country and acknowledged globally as the "Global Food Basket." 

This region boasts a complex network of rivers and canals, abundant fruit orchards, expansive mangrove forests, recognized biosphere reserves, national parks, and nature reserves.

According to the Ministry of Agriculture and Rural Development (MARD), the Mekong Delta region supplies approximately 23 million tons of rice annually. Additionally, the total output of main fruit crops such as mangoes, bananas, dragon fruit, pineapples, oranges, tangerines, pomelos, longans, rambutans, durians, and jackfruits in the region reaches nearly 5.5 million tons per year. Overall, the Mekong Delta region currently contributes over 31 percent to the total GDP of the agricultural sector.

Mr. Tran Quoc Toan, Deputy Director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, said that in 2023, Vietnamese rice products met consumer demand in 27 countries and territories. Rice export volume set a new record in 2023, reaching over 8.3 million tons, equivalent to US$4.7 billion, marking a 35.5 percent increase compared to 2022. This figure is expected to be the same or even higher in 2024.

"Various Vietnamese goods, including rice, cashews, coffee, and pepper, are now available in South Africa. Notably, rice exports surpassed $6 million for the first time, in 2023. This solidifies Vietnam's crucial role as a key food supplier in this country and the globe," emphasized Mr. Pham Thanh Hai, First Secretary at the Vietnam Trade Office in South Africa.

The Mekong Delta is also a significant source of seafood supply for numerous countries worldwide. Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers, reported that from the beginning of this year until now, Vietnam has exported a substantial volume of shrimp, pangasius fish, tuna, octopus, blue crab, and other aquatic products, totaling $2 billion in value, to various countries globally. Shrimp leads the exports with nearly $700 million, followed by pangasius fish with almost $500 million, alongside various other seafood and mollusks. The top five importers of Vietnamese seafood are the United States, Japan, Europe, South Korea, and Australia.

According to Hoe, the five localities with the highest aquaculture production supplying the global market in the Mekong Delta region include Ca Mau, Bac Lieu, Kien Giang, Tra Vinh, and Ben Tre.

Vietnamese products have exerted and continue to significantly influence global consumer demand. A recent study by Oxford Economics has disclosed that Vietnam ranks among the top five major food suppliers worldwide. Moreover, the country commands a 15 percent market share in global rice production supply.

Since 2023, numerous global distribution conglomerates have set up offices in the Southern region to source goods from this area. Mr. Nguyen Duc Trong, in charge of new supplier development at Walmart Vietnam, mentioned that the conglomerate has established a procurement hub in Vietnam. The group has partnered with the Ministry of Industry and Trade to work with enterprises, farmers, and cooperatives in the Mekong Delta region to procure products such as Hoa Loc mangoes, pomelos, star apples, and durians.

It is noteworthy that Vietnam ranks among the top five countries supplying the highest volume of goods to Walmart, estimated at around $7 billion annually. The demand for Vietnamese fruits, as well as agricultural and food products with distinctive Vietnamese characteristics, has been on the rise in markets where Walmart operates.

Adding to this discussion, Mr. Yuichiro Shiotani, Director of Aeon Topvalu Vietnam, shared that in recent years, the procurement volume of agricultural and aquatic products in Vietnam has doubled compared to previous years, with an expected value of $1 billion by 2025. Starting from 2024, alongside its subsidiary companies sourcing goods in Vietnam, the conglomerate will introduce more subsidiaries from other countries to explore and establish bases, thereby increasing Vietnam's goods procurement ratio.

Mr. Mirash Basheer, representative of Lulu Group - a top goods distribution chain in the Middle East market, disclosed their intention to source Halal-certified products from Vietnam. Vietnam has become one of the world's major exporters of agricultural and aquatic products, featuring prominent items like rice, rubber, tea, cashews, coffee, pepper, shrimp, and fish, and has crucial advantages. Additionally, Vietnam's geographical location is strategically advantageous, close to significant Halal markets, as around 62 percent of the Muslim population resides in Asia.

The Mekong Delta, also known as the Southwest region, encompasses 13 provinces and municipalities in the southernmost part of the country. It borders the Southeast region, notably Ho Chi Minh City - the economic center of Vietnam. To the North, it adjoins Cambodia, while the Gulf of Thailand lies to the Southwest and the East Sea to the Southeast. Covering a natural area of nearly 40,000 square kilometers, this region is home to nearly 18 million people.

Trade fair on northern rural industrial products opens

A fair showcasing outstanding industrial products of northern rural areas opened in Hanoi on May 16, featuring 270 pavilions from 40 provinces and cities.

The event forms part of the national industry promotion programme 2024 and regional industry and trade activities this year.

Addressing the opening ceremony, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said the fair aims to strengthen linkages between the localities, and promote industry, trade and tourism in Hanoi and the region.

It also offers an opportunity for businesses and rural industrial establishments to showcase scientific and technical advances, and industrial and handicraft products, Tan added.

Other products on display include machinery, means of transport, consumer goods, construction materials and equipment, electronics, and IT, finance and banking services.

The fair will run until May 19 at the National Architectural Planning and Construction Exhibition Centre.

Statistics show that 512 items were recognised as national outstanding rural industrial products, and 1,632 granted with the regional title during 2012-2022. As many as 173 products won the national status in 2023, and 126 earned the regional recognition this year./.

Belgium workshop spotlights business opportunities in Vietnam

Business opportunities in Vietnam were introduced to Belgian enterprises by the Vietnamese trade office in the European country and the Belgium-Vietnam Alliance (BVA) at a workshop on May 16.

Vietnam’s trade counselor Tran Ngoc Quan briefed the Belgian firms on the country’s investment climate, and laid a stress on special tax incentives for foreign investors, and highlighted Vietnam’s economic potential.

Meanwhile, Nguyen Bich Diep, a BVA representative, spotlighted Vietnam’s culture, custom and cuisine, and shared her experience in doing business and living in Vietnam.

Michèle Surinx, Area Manager Asia-Pacific at Flanders Investment and Trade (FIT), told the Vietnam News Agency that the event provided her with valuable information before her visit to Vietnam in October, adding FIT will inform its members of the business opportunities and methods in the country.

Holding that the Vietnamese market has opened up numerous opportunities for foreign firms, FIT International Business Advisor Marc Van Der Linden described the country’s rapid and stable economic growth coupled with potential areas as its strengths to lure foreign investments.

Many Belgian enterprises expressed their interest in the Vietnamese market and their wish to seek investment and business opportunities with local partners./.

Delegation from EU, Netherlands explore investment opportunities in Thai Nguyen

A delegation from the European Union (EU), the Netherlands, and the Vietnamese Embassy in Singapore held a working session with leaders of the northern province of Thai Nguyen on May 16 to explore potential investment opportunities in the province.

Their focus was on projects related to landslide prevention, clean water, wastewater treatment, and tea industry.

Pham Hoang Son, Permanent Vice Secretary of the provincial Party Committee and Chairman of the provincial People's Council, highlighted Thai Nguyen’s strategic location and economic potential.

The province has actively sought foreign investment in 2024, with investment promotion conferences held in the UK, Germany, and the Netherlands. It also collaborated with the Climate Fund Managers (CFM) to connect with potential investors.

The province hopes for further support from the EU, the Netherlands and the Vietnamese Embassy in Singapore, he said.

Dutch Ambassador to Vietnam Kees van Baar said many Dutch enterprises are interested in developing the semiconductor industry in Southeast Asia, with a specific focus on Vietnam and Malaysia, adding that the Dutch Embassy in Vietnam is ready to act as a bridge connecting Thai Nguyen with Dutch firms.

Vietnamese Ambassador to Singapore Mai Phuoc Dung also committed to introducing more Singaporean companies to Thai Nguyen in the future.

On the occasion, local tea producers and traders expressed their desire to expand export markets to EU countries.

Earlier, the delegation attended a groundbreaking ceremony for the Phu Binh water plant in Huong Son town, Phu Binh district.

The 14,000 sq.m plant, built with total investment of nearly 96 billion VND, part of which was funded by the Netherlands' CFM Investment Fund, is expected to have a daily capacity of 10,000 cu.m upon completion in mid-2025. The plant will ensure water supply for Phu Binh district and surrounding areas./.

International Autotech & Accessories show opens in HCM City

The 20th International Autotech & Accessories show 2024 opened in Ho Chi Minh City on May 16 with over 400 booths of nearly 300 domestic and international exhibitors.

Besides display booths, the expo provided spaces for companies to seek partners and for individuals who are interested in the automotive industry and support industries.

More than 5,000 individuals and businesses have registered for B2B meetings in many fields such as manufacturing and supply of spare parts, components, repair equipment, interior and exterior equipment, transportation, tourism, agriculture, healthcare, and education.

This year, within the framework of the expo, and for the first time, an “Initiative Day” was held with the participation of 14 technological topics, creative products/design features.

Visitors to the expo can also take part in test driving and experiencing new technologies.

The expo runs until May 19 at the Saigon Exhibition and Convention Center (SECC) in District 7, Ho Chi Minh City./.

Experts urge promotion of digital transformation in logistics, e-commerce

Applying technology in logistics and e-commerce will bring many benefits, thus optimising the efficiency of these two sectors, and contributing to reducing logistics costs for the entire economy, heard a workshop in Hanoi on May 16.

Deputy Director of the Ministry of Industry and Trade’s Agency of Foreign Trade Tran Thanh Hai said that in the National Digital Transformation Programme by 2025, with a vision to 2030, logistics is one of eight industries that need to be prioritised for digital transformation.

In addition, one of the tasks of improving competitiveness and developing Vietnam's logistics services by 2025 in accordance with the Prime Minister’s Decision No. 200/QD-TTg dated February 14, 2017 is to research and apply new and modern technologies in management, operation, and supply chain training to achieve higher quality logistics services.

Vietnam’s Logistics Performance Index (LPI) reached 3.3 points in 2023, which is 43rd out of 154 countries and territories, and fifth among ASEAN members. Its annual growth rate of services revenue is 14 - 16% with a scale of about 40 - 42 billion USD a year. The quantity and quality of logistics services have been improved as well, making an important contribution to promoting the growth of Vietnam's import-export turnover.

According to the Vietnam Logistics Business Association (VLBA), the domestic logistics industry accounts for 20-25% of gross domestic product (GDP) and is expected to grow 12% per year in the near future.

Experts said that the strong growth of the e-commerce industry brings more opportunities for logistics companies, as a rise in e-commerce transaction volume leads to increasing demand for transportation, logistics and delivery. The increase has been both an opportunity and a challenge for logistics services in e-commerce.

They also pointed out that applying technology to logistics activities helps businesses reduce delivery costs by 14% and increase the number of deliveries per vehicle by 13%.

Additionally, these breakthrough technologies enable logistics companies and service providers to further optimise costs and increase delivery productivity by intelligently planning routes to ensure operation quality.

Businesses and investors were advised to focus on expanding and modernising warehouses, planning networks to solve delivery options and forms, and optimising route deliveries to minimise delivery costs for both enterprises and users./.

Hanoi farm produce introduced in Australia

Ten firms from Hanoi will introduce a range of agricultural products at Foodservice Australia 2024 slated for May 19 to May 21, with the function being the leading foodservice, hospitality, and food retail trade event in Australia.
 
They will introduce their advantageous products at the fair, including vermicelli, cashew nuts, coffee, pepper, dried nuts, spice products, nutritional powder, cordyceps, black garlic, vegetable powder, fruits, herbal teas, and wooden straws.

Nguyen Van Chi, deputy chief of the Standing Office of the Hanoi New Rural Construction Program Coordination Office, emphasized that the occasion aims to support Hanoi’s firms as they strive to increase the presence of Vietnamese brands among Australian and international consumers.

This is along with seeking greater investment co-operation in agricultural production and food processing, as well as introducing Hanoi's agricultural products and One Commune One Product (OCOP) products into distribution channels in Australia.

Furthermore, the event also provides an ideal venue for Hanoi to introduce their potential and ramp up investment, trade, and tourism activities in Australia, Chi noted.

Moreover, local firms will also have the opportunity to advertise their range of products on the website of Foodservice Australia 2024 as part of efforts to introduce their items and services to Australian and international visitors.

Enterprises from Hanoi are anticipated to attend forums and conferences during the event in order to gain greater insights into brand building, whilst staying updated on information relating to the current trends of food and beverages around the world.

Belgium seeks to explore business opportunities in Vietnamese market

A workshop highlighting business opportunities in Vietnam was recently held by the Vietnamese trade office in Belgium and the Belgium-Vietnam Alliance (BVA).

Tran Ngoc Quan, trade counselor in Belgium and the EU introduces the investment and business environment in Vietnam

Tran Ngoc Quan, Vietnamese trade counselor in Belgium and the EU briefed the Belgian firms on the country's current investment climate, stressing the special tax incentives on offer for foreign investors, as well as outlining Vietnamese economic potential.

Foreign businesses investing in Vietnam can enjoy preferential tax rates, with reductions from 10% to 20% for a period of 10 to 15 years, as well as tax exemptions for a period of up to nine years.

Income from technology transfer activities for projects receiving investment incentives is also exempt from income tax.

Furthermore, goods are also exempt from export and import taxes according to international treaties to which the Vietnamese side is a member. Foreign investors are also exempted or reduced from land use fees, land rent, and land use tax, Ngoc emphasized.

Quan also shared the nation’s economic potential, particularly with its positive factors such as a stable environment, young population, increasing per capita income, and increasingly expanding domestic market.

The national economy recorded an average growth of 5.4% in the 2021 to 2023 period, a figure 1.7 times higher than the world average at 3.2%. Inflation has been controlled at 2.8%, below the target threshold of 4%. These are the strengths of the Vietnamese economy for foreign investors, he went on to say.

Meanwhile, Nguyen Bich Diep, a BVA representative, highlighted the country’s culture, customs, and cuisine, sharing her experience in carrying out business and living in the nation.

Michele Surinx, area manager of the Asia-Pacific at Flanders Investment and Trade (FIT), said the event provided her with a range of valuable information before her visit to Vietnam in October, adding that FIT will inform its members of the business opportunities and methods in the country.

Stating that the Vietnamese market has opened up plenty of opportunities for foreign firms, Marc Van Der Linden, international business advisor of the FIT, described the country’s rapid and stable economic growth coupled with its potential areas as strengths which will serve to attract foreign investments.

Many Belgian enterprises have shown a keen interest in the Vietnamese market and have expressed wishes to seek further investment and business opportunities with local partners moving forward.

With a fast and steady growing economy, Vietnam promises to be an attractive destination for both Belgian and European businesses that want to expand their markets and seek new investment opportunities.

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