Digital transformation is considered a “key” to help Vietnamese garment and textile enterprises expand while meeting sustainable development, heard a recent conference held in Ho Cho Minh City.

Entitled “Superior Choice of Vietnam's Textile and Garment Enterprises for Sustainable Development”, the conference was held as part of the SaigonTex and SaigonFabric 2024 exhibition organised by the Vietnam Textile and Apparel Association (VITAS).

Nguyen Thi Tuyet Mai, Deputy General Secretary of VITAS and head of its representative office in HCM City, told the conference that the Government recently approved the Vietnam Textile and Garment Industry Development Strategy to 2030, vision to 2035.

Its objectives include enhancing the production of high-quality items, improving competitiveness in the international market and meeting domestic demand, she said.

The VITAS representative said one of the major solutions is digital transformation across the entire textile industry.

This requires enterprises to strategically shift their business and innovate technology if they want to ensure competitiveness and sustainability, she said.

Tran Thi Ha, CEO of Pro-sports Trading Company, said though her company has used various software and digital transformation solutions, it has failed to meet customer requirements, especially in terms of information transparency and connection with customer software systems.

Moreover, company management requires strategic decisions based on synchronised data sources rather than waiting for aggregation from multiple sources, she said.

Nguyen Thi Hong Phuong, Deputy General Director of Phong Phu International Joint Stock Company, said as her company expands scale and aims for sustainable development, it needs to standardise management and production operations based on synchronised databases.

When deploying digital transformation solutions, the company could easily manage the flow of goods from raw material imports to selling finished products, she said.

The company has been successful in digital transformation in the textile sector, and next it plans to expand to other areas such as yarn, dyeing and fabric, she added.

Jatin Paul, CEO of WFX, said textile enterprises are using various standalone software and so lack cohesion. But WFX's solution offers comprehensive integration and could integrate with existing software, he said.

WFX is a global company operating in over 50 countries and territories that provide integrated software solutions for the textile industry./.

Binh Duong aims to become logistics hub in southern region

As a major industrial hub, contributing about 10% of the country's total export value, the southern province of Binh Duong targets becoming a logistics locomotive of the southern region of Vietnam.

According to Assoc. Prof. Dr. Ho Thi Thu Hoa, President of the Vietnam Logistics Research Institute, with its existing infrastructure and industrial parks, Binh Duong has strong potential to become a logistics hub of the region.

Binh Duong is focusing on transport infrastructure, she said, adding that it is an important basis for the province to fulfil the goal.

Huynh Dinh Thai Linh, Director of World Trade Centre (WTC) Binh Duong, said that the province had formed a chain of regional logistics services with many large-scale logistics centres, along with river ports, warehouses and facilities serving goods imports and exports, showing the great potential of this industry in the locality.

According to Vice Chairman of the provincial People’s Committee Nguyen Van Danh, with its strategic location as the southern gateway to Ho Chi Minh City, strengths in industrial development, and well-planned urban and transport infrastructure, and industrial zones and clusters, Binh Duong gathers all favourable conditions to develop and become a service, industrial support and science-technology center of the southeast and the southern region as a whole.

The logistics industry has full internal potential to become one of the important and spearhead economic sectors of the province, and a driving factor that promotes Binh Duong's socio-economic development in the future, the official added.

Binh Duong has formed a chain of regional logistics services with a system of 15 large-scale logistic centres, including three inland container depots (ICDs) and an international railway station serving import-export activities. It has also set up 10 river ports, 21 warehouses, 19 bonded warehouses, and two active CFS warehouses to serve production in industrial zones and clusters and perform the function of distributing goods to localities in the region.

During a working session with a Government delegation led by Deputy Prime Minister Tran Hong Ha, Chairman of the provincial People's Committee Vo Van Minh proposed the Government pour capital into turning Song Than international intermodal station in Di An city into the largest freight hub in the South, connecting with provinces and cities in the southeastern region.

He held that the station holds significant importance in the socio-economic development of the southeastern region.

Once completed, Song Than station can handle up to 3.5 million tonnes of goods per year in 2025-2030, making it the largest logistics hub in Vietnam's railway station system./.

Only 0.3% of social home loan package disbursed

Despite its launch a year ago, the VND125-trillion soft loan package for social housing has seen a woefully low disbursement rate, with only VND415 billion allocated to investors and VND540 million to homebuyers.

The Vietnam Chamber of Commerce and Industry (VCCI) and the HCMC Real Estate Association (HoREA) jointly reported that the credit package, facilitated by five commercial banks, does not align well with the needs of potential buyers of social housing.

The State Bank of Vietnam (SBV) has cited limited housing supply as a primary issue. Currently, only 28 provinces and cities have identified social housing and workers’ housing projects for renovation or reconstruction.

While 68 projects have been announced under the program, some encounter legal obstacles, land clearance issues, and land use conversion procedures, impeding banks from extending loans to project investors.

HoREA highlighted the deterrent effect of the high interest rate of 7.5% per year for a five-year term, subject to adjustment every six months and floating after the preferential period, making potential buyers hesitate in borrowing.

To address these challenges, HoREA proposed that the SBV broaden the eligibility criteria for the credit package, extending it to include commercial homebuyers with prices ranging from VND3.5 billion downwards and landlords interested in constructing new or refurbishing workers’ housing.

It also suggested that the Ministry of Construction reconsider the reinstatement of the VND110 trillion credit package proposed in February 2023. This package offers an interest rate of 4.8-5% and a maximum loan term of 25 years, benefiting project investors, homebuyers, or renters of social homes.

Moreover, the draft decree on the development and management of social housing should increase the profit margin to 15%, up from 10%, for self-established land funds.

Furthermore, the association suggested businesses should be allowed to use the social housing project itself as collateral when seeking preferential loans, including those from the VND125 trillion package. Currently, investors must pledge other assets to secure loans.

Fruit and vegetable exports see upswing in four months

Vietnam raked in more than US$1.8 billion from exporting fruit and vegetables during the opening four months of the year, representing a year-on-year rise of 32.1%, according to the Ministry of Agriculture and Rural Development.

With export orders increasing strongly, fruit and vegetable exporters earned US$1.3 billion in the first quarter of the year, marking the first time that their export earnings have exceeded the US$1 billion mark.

Notably, fruit and vegetable exports to major markets enjoyed positive growth in the reviewed period. China was the largest consumer, spending US$759.4 million on imports, up 32.4% year on year.

Meanwhile, exports to the Republic of Korea, the United States, and Thailand also surged by 59.3%, 33.9%, and 112% to reach US$74.6 million, US$67.7 million, and US$47.6 million, respectively.

Among the major fruits, durian is a potential export item that brought in more than US$2 billion out of a total of US$5.6 billion Vietnam earned from exporting fruit and vegetables last year. China alone imported nearly 600,000 tonnes of durian worth US$2.1 billion from Vietnam last year.

According to experts, although there remains plenty of room for fruit and vegetable exports moving forward, local businesses are required to further improve their product quality in order to secure a firm foothold in demanding markets and avoid risks of items being recalled.

The fruit and vegetable sector is anticipated to fetch between US$6 billion and US$6.5 billion in export turnover in 2024.

Digital transformation events for banking sector slated for May

The State Bank of Vietnam (SBV) has announced a series of events focusing on digital transformation in the banking sector, scheduled for May 8 in Hà Nội.

This initiative aligns with the goals of the National Digital Transformation Programme until 2025, with a vision to 2030, aiming to propel Việt Nam towards a digital economy and society, according to Director General of the SBV’s Payment Department Phạm Anh Tuấn.

A thematic seminar will be held for the first time, featuring presentations by leading financial and technology experts from giants such as Google, IBM, Fidelity, SAP, a significant highlight.

Attendees can also explore 16 booths showcasing the latest products, services and technologies from banks, payment intermediaries and technology companies.

From 2020-2022, the SBV consistently ranked high among ministries and agencies in the digital institutional index.

As of now, about 77.41 per cent of Vietnamese adults have bank accounts, with over 35 million payment accounts and about 14.9 million cards opened through the electronic Know Your Customer (eKYC) method currently operational.

The year 2023 saw a surge in mobile payment transactions, with a 59.86 per cent increase in volume and a 12.73 per cent increase in value. QR code payments also experienced explosive growth, with a 242.46 per cent increase in volume and a 157.2 per cent rise in value compared to the previous year.

The first two months of this year recorded significant year-on-year growth in non-cash payment and digital banking activities, with non-cash payment transactions rising by 59.6 per cent in volume and 32.73 per cent in value. Internet banking transactions also saw impressive growth, increasing by 51.60 per cent in volume and 23.88 per cent in value.

Mobile banking transactions followed suit, surging by 63.24 per cent in volume and 33.43 per cent in value. QR code payments continued their dominance, with a phenomenal 846.41 per cent increase in volume and a staggering 1,146.14 per cent increase in value. 

HCM City welcomes 1 million visitors during five-day holiday

HCM City received over 969,000 visitors during the Reunification Day (April 30) and May Day holiday, earning over VND3.20 trillion.

The figures show a slight increase of two percent in visitor numbers and 3.40 percent in revenues compared to the same period last year.

During the five-day holiday, the city welcomed 325,000 domestic visitors and 54,000 foreign tourists, up by 1.60 and 12.50 percent, respectively against last year's figures.

According to the municipal Tourism Department, some of the sites that attracted the most number of visitors during the holiday included the headquarters of the HCM City People's Committee and People's Council, Cu Chi Tunnels, Saigon Zoo, and Dam Sen Park. The city bike and river bus tours were also popular among tourists.

One of the most awaited events was the firework displays at five locations to celebrate l Reunification Day on the night of April 30. Thousands of people converged on Saigon River Tunnel, Thao Dien Villa area, and Van Phuc Urban Area in Thu Duc City, the northwest industrial park in Cu Chi District and Dam Sen Cultural Park in District 11 on Tuesday evening to enjoy a spectacular fireworks display which lasted 15 minutes.

HCM City has set a target to attract about six million foreign visitors and 38 million domestic tourists this year, with VND190 trillion in revenue, according to the municipal Department of Tourism.

New foreign investments in Jan-Apr put at US$9.3 billion

Fresh foreign investment approvals in Vietnam in the year to April had expanded by 4.5% year-on-year to nearly US$9.27 billion, according to the General Statistics Office.

The figure encompasses new capital registrations, upward capital adjustments, capital contributions to projects and acquisitions of stakes at businesses here in the country.

A total of 966 new projects got investment certificates, with total pledged capital of US$7.11 billion, up 28.8% in project numbers and 73.2% in investment capital.

The processing and manufacturing industry attracted the lion’s share of newly registered capital during this period, amounting to nearly US$5 billion, or 70.2% of the total. Meanwhile, the real estate sector received US$1.6 billion, accounting for 22.5%.

Singapore was the top investor among the 50 countries and territories with newly licensed investments in Vietnam totaling US$2.59 billion during the first four months of 2024, making up 36.4% of the total. Hong Kong followed with US$898.6 million, constituting 12.6%.

There were 345 operational projects increasing their investment capital by US$1.23 billion, 25.6% below the same period last year.

Moreover, 902 transactions involving capital contributions and stake acquisitions were recorded, with total capital of US$929.6 million, up by a sharp 70.1% year-on-year.

Meanwhile, Vietnam approved US$98.3 million for 36 outbound investment projects in the four-month period, down by 29.8% against the same period last year. Three projects also adjusted their capital by US$580,000, down by a significant 95.7% year-on-year.

Overall, Vietnam’s outward investments, including newly licensed and adjusted, reached US$98.9 million, down by 35.6% over the same period last year.

Amended Land Law seen taking effect six months ahead of schedule

The amended Land Law might come into force on July 1, this year, a full six months ahead of the originally scheduled date of January 1, 2025. This is seen as a move by the Government to accelerate the implementation of new land regulations amid the dormant domestic real estate market.

The Ministry of Justice has received a review on a draft National Assembly resolution that revises and supplements the 2024 Land Law’s Article 252 which specifies the effective date of the law.

According to the draft resolution, prepared by the Ministry of Natural Resources and Environment in coordination with other relevant ministries and agencies, Article 252 would be revised as “This Law shall take effect from July 1, 2024, except as provided in sections 2 and 3 of this Article.”

The Ministry of Natural Resources and Environment was quoted by Phap Luat newspaper as saying that that the Land Law is of paramount importance to the country’s socio-economic development, defense, security, and environmental protection. The law is central to the legal framework governing land and closely related to other laws, so it has profound impact on the public and the business community, said the ministry.

The amended Land Law contains groundbreaking provisions aimed at improving institutional frameworks and policies, and enhancing the effectiveness and efficiency of land management and use, including land use planning and allocation, land recovery, compensation, support and resettlement.

Recognizing the extreme importance of the revised Land Law, the National Assembly called an extraordinary session in January this year for lawmakers to pass the law. On January 18, 87.63% of 477 National Assembly deputies present at the session voted for the amended law.

The local media then said the law would help remove major hindrances to the development of the real estate market and overlapping policies and regulations that have negatively affected the normal operations of the real estate market.

Electricity consumption hits new record

Vietnam Electricity Group, or EVN, has reported an upsurge in electricity consumption, citing the protracted heatwave across the nation as the main reason.

The scorching weather has resulted in electricity consumption soaring, with 993 million kWh used on April 26, the highest daily demand recorded, EVN announced yesterday, April 29.

Temperatures exceeded 41 degrees Celsius across 26 provinces on April 28, particularly in the north-central region.

However, electricity consumption in northern Vietnam has not yet surpassed peak levels. EVN anticipates further increases in demand as the summer heat intensifies.

To ensure electricity supply, the company is considering mobilizing backup diesel-fired generators from customers. Some 2,700 generators have been identified in northern Vietnam, with a total capacity of 3,000 MW.

EVN has boosted electricity imports from China to 1.8 billion kWh, 700 million kWh above the original plan.

Negotiations with Laos are underway for more electricity imports, particularly on sources routed through the north-central provinces of Nghe An and Quang Tri.

Can Tho 2 Bridge project proposed with VND19.8-trillion investment

A pre-feasibility study for the Can Tho 2 Bridge project in the Mekong Delta has been submitted to the Ministry of Transport at a proposed cost of VND19.8 trillion.

The project has a total length of 14.65 kilometers, including a 2.75-km four-lane bridge, 8.38 km of access road on the Vinh Long Province side and 3.52 km of access road on the Can Tho City side.

Two investment options are currently under consideration. Option 1 proposes separate rail and road components with a 550-meter main span, estimated to cost VND19,782 billion. Option 2 suggests integrating rail and road in the project, with a total investment of VND27,494 billion.

The My Thuan Project Management Board favors Option 1, targeting project completion between 2026-2029.

Currently, Can Tho Bridge is the only cable-stayed bridge crossing the Hau River that links Can Tho City and Vinh Long Province. The bridge was opened to traffic in 2010.

Vietnam’s IIP grows by 6% in Jan-April

Vietnam’s index of industrial production (IIP) in January-April has improved by 6% year-on-year, with 54 out of the nation’s 63 centrally-run provinces and cities posting a higher IIP, according to the General Statistics Office (GSO).

In April alone, the index has expanded by 6.3% compared to the same period last year.

Manufacturing and processing have grown by 7%, electricity production and distribution by 11.3%, and water supply and waste treatment by 6.6%. But the mining sector has declined by 6.8%.

In the first four months of 2024, the manufacturing and processing sector has expanded by 6.3%, electricity production and distribution by 12.3%, and water supply, waste, and wastewater management by 5.3%. However, the mining sector has dropped by 4.6%.

Several industries have posted double-digit growth against the year-earlier period, including rubber and plastic product manufacturing (27.5%), electrical equipment manufacturing (24.7%), chemical production and chemical product manufacturing (24.3%), and furniture (17.3%).

However, industries such as repair, maintenance, and installation of machinery and equipment, crude oil and natural gas extraction, and production of other means of transport have slid during the same period.

Among the 63 cities and provinces, 54 have seen a rise in IIP, while nine have reported a fall.

Two footbridges for Metro Line 1 completed

Two footbridges linking the Saigon Hi-Tech Park and the Binh Thai station of Metro Line No. 1 have been completed after five months of construction.

These footbridges are expected to be opened in the fourth quarter of this year, coinciding with the launch of the city’s first urban railway, which connects Ben Thanh Market in District 1 and Suoi Tien Theme Park in Thu Duc City, according to the Management Authority for Urban Railways of HCMC (MAUR).

With 80 to 150 meters in length and 3.5 meters in width and a vertical clearance of nearly five meters, the two bridges serve as vital connections between the parallel road of Vo Nguyen Giap Highway and the metro line station. They are part of the nine footbridges planned to connect the elevated stations of Metro Line No. 1 and the neighborhoods.

Three more footbridges are expected to be finished by the end of May.

The remaining four footbridges at Thao Dien, An Phu, Thu Duc, and National University stations are also under construction.

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