Garment production at Garment 10 Corporation in Sài Đồng, Long Biên District, Hà Nội. — VNA/VNS Photo Anh Tuấn

The Prime Minister Phạm Minh Chính has signed a directive on the building of the socio-economic development plans and state budget estimates for 2025.

The directive notes that all plans for the next year are being drafted amid a rapid and unpredictable global changes, particularly in terms of the Ukraine-Russia conflict, Gaza, the Red Sea. Other influences on any directive include rising protectionism, inflation and major economies' policy adjustments, supply chains and capital flow shifts.

Next year is a particularly important year domestically, when an all-level party congresses will be held on the threshold of the 14th National Party Congress.

Việt Nam’s stature and strength after nearly 40 years of 'đổi mới' (renewal) has become stronger. The political, social and macro-economic situation remains stable, many key national projects have been implemented and the business and investment climate has improved.

However, difficulties and challenges are still considerable, especially when it comes to fulfilling the targets of the five-year socio-economic development plan for 2021-25.

In that context, PM Chính requested that ministries, central agencies and localities identify the essential issues of the 2025 development plans.

They need to ensure the targets and solutions set for next year adhere to the overall plans, with three strategic breakthroughs, six focal tasks and 12 groups of main tasks and solutions detailed in the resolution of the 13th National Party Congress.

The plans need to effectively mobilise and use resources while promoting agencies and units’ self-reliance. They also have to closely connect the socio-economic development plans with the public investment ones.

Tasks and solutions must be detailed in terms of content, deadlines and progress, he added.

The building of the state budget plan for 2025, including budget spending and forecasts, has to be workable, so that there are as few revisions to those estimates as possible and that capital does not need to be transferred to the following year.

The drafting of local budget collection and spending plans for 2025 also has to comply with national and local socio-economic development targets and tasks, the five-year national and local financial plans and the medium-term public investment plan for 2021-25, according to the directive.

Main tasks include proactive and effective coordination of macroeconomic policies, including monetary, fiscal, investment and trade, to maintain economic stability, control inflation, promote growth and support business production.

Improving the socialist-oriented market economy; developing various markets; enhancing the investment and business environment, and promoting public-private investment partnerships, accelerating strategic infrastructure development, especially in transportation, major urban areas, seaports and airports, was another major task.

Focus should also be on restructuring the economy along modern growth lines, increasing productivity, quality, efficiency and competitiveness, from a quality work force to meet the demands of the Fourth Industrial Revolution and international integration; restructuring of public investment, state-owned enterprises and credit institutions, promoting digital, green, circular economies, e-commerce and new business models.

Establishment of high-quality, branded and competitive tourism centres, along with an advanced marine economy and development of coastal economic, industrial and eco-urban zone are also urged. 

Vietnam’s timber, wood product exports post positive growth in the first five months

The export value of timber and wood products in Việt Nam is estimated to reach over US$6 billion in the first five months of this year, an increase of 18 per cent over the same period last year, according to General Department of Vietnam Customs.

Notably, the exports of wooden products are expected to bring home over $4 billion, up 7.5 per cent compared to the same period last year.

Tô Xuân Phúc, Managing Director of Forest Trends' Forest Policy, Trade, and Finance Initiative said that Việt Nam’s timber industry will gradually recover in 2024 as demand for the products is increasing.

According to Đỗ Xuân Lập, Chairman of the Vietnam Timber and Forest Products Association, said that Việt Nam is among the top timber exporters in the world. Vietnamese timber reaches 170 countries and territories worldwide, making deeper inroads in key markets like the US, Europe, the Republic of Korea and Japan, and marking greater presence in emerging markets like Middle-East and India.

Lập said that Việt Nam has affirmed its position in the global timber market thanks to its advantages in forestry development, support policies, and accession to free trade agreements.

Moreover, Vietnamese companies are investing in new technology and digital transformation to develop new products and services and increase competitiveness, efficiency and productivity.

However, Việt Nam’s timber industry is also facing many difficulties, especially when major importers have been imposing stricter requirements on origin, green production, reduction of greenhouse gas emissions, and the Carbon Border Adjustment Mechanism (CBAM) - a carbon tariff on carbon-intensive products imported to the European Union (EU).

Last year, the EU adopted a regulation to curb the market's impact on global deforestation and forest degradation around the world, as well as protecting the rights of indigenous people. The EU Deforestation Regulation ("EUDR") mandates extensive due diligence on the value chain for all operators and traders dealing with certain products derived from cattle, cocoa, coffee, oil palm, rubber, soya and wood.

According to this regulation, businesses exporting rubber wood furniture to Europe have 18 months for large companies or 24 months for small and medium companies to prepare to meet the requirements of the EUDR.

Lap added that the internal capacity of Vietnamese businesses is also a limitation as most of them mainly produce following orders and designs of foreign distributors.

Production and export have grown continuously for years but still rely on cheap labour and raw materials, and the added value of products is not high.

He noted that most businesses are small in scale and do not have enough capacity to build brands. Small businesses can be weak in responding to sudden and continuous fluctuations in the market. Vietnamese products are rarely distributed directly to customers but via foreign distribution channels and foreign businesses, Lập added.

Nguyễn Liêm, Chairman of the Bình Dương Furniture Association, said that exports of Vietnamese timber and wooden products to the US increased in the first months of this year, pushing the industry’s growth.

US importers highly value and consider Việt Nam an important timber and wood product supplier in the world, Liêm said, adding that if businesses can make use of this advantage, they can create breakthroughs.

However, focusing too much on a key market is also a weakness, Liêm said, emphasising that Vietnamese timber producers need to diversify markets and increase exports to other potential markets. 

Banks permitted to block accounts receiving mistaken transfers

From July 1, banks are permitted to block accounts receiving mistaken transfers if account holders who have received the funds in error, ask them to.

This content is regulated in the Decree No 52/2024 on regulations on non-cash payments issued in May 15. 

Banks will also be permitted to block accounts following requests from competent authorities or payment service providers.

Either of the joint payment account holders can make such a request.

The decree also regulates compensation payments to service providers, account owners and competent authorities, if they illegally block payments or illegally ask for bank accounts to be blocked and the account holders suffer any financial damage.

Vân Phong Economic Zone struggles to attract investment

Vân Phong Economic Zone (EZ) is facing strong headwinds in attracting investment due to roadblocks related to planning, Lê Hồng Phương, Deputy Head of the EZ's Management Board said.

Despite having incentives to promote the development of Khánh Hoà Province — where the Vân Phong EZ is located — following National Resolution No 55/2022, the economic zone has not been able to attract strategic investors.

In the past three years, the EZ attracted five new projects and 11 existing projects, which increased their registered capital to more than VNĐ25 trillion (US$981.5 million), or just 17 per cent of the goal set in the province’s Resolution No 05 on promoting Vân Phong EZ in the 2021-25 period.

To date, Vân Phong EZ has contributed an estimated sum of VNĐ8.7 trillion into the provincial budget, making up for 18 per cent of the province’s budget revenue, compared to a 30 per cent goal.

Phương said that the lack of consistency in the implementation of construction planning, land planning and specialized planning caused difficulties in evaluating investment projects in the zone.

The evaluation of large-scale projects is also time-consuming and requires the coordination of ministries and agencies, he said.

Vân Phong EZ is preparing to call for investments in several projects. But investments in gas storage, energy projects or industrial zones are still awaiting more detailed policies from the latest national power development plan.

Châu Ngô Anh Nhân, Director of the provincial Department of Planning and Investment, said that the focus is on improving transport infrastructure to increase connectivity to Vân Phong EZ. The province will also enhance the business climate and increase investment promotion activities.

Meanwhile, the province is fast-tracking key infrastructure projects to attract strategic investors in prioritized industries such as industrial production, petrochemicals and shipping.

Vân Phong EZ has a total area of 150,000ha in Vạn Ninh District and Ninh Hoà Town. 

Work starts on a $2.36 million rubber processing plant in Điện Biên

The construction of a rubber processing plant, worth VNĐ60 billion (over US$2.36 million), began on Wednesday in the northern Điện Biên province's Hua Thanh Commune.

Financed by the province-based Điện Biên Rubber JSC, the plant will produce 5,000 tonnes of products annually once operational in 2025.

Over the past four months, Việt Nam shipped nearly 500,000 tonnes of rubber worth $743 million, up 6.4 per cent in volume and 14 per cent in value.

China remained the largest consumer of Vietnamese rubber during this time, accounting for 80 per cent of the country's total export volume, followed by India.

The Vietnam Rubber Association forecast that the country's rubber exports are expected to reach between $3.3 billion and $3.5 billion in value by the end of the year. 

Vietnam Airlines to increase flights between Đà Nẵng and Đà Lạt

The national flag carrier, Vietnam Airlines has said it will increase flights between Đà Nẵng and Đà Lạt starting in June.

Vietnam Airlines will operate three flights per week on the Đà Nẵng - Đà Lạt route on Tuesdays, Thursdays and Saturdays. Departure times will be 3.30pm from Đà Nẵng and 5.25pm from Đà Lạt.

This increased flight frequency aims to meet growing travel demand and stimulate tourism in the Central - Central Highlands region.

Đà Lạt is planning major tourism events for this year like the third Golden Week of Tourism and a tenth Dalat Flower Festival.

Improving air links between these cities is expected to support development in the Central Highlands region and cement Đà Lạt's status as an important trade and tourism hub. 

VNA changes check-in terminal for economy class passengers departing from France

The national flag carrier- Vietnam Airlines has just announced to change its check-in terminal for economy class passengers departing from France.

Specifically, the airline will start shifting a portion of its check-in operation at Charles de Gaulle Airport (Paris, France) from Terminal 2E to Terminal 2F from May 30 (Paris time).

Economy class passengers will check in at Zone 3 - Terminal 2F; meanwhile, business class passengers or platinum members of Vietnam Airlines and Elite Plus members of Skyteam will have two options to perform check-in procedures at Terminal 2E (as before) or at Zone 2 - Terminal 2F.

Passengers will take about 30 minutes to 40 minutes to move to Gate M of Terminal 2E by bus from Terminal 2F in case of their flights departing from Gate M of Terminal 2E.

Therefore, Vietnam Airlines recommended that passengers should use online check-in services, mobile apps, or airport kiosks.

Passengers at Terminal 2F should complete check-in procedures early and promptly move to the departure gate.

Binh Duong hosts warehouse, automation solutions exhibitions

The Vietnam Warehousing & Automation Show 2024 and the Cold Chain & Refrigeration Exhibition (The CO-REF Vietnam) kicked off in the southern province of Binh Duong on May 23.

Organised by the provincial administration in collaboration with the World Trade Centre in Binh Duong New City (WTC), the events bring together over 100 international and Vietnamese brands showcasing advanced technologies, as well as seeking effective solutions for warehouses, automation, and cold supply chains to meet the demand of goods preservation.

The exhibitions also introduce businesses that are comprehensively developing a logistics value chain, particularly in warehouse management, and temperature-controlled logistics supply chain management, especially in the frozen food industry. They also showcase the latest equipment and technologies designed to optimise logistics activities of enterprises.

Statistics show that Binh Duong’s logistics sector grows by 10% each per year. Its modern logistics system currently serves thousands of domestic and foreign businesses. Binh Duong is said to have the necessary conditions and potential to become a logistics hub in the region.

According to the provincial Department of Industry and Trade, solutions for warehouse management, automation, and the cold storage industry are very necessary as they are fields in great demand in the industrial locality.

The exhibitions offer a good chance for local businesses and enterprises, manufacturers, and investors in Vietnam to seek potential partners and suppliers, thus opening up new trade and investment promotion opportunities in the future./.

Dong Thap’s lotus root makes debut journey to Japan

The Mekong Delta province of Dong Thap has achieved a significant milestone with its first-ever export of 15 tonnes of lotus root to Japan.

The exported lotus roots underwent a meticulous cultivation process lasting 135 days, followed by slicing and flash-freezing at minus 25 degrees Celsius using IQF technology to ensure freshness and quality for the Japanese market.

Nguyen Minh Thien, Director of the Dai Viet Lotus Food JSC's factory responsible for the export, highlighted the stringent regulations involved, including testing soil, water, and air samples from the cultivation area, along with thorough inspection of the processing facility.

He said the Japanese partner has expressed interest in importing an additional 8 containers of lotus root this year, valued at roughly 7 billion VND (291 million USD).

This success story adds to Dong Thap's already impressive export performance. In the first four months of 2024, its export turnover surpassed 700 million USD, reflecting a remarkable 37.2% growth compared to the same period last year. Processed seafood, rice, shrimp crackers and apparel remain leading export products.

Vo Phuong Thuy, Director of the provincial Department of Industry and Trade, revealed a positive trend in export value for most local products. Rice emerged as the top earner with a value exceeding 300 million USD, showcasing a staggering 149% year-on-year increase and already topping 90% of the 2024 annual target. Processed seafood and apparel followed closely, generating over 185 million USD and 65 million USD, respectively./.

Hung Yen prioritises Taiwanese semiconductor enterprises to invest in IP No. 5

A business delegation from the Taiwan Electrical and Electronic Manufacturers' Association (China) on May 22 came to the northern province of Hung Yen to seek investment opportunities.

At the meeting, Chairman of the Hung Yen Provincial People's Committee Tran Quoc Van reviewed the socio-economic situation, transport infrastructure, education and training and the implementation of industrial parks in the province.

Van also introduced potential ways to attract investment to Industrial Park No. 5.

“Currently, Industrial Park No. 5 is completing its infrastructure very quickly, so it is able to meet businesses wishing to invest in the industrial park. The province's policy also wants to reserve Industrial Park No. 5 for Taiwanese semiconductor businesses," he said.

Currently, the province has 30 Taiwanese investment projects, with strengths in supporting industrial production for the world's leading corporations in industries such as computers, medical equipment and electronic components.

Earlier, the Taiwanese business delegation visited Industrial Park No. 5 located in Xuan Truc commune and Quang Lang communes of An Thi district and Nghia Dan commune of Kim Dong district adjacent to a road connecting two major highways.

With an area of nearly 200 hectares, the industrial park has currently attracted 12 investment projects, including 10 Taiwanese enterprises with registered capital of about 150 million USD./.

Taiwanese firms highly evaluate Hai Phong’s business environment

The Hai Phong Economic Zone Authority (HEZA) on May 23 organised an investment promotion conference with the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) with the participation of leaders from nearly 50 businesses operating in the electronic manufacturing, high-tech and semiconductor industries.

As the largest business association of Taiwan (China), the TEEMA brings together more than 3,000 members.

Chairman/CEO at Wieson Technologies Co. Ltd. Chen Hung Chin, head of the Taiwanese delegation, emphasised that TEEMA member enterprises are operating in different spheres, mainly electronics, and their combined revenue makes up about 56% of industrial production value in Taiwan.

This is the third time the association has organised such field trip to the northern port city of Hai Phong to scope out its investment climate, he said, noting that Taiwanese firms highly evaluate the local business environment.

Le Trung Kien, Head of HEZA, said Hai Phong has been an investment destination for many big Taiwanese groups, and expressed his hope that their leaders will step up investment promotion activities in the city, and that TEEMA will coordinate with the authority in organising a large-scale investment promotion conference in Taiwan in September.

Kien briefed the Taiwanese side on Hai Phong’s potential, advantages, and its synchronous, modern seaport, expressway, railway and airport infrastructure that has facilitated its international integration.

Over the past years, Hai Phong has remained on the list of the leading localities in foreign direct investment (FDI) attraction, about 2.5 billion USD each year, he continued.

According to HEZA, Hai Phong has lured more than 960 FDI projects worth over 31 billion USD from 42 countries and territories so far, of them 65 are invested by Taiwanese investors with total registered capital of over 2 billion USD.

Taiwanese enterprises have significantly contributed to the city’s export turnover with nearly 2 billion USD last year, and job generation there./.

Int’l electronics, smart appliances expo opens in HCM City

Tens of thousands of electric products, household appliances, electronic components, lighting equipment and others are on display at 800 booths at the Vietnam International Electronics & Smart Appliances Expo (IAEA) 2024 that opened in Ho Chi Minh on May 23.

The three-day event, jointly held by the VINEXAD company under the Ministry of Industry and Trade (MoIT) and Chaoyu Expo Company, draws the participation of 600 businesses, with big brands like Panasonic, Mega Housewares, CCTV Camera, Green Cook, FPT and Mobifone. It features five conferences and a business networking programme.

At the opening ceremony, Nguyen Van Nga, head of the MoIT’s office in the south, said with a large number of exhibitors, the event demonstrates the robust development of the electronic industry as well as demand for hi-tech products.

The expo is a venue for enterprises to seek partners and expand markets, she said, adding domestic firms will have an opportunity to access new products and services to bolster production as they are integrating deeply into the global economy.

Meanwhile, representing the IEAE 2024 organisers, Wang Bing Ben highlighted that the event, first organised in 2019, has received enthusiastic welcome from exhibitors, purchasers, and partners in the sector.

Practical programmes such as conferences and business-to-business event have been put on the agenda to better serve the participants and visitors, Wang highlighted.

According to the organising board, the number of participating enterprises surges 45% each year, while that of domestic visitors has been on the rise, with 10,038 arrivals in 2022 and 12,778 in 2023./.

Petrol prices slightly up in latest adjustment

The retail prices of E5RON92 bio-petrol and all oil products increased from 3pm on May 23 following the latest adjustment of the Ministry of Industry and Trade, and the Ministry of Finance.

The retail price of E5RON92 rose by 162 VND to 22,277 VND (0.87 USD) per litre, while that of RON95-III went up by 78 VND to 23,213 VND per litre.

The prices of diesel, kerosene and mazut are now priced at19,837 VND per litre, 19,902 VND per litre, down 36 VND and 6 VND, respectively, and that of mazut oil rose by 95 VND to 17,513 VND per kilogram.

In this price adjustment, the two ministries decided not to use the petrol and oil price stabilisation fund./.

PM orders sufficient power supply for socio-economic development

Prime Minister Pham Minh Chinh ordered sufficient power supply for production and daily activities, especially during peak season, while chairing a meeting in Hanoi on May 23.

As the economy has recovered well, demand for materials and fuels, including electricity, has been on the rise, he said, adding power need in 2024 is expected to rise 9%. However, there was a time in Q1 it even expanded 17%.

Recognising the progress of the 500kV Circuit-3 transmission line project which spans 519 kilometres from the central province of Quang Binh’s Quang Trach district to the northern province Hung Yen’s Pho Noi, PM Chinh laid a stress on the significance of the project to the socio-economic development, particularly when extreme heat will scorch large parts of the nation in June and July.

He requested ministries, sectors, and localities continue giving weight to the project, promoting smooth coordination in production, transport and installation of power poles, accelerating the site clearance work and the import of materials and equipment, while mobilising resources and vehicles for the project.

The Government leader ordered relevant sides to keep close tabs on the construction work and make concerted efforts to improve quality as well as assure safety, environmental hygiene and legitimate rights of local residents, highlighting the transmission line must be put into operation before June 30.

Although the national power grid will be able to meet the socio-economic development, PM Chinh requested them to keep a close watch on the situation and take measures to respond to possible scenarios.

It is necessary to diversify power sources, prepare fuels for electricity generation, and ensure water levels in reservoirs for power and agricultural production and flood prevention, he said, adding they must ramp up efforts to complete and issue documents on the development of wind and solar power in the spirit of harmonised benefits and shared risk.

Furthermore, he stated that electricity must be rationally priced to mobilise all resources for power development as well as ensure locals and businesses’ affordability and the economy’s resilience, adding communications work must be enhanced to raise public awareness about safe and effective use of electricity.

According to the Ministry of Industry and Trade and the EVN, power consumption was some 124.1 billion kWh during January-May, up 12.1% year-on-year. The national maximum capacity topped 47,600 MW in the end of April, with average daily consumption of 987.39 million KWh, up 13.2% and 6.87% against the same time last year./.

More passengers using first urban metro line

The number of passengers who use the Cat Linh-Ha Dong urban metro line – the first of its kind in Vietnam – has been increasing since it was put into operation three years ago.

According to Vu Hong Truong, General Director of the Hanoi Metro - the operator of the Cat Linh – Ha Dong urban metro line, after three years of operation, the line currently serves over 35,000 passengers daily.

Among these passengers, 47% are commuters, 45% students, and the remaining 8% travelling for other purposes. Notably, regular passengers make up an average of 70% of daily users, which rises to over 85% during peak hours.

Truong noted that the railway line helps make many people shift from using personal vehicles to public means of transportation.

According to the newly-approved master plant for the city's development in the 2021-2030 period with a vision to 2050, Hanoi authorities identified special mechanisms to speed up the construction of 14 urban railway lines in the city, four more than the number of lines approved in the previous plan.

This urban metro line is more than 13km long and has 12 stations and 13 trains. Each train, whose designed speed is 80 km per hour, has four carriages capable of carrying over 900 passengers.

Currently, ticket prices range from 8,000 VND for a single ride to 15,000 VND for the entire route. A daily pass costs 30,000 VND per ticket, and a monthly pass costs 200,000 VND./.

Vietnam a promising land for RoK’s SMEs: Confab

A workshop on investment-business connections with Vietnam was held in Seoul on May 22, opening a series of activities to support the global development for small- and medium-sized enterprises (SME) held by the Republic of Korea’s Ministry of SMEs and Startups (MSS).

Addressing the event, RoK MSS Minister Oh Young-joo, who used to be a RoK Ambassador to Vietnam, said that Vietnam is the third largest export market of his country, generating 9.4% of the total export revenue of the country’s SMEs.

Vietnamese Ambassador to the RoK Vu Ho said that Vietnam and the RoK are entering a new period in their cooperation on the foundation of bilateral comprehensive strategic partnership set up in 2022.

Vietnam is not only the RoK’s largest economic partner among the ASEAN member countries but also one of the RoK’s three largest partners in the world in terms of trade and investment, he noted. Leaders of the two countries set a goal for 100 billion USD of two-way trade in the near future and 150 billion USD in 2030, said the ambassador, adding that the two countries are promoting collaboration in the fields of green, digital economy, new energy, supply chain, economic security, food security, and defence industry both bilaterally and multilaterally.

Shim Jae-yoon from the RoK Consulate General in Ho Chi Minh City briefed RoK firms on the Vietnamese market, highlighting that Vietnam is a promising land worth investment.

Currently, there are a large number of RoK companies investing in Vietnam, Shim said, adding that hiss office is carrying out various activities to support RoK firms, including a K-startup global connection programme. A council for supporting RoK’s SMEs will be organised in HCM City in the future, he revealed.

Kim Kyung-don from the Trade-Investment Promotion Agency (KOTRA) in Hanoi said that since the country opened the door for foreign investors 37 years ago, Vietnam has made considerable progress in the investment system in many areas. Recently, the Vietnamese Government provided incentives to lure investment in advantageous areas, Kim noted.

Participating businesses received consultations on the Vietnamese market and the economic trend as well as legal regulations of Vietnam regarding investment, finance, accounting, and import-export.

A number of Vietnamese firms including Viglacere and Sonadezi joined the event and organised booths to introduce industrial clusters of Vietnam and support to foreign investors in industrial parks in Vietnam./.

Vietnam Airlines to increase Da Nang - Da Lat flights

National flag carrier Vietnam Airlines has said it will increase flights between Da Nang and Da Lat starting in June.

Vietnam Airlines will operate three flights per week on the Da Nang to Da Lat route on Tuesdays, Thursdays and Saturdays. Departure times will be 3.30pm from Da Nang and 5.25pm from Da Lat.

This increased flight frequency aims to meet growing travel demand and stimulate tourism in the Central - Central Highlands region.

Da Lat is planning major tourism events for this year like the third Golden Week of Tourism and a tenth Dalat Flower Festival.

Improving air links between these cities is expected to support development in the Central Highlands region and cement Da Lat's status as an important trade and tourism hub./.

Work on 2.36 million USD rubber processing plant in Dien Bien starts

The construction of a rubber processing plant, worth 60 billion VND (over 2.36 million USD), began on May 22 in the northern province of Dien Bien province's Hua Thanh commune.

Financed by the province-based Dien Bien Rubber JSC, the plant will produce 5,000 tonnes of products annually once operational in 2025.

Over the past four months, Vietnam shipped nearly 500,000 tonnes of rubber worth 743 million USD, up 6.4% in volume and 14% in value.

China remained the largest consumer of Vietnamese rubber during this time, accounting for 80% of the country's total export volume, followed by India.

The Vietnam Rubber Association forecast that the country's rubber exports are expected to reach between 3.3 billion USD and 3.5 billion USD in value by the end of the year./.

TH Group starts construction of a dairy project in Russia's Far East

TH Group recently began constructing a dairy farming and milk processing project in Nikolo-Mikhailovka village in Russia's far eastern Primorsky territory.

With a total investment of 19 billion rubles (more than US$210 million), the project aims to build a farm with 6,000 dairy cows (out of a total herd of 12,000 cows) and a milk processing factory with a capacity of 250 tonnes/day, as well as exploit a raw material area of ​​13,000 hectares.

The project is an important milestone in implementing TH's dairy project complex in the Russian Federation, following successes in Kaluga Province and Moscow, where TH farms and factories are considered key economic development projects.

The project is expected to help rekindle the great agricultural potential that has been long neglected in the Far East.

"The first items for the dairy farm — a warm home for 6,000 dairy cows — will quickly be implemented. To implement the herd development plan, we are committed to fully reclaiming the 13,000 hectares of land to ensure food sources for the entire herd of cows," Ngo Minh Hai, Chairman of the Board of Directors of TH Group, said at the groundbreaking ceremony.

Hải added that by the end of 2027, when the dairy factory is put into operation, 100 per cent of input materials will be provided from the farm cluster, officially forming a closed high-tech production chain “from farm to the glass of milk", contributing to the growth of gross product in the Primorsky region.

In addition to raising dairy cows and processing milk, TH Group also grows plants such as alfalfa and soybeans for export.

At the event, Nguyen Dang Hien, Consul General of Vietnam in Vladivostok, said that this was the first project for Vietnamese enterprises investing in this area. It also represents a new step in developing relations and economic investment between the two countries, taking place in spite of recent difficulties following the COVID-19 pandemic and geopolitical fluctuations.

TH Group recognises the potential and opportunities for investors in the Far East region. After Russian Deputy Prime Minister Yury Trutnev’s official visit to Vietnam and a meeting with TH Group to introduce the potential of the Far East region in early 2017, TH Group sent a delegation of experts to survey potential lands in Primorsky Krai. TH officially became a member of the Mikhailovsky Outstanding Economic Development Zone (belonging to the Outstanding Economic Zones of the Far East) in September 2017.

To date, TH Group has invested US$2.7 billion in the dairy project complex in the Russian Federation, including two farms with more than 6,000 dairy cows, a farm currently under construction in Moscow, and a dairy factory in Kaluga Province.

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