The digital transformation of the tax and customs fields has brought positive impacts to people and the business community, according to experts.

At the forum on digital transformation of the tax and customs fields held in Hà Nội on Wednesday, Cấn Văn Lực, chief economist at the Bank for Investment and Development of Vietnam (BIDV) and member of the National Financial and Monetary Policy Advisory Council, said that now, the taxation sector is relating to 907,000 businesses and about 28 million people.

Meanwhile, the customs involves about 80,000 businesses having import and export activities. Of these, 64,700 businesses have registered to join in the single-window public service system relating to import and export activities.

Lực said the tax and customs reform and management strategy has been issued with many specific solutions.

For electronic invoices, the tax sector has deployed them for more than one year, achieving great success. Meanwhile, the customs sector has developed digitisation to have the national public service portal at levels 3 and 4, Lực said.

According to the Ministry of Finance, the electronic tax declaration system has been deployed at all tax departments of all 63 provinces and cities. Over 99 per cent of businesses use electronic tax declaration, payment, and refund. In the field of customs, 250 administrative procedures are carried out via the national single window.

Đặng Ngọc Minh, deputy director of the General Department of Taxation, said the taxation has been implementing many projects to apply information technology in tax management and comprehensive digital transformation of this sector.

The representative of the General Department of Customs also said that the customs will continue to improve the customs legal system to modernise the customs procedure system in line with international commitments, and meet the requirements of digital transformation.

The customs procedure system will be re-designed to build a digital customs model following the digital Government model and Smart Customs with increasing levels of digitisation and automation.

By 2025, the customs strives for all customs procedures to be digitised; and 95 per cent of documents in customs records are converted to digital data.

Nguyễn Thị Cúc, chairwoman of the Việt Nam Tax Consulting Association, said that the most successful performance in the digital transformation of the taxation is the implementation of electronic invoices. The electronic invoices have saved costs for society in many aspects.

Regarding the customs, according to Cúc, Việt Nam has well developed an application of the Internet for the inspection of import and export goods.

She expects that in the near future, citizen identification numbers will be used in carrying out tax and customs-related procedures for citizens. This number will be used for taxes, customs, and social insurance. That is digitisation, both beneficial to the people and society, towards e-Government.

Nguyễn Bắc Hà, head of VCCI's Membership and Training Department, said that the national digital transformation process under the National digital transformation programme to 2025, with a view to 2030 approved by the Prime Minister, has achieved good results. For the Ministry of Finance, the digital transformation in the fields of tax and customs has also achieved important initial results.

However, the VCCI representative said that the digital transformation still requires continuous movement and transformation from the central government to local authorities, synchronous technical facilities along with a basic legal foundation.

Lực said that the tax and customs sectors are doing relatively well, but they also need more automation. In addition, they need to consider suitable technology and investment in technology. 

Strong commitments from foreign enterprises

Trần Anh Quý, Head of State Credit Policy Division under the Department of Credit Policy for Economic Sectors, State Bank of Việt Nam, said Việt Nam has received significant financial commitments for ESG, with huge investments such as US$12 billion from HSBC, $6 billion from Standard Chartered Bank.

“All of the investment sources are huge, stable with long-term commitments to the Vietnamese market,” he said.

Michele Wee, Chief Executive Officer at Standard Chartered Bank Vietnam said the bank has three major priorities. The first is to accelerate net zero.

The second is to lift participation of the community they serve and accelerate female participation, she said, citing statistics that in the world one billion women do not receive financial support. In Việt Nam, the number is also very high.

The third priority is to research globalisation - our commitment to provide bank products and services that will help global corporates expand and build sustainable businesses, she said. “As a bank, we have committed as a net zero institution by 2030 and our finance activity by 2050."

“Five years ago, we committed $75 billion globally to support infrastructure financing as well as transitioning financing. Two and a half years ago, we further committed $300 billion to transition financing and green tech.”

“We need to commit this money to the countries that can really impact 2050 COP targets,” she said, adding that the bank wants to be able to allocate as much as over $300 billion to the Vietnamese market.

“As a bank it is a very exciting opportunity for us to invest in ESG. All finance of foreign bank institutions here in Việt Nam is just exciting. We want to extend money but we all want it to harmonise global and local standards to be able to release financing,” she said.

She emphasised that not only frameworks but also investment in hiring experts and building expertise play a significant role.

Poovathungal Itteera Roy, Vice President of Power Systems at Schneider Electric Vietnam, said one the challenges of ESG enterprises in Việt Nam is the availability and access to ESG data and information.

Another challenge comes from how to standardise frameworks for ESG, he said, raising the question: If you have many companies with different standards, how do you actually measure and compare the performance of these companies?

He said: “We have committed by 2025, we will be carbon neutral in our operations and in 2030 we will be net zero in our operations. By 2040, we want to be carbon neutral. And by 2050, we want to be a net zero value chain.”

“One of the steps that we have taken is actually not just to enable our customers to go through the decarbonisation journey, but actually to implement many of the ESG commitments within our own operations,” he said.

He shared that ESG commitments are taken very seriously in how the products are developed. "When we actually start designing a product, we think about the lifecycle of the product. How can the product be recycled? What is the carbon footprint that goes into the manufacturing of this product? What are the components that are used and what are the associated carbon footprint? Most of the products that we sell to our customers in the market are all green products," he said. 

US Treasury maintains stance of not listing Việt Nam as currency manipulator

The latest semi-annual report from the US Department of the Treasury has once again excluded Việt Nam from its list of currency manipulators, according to an announcement by the State Bank of Vietnam (SBV) early this week.

This report assesses the macro-economic and foreign exchange policies of the US's major trading partners based on three criteria: trade surplus with the US, current account surplus, and persistent, unilateral intervention in the foreign exchange market. The US Treasury's monitoring list of major trading partners includes six economies: China, Germany, Malaysia, Singapore, Taiwan (China), and Việt Nam.

Việt Nam met two of the three criteria, which are the bilateral goods and services surplus with the US (US$105 billion over the four quarters through June 2023, exceeding the threshold of $15 billion), and the current account surplus (at $19 billion, equivalent to 4.7 per cent of GDP over the four quarters through June 2023, exceeding the threshold of 3 per cent of GDP). Therefore, it was named in the monitoring list.

The SBV said that at its recent meetings with the central bank, the US Treasury highly valued Việt Nam’s governance of the monetary policy and foreign exchange rates, which showed the Southeast Asian country’s seriousness in addressing the US side’s concerns and maintenance of the stability of the financial and monetary markets and the macro-economy amid numerous difficulties and challenges.

In the joint statement on the elevation of bilateral relations to the comprehensive strategic partnership, the US appreciated Việt Nam’s ongoing efforts to further modernise and enhance the transparency of its monetary policy and exchange rate management framework, to promote macro-economic stability and to ensure the safety and soundness of the banking system.

On the basis of the two countries’ comprehensive strategic partnership, the SBV will continue coordinating with ministries and sectors to keep close cooperation and establish channels for frequent and effective communications with the US Treasury, thereby helping promote mutual understanding, cooperation, information sharing, and timely settlement of issues of common concern, the central bank added.

HCM City apartment market shows signs of coming out of slump: experts

The HCM City condominium market is stirring again after a long stupor, experts have said.

In a recent report property consultancy CBRE Vietnam said around 3,600 new units entered the market in the third quarter, or nearly 90 per cent of the supply in the first half, up 27 per cent year-on-year.

The supply all came from continuing phases of existing projects.

Some 60 per cent of new supply in the first nine months of 2023 came from just one township project in the East, as the region remained the key area for condos.

Around 96 per cent was in the high-end segment and the remaining 4 per cent in the luxury segment, CBRE said.

"Although there is still a big gap between supply and absorption compared to previous years, the market showed positive signals,” Dương Thuỳ Dung, executive director of CBRE, said.

She said liquidity has improved from the first half of this year.

“It can't be denied that demand is certainly there, and buyers with sufficient financial capacity are still willing to invest the market, and proper pricing is the key decision-making factor," Dung said.

Buyers now have easier access to bank mortgages as many lenders have cut interest rates in the third quarter.

M&A and investments by funds are helping developers find a way out of their earlier cash crunch.

Singaporean developer CapitaLand recently sold its new project, De La Sol in District 4.

To be handed over next month, it has 870 one- to three-bedroom apartments and penthouses ranging in size from 60sq.m to 197sq.m.

More than 90 per cent of the units the company put on sale were snapped up.

Speaking to Việt Nam News, Wyeren Yap, the company’s general manager for the south, said the condo market in the city is seeing low supply and high demand, and so several projects have been sold out despite the high bank mortgage interest rates of around 10 per cent, which the government has been trying to lower to 8-8.5 per cent.

“This shows there is still a strong demand for housing in the city, especially from investors who see real estate as a long-term and stable investment option compared to the stock market.”

Customers are also becoming more selective when choosing a project, he said.

“They pay more attention to the location, quality and reputation of the developer. Therefore, only the projects that meet these criteria can attract customers and achieve high sales.”

The market situation means prices are likely to rise, and so buying now could be a good investment opportunity, he said.

Analysts are unanimous the market will recover sooner rather than later.

“I think the market will improve next year, as the Government is taking various measures to stimulate the economy, such as lowering interest rates and providing support for both end-users and businesses,” Yap said.

“These policies will boost the confidence and demand of consumers and investors in the real estate sector.

“Our outlook is still very optimistic. I expect the market to pick up again after the Tết holiday, which is a traditional time for people to save and spend money.

“Especially those who have extra income will look for investment opportunities during this period, and real estate is one of the most attractive options.”

According to CBRE, in the last three months of 2023 more than 3,000 condominiums and 85 landed properties are set to be launched in HCM City.

“The market will face headwinds at least until the first half of 2024, and transactions will be stronger when the city's macroeconomics, legality and buyer sentiments improve," Dương said. 

KRX system expected to bring new opportunities to stock market

The launch of the KRX system by the end of this year is expected to significantly increase capital flows to the stock market, experts said.

Speaking at the Vietnam Investment Forum 2024 in HCM City on Thursday, Tạ Thanh Bình, head of the Securities Market Development Department under the State Securities Commission (SSC), said the market has experienced fluctuations since the start of 2023 due to global economic and political instability.

Bình attributed the market’s decline to slower growth in major economies, concerns over geopolitical tensions in the Middle East, currency exchange rate pressures, and other factors.

Despite the market being in a downtrend since September, liquidity has gradually improved, according to Bình.

Bình also highlighted positive signs for the stock market in the near future, such as controlled inflation, falling loan interest rates, flexible monetary policy management, increased public investment capital disbursement, and government support programmes.

The upcoming launch of the KRX (Korea Exchange) system is considered a significant development for the market. The system is currently in the testing phase and is expected to become operational by the end of this year.

Its goal is to upgrade the technology system and infrastructure of the Vietnamese stock exchange.

The KRX system is expected to introduce new products, trading, and payment solutions to the Vietnamese stock market, including T+0 settlement, short selling, and option contracts.

These innovations will help address market bottlenecks and move towards upgrading the market from frontier to emerging.

Nguyễn Duy Linh, CEO of VPBank Securities Joint Stock Company, said the SSC is actively implementing market reforms by launching the KRX system by the end of December 2023.

It also plans to streamline payment procedures for foreign investors in the stock market, allowing securities companies to provide guarantees for foreign investors when purchasing shares.

This move has been recognised by FTSE Russell, a global ratings organisation, as a step forward that may help overcome long-standing legal barriers that have hindered market upgrades.

According to Linh, Việt Nam has the potential for an early upgrade announcement from FTSE in September 2024 and an upgrade by June 2026 by global ratings organisation MSCI, based on the proactive implementation of activities related to market reforms.

The upgrade to emerging market status is expected to attract significant capital inflows to the market.

VPBank Securities estimates around US$600 million could flow in from passive funds, assuming Việt Nam’s proportion in the new emerging market index is around 0.7 per cent.

In addition, existing funds are expected to invest five times more when Việt Nam is upgraded to an emerging market, providing greater profits for listed companies on the HOSE trading floor.

Currently classified as a “frontier market” by global ratings organisations FTSE Russell and MSCI, Việt Nam needs to meet higher standards to elevate its status to an “emerging market.”

Cấn Văn Lực, chief economist at commercial Joint Stock Bank of Investment and Development of Vietnam (BIDV), said that if Việt Nam’s status is upgraded to emerging market, the stock market will attract “larger, more stable, and more diverse” capital flows from foreign investors.

The upgrade to emerging market status will also lead to institutional reforms, market improvements, and the development of businesses and financial markets, he added.

FTSE Russell’s September 2023 ranking report placed Việt Nam on a watch list for possible reclassification to secondary emerging market status.

FUNiX implements facial recognition technology for 30,000 students

FUNiX, an online education platform in Việt Nam, has partnered with EWAY JSC to deploy Facecheck, a facial recognition

solution using biometric authentication technology, in order to optimise the online learning experience for its 30,000 students.

Facecheck, one of EWAY's flagship products, provides a quick, convenient and accurate solution for ID verification. Employing advanced AI algorithms, Facecheck can analyse and identify faces in just a few seconds, enabling a seamless user experience without compromising on security.

The application is able to identify faces even in less-than-ideal lighting conditions and to distinguish between real and captured images, such as photos or videos, guaranteeing maximum accuracy.

In order to make digital learning more fun and convenient for its 30,000 students, FUNiX partnered with EWAY to deploy Facecheck in school activities. The technology enables students to be quickly and accurately identified, enhancing their experience of school events, study sessions and particularly exams.

At FUNiX, student assessment process combines online assignments with oral exams to ensure an accurate and transparent measurement of student learning. With Facecheck, the online school expects this process to become more convenient for its students.

According to FUNiX CEO Lê Minh Đức, ID verification of online learners plays an important role in supporting both learning and assessment. As learning at FUNiX is 100 per cent online, there are various situations in which quick and accurate student verification is essential for effective participation in school activities and exams.

This process has been carried out with great efficiency at FUNiX, he said.

Facecheck is easy to deploy, said EWAY General Director Phạm Hoàng Hưng. It boasts real-time facial recognition with an accuracy rate of up to 99.8 per cent. Users' data is strongly protected by multi-layer encryption and security.

The facial recognition solution has been adopted by various domestic and international companies in the field of education, finance, banking, insurance, greatly benefiting both customer service call centers and remote workers.

Direct air service between Yunnan and Khanh Hoa launched

A direct air route connecting Kunming city of China’s Yunnan province and Cam Ranh city in the southcentral Vietnamese province of Khanh Hoa was put into operation on November 9.

The carrier Ruili Airlines, departing from Kunming International Airport in China, landed at Cam Ranh International Airport at 7:40 p.m. on November 9, bringing with it more than 100 Chinese tourists.

Moving forward, the airlines will regularly operate the Kunming-Cam Ranh route with a frequency of three flights per week on Tuesdays, Thursdays, and Saturdays.

Before the COVID-19 pandemic outbreak, China represented the biggest source of tourist arrivals in Khanh Hoa, with over 2.5 million Chinese visitors heading to the locality in 2019.

Last year, the province welcomed more than 2.5 million holidaymakers, earning over VND13.8 trillion, marking a 5.75-fold increase on-year. 

By 2025 Khanh Hoa province’s tourism sector is aiming to serve about 4.5 million foreign tourists and 4.3 million domestic visitors. The figures are expected to reach seven million international and 6.8 million domestic arrivals by 2030.

Lao Cai hosts 23rd Vietnam - China international trade fair

The 23rd Vietnam - China international trade fair is being held in the northern mountainous province of Lao Cai from November 10-15.

With the theme of promoting the bridging role of Lao Cai and Yunnan, the fair comprises of 529 standard booths and 88 exhibition areas of nearly 300 enterprises from 50 Vietnamese provinces and cities, eight Chinese localities and eight other countries.

Diverse goods are being showcased such as agricultural, forestry and aquatic products, food, medicinal herbs, machinery and equipment, raw materials, chemicals, construction materials, electrical appliances, household appliances, consumer goods, furniture, and handicrafts.

Speaking at the opening ceremony, Deputy Minister of Industry and Trade Phan Thi Thang affirmed that the fair is of great significance to promote economic, investment, tourism and service cooperation and development between Lao Cai and Vietnamese localities with Yunnan province and other Chinese localities, thus contributing to enhancing trade exchanges between the two sides and increasing import-export growth.

Events introducing investment attraction mechanisms and policies of Lao Cai and Yunnan, and those to develop two-way trade and logistics between Vietnam and China are expected to take place during the trade fair.

The annual trade fair is held alternatively by Lao Cai and Yunnan, according to an agreement between the Vietnamese Ministry of Industry and Trade and Yunnan authorities.

VietChallenge’s event honours Vietnamese startup spirit

Vietnam’s startup spirit was honoured at an event recently held at Nasdaq headquarters in New York, the US, by VietChallenge, a non-profit organisation led by Vietnamese professionals and entrepreneurs in the US.

Sang Coffee, GeneStory, GreenJoy and Tubudd were the four Vietnamese startups honoured at the event.

Speaking at the event, Ambassador Dang Hoang Giang, Permanent Representative of Vietnam to the UN, expressed his strong belief that Vietnamese entrepreneurs will continue making contributions to promoting the investment and business ties between Vietnam and the US.

Meanwhile, Executive Vice President of Marvel Optical and co-founder of Inphi Loi Nguyen shared his journey to take his startup to become a leading business in the semiconductor industry in the US. 

Founders of standout firms such as LovePop, Cellens and IvyLinks shared their valuable startup experience, bringing inspiration and valuable experience to young entrepreneurs.

Emily Pollack, head of US Retail Operations at Republic shared her experience in capital mobilisation, helping startups have a deeper insight into methods and strategies in seeking financial resources.

Beyond honouring Vietnam’s startup talents, the event served as a venue for generations of entrepreneurs to share knowledge and experience, opening up opportunities for the development of the Vietnamese startup community all over the world.

Connectivity awakes Mekong Delta’s tourism charm

A kaleidoscope of tourism offerings have been branched out under a tourism connectivity programme between Ho Chi Minh City and the Mekong Delta region to unlock the allure of the southern localities. 

Eighty tours have been set up, connecting Ho Chi Minh City with a host of localities in the Mekong Delta, such as Tien Giang, Vinh Long, and Can Tho. The tours will give visitors a taste of the Mekong Delta where the daily life is peaceful in rustic landscapes under coconut canopies and along a system of canals that zigzag through tropical orchards.

According to statistics from 100 travel firms engaged in the connectivity programme, 1.8 million visitors joined the tours from January – September, each paying around 800,000 VND to 1 million VND (32.96 – 41.19 USD).

Deputy Director of the Department of Tourism of Ho Chi Minh City Bui Thi Ngoc Hieu said the travel business association and suppliers of tourism services have an important role to play in the programme, helping promote tourism products in the spirit of sharing with the local tourism community. 

Hieu suggested that the localities involved should sketch out more tourism incentives to ensure service quality for both domestic and international tourists. 

Forming key tourism products is a must to lure high-end travelers, she said, suggesting localities to propose their People’s Committees to issue policies to lure investment in entertainment zones to diversify tourism offerings to encourage visitors to stay longer. 

As a tourism gateway for the region, Ho Chi Minh City should work to complete fascinating tours to lure more visitors to the connectivity programmes, she added. 

Meanwhile, representatives from the Departments of Culture, Sports and Tourism of several Mekong Delta localities said that digital technology should be deployed to capitalise on and manage tourism resources.

Director of the Domestic Tourism Centre at Ben Thanh Tourism Joint Stock Company Cao Van Tung said that localities should re-define their tourism brands to develop more standout tourism products, and travel firms are willing to accompany local authorities in the process. 

Meanwhile, Marketing and Communications Director at Vietluxtour Tran Thi Bao Thu said each locality needs to build distinctive tourism products. For example, the tours should enable visitors to distinguish Tram Chim National Park from Mua Xuan (Spring) Tourist Area, and spiritual tourism in Long An from that in Soc Trang, she said. 

Travel firms said although Ho Chi Minh City and the Mekong Delta region are able to cash in on their cachet of criss-crossed rivers, tranquil orchards and green environment, it is tough for the localities to form independent three-day tours due to limitations in infrastructure. 

Therefore, it is necessary to build inter-regional trips that are able to create lasting impression on visitors, and keep them coming back, they added.

PM requires stronger management of mining right-related auctions

Prime Minister Pham Minh Chinh has ordered the strengthening of management over the implementation of auctions for mining rights, particularly for minerals used as common construction materials, given signs of legal violations detected in the recent bidding for the mining right of three sand mines in Hanoi.

In a November 11 dispatch sent to the Ministers of Public Security, Environment and Natural Resources, Finance, and Construction; and the Chairpersons of the People’s Committees of Hanoi, and other centrally-run cities, and provinces, the PM noted that in recent times, many localities have organised public and transparent auctions to grant mining rights, achieving many positive results, and contributing to generating large revenues for local budgets.

However, in Hanoi, recently, the outcomes of the auctions for the mining rights of three sand mines of Lien Mac, Chau Son and Tay Dang - Minh Chau showed abnormal signs, as the winning price was many times higher than the starting price, thus causing public concerns as well as possible negative effects on socio-economic development and the construction material market.

Therefore, the Government leader requested the Chairman of the Hanoi People's Committee to instruct the immediate examination of the entire process of surveying, evaluating mine reserves, preparing documents and organising auctions related to the three sand mines, in order to promptly detect and strictly handle any violation of regulations in mining right auctions, prevent acts of taking advantage of auctions to push up prices and cause market disturbance, and report the results to the Prime Minister before November 20, 2023.

The Ministry of Natural Resources and Environment was asked to preside and coordinate with the Ministries of Finance, Construction, and Justice and the People's Committees of provinces and centrally-run cities to urgently inspect the organisation of mining rights auctions, especially for minerals used as common building materials, that show unusual signs; promptly detect inadequacies in legal regulations with a view to fixing them to prevent profiteering; strictly handle acts of taking advantage of auctions to cause market disturbance; and propose solutions to limit negative impacts.

The Ministry of Public Security was tasked with directing local police to keep a close watch on the situation to promptly detect, prevent, and strictly handle violations of legal regulations in mining rights auctions.

Binh Dinh promotes investment cooperation with foreign partners

The provincial People's Committee of the south central province of Binh Dinh on November 11 organised a conference with heads of foreign diplomatic missions and organisations in Vietnam to promote exchanges and connectivity, and introduce the locality's potential, advantages, and development orientations.

Speaking at the event, Secretary of the provincial Party Committee Ho Quoc Dung stated that Binh Dinh is committed to creating favourable conditions for foreign agencies, businesses, organisations, and individuals to live and work in the province.

Chairman of the provincial People's Committee Pham Anh Tuan said that Binh Dinh welcomes investors boasting modern, environmentally friendly technologies, efficient use of resources, and competitive products, with priority sectors including agro-forestry-fishery, industrial and logistics services, tourism and urban economy.

Malaysian Ambassador to Vietnam Dato Tan Yang Thai stated that Malaysia sees enormous potential and opportunities in Vietnam and committed to further enhancing the two nations’ trade and investment cooperation.

Thai Consul General in Ho Chi Minh City Wiraka Moodhitaporn said Thailand is ready to closely cooperate with international partners, including Vietnam, to promote sustainable development.

On this occasion, the People's Committee of Binh Dinh province signed an international cooperation agreement with the Korea Land and Housing Corporation.

Nghe An province calls for US investment

The central province of Nghe An introduced its investment environment and prioritised investment areas to US investors at a forum held in Washington D.C on November 9.

Addressing the event, Ambassador to the US Nguyen Quoc Dung hailed Nghe An's selection of the US for calling investment right after high-level visits between the two sides.

He pledged that the Vietnamese Embassy will continue to coordinate with and support the province in luring more US investors.

Meanwhile, Cindy Shao, President of the Asian American Chamber of Commerce (AACC), a non-profit organisation with nearly 3,000 member businesses, said that the forum was a chance to promote cooperation between US partners and Vietnam in general and Nghe An in particular.

For his part, Chairman of the Nghe An People's Committee Nguyen Duc Trung briefed participants on the province's potential and strengths, underlining that the locality has prepared best conditions in planning, infrastructure, land, human resources and administrative procedure support to welcome investors.

The province is calling for investment in its Dong Nam (Southeast) Economic Zone, which comprises five industrial parks covering 2,000 hectares, he said, stressing that Nghe An hoped to receive investment in the fields of semiconductors, manufacturing, new material production, and new energy.

Le Tien Tri, Director of the Dong Nam Economic Zone Management Board, said that Nghe An hoped to foster connections with US partners in the field of high technology and the production of consumer goods, petrochemicals and energy.

Chairman of the AACC Board of Directors John Lin said that Vietnam has many advantages in foreign investment attraction, including technology and human resources. He hoped to arrange an AACC delegation to visit Vietnam and Nghe An soon.

Concluding the forum, participants witnessed the signing of a cooperation agreement between the Management Board of the Dong Nam Economic Zone and the AACC.

Earlier the same day, the Nghe An delegation had meetings with leaders of the US Semiconductor Industry Association and the US-ASEAN Business Council.

Cao Bang studies Niagara region's experience in cross-border trade, tourism

A delegation from the northern border mountainous province of Cao Bang has paid a working visit to Niagara to foster bilateral cooperation and learn from the Canadian region’s experience in cross-border trade and tourism development.

At an investment promotion conference held as part of the trip, Cao Bang emphasised its desire to seek partnerships to develop its strengths in border economy and tourism services. As a border economic zone strategically located between Canada's industrial centres and the US’s major cities as well as a famous tourist destination with waterfalls attracting millions of visitors annually, Niagara is highly suitable for this development direction.

IBT College, representing the Niagara Economic Development Committee, signed a cooperation agreement with Cao Bang, serving the two sides’ exchange of study tours and the training of tourism personnel for the latter.

Talking to the Vietnam News Agency's reporter in Canada, Vice President of the IBT College James Rice hailed Cao Bang’s Ban Gioc waterfall as an unpolished diamond, similar to Niagara Falls many years ago. It offers an opportunity for Vietnam to leverage and develop Cao Bang in the future.

According to him, the IBT College is closely collaborating with the province to open an educational facility serving the training of tourism services for local tour guides and employees of restaurants and hotels.

Tran Thu Quynh, Trade Counselor at the Vietnamese Embassy in Canada, said the cooperation between Cao Bang and Niagara supports both sides in exploiting waterfall tourism and managing cross-border resources and trade.

Vietnam-Canada trade turnover reached 7 billion USD in 2022 and is expected to hit 10 billion USD in the coming years. Vietnam is currently Canada's top trading partner in the Association of Southeast Asian Nations (ASEAN).

MSB receives funding of US$100 million for sustainable development

Vietnam Maritime Commercial Joint Stock Bank (MSB) and the Dutch Entrepreneurial Development Bank (FMO) has recetly signed a letter of intent to cooperate on a medium and long-term loan of US$100 million.

The signing ceremony is within the framework of the Vietnam-Netherlands High-Tech Business Forum Conference.

In particular, FMO and the Dutch Fund for Climate and Development (DFCD) plan to support small and medium-sized businesses (SMEs) and environmentally friendly initiatives with up to US$100 million for a maximum of nine years. 

FMO will also help MSB modernise its environmental and social risk management system to meet international requirements.

A representative of MSB said that the bank would encourage the development of credit products that meet sustainability standards.

The fund also shows MSB's ability to meet environmental and social (E&S) criteria and the bank's orientation in increasing the importance of environmental and social factors in work.

The bank aims to concentrate on green credit including low-carbon emission technologies, climate change prevention, and renewable energy. 

MSB has included the social and environmental risk management procedures into the loan evaluation and approval process starting on June 1 this year.

The move helps MSB access to funding from international organisations, supporting the goal of achieving zero net emissions by 2050.

Bến Tre Province develops marine economy

Delta’s leading province in developing a marine economy strongly and sustainably from now to 2030.
 
Farmers harvest clams in Thới Thuận Commune in Bến Tre Province’s Bình Đại District. – VNA/VNS Photo Công Trí
BẾN TRE – Bến Tre Province will give priority to develop its marine economy, aiming to become the Cửu Long (Mekong) Delta’s leading province in developing a marine economy strongly and sustainably from now to 2030.

Nguyễn Minh Cảnh, deputy chairman of the provincial People’s Committee, said the province will focus on developing renewable energy, aquaculture and tourism in coastal areas.

It will develop ecological marine culture, adapt to climate change, protect marine environment, prevent coastal erosion, and preserve and promote marine ecology, he said.

The province will prioritise giving marine space for developing renewable energy and new marine economy sectors that are environmental friendly, and assist investors to speed up investing in zoned wind power projects from now to 2030.

It aims the output of solar and wind power will reach 1,500MW in 2025 and 3,000MW in 2030.

In aquaculture, the province will develop high-tech, biosafety and environmental friendly aquaculture from now to 2030.

It aims aquaculture will achieve an output of 136,000 tonnes in 2030 and earn a production value of VNĐ450 million (US$18,400) per hectare a year.

It will develop 5,100ha high-teach farming areas for breeding aquatic species and producing their fry by 2030.

All concentrated aquaculture areas for breeding key aquatic species will get Vietnamese good agricultural practices (VietGAP) or equivalent standards.

The province now has 3,067ha of high-tech marine shrimp breeding areas with an annual output of more than 128,000 tonnes.

Shrimp is one of the province’s key aquatic species.

The province will upgrade inspection data management systems for fishing boats, and manage and develop fishing boats in according to their granted licenses.

It will improve the service quality of fishing ports and storm shelters for fishing boats, and the service quality of establishments that produce and repair fishing boats and offer logistic services for fishing boats.

It aims for the tourism revenue of its three coastal districts to increase by 25 per cent a year from now to 2030, accounting for 20 per cent of the province’s total tourism revenue.

By 2030, the tourism revenue of its three coastal districts will account for 30 per cent of the province’s total tourism revenue.

The province will develop road systems to increase connection with the delta’s other provinces, the southern key economic zone, and districts, cities and economic zones in coastal areas.

It will co-operate with the neighbouring provinces of Tiền Giang and Trà Vinh to build a coastal road running through the three provinces.

It will co-operate with Vĩnh Long Province to build the Đình Khao bridge on National Highway No. 57 to connect the two provinces.

It will co-operate with Tiền Giang to build Rạch Miễu No.2 bridge to link the two provinces.

To reach these targets, the province will implement synchronous solutions, including completing legal regulations on natural resource management and marine environment protection, according to its People’s Committee.

It will proactively increase international co-operation for managing and researching marine resources and environments, develop human resources for the marine economy, and increase investment, especially private, collective and foreign investment.

It will prioritise using State budget to invest in infrastructure for developing marine economy, especially infrastructure for transport, sea ports, aquaculture, fishing, industrial parks and industrial park clusters in coastal areas. 

Quảng Ninh enhances the brand reputation of OCOP products

Quảng Ninh has gained success in establishing the quality and unique characteristics of its One Commune One Product (OCOP) products, winning consumer trust and providing higher income for rural communities.

Since the launch of the OCOP programme in 2013, Quảng Ninh Province has recognised this as a vital economic development programme with a focus on self-sufficiency, fostering a strong and sustainable connection between producers, processors, and consumers.

Therefore, it has required accurate awareness, appropriate actions, and steps to further enhance the reputation of Quảng Ninh's agricultural products.

After 10 years of implementing the programme, Quảng Ninh has become the leading province in the country in terms of the number of OCOP products with 565 products, including 193 products awarded three stars, 68 products awarded four stars, three products with provincial five stars and three products with national five stars.

Quảng Ninh's OCOP products have become increasingly diverse in packaging and design, meeting various quality and food safety standards. These products have firmly established their brands in the market and have been well-received by domestic customers.

In addition to improving product quality, the province has implemented various solutions to promote OCOP products. Quảng Ninh currently has approximately 30 OCOP retail centres and sales points. More than 95 per cent of OCOP products have electronic labels or barcodes.

The inclusion of OCOP products on e-commerce platforms makes it convenient for consumers to purchase the products. Currently, 385 OCOP products are available on e-commerce platforms such as Postmart.vn, Voso.vn, Sendo, and Tiki.

Furthermore, to create a brand for the province's agricultural products and promote sustainable tourism, Quảng Ninh has focused on promoting and connecting OCOP products with tourism development, offering attractive experiences for tourists.

Starting from the beginning of the 2023 tourism season, apart from traditional forms, eco-tourism offers tourists OCOP products in the province. In addition, OCOP products are prominently showcased at annual tourism festivals in various localities as well as major events such as the 31st Southeast Asian Games and the 17th East Asian Tourism Forum. These efforts have led to the increasing recognition of OCOP products both locally and internationally.

Currently, Quảng Ninh is focusing on regional raw material planning, building and managing the OCOP brand into a strong and standardised brand, and developing OCOP products according to the value chain, aligned with the advantages of production conditions and market demands.

The province has created favourable conditions for organisations and individuals to invest in establishing agricultural product processing facilities, land clearance, raw material zones, and has provided mechanisms and policies to support the infrastructure construction and investment in production equipment.

With various unique regional specialties, the province places a strong emphasis on ensuring product quality linked to local advantages, thereby promoting market connectivity and sustainable development for each OCOP product.

Quảng Ninh aims to have approximately eight to ten OCOP products achieve a national five-star rating by the end of 2025. The province aims to ensure that 100 per cent of OCOP products are labelled with electronic tags or have traceable barcodes, and to establish value chains with circular economic approaches. Additionally, 100 per cent of OCOP entities are expected to participate in modern sales channels such as supermarkets, convenience stores, and e-commerce platforms.

To enhance the brand of agricultural products, Quảng Ninh will continue to create favourable conditions for businesses to develop e-commerce, aligning with the trends of the Fourth Industrial Revolution. Simultaneously, it will actively promote the development of local agricultural product brands, geographic indications, and organise promotional activities for OCOP products linked to local regions, strengthening collaboration among businesses to boost the production and consumption of OCOP products.

In the near future, to drive effective OCOP product consumption, Quảng Ninh will continue to provide support mechanisms to bring OCOP products into local centres and sales points, especially in airport and tourist areas. Additionally, the provincial Department of Trade will collaborate closely with the Department of Tourism and local authorities to enhance the connection between OCOP programmes and tourism routes, enabling tourists to experience OCOP products at OCOP centres and stores as well as its production facilities.

To standardise and enhance the quality of OCOP products, Quảng Ninh will intensify the development of provincial-level OCOP products, focusing on increasing the quantity, value, and ensuring high standards, step by step aligning with international standards to serve exports. Apart from changes in production technology and designs, the province will continue to apply mechanisms and policies to support the development of production, tourism, science and technology, and trade promotion, thereby stimulating the development of production for individuals and economic entities participating in the OCOP programme.

Nguyễn Kiên, Director of the Quảng Ninh Trade Promotion and Development Centre stated that the centre is currently focusing on upgrading the province's e-commerce platform, and will actively support the OCOP products that have received star ratings on various platforms.

Additionally, the centre will connect with banks, service providers, businesses and organisations in organising training sessions and electronic booths at provincial-level trade fairs.

Apple supplier Luxshare-ICT injects $330 million into Bac Giang

Through its Vietnamese subsidiary, the Apple supplier Luxshare-ICT is pouring an additional $330 million into its electronic component manufacturing project in the northern province of Bac Giang.
 
On November 8, Bac Giang Industrial Zones Management Authority announced that it had just granted the 10th adjusted investment registration certificate for the project to establish Luxshare-ICT Vietnam Co., Ltd. and expand production in Bac Giang.

Accordingly, Luxshare-ICT Vietnam will invest $330 million in the manufacturing facility that covers an area of 291,000 square metres in the Quang Chau Industrial Zone.

The project specialises in producing electronic components, including cables, touch pens, lighting devices, digital locks, intercoms, and other items.

After adjustment, the total registered investment capital from Luxshare-ICT Vietnam Co., Ltd. in Bac Giang tops $504 million. Once completed, the project will create jobs for tens of thousands of workers and contribute to promoting industrial production in Bac Giang.

Luxshare has been investing in Bac Giang since 2019. This additional capital boost makes it the second-biggest made by foreign investors in Bac Giang, trailing behind the $378 million investment by Chinese manufacturer JA Solar.

The investment reflects the trend of Apple suppliers securing a strong footprint in Vietnam. As reported by CNN, Apple joins a growing list of global businesses that have become bullish on Southeast Asia, pouring more investment into manufacturing.

Data compiled by Bloomberg on more than 370 suppliers and their factory locations reveals which of Apple’s manufacturing partners are building new capacity and where. Vietnam and India are the biggest winners, with smaller production hot spots also appearing elsewhere in Asia.

According to Apple’s supplier list for 2022, there are currently 26 suppliers with 28 factories in Vietnam servicing the tech giant’s electronics manufacturing needs. These factories are spread around 15 provinces, with the majority located in the north.

Danish firms increase green investments in Vietnam

Two outstanding aspects of cooperation between Denmark and Vietnam over the last few decades, green investment and renewable energy, will be boosted by the establishment of a Green Strategic Partnership.
 
At a press conference on November 3, after the establishment of the Green Strategic Partnership (GSP), Danish Ambassador to Vietnam Nicolai Prytz spoke about the positive relationship and cooperation between the two countries.

Since 2015, the two countries have shifted away from a donor-recipient relationship towards a partnership on an equal footing, with extensive cooperation across all sectors, including political dialogue, green growth, energy, agriculture, food, healthcare, and culture, with a primary focus on capacity-building in these areas.

"Vietnam has experienced significant and impressive sociometric growth over the years, which also meant that, eventually, it no longer had to depend on official development assistance from nations like Denmark," the ambassador said.

"That didn't mean that our relationship or cooperation came to an end. We have entered a comprehensive partnership agreement, based on sector-to-sector cooperation. Furthermore, the establishment of a GSP has opened up a new chapter in their 50- year relationship and will contribute to assisting Vietnam to meet its green transition ambitions."

Vietnam's commitments to net-zero by 2050, its active engagement in the Just Energy Transition Partnership (JETP), and its own Power Development Plan VIII are courageous. As a good friend and partner, Denmark would like to be here to assist the nation in ensuring these engagements are successful.

Vietnam is one of the five countries with which Denmark has established a GSP, along with India, Indonesia, South Africa, and South Korea. This reflects a very high commitment from the Danish government.

The partnership provides a robust framework for Denmark to assist Vietnam in developing an economy with climate resilience and low carbon emissions, as well as promoting a circular economy. It will focus on addressing issues of national and global significance, and steering efforts towards greater adoption of green technology and sustainable practices.

"The GSP will be carried out at both political and economic levels. At the political level, the two governments will continue their dialogues on green growth and climate change issues. They will try to find common views and commitments to be delivered at the upcoming COP28 summit in the UAE," the ambassador said.

In addition, the two countries will continue to closely cooperate within the JETP.

Of this, energy is still one of the most significant cooperation sectors between the two countries. Sharissa Devina Funk, counsellor at Energy Sector, said that since 2013, Vietnam and Denmark have been in a long-term partnership to strengthen the energy transition. The Danish Energy Agency cooperates with the Vietnamese Ministry of Industry and Trade through the joint Danish-Vietnamese Energy Partnership Program, which is going to start its third phase soon.

"One of the main outcomes of this cooperation is to build a long-term energy plan, including models and scenarios for energy development here. The two countries have worked closely to provide Vietnam's energy outlook report every two years, providing scenarios, contexts, and solutions to help it reach net-zero by 2050," she said.

Denmark has also shared a lot of experience and practices related to integrating more renewable energy into the national power grid.

"In Denmark, we can use wind power for the whole day, sometimes without the contribution of any other forms of energy. We have more than 30 years of experience in developing offshore wind power," Funk added.

Seeing promising land with incredible sociometric growth in Vietnam, many Danish investors' attention has been caught. Today there are 135 Denmark's companies operating in the country, and 155 ventures have taken place over the years.

Troels Jakobsen, commercial counsellor said, "It is quite remarkable for our country, with a population of only 5.8 million, to be one of the largest European investors in Vietnam."

"Lego's $1-billion project in Binh Duong province is a large recent venture with a commitment to being carbon-neutral. Green investment will also become the general trend for foreign companies and investors in Vietnam, with a commitment to using green energy and reducing emissions.”

Danish businesses are also interested in many other fields in this country, such as both offshore and onshore wind power. Two giant wind power corporations from Denmark are employing Vietnamese companies and suppliers to manufacture parts for their projects worth hundreds or billions of dollars.

"If wind power development is strong enough, Vietnam can become a regional hub, creating many jobs and generating a lot of more income and creating numerous opportunities for local suppliers and manufacturers," Jakobsen said. "We hope that the GSP statement will be the foundation to call for more Danish companies to come to Vietnam."

Vietnam is the DFC's largest market in Southeast Asia

The US International Development Finance Corporation (DFC) CEO Scott Nathan arrived in Ho Chi Minh City in November for his second trip to Vietnam in two months, a firm demonstration of the importance of the country to his organisation and to the United States.
 
The DFC has made investments to the tune of $737 million here, making Vietnam its largest market in Southeast Asia.

“My return to Vietnam just two months after I was here for President Biden’s historic visit demonstrates our commitment to bolstering Vietnam’s private sector,” said Nathan. “Over the past year, we have made commitments across our priority sectors, including energy, agriculture, health, and small business support. We are looking to do more here, both to strengthen the Comprehensive Strategic Partnership between our two countries and to unleash the power of private capital and create greater opportunity and prosperity for the Vietnamese people.”

Nathan met with current and prospective clients from the public and private sectors and previous beneficiaries of DFC’s work. In particular, he met with a delegation of visiting companies looking to make further investments here. Nathan also met with stakeholders investing in renewable energy and advancing the Just Energy Transition Partnership, and visited Fulbright University Vietnam, which is using its $37 million loan from DFC to construct its new campus in Ho Chi Minh City that will expand access to higher education.

Last September, Nathan joined US President Biden in Hanoi to elevate the relationship between the two countries. This time, in Ho Chi Minh City, Nathan, along with US Ambassador to Vietnam Marc Knapper, conveyed DFC’s enduring commitment to helping build a strong, independent, prosperous, and resilient Vietnam within the framework of the Comprehensive Strategic Partnership.

During Nathan’s previous trip to Vietnam, he announced two new commitments that nearly tripled DFC’s portfolio of investments in the country – more than $400 million in new financing to help expand access to finance for two major Vietnamese banks, VPBank and TPBank. These investments should bolster lending to small businesses across the country, including those owned by women, a group that has often faced significant challenges accessing finance.

DFC has partnered with the private sector to finance solutions to the most critical challenges facing the developing world today. DFC invests across sectors including energy, healthcare, critical infrastructure, food security, and small business support. Its investments adhere to the highest standards and respect the environment, human rights, and worker rights.

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