Exporters in Bình Định Province are taking advantage of the UK – Việt Nam Free Trade Agreement (UKVFTA) and other similar trade deals to expand their markets, with the help of the provincial Department of Industry and Trade.

In 2022, Bình Định’s export to the UK reached around US$57.9 million, a 24.7 per cent increase from 2021, and imported $119,000 worth of goods from the UK.

Meanwhile, the first nine months of 2023 saw the province’s exports to the UK reach nearly $39.7 million (3.6 per cent lower year-on-year), and imports reach $260,000.

Bình Định’s exports to the UK market mainly include seafood, wooden products, textiles and garments, and plastic products. Meanwhile, imports are mainly fabrics and materials for textiles, among others.

Ngô Văn Tổng, director of the province’s Department of Industry and Trade, told Việt Nam News that Bình Định has been utilising free trade agreements between Việt Nam and other markets, allowing export turnover in 2016 to 2020 to see an average annual growth rate of 9.5 per cent, and is estimated to reach 13 per cent annually for 2021 – 2023.

“From 2018 to 2022, new-generation free trade agreements such as UKVFTA and CPTPP have created many opportunities for exporters,” Tổng said.

The province exports to 128 countries and territories around the world, and the number of exporting businesses has been rising over the years, gradually expanding their markets and securing their positions overseas.

Businesses are focusing on improving their adherence to free trade agreements’ regulations on origin, quality standards, and responsibilities to society and the environment, as well as utilising e-commerce platforms.

They are also overcoming barriers to trade in several international markets to increase their exports and market penetration.

Over the past few years, the Department has been focusing on raising awareness of Việt Nam’s free trade agreements, such as UKVFTA, EVFTA and CPTPP, and helping businesses make use of them to expand their export markets. It has been advising the provincial People’s Committee to issue plans on facilitating the utilisation of these FTAs.

Under the plans, it works with the province to organise conferences and seminars to inform local businesses of new-generation FTAs and overseas markets, as well as instructions on rules of origin, tariffs and customs.

For example, in June, the department worked with the Việt Nam Chamber of Commerce and Industry’s Đà Nẵng branch to organise a training conference in Quy Nhơn to help businesses and state workers from local departments gain a better understanding of the FTAs, including tariff reduction commitments, methods and formulas for rules of origin, and how businesses can look up tariffs for their export products online.

The department’s website also contains information about Việt Nam’s FTAs and helps local businesses stay updated on markets and trade opportunities.

In addition to bringing attention to the FTAs, the department has launched many solutions to help businesses improve their competitiveness overseas, such as solving difficulties hindering production and exports, and warning businesses of safeguard policies from other countries. By keeping a close eye on these export markets, it has been also able to guide businesses in finding export partners.

“The Department of Industry and Trade stays up-to-date and provides instructions on issues related to free trade agreements that Việt Nam partakes to departments in the province, districts and cities, business associations, and firms,” Tổng said.

The department has been carrying out a programme to develop the province’s export goods to 2025 and a “Promoting Vietnamese Businesses to Participate in Foreign Distribution Networks until 2030” programme in Bình Định, as well as the Government’s Decree 93/NQ-CP (July 5 2023) on enhancing international economic integration and fast and sustainable economic development in 2023 – 2030 in the province.

Every month, it also invites localities, departments and local businesses to partake in the Ministry of Industry and Trade’s conferences with the Vietnamese Trade Office in other countries to study new markets, facilitate trade and help businesses connect with foreign partners.

Tổng added that local businesses need to continue to focus on developing their production to make high quality goods for export.

“They need to invest in new technologies and equipment, expand their production scale, and improve their product’s value and competitiveness, in order to meet requirements on quality, food safety and demands of export markets. Joining international e-commerce platforms is also important.”

Bình Định’s key exports include wood and wooden products, agricultural goods, seafood, textiles and garments. Its export turnover in the first nine months of the year reached over $1.1 billion, 72.2 per cent of its 2023 target.

Quang Ninh, Hokkaido boost culture, tourism, agriculture links

A thematic seminar on culture-tourism exchange and human resources development between the northern province of Quang Ninh and Japan’s Hokkaido prefecture was held on November 17, as part of the Hokkaido Festival 2023 in Ha Long city.

Vice Chairwoman of the provincial People’s Committee Nguyen Thi Hanh said about 12,300 Japanese tourists arrived in Quang Ninh this year, or about 1.5% of the total foreign arrivals in the province.

She wished that in the coming time, the two localities would strengthen their cooperation in popularising destinations through various media channels, exchange of delegations, especially famtrips and roadshows. She suggested considering the launch of air routes through Van Don international airport and new Chitose airport.

Hanh hoped that the Hokkaido authorities will soon send Japanese lecturers and volunteers to Ha Long University, toward building a faculty of Japanese studies there.

Discussions at the event focused on the current situation and solutions to enhance cooperation, develop tourism and human resources between both sides.

They also shared their experience and insights about the localities they have visited, providing vivid and realistic perspectives on the land, culture, and people of both Japan and Vietnam.

The same day, a seminar on green agricultural growth was also held in the province.

The provincial authorities proposed the Vietnamese Ministry of Agriculture and Rural Development and the Japanese Ministry of Agriculture, Forestry and Fisheries consider Quang Ninh a hub for cooperation in aquaculture and the processing of agro-aquatic products for export, toward becoming an exemplary collaboration between the two ministries.

Vietnamese Minister of Agriculture and Rural Development Le Minh Hoan said green and ecological agriculture involve the comprehensive application of processes and technologies, efficient and economical use of input materials for agricultural production, and effective use of natural resources without causing adverse effects on the environment and human health.

He also called for changing the mindset from agricultural production to agricultural economy, focusing on enhancing value, efficiency and diversification according to the value chain that aligns with market requirements.

Binh Duong leaders hold dialogue with Korean enterprises

The People's Committee of the southern province of Binh Duong on November 17 held a dialogue with representatives of Korean businesses in the locality. 

The dialogue was co-chaired by the Secretary of the provincial Party Committee Nguyen Van Loi, Consul General of the Republic of Korea (RoK) in Ho Chi Minh City Shin Choong Il, and Chairman of the RoK Business Association in Binh Duong Kim Jin Woo and other provincial leaders.

At the event, representatives of Korean businesses raised ideas about issues, including power supply for production, tax refund procedures, customs, environmental inspection, fire prevention and fighting, and construction permits.

They also complained that many administrative procedures and processes are causing difficulties for businesses, for example, immigration procedures and direct fee payment.

Representatives from provincial departments and agencies cleared up issues raised by the Korean businesses.

On this occasion, Nguyen Van Loi, Secretary of the provincial Party Committee, thanked Korean businesses for coming to Vietnam and Binh Duong and contributing greatly to the province's economic development.

Through the dialogue, the provincial leaders and investors can better understand each other, build trust, and solve problems to support businesses in promoting production and business, he said.

The official requested the provincial People's Committee and relevant departments to increase guidance and support for businesses to complete legal procedures and resolve pending issues. 

In the first 10 months of this year, Binh Duong province attracted nearly 1.35 billion USD poured into 108 new projects, 36 projects increasing capital, and 116 projects with capital contributions and share purchases. 

By the end of October 2023, the province had lured 4,192 valid investment projects from 65 countries and territories with total registered capital of more than 40 billion USD. Among them, the RoK ranks second in the number of projects with 769 projects and total investment capital of 3.3 billion USD.

“Meet Bac Ninh – Japan” programme held

A programme entitled “Meet Bac Ninh – Japan” was organised in the northern province of Bac Ninh on November 17, on the occasion of the 50th founding anniversary of Vietnam-Japan diplomatic ties.

Speaking at the event, Secretary of the provincial Party Committee Nguyen Anh Tuan said among 39 countries and territories investing in the province, Japan has invested in 100 FDI projects, mostly in the fields of electronic component manufacturing and mechanical engineering, with combined registered capital of over 1.67 billion USD, or nearly 7% of the total.

Japan has strengths in high-tech industries, especially in information and communication technology, digital technology, nanotechnology, biotechnology, new materials, and more, which are the fields Bac Ninh are calling for investment to develop itself into a hub for industrial and hi-tech development, he said.

Anh expressed his wish that the Japanese Embassy in Vietnam and the Japan External Trade Organiưation (JETRO) would continue providing Japanese firms with information about the local business environment. He also suggested participating Japanese firms introduce more domestic investors to Bac Ninh province.

At the event, leaders and representatives from departments and agencies introduced the province's potential, strengths and future investment directions. They also talked about the current operations of enterprises in industrial zones and those from Japan in particular, and answered questions regarding electricity supply for production, support for Japanese small firms and high-quality workforce.

Leaders of the Japanese firms affirmed that with its favourable location and attractive business environment, Bac Ninh is their priority manufacturing destination.

On this occasion, IOZ Company, a subsidiary of Moriga Company, donated 500 software accounts for management of drivers with alcohol concentration and 20 alcohol concentration measuring devices to Bac Ninh.

A Memorandum of Understanding (MoU) on cooperation was also signed between the provincial People's Committee and Nihon Toyo Group of Japan.

An interim executive board of the Vietnam-Japan Friendship Association of Bac Ninh province made its debut, and an MoU on cooperation between the Vietnamese Association in the Kansai region and the provincial Vietnam-Japan Friendship Association was also inked.

HCM City, European partners further promote economic cooperation

Ho Chi Minh City and European partners will continue to study and implement cooperation in the fields of economy, commerce, and investment effectively.

Leaders of the municipal People’s Committee and Ambassadors of European Union (EU) member nations to Vietnam reached the agreement at their meeting in HCM City on November 17.

Vice Chairman of the HCM City People’s Committee Vo Van Hoan emphasised that the EU is one of the most important partners of the city. HCM City treasures and highly evaluated the EU member states’ support to the city's construction and development process, particularly in green transition.

He expressed his wish that the EU will continue to support development projects in Vietnam, particularly HCM City.

It hopes to strengthen cooperation with European partners in areas in which they have strengths and the city has demand for such as green transition, digital transformation, climate change adaptation, innovation, and startup.

Hoan pledged that the city will do its best to ensure a stable socio-political environment, ensure legitimate rights and interests of investors, and create favourable conditions for foreign businesses, including European enterprises, to operate stably, effectively and for the long-term in the city.

For his part, Ambassador Julien Guerrier, Head of the EU Delegation to Vietnam, affirmed that the EU always attaches importance to its relations with Vietnam, especially in cooperation and assistance to transport infrastructure development, healthcare, education, and climate change response.

The EU member states appreciated HCM City’s economic potential and want to strengthen cooperation with the city across the fields of economy, commerce, and investment, he said.

President proposes three major orientations for effective implementation of IPEF

Vietnamese President Vo Van Thuong has put forth three major orientations for the effective implementation of the Indo-Pacific Economic Framework for Prosperity (IPEF) while delivering a speech at a meeting of leaders of IPEF partner nations.

The Vietnamese President's recommendations were highly evaluated and supported by leaders at the meeting held as part of the APEC Economic Leaders' Week in San Francisco, the US, on November 16 (local time).

President Thuong said that the IPEF is a concerted effort to enhance cooperation and coordination among economies as the world is facing numerous intertwined changes, opportunities and challenges.

The IPEF is expected to become a model of dynamic and efficient economic connectivity, bringing practical benefits to the people, and contributing to peace, stability, and prosperity in the region and the world, he said.

He acknowledged that trade ministers had agreed on important premises for cooperation based on the principles of equality, mutual benefit, inclusiveness, adherence to international law, and respect for the political institutions of each country.

For IPEF to be truly effective, the President put forth three major orientations for the implementation in the coming time.

First, the IPEF needs to be an open, inclusive, with a non-discriminatory cooperation mechanism, one that would support the rules-based multilateral trading system. It should welcome the participation of countries within and outside the region, and complements and supplements other regional economic connectivity initiatives.

Second, cooperation within the IPEF should meet the development needs of each party, balance the interests of all parties, respect and take into account the differences and particular characteristics of each country, and focus on technical support and capacity building.

Third, it should encourage new investment in building infrastructure, transition to clean energy, and high-tech industrial production in the region.

Concluding the meeting, the leaders adopted the Leaders’ Statement on the IPEF.

Ginger exports record sharp increase on rising global demand

The first nine months of the year saw Vietnam earn US$26 million from ginger exports, three times the figure recorded in the same period last year, the Vietnam Fruit and Vegetables Association has reported.

Accordingly, Vietnamese ginger is hugely popular among consumers in many nations worldwide, including Australia, India, Pakistan, and European countries.

Currently, Vietnamese frozen ginger is not only sold in supermarkets and shops in Australia, but can also be purchased online.

The price of Vietnamese frozen ginger in Australia stands between AUD9 and AUD13 per kg. Indeed, the product is typically packaged in half kilogram or one kilogram packages and is mainly for restaurants.

Local ginger exporters said that in the remaining months of the year, orders of the products from key markets such as the United States, India, the UAE, and Pakistan have increased significantly, prompting the price of the products to hit a record high.

Local gardeners are selling ginger at a price of between US$0.82 and US$1.07 per kg depending on the types.

Meanwhile, the price of ginger that meets export standards is up to US$1.23 per kg.

According to Vietnamese trade offices in Australia and India, the potential for Vietnam’s ginger exports to these markets remains very huge.

Moreover, its fragrant and delicious flavours, coupled with the price of the product locally, makes it competitive compared to other countries.

Seminar seeks ways to develop human resources experts for FTA implementation

A seminar on developing human resources experts for efficient implementation of free trade agreements (FTAs) has been held in Hanoi by the Cong Thuong magazine of the Ministry of Industry and Trade (MoIT).

Many participants said Vietnam is in dire need of qualified personnel to implement new generation FTAs.

According to them, FTAs have contributed to promoting Vietnam's institutional and policy reform, creating motivation for innovation and improving the competitiveness of Vietnamese goods and businesses. However, human resources, especially FTA implementation experts, are still very limited and do not meet the requirements.

Le Thi Hang, Deputy General Director of the Detech Coffee Joint Stock Company, said that with FTAs, her company has faced difficulties in finding experts to train the staff of the import-export department.

Currently, our company is looking for experienced experts in FTAs to advise the staff on risk management measures, especially FTAs relating to regulations on labour, environment and intellectual property, she said.

Nguyen Thi Lan Phuong, deputy head of the WTO and FTA Department, Multilateral Trade Policy Department of the Ministry of Industry and Trade (MoIT), said that Vietnam has been implementing 15 FTAs. Among them are three new-generation FTAs, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam - EU Free Trade Agreement (EVFTA) and the Vietnam - United Kingdom Free Trade Agreement (UKVFTA).

These FTAs include not only traditional fields but also non-traditional fields such as labour, environment and intellectual property. Therefore, commitment content is relatively complex and has many high standards, requiring the human resources team to have a deep understanding of commitment content to help management agencies and businesses at the local level understand FTA commitments properly and fully implement the commitments.

Phuong stressed that currently, based on the Prime Minister's direction, the MoIT is assigned to proactively work with relevant ministries and branches to develop training programmes as well as guide State management agencies and businesses to better take advantage of FTAs.

In the coming time, the MoIT will firmly implement work towards building better human resources for Vietnam in the immediate and long term to take advantage of FTAs, she added.

Statistics showed that the Government, ministries, branches, localities, associations and businesses have made great efforts to work together to improve the effectiveness of implementing these FTAs. However, the utilisation rate of these FTAs is still relatively limited.

For FTAs with good results such as EVFTA, the utilisation rate is only about 26% and FTAs like CPTPP are only achieved at 5%. These are modest numbers compared to the space and opportunities these FTAs offer, according to Phuong.

In the immediate future, the MoIT is currently coordinating with its Central School of Industry and Trade Training to develop a framework of training documents for FTA experts in efforts to build training materials for exporters and importers supporting sustainable development.

In 2023, based on a survey of the needs of provinces and cities, the MoIT will also initially pilot training the first expert classes to be able to provide human resources immediately for provinces, cities and consultants to support businesses.

In the long term, the MoIT will conduct a survey of businesses with import and export activities in markets, especially FTA markets. The ministry will also carry out a pilot project with a number of universities that have majors in economics and especially international trade to jointly consider and review the training content in the schools.

At the recent meeting of the Steering Committee for International Economic Integration, Deputy Prime Minister Tran Hong Ha also requested to strengthen consultations for the business community and industry associations during the process of implementing commitments to international economic integration and FTAs implementation.

Digital transformation critical for fund industry to tap potential

Accelerating digital transformation is critical for the fund industry to tap the market potential and expand operations in Việt Nam, experts said.

Dương Văn Thanh, general director of Việt Nam Security Depository and Clearing Corporation (VDSC), said that the fund industry was gradually improving after a turbulent 2022 and is expected to develop in the coming years.

As of November, many recorded higher business growth than the market average, such as VinaCapital – VESAP, SISCA, VCBF-MGF, DCDS, DCBC reporting growth of more than 30 per cent. The number of funds also saw increases, especially open funds.

He cited statistics that VDSC was currently providing transfer agency services for 53 open funds, 12 funds higher than the end of 2022, including 25 stock investment funds, 23 bond investment and 5 balanced funds. Besides, VDSC provides services for 13 exchange-traded funds (ETFs) and 3 closed-end funds.

“VDSC expects that the fund industry will not only increase in quantity but also in quality in the coming time. Products related to the fund industry would be more abundant to bring greater efficiency to investors,” Thanh said.

Regarding the voluntary supplementary pension fund, VDSC provides personal retirement account management services for 8 funds of 4 fund management companies. The total number of individual retirement accounts increased sharply from 1,699 at the end of 2022 to 21,971 by the end of October 2023.

VDSC would expand services for voluntary supplementary pension funds in 2024, forecasting a significant increase in the number of accounts in this segment.

Giang Trung Kiên, deputy director of MBCapital, said that the fund industry was having a great opportunity to develop, given the sharp increases in the number of individual investors participating in the stock market in recent years, the rising proportion of demand deposit or current account savings account (CASA) and record-low short-term deposit interest rates, which made financial products such as Money Market Fund more attractive for idle cash flow.

Trương Diệu Linh from Vietcombank said that the fund industry would need to diversify investment products, besides traditional stock investment funds, towards others such as real estate investment funds, pension funds, technology funds, venture capital funds, green bond funds, and ESG funds.

Besides, it was necessary to enhance communications to increase awareness of the public and investors about the operation of the fund industry and the investment in fund certificates.

She also urged the State Securities Commission, the State Bank of Việt Nam (SBV), and VDSC to increase the management and supervision of the market to prevent violations.

In addition, fund management companies should strengthen the application of technology in the management of operation to improve efficiency and reduce risks, she said.

According to Phí Tuấn Thành, director general of Techcom Capital, the total asset value managed by fund investment companies in Việt Nam was estimated at US$23.25 billion, or 2.44 per cent of GDP, still lower than some other countries in ASEAN such as Thailand and Malaysia with rates of around 30 per cent.

Only around 1 per cent of stock investors had fund certificate accounts, with just 1 per cent of their net asset value invested in funds.

One of the reasons was that investors’ awareness and understanding of investing through funds remained limited. Investment products and services of funds were not yet developed or suitable for investors, especially through digital channels, he pointed out.

“The application of new technologies is necessary for the fund industry to fully exploit the largely untapped potential,” Thành said, stressing that digital transformation was an inevitable trend. “Digital transformation will help raise investor awareness, consolidate confidence, develop fund investment products and services towards customers’ demands and improve fund's operation efficiency.”

The focus should be on improving the business environment to create a favourable legal framework for the application of digital technologies in the fund management industry, Thành said, urging fund management companies to build human resources to implement technology solutions.

Đoàn Duy, in charge of digital transformation business at Dragon Capital, said that customers of fund management companies tended to be younger, more diverse, and more active in researching and comparing products online and wanted everything to be done online, such as online KYC and online order placement.

“Technology has changed perspectives. Digital transformation is the direction for the fund industry,” Duy said.

Stressing the large potential for the development of the fund industry, Lương Hải Sinh, Deputy Chairman of the State Security Commission, cited statistics that the total net asset value of stock investment funds accounted for just a modest proportion in GDP, with 250,000 investors or 0.24 per cent of the country’s population, lower than Thailand and Malaysia.

Sinh urged funds to speed up the application of digital technologies in operation and business, adding that the State Securities Commission would focus on four pillars to promote the development of the securities market and fund industry.

The first pillar was to develop quality products in the stock market and improve market structure with a full range of financial investment products.

The second was to build a transparent public trading market towards sustainable development.

The third pillar was to develop intermediary organisations and securities trading organisations to be professional and effective following international practices. The final pillar was to diversify investors, with a focus on developing professional stock investors.

Specially, the State Securities Commission would make an effort to upgrade the market, and attract foreign capital into the stock market to develop the economy, which would also promote the development of the fund industry.

Sustainable development opens up many opportunities for businesses, investors

Implementing green growth and sustainable development goals is a challenge but also an opportunity for the business community and investors in Vietnam, participants heard at a conference on November 16.

With the theme "Taking Responsibility, Taking Action", the sustainable development conference was organised by the Investment Review. It aims to bring multi-dimensional perspectives on responsibility and action for Vietnam to build a green economy, realising the net zero goal by 2050.

The event took place two years after the UN Climate Change Conference (COP26), where 197 countries participating in the United Nations Framework Convention on Climate Change adopted a historic agreement. The agreement reaffirmed maintaining the goal of limiting global temperature rise to 1.5 degrees Celsius above pre-industrial levels and countries including Vietnam have committed to bringing net emissions to zero by 2050.

Speaking at the event, Deputy Minister of the Ministry of Planning and Investment Tran Quoc Phuong said that sustainable development had become an overarching trend in the world.

“Green growth and sustainable development have a close relationship with each other, being both a viewpoint and a goal throughout the socio-economic development policies of the Party and State, as shown in the 10-year socio-economic development strategy and 5-year socio-economic development plans of Vietnam, in which green growth is an important method to implement sustainable development,” said Phuong.

He said that Vietnam faced a number of difficulties and challenges due to the rapid urbanisation process, creating great pressure on the need for infrastructure development and environmental pollution treatment. In addition, there are challenges of natural disasters, climate change and the effective and sustainable exploitation and use of water, natural resources and land.

“Implementing green growth and sustainable development goals will be both a challenge and an opportunity for the business community and investors,” he stressed.

Phuong also proposed a number of key solutions to promote and transform the implementation of sustainable development goals in the coming time.

“It is necessary to perfect and improve the quality of socialist-oriented market economy institutions; Enhance the efficiency and effectiveness of policy implementation through public administration reform and continue to promote the participation of disadvantaged groups in the decision-making process,” he stated.

At the same time, the Deputy Minister also emphasised the need to continue to prioritise investment in human resource development, science and technology, innovation and improvement of the economic infrastructure system to improve productivity and promote sustainable economic growth.

Solutions also need to focus on effective management and use of resources, strengthen environmental protection and response to climate change, prevent, combat and mitigate natural disasters; and promote the development of green economy and circular economy.

Le Trong Minh, editor-in-chief of Investment Review, highlighted sustainable development as an important task for Vietnam, a developing economy, and also one of the five countries most heavily affected by climate change.

As a developing country, Minh said, there were still many difficulties but Vietnam had made commitments to respond to climate change like developed countries. Therefore, Vietnam would need appropriate steps and roadmaps as well as support and assistance from developed countries and partners in terms of capital, human resource training, institution building, technology, and governance.

At the same time, Vietnam also needed a business community with a high awareness of responsibility and proactive action, even when facing great difficulties and challenges in terms of financial and human resources. That’s the goal that the newspaper organised the conference, with discussions on responsibilities and actions from relevant parties to realise sustainable development goals, according to Minh.

The event was an opportunity for policymakers, representatives of management agencies, international organisations, economic experts and the business community to discuss multi-dimensional perspectives on responsibility and action for Vietnam to build a green economy and realise the net zero goal by 2050.

The conference also heard economic experts and business leaders sharing their efforts in implementing sustainable development and responding to climate change and proposed recommendations on sustainable development and perfecting the green transformation strategy of businesses in Vietnam.

Petrovietnam subsidiaries expect great benefits from Lac Da Vang field

The Lac Da Vang oil field of Vietnam, with a total investment of nearly 700 million USD, has received the final investment decision (FID), expected to generate considerable work for the Petrovietnam Technical Services Corporation (PTSC) and the Petrovietnam Drilling and Well Services Corporation (PV Drilling) in the coming time.

Murphy Oil Corporation, an oil exploration and production company of the US, on November 3 made the FID for Lac Da Vang, and it looks to gain the first commercial oil from this field in 2026. In July 2023, the field development plan was approved with investment totalling 693 million USD.

Lac Da Vang is hoped to create a new source of work for many oil and gas businesses of Vietnam, of whom the PTSC and PV Drilling, members of the Vietnam Oil and Gas Group (Petrovietnam), are likely to benefit the most.

The PTSC is bidding for building a central processing platform and a well head platform with the contracts’ total value of 283 million USD. It plans to start building the two platforms from 2024 - 2026.

Many financial institutions perceived that with its experience and capacity proved through a number of domestic and foreign projects, the PTSC may win these contracts.

The Vietcap Securities JSC forecast the PTSC will be granted the two contracts at the end of this year or the first quarter of 2024 at the latest. With these contracts, Lac Da Vang may contribute 11 million USD to PTSC’s total profit between 2024 and 2028, equivalent to 3% of the firm’s net profit during the period.

Besides, the PTSC is also bidding for a contract on leasing out a floating production, storage and offloading (FPSO) which is scheduled to be rent out from 2026 when Lac Da Vang is officially put into commercial operation. This will be a potential source of profit for the PTSC from 2027, according to Vietcap.

Meanwhile, Murphy Oil is also surveying the market to seek a supplier of a jackup rig to drill eight wells at the Lac Da Vang field in 800 days. PV Drilling, the leading company in Vietnam in terms of drilling services for oil exploration and production at present, is set to bid for this project, but details haven’t been revealed.

Vietcap predicted that if PV Drilling wins the bidding, drilling will start in 2026 under the 294 million USD contract, equivalent to PV Drilling’s revenue in a year at persent.

Financial institutions held that the FID for the Lac Da Vang field is good news for domestic oil exploration and production next year and beyond.

Domestic exploration and production activities are expected to enter a new development period from 2024 thanks to a number of large projects such as the chain of Block B - O Mon power and gas projects, the Lac Da Vang field, and the third phase of the Dai Hung oil and gas field.

Lac Da Vang, part of Block 15/1-05 in Vietnam’s Cuu Long Basin, has an approved output of 20,000 - 25,000 barrels per day, equivalent to 10 - 12% of the country’s oil production at present. Its break-even price is estimated at around 65 USD per barrel, 23% lower than the current Brent crude oil price.

Currently, Murphy Oil is holding a 40% working interest in the Lac Da Vang field as the project operator, the Petrovietnam Exploration Production Corporation (PVEP) 35%, and SK Energy of the Republic of Korea 25%.

Aside from Block 15-1/05 and Block 15-2/17 in Cuu Long Basin, the US business is also operating two exploration projects in Block 144 and Block 145 in Phu Khanh Basin of Vietnam.

HCM City calls for US investment in sustainable economy, technology

Officials of Ho Chi Minh City had a meeting with US enterprises in San Francisco city on November 16 (local time) to call for investment in green growth and high technology in the southern economic hub of Vietnam.

The event, held within the framework of Vietnamese President Vo Van Thuong’s trip to attend the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Week in San Francisco, attracted nearly 30 major US enterprises operating in such fields as energy, infrastructure, information technology, finance, and innovation.

Chairman of the HCM City People’s Committee Phan Van Mai stressed that his city is aware of its pioneering role in implementing cooperation activities, with a focus on developing high technology, the semiconductor industry, the digital economy, and the green economy.

He informed US firms about HCM City’s green growth and sustainable development strategy, including a green growth strategic framework until 2030 with a vision to 2050 that puts local people and businesses at the centre of transition.

David Lewis, Chairman and CEO of Energy Capital Vietnam, which was founded in 2017 by a group of experienced investors and experts in energy and infrastructure, pledged that his company will invest in innovation and green energy in the time ahead.

Patrick Sweeney, Vice President at Business Executives for National Security (BENS), said many member enterprises of BENS wish to invest in the fields of technology, aerospace, defence, finance, healthcare, and energy in HCM City.

At an investment promotion conference held by the HCM City delegation later on November 16, US Ambassador to Vietnam Marc Knapper highlighted the favourable conditions in HCM City’s investment climate and called on US enterprises to invest more strongly in the city.

Four memoranda of understanding (MoU) and two letters of intent were signed and handed over between enterprises at the event to step up green growth and high technology projects.

Quang Ninh lures additional 80 million USD from Japan

An investment promotion conference themed “Contributing to the sustainable development of Vietnam-Japan” to boost investment cooperation between the Vietnamese northern province of Quang Ninh and Japan’s Hokkaido prefecture was held in Quang Ninh  on November 17.

At the conference, provincial leaders granted investment registration certificates for several Japanese foreign direct investment (FDI) projects with a total investment capital of over 80 million USD.

Acting Chairman of Quang Ninh provincial People's Committee Cao Tuong Huy affirmed that the combination between the province’s potential and the strength and experience of Japanese investors is expected to create a solid foundation for success.

 Welcoming ceremony for the Japanese delegation at Van Don international airport, Quang Ninh (Photo: VNA)
The event was held on the occasion of the Hokkaido delegation attending the Hokkaido Festival 2023 in Ha Long and among activities celebrating the 50th anniversary of Vietnam-Japan diplomatic ties and the 60th anniversary of the establishment of Quang Ninh province.

Currently, Japan is a strategic investor of Quang Ninh with 12 projects valued at nearly 2.4 billion USD, ranking third among foreign investors in the province. In terms of trade, Japan is the second largest importer of Quang Ninh.

Vietnam attends Taiwan Food, Coffee, Tea & Wine Expo 2023

As many as 20 Vietnamese enterprises are showcasing their range of products at the Taiwan Food, Coffee, Tea & Wine Expo 2023, according to a representative of the Vietnam Trade Promotion Agency (VIETTRADE).

The presence of several renowned Vietnamese brands in the expo is part of the programme on building brand strategies for the food industry in general, as well as the local tea and coffee industry in particular, said the VIETTRADE representative.
  
The main goal of the scheme is to build and promote a common and unified image for the Vietnamese food industry within the international market, increase awareness and recognition of Vietnamese food, build a reputation for quality and value of Vietnamese food, with a specific focus on tea and coffee.

It also aims to optimise added value for food production and processing in Vietnam, along with promoting the export of Vietnamese food products.

According to the VIETTRADE representative, on display at the expo are potential products which Vietnam boasts strengths in to promote exports to Asian markets.

This year’s expo has attracted the participation of 1,500 booths from 800 international enterprises. It is scheduled to last until November 20.

Vietnamese agriculture items become premium consumer products in US

Journalist Douglas Yu of US business magazine Forbes recently published an article affirming that Vietnamese agriculture has become a new frontier for premium consumer products in the US.

According to the journalist, a favourable tropical climate all year round, an abundance of natural resources, and local authorities’ prioritisation of sustainable farming practices are factors helping Vietnam to become an increasingly popular destination for US manufacturers to source high-quality agricultural produce, ranging from rice, green coffee, cashew to walnuts.

He quoted statistics released by the Ministry of Agriculture and Rural Development (MARD) as saying that the domestic agricultural sector has experienced its highest growth, reaching 3.36% in 2022, compared to the past three years, thanks in part due to local government funding and incentives.

“According to Census Bureau, the U.S. is one of the top trading partners with the Southeast Asian country, and has recently surpassed China and Cambodia to become Vietnam’s largest business associate in the agricultural industry with an export turnover of US$10.8 billion,” he wrote.

To understand how Vietnamese products have become the new premium for US consumers, the journalist mentioned the recent rise of Vietnamese coffee as exemplified by Nguyen Coffee Supply, as well as the expansion of the nation’s Trung Nguyen Legend as it opened its first US location in the heart of Little Saigon in Westminster of California.

He also quoted Nguyen Nam Hai, chairman of the Vietnamese Coffee and Cocoa Association, as saying that sustainability plays a major role in driving interest in growing more robusta beans, with the country accounting for more than half of the global robusta supply.

Yu outlined that robusta coffee serves as a quintessential part of Vietnamese culture and social life to a degree that international coffee behemoths are scrambling to compete domestically.

According to the journalist, typical US consumer interest in Vietnamese coffee is also heating up, as evidenced in Nguyen Coffee Supply’s 1,100% annual growth in retail distribution across Whole Foods Market (WFM) and other regional independent stores, as well as several new entries to the market such as Sang and Nam Coffee.

He stressed that a cost-efficient labour market and close ties with the US are also serving to lure American CPG operators to increasingly capitalise on the benefits of the Vietnamese market.

“When we went to Vietnam and spoke to the local people, they seem to really love the idea of working with Americans, and it was such a two-way street of gratitude,” the article quoted Dominic Purpura, founder and CEO of Mela, a rapidly growing premium watermelon juice brand.

Yu went on to reveal that Anthony Cadieux II, who cofounded ultra-premium coconut water company CoAqua with Justin Bruckel, said that the waterways of the Mekong Delta in Vietnam are exactly what his company needs.

“In my opinion, Vietnam has become a source of premium ingredients due to the country’s emphasis on sustainable farming practices,” Cadieux said.

“What also stands out is the pride the Vietnamese people take in producing the highest quality fruits, vegetables, and other agricultural products,” he added.

Ho Chi Minh City forum seeks to develop green logistics for trade boost

Green logistics is considered one of the inevitable trends and needs to form sustainable agricultural and pharmaceutical supply chains, contributing to reducing greenhouse gas emissions.
 
The view was shared by Vietnamese and Australian experts at a green logistics forum held in Ho Chi Minh City on November 17.

Addressing the forum, Le Duy Hiep, president of the Vietnam Logistics Business Association (VLA), noted that Vietnam and Australia were among nearly 150 countries that committed to bringing greenhouse gas emissions to zero by 2050 at the 26th UN Conference on Climate Change (COP26) in Scotland in 2021.

This requires both countries to promote green transformation in the logistics industry to support trade, especially for importing and exporting agricultural products and pharmaceuticals, which bring in large turnover in two-way trade between Vietnam and Australia, he said.

According to the VLA president, the development of the logistics system helps not only to ensure safety and efficiency in transportation but also to promote the growth of agricultural and pharmaceutical products in the markets of both countries.

Taking the floor, Cherie Anne Russell, development counselor at the Australian Embassy in Vietnam, said that Australia is keen to boost cooperation with Vietnam in agriculture and the pharmaceuticals industry that are developing strongly thanks to people’s increasing income and high economic growth.

Logistics, therefore, plays an important role in forming the import-export supply chain to promote trade and investment between Vietnam and Australia, said Russell, stressing green logistics is considered a future trend that reflects the positive responsibility of businesses and improves competitiveness.

Meanwhile, Assoc. Prof. Dr. Ho Thi Thu Hoa, director of the Vietnam Logistics Research and Development Institute (VLI), pointed out Vietnamese agricultural exports to Australia recorded an average growth rate of 11% per annum in the 2018 – 2022 period. Some fruits such as mango, dragon fruit and longan have gained a firm foothold in the Australian market. In 2022 alone, a large amount of agricultural products including rice, pepper, coffee and cashew nuts were exported to this market, with the average export growth rate reaching 6.8%.

However, Hoa stated that businesses also encounter difficulties in shipping products to Australia, including high transport costs and strict delivery policies.

To improve export performance, she suggested that businesses strengthen quality control, and promote digital transformation in agriculture. In addition, she said it is imperative to improve logistics infrastructure, and enhance environmentally friendly transportation and connections between organizations to promote the development of green logistics for agricultural products in Vietnam.

Experts pointed out challenges to the shift to green logistics, including huge investment in infrastructure and technology, but stressed green logistics is an indispensable requirement to complete the green supply chain from production to consumption. They suggested that Vietnam optimize performance and production, consider the use of green energy vehicles, and build a roadmap for a greener future, taking into account the country’s actual conditions.

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