It has also optimised opportunities to promote emerging industries like semiconductor, AI, digital transformation, clean energy, green growth, circular economy and sharing economy, which are expected to create growth momentum.

Attention has also been paid to streamlining administrative procedures, removing obstacles to production and business, carrying forward the role of the Government’s working groups, and settling petitions and suggestions by localities, people and businesses in an effective and timely manner.

Can Van Luc, chief economist at state lender BIDV and a member of the National Financial and Monetary Policy Advisory Council, told Lao dong (Labour) newspaper that the domestic consumption has been affected by the global consumption slowdown as people have tightened their purse strings after the COVID-19 pandemic.  

Given this, he suggested stimulating domestic demand, stressing a host of solutions taken by the Government such as reducing taxes and fees and extending payment deadlines, lowering loan interest rates, and supporting production and business activities.

Regarding the growth target of 7-8% set for the next three years, he said, it requires domestic consumption to expand by 7%, export to rise 8.5% and total investment to increase 9%.

Nguyen Thi Viet Nga, a National Assembly deputy of the northern province of Hai Duong, pointed out that among the economic drivers, domestic consumption remains weak, which requires strong solutions to stay brisk.

To achieve the growth target of 6%, she suggested rolling out strong fiscal solutions, accelerating public investment disbursement, and flexibly combining fiscal and credit policies together.

SJC gold price skyrockets to VND70 million per tael on global market rally

After witnessing three consecutive days of increase, SJC gold price officially surpassed the VND70 million per tael mark on October 12 morning.

At 8:30 a.m. on October 12 the SJC gold price was traded at around VND69.35 million per tael for buying and VND70.5 million per tael for selling, representing an increase of VND200,000 compared from the previous day. Most notably, SJC gold bars were sold at VND70.7 million per tael.
  
According to analysts, domestic gold prices saw strong fluctuations due to the soaring price of gold in the global market.

Nguyen Ngoc Trong, director of NPJ New Partner Gold Company, attributed the global price surge to concerns surrounding the ongoing Israel-Hamas conflict, prompting investors to buy more.

Given the context, both buyers and sellers in Vietnam also hold high expectations that gold prices will keep rising in the coming days, Trong said.

In addition, a limited supply of SJC gold has also contributed to pushing up gold prices locally over recent days, Trong added.

Gold continues to be considered as a safe asset due to the escalating conflict in the Middle East. Krishan Gopaul, a senior analyst at the World Gold Council, pointed out that the absorption of gold purchases has remained as strong as ever since September, with central banks enjoying huge profits from buying gold.

Insiders predict that gold prices will rise in the near future, particularly as the US Federal Reserve (FED) may keep interest rates unchanged next month.

Credit growth expected to improve in remaining months

Thanks to drastic efforts by the Government, credit growth is expected to increase positively in the last months of this year, helping ease difficulties for businesses and propelling forward the development of the economy.

According to latest data from the State Bank of Vietnam (SBV), as of September 29, credit growth had reached 6.92% compared to the end of 2022, with strong rise seen in credit for some priority sectors.

SBV Deputy Governor Pham Thanh Ha said that in the first nine months of 2023, the Government and the Prime Minister held many conferences and meetings with ministries, sectors and associations, while the SBV also organised 12 conferences and meetings, and issued 11 documents directing the implementation of measures to enhance credit access for enterprises, sectors and areas.

The central bank also worked hard to seek ways to improve people and businesses’ capacity to absorb credit capital, he said, noting that there have been 63 bank-business connection conferences in localities to listen to opinions of businesses and people, and seek solutions to help them overcome difficulties, especially in accessing credit.

As a result, the whole economy’s credit reached nearly 12.75 quadrillion VND (523.39 billion USD) as of September 29, a rise of 6.92%.

Ha held that although credit growth was considerably lower than that in 2022 and the same period in previous years, there was an upturn trend in recent months. Particularly, credit growth in some priority areas is higher than average, he said.

Specifically, as of July 31, credit for supporting industry hit more than 335 trillion VND, accounting for 2.69% of the total, a rise of 13.47% over the end of 2022. Meanwhile, that for high-tech businesses was about 44.7 trillion VND, up 16.09%. Especially, credit for the poor and low-income earners also grew 8.19%.

The SBV Deputy Governor said that in order to provide businesses with better access to credit capital, the central bank has applied many measures since the beginning of the year such as reducing operating interest rates to create room for commercial banks to lower their interest rates, while encouraging digital transformation in the banking sector in order to help credit institutions to cut cost and reduce lending interest rates.

However, in reality, although interest rates have decreased, the rates have yet to meet the needs of many businesses, while lending interest rates have been cut more slowly than deposit interest rates. Since the beginning of the year, deposit interest rates in the market have decreased by 2% but lending interest rates have only dropped by 0.5%-1%.

Dao Minh Tu, SBV Permanent Deputy Governor said that along with efforts of the central bank, the continuous companionship of ministries, sectors and localities through synchronous solutions is crucial to remove difficulties for businesses, enabling them to thrive in a difficult economic context.

VN takes drastic measures to speed up public investment disbursement

Việt Nam is taking drastic measures to accelerate the disbursement of public investment in the remaining months, striving to fulfil the disbursement goal to create a driver for economic growth.

The Ministry of Finance’s statistics showed that more than VNĐ363 trillion (US$14.89 billion) was disbursed in January – September, or 51.38 per cent of the plan, higher than the disbursement rate registered in the same period last year at 46.7 per cent. In terms of value, the disbursed sum was more than VNĐ110 trillion higher.

The Vietnamese Government always considered public investment disbursement to be among key solutions to achieve the economic growth target in the short term and to develop a modern and synchronous infrastructure system to improve the competitiveness of the economy and attract investments in sustainable development.

However, the disbursement rates remained disappointing in many ministries, agencies and localities with more than 30 reporting rates of below 30 per cent, leaving a huge workload in the last quarter to achieve the target of disbursing at least 95 per cent out of VNĐ711 trillion public investment.

In that context, localities were taking drastic measures to achieve the goals.

Cao Tường Huy, acting chairman of the People’s Committee of Quảng Ninh Province which reported the disbursement rate of 42.3 per cent as of the end of the third quarter, said that the northern province asked contractors to increase working time. Incompetent contractors would be replaced, he said.

The fourth quarter was expected to see better disbursement than the first three quarters, he said.

Phan Văn Mãi, chairman of HCM City People’s Committee, said that the southern city faced with difficulties in land clearance, which caused slowness in the disbursement of public investment.

Statistics of the finance ministry showed that nearly 300 projects in 57 provinces and cities reported disbursement rates of below 10 per cent. Especially, more than 100 projects had not managed to make any disbursement.

Localities with highest disbursement rates included Long An (68 per cent), Tiền Giang (61 per cent) and Đồng Tháp (55 per cent).

Meanwhile, Trà Vinh, Vĩnh Long, Sóc Trăng, An Giang and HCM City experienced the lowest disbursement rate. Particularly, the figure in HCM City was only 30 per cent due to bottlenecks in site clearance process.

The Ministry of Finance proposed the allocated public investment for these projects be cut if they failed to make disbursements before October 30.

Nguyễn Quốc Việt, deputy director of Việt Nam Institute for Economics and Policy Research, said that the lack of accountability and dare-to-do spirit was a major cause for slowness in public investment disbursement.

Other causes included bottlenecks in bidding procedures, investment procedures, handling of public assets and land auctioning, together with slow site clearance, and shortage of raw materials, Việt said.

Deputy Minister of Planning and Investment Trần Quốc Phương said that the key point to create a breakthrough for disbursement was to strengthen discipline in public investment.

Accordingly, ministries, agencies and localities needed to be proactive and timely in raising solutions to remove bottlenecks of each project, enhancing the responsibility of the heads in the disbursement rates as well as investment efficiency.

Nguyễn Thị Hương, general director of the General Statistics Office, said it was critical to improve the legal system regulating public-invested projects, from the preparation stage to hand-over, together with increasing the quality of preparations for the projects to ensure smooth implementation.

She stressed that the disbursement must go along with ensuring quality and efficiency of the public investment projects. The capital allocated for stagnant projects should be transferred to projects with good disbursements.

Strict punishments should be raised to handle violations or irresponsibility which caused slowness in public investment disbursement, Hương said.

A close watch must be placed on the supply, quality and prices of construction materials, she urged.

In addition, administrative reforms and application of information technology should be promoted to speed up the handling of public investment procedures.

Former Director of the General Statistics Office Nguyễn Bích Lâm said that if Việt Nam achieved the public investment disbursement rate of 95 per cent this year, the country’s economic growth would be 1.3 percentage points higher. 

Too many OCOP products cause brand confusion

Products in the One Commune One Product (OCOP) Programme have grown in number over the past few years, but so quickly that it has led to brand confusion among customers.

Nguyễn Trọng Nghĩa, director of Saigon Asset, said the number of OCOP products in the market had reached nearly 10,000, overwhelming customers with too many options, often overlapping ones.

He took green-skin pomelos as an example, which both Bến Tre Province and the Central Region had proclaimed as their "local speciality". Because the fruits are registered with two separate trademarks, customers can hardly tell the difference between them.

The director, therefore, called for a more meticulous selection process in the OCOP Programme to ensure each OCOP product is unique on its own and embodies the culture of its province of origin.

For hand-made OCOP products, he was against the idea of mass-producing them by machinery because automation, he believed, would ruin their artisanal uniqueness.

Deputy Minister of Agriculture and Rural Development Trần Thanh Nam said the OCOP Programme was initiated with the aim of improving the income of local producers, kickstarting the formation of production hubs, and increasing brand awareness for local products.

He also said the panel in charge of evaluating OCOP products consists of multiple agencies, including provincial departments of agriculture and rural development. The products will undergo periodic re-evaluation every three years to ensure they remain up-to-standard.

"If an OCOP product is losing its brand awareness, it is losing everything," said Nam.

The deputy minister also suggested the establishment of a team to examine the status of OCOP products periodically. Currently, a product recognised as OCOP can keep the status for up to 10 years, which Nam believed to be "too long".

Nguyễn Hoàng Anh, director general of Nam Miền Trung Group, underlined the role of the OCOP Programme in promoting Việt Nam's agricultural sector. He said the programme was gaining traction in the country because 65 per cent of its population lives in rural areas.

He urged the OCOP Steering Committee to raise the bar on OCOP products to prevent overlapping and loss of brand awareness. He also called for more trade promotion activities to help them gain ground commercially.

By August 2023, the number of OCOP products has reached 8,478, of which 65.4 per cent were awarded three stars, 33.4 per cent four stars, and 0.2 per cent five stars. OCOP producer status has been granted to 4,351 local facilities.

On the downside, 25 products have been stripped of OCOP status in Đồng Tháp Province. The number was nine for Cà Mau, seven for Lào Cai, and six for Sơn La. 

UKVFTA: a lever for trade cooperation among the UK and VN's five central cities

After more than two years of implementation, the UK-Việt Nam Free Trade Agreement (UKVFTA) has had positive effects on trade cooperation among the UK and Việt Nam's five central cities.

These five cities are HCM City, Hà Nội, Hải Phòng, Đà Nẵng and Cần Thơ.

Last year, the trade turnover among the UK and the above-mentioned cities reached over US$2.63 million. Of which, exports hit $1.59 million, up 3.5 per cent year-on-year while imports saw a yearly decrease of 1.3 per cent to $1.04 million.

The five cities' major export items to the UK included textiles and garments, footwear, bags, metalwork, minerals, and handicrafts.

Meanwhile, these cities mainly imported metallurgy, animal feed and raw materials, electronic and computer components, chemicals, and pharmaceuticals from the UK.

Reports from the five cities showed that the FTAs, including the UKFTA, have contributed to promoting the socio-economic development of these cities.

In the future, the world situation will continue to evolve rapidly and unpredictablely. Sustainable development has become an overarching trend in the world. At the same time, digital economy, circular economy, and green growth are development models chosen by many countries.

To exploit opportunities from the UKVFTA, the five cities said they will promote the dissemination of export market information and support exporting businesses.

They will facilitate administrative reform in the fields of investment, construction, land, taxes, customs, and import-export in accordance with commitments to international economic integration.

At the same time, they will also consider forming large raw material areas to meet production needs, limit imports of raw materials, and meet conditions of origin tracebility to take advantage of incentives.

Speeding up trade promotion activities, supporting businesses to advertise their products, find partners, and seek export opportunities will be included.

The five central cities will coordinate with the Ministry of Industry and Trade to closely monitor the export situation so that they can promptly support businesses to grasp new information about the market, import and export needs, and cooperation opportunities.

The UKVFTA was signed on December 29, 2020, and temporarily came into effect on December 31, 2020, before officially starting on May 1, 2021.

Negotiated based on the principles of inheriting commitments in the EU-Vietnam Free Trade Agreement, the deal facilitates commercial flows between the two countries through its almost across-the-board tariff cuts. 

Efficient routes at heart of robust goods transport

Vietnam’s ongoing endeavours to revamp and streamline its logistics network have heralded promising shifts in the economic landscape.
 
Vietnam has been going all-out to advance the quality of bridges, connecting roads, rail routes, and more, photo Le Toan
Vietnam Railways Corporation and Binh Duong Customs Department late last month launched international intermodal freight services, facilitating exports and imports from Song Than Station in Di An city to and from China.

The initiative promises to alleviate congestion associated with road transport, a pressing concern in Binh Duong, a southern province teeming with businesses engaged in substantial import-export activities.

Besides Binh Duong, other localities are also investing synchronously in transport infrastructure which is the key to reducing logistics costs. For instance, the northern province of Lao Cai on September 22 inaugurated the entire connecting road from Noi Bai-Lao Cai Highway to Sapa, which includes a segment passing through Mong Sen Overpass.

Nguyen Van Diep, deputy director of a transportation company, which is a local small business in car for rent, believed that the opening of several high-speed routes since the beginning of the year has been pivotal in accelerating goods transportation for businesses, consequently reducing logistics costs.

“Comparing the scenario before the introduction of the Dau Giay-Phan Thiet route, transportation of goods from Ho Chi Minh City to Binh Thuan province used to take approximately six hours. Now, with this new route, the time is halved,” Diep told VIR.

The Ministry of Transport (MoT) revealed that in the first half of 2023, a slew of expressways is now operational. They are crucial components of the north-south high-speed axis, the most important arterial road currently. The completion of 950km of the North-South Expressway is anticipated by 2025 or 2026, providing a seamless connection from Lang Son to Ca Mau.

Statistics from the MoT demonstrate a substantial decrease in logistics costs owing to these refined infrastructures. In 2022, logistics costs accounted for approximately 16.8 per cent of GDP, showing a significant reduction from around 21 per cent in 2018, although still elevated compared to the global average of 10.6 per cent.

As per the MoT, the scale of the logistics sector in Vietnam is currently around $60-70 billion per annum, with transportation activities constituting up to 60 per cent of this. In parallel, investments are being driven into rail transport and the refurbishment of key stations to facilitate direct goods export to China by rail.

Nguyen Quang Sang, director of Phuong Nam Goods and Services Trading Company, explained that this will provide businesses with more transport options.

“Rail transport has many advantages such as punctual schedules and no congestion at the border gates, especially for agricultural products which have short preservation periods and require quick transit times to meet the demands of customers in China through the northern border gates,” Sang said.

The government, with a vision steeped in precision and innovation, has envisioned a logistics sector that contributes 5-6 per cent to the GDP, flourishes at a growth rate of 15-20 per cent, and witnesses an outsourcing rate of logistics services at 50-60 per cent. It aims to mitigate logistics costs to an equivalent of 16-20 per cent of GDP, advancing Vietnam’s rank in the Logistic Performance Index to at least 50th position globally.

To attenuate logistics costs, the government is forging ahead with the completion of 3,000km of expressways by 2025 and intends to conclude an additional 2,000km by 2030.

Responding to the National Assembly in June regarding solutions to reduce logistics costs, Minister of Transport Nguyen Van Thang said that the MoT will persistently centralise investments in synchronised transport infrastructure. This incorporates simultaneous investments in logistics centres and dry ports to propel multimodal transport.

Additionally, it will continue to review and propose policies related to transportation prices and fees, such as reductions in road use fees and seaport infrastructure usage fees.

Professor Dang Dinh Dao, former director of the Institute of Economic and Development Studies at the National Economics University in Hanoi, accentuated the paramount importance of long-term vision and investments in the north-south railway system, revitalisation of the Mekong Delta waterway transport system, and development of maritime transport.

“At times, the cost of transporting a container from north to south by road is equivalent to transporting a container from Vietnam to the United States by sea,” he said. “For expressways, passenger transportation for tourism will be very convenient, but the transportation of goods will be expensive, much more expensive compared to railways and waterways.”

Tailored last-mile delivery services the latest challenge

Last-mile delivery, in the backdrop of Vietnam’s booming e-commerce and on-demand services, is a make-or-break challenge that demands relentless efforts towards cost optimisation in the country’s logistics sector.
 
The statement was emphasised by Truong Bui, partner and general director of Roland Berger in Vietnam, at the Logistics Summit 2023 in Ho Chi Minh City last week.

“In Vietnam, we are seeing a similar price war in the last mile. While the market is significantly smaller than China, many companies have yet to fully embrace and maximise the benefits of comprehensive technology integration,” Bui said.

In fact, his estimates suggest that introducing technology could help reduce delivery costs by 15-25 per cent, through automation and other means, ultimately driving down expenses.

“However, in Vietnam, businesses have yet to exploit the full potential of technology. Despite a smaller market size, the available opportunities remain largely untapped,” he continued. “Determining a comprehensive strategy for technology utilisation is imperative for Vietnamese businesses. The question remains, should they go fully automated or opt for a hybrid model? Given that Vietnam’s workforce is generally younger, there may be considerations about the necessity of full automation.”

In addition, Bui believed that the rise of social e-commerce, exemplified by platforms like TikTok Shop, has harnessed the power of consumer data to enhance the overall shopping experience, thereby increasing competitiveness.

A key challenge is adapting foreign technology to the Vietnamese market, ensuring it is tailored and localised to align with the specific demands and nuances of the region.

Mai Hoang, co-founder and CEO of GHN Logistics, also believed that in a landscape marked by striking similarities in the quest for cost-efficiency, China and Vietnam find themselves embroiled in a battle for logistics supremacy.

“The pricing battle in China and Vietnam bears remarkable resemblance. In Vietnam, the cost of last-mile delivery has witnessed a significant reduction from $1.65 to $1. As the e-commerce industry surges ahead, the average order value hovers around $14.

Interestingly, both sellers and buyers are reluctant to incur costs exceeding 10 per cent of the order value, making it essential to strive for a 5 per cent reduction in expenses to maximise profitability.

In a bid to achieve this goal, embracing technology is paramount. However, Hoang stresses the need to strike a balance. “Technology should be married with the human touch. Collaborative efforts that enhance productivity and optimise time are essential,” Hoang said.

Moreover, he also warned that the dynamics of mobile warehousing have entered a new phase. “With available land for warehousing around Ho Chi Minh City becoming increasingly scarce, costs are on the rise. However, moving just one kilometre away from the city centre can lead to a substantial cost hike.”

Despite the economic downturn, e-commerce continues to grow steadily. The shift from offline to online is evident each year, with compound annual growth rates consistently reaching double digits. Therefore, logistics companies like GHN remain proactive by investing in the future of warehousing and logistics to stay ahead of the game.

Recent figures from the Department of E-commerce and Digital Economy under the Ministry of Industry and Trade reveal a 25 per cent surge in retail e-commerce revenue in Vietnam, reaching $10.3 billion in the first half of 2023.

This significant growth, constituting 7.7 per cent of the nationwide consumer goods and services revenue, has led to a surging demand for e-logistics services. As a result, logistics companies are diving into an increasingly fierce competition.

Foreign players like J&T Express, Best Express, and Kerry Express have swiftly expanded their market presence. They leverage franchise models, cost reductions, and, in some cases, zero delivery charges to secure market share.

On the other hand, domestic firms like GHTK, Nhat Tin Logistics, and GHN are grappling with network constraints. To handle inner-city or rural-area deliveries, they need to collaborate with traditional delivery companies, inevitably raising delivery costs.

Dr. Dang Thanh Tuan, head of the Logistics and Supply Chain Management Department at the Hong Bang International University in Ho Chi Minh City, emphasised the pivotal role of last-mile delivery in e-commerce. He notes that it accounts for approximately 28 per cent of the total transportation cost and could escalate to 53 per cent for on-demand deliveries. This underscores its influence on 97 per cent of online shoppers’ experiences.

“In addition, the efficiency and reliability of last-mile delivery significantly affect not only customer satisfaction but also the profitability and reputation of e-commerce enterprises,” he said.

“Before the e-commerce explosion, delivery providers were already facing challenges to enhance efficiency and reduce delivery costs. Approximately 28 per cent of the total transportation costs in e-commerce are attributed to last-mile delivery.”

Recognising the persistent challenges in last-mile delivery logistics in an increasingly competitive landscape, Vietnamese companies within the logistics ecosystem are innovating to expedite delivery processes and enhance customer satisfaction.

Hoang Trung Thanh, CEO of Viettel Post, said that the company has embarked on a comprehensive overhaul. This includes upgrading hardware and software infrastructure, operational procedures, and optimisation to ensure the highest quality, speed, and cost-effectiveness.

“The most significant challenge lies in cost optimisation on a per-order basis,” he acknowledged.

Dong Nai granted three investment registration certificates worth $210 million

Dong Nai People's Committee on October 5 awarded investment registration certificates to three foreign-iinvested projects: Kingfa Science & Technology Co., Ltd. Project (China), Factory Project of Wave Crest Vietnam Co., Ltd. and SMC Manufacturing Vietnam Co., Ltd. (Japan).
 
These projects are invested in Long Thanh High-Tech and Long Duc industrial parks in Long Thanh district.

Speaking at the investment certificate awarding ceremony, Deputy Chairman of Dong Nai People's Committee Nguyen Thi Hoang said that tho three projects are in manufacturing and supporting industries with advanced production technology, which are closely consistent with Dong Nai province's investment attraction policy.

Before that, at the end of March, Dong Nai awarded investment certificates to increase investment capital for five foreign-invested projects with a total capital increase of more than $370 million. By mid-July, two more foreign-led projects were given investment registration certificates withthe total investment capital of $30 million.

According to Dong Nai Industrial Parks Management Board, in the first six months of the year, Dong Nai attracted more than $623.2 million in foreign investment capital, an increase of nearly double compared to the same period in 2022.

Of these, 33 new projects were granted with the total registered investment capital of nearly $109 million and 44 others with the total additional investment capital of more than $514 million.

In the third quarter of 2023 alone, industrial parks in the province attracted 16 foreign-led projects with the total investment capital of nearly $113 million and adjusted to increase the investment capital for 28 projects worth nearly $170 million.

Thai group Ratch scoops up 51 per cent of wind farm

Thailand's Ratch Group Public Co., Ltd. has bought a 51 per cent stake in the 29.7MW Ecowin wind power project in the Mekong Delta province of Ben Tre.
 
The Ecowin plant is an onshore wind farm project comprising nine wind turbines with 3.3MW capacity each. The project is operated by Ecowin Energy Corporation, a joint venture company owned by Ratch Group. The project has completed its trial run and reliability tests.

The Ecowin plant is the company’s third Vietnamese renewable power project in operation, along with the Song Giang 2 and Coc San hydroelectric power plants, with a total equity capacity of 49.63MW.

The company has two further projects under development, namely Song Giang 1 hydroelectric plant and Ben Tre wind farm with a combined equity installed capacity of 65.15MW. Both projects are scheduled to commence commercial operation in 2024 and 2025, respectively.

Choosri Kietkajornkul, CEO of Ratch Group said, "Vietnam is regarded as a target country due to its continued economic growth and power development plan which is clearly defined on renewable energy sources including hydroelectric power, onshore and offshore wind power, as well as solar power."

"The company foresees a sound investment opportunity in renewable energy expansion in the Vietnam market that it could be run through Ratch Group itself or through a joint venture company, NEXIF Ratch Energy Investment. Moreover, the company aims to expand renewable capacity to 4,000MW by 2035," he said.

At present, the company has invested in renewable energy projects with the 2,933MW total equity capacity, accounting for 27 per cent of its 10,807MW total installed capacity, of which the 1,566MW capacity is commercial generation and another 1,367MW is under development and construction.

In addition, Australia is considered the company’s main operational base on renewable energy with a 1,379.69MW total equity capacity, followed by Laos of 669.10MW, the Philippines of 549.83MW, Indonesia of 123.05MW, Vietnam of 114.78MW, Thailand of 94.76MW, and Japan of 2.02MW.

JERA inks deal with EVN on decarbonisation

JERA Co., Inc.(JERA) has signed an MoU with Vietnam Electricity (EVN) committing to establish a decarbonisation roadmap for EVN.
 
The MoU stipulates that JERA and EVN will share information and promote discussions towards the decarbonisation of the country's power sector. The two sides will work together to establish a roadmap for the decarbonisation of EVN's entire business, including the thermal power sector, and to explore the introduction of ammonia and hydrogen to EVN's thermal power plants.

Vietnam's electricity demand is expected to continue to increase in line with its economic growth, which both securing a stable energy supply and decarbonisation are nationwide challenges. Along with expanding the development of renewable energy, the government has announced a policy to promote conversion to ammonia and hydrogen in thermal power generation.

As Vietnam is one of the important countries in the business strategy for JERA, the company is developing a business base in Vietnam and exploring solutions to achieve both a stable energy supply and decarbonisation to support Vietnam’s economic development.

EVN is the largest power producer in Vietnam, owning approximately 40 per cent of the whole country's power generation capacity, which includes its subsidiaries’ facilities. JERA expects that collaboration with EVN will contribute to the decarbonisation of the country's power sector in Vietnam.

Under the JERA Zero Emissions 2050 initiative, the company is taking on the challenge of achieving zero CO2 emissions from its domestic and overseas operations as of 2050. The company aims to achieve zero emissions through the formulation of roadmaps that are optimal for each country and region.

By formulating the company's decarbonisation roadmap while taking into full consideration the unique circumstances of Vietnam, JERA will contribute to the strong growth and development of Vietnam and the world.

Hanoi gets ready for digital economy growth

The digital economy is destined to play a big important part in Hanoi’s socio-economic growth in the future, and the city authorities are working to fulfill such a target.

Under the plan issued by the municipal People’s Committee on making Hanoi a digital and smart city in 2030, revenue from the digital economy sector is expected to account for 30% of the city’s total in 2025 and 40% in 2030. The digital economy is also anticipated to account for at least 10% of each sector and industry.

By the end of 2025, the capital city plans to become one of the top five localities in digital transformation, competitiveness index, innovation, and cybersecurity. In ASEAN, Hanoi hopes to become a leading metropolis in data science and artificial intelligence (AI).

Hanoi also wants to facilitate the e-Government, digital economy, and digital society while formulating a community of capable, global digital enterprises.

Regarding e-Government, Hanoi expects to process 100% of level-4 administrative tasks via online platforms. At the municipal, district and commune levels, Hanoi will explore internet-based solutions to proceed with 60-90% of the paperwork.

In addition, 100% of professional data will be shared via the national database of population, land, business registration, finance, and insurance.

The entire activities are expected to be completed by 2025.

Economist Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy, said that Hanoi has developed itself a firm foundation for sciences and technological developments.

The city is home to many universities, colleges, research institutes, and technological centers, he said, adding that Hanoi has benefited in years from the support of the Government to become the national technological and innovative center.

For that, many remarkable achievements in sciences and technological studies have been made, thus paving the way for the municipal authorities to realize their policies and turn Hanoi into the most digitalized locality in Vietnam, Thanh said.

Hanoi is now among the top three localities in digital transformation, information and technology, and cyber security.

The e-Government system is well-received and proves effective, with all the figures on the likes of population and insurance regularly updated and explored.

Municipal authorities have also encouraged the use of cashless payments in all districts and facilitated the development of e-invoices, e-bills,s and other forms of electronic transaction.

As of the end of 2022, Hanoi had some 9,300 ICT companies whose total revenue was estimated at US$12.8 billion and they created some 207,000 jobs.

Many have acquired core technologies and developed 40 “Make in Vietnam” platforms, such as Viettel, CMC Solutions, and Phenikaa MaaS.

At the Hoa Lac Hi-Tech Park, there are some 94 projects with a total registered capital of VND89.3 billion ($3.6 million). Fifty-two projects are operating, including foreign-invested ones such as Hanwha Aerospace (South Korea) and Nissan Techno (Japan).

The Hoa Lac Hi-Tech Park is also the cluster where startup businesses are encouraged to develop. Science and technology studies at the industrial park have resulted in many solutions for 4G and 5G technologies and aero engineering.

In recent meetings with authorities and businesses from Shenzhen (China), Gyeonggi (South Korea) and Australia, Hanoi’s top officials have reaffirmed their intention to draw foreign investment capital into the hi-tech park to diversify its operations, thus creating more added values for the people and society.

Not only businesses but academics have also taken steps to get more involved in science and technology development.

The Hanoi University of Sciences and Technologies has recently launched a working space at its technological and digital economy center. The working space is projected to become the source of a high-quality workforce and digital products, which will assist the formation of the digital economy and society.

For infrastructure projects, Hanoi authorities have asked developers to integrate smart and digital solutions in their plans to create smart infrastructure for the city. The city has also initiated a project to originate the policies for the startup community, thus making the capital the city of entrepreneurship and innovation.

“Hanoi has positioned itself with incentive and preferential policies for startup companies,” said Nguyen Thi Mai Anh, Deputy Director of the Hanoi Trade Promotion Agency.

“The city also hopes that large-cap enterprises will lead, among others, to adopt technologies in production and trading,” she said.

Dramatical credit increase signals production and business prosperity in Q4

With an increase of VND120 trillion (US$4.9 billion) within 9 days from September 20 to 29, credit topped VND12.7 quadrillion, an increase of about 6.9 percent compared to the beginning of the year.

That is expected to bring prosperity to production and business activities in the last quarter of the year.

With the country’s existing economic difficulties, credit growth has only reached 1/3 of the plan set by the banking industry for 2023 even though the third quarter of 2023 ended. Not only private commercial banks but also state-owned banks also have witnessed slow credit growth.

A Vietcombank leader said that from the beginning of the year until now, this bank's capital mobilization has been six times higher than the credit growth rate. He disclosed that not only domestic production and business credit but also foreign direct investment (FDI) business credit also decreased by more than 19 percent. Apart from that, real estate credit alone decreased sharply, in which personal loans to buy property decreased by up to 15 percent, he said.

Similarly, General Director of BIDV Le Ngoc Lam said that by the end of August 2023, BIDV's credit would only increase by 5.72 percent even though the yearly limit is up to 14 percent. Meanwhile, Agribank reported that its credit growth only reached 2.4 percent as of August 31 compared to the end of 2022 explaining for the economy's weak capital absorption capacity.

More people make deposits into their savings accounts but there has been a decrease in borrowers' demand for loans; therefore, the State Bank (SBV) has lately withdrawn VND100 trillion of uncirculated money out of the banking system through the issuance of bills. This move by the State Bank is assessed by experts as adjusting the short-term liquidity status in the system.

An expert from Maybank Securities Company analyzed the state bank’s move to attract money through treasury bills aims to ensure the goals of increasing interest rates in the inter-bank market as well as reducing exchange rate pressure but not causing liquidity disruption for the economy with the aim to push down the lending rates.

Leaders of some commercial banks said that interest rates are no longer a barrier to accessing credit because lending interest rates have dropped deeply. However, this statement is different from reality.

Deputy Director of the State Bank of Vietnam Ho Chi Minh City branch Nguyen Duc Lenh said that the Ho Chi Minh City financial and monetary policy consulting working group has just conducted a survey of the operations of a number of businesses in the city to find out how businesses and people access credit capital.

The results show that businesses and people have convenient access to credit capital with low-interest rates. Accordingly, lending interest rates have decreased, and short-term credits and corporate loan interest rates are at a common level of 7.5-8.5 percent per annum. This rate has been maintained for many years before the Covid-19 epidemic. However, many petroleum businesses in Ho Chi Minh City revealed that they are borrowing loans at interest rates of 10 percent to 11 percent per annum while social housing businesses said that they are also enduring interest rates of up to 13 percent to 14 percent a year.

Standing Deputy Governor of the State Bank Dao Minh Tu said that since the beginning of this year, the State Bank has proposed many major solutions to expand credit. With the application of solutions, credit is expected to achieve growth goals, remove difficulties for businesses, and boost the economy.

Hopefully in the last 3 months of the year, as usual, credit will increase rapidly when businesses need money for the year-end shopping season. The State Bank will take drastic measures with the companionship of localities to create favorable conditions for businesses to thrive.

Hanoi's $2.67 billion urban railway project to be TOD pilot

Hanoi is considering piloting the concept of transit-oriented urban development (TOD) with the No.5 urban rail line (Van Cao - Ngoc Khanh - Lang - Hoa Lac).    

Once completed, the project is seen as a major piece contributing to the ambitious objective set by the Politburo for the development of Vietnam's railway network by 2030, which aims to "complete the urban railway network in Hanoi (with links to the Capital Region) by the year 2035."

Urban Railway Line No.5 is 38.43 kilometers long, double-track standard, and electrified, with 6.5 kilometers underground, 2 kilometers on elevated tracks, and 29.93 kilometers above ground.

This line passes through several districts, including Ba Dinh, Dong Da, Cau Giay, Nam Tu Liem, Hoai Duc, Quoc Oai, and Thach That. It has a rolling stock of 25-40 trains, with a maximum operating speed of 120 kilometers per hour and 90 kilometers per hour for the underground sections. Passengers can expect a short train waiting time of around 3.3 minutes.

The total investment for this project is estimated at about VND65.4 trillion (US$2.67 billion), with construction costs at VND24.8 trillion ($1 billion) and equipment costs at VND16.6 trillion ($679.3 million).

In terms of timeline, the investment preparation phase spanned from 2018 to 2022, while the project's implementation phase runs from 2022 to 2026, encompassing trial operation and project handover by the end of 2025.

To finance the project, the Hanoi People's Committee will allocate VND15 trillion ($614 million) from public investment capital and cost savings during the period from 2021 to 2025. Additionally, VND10-12 trillion ($409-491 million) will be sourced from the sale of enterprises, VND15 trillion ($614 million) from the auction of land, VND10 trillion ($409 million) from the  Government bond issuance, and VND6.9 trillion ($282.4 million) borrowed from financial institutions.

According to Vice Chairman Duong Duc Tuan of the Hanoi People's Committee, the increasing traffic congestion and environmental pollution in the city underscore the importance of research and investment in Urban Railway Line No.5.

“This project is seen as a crucial step towards completing the urban railway network as outlined in the city's planning,” he noted.

Nguyen Phi Thuong, Director of the Hanoi Department of Transport, emphasized the slow progress in building urban railway lines according to the existing plans. Consequently, a shift in approach and investment strategies is deemed necessary, with the TOD concept seen as a solution to the current challenges faced by urban transportation.

The Hanoi Metropolitan Railway Management Board (MRB) has identified the advantages of this approach including investing in the entire line in a single phase, avoiding phased investment as in the initial planning, and using funds from the budget to ensure proactive and efficient investment.

This approach aims to expedite the project, reduce construction costs, ensure technological synchronization from the outset, and enhance the efficiency of equipment and vehicle systems, noted the MRB in a report.

According to the MRB, the project's strategic location, connecting the city center with the Hoa Lac satellite urban area, the Hoa Lac high-tech park, the national university campus, and the Cultural-Tourism Village of Vietnamese ethnic groups is expected to improve investment efficiency, provide better access for passengers, and meet the growing demand in new urban areas and industrial parks as per the approved planning.

The city can also explore the possibility of applying the TOD model to set up a specific mechanism for land funds and land auctions to generate revenue for project implementation, it continued.

MRB’s Deputy Head Le Trung Hieu added that investing in a substantial volume of vehicle systems and equipment is expected to reduce costs and offer advantages in vehicle investment and maintenance. This approach is expected to attract investment in the domestic railway industry and facilitate the domestic manufacture and assembly of locomotives and carriages.

Hieu also expected the Urban Railway Line No.5 would support the planned relocation of educational institutions from the downtown area, create a pivotal public transport link to the High-Tech Park in Hoa Lac, and, once operational, help alleviate population density in the downtown area as people move to the western districts.

Good news for Vietnam’s tra fish exports to US

Vietnam’s tra fish exports to the US are expecting a better outlook in the remaining months of this year after getting some good news.

In early September, the US Department of Commerce lowered anti-dumping duties on frozen tra fish fillets from Vietnam following its latest preliminary conclusion.

In August, the US Food Safety and Inspection Service conducted a thorough review of the food hygiene and safety management system pertaining to Vietnamese tra fish exports to the US.

The initial findings of the inspection have garnered favorable responses from US authorities, with only minor technical discrepancies detected at some farms and businesses. Such results are excellent for Vietnam’s tra fish industry in particular and its agriculture in general, insiders said.

Vietnam mainly exports frozen tra fish fillets to the US, along with frozen pieces/cuts, frozen breaded, dried puffed, and fried skin products from tra fish.

Transport Ministry asks expressways’ remaining works quickly completed

The Ministry of Transport on October 7 issued a telegram to request investors and businesses to promptly complete a number of component projects of the North-South expressway project in the first phase.

Sections of the North-South expressway project, Mai Son – National Highway 45, National Highway 45 – Nghi Son, Nghi Son – Dien Chau, Nha Trang – Cam Lam, Vinh Hao – Phan Thiet, and Phan Thiet – Dau Giay were put into operation. However, the remaining items, including frontage roads, fences, crossroads, overpasses, and drainage systems have not yet been completed.

The Ministry of Transport has asked the units to finish the remaining works by no later than October 2023. The others under contracts that have problems in premises and additional items that are outside the contract must be finished before December 31.

The units have to proactively carry out procedures for working sessions with the State Inspection Council on acceptance and handover of construction works to the project operation and management units as soon as possible.

The Transport Ministry also requested the My Thuan Project Management Board, contractors, and relevant units to focus on implementing the construction project and ensuring that the My Thuan - Can Tho expressway project’s phase 1 will be put into operation at the end of 2023. The board just completed around 72 percent of the project’s work volume.

Revenue of SOEs surges 29% in 2022

The total revenue of Vietnam’s 827 State-owned enterprises (SOEs) recorded a year-on-year surge of 29% to 2.75 quadrillion VND (112.89 billion USD) last year, according to a Government report sent to the National Assembly.

Their combined assets reached up to 3.82 quadrillion VND, up 4% year-on-year, and their pre-tax profits hit 247.9 trillion VND, an increase of 23% compared to that in 2021.

Their total debts were valued at 2.05 quadrillion VND, up 6% year-on-year.

Also in 2022, the amount of disbursed investment of Vietnamese SOEs abroad was 61.55 million USD in 14 projects, mainly of subsidiaries of the Vietnam Oil and Gas Group (Petrovietnam), and the Viettel Military Industry and Telecoms Group.

The report assessed that the SOEs have basically completed their production and business tasks. Some groups and corporations enjoyed huge export revenues, contributing to ensuring several major balances of the economy.

Credit growth to display positive signs ahead in remaining months

Credit growth is anticipated to enjoy positive growth during the last months of the year, thereby helping to ease difficulties faced by businesses, whilst propelling economic development forward.

According to the latest data compiled by the State Bank of Vietnam (SBV), as of September 29, credit growth had reached 6.92% compared to the end of 2022, with a strong rise seen in credit for some priority sectors.

Pham Thanh Ha, deputy governor off the SBV, said that in the first nine months of the year both the Government and the Prime Minister held many conferences and meetings with ministries, sectors, and associations, while the SBV also organised 12 conferences and meetings. In addition, it issued 11 documents directing the implementation of measures in a bid to enhance credit access for enterprises, sectors. and areas.

The central bank also worked hard to seek ways in which to improve people and businesses’ capacity to absorb credit capital, he said, noting that there have been 63 bank-business connection conferences held in localities as a means of listening to the opinions of businesses and people, as well as seeking solutions to help them overcome difficulties, especially in accessing credit.

As a result, the whole economy’s credit reached close to VND12.75 quadrillion, equal to US$523.39 billion, as of September 29, a rise of 6.92%.

Ha outlined that although credit growth was considerably lower than that in 2022 and the same period seen in previous years, there was an upturn trend in recent months. Particularly, credit growth in some priority areas stands higher than average, he said.

The banks’ deputy governor stated that in order to provide businesses with better access to credit capital, the central bank has applied many measures since the beginning of the year, including reducing operating interest rates to create room for commercial banks to lower their interest rates, while encouraging digital transformation in the banking sector in order to help credit institutions cut cost and reduce lending interest rates.

However, in reality, although interest rates have decreased, the rates have yet to fully meet the needs of many businesses, while lending interest rates have been cut more slowly than deposit interest rates. Since the beginning of the year, deposit interest rates in the market have dropped by 2%, although lending interest rates have only fell by 0.5% to 1%.

Dao Minh Tu, permanent deputy governor of the SBV, said that along with efforts of the central bank, the continuous companionship of ministries, sectors, and localities through synchronous solutions is crucial to removing difficulties faced by businesses, thereby enabling them to flourish in a difficult economic context.

Entrepreneurs core force in economic development: national conference

President of the Vietnam Chamber of Commerce and Industry (VCCI) Pham Tan Cong on October 11 called on associations and businesses to pool resources to enhance competitiveness and boost innovation to become a core force in implementing industrialisation and modernisation, and building an independent, self-reliant and prosperous economy.

Speaking at a national conference of Vietnamese business associations and entrepreneurs in 2023, Cong said that the private economic sector currently has nearly 900,000 businesses, which, along with state-owned and foreign-invested enterprises and cooperatives, form a powerful force promoting Vietnam's economic development, helping bring Vietnam's GDP scale to the Top 40, and its international trade scale to the Top 20 of the world.

Currently, there are 2-3 million entrepreneurs who are business leaders; and the figure can reach 10 million people if the number of household businesses are taken into account, Cong stated, adding that this is a special workforce playing an important role in implementing industrialisation and modernisation and building the country's independent, self-reliant and integrated economy in the new era.

At the conference, participants discussed measures to develop the contingent of entrepreneurs, build up the Vietnamese business community, and improve operational efficiency and cooperation between business associations.

Do Ngoc An, deputy head of the Party Central Committee’s Economic Commission, said that the Party General Secretary signed and officially issued the Politburo Resolution No. 41/NQ-BCT dated October 11 on building and developing the contingent of Vietnamese entrepreneurs in the new period.

This document is extremely important, as it includes new contents on the viewpoint, orientations and solutions to develop the contingent in the upcoming period, An added.

Vietnam and RoK businesses team up for semiconductor chip manufacturing

Businesses of Vietnam and the Republic of Korea have inked a cooperation deal to invest in manufacturing semiconductor chips and mechanical precision components for the electronics industry.
      
Representatives of the Hanoi Supporting Industries Business Association (HANSIBA), N&G Group and Cheongju Entrepreneurs Community (CEC) of the Republic of Korea sign a cooperation deal to manufacture semiconductor chips and mechanical precision components for the electronics industry.

The document was signed in Hanoi on October 11 by the Hanoi Supporting Industries Business Association (HANSIBA), N&G Group and Cheongju Entrepreneurs Community (CEC) of the Republic of Korea.
  
Under the signed document, the parties will jointly work on human resources training, management and technology transfer for the semiconductor chip manufacturing industry in the coming time. They will team up to form semiconductor chips and mechanical precision components manufacturing complexes.  

Before the signing ceremony, HANSIBA, N&G and CEC examined the possibility of grasping investment opportunities in both the RoK and especially Vietnam which has established comprehensive strategic partnership with global leading economies, including the US and the RoK.

According to Nguyen Hoang, HANSIBA president, Vietnam is becoming an attractive destination for foreign businesses, including Korean businesses, in the semiconductor chip manufacturing industry, thanks to its ideal infrastructure and qualified workforce.

In addition, the government has introduced incentive policies to support local businesses in developing partnerships with foreign businesses, including Korean firms.

Sung-Hun Jung, director of Semisol Tech, shared the view that Korean businesses are keen to increase cooperation with Vietnamese counterparts, especially in the supporting industry, on the back of opportunities Vietnam offers from its international integration and enforcement of free trade agreements (FTAs).

He also proposed that Vietnam introduce consistent, transparent policies to create a conducive business and investment climate for foreign businesses.

Hanoi festival for innovative start-ups 2023 underway

A festival for innovative start-ups themed “Connecting the Capital Region – Creativity and Development”, or Techfest Hanoi, is underway in Hanoi from October 12-14.

Speaking at the opening ceremony, Deputy Minister of Science and Technology Le Xuan Dinh said the event is one of the key initiatives aimed at spreading entrepreneurial and innovative spirit, developing the network of creative startups in the Hanoi Capital Region and the Red River Delta, and promoting the application of technological solutions in production and trade.

Permanent Vice Chairman of the municipal People’s Committee Le Hong Son said Hanoi leads the nation in terms of implementation of the Party, State, and Government's strategies and policies on sci-tech and innovation. According to data from Startup Blink (a global startup ecosystem research and mapping centre), Hanoi and Ho Chi Minh City are among the top 1,000 startup cities worldwide.

Startup and innovation activities in the capital city are vibrant and robust, with around 1,000 startups, accounting for 26.32% of the total nationwide. The city is now home to 32 incubators operating in multiple areas and 14 providers of business acceleration programmes, constituting 38.1% and 40% of the total across the country, respectively.

Since 2016, local startups and innovative businesses have raised 1 billion USD through 100 successful fundraising deals, he said.

On the occasion, he urged the city's departments and agencies to accelerate the building of the Hanoi Innovation and Startup Centre, which will serve as a hub for gathering, guiding, and connecting stakeholders within Hanoi's startup and innovation ecosystem and nearby regions.

The event is expected to feature a range of key activities, including an exhibition showcasing start-up and sci-tech projects and products, technology presentations, One Commune, One Product (OCOP) items, a technology and innovation startup forum, and a workshop on businesses with science, technology and innovation. There will also be a seminar on logistics and connectivity for capital region development, a youth innovation and start-up forum, and an innovation start-up competition.

PM: Vietnam aspires to develop semiconductor industry

Vietnam wishes to develop its semiconductor industry, Prime Minister Pham Minh Chinh told Vice President and CEO of Amkor Technology Ji Rong-rip during a reception in Hanoi on October 12.

PM Chinh said Vietnam is building a development strategy and a human resources development plan, along with appropriate regulations, policies and mechanisms, to attract the world’s leading semiconductor manufacturers and designers to the country. This initiative aims to promote collaboration with the Vietnamese firms, creating conditions to improve their capability and gradually join the semiconductor industry value chain.

Vietnam will step up the training of high-quality workforce in semiconductor industry, with the goal of training 50,000 workers by 2030, he said, adding that Vietnam also advocates building a national semiconductor ecosystem with the participation of various stakeholders, including the Government, businesses, support organisations, universities, research institutes, and financial institutions.

The PM suggested that based on mutually beneficial interests and risk sharing, Amkor continue helping Vietnam develop semiconductor industry, especially in building mechanisms and policies, technology transfer, human resources training, governance capacity improvement, infrastructure and training facility building, R&D, design and testing, while also strengthening cooperation with Vietnam National Innovation Centre (NIC).

The group was also urged to expand its investment earlier than schedule, increase the rate of locally-made items, and make it easier for Vietnamese firms to explore collaboration opportunities and join its global production chain.

He assigned the Bac Ninh provincial People's Committee to work closely with ministries and agencies to promptly resolve any feedback and proposals from the group, ensuring the best conditions for its operations in Vietnam.

Ji, for his part, affirmed that Amkor will further contribute to Vietnam’s development and shape its semiconductor ecosystem in line with the suggestions provided by the PM.

He said Amkor wishes to employ highly skilled engineers and workers in Vietnam while also mobilising senior engineers and experts from its other facilities worldwide.

He also promised to continue attracting other investors to Vietnam and adding the country into its global network.

Established in 1968 and headquartered in the US, Amkor Technology is a pioneering semiconductor company that operates in both the US and the Republic of Korea (RoK). It was the first company to produce semiconductor products and brought success and growth to the RoK in this field. Recently, Amkor has inaugurated its new facility in Vietnam’s northern province of Bac Ninh.

PM orders proactive responses to flood risks in central region

Prime Minister Pham Minh Chinh has issued a dispatch requiring relevant agencies, ministries and local administrations to get prepared to timely respond to risks posed by heavy rains and floods in the central region.

According to the National Centre for Hydrometeorological Forecasting, there is a likelihood of continued prolonged heavy rain, particularly in the central region. From October 12 to 14, torrentials are forecast for the region from Nghe An to Quang Nam provinces, with rainfall ranging from 200 to 400 mm, and even exceeding 700 mm in some areas. From October 15 to 16, the region from Quang Binh to Quang Ngai provinces is likely to record rainfall of 150-300 mm, with some areas possibly logging over 500 mm. There is a high risk of deep flooding in low-lying locations, urban inundation, flash floods, and landslides in mountainous areas. 

To ensure human safety and mitigate property damage to the residents and the state, the PM, in his dispatch, instructs the National Steering Committee for Natural Disaster Prevention and Control, the National Committee for Incident and Disaster Response, Search and Rescue, ministers, and heads of People’s Committees of central and Central Highlands localities to closely monitor weather developments and proactively and effectively implement response measures.

The authorities should be prepared to evacuate households in dangerous areas, especially those at high risk of landslides, flash floods, and deep flooding, to safe places. They should have plans to provide temporary accommodation, food, and essential items for the evacuated people. The safety of teachers, students, and educational facilities in flooded areas should also be ensured, while protection measures for dikes and reservoirs are advised to be implemented based on the alert levels.

Provinces and cities are required to conduct communications and give guidance to people in how to stay safe and prepare food and essential items in case disasters cause prolonged isolation. They should also arrange forces and means in key areas to promptly organise evacuation and conduct search and rescue operations in emergencies.

A series of tasks are also given to the ministries of Natural Resources and Environment, of Agriculture and Rural Development, Education and Training, and Transport, among others.

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