Fitch Ratings has rated Binh Son Refining and Petrochemical Joint Stock Company (BSR) as a Long-term Foreign- Currency Issuer Default Rating (IDR) of “BB+” with a stable outlook.

According to Fitch Ratings, one of the three largest rating agencies in the world, BSR plays an important role in maintaining Vietnam’s energy security with the ability to supply about 35% of the country’s fuel needs. Together with Nghi Son Refinery & Petrochemical Limited Liability Company (NSRP), Dung Quat Oil Refinery (DQR), operated by BSR, has contributed to ensuring energy security for Vietnam, reducing the need for petroleum imports.

In line with the roadmap to 2028, when the DQR upgrade and expansion project is successfully implemented, the plant’s capacity will increase from 148,000 barrels per day to 171,000 barrels a day. This increase will be accompanied by improvements in efficiency, processing capabilities and product optimisation, thus helping BSR improve its competitiveness and operational efficiency in the long term.

The rating on BSR is at the same level with that of the parent Vietnam Oil and Gas Group (Petrovietnam). The rating shows the strategic role and important support from Petrovietnam for BSR in its production and business activities as well as the company’s sustainable development strategy.

BSR General Director Bui Ngoc Duong said the rating is conducted continuously, independently and objectively aligned with Fitch Ratings’ criteria. The assessment results from the leading rating international organisation will be a useful assessment tool for domestic and foreign investors to consider and make long-term investment cooperation decisions with BSR, he added.

BSR's proactive engagement in the assessment with Fitch Ratings demonstrates its commitment to potential investors regarding operational efficiency, responsibility, and compliance with international laws.

Since its inception, DQR has always operated safely and stably, supplying the market with more than 91 million tonnes of various products. Its total revenue has reached nearly 1.6 quadrillion VND (63.5 billion USD), contributing nearly 224 trillion VND (over 9 billion USD) to the State budget, three times higher than its total investment./.

OV comments on proposed North-South express railway project

Lam Viet Tung, Chairman of the Vietnam Intellectuals Association in the Netherlands, has expressed his support for the proposed project on developing a North-South high-speed railway in Vietnam.

Tung, who is also an information technology and telecommunications consultant, said he learned that on September 18, 2024, the Politburo gave opinions on the investment project on the North-South high-speed railway. It aims to promote the national economy; connect regions; create a premise and driving force for the development of the railway industry and supporting industries; develop sustainable, modern, and friendly modes of transport to reduce traffic accidents, environmental pollution, respond to climate change and contribute to ensuring national defence and security.

However, accessing the project’s pre-feasibility study report released by the Ministry of Transport in November 2023, he found that the ministry chose the option to develop a high-speed railway line with a design speed of 350 km per hour, a length of about 1,500 km, serving both passengers and goods when needed. However, the report did not include the clear goal as directed by the Politburo nor detailed requirements for the project.

There was no overall architecture of the national transport network, of which, the railway is the backbone connecting with other means of transport, connecting with ports, airports, or neighbouring countries, he pointed out.

Without the objectives, detailed requirements, overall architecture and preliminary bidding results, it is impossible to have a relative conclusion about the project's budget. So the estimated cost of 67 billion USD (about 44 million USD per km) given by the ministry is very difficult to convince, Lam said.

He said that China implements projects in a shorter time with lower costs, only from 17 - 21 million USD per km. In Europe, in recent years, the average construction cost per km of high-speed rail is about 20 - 30 million Euros. In France, the construction cost has been reduced to 10 million Euros per km, by accepting the changes of height in accordance with the terrain, instead of leveling a lot or building tunnels and viaducts.

The MoT proposed a maximum speed of 350 km per hour for the line which will only carry passengers and kept the current outdated system for transporting goods. Thus, operating two systems at the same time is a waste of land and does not follow the target set by the Politburo.

If the line only carry passengers, it will be a waste because Vietnam already has many inter-provincial airports and is completing its highway system. The train ticket price will increase to almost the same as that of an airline ticket, making it difficult to attract people to use and the ability to recover capital will be very difficult, leaving a burden for the next generation.

To promote the effectiveness of the project, Tung said that the MoT needs to clarify the goals of serving the economy and national defence; develop a project in the direction of transporting both passengers and goods; study the possibility of not using the current system to reduce operating costs and build new the railway on the old one to save land and reduce the impact on people's lives.

With the goal to boost economic development, the project should start from a place with high demand to transport goods, for example from the Southwestern region to Ho Chi Minh City to seaports, consumer markets, serving import and export of goods, contributing to reducing transport costs and pressure on roads by 50% and being good for the environment.

The national transport network is the lifeblood of the economy, so it is necessary to have an overall planning of the national transport network; in which, high-speed railway is the backbone, clearly indicating connections with other means of transport such as buses, metro, airplanes and ships. Meanwhile, stations need to be built in the city centre to optimise the movement of people and businesses, and easily connect with other means of transport.

Specifically, the line should have stations connecting to Long Thanh or Noi Bai airports.

Tung also analysed that choosing a railway with a maximum speed of 250 km per hour is suitable for transporting goods and passengers, with little impact on the environment. In addition, this speed allows the use of locomotives and equipment meeting European EN standards, which helps Vietnam not depend on a manufacturer and makes it easy to connect and control.

With the above speed, it is possible to use Electric Multiple Unit (EMU) with a wireless charging system, taking electricity from the rails, not polluting the environment due to metal dust falling due to friction between the power arm and the wire, saving electricity and not needing to build a grid of electric poles next to the railway. Thus, the project's costs will be reduced and capital recovery will be quick, suitable for Vietnam's economic situation. However, if choosing EMU with a design speed of 250km per hour, when Vietnam wants to switch to the maglev train, the railway system will not be synchronized and will have to invest again.

If Vietnam keeps preferring the line with a design speed of 350 km per hour, Tung recommended to use maglev trains because that is the world trend with the ability to travel at very high speeds, larger cabin, less energy consumption and less noise.

Such recommended system can operate at speeds of up to 650 km per hour, which can help the express railway to compete with under-1,000-km-distance flights./.

Australian official affirms potential for expanding economic, trade, investment ties with Vietnam

Deputy Prime Minister and Minister of Foreign Affairs Bui Thanh Son held a working session with Australian Minister for Trade and Tourism Don Farrell in Adelaide city, South Australia, on October 17, on the occasion of the former’s visit to Australia and his co-chairing of the 6th Vietnam-Australia Foreign Ministers’ Meeting.

Son lauded Australia’s efforts to strengthen and diversify its economic relations with partners in Southeast Asia, and with Vietnam in particular, by implementing various practical initiatives and projects under Australia’s Southeast Asia Economic Strategy to 2040.

He urged Farrell to continue supporting Australian businesses to invest in Vietnam, especially in areas where Australia has strengths and Vietnam has potential.

Son also suggested the two sides promote people-to-people exchanges and open more direct flights between the two countries.

For his part, Farrell stated that there is a large room and potential for Vietnam and his country to expand their economic, trade, and investment relations. He emphasised the need for the two sides to effectively implement the Joint Statement on upgrading their relationship to a comprehensive strategic partnership, especially the "economic connectivity" pillar, with an aim to become each other’s top 10 trade partners, and doubling two-way investment capital as set in the Enhanced Economic Engagement Strategy (EEES).

The Australian business community is increasingly interested in the Vietnamese market, he said, adding that the Vietnamese community in Australia has been making significant contributions to the socio-economic development of the Oceanian country, and serving as an important bridge for bilateral cooperation.

According to the Farrell, Australia will continue supporting Vietnam in terms of high-quality infrastructure, digital infrastructure, climate-resilient infrastructure, agriculture, and minerals; and developing small- and medium-sized enterprises (SMEs) and human resources. It will also strengthen collaboration with Vietnam at multilateral trade mechanisms such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA).

After the meeting with the Australian official, Son attended and delivered a speech at a workshop hosted by the Australia - Vietnam Policy Institute (AVPI).

The Vietnamese official highlighted the AVPI's role in advising the leadership of the two sides to identify a "new mindset, new vision, and new actions" for the Vietnam-Australia relations in the future, saying that the institute’s activities have contributed to promoting cooperation and exchanges, and enhancing mutual understanding between the two countries.

Son affirmed that the Vietnam-Australia relations are at their most beautiful stage, offering inspiring stories and standing at a new starting point, which opens up vast opportunities for stronger cooperation.

He expressed his hope that the two countries will continue to open their markets to maximise the benefits of the cooperation frameworks and new-generation FTAs that both are members.

Son urged Australian businesses to continue investing in Vietnam in a quality and sustainable manner, particularly in green economy, digital economy, circular economy, innovation, semiconductor manufacturing, new energy, essential minerals, green finance, biotechnology, health care, high-tech agriculture, and in training high-quality human resources.

Speaking at the event, Farrell emphasised that Australia considers the ASEAN an important economic partner of Australia, and Vietnam is one of Australia's priority focuses in the region.

Australia established a 2 billion AUD (1.3 billion USD) fund to boost two-way trade and investment with Southeast Asia, he said, adding that it will continue to support the clean energy transition and infrastructure development in the region.

Meanwhile, Vietnamese Minister of Planning and Investment Nguyen Chi Dung affirmed that expanding cooperation with Australia is not only a choice but also an important strategy in Vietnam's development process. The two countries have many complementary advantages, and their cooperation can create a solid foundation for sustainable growth in the future.

To further promote the two countries’ Comprehensive strategic partnership and fully tap the potential for cooperation, the minister proposed key orientations in the Vietnam-Australia relationship, including cooperation in clean and sustainable energy, technology and innovation, high-tech agriculture, education, and development cooperation.

Earlier on the same day, Deputy PM and FM Bui Thanh Son visited the University of Adelaide in South Australia, one of the eight most prestigious universities in Australia.

At the meeting with the university's managers, lecturers and outstanding Vietnamese students, Son emphasised that education has served as a bridge between Vietnam and Australia since the establishment of diplomatic relations. Now, it becomes one of the most important areas within the framework of the Comprehensive strategic partnership between the two countries.

He said that the joint statement on upgrading the two countries’ relations to the Comprehensive strategic partnership in March 2024 has opened up many opportunities for them to strengthen cooperation, especially in the field of education.

Son hoped that in the coming time, the University of Adelaide will consider increasing the number of scholarships for Vietnamese students, thereby supporting human resource training and capacity building for Vietnamese students; expanding partnerships and establishing links with Vietnamese partners, including public and private universities, not only in education and training programmes, but also in research and innovation, especially in areas where the school has strengths such as science, programming, health and medicine, environment, and climate change response.

He also hoped that the university will consider establishing Vietnamese study centres and its branches or research institutes in Vietnam to promote bilateral cooperation in science and technology, especially in emerging technologies such as artificial intelligence (AI), semiconductors, sustainable and green energy./.

Vietnam Airlines to change its terminal at Shanghai airport

Vietnam Airlines will move its operations at Shanghai Pudong Airport in China from Terminal 2 to Terminal 1 from October 27.

This shift is designed to enhance the travel experience for passengers flying with Vietnam Airlines and other SkyTeam member carriers by offering smoother, safer luggage transfers and better connections, as SkyTeam airlines are centralised at Terminal 1.

For passengers boarding next flights at Terminal 2, a walking path (about 500 meters) will ensure convenience. They can also check in online via the Vietnam Airlines website, www.vietnamairlines.com, or mobile app.

Signage and staff will assist travellers in finding the Vietnam Airlines check-in counters at Terminal 1.

For more information, passengers can visit the firm's website and mobile app, or contact customer service through Zalo, Facebook, ticket offices, and the customer service hotline at 1900 1100. Its Shanghai office is also available for assistance./.

Vietjet launches first flights using sustainable aviation fuel

Vietjet launched its first flights using sustainable aviation fuel (SAF) from Tan Son Nhat Airport on October 17, flying to Melbourne and Seoul, marking a step towards sustainability in Vietnam's aviation sector.

Dinh Viet Thang, Director of the Civil Aviation Authority of Vietnam, called the first international flights using SAF, supplied by Petrolimex Aviation, a contribution to environmental protection and sustainable development, and also a demonstration of the country as a responsible member of the world's aviation sector.

Chairman of the Vietnam National Petroleum Group (Petrolimex) Pham Van Thanh emphasised that this milestone aligns with the group’s long-term green energy goals.

Vietjet CEO Dinh Viet Phuong stressed the airline's commitment to reducing carbon emissions and promoting sustainable development, as part of Vietnam's broader push for net-zero emissions by 2050. The carrier is also working with international partners on SAF research, development, supply, and use.

SAF, made from renewable materials, reduces carbon emissions by up to 80% compared to traditional fuels and meets strict international aviation standards.

This move continues Vietjet's decade-long efforts toward sustainability, which also include transitioning to e-tickets, using eco-friendly materials on planes, and reducing fuel consumption. The company remains focused on supporting Vietnam’s national green growth strategy and net-zero emissions target by 2050./.

Germany’s media highlights Vietnam’s growth motives

Germany international broadcaster Deutsche Welle (DW) recently ran an article on its website spotlighting several factors driving Vietnam’s economic growth.

The country’s GDP is expected to expand 6.1% by the end of 2024 and 6.5% in the following year, the DW quoted the World Bank’s forecast.

Both projections are higher than what was predicted in April, with the increase in growth attributed to a rebound in manufacturing exports, tourism, and investment.

Vietnam could have larger growth in 2025 than other emerging economies such as Thailand, Cambodia, Malaysia, Indonesia and the Philippines, according to the report.

The article described foreign direct investment (FDI) as a factor fuelling growth, elaborating the country, like many other Southeast Asian peers, relies heavily on FDI.

Between 2021 and 2023, FDI inflows into Vietnam, Thailand, Indonesia, Malaysia, Singapore and the Philippines averaged some 236 billion USD a year, the ASEAN Investment Report 2024 showed.

As Western investors are trying to diversify their supply chains amid geopolitical tensions, Southeast Asian countries are becoming a top choice for foreign investment from the US, Japan and the EU.

Vietnam is one of the top choices for many firms’ China-plus-one policy due to geographical proximity and similar culture, the DW quoted Dr. Bich Tran, an adjunct fellow at the Centre for Strategic and International Studies, as saying.

Particularly, the US is Vietnam’s second largest trading partner and largest export market. Last year, the two nations upgraded their diplomatic ties to a comprehensive strategic partnership for peace, cooperation and sustainable development, which, analysts said, has helped promoted economic benefits of both sides.

The article highlighted that huge investment from the US is key to economic opportunities for Vietnam, which has become a key manufacturing location for the US tech giant Apple with investment of more than 15 billion USD over the past five years.

Furthermore, low labour costs and a young and large workforce, accounting for 58% of the population of almost 100 million younger than 35 years old, have made Vietnam an attractive bet for investment, it added./.

Bank credit - a factor in developing agriculture in HCM City

Bank credit has significantly contributed to agricultural and rural development in Ho Chi Minh City, Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s HCM City office, told a conference on October 17.

Speaking at the conference held to discuss linking up banks and agricultural enterprises, cooperatives and business households, Lenh said though agriculture accounts for less than 1% of the city's economy, agricultural lands account for over 50% of its land area.

He noted that in its five suburban districts, a tenth of the 500,000 households engage in agriculture, making agricultural and rural development crucial for ensuring social welfare and environmental protection.

In this process, bank credit plays a vital role in meeting the capital needs for agricultural production and rural development, new-style rural construction and agricultural restructuring in line with the city's direction of developing high-tech, clean and urban agriculture, he said.

In addition to general policies supporting businesses, the Government also has specific mechanisms for the agricultural and rural sector like Decree 55 on credit policies for its development and lending programmes for developing new-style rural areas, high-tech agriculture and forestry and fisheries at preferential interest rates and with flexible terms, he said.

Credit injected into the agriculture and rural sector under the decree is worth 345.6 trillion VND (13.8 billion USD), or 8% of total outstanding loans in the city, an increase of 2% so far this year and 14.5% up year-on-year, he said.

Referring to lending for forestry and fisheries, he said banks have disbursed 3.04 trillion VND this year with interest rate 1.5-2% lower than market rates.

He said in the last quarter of each year, there is a significant rise in capital demand, and so the SBV, the city’s Department of Agriculture and Rural Development and the Cooperative Alliance organise the conference to enable the agricultural sector to get access to bank loans.

According to the SBV’s HCM City office, Agribank has lent 993.4 billion VND for forestry and fisheries, high-tech and clean agriculture and the OCOP programme.

At the conference Agribank signed agreements with 20 customers to provide loans worth a total of 70 billion VND.

Lam Ngoc Tuan, Director of the Tuan Ngoc Agricultural Cooperative in Thu Duc city, which grows vegetables and fruits, said the preferential loans meet his cooperative’s funding need. He also expected to get more loans to accelerate automation in farming.

This year, 17 banks in the city had registered to participate in the banking-business connection programme and provide preferential loans worth 509.8 trillion VND to various sectors, and have already lent over 490 trillion VND to 153,151 enterprises, cooperatives and household businesses./.

US issues final determination on Vietnamese aluminum anti-dumping probe

The US Department of Commerce (DOC) recently issued its final determination on its anti-dumping investigation into aluminum extrusions and aluminum products originated from Vietnam, according to the Ministry of Industry and Trade's Trade Remedies Authority of Vietnam.

The investigation was initiated on October 24, 2023, at the request of the US United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union. The investigation was from April 1 to September 30, 2023.

In its preliminary conclusion on May 7, 2024, the DOC decided to impose a preliminary anti-subsidy tax rate of 2.85% on a mandatory defendant enterprise and 28 firms, while a rate of 41.84% was levied on the remaining ones.

In its final determination, the department set the weighted-average dumping margin for the mandatory defendant enterprise and 28 firms at 14.15%, 11.3% higher compared to the preliminary conclusion. Other companies will be subject to the national rate based on the margin alleged by the petitioner, which remains at 41.84%.

The DOC said that it had notified the US International Trade Commission (ITC) of its final affirmative determination.

The ITC will make its final determination as to whether the domestic industry in the US is materially injured or threatened with material injury by reason of imports of aluminum extrusions from Vietnam no later than 45 days after the DOC’s final conclusion. If the ITC determines that material injury or threat of material injury does not exist, the proceeding will be terminated and all cash deposits refunded or canceled, and suspension of liquidation lifted. If the ITC determines that such injury does exist, the department will issue an antidumping duty order.

The Vietnam Association of Aluminum is recommended to update manufacturers and exporters on the information, while enterprises must keep a close watch on the case’s developments, study the US’s policy and antidumping procedures, and diversify markets./.

Ben Tre calls on investors to coastal areas

The southern province of Ben Tre is striving to attract investors to its coastal areas as a move to realise its goal of developing its eastern part.

According to Chairman of the Ben Tre provincial People's Committee Tran Ngoc Tam, in the provincial planning for the 2021-2030 period with a vision to 2050, Ben Tre identified to develop towards the East with 50,000 ha of coastal area.

Developing the province’s eastern part is one of its key and breakthrough tasks set in the Resolution of the 11th provincial Party Congress for the 2020 – 2025 term. This direction will create a new momentum, opening up a space for comprehensive socio-economic development for the province with a goal of making Ben Tre a fairly developed province by 2030 and a livable place by 2050.

Tam said that under the province’s orientation to develop 50,000 ha towards the sea, the province seeks investment in the fields of aquaculture, energy, seaports, and logistics to develop trade services, tourism and coastal urban areas.

Of the total 50,000 ha to be reclaimed from the sea, the land reclamation in Binh Dai district will be the largest with about 21,000 ha, followed by Thanh Phu district with 15,000 ha, and Ba Tri district about 14,000 ha.

Developing fisheries, energy, transportation, and logistics is considered as sea-based economic spearheads that will help the province to go prosperous, Tam said."The reclaimed sea area in the east of Ba Tri - Binh Dai - Thanh Phu districts is identified as an important driving economic zone that brings opportunities to help Ben Tre become a fairly developed province, a livable locality in the Mekong Delta in particular and the whole country in general," Tam said.

The province has been promptly implementing preferential mechanisms and policies to realise the goals.

The provincial official said that for investment projects in the three coastal districts of Ba Tri, Binh Dai, and Thanh Phu, investors will enjoy a policy of land rent exemption for 11 years after finishing basic construction; the highest preferential corporate income tax rate of 10% applied for the first 15 years, and the 4-year exemption and 50% reduction of tax payable for the next nine years.

For projects with private investment, in addition to incentives offered by the Government, investors will enjoy specific incentive mechanisms and policies for specific localities.

For infrastructure investment in industrial parks and industrial clusters, investors will enjoy incentives in terms of land rent exemption and reduction, and area-based preferential tax rates.

Investors will also be supported with compensation costs for site clearance up to 20% when investing in industrial cluster infrastructure and up to 30% in industrial park infrastructure. The maximum land lease term is 50 years.

When investing in projects in Chau Thanh, Giong Trom, Cho Lach, Mo Cay Nam, and Mo Cay Bac districts, investors will exempted from land rent for seven years after the end of the basic construction period. Investors will enjoy tax incentives at a corporate tax rate of 17% applied for the first 10 years, and a 2-year exemption and 50% reduction of tax payable for the next four years.

In case there is no taxable income in the first three years, from the first year of revenue from the new investment project, the tax reduction and exemption period will be calculated from the 4th year.

In addition, Ben Tre has also issued policies and regulations on investment incentives for secondary projects inside and outside industrial parks; and policies for investment projects in rural agriculture and a resolution stipulating a number of specific policies to support start-ups, leading enterprises, small- and medium-sized enterprises in the province.

Preferential policies on tax, land lease, and support for human resource training are built by the province in the direction of the highest incentives compared to the whole country.

In particular, investors only need to work with a single contact point at the Investment Promotion and Start-up Centre to get support.

In the first nine months of 2024, Ben Tre issued investment registration certificates for five projects, including a foreign direct investment (FDI) project with registered capital of 2.65 million USD and four domestic ones with registered capital of 82.75 billion VND (3.3 million USD).

Up to now, the province has had 330 valid investment projects inclduing 68 FDI projects with a total registered capital of more than 1.659 billion USD and 262 domestic projects with a total registered capital of over 59.5 trillion VND./.

Vietnam's potential in food industry introduced at Malaysian expo

Potential for cooperation between Vietnam and Malaysia, particularly in the food industry, has been introduced to Malaysian partners and attendees within the framework of the ongoing Selangor International Business Summit (SBIS) 2024 in Kuala Lumpur.

In his presentation, Vietnamese Commercial Counsellor in Malaysia Le Phu Cuong highlighted the remarkable growth and potential of the country’s food sector. With a population of approximately 100 million and a predominantly young workforce, Vietnam has effectively carried out its agricultural export strategies, focusing on key products such as rice, coffee, and high-quality fresh fruits.

In 2023, Vietnam's total export value of agricultural products reached 26.4 billion USD, up 17% compared to 2022. While imports of Vietnamese goods declined in Europe and the Americas, the Asian market saw a 6.8% increase in imports of agro-forestry-aquatic products.

Vietnam's key staples exported to Malaysia include tea, coffee, pepper, and rice, with rice exports alone reaching over 345 million USD last year. Notably, in the first eight months of this year, Malaysia imported as much rice from Vietnam as it did throughout 2023. Several Vietnamese fruit products, such as longan, lychee, passion fruit, and red-fleshed dragon fruit, have gained popularity in the Malaysian market.

Cuong expressed his enthusiasm about the growing number of Vietnamese businesses collaborating with the Vietnam Trade Office to showcase their products in Malaysia. He went on to say that the trade office committed to supporting businesses in finding partners and facilitate their entry into the Malaysian market, aiming to promote Vietnamese goods on the world market.

SIBS is an eagerly anticipated annual event for businesses, serving as a vital platform to promote cross-border trade, facilitate connections, showcase creativity, and expand business networks throughout the Association of Southeast Asian Nations (ASEAN). The event generated potential transaction values of up to 4 billion USD last year.

Running from October 16-19, this year’s edition features over 650 food and beverage exhibition booths and several workshops on halal standards, smart cities, and digital economy. It is expected to welcome around 12,000 visitors from 18 countries and territories, including Indonesia, China, Japan, the Republic of Korea, Vietnam, Thailand, Kenya, and Myanmar./.

Low interest loan programme launched for high-quality rice cultivation

The State Bank of Vietnam (SBV) has launched a programme offering low-interest loans to farmers to serve sustainable rice production in the Mekong Delta.

The programme is a step towards realising the Government’s goal of cultivating 1 million hectares of high-quality rice cultivated in the delta by 2030, with low carbon emissions from farming.

The goal was specified in Decision 1490, issued by the Prime Minister on November 27, 2023.

Under the SBV’s guidance, credit institutions are required to offer farmers and rice producers a preferential loan interest rate that is at least 1% lower than the rate currently applied to customers of the same loan term, or in the same customer segment.

This is intended to help borrowers meet the short, medium, and long-term capital needs for all stages of the rice supply chain, from production and purchasing to processing and consumption.

The credit institutions must proactively balance their capital sources and reduce costs to offer the preferential rate, the SBV said.

The loan programme will be implemented in two phases.

The first phase is a pilot phase, which will run until the end of 2025, with the Vietnam Bank for Agriculture and Rural Development (Agribank) serving as the main lending bank.

The second phase will be from the end of the pilot until 2030, carried out by other banks and credit institutions.

The SBV has sent guiding documents to the People's Committees of provinces and cities in the Mekong Delta, as well as to credit institutions, foreign bank branches, and its branches in the delta, regarding the implementation of the programme.

However, the total capital needed to be raised is unclear at the moment, as the actual costs for different stages of rice production have not been identified by the Ministry of Agriculture and Rural Development and the People’s Committees of concerned cities and provinces.

In principle, the disbursement capacity depends on the actual capital absorption capability of rice producers and other participants in the rice supply chain./.

US extends issuance of final findings of anti-dumping duties on Vietnamese honey

The US Department of Commerce (DOC) has announced an extension for issuing the final findings of the first administrative review of the anti-dumping duties over honey products imported from Vietnam, according to the Ministry of Industry and Trade's Trade Remedies Authority.

Accordingly, the issuance of the administrative review results will be extended to January 7, 2025 instead of November 12, 2014.

The DOC said it needs more time to analyse the summary and rebuttal documents of the case, which will be submitted after the DOC issues its verification report.

The Trade Remedies Authority recommended relevant associations and export businesses to closely follow the DOC’s announcements and fully cooperate as required to best protect their rights and interests./.

Some 41% of Vietnamese businesses embark on transformation: conference

Some 41% of Vietnamese businesses have begun a transformation focusing on operation and processes, organisational structures and workforce, and customer experience, a conference heard in Ho Chi Minh City on October 15.

Organised by Talentnet, the two-day conference themed "Foster Green Dynamics” featured more than 20 leading global innovation strategists who spoke about AI and green workforce, collaboration and compensation.

It attracted more than 1,000 attendees, including business leaders and HR experts from top companies in the country.

Speaking at the event, Tieu Yen Trinh, CEO of Talentnet Group, said 41% of Vietnamese businesses started their transformation in the last three years, 25 percentage points lower than foreign companies (66%).

But 46.1% of businesses are satisfied with their transformation progress, a figure notably higher than the global average (25%), showcasing the confidence of Vietnamese businesses in their approach, she said.

Trinh said 62.5% are focused on operation and process enhancement, 50% on improving their organisational structure and workforce and 47.9% on the customer experience.

She offered several recommendations to help businesses optimise their transformation in a volatile market environment, saying: “An effective transformation strategy must stem from the company’s purpose and needs. But for each business, this is a different variable. Therefore, I believe the key is to maintain consistency in purpose but remain flexible in approach.”

She added that once the purpose is clear, businesses can apply the 3Cs, Communicate, Collaborate, and Commit, communicating to align their internal vision on transformation goals, collaborating both within and outside the company to drive transformation, and remain committed to established goals.

AI driving businesses towards sustainable future

In his presentation “Powering Your Organisation with AI,” Mitchell Pham, advisor to APEC governments on advancing digital economies and an Asia 21 Fellow and Global Council Member of the Asia Society, emphasised the importance of adapting AI in all aspects of an organisation to enhance productivity and innovation.

He said the rapid growth of AI, from basic models to deep learning systems and big data, is becoming mainstream and driving innovation.

He said technology has many diverse forms, and so transformation within organisations not only relates to technology but also requires changes in people, processes and governance.

Soft skills like critical thinking and teamwork are crucial in the AI era, and in governance, AI must be applied safely, ethically, inclusively, and in compliance with legal regulations, he said.

Furthermore, AI is seen as a key factor in driving green technology and addressing complex environmental issues that traditional solutions could not solve, he said.

“With technology, you don’t need to predict the future - you create it.”

‘SuperCollaboration’ formula between humans, AI

James Taylor, an award-winning speaker and internationally recognised leader in creativity and innovation and an advisor to CEOs & entrepreneurs in many parts of the world, highlighted the role of creativity and the “SuperCollaboration” formula between humans and AI to drive sustainable business development.

“The first skill needed in the AI era is creativity - the ability to create, develop and implement new ideas to drive innovation and optimise technology,” he said, stressing that practical and useful ideas are the foundation for breakthrough innovations, often stemming from the combination of creative minds and critical thinkers.

“SuperCollaboration is the ability that every individual employee has today to augment their human creativity by collaborating with exponential technologies like artificial intelligence, IoT and robotics.”

Research by Harvard University claimed that with the help of AI tools like ChatGPT, consultants at Boston Consulting Group worked 25% faster and produced 40% better quality work than their colleagues who did not use AI, he said.

Even for experts, AI could help push the limits of creativity, he said.

He encouraged businesses not only to use AI for automating tasks but also to unlock its potential to push the creative boundaries of their talent.

The collaboration between AI and humans would be a crucial factor shaping the future of businesses, he claimed.

Participants also gained insights into expanding cooperation through building trust in national brands, understanding the role of HR, and investing in talent, and others.

Talentnet also unveiled its Talentnet-Mercer Salary Survey with in-depth data across various industries, and introduced the concept of Pay Agility, a new global trend that is beginning to take shape in Vietnam in various forms./.

Exhibition features key industrial products of Hanoi

An exhibition showcasing key industrial products of Hanoi opened in the capital city on October 16, featuring more than 200 booths.

Speaking at the event’s opening ceremony, Nguyen Kieu Oanh, Deputy Director of the Hanoi Department of Industry and Trade said the exhibition aims to promote industrial production growth, investment, trade and export. It serves as a platform to connect key industrial enterprises in the city and nationwide with those of countries with developed industries, thus contributing to the overall development of the city, she noted.

Le Van Quang, Business Director of Vietnam T-Tech Technology Corporation, said that the company brings high-quality products to the fair, including household waste incinerators with capacities ranging from 330kg to 200 tonnes per day, industrial waste incinerators and environmental treatment equipment.

Currently, it boasts 100 projects in 32 provinces and cities across the country, and are operating three waste treatment plants in Nghe An and Phu Yen provinces with a total capacity of processing 240 tonnes of garbage per day.

Through this exhibition, the group hopes to seek more potential customers and continue to expand into the Southeast Asian market, Quang said.

The exhibition will run until October 18./.

Binh Duong eyes semiconductor, high-tech development

The southern province of Binh Duong is focusing on facilitating investment in semiconductor and high-tech industries to leverage its advantages in these fields.

Nguyen Van Loi, Secretary of the provincial Party Committee, said that the province will develop a 220ha concentrated innovation and information technology zone with four sub-areas in Binh Duong New City.

The site will research, develop and conduct technology transfers of new technologies and products, as well as train and attract a high quality workforce.

Loi said that Vietnam has a big opportunity to participate more deeply in global semiconductor supply chains, and that Binh Duong is one of the dynamic and comprehensive development hubs of Southeast Asia, and excels in science, technology and innovation.

Binh Duong is focusing on attracting high-tech companies, especially those in the semiconductor industry. Its 2021-2030 development plan also highlighted that the province will develop this industry.

The province vows to create a favourable investment climate for high-tech businesses and help them work through administrative and customs procedures quickly.

It will improve its infrastructure linked with airports and seaports, along with other policies to support high-tech companies and attract high quality workers to suit their demand.

Binh Duong prioritises attracting investment in the fields of high-tech, semiconductor, green energy and the circular economy, as well as logistics, supporting industry and high-tech agriculture, with a focus on projects that provide high added-value and are not labour-intensive.

It has also asked local universities to create plans for educating and training high quality workers for high-tech industries.

Nguyen Loc Ha, Vice Chairman of the provincial People’s Committee, said that with its favourable location and drive to create a good investment climate, the province has attracted over 4,300 foreign direct investment projects from 65 countries and territories, with total registered capital of around 42 billion USD, ranking it third in Vietnam in terms of FDI attraction.

Binh Duong also leads the country in infrastructure development, and it pays a great deal of attention to building smart urban areas.

Last year, the Intelligent Community (a global network of cities and regions which focuses on facilitating economic development in the digital age) named Binh Duong as the 2023 Intelligent Community of the Year.

The network’s website describes Binh Duong New City as being “home to a growing number of Techlabs and Fablabs located in schools, universities and vocational colleges around the region.”

Last week, the province organised a working session with international experts on semiconductors to discuss the province’s potential in this industry.

Semiconductor experts from Digitimes Inc, a Taiwanese media outlet that focuses on the global semiconductor, IT, consumer electronics and communications industries, shared experiences for developing supply chains in technology and semiconductor.

They also shared lessons and experiences in developing semiconductor production investment projects and the role of the government in building policies to support the industry.

According to Digitimes Inc, with the planned concentrated innovation and information technology zone and other high-tech parks in Binh Duong New City, along with other science and technology parks in the southern key economic zone, Binh Duong is expected to become an attractive destination for high-tech companies.

Vietnam has a large supply of essential rare-earth elements for semiconductor chip production and a young population capable in STEM fields, giving it the chance to become one of the world’s semiconductor and electronic hubs.

In the next five years, Vietnam will witness massive growth in technology and electronics, but the country will need a clear roadmap to develop related supply chains./.

Exhibition features key industrial products of Hanoi

An exhibition showcasing key industrial products of Hanoi opened in the capital city on October 16, featuring more than 200 booths.

Speaking at the event’s opening ceremony, Nguyen Kieu Oanh, Deputy Director of the Hanoi Department of Industry and Trade said the exhibition aims to promote industrial production growth, investment, trade and export. It serves as a platform to connect key industrial enterprises in the city and nationwide with those of countries with developed industries, thus contributing to the overall development of the city, she noted.

Le Van Quang, Business Director of Vietnam T-Tech Technology Corporation, said that the company brings high-quality products to the fair, including household waste incinerators with capacities ranging from 330kg to 200 tonnes per day, industrial waste incinerators and environmental treatment equipment.

Currently, it boasts 100 projects in 32 provinces and cities across the country, and are operating three waste treatment plants in Nghe An and Phu Yen provinces with a total capacity of processing 240 tonnes of garbage per day.

Through this exhibition, the group hopes to seek more potential customers and continue to expand into the Southeast Asian market, Quang said.

The exhibition will run until October 18./.

Logistics greening remains challenging: Insiders

Despite the important role of logistics greening in realising the net-zero emissions goal, the work has faced many difficulties, heard a conference held in Ho Chi Minh City on October 15.

Nguyen Viet Dung, Director of the Centre for Natural Resources and Environment Communication under the Ministry of Natural Resources and Environment (MoNRE) said that green logistics, which refers to logistics activities aiming at sustainable, friendly and environmentally friendly goals, minimising negative impacts on the environment, includes transportation services, material storage and treatment, inventory control, warehousing, packaging and goods allocation locations deciding.

Vietnam currently has more than 40,000 enterprises operating in the logistics sector, making it the leading country among ASEAN members in terms of the number of logistics service providers.

However, Dung noted that in reality, Vietnamese logistics enterprises’ connectivity is poor, especially for enterprises operating in the field of road freight transport. This is a major challenge for green transformation, he held.

Tran Van Toan, Kosher Climate India’s Country Manager for Vietnam, said that more and more countries and regions have required emission reporting for production, transportation and trading of imported goods. In the context of Vietnam having an open economy deeply integrated into global trade, meeting green supply chain standards has become inevitable to avoid being eliminated from the market.

From the beginning of 2024, the European Union Emissions Trading System (EU ETS) have applied carbon emissions inventory from ships with a gross tonnage of over 5,000 tonnes.

The International Maritime Organisation (IMO) 2023 Strategy on Reduction of Greenhouse Gas (GHG) Emissions from Ships aims to reduce carbon emissions from international shipping by at least 40% by 2030 compared to 2008. The IMO is also planning to introduce carbon pricing for maritime transport.

Luong Quang Huy, from the MoNRE’s Climate Change Department said that domestic transport activities account for nearly 50% of GHG emissions in the logistics chain. Therefore, the green transport transition makes an important contribution to the greening of the logistics chain in particular and the goal of reducing greenhouse gas emissions in general, he stated.

However, encouraging people to switch to public transportation means in general and green vehicles in particular is challenging in the context of few attractive options.

For transport service suppliers, mass vehicle conversion requires large financial investments but financial support mechanisms are limited. Therefore, green transport conversion requires creative and innovative policies in operating and implementing more practical models, said Huy.

Bui Van Quy, Executive Vice President of Saigon Newport Corporation and Vice President of the Vietnam Seaports Association said that logistics activities in general, including road transport, maritime transport, aviation transport, and warehouse operations, all emit greenhouse gases. Greening the logistics chain plays an important role in solutions to reduce emissions, he affirmed.

He underlined that the major barrier to the current transformation is the high investment cost for technology. Changing the habits of operators and users of new technology is also very difficult, he said, adding that although the Government's goals are clear, each industry and field has yet to come up with specific standards and greening roadmaps.

Quy asserted that in order to promote green transition, it is necessary to raise businesses’ awareness of the urgent need of green transition to avoid the situation when their goods and services are refused and expelled from the market.

Petrol prices decrease slightly in latest adjustment

Retail sale prices of petrol products were slashed starting 3 pm on October 17 by the Ministry of Industry and Trade and the Ministry of Finance.

Accordingly, the price of E5RON92 bio-fuel was cut by VND116 per litre from the base price to be not higher than VND19,730 per litre, while that of RON95-III fell by VND99 to VND20,962 per litre at the maximum.

Meanwhile, diesel 0.05S is capped at VND18,321 per litre, down VND179 per litre. The kerosene price is not higher than VND18,627 per litre, down VND163 per litre.

Mazut oil 180CST 3.5S is now sold at no more than VND16,090 per kg, down VND179 per kg.

The two ministries also decided not to use the petrol price stabilisation fund this time.

Since the beginning of this year, petrol prices have undergone 40 adjustments, with 18 times up, 19 times down, and 3 mixed changes.d sectors develop specific green criteria and standards for each sector to provide a basis for businesses to apply. Businesses also need specialised human resources and special financial mechanisms to serve green transformation, he added./.

Vietnam's potential for food industry promoted at Malaysian expo

Potential for cooperation between Vietnam and Malaysia, particularly in the food industry, has been introduced to Malaysian partners and participants as part of the ongoing Selangor International Business Summit (SBIS) 2024 underway in Kuala Lumpur.

In his remarks, Vietnamese Commercial Counsellor in Malaysia Le Phu Cuong hailed the remarkable growth and potential of the nation’s  food sector. With a population of approximately 100 million and a predominantly young workforce, Vietnam has effectively implemented its agricultural export strategies, with a particular focus on key products such as rice, coffee, and high-quality fresh fruits.

Last year’s total export value of agricultural products reached US$26.4 billion, up 17% compared to 2022. While imports of Vietnamese goods fell in Europe and the Americas, the Asian market posted a 6.8% increase in imports of agro-forestry-aquatic products.

Vietnam's key items exported to Malaysia include tea, coffee, pepper, and rice, with rice exports alone hitting more than US$345 million last year. Notably, over the past eight months of this year, Malaysia imported as much rice from Vietnam as it did throughout 2023.

Additionally, Vietnamese fruit products, such as longan, lychee, passion fruit, and red-fleshed dragon fruit, have gained popularity in the Malaysian market.

According to Cuong, the trade office pledged to support businesses in seeking partners and facilitate their entry into the Malaysian market, aiming to promote Vietnamese goods on the world market.

SIBS is an eagerly anticipated annual event for businesses, serving as a vital platform to promote cross-border trade, facilitate connections, showcase creativity, and expand business networks throughout the Association of Southeast Asian Nations (ASEAN). The event generated potential transaction values of up to US$4 billion last year.

This year’s four-day event features over 650 food and beverage exhibition booths and several workshops on halal standards, smart cities, and digital economy. It is expected to welcome as many as 12,000 visitors from 18 countries and territories, including Indonesia, China, Japan, the Republic of Korea, Vietnam, Thailand, Kenya, and Myanmar.

VNA/VNS/VNN/VOV