Bình Dương Province is planning a pilot project to establish two free trade zones in Dĩ An City and Bàu Bàng District as part of the transition to a new growth model for the province.

Creating the free trade zones is expected to ramp up economic growth in the area following the province’s master plan for the 2021-2030 period. According to a representative from the Bình Dương Department of Industry and Trade, the province's growth model is shifting from a reliance on traditional industries to a modern industrial model and the digital economy.

These free trade zones will be designed with the goal of becoming regional and international trade hubs, supporting exports and providing logistics and financial services.

This will help Bình Dương not only maintain its position as one of the provinces with the largest foreign investment in the country, but will also improve the quality of investment, particularly in high-tech sectors, supporting industries and services.

To expedite and effectively implement the free trade zone development plan, Bình Dương intends to establish a high-level steering committee with the participation of key agencies, including the Department of Planning and Investment, the Department of Industry and Trade and other relevant groups.

This steering committee will be responsible for overseeing and assisting in resolving any issues that arise during the project’s implementation.

According to Phạm Văn Xô, Chairman of the provincial Import-Export Association, the construction of the two free trade zones will create opportunities for export-import businesses and open up new paths for processing industries, supporting industries and financial and logistics services in Bình Dương.

Domestic businesses will get the chance to access new technologies, foreign investment and international markets through preferential policies and free trade mechanisms.

Notably, the free trade zones will create favourable conditions for the robust development of supporting industries. This is an area Bình Dương is focusing on to reduce reliance on imported materials and strengthen domestic production capacity.

The promotion of logistics, financial services and international trade within the free trade zones will also help Bình Dương attract more multinational companies and expand access to international markets.

This will drive new growth for the province and enhance the competitiveness of Việt Nam’s economy in the context of global integration.

State bank urges credit growth, consumer lending

The State Bank of Vietnam (SBV) has issued a document requesting banks and credit institutions apply measures to boost consumption and spending.

The document follows Directive 29 issued by the Prime Minister on August 27, which focuses on stimulating consumer demand, supporting production and business, and developing the domestic market.

SBV asked credit institutions to continue implementing safe and effective credit growth solutions, as well as directing credit towards production and business sectors, priority areas and growth drivers.

Lenders are also urged to research and develop credit products and banking services specifically for consumer lending, and to enhance loans for consumer needs.

They should also maintain stable deposit interest rates, accelerate the implementation of lending through electronic and online forms and use digital tools to simplify loan processes and procedures.

SBV also requested that credit institutions proactively implement preferential credit programmes and policies, especially those that support social housing projects for low-income individuals and industrial workers.

Credit institutions are also encouraged to actively restructure debt repayment terms and maintain debt groups for customers facing difficulties, as specified in the State Bank’s Circular 02 from 2023.

They should also proactively review and assess the quality of credit grants and business operations, along with customers' repayment capabilities, to consider offering alternative solutions for customers and ensure that State policies reach the right people and businesses in a timely manner.

Lenders are also asked to continue implementing tasks and solutions in accordance with government plans to develop digital banking through 2030, and further improve the national population database.

Agricultural enterprises urged to adopt inclusive business models to create breakthroughs

Agricultural enterprises should adopt inclusive business (IB) models to create competitive advantages and achieve breakthrough development in the context of Việt Nam striving for net zero by 2050, experts have said.

Trịnh Thị Hương, Deputy Director of the Corporate Development Department under the Ministry of Industry and Trade, said at a conference on promoting IB in the agricultural sector in Việt Nam held by the ministry and the ASEAN Secretariat on Tuesday, that climate change is heavily impacting production and business, raising a pressing need for sustainable development.

“Sustainability becomes an inevitable trend,” she said, urging enterprises to adopt the IB model.

“The IB model is a useful approach that is being promoted worldwide to enhance business competitiveness. This model helps enterprises conduct business activities that not only generate profits but also encourage stakeholders to participate in sustainable production and business, turning the burden of compliance into an advantage,” Hương said.

ASEAN has been strongly pushing the IB model. ASEAN defines inclusive businesses as those that provide goods, services and livelihoods on a commercially viable basis, either at scale or scalable, to people at the base of the economic pyramid (BOP), making them part of the value chain of companies’ core businesses as suppliers, distributors, retailers or customers.

The Vietnamese Government has committed to achieving net zero by 2050. To achieve this ambitious goal, enterprises play an important role and IB is considered a central solution for them to move forwards with sustainability.

Sharing the experience of Quang Vinh Ceramic, which won the ASEAN IB Award, the company’s director Hà Thị Vinh said that the adoption of IB has helped create significant social values and expand markets. The company’s ceramic products are now exported to more than 20 markets including Japan, the US and Australia.

According to Jason Lusk, a representative from consulting firm Clickable Impact, the IB model brings multi-dimensional benefits to the Government, businesses and low-income people. For those on a lower income, this model creates job opportunities and brings stable incomes. For the Government, IB promotes economic growth. For businesses, the model helps expand markets and enhance brand value.

However, he pointed out that IB remains a new concept to a majority of enterprises, especially small and medium sized operations. Many are not fully aware of the benefits that IB model brings.

Priority should be given to improving enterprises’ awareness of IB together with providing supports to encourage them to adopt the model in Việt Nam, he said. 

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.

Hoa Phat exports new-generation refrigerators to US market

Hoa Phat Refrigeration said on October 17 that it has exported the first batch of its Double Inverter two door top-freezer refrigerators, with a capacity of 286 liters, to the US market.

The export of the new product model that meets stringent standards is expected to open up significant opportunities for Hoa Phat to establish its position and tap into the potential of this market in the future.

According to Hoa Phat, the new product has passed a series of rigorous tests on safety and fire and overheating risk prevention before being officially distributed in the US. Certifications from organizations such as CSA (Canadian Standards Association) and UL (Underwriters Laboratories) confirm that the product meets international market requirements.

With a strict quality control process, the products have obtained export certification for the US and Canada, ensuring compliance with international standards.

Notably, the Double Inverter technology is integrated into both the fan and compressor, optimizing energy savings while maintaining superior cooling performance. The multi-dimensional cooling system ensures that food is preserved under ideal conditions, keeping it fresh for longer periods.

After 23 years of development, Hoa Phat Refrigeration has established a solid manufacturing foundation, continually innovating and applying modern technology alongside strict quality control processes. The successful export of new-generation refrigerators to the US affirms the quality and competitiveness of “Made in Vietnam” products in the international market.

So far, Hoa Phat Refrigeration has exported freezers and refrigerators to a number of markets worldwide, including the US, Laos, Myanmar, Thailand, and Japan. It aims to conquer more international markets in the future, further expanding the Vietnamese brand’s footprint on the global map.

Shareholders of many banks to receive dividends soon

Many banks will pay dividends to shareholders shortly, according to information available.

Since the beginning of 2024, three State-owned banks Vietcombank, BIDV and VietinBank have not announced dividend payments to shareholders, though they have approved many profit distribution plans. However, recent market information shows that the banks may soon pay dividends in shares and increase capital.

In a recent report sent to the National Assembly’s Standing Committee, Governor of the State Bank of Việt Nam (SBV) Nguyễn Thị Hồng said that the Government will submit to the National Assembly a decision on increasing State capital at Vietcombank by more than VNĐ20.69 trillion. The additional capital will come from share dividends of State shareholders at Vietcombank.

BIDV is also expected to pay dividends as a plan was approved at the bank’s 2024 annual general meeting of shareholders.

Accordingly, BIDV will issue nearly 1.2 billion additional shares to pay dividends in 2022, equivalent to 21 per cent of outstanding shares at the end of 2023.

VietinBank’s chairman Trần Minh Bình said that the SBV and the Ministry of Finance allowed the bank to retain all 2022 profits of nearly VNĐ11.68 trillion to increase capital through share dividends.

Besides State-owned banks, a number of private banks also plan to pay dividends soon.

After paying a ten per cent cash dividend in July, HDBank is implementing a plan to pay dividends in shares at a rate of 20 per cent, according to a resolution approved by the bank’s annual general meeting of shareholders.

After issuing shares to pay dividends, HDBank's charter capital will increase by a maximum of nearly VNĐ5.83 trillion to more than VNĐ35.9 trillion, which will help the bank continue to be in the group of banks with the largest charter capital in the country’s banking system.

Vietbank has recently also announced information on issuing shares to pay dividends from retained earnings to increase its charter capital to nearly VNĐ7.14 trillion. Accordingly, the bank will pay share dividends in 2024 at a rate of 25 per cent, which is quite high compared to the general market level.

At the extraordinary general meeting of shareholders due on November 15 this year, LPBank will seek shareholders' opinions on issuing shares to existing shareholders to pay dividends at a rate of 16.8 per cent, with the aim of increasing its charter capital in 2024.

After paying a 30 per cent dividend in shares last month, MSB also has a policy of paying dividends at a maximum rate of 15 per cent in cash or/and shares from profits in 2024, along with retained profits of previous years. If business results meet expectations, MSB said it can make an advance cash dividend payment in the fourth quarter of this year. 

Bank stocks help VN-Index snap three-day losing streak

The stock market rebounded on Thursday, with the VN-Index breaking a three-day losing streak, despite foreign investors continuing their selling trend.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index rose by 7.04 points or 0.55 per cent, to close at 1,286.52 points.

Market breadth was positive, with 183 stocks advancing and 110 declining. Liquidity on the southern bourse improved slightly, reaching VNĐ15.7 trillion (nearly US$622.2 million), up 18 per cent compared to the previous session.

The VN30-Index, which tracks the 30 largest stocks by market capitalisation on HoSE, also increased by 8.79 points, or 0.65 per cent, to 1,362.89 points. Twenty-three stocks in the VN30 basket rose, while seven declined.

Data compiled by financial website vietstock.vn showed that the Bank for Foreign Trade of Vietnam (VCB) was the biggest gainer on the market, with its shares rising by nearly 0.8 per cent, contributing more than 0.95 points to the VN-Index's gains.

It was followed by the Bank for Investment and Development of Vietnam (BID), whose shares increased by 0.9 per cent, the Military Commercial Joint Stock Bank (MBB), up 1.57 per cent and the Saigon Thuong Tin Commercial Joint Stock Bank (STB), which rose by 2.98 per cent.

Some sectors posted losses, putting slight pressure on the overall market, with decliners including the Ho Chi Minh City Development Joint Stock Commercial Bank (HDB), PetroVietnam Gas Joint Stock Corporation (GAS) and Saigon Beer - Alcohol - Beverage Corporation (SAB).

According to experts from Viet Dragon Securities: "Liquidity increased compared to the previous session, indicating that profit-taking pressure remains high. The market is approaching the 1,290-point level, which continues to offer support and temporarily helps limit the decline while demand and supply are tested. However, recent supply signals may pose challenges and increase risks for the market in the coming sessions.

"Investors should closely monitor supply and demand dynamics around support levels to assess the market's condition. It is advisable to maintain portfolio proportions at reasonable levels and consider restructuring during this rebound to reduce risks."

On the Hà Nội Stock Exchange, the HNX-Index also ended higher, rising by 0.81 per cent to 230.12 points. During the session, over 50 million shares were traded on the northern bourse, worth more than VNĐ973 billion.

Foreign investors extended their selling streak for a fifth consecutive session, recording a net sale of over VNĐ402 billion on the HoSE.

The future of mini cars in Việt Nam looks promising

The mini car market in Việt Nam is poised for significant evolution, driven by changing consumer preferences, emerging trends and favourable macroeconomic conditions, according to car experts.

They said mini cars are increasingly attractive to Vietnamese consumers due to their lower price points compared to larger vehicles. Their compact size makes them ideal for manoeuvering through narrow streets and crowded urban areas, where parking space is often limited. This practicality addresses a crucial need for convenient transportation in rapidly urbanising environments.

With rising fuel prices and growing awareness of environmental issues, fuel efficiency has become a significant consideration for many buyers. Mini cars are typically more fuel-efficient, appealing to consumers who prioritise economical and sustainable transportation options.

One of the most significant trends is the rising popularity of electric and hybrid mini cars. The Vietnamese government is actively promoting the use of electric vehicles (EVs) to mitigate pollution and decrease reliance on fossil fuels. As incentives and charging infrastructure improve, automakers are likely to introduce more electric and hybrid models to meet consumer demand. Advances in battery technology further enhance the attractiveness of these vehicles, improving their range and performance.

Vietnamese consumers are increasingly seeking personalised vehicles that reflect their preferences. In response, manufacturers are offering a variety of customisation options, allowing buyers to choose colours, styles and accessories that suit their individual tastes. This trend is particularly appealing to younger consumers and the growing middle class, who are looking for cars that align with their lifestyle.

The Vietnamese Government has implemented favourable policies to promote the mini car segment, including tax incentives for small and fuel-efficient vehicles. Additionally, investments in infrastructure — such as expanded road networks and parking facilities — help to accommodate the anticipated growth in mini car ownership.

Việt Nam's robust economic growth and rapid urbanisation are contributing to increased demand for efficient and affordable transportation. As more individuals join the middle class, their purchasing power rises, making mini cars more accessible. This demographic shift is crucial for the market's expansion.

The entry of companies like VinFast signals significant interest in the mini car market. Their announcement of a super small two-seater model has captured public attention and reflects the increasing diversity in the automotive landscape. While mini cars have been available in Việt Nam for some time — such as the Smart ForTwo and Toyota C+pod — VinFast's commitment to affordability and innovation could invigorate this niche market.

The mini car segment in Việt Nam, though still considered niche, is on the verge of substantial growth. With the combination of affordability, urban practicality, a push towards electrification and supportive government policies, this market is expected to flourish.

As manufacturers continue to innovate and respond to consumer preferences, the future of mini cars in Việt Nam looks promising, offering efficient and economical solutions for the evolving needs of urban residents. 

First batches of Vietnam’s fresh coconuts enter China

The first batches of fresh coconuts from Vietnam have arrived in China via land border gates between the two countries.

On October 15, a refrigerated truck carrying 2,700 fresh coconuts of Vietnam cleared customs at the Hekou border gate of China’s Yunnan province, which is adjacent to the Lao Cai border gate of Vietnam’s Lao Cai province.

The produce, totalling 21.6 tonnes and 110,000 CNY (about 15,000 USD), hailed from the Mekong Delta province of Ben Tre.

The same day, another batch was delivered to the neighbouring market via the Youyi Guan border gate of Pingxiang city, China’s Guangxi Zhuang Autonomous Region. Also coming from Ben Tre, it weighed 22.4 tonnes and was worth 98,000 CNY.

Vietnam’s fresh coconuts were licensed to be exported via the official channel to China in August.

During the first nine months of 2024, the Hekou customs unit handled the import of 734,000 tonnes of Vietnamese fruits worth 8.11 billion CNY, respectively rising 26.9% and 143.5% year on year, statistics show.

Meanwhile, since the Regional Comprehensive Strategic Partnership (RCEP) took effect on January 1, 2022, Vietnam has seen four more fruits licensed to enter China via the Youyi Guan border gate, namely durian, banana, water melon, and coconut.

The successful export of Vietnam’s fresh coconuts is the latest evidence of efforts to promote the shipment of high-quality farm produce to China and further intensify bilateral trade ties, helping carry out the joint statement on the two countries’ relations./.

Vietfood & Beverage - Propack Vietnam 2024 to be held in Hanoi

The 10th international exhibition on food, beverages, food processing and packaging technology equipment - Vietfood & Beverage - Propack Vietnam 2024 - will take place in Hanoi from November 6 – 9.

The event will be featured with 350 booths of 300 exhibitors from eight countries and territories. It is expected to welcome more than 10,000 visitors.

According to the event organiser - Vinexad Company, a similar exhibition was held in Ho Chi Minh City in August.

The company said that the F&B industry has contributed to the Vietnam's economic growth in recent years thanks to its advantages such as a market of nearly 100 million people, abundant and quality raw materials, and diverse production and processing facilities.

The International Monetary Fund (IMF) forecasted that the Vietnamese F&B industry market will reach 655 trillion VND (nearly 26 billion USD) this year, 10.92% higher compared to that of 2023. Vietnam will become one of the countries with outstanding development in the next five years.

With the emergence of new F&B business models and the boom of food review and restaurant check-in trend in social networks, companies in the F&B industry in Vietnam are facing much tougher competitions, which make them to constantly change and find new ways to approach the market. Such events like the Vietfood & Beverage - Propack Vietnam 2024 are expected to bring opportunities for companies in F&B to meet, exchange and establish effective partnerships./.

Experts optimistic about Vietnam-Australia relationship future

The Australia-Vietnam Policy Institute (AVPI) Conference 2024 was held in Adelaide city on October 17, under the theme of “Embracing transition, transformation and trust: Exploring the future of the Australia-Vietnam relationship”.

The event brought together over 130 delegates who are esteemed experts and scholars specialising in Vietnam-Australia relations, as well as representatives from the two countries’ businesses. They discussed and explored emerging opportunities while analysing the importance of building and maintaining trust, and identifying solutions to enhance bilateral cooperation across all sectors, contributing to their development and prosperity in the coming time.

They reviewed significant progress in bilateral relations over the past year and explored how Australian businesses, investors, and organisations can leverage the opportunities brought about by the upgraded ties between Vietnam and Australia to a comprehensive strategic partnership in March.

Regarding Vietnam's economic outlook, participants agreed that the export-oriented manufacturing sector, strong domestic demand, and increasing global economic integration have become key factors turning Vietnam into one of the fastest-growing economies in Southeast Asia.

They also analysed the dynamics behind Vietnam's GDP growth and explored its development direction, including necessary reforms, global conditions, and market factors to ensure future growth.

Talking to the Vietnam News Agency’s reporters on the sidelines of the conference, AVPI co-founder Layton Pike said that Vietnam has achieved remarkable economic successes in recent years, marked by continuous high GDP growth and improved living standards. The country's ongoing economic integration, facilitated by foreign policy linkages, plays a crucial role in attracting more foreign direct investment and helping it manage the challenges of developing its own industries and economy.

A crucial factor for achieving this is the development of human resources and the establishment of more specialised universities in Vietnam will be vital for the country's long-term development as it transitions to a middle-income and subsequently a high-income nation, Pike said, advising it to pursue its domestic economic reform agenda and international integration.

Regarding Australia-Vietnam relations, he stated that the bilateral relationship is at an all-time high and holds great promise for optimism in the future.

Dr. Le Thu Huong, Chair of the AVPI Advisory Board, noted that Vietnam is on a strong economic growth trajectory, showing stable and impressive growth compared to other regional countries.

She stated that Vietnam is seeing many opportunities ahead as in the current context of geopolitical tensions and increasing trade competitions which have disrupted global supply chains, Vietnam has managed to assert its position and successfully attract investment.

The policies of "bamboo diplomacy" and "befriending with all countries" have greatly benefited Vietnam's economy, Huong assessed.

Leigh Howard, CEO of Asialink Business at the University of Melbourne and a member of the AVPI Advisory Board, stated that Vietnam's economic outlook remains strong, driven by demographics, a growing digital economy, renewable energy transition, and strategic trade partnerships.

Growth opportunities exist in clean energy, technology, and manufacturing. However, one of the challenges facing Vietnam is to navigate the headwinds of the global economy, supply chain disruptions, and to promote the necessary legal reforms to continue opening up and modernising its economy.

Giving a positive assessment of the prospects for Vietnam-Australia relations, he noted that the bilateral relationship will further develop thanks to shared economic interests in key areas such as renewable energy, agriculture, and education./.

Vietnam rises four places in economic freedom ranking

Vietnam is 99th out of the 165 countries in the Economic Freedom of the World ranking by Canada’s Fraser Institute, up four places from last year.

The institute has released its annual report with 2022 data. The rankings measure the degree to which the policies and institutions of countries are supportive of economic freedom, considering five metrics: size of government, legal system and property rights, sound money, freedom to trade internationally, and regulation.

Vietnam's scores and rankings improved continuously in the three consecutive years of 2020, 2021, and 2022. However, that was the time when the whole world had to fight the COVID-19 pandemic, so many countries have applied measures that significantly affected the economic freedom of their people.

In ASEAN, Singapore ranked second, Malaysia 29th, Philippines 59th, Indonesia 59th, and Thailand 65th.

In addition to Vietnam, four other ASEAN countries also have their rankings improved, namely Cambodia (up four places), Indonesia (two), Malaysia (14), and Philippines (nine).

In East Asia, Japan ranked 11th (up four places), followed by Taiwan (China) (19th, down eight places), and the Korea of Republic (32nd, up 13 places). China is ranked 104th, lower than Vietnam, but also up three places./.

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