An UK-Vietnam business forum was held in London on October 16 by the Vietnam Chamber of Commerce and Industry (VCCI) and the West London Chamber of Commerce (WLCC), bringing together businesses from the two countries.

The forum, part of activities of a delegation from the VCCI and northern Hai Duong province in the UK from October 15-18, aims to introduce potential, business and investment opportunities in Vietnam in general and Hai Duong in particular to UK enterprises and connect the business communities of both sides to cooperate more effectively, making the most of the UK-Vietnam Free Trade Agreement (UKVFTA).

Addressing the event, Ambassador to the UK Nguyen Hoang Long said since the two countries established the strategic partnership in 2010, trade between Vietnam and the UK has rose over three times, hitting almost 7 billion USD last year. Together with the implementation of the UKVFTA and the UK's joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), bilateral trade between Vietnam and the UK could double the figure of 2022 thanks to the growth of trade-service - the sector accounts for 70% of the UK economy, Long added.

The Ambassador said educational cooperation has also grown strongly with more than 100 educational collaboration projects between the universities of the two countries. The number of Vietnamese students studying in the UK increased to 15,000 from 4,000 in 2010.

With a fast-growing economy as well as young and dynamic human resources, Vietnam, including Hai Duong, is a potential destination for British investors, especially in the fields of trade, education, and green growth, he continued.

VCCI Vice President Nguyen Quang Vinh said that despite achieving positive results, bilateral trade is still not commensurate with the development of relations between the two countries.

According to him, businesses of the two countries need to make more efforts to strengthen connections and promote trade, saying that the two sides have many opportunities for cooperation in fields such as green finance, agriculture and technology.

Vinh pledged that VCCI will always act as a bridge supporting British businesses in investing and doing business in Vietnam, and connecting Vietnamese businesses with reputable partners in the UK.

At the forum, Chairman of the Hai Duong People’s Committee Trieu The Hung briefed participants on the advantages of the province which is located in the northern key economic region with a favourable geographical location, convenient traffic connections and abundant human resources.

Currently, Hai Duong counts 518 foreign investment projects from 27 countries and territories with a combined capital of nearly 10 billion USD, including 22 projects from Europe, including the UK, valued at 374.3 million USD.

Hung said the province wants to attract investment, especially from Europe, including the UK, in the fields of processing industry, manufacturing, electrical industry, electronics, and chemical industry, high-tech agriculture and ecotourism, among others.

Alan Rides, CEO of the WLCC, said that their bilateral trade has increased significantly since the signing of UKVFTA, adding that UK exports to Vietnam currently amount to 1 billion GBP (1.22 billion USD) per year while Vietnam is exporting goods worth around 6 billion GBP per year to the UK.

The UK can export pharmaceuticals and educational services, finance, insurance and many other services to Vietnam while Vietnam can export food, seafood and furniture to the UK.

Rides affirmed that, as the second largest chamber of commerce in London, specialising in connecting and promoting trade and business cooperation between the UK and emerging and developing economies, the LWCC is ready to support Vietnamese businesses exploring business opportunities in the UK.

Long An promotes trade links with RoK firms

The Mekong Delta province of Long An’s Department of Industry and Trade on October 18 held a business networking event for local firms to meet and exchange information with the Vietnam Trade Office in the Republic of Korea (RoK) and a Korean business delegation.

At the event, Chairman of the RoK-based Zenith Group Kim Jung Ryoo said that with a strong presence in e-commerce and the food industry, Korean enterprises are hopeful about cooperation opportunities in Long An. They are primarily interested in importing frozen products like fruits and vegetables, researching the establishment of new technology rice processing factories, and developing infrastructure and green energy in the province.

Duong Truc Giang, head of the local investment and entrepreneurship club, stressed that the club is currently focusing on developing ecological zones and is inviting businesses to invest in this sector to diversify related products and services.

Director of the department Huynh Van Quang Hung committed to keeping Long An open and ready to welcome investors.

It is worth noting that the province is home to more than 1,215 FDI projects worth 10.5 billion USD from 40 countries and territories. RoK businesses invested nearly 1 billion USD in 207 projects among them, ranking second and third in terms of the number of projects and capital, respectively.

Forum discusses sci-tech application in agriculture value chain

The Ministry of Agriculture and Rural Development (MARD), in collaboration with the US Department of Agriculture and CropLife Asia, held a forum in Hanoi on October 18 to discuss the application of sci-tech and innovation toward sustainable agricultural development.

In his opening speech, Deputy Minister of Agriculture and Rural Development Phung Duc Tien affirmed that Vietnam has set to become a transparent, responsible and sustainable food producer and supplier in the near future.

In this regard, Vietnam is planning to transition its food system toward a 'green', low-emission and sustainable model, promote the application of sci-tech and innovation in agricultural production, expand public-private partnerships and facilitate the adoption of digital technology in agricultural value chains.

In the first nine months of this year, Vietnam earned 38.48 billion USD from the export of agro-forestry-aquatic products, with cultivation contributing 19.54 billion USD, or about 50.8% of the total.

During 2020-2023, the Vietnamese scientists invented 148 crop varieties and 36 technical advances recognised by the MARD.

Tien said it is estimated that sci-tech has contributed over 35% to the success of agricultural production in Vietnam over the past years.

Domestic and foreign speakers provided a comprehensive view on the application of sci-tech and innovation in agriculture in Vietnam and around the world. They discussed the current challenges and issues in research, technology transfer and innovation for sustainable agriculture development, thereby proposing solutions to them.

At the event, the MARD’s Department of Science, Technology and Environment and the CropLife Asia signed a Memorandum of Understanding on cooperation in promoting research, development and application of advanced solutions and technologies for the 2023-2030 period.

Accordingly, both sides will step up communication activities, share information and provide policy consultation, hold training and workshops to help farmers apply new technological advances in agriculture, with the ultimate goal of promoting sustainable agriculture development in Vietnam.

Vietnam International Plastics and Rubber Industry Exhibition kicks off

The 21st Vietnam International Plastics and Rubber Industry Exhibition (VietnamPlas 2023) opened in Ho Chi Minh City on October 18, attracting 625 exhibitors from 22 countries and territories, including China, India, France, Italy, Australia, Brazil, Russia, US and Vietnam.

The four-day event features over 1,100 booths, reflecting that Vietnam is a high-potential and fast-growing market in the industry.

VietnamPlas 2023 gathers a wide range of solutions including machinery and equipment for the production and processing of plastics and rubber, raw materials category and machinery for recycling.

Currently, Vietnam's plastic and rubber industry enjoys an annual growth rate of 8%, said Judy Wang, President of Yorkers Trade and Marketing Service Co.Ltd, one of the event’s organisers.

The event offers an opportunity for domestic and foreign businesses to access the latest technologies in the plastic and rubber industry as well as explore materials for their production, she said.

Two seminars will be held within the framework of the expo, including one focusing on addressing challenges in operational management for enterprises manufacturing and distributing raw materials and additives in plastic products, along with providing solutions to these challenges. Another seminar on market insights will discuss supply chain management, digital transformation trends, and export strategies.

Vietnam-Italy economic, commercial cooperation strengthened

The 8th meeting of the Vietnam-Italy Joint Committee for Economic Cooperation was held in Rome from October 17-18.

At the meeting, co-chaired by Vietnamese Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan and Italian Undersecretary of State for Foreign Affairs and International Cooperation Maria Tripodi, the two sides discussed and assessed major economic and commercial cooperation contents, particularly in trade, energy, agriculture, industrial machines, garments, footwear and stone exploitation.

The two sides proposed and agreed on plans to be implemented in the coming time to promote import-export turnover between the two countries after an interruption since the beginning of the year.

They also talked about measures to take advantage of the European Union-Vietnam Free Trade Agreement (EVFTA) to bring the two countries’ economic cooperation to new heights in line with the joint statement released during President Vo Van Thuong’s State visit to Italy in July 2023.

Tan emphasised that the traditional friendship and cooperation between Vietnam and Italy have been strengthened and developed, adding that Vietnam recognised Italy’s attention to Vietnam in its recent development cooperation policy.

For her part, Tripodi acknowledged that Vietnam is considered a "bright spot" in economic growth as its growth rate, import-export turnover and foreign investment attraction are all at  high levels despite the fact that Vietnam is also being affected by supply chain disruption and falling global demand due to the world’s complex geopolitical situation.

 Vietnamese Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan and Italian Undersecretary of State for Foreign Affairs and International Cooperation Maria Tripodi sign the meeting minutes. (Photo: VNA)
At the end of the meeting, the two sides signed the minutes of the meeting and agreed that the next meeting would be held in Vietnam in 2024.

On the occasion of the joint committee’s meeting, the Vietnam Embassy in Italy on October 18 held a workshop on Vietnam-Italy economic, investment cooperation with a focus on sustainable investment and new energy.

Speaking at the workshop, Vietnamese Ambassador to Italy Duong Hai Hung said that it was an opportunity for businesses and policy makers from the two countries to meet, and exchange information, views, and strategies to further strengthen business connection.

They are also expected to join in addressing major challenges in sustainable development and create new values, and new benefits for business communities of the two countries.

At the workshop, Tan emphasised that Vietnam is seen as an emerging centre in the global supply chain. Vietnam-Italy investment and trade ties have made impressive progress and are fully capable of bringing two-way trade turnover to 7 billion USD thanks to the structure of import-export goods of the two countries that are complementary to each other.

With the EVFTA, import-export turnover between the two countries has increased by 21.1% in 2021 and 11% in 2022. Thanks to the strategic locations of the two countries, they become a bridge between the two most dynamic economic regions of the world and their trade potential is still very large, he said.

Measures sought to turn Hanoi into logistics centre

The Capital Region, which comprises Hanoi and nine neighbouring localities, is expected to become a large integrated economic region of Vietnam, which is a premise and an important condition to promote the development of logistics in the region as well as connectivity inside the region and between it and the outside, according to Nguyen Hong Son, Director of the Hanoi Department of Science and Technology.

The Capital Region will become a major comprehensive economic area of Vietnam with a total area of over 24,300 square km, and a developed road network, Son said at a seminar in Hanoi on October 13.

Comprising 10 provinces and a first-tier city, namely Hanoi, Hai Duong, Hung Yen, Vinh Phuc, Bac Ninh, Ha Nam, Hoa Binh, Phu Tho, Bac Giang, and Thai Nguyen, the Capital Region will become a comprehensive economic area of Vietnam.

In 2022, the economic growth of the localities in the Capital Region will exceed the national average, with two provinces among the top five with the highest GDP growth rate nationwide, according to the director.

He said that logistics services and activities play an extremely important role in the development of enterprises. Without the support of logistics services, many manufacturing and trading companies cannot expand their scale or penetrate international markets.

In order to promote logistics and connectivity for the development of the Capital Region, the official stressed the need for ministries, sectors and localities to strengthen coordination and cooperation with Hanoi to turn the city into a logistics centre of the north, while developing high-quality human resources for the logistics sector, enabling it to adapt to the economic integration process.

Nguyen The Hiep, Deputy Director of Hanoi's Department of Industry and Trade, said that Hanoi logistics firms have met 25% of the domestic demand and 18% of the import-export one.

He noted that Hanoi has about 25,000 businesses operating logistics with different scales, levels, types, and logistics services, along with nearly 100 hectares of warehouses and storage, but they are of small sizes.

Economists held that to promote the development of logistics, Hanoi needs to set a goal of developing and supporting logistics activities to improve the competitiveness of manufacturing and trading enterprises, forming a modern and closed logistics system, contributing to the city's GRDP expansion.

Meanwhile, it is necessary to expand the infrastructure system for logistics, transport, trade and services, while speeding up innovation of logistics firms, they said.

Hanoi seeks to raise efficiency of cooperatives, develop OCOP products

A workshop was held in Hanoi on October 16 to seek measures to improve the cooperation of agricultural cooperatives associated with the development of OCOP (one commune one product) products in the capital city.

Ta Van Tuong, Deputy Director of the municipal Department of Agriculture and Rural Development, said that to remove difficulties in land mechanisms for agricultural cooperatives, Hanoi is requested to report to the National Assembly to soon promulgate the Land Law (amended) and the Capital Law (amended); and to the Government to soon revise Decree No. 57 on mechanisms and policies to encourage businesses to invest in rural agriculture.

As of late 2022, the city had 2,167 recognised OCOP products, accounting for 22% of the country’s total; and 153 cooperatives, including 132 agricultural ones participating in the OCOP programme with 448 recognised products.

Participants advised cooperatives to speed up digital transformation in agricultural production, processing and trading to gain higher efficiency.

After certifying OCOP products, Hanoi always pays attention to and organises events, fairs, and seminars to promote the products. Up to now, the city has opened 85 sites to promote OCOP products.

In addition, individuals and organisations with OCOP products continuously improve product quality, design, packaging, and branding. Many products have been exported to demanding markets including Australia, Europe, and Japan.

Vietnam-Algeria Business Forum held in Hanoi

Minister of Construction Nguyen Thanh Nghi and Algerian Minister of Industry and Pharmaceutical Production Ali Aoun co-chaired the Vietnam-Algeria Business Forum in Hanoi on October 17.

Speaking at the event, Nghi said that the forum, an important activity within the framework of the 12th Vietnam-Algeria Inter-Governmental Committee, is a substantive and important opportunity for both sides to exchange information and learn about each other’s trade and investment incentives, priority areas and potential projects.

Ali Aoun informed participants about the direction that Algeria is taking to develop its economy and attract investment.

Currently, Algeria has many policies for industry, mining, agricultural processing, tourism, renewable energy, housing, basic infrastructure, and offers incentives for small- and medium-sized enterprises, and startups, he added.

At the forum, the countries' experts clarified mechanisms and policies for businesses in both Vietnam and Algeria.

A representative from the Import-Export Department under the Vietnamese Ministry of Industry and Trade said that in order to create favourable conditions for domestic and foreign investors, Vietnam has reformed administrative procedures and simplified investment and business conditions.

In addition, the Government has issued policies to attract foreign investment in promoting green growth, and sustainable import and export, and supported businesses to overcome barriers.

Ahmed Berrich from the Algerian Investment Promotion Agency shared that Algeria is prioritising investment in stone mining, agro-fisheries, pharmaceuticals, petrochemicals, tourism, construction, information technology and communications.

Vietnam, Algeria have potential for cooperation in trade, industry, energy: Minister

Vietnam and Algeria have potential for cooperation in trade, industry and energy, according to Minister of Industry and Trade Nguyen Hong Dien.

At a working session with Algerian Minister of Pharmaceutical Industry Ali A-un in Hanoi on October 17, Minister Dien highlighted that Algeria is the second largest trade partner of Vietnam in North Africa, with bilateral trade averaging over 160 million USD a year in the 2018-2022 period.

To promote cooperation in trade, industry and energy, the Vietnamese minister asked the Algerian side to facilitate partnership between businesses operating in petrol, oil and gas business.

He particularly asked Algeria to facilitate the partnership between PetroVietnam Exploration Production Corporation (PVEP) and the national state-owned oil company of Algeria –Sonatrach in oil and gas projects in Algeria, and to amend Article 10 in the Vietnam-Algeria trade agreement.

Minister Ali A-un said he will work with the Vietnamese ministry and Algeria’s relevant agencies to consider the proposals of the Vietnamese side. He asked Vietnam to create favourable conditions for Algeria’s farm produce to access the Vietnamese market.

He expressed interest in bilateral cooperation in oil and gas and pledged to support Vietnamese oil and gas companies when investing in Algeria.

Lam Dong intensifies tourism cooperation with Singapore

A promotion conference and a signing ceremony of cooperation documents on tourism development between the Central Highlands province of Lam Dong and Singaporean partners was held in Singapore on October 17.

Deputy Chairman of the Lam Dong People’s Committee Nguyen Ngoc Phuc briefed participants on potential and strengths of both tourism and agricultural products of the province, especially tourism advantages of the province's Da Lat mountain resort city as well as  opportunities the locality can cooperate with Singaporean partners to expand market and promote trade of agricultural products between the two sides.

Earlier, on October 16, leaders of Vietjet Air and Lien Khuong Airport discussed with Changi Airport Group on the possibility of opening direct flights between Singapore and Da Lat city in the near future in order to open up more opportunities for cooperation in new fields between the two sides.

Vu Pham Nguyen Tung, Vietjet Director of Project Development, said that prospects of Vietnam-Singapore bilateral relations as well as Da Lat's resort tourism potential are favourable conditions for opening direct flights between Singapore and Da Lat.

Tung emphasised that the flights will not only promote tourism and agricultural trade but also create many opportunities to attract Singaporean and international investors to Lam Dong province. Vietjet Air commits to supporting Lam Dong province to realise this plan as soon as possible and provide service packages with the most suitable costs.

On the occasion, tourism businesses from both sides signed three memoranda of cooperation to enhance tourism promotion between Singapore and Lam Dong province.

VNĐ2.5 trillion to be allocated for estimated State budget recurrent expenditures: finance minister

Approximately VNĐ2.5 trillion (US$102 million) will be allocated for the estimated State budget recurrent expenditures, said finance minister Hồ Đức Phớc at the National Assembly (NA) Standing Committee meeting on Tuesday. 

The proposal is expected to be submitted to the NA for review and approval at the assembly’s sixth session this month, the minister added.

Head of the NA Committee for Finance-Budget Lê Quang Mạnh said that as of October 5 this year, the Government has only allocated 3.5 per cent of the total budget for recurrent expenditures for ministries, State agencies and localities. 

The delayed process leads to inefficiency in utilising the State budget resources, said Mạnh.

The inspection team also requested that the Government take measures and avoid cases of unallocated funding in the annual State budget estimates. 

The NA finance-budget committee also required the Government to submit a specific report on the remaining amount to the NA and its Standing Committee, and to clarify the disbursement feasibility during this year. 

Mạnh added: “Most delegates agree that in case the amount is not put to use, the Government should look into the matter and reallocate the amount to other urgent and necessary tasks, avoiding wasting the resources.”

The head of the NA finance-budget committee said that another suggestion is, in case the amount is not allocated or is no longer necessary, it should be subtracted from the estimates to reduce the State budget deficit and interest costs, and mobilise resources to offset overspending.

Finance minister Hồ Đức Phớc said that the delayed allocation is due to the slow promulgation of policies and legal frameworks among ministries and sectors. 

He added that the budgeting and spending processes are done in a strict manner and therefore disbursement is only possible when all criteria are met. 

Speaking at the meeting, deputy State auditor Đặng Thế Vinh required clarification on whether the additional amount to the estimated recurrent expenditures is for new or existing tasks, as there are insufficient documents for budget allocation. 

He also proposed identifying the responsibilities of relevant authorities, ministries and localities to avoid similar cases in the future. 

Sharing the same perspective, NA Deputy Chairman Nguyễn Đức Hải required clear reports on why a large amount of the State budget is unallocated, with only a small amount proposed near the end of the year. 

Appropriate mechanisms should be proposed to effectively utilise the allocated funding, he added. 

The sixth session of the 15th-tenure NA is scheduled to take place from October 23 to November 29. 

The NA is expected to review and approve nine law projects and two resolutions, while also commenting on eight other law projects, socio-economic issues and the State budget. 

Topics of discussion include investment in building traffic infrastructure, settlement procedure for the annual State budget, ratifying the UK’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the resettlement and compensation process related to the Long Thành International Airport project. 

The assembly will also hold votes of confidence for officials elected or approved by the NA. 

Noting that preparations for the NA’s sixth session are basically completed, NA Chairman Vương Đình Huệ underlined strict compliance with the meeting regulations, with additional topics added only in cases of emergency with approval from relevant authorities. 

Use of personal digital signatures promoted to ensure online payment

The National Electronic Authentication Centre (NEAC), Ministry of Information and Communication (MIC), Vietnam Banks Association and Certificate Authority and Digital Transaction Club (VCDC) on October 17 held a workshop on the role of personal digital signatures in online payment.

Speaking at the event, MIC Deputy Minister Nguyen Huy Dung said that Vietnam has identified three pillars of national digital transformation - digital government, digital economy and digital society. All the three pillars are not possible without digital citizens. He said that forming digital citizens and a digital society needs basic characteristics. Particularly, each household has fibre-optic broadband, while each citizen needs to have a smartphone, e-ID, a digital payment account, an online public service account, and basic information security software.

Besides, digital citizens need to be equipped with basic digital skills to use services in the digital environment, and have their personal digital signature to perform digital transactions, Dung said, emphasising that a personal digital signature is the final “piece of the puzzle” to complete a basic version of digital citizenship in the cyber environment.

Digital signatures are a solution with its legality recognised by many countries around the world including Vietnam.

That is a technology solution in online transactions, especially in the finance and e-banking areas, he said, adding that the Law on Electronic Transaction 2023 with regulations on digital signatures, that will take effect from July next year, will facilitate the applicaiton of digital signatures in the cyber environment.

Vice Chairman and General Secretary of the Vietnam Banks Association Nguyen Quoc Hung said that in Vietnam, digital signatures are mainly used in intra-bank transactions or transactions of businesses, and yet to be applied to individual customers.

According to Hung, individual customers are in the group that takes the majority of transactions in the banking industry.

Preliminary reports from banks in Vietnam showed that only 5% of total customers own and are using digital signatures, mostly because of the high cost of personal digital signatures, Hung said.

To develop digital signatures, service providers need to enhance safety and security in online payments and bank card payments. Promoting online payments, converting all direct payment activities to the cyber environment, and increasing communications about the Law on Electronic Transactions 2023 are also needed, heard the workshop.

Phu Quoc to welcome more international flights at year-end

Phu Quoc, which is Vietnam’s largest island off the coast of the southern province of Kien Giang, will receive more international flights moving into the year-end and new-year period, bringing about many positive developments for the local tourism industry.

According to the Kien Giang Provincial Department of Tourism, there are currently four international air routes connecting Phu Quoc with Incheon of the Republic of Korea (two flights a day), Hong Kong (China - three flights per week), Kuala Lumpur of Malaysia (three flights per week, and Bangkok of Thailand (four flights per week).

In the near future several Korean airlines are expected to add flights to the island.

Korean Air has recently announced that it is poised to open a new route to Phu Quoc, with daily flights departing from Incheon airport in Seoul. According to the airlines, November is considered to be the best time to travel to the island when the dry season begins.

Two other Korean airlines - Jeju Air and Jin Air - also plan to begin operating flights to the southern island.

Jeju Air will operate the Seoul - Phu Quoc route with a frequency of seven flights per week from the end of October, whilst Jin Air is scheduled to run the route to Phu Quoc departing from Incheon airport in late December.

Korean media outlets explained that the Vietnamese island is now a destination of great interest for many foreign tourists. Statistics indicate that the number of passengers on flights between Vietnam and the RoK in the third quarter of the year doubled compared to the same period last year.

Moreover, due to having many flights running from the RoK to Nha Trang and Da Nang, some airlines have shifted their attention to Phu Quoc to exploit new destinations.

The southern island has also planned to welcome charter flights from Kazakhstan from October, and from Taiwan (China) this December.

Phu Quoc dubbed the ‘pearl island' is blessed with clear blue water beaches such as Bai Sao and Bai Dai, along with plenty of local specialties including seafood, pepper, and pearls, among others.

Last year it was selected as one of the 25 best islands in the world by readers of magazine Travel Leisure of the United States.

The largest Vietnamese island was also voted by readers of Condé Nast Traveler in sixth place in the top 10 resort islands in Asia for 2022.

Over the past nine months the island city has welcomed over 4.7 million visitors for sightseeing and leisure stay, up 15.5% annually. Of the figure the number of foreign arrivals nearly tripled to 470,538 compared to the same period last year.

Retailers urged to stay updated on latest trends and innovations 

Retailers should stay informed about the latest trends and innovations to be competitive amid the significant transformation of the Vietnamese retail sector, as highlighted at the 2023 Retail Executive Conference.
The 2023 Retail Executive Conference took place in HCMC on October 17, bringing together top retail executives, experts, and innovators to share their insights on the future of the industry.

The conference focused on three key topics: leveraging social media for sales, utilizing AI for personalized shopping experiences, and harnessing data analytics for demand forecasting, inventory optimization, and sustainability in retail.

Additionally, the event featured a networking reception, offering attendees the opportunity to connect with other industry leaders and establish valuable connections.

Tuyen Ngo, country manager at True Digital Viet Nam, said at the conference that the retail market has experienced remarkable growth. Recent market data indicated that Vietnam’s retail sales in 2022 reached US$240.5 billion, with the e-commerce sector alone contributing over US$16.2 billion.

“As consumer behavior shifts towards digital platforms, embracing innovative strategies becomes paramount,” he added.

Experts unanimously agreed that the retail industry is undergoing significant transformations driven by the rise of e-commerce, social commerce, artificial intelligence, and sustainability. Retailers capable of adapting to these changes and embracing new technologies will be well-positioned for success in the coming years.

Export turnover set for boost with foreign ventures

A series of electronic component plants have been taken into operation, which will contribute to fostering the export turnover of these products.

Two suppliers of components are preparing final works to take their two plants in the central province of Nghe An into operation this month.

Goertek Precision Industry’s $100-million first phase, which is expected to start operation this month, covers an area of 40 hectares at WHA Industrial Zone 1 in Nghe An province, and will have an annual capacity of 381 million products.

Goertek Precision Industry Vietnam is a subsidiary of a China-based Global Manufacturer of Smart Hardware and High-precision Components. Goertek Precision’s project has an investment of $500 million and specialises in micro-electromechanical systems which combine electronic products, network equipment, and multimedia audio products.

Being one of three key suppliers for Apple in Vietnam, along with Foxconn and Luxshare, GoerTek has been operating in Vietnam since 2013 and has so far established two facilities in the northern province of Bac Ninh and Nghe An.

Meanwhile, after one year of construction, Everwin Precision Hong Kong will also take a $200 million electronic parts factory in Nghe An into operation this month. It is designed to make 270 million products per annum. The Hong Kong manufacturer - a supplier of components for Apple, Xiaomi, and Huawei - plans to export all of them.

The first Vietnam factory of US-based Amkor Technology, a global semiconductor product packaging and test services provider, last week was inaugurated in Bac Ninh.

A representative of Bac Ninh Department of Planning and Investment told VIR, “The department was assigned to cooperate with the management authority of industrial zones and the investors to build plans for the inauguration ceremony, which is expected to occur in mid-October.”

Once these factories go into operation, they will contribute to fostering the export turnover of the industry. For example, Amkor is currently a strategic manufacturing partner of many of the world’s top chip companies, and chip and electronic circuits foundries such as Qualcomm, Samsung, Foxconn, LG, and SK Hynix.

In addition, Vietnam is also an important production hub of Amkor Technology. Thus, the export turnover from plants in Vietnam will also contribute an important part to the group’s revenue. The Vietnamese plant’s size will be only behind Amkor’s South Korean factory. According to the plan, it will invest about $1.6 billion until 2035 on building a state-of-the-art facility in Bac Ninh.

Statistics published by the General Statistics Office show that in the first nine months of 2023, the two sectors of electronics and computers, and mobile phones with its components, rank at the top of products with an export turnover of more than $10 billion.

The electronics, computers, and components segment ranks first with a value of $41.18 billion and the runner-up is mobile phones and components with a total value of $39.32 billion. In September alone, the figures were $5.3 billion and $5.2 billion, respectively. The major export markets for this product group are the EU, the United States, and China.

According to the Vietnam Association for Supporting Industries (VASI), the nation ranks 12th in the world and third position in ASEAN in terms of electronic exports. However, foreign-invested manufacturers hold 90 per cent of the total export turnover of these products.

Thanks to this potential, many manufacturers keep a keen eye on Vietnam. For example, Goertek considers Vietnam as the group’s vital important production hub overseas, which shoulders 30 per cent of the total capacity and revenue of the group. In the strategy planned for the next five years, Goertek will increase the total investment in the Southeast Asian country to $1.5 billion.

GoerTek, which also plans to manufacture VR headsets in Vietnam from 2024, expects the Southeast Asian country to produce more than half of its global revenues in three years, up from one-third now.

Renewable energy set to create new jobs

The energy transition will cause many jobs in the traditional energy industry to be lost, but it will also create thousands of green and sustainable employment opportunities in the economy.

The south-central province of Ninh Thuan is one of the top localities for wooing renewable power projects in Vietnam, and is aiming to become a renewable energy hub by 2025.

According to Ninh Thuan Department of Industry and Trade, the province has called for a total of 46 projects, comprising 35 solar and 11 wind farms, with a total capacity of more than 3,000MW. Ninh Thuan’s renewable energy will also contribute to solving the national energy security problem, contributing to realising Vietnam’s ambitious net-zero goal by 2050.

However, with the strong development of renewable energy projects, the need for human resources to serve the transition has become a challenge for the province.

Nguyen Phan Anh Quoc, principal of Ninh Thuan Vocational College, said that renewable energy was a new field that uses high technology, so it requires highly-skilled labour, but such local human resources were not yet available.

“Most projects have difficulty recruiting staff because the demand for jobs at this time is massive, but training facilities have not been able to meet it,” Quoc said.

According to the National Power Development Plan for 2021-2030, Vietnam will strongly develop renewable energy sources, with over 75 per cent of energy used being renewable. Total solar power capacity will increase 10-fold, wind power will climb 30 times, and there will be a number of new sub-sectors such as offshore wind, battery storage, and new biomass.

Meanwhile, coal-fired power plants over 40 years old will have to close and convert to using other fuels, and be completely eliminated by 2050.

The shift in the energy sector will lead to a change in labour structure with a need for 25 per cent of highly-skilled human resources, especially in wind and solar energy in the next 10 years.

Vu Chi Mai, project director of the Clean, Affordable and Secure Energy for Southeast Asia of GIZ, said that Vietnam is among the top 10 countries in terms of employment in hydropower, wind power, and solar energy.

“The energy transition that comes with digital transformation will create greener occupations that require higher skills, but the salaries and nature of the work will also be more attractive,” Mai said.

Vietnam is the leading country in ASEAN in terms of current scale and proportion of renewable energy, with 27 per cent of total power capacity coming from wind and solar power sources, according to the International Renewable Energy Agency. However, the energy transition process from “brown to green” still faces obstacles as the human resources supply is limited, mainly using foreign staff.

Le Phuong Nhi, general director of Siemens Gamesa Renewable Energy Vietnam, said that the business had to use mostly foreign workers for transporting and installing turbines when building and installing wind farms.

“For Vietnamese employees, Siemens tries to recruit people working in similar industries such as the oil and gas industry and then retrain. However, the training process takes time and cannot meet the project’s transition time,” Nhi said.

According to Vo Quang Lam, deputy general director of Vietnam Electricity (EVN), the workforce in coal-fired power plants is quite diverse, but the shift is only for young workers. People over the age of 50 cannot meet the needs of changing jobs.

“EVN has asked our company members to develop their own plans for recruitment and training to prepare for the energy transition, encouraging and prioritising young workers to learn new skills,” he said.

With a population of more than 100 million people, with 51 per cent of working age, Vietnam has an abundant labour force. The energy transition trend has led to the need for highly-skilled labour in this industry in the future, requiring Vietnam to soon have appropriate solutions to become self-reliant in human resources.

Dr. Guido Hildner, German Ambassador to Vietnam, said that the transformation of the energy industry is a complex process but also brings great opportunities. In Germany, the number of employees working in green occupations increased by 56.7 per cent to five million between 2012 and 2020.

“Germany has already been working with Vietnam for many years in energy transition. There are many projects involved, and this also addresses the human resources side and job skills,” Hildner said. “Vocational training is a key component of cooperation between Germany and Vietnam. We are working with many vocational colleges and support the development of curricula and also the training on specific skills that are related to renewable energy.”

In green employment creation, Germany has improved the job transition process with Vietnamese partners such as with electrical engineering, electronics, and training students in installing rooftop solar, with tens of thousands of students at 11 vocational schools benefiting each year, with 79 per cent of graduates getting jobs.

“We have many interesting projects and areas of cooperation with Vietnam. One area, for instance, is the recruitment of skilled labour for the German market. Germany is interested in recruiting Vietnamese skilled workers, and we will further expand and develop this activity,” Hildner added.

HCMC proposes mechanism for buying rooftop solar power

HCMC authorities have written to the prime minister proposing a mechanism to purchase electricity generated by rooftop solar power systems in a bid to promote more investment in this source of renewable energy.

The proposal aligns with special mechanisms provided in the National Assembly’s Resolution 98 for the city, Vice Chairman of the HCMC People’s Committee Vo Van Hoan said at a recent meeting.

The Department of Industry and Trade has been tasked with developing a plan and presenting it to relevant authorities by the end of next month.

Since the expiration of Decision 13 in late 2020, which aimed to promote solar power development, there has been no mechanism established for rooftop solar power projects. This has prevented many such projects from connecting to the national grid.

At an energy policy seminar earlier this year, business representatives expressed concerns about the waste of solar power if the Government did not introduce a mechanism for rooftop solar power projects.

According to EVNHCMC, as of the end of 2022, there had been more than 14,150 rooftop solar power systems set up with a combined capacity of 355 MWp, accounting for 7% of the total power capacity.

Since the beginning of 2021, the signing of rooftop solar power purchase agreements has been put on hold due to the absence of a new mechanism for buying this eco-friendly energy.

VND3.9 trillion proposed for southern waterway infrastructure

The Inland Waterway Project Management Board under the Ministry of Transport has proposed investing over VND3.9 trillion to develop water and logistics corridors in the southern region.

The project aims to enhance infrastructure, alleviate congestion, and reduce transportation costs, particularly for routes from the Mekong Delta to HCMC, Dong Nai Province, and the Cai Mep-Thi Vai port cluster.

The investment will span multiple provinces, including Vinh Long, Ben Tre, Tien Giang, Long An, and Dong Nai. The plan is to upgrade two main waterway corridors: an East-West corridor of about 197 kilometers and a North-South corridor covering around 82 kilometers.

The East-West corridor will be improved to accommodate vessels up to 600 tons, including triple-layer container ships operating 24/7. The North-South corridor will be modified for ships as large as 5,000 tons and four-layer container ships.

The project is budgeted at over VND3.9 trillion, equivalent to more than US$163 million, with a significant portion allocated to resettlement and construction. Resettlement costs are estimated at VND720 billion, and construction is expected to exceed VND2.2 trillion, with an anticipated implementation period of five years.

The World Bank is expected to provide around US$107 million for the project, while the Australian Government provides a grant of over US$580,000, and the Vietnamese Government will co-finance nearly US$56 million.

Biotechnology to contribute 10-15 percent to GDP by 2045

The HCMC Biotechnology Center, Vietnam Biotechnology Association (VBA), and the HCMC Science-Technology Department yesterday co-hosted the 16th Asian Congress on Biotechnology, attracting the participation of 400 people worldwide.

The Congress, lasting to October 19, offers a chance for leading professionals from research units, training institutes, businesses in the world to discuss scientific advances, research results in various aspects of biotechnology as well as suitable strategies for global sustainability.

The event includes two plenary sessions and 36 session presentations for 16 key topics in the biotechnology branches, including agriculture and food, applied microbiology, medical biotechnology, nanobiotechnology, biomaterials, synthetic biotechnology.

In his speech, Director Dinh Minh Hiep of the municipal Department of Agriculture and Rural Development shared that the congress is an important scientific event for the promotion of scientific research and development of applied biotechnology to improve the medical capability for disease prevention, to ensure food security, to cope with climate change, and to boost economic development among Asian countries.

Being a tropical nation severely affected by climate change and transforming from an agricultural economy, Vietnam is highly aware of the critical role of biotechnology in its industrialization and modernization, its economic structural transformation, and its sustainable growth.

Therefore, Vietnam aims at becoming a country with a developed biotechnology industry, a center for smart manufacturing and services, a hub for innovative startup in the biotechnology field in Asia. It also sets the target of having its biotechnology contribute 10-15 percent to the GDP by 2045.

Director Hiep further informed that HCMC is currently training and trying to attract human resources in the biotechnology field while expanding its cooperation with other nations like the UK, France, Japan, Cuba.

The city has invested much in scientific research and biotechnology development. For instance, in agriculture, HCMC fosters studies on new plant varieties, animal breeds, ornamental fish; microbial products for crops, livestock, and aquaculture; vaccine to prevent diseases for aquaculture.

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