Tân Sơn Town (Ninh Thuận) is developing its urban area with a focus on green and smart growth. VNA/VNS Photo

The three most significant systemic challenges faced by Vietnamese businesses in their green transition efforts are a lack of financing, skilled personnel and technical solutions for implementation.

Because the challenges are systemic, they will not be easily resolved, according to the Private Sector Development Research Board (Board IV) under the Prime Minister's Advisory Council on Administrative Procedure Reform.

Phạm Thị Ngọc Thủy, Director of the Board IV Office, said that the board recently submitted a report to the Prime Minister assessing the readiness and difficulties faced by Vietnamese businesses in their green transition efforts.

The report, based on diverse sources including secondary research, a broad survey of 2,734 businesses, roundtable discussions with leaders from nearly 50 associations and leading domestic businesses, and consultations with international organisations and experts, highlights the global nature of the 'green race.' Major countries are allocating significant resources and designing comprehensive legal and practical frameworks to promote the green transition within their borders and set an example for other nations.

Việt Nam must participate with a commitment and effort equal to the government's strong pledges made at COP26 and COP27. This is necessary not only to assert the nation's leadership but also to effectively leverage international resources during the green transition.

The green transition requires a system of policies and practical implementation programmes covering everything from investments, trade and sectoral development to emission reduction initiatives. Việt Nam needs a comprehensive national green transition strategy led by the government, with close coordination between ministries, sectors, local authorities and both public and private sectors. This strategy should have clear responsibilities, timelines, targets and measurable outcomes.

According to the business survey, 48.7 per cent of businesses believe that emissions reduction and a green transition are necessary or very necessary, with 16.9 per cent deeming it highly necessary. However, 17.4 per cent of businesses find it unnecessary or very unnecessary, and 33.9 per cent rate the necessity as average.

Interestingly, there is little difference in the perceived necessity for emissions reduction between domestically focused businesses and export-oriented ones. Agriculture, forestry, fishery and industrial businesses show a higher perceived need for a green transition than those in construction and services.

The report highlights a disparity between domestic and foreign-invested enterprises (FDI), with 55.2 per cent of FDI businesses acknowledging the need for emissions reduction, compared to 48 per cent for domestic businesses.

However, the more concerning number is that 64 per cent of businesses surveyed have not yet prepared for emissions reduction or the green transition. Only 5.5 per cent have actively reduced emissions in critical activities, and just 3.8 per cent have been tracking and publicly reporting their annual emissions reductions.

This lack of preparation, especially considering evolving policies in major markets like Europe and the US, creates significant pressure as transition periods end and mandatory compliance begins. The readiness levels are notably lower for businesses that operate solely in the domestic market compared to those engaged in export activities.

The survey also reveals that businesses face various challenges, including access to information, financing and skilled personnel. The three largest obstacles are financing for emissions reduction, skilled personnel for the green transition and suitable technical solutions.

The green transition requires substantial financial resources across all sectors. According to the World Bank’s 2022 estimate, the additional financial needs for Việt Nam to build resilience and reduce greenhouse gas emissions through 2040 will total US$368 billion, with adaptation accounting for 4.7 per cent of Việt Nam's annual GDP and decarbonisation requiring 2.1 per cent of GDP.

Approximately 50 per cent of this funding will come from the private sector ($184 billion), with public sector contributions of $130 billion, supplemented by international financial support.

The lack of access to finance is the biggest hurdle for businesses in reducing emissions and transitioning to green practices, with 50 per cent of surveyed businesses identifying this as a challenge. Only 5.9 per cent reported no difficulty in accessing funds.

While businesses need substantial capital for the green transition, green finance has not developed proportionally. Over the past decade, green finance in Việt Nam has grown, but its scale remains small. Green credit accounts for only 4.5 per cent of total outstanding loans as of the end of 2023, and the green bond market remains underdeveloped.

Currently, 47 financial institutions in Việt Nam have green credit with a total outstanding loan balance of nearly VNĐ621 trillion, a 24 per cent increase from 2022, representing about 4.5 per cent of total loans in the economy. Green credit is primarily focused on renewable energy (45 per cent) and green agriculture (30 per cent).

Green bonds face challenges due to a lack of detailed guidance on project criteria, monitoring frameworks and legal regulations. As of 2023, green bonds in Việt Nam only account for 1 per cent of the corporate bond market, compared to Malaysia’s 5 per cent and Singapore’s 7 per cent.

The report stresses that international financial resources, such as the $15.5 billion pledged under the Just Energy Transition Partnership to help Việt Nam implement specific projects, must overcome administrative barriers for effective utilisation.

According to the report, Việt Nam must address these financial, technical and institutional challenges to meet its green transition goals and maintain global competitiveness. 

Turkey concludes anti-circumvention investigation on solar panel dumping from Vietnam

The Trade Remedies Authority of Vietnam has received notification from Turkey’s Directorate General of Imports (DGI) regarding its conclusion in an anti-circumvention investigation on solar panel imports from Vietnam.

The investigation focused on photovoltaic cells assembled into modules or arranged in panels (classified under HS code 8541.43.00.00.00), commonly known as solar panels.

According to the DGI’s findings, Vina Solar Technology Co., Ltd., JA Solar Vietnam Co., Ltd., and Trina Solar Energy Development Co., Ltd. were all exempted from anti-dumping duties. However, other Vietnamese companies were subject to a tariff of 25 USD per square metre.

The anti-dumping tariff is set to be effective from September 27, 2024.

This investigation was initiated by the DGI on November 29 last year, targeting solar panel imports from Croatia, Jordan, Thailand, Malaysia, and Vietnam. The products were accused of circumventing the anti-dumping duties already in place against Chinese solar panel imports./.

Top leader’s visit opens new door for Vietnam – Ireland trade: insiders

The upcoming state visit to Ireland by General Secretary of the Communist Party of Vietnam Central Committee and State President To Lam, his spouse and a high-ranking delegation of Vietnam is expected to open a new door for the two countries’ trade cooperation, according to insiders.

Vietnam and Ireland have obtained various achievements in their cooperation and friendship since they set up their diplomatic ties 28 years ago. Trade collaboration has been a key pillar in the bilateral relations on the basis of the effective implementation of the EU – Vietnam Free Trade Agreement (EVFTA).

According to the Ministry of Industry and Trade (MoIT), Ireland is the sixth largest trading partner of Vietnam in the EU, with two-way trade revenue reaching nearly 3.5 billion USD last year. As of the end of July, Ireland had registered 60.82 million USD in 41 projects in Vietnam, ranking 55th out of 146 countries and territories investing in the Southeast Asian country. Particularly, after the EVFTA took effect in 2020, Vietnam’s export to the European nation surged 45.9% year-on-year to 502 million USD in 2022.

Ireland’s imports fell in 2023 as the prolonged COVID-19 impacts weakened consumption demand. However, trade between the two sides has been bouncing back since the outset of this year, with Vietnam’s shipments to the market shooting up 123.5% to 669 million USD and import rising 29.8% to 2.45 billion USD during January – August.

According to experts, Ireland boasts sound legal frameworks and incentives for the development of high-tech industry, innovation and startups, among others, making it an attractive destination for global tech giants. Vietnam has maintained large trade deficit with Ireland for years, with computers, electronic products and components, including semiconductor chips, accounting for 90% of the country’s total import from the market for domestic production and assembly.

They said although the two countries have huge cooperation potential, their collaboration in the domains of trade, investment and science-technology as well as other sectors of their strengths has remained modest and has not been on par with their political relations as well as potential and advantages. They suggested the two nations enhance the exchange of delegations at all levels and information sharing to further promote the bilateral cooperation.

In the framework of a recent visit to Vietnam by a trade delegation of the Irish Government, Martin Heydon, Minister of State at the Irish Department of Agriculture, Food and the Marine, said Ireland’s agricultural products and food have reached out to various markets and the country wants to provided its high-quality goods for Vietnam.

Over the past years, Ireland have focused on developing cooperation development programmes with Vietnam, including the recent support activities for Vietnam’s agriculture and food sectors, helping Vietnamese goods access new markets.

Experts said Ireland will continue promoting its investment in Vietnam, particularly in the areas of the country’s strengths and Vietnam’s potential such as green technology, renewable energy, research and development, innovation, agriculture, high technology and FDI attraction.

Besides, the country will put into place the OECD-led global minimum tax and carry out key cooperation areas at the Vietnam National Innovation Centre.

Specialists held that the two nations should well capitalise on their existing bilateral and multilateral cooperation frameworks as well as work together to handle several issues, including Ireland’s approval of the EU-Vietnam Investment Protection Agreement (EVIPA), and call for the EU to remove the European Commission (EC)’s yellow card against Vietnamese seafood products.

A representative of the MoIT held that the two sides should step up support for their business communities, helping them seek cooperation, investment and business opportunities in each other’s market, while tapping the opportunities from the EVFTA to the fullest extent amidst post-pandemic economic recovery.

Particularly, Ireland should encourage its enterprises, comprising global firms headquartered in the nation, to shift and expand investment in Vietnam, and support the Southeast Asian country to organise trade promotion programmes at Irish supermarket chains while working to bring Vietnamese goods to Irish distribution chains, thus bridging the trade deficit between the two countries.

The representative also recommended Vietnam and Ireland to focus on enhancing cooperation in such areas as manufacturing industry and automation, electronic and digital industries, the application of biotechnology into industry, energy, sustainable consumption, innovation and high-quality human resources development.

Additionally, they should continue working closely with and support each other at multilateral forums, especially at the UN and within the framework of the Asia – Europe Meeting (ASEM) and ASEAN – EU cooperation, helping promote multilateralism and the implementation of international regulations and contributing to peace, stability, cooperation and development in the region and the world./.

Trade offices abroad play important role in protecting Vietnamese exports

The Ministry of Industry and Trade (MoIT) has analysed trade defence instruments from other countries imposed on Vietnam’s exports and discussed measures to mitigate them in the future.

The recommendations were made as a result of the monthly meeting between the ministry and Vietnamese trade offices abroad on September 30.

Vietnam has become a rising exporter in recent years due to its advantages in low labour and production costs, but statistics show the number of cases in which Vietnamese exports face measures against unfair trade has increased compared to the 2001-2011 period.

That 10-year period saw only 50 cases recorded, while in 2020 alone there were 39 cases. Fourteen cases have been recorded in the last nine months.

Of the 257 cases recorded since 2001, 141 cases were anti-dumping investigations, 37 were anti-circumvention, 27 were anti-subsidy and 52 were safeguard investigations.

The number of markets that impose such measures on Vietnamese exports also expanded alongside the increase in the number of cases, said Truong Thuy Linh, Deputy Director of the MoIT’s Trade Remedies Authority.

“Apart from traditional export partners, investigations have also started from ASEAN countries, Mexico, South Africa and Taiwan (China),” she said.

More products are being investigated as well, she added, including not only those with high export turnover such as shrimp, pangasius, steel, wood and solar panels, but also those with small and medium export value and volume, such as lawn mowers, honey, paper plates and staplers.

“The scope of investigations is also expanding, including new contents such as product scope investigations and anti-circumvention of trade defence measures,” Linh said.

“More importantly, the trade defence tax rate may be pushed up due to market economy issues, since some countries such as the US have not recognised Vietnam as a market economy, and use the costs of a third country to determine the normal value of the products in anti-dumping cases.”

Vietnam's trade offices abroad play a crucial role in protecting the rights of Vietnamese manufacturers and exporters, Linh added.

“In many cases, as soon as they receive information from investigation agencies about the likelihood of an investigation into a product, these offices immediately inform our government,” she said.

Dinh Quoc Thai, General Secretary of the Vietnam Steel Association, stressed the importance of coordination between the trade offices and businesses in Vietnam.

“The trade offices play an important role in gathering information in each stage of the lawsuits and delivering them back to Vietnam,” he said.

“Recently we have received early warnings of possible lawsuits from them, which have helped us prepare better and have more time to develop appeal strategies when issues arise.”

Thai urged the Vietnamese trade offices in countries that import steel from Vietnam to continue to keep track of trade investigation regulations, connect Vietnamese steel export businesses with lawyers and local importers, and take part in public consultation sessions where the complaints are filed.

In closely following Canada’s investigations on Vietnamese exports, Vietnam Trade Counsellor in Canada Tran Thu Quynh said that tractor, container chassis and wind turbines may be the next type of goods to face anti-dumping investigations.

“We have also received informal information indicating that there will be a new investigation related to Vietnamese upholstered office furniture. It is also possible that the Canada Border Services Agency (CBSA) will investigate wind turbine towers and solar panels exported from Vietnam,” she said.

To help businesses avoid being accused of dumping or evading trade defence measures, the Vietnamese trade office in Canada has organised various events to promote the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which focused on understanding the rules of origin and how to utilise cumulative origin principles in production, Quynh added.

“We have also asked the Canadian government to develop a database of imports that meet their origin standards, and facilitate effective and sustainable utilisation of free trade agreements,” she said./.

Da Nang strengthens cooperation with New Zealand partners

The central city of Da Nang deems it incredibly important to develop cooperative relationships with New Zealand in various fields, Chairman of municipal People’s Committee Le Trung Chinh said on October 1.

Speaking at a reception for New Zealand Ambassador Caroline Beresford, Chinh expressed his delight at the sound development of the relationship between Vietnam and New Zealand, especially after the two countries upgraded their relationship to a Strategic Partnership in July 2020. He went on to say that the year 2025 is important as the two countries will celebrate the 50th anniversary of diplomatic relations and the 5th anniversary of the Strategic Partnership.

According to Chinh, a Da Nang delegation paid a working visit to New Zealand last month and gained positive results. With the support of the ASEAN-New Zealand Business Council, the city successfully organised a seminar on cooperation and investment promotion in Auckland.

Swiss-Bell Hotel, Neurofrog Technology, Spekia, ANZ Bank, and others expressed interest in collaborating with the city in areas such as technology, education, and hospitality, he said.

New Zealand is a potential market, yet there are not many cooperation programmes with Da Nang, he said, suggesting the New Zealand Embassy coordinate with the Asia New Zealand Foundation to expedite the visit by a delegation of 100 New Zealand businesses to the city in July next year. He also suggested the embassy help promote the city's image, as well as its investment environment, tourism, and education in New Zealand.

For her part, Beresford said the two countries share many similarities and views. In the coming period, they need to identify fields to enhance cooperation, particularly in technology and innovation, where New Zealand is stepping up collaboration with international partners.

The diplomat pledged that she will connect New Zealand businesses and investors with Da Nang, adding cooperation in other areas should be strengthened to tighten the relationship between the two countries.

As many as 10 businesses in Da Nang has set up cooperative ties with New Zealand partners. In the first seven months of this year, the city's export to New Zealand was valued at some 3.2 million USD.

New Zealand has been running three projects in Da Nang with a total investment capital of 245,000 USD. Various comprehensive cooperation programmes between Da Nang and localities of New Zealand have been carried out in recent years, especially in education, high-quality human resources training, and health care./.

Vietnam primed to welcome global semiconductor, AI firms: minister

Vietnam is well-positioned to welcome and cooperate with semiconductor and artificial intelligence (AI) enterprises and investors from around the world, Minister of Planning and Investment Nguyen Chi Dung told a seminar held in Hanoi on October 1.

Dung stressed that Vietnam's stable political system and strong commitment to hi-tech industries make it an attractive destination for investment. The country is focusing on driving digital transformation, green transition, science and technology, and innovation to achieve breakthroughs in productivity, quality, and economic competitiveness.

With a population of over 100 million people and a vibrant, enthusiastic youth generation skilled in sci-tech, engineering and mathematics, Vietnam is experiencing a golden demographic period, Dung added.

On September 21, the Prime Minister issued a national strategy for semiconductor industry development and a human resource development scheme for the industry until 2030, with orientations to 2050.

The Ministry of Planning and Investment (MPI) has proactively worked with relevant ministries, agencies, and domestic and foreign partners to enhance the training of a quality workforce for AI and semiconductor industries. The goal is to train 50,000 engineers by 2030.

So far, Vietnam has already established a large-scale semiconductor and AI ecosystem in the region, involving major players such as Google, Meta, NVIDIA, AMD, Qualcomm, Intel, Amkor, Hana Micron, LAM Research, Marvell, Cadence, Synopsys, Qorvo, Ampere, Infineon, and numerous other hi-tech companies in the electronics sector.

The country is progressively refining its investment policies and legal framework to create the most favourable business environment for semiconductor and AI companies. The Government will soon issue a decree on the establishment, use, and management of an investment support fund this year to facilitate investments in the field.

A National Steering Committee for the development of the semiconductor industry, chaired by the Prime Minister, was also established. Additionally, the National Innovation Centre (NIC) and three hi-tech zones in Ho Chi Minh City, Hanoi, and Da Nang are ready to welcome semiconductor investors with attractive incentives.

According to the minister, the US Government has selected Vietnam as one of the six countries globally to join its International Technology Security and Innovation Fund (ITSI). This initiative is part of the CHIPS and Science Act, which focuses on workforce training for semiconductor and AI industries.

In September, the MPI assigned the NIC to work closely with the US Department of State and Arizona State University to launch a programme in Vietnam aimed at training over 4,000 engineers in packaging and testing integrated circuits by the end of 2025. Additionally, Vietnam is actively partnering with Japan, the Republic of Korea, Europe, and Taiwan (China) to jointly develop human resources for and advance the semiconductor and AI industries.

Becky Fraser, Vice President of Global Government Affairs at Qualcomm, said Qualcomm’s innovation is focused on technology transfer and will continue to grow, particularly in technologies related to AI in the devices that Qualcomm has been working on in Vietnam./.

Vietnam’s economy rebounds strongly amidst external uncertainties

International organisations have maintained their robust growth forecasts for Vietnam this year as the economy has bounced back strongly despite external uncertainties and extensive damage caused by Typhoon Yagi.

The Asian Development Bank (ADB) projected a positive economic outlook for the country, forecasting its gross domestic product (GDP) growth at 6% in 2024 and 6.2% in 2025 in its September Asian Development Outlook (ADO) released on September 25.

“Vietnam’s economy showed robust recovery in the first half of 2024 and continues to maintain momentum despite global uncertainties,” said ADB Country Director for Vietnam Shantanu Chakraborty. “This steady recovery has been driven by improving industrial production and a strong rebound in trade.”

The industrial sector continues to be a primary driver of growth, with external demand for major electronics fueling production. Vietnam’s recovery has also been supported by a rebound in the services sector and stable agricultural output.

Inflation is expected to remain moderate at 4% for 2024 and 2025, although geopolitical tensions, including the conflicts in the Middle East, and between Russia and Ukraine could impact oil prices and potentially boost inflation, the bank said.

Meanwhile, the Hongkong and Shanghai Banking Corporation (HSBC) maintained its GDP growth forecast for Vietnam at 6.5% for both years, given that positive potential could offset the temporary economic losses caused by the super storm.

The country’s growth improved and surprised on the upside in the second quarter of 2024, rising 6.9% year-on-year. The manufacturing sector has emerged strongly from last year’s woes. The Purchasing Managers' Indexes (PMIs) have registered five consecutive months of expansion, while industrial production (IP) has registered a bounce-back in activity for the textiles and footwear industry as well.

This has supported robust export growth at a double-digit rate, with structural forces, such as expanding market access for Vietnamese agricultural produce, also underway.

Regarding inflation, HSBC experts said that price developments are turning more favourable in the second half of this year, as unfavourable base effects from energy have faded. An expected Fed easing cycle will also help to alleviate some exchange rate pressures.

Taking all these into consideration, the bank maintain inflation forecasts at 3.6% in 2024, well below the State Bank of Vietnam (SBV)’s target ceiling of 4.5%, while the figure for 2025 is 3%.

In its latest report, the Singapore-based United Overseas Bank (UOB) lowered its forecast for the Vietnamese economy to 5.9% from the previous prediction of 6% in 2024 after taking stock of Typhoon Yagi’s impacts, the country’s reconstruction efforts and a high comparative base from the second half of 2023.

Despite short-term disruptions caused by the typhoon, Vietnam’s long-term fundamentals remain solid, it highlighted.

The Singaporean bank also revised its projection of Vietnam’s GDP growth rate for next year to 6.6%, or 0.2% higher than its previous forecast.

The ADO also spotlighted several downside risks that could slow the country’s growth momentum. External demand in major economies will remain weak, while geopolitical tensions and uncertainties related to the US presidential election in November could lead to trade fragmentation, adversely affecting exports, manufacturing activity, and employment.

Furthermore, weak domestic demand and gloomy global economic prospects will add to the uncertainties. The US Federal Reserve’s rate cuts together with similar moves from the European Central Bank may weaken Vietnam’s exports.

According to HSBC, the domestic sector is recovering more slowly than initially expected, with retail sales growth still below the pre-pandemic trend. Encouragingly, the government has put in place measures to support a wide range of domestic sectors that is expected to shore up confidence with time.

Other risks that the Vietnamese economy may encounter include the disastrous consequences of Typhoon Yagi, sudden fluctuations in the global energy prices, food prices and the recovery levels on global demand, particularly in Europe.

The UOB said the typhoon’s impact is expected to be felt more clearly in the northern region towards the end of the third quarter and the start of the fourth quarter, resulting in reduced output as well as damage to manufacturing, agricultural and service facilities.

ADB experts suggested Vietnam to bolster domestic demand through stronger fiscal stimulus measures such as accelerating public investment implementation while maintaining low interest rates. Coordinated policy measures are essential for the country’s economic recovery, given relative price stability and weak demand.

Vietnam’s monetary policy will continue to aim for both price stability and growth, despite limited policy space. However, the heightened risk of nonperforming loans due to continued regulatory relaxation on loan extensions limits the potential for further monetary easing. Any additional loosening of monetary policy should be closely coordinated with an expansionary fiscal policy, along with accelerating institutional reforms to support the economy.

ADB Chief Economist Nguyen Ba Hung said with a view to ensuring growth in 2024 and 2025, it is important to ensure macro-economic stability with a more balanced combination of monetary and fiscal policies, along with comprehensive reforms in state management.

External demand weaker than expectations requires measures to boost business, helping stimulate domestic demand, he said, adding the SBV should continue its flexible monetary policy to facilitate low-cost funding to support growth.

Regarding relief efforts after Typhoon Yagi, Hung held that the best mechanisms for reconstruction are to rely on insurance and budget support like public investment in post-disaster infrastructure building and agricultural production.

Along with the government’s aid package worth VND350 billion (US$14.25 million), he recommended more attention to the insurance market, particularly specialised products for disaster risk management, and explained that insurance for assets, including public assets and crops, will help people and businesses quickly recover after natural disasters.

Vietnamese shrimp exports to China enjoy rebound

Vietnam’s shrimp exports during the eight-month period of the year to China soared by 21% to reach US$477 million against the same period from last year, according to figures released by the General Department of Vietnam Customs.

Vietnamese shrimp exports to this market throughout the reviewed period recorded a decrease in May before rebounding in June and then enjoying robust growth in July and August.

Statistics indicate that China imported 610,249 tonnes of frozen warm-water shrimp worth US$2.95 billion from January to August, down 10% in volume and 21% in value compared to the same period from last year.

Ecuador remained China's largest shrimp supplier with turnover falling by 20% to more than US$2 billion, followed by India with US$485 million, and Thailand with US$140 million.

The Vietnam Association of Seafood Exporters and Producers (VASEP) stated that the northern neighbour’s shrimp import volume for the entire year is likely to drop by 11% to only 933,083 tonnes, lower than the figure of more than one million tonnes last year.

Experts attributed this to China's economy facing difficulties while domestic shrimp prices remain low, therefore making importers more cautious.

Vietnamese shrimp exports to this market ahead in the remaining of this year are expected to recover due to the rising demand to serve the National Day holiday from October 1 to October 7 in the neighbouring country.

Localities urged to finish pre-feasibility study of HCM City’s Ring Road 4

Deputy Prime Minister Trần Hồng Hà has ordered HCM City to collaborate with localities to finish the pre-feasibility study report of the Ring Road 4 investment and construction project and submit it to the State Assessment Council in November.

Chairing a virtual meeting on Tuesday on the project’s implementation, he said localities should continue to prepare investment steps as soon as possible, including a plan to balance local budgets.

The Ministry of Transport has been asked to coordinate with localities to propose the Prime Minister assign the HCM City People's Committee to be the competent authority to prepare the pre-feasibility study report.

Deputy Minister of Planning and Investment Trần Quốc Phương said, in August 2023 the PM assigned the HCM City People's Committee to be the agency in charge of the Ring Road 4’s construction. This is a large-scale project, implemented under the public-private partnership scheme.

The Ministry of Planning and Investment has worked with localities where the HCM City’s Ring Road 4 passes through and proposed combining component projects through five localities into one big project.

Deputy Minister of Transport Lê Anh Tuấn said the transport ministry has agreed with localities on the project’s scale, investment phases, technical standards and related items.

The HCM City’s Ring Road 4 is expected to cover the length of 206.72km, including 18.73km in Bà Rịa - Vũng Tàu Province; 47.95km in Bình Dương Province; 16.7km in HCM City and 78.3km in Long An Province.

In the first phase, site clearance will be carried out following the approved planning.

Four complete expressway lanes, 21 interconnecting intersections, parallel roads and residential roads on both sides of the route will be constructed. 

Recruitment demand in emerging sectors surges

As Việt Nam's economy continues to recover, certain industries are finding it difficult to keep pace with the demand for skilled labour.

Sectors such as e-commerce, logistics and warehousing are growing rapidly, yet many companies are being forced to train their own staff due to a lack of formal educational programmes.

The challenge, however, is not limited to specialised fields. Even entry-level positions like drivers and warehouse workers are hard to fill.

Data from Việc Làm Tốt, an online job search platform, highlights that recruitment demand in the first eight months of the year increased by 30 per cent compared to the same period in 2023. The demand is concentrated in key southern economic regions and is particularly high in fast-growing sectors such as construction, real estate and logistics.

Despite this surge, 85 per cent of companies surveyed reported labour shortages, with 30 per cent facing severe gaps, some lacking more than half of the workers they require.

This labour market imbalance is a persistent issue. According to the Employment Department, over one million working-age individuals are either unemployed or underemployed. Meanwhile, companies across the country are struggling to recruit, with over 836,000 general labour positions still unfilled.

One major barrier is the absence of structured educational pathways for emerging industries like e-commerce and logistics.

Lê Thị Đoan Trinh, Deputy General Director of Human Resources at Scommerce, a start-up with 20,000 employees, spoke of the difficulty in finding qualified recruits. The company, which provides rapid delivery services through its brand Ahamove, primarily serves clients like Tiktokshop and Shopee.

“Many industries aren’t being taught at educational institutions fast enough,” Trinh told the Voice of Việt Nam.

“E-commerce, for instance, is covered in only a few schools. The same is true for logistics and warehousing. These are new industries where most companies have to train their employees internally.

"We’ve had to learn management and goods-sorting techniques ourselves. Training centres don’t offer classes in automated sorting, so we had to figure it out. Only in transportation can we hire workers who have gone through formal training.”

She added that, despite appearing straightforward, roles such as delivery drivers require a high degree of professionalism.

“Shippers need discipline and skills, like using smartphones for sorting goods and handling customer service. It’s not as simple as it seems.”

It’s not just e-commerce and logistics that are facing recruitment issues.

Lê Thị Bích Hằng, from the management board of Printing Company No. 7, described the printing sector’s labour shortage as critical.

With only 100 people nationwide receiving formal training in printing each year, companies are left scrambling for skilled workers.

“We had plenty of orders, but the lack of workers led to a crisis. In response, we developed an in-house training programme,” Hằng said.

This programme, the '40 Skilled Workers Initiative' focuses on hiring workers and training them internally. It takes two to three years for an employee to master printing machines, but the initiative has helped build a skilled workforce that now meets production demands.

Hằng noted that while they once hoped to hire graduates who could begin working immediately, it became clear that retraining was necessary.

“The advantage of today’s young workers is their energy, creativity and enthusiasm. We now recruit third and fourth year university students as paid interns to train them early, which helps alleviate recruitment challenges.”

Recruitment difficulties, however, are not solely tied to supply issues. The criteria that job seekers use when selecting jobs have shifted.

According to Hoàng Thị Minh Ngọc, chief operating officer at Chợ Tốt and director of Việc Làm Tốt, companies are facing three key challenges, including recruitment efficiency, optimising applicant screening and increased competition among businesses.

Many recruiters complain about the time-consuming process of sifting through incomplete resumes. Only 14 per cent of applicants meet the full requirements for technical skills, soft skills, and attitude.

Moreover, competition for talent is intense, especially with companies adjusting salaries and benefits to attract applicants. And it’s no wonder, today’s job seekers prioritise three main factors: salaries and benefits (56 per cent), a safe and comfortable work environment (52 per cent) and positive relationships with colleagues and supervisors (44 per cent).

Flexible work arrangements are also gaining popularity, with around 30 per cent of employees opting for part-time, remote, or freelance positions. This trend is reshaping the way businesses approach recruitment, particularly in industries where remote work is viable.

Trust has become a crucial element in the job search process. Job seekers increasingly value the credibility of job listings and companies, with 80 per cent expecting job postings to be authentic.

However, 30 per cent of candidates struggle to present themselves effectively in their resumes, and many find the recruitment process too cumbersome.

A large majority - 60 per cent hope for simpler application procedures.

Ngọc emphasised that while salaries and benefits might draw applicants in, a company’s corporate culture would be what keeps them.

“Salary is the initial attraction, but it’s the company culture that makes employees want to stay.” 

Dragon Capital steps back as major shareholder in PV Drilling

Foreign investment fund Dragon Capital has announced that its ownership share in PV Drilling has decreased to 4.92 per cent, and it no longer holds a major shareholder stake in the company.

DC Developing Markets Strategies Public Limited Company, a member fund of the Dragon Capital fund group, disclosed the sale of 500,000 PVD shares from PV Drilling on September 19.

Following this transaction, Dragon Capital's stake in PV Drilling decreased from 5.01 per cent to 4.92 per cent, meaning it no longer holds a significant shareholder position.

At the closing price of VNĐ25,750 per share on September 19, DC Developing Markets Strategies Public Limited Company is estimated to have generated close to VNĐ13 billion (US$528,240) from the sale.

In the first half of the year, PV Drilling's gross revenue reached over VNĐ4 trillion with a net profit of VNĐ281 billion, up 53 per cent and 34 per cent year-on-year, respectively. The achievement fulfils 65 per cent of the firm's revenue target and 74 per cent of the profit goal for the year.

Some financial institutions suggest that upcoming long-term contracts for jackup rigs and investments in new rigs will be key growth drivers for PV Drilling.

PV Drilling said that three of their four jackup rigs, including PV DRILLING I, II and VI, are set to secure new contracts, although rental prices are yet to be finalised.

BIDV Securities Company (BSC) expects a slowdown in rental rate increases in the Southeast Asian market, while overall rental rates in the region are expected to remain positive.

Currently, jackup drilling rigs rent for about $150,000 per day in the region, up 8 per cent since the year's start, promising profits for PV Drilling. 

PV Drilling leases rigs at around $98,000 daily but anticipates a $110,000 rate with new contracts. 

The company plans to invest $90 million in an additional used rig, seeking cost-effective options for higher operational efficiency and profitability. 

Market mixed on Monday as foreign bloc returns to net selling

The stock market began the week on a downturn, extending the VN-Index's losing streak to a second consecutive session as foreign investors resumed net selling after three consecutive net buying sessions.

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) closed at 1,287.94 points, down 2.98 points, or 0.23 per cent.

On the southern bourse, market breadth was negative, with 189 stocks declining, 115 advancing and 58 remaining unchanged. Liquidity fell to VNĐ16.3 trillion (US$659.8 million), marking an 11 per cent increase compared to the previous session.

The VN30-Index, which tracks the top 30 stocks by market capitalisation on the HoSE, edged down by 0.01 points to 1,352.5 points. Within the VN30 basket, 19 stocks fell, eight gained and three remained unchanged.

The market's downturn was led by large-cap stocks in the financial and real estate sectors, with the Bank for Foreign Trade of Vietnam (VCB) posting the steepest decline in market capitalisation, falling by 0.54 per cent and contributing nearly 0.68 points to the VN-Index's overall decrease.

It was followed by Vinhomes JSC (VHM), which declined by 1.38 per cent, the Bank for Investment and Development of Vietnam (BID), which dropped by 0.8 per cent, and Vingroup Joint Stock Company (VIC), which decreased by 1.18 per cent.

However, the market's losses were mitigated by gains in certain pillar stocks, led by the Vietnam Prosperity Joint Stock Commercial Bank (VPB), which rose by 1.77 per cent, contributing nearly 0.7 points to the VN-Index.

Experts from Viet Dragon Securities noted: “Liquidity declined compared to the previous session but remained at a high level, indicating that supply continues to exert significant pressure as the market approaches resistance levels. Given the current cautious candle signals, market movements may temporarily slow down and possibly undergo a correction in the upcoming session to test the supportive cash flow around the 1,285-point region.

"Therefore, investors should take a slower approach, observing the supply-demand dynamics to reassess the market's condition. For now, it is advisable to consider this rebound as an opportunity to adjust portfolios towards risk mitigation."

On the Hà Nội Stock Exchange (HNX), the HNX-Index also declined by 0.34 per cent, closing at 234.91 points.

During the session, shares worth more than VNĐ1.1 trillion were traded, with a total trading volume of over 56 million shares on the northern bourse.

Foreign investors resumed their selling spree, with net sales amounting to over VNĐ505 billion on the HoSE. 

Boosting Việt Nam-China trade and industrial cooperation

Minister of Industry and Trade Nguyễn Hồng Diên had a working session with China's Minister of Industry and Information Technology Jin Zhuanglong in Beijing on September 30 as part of the Vietnamese official’s trip to China for the 13th meeting of the Việt Nam-China Committee for Economic and Trade Cooperation.

Diên said that the Vietnamese delegation's trip to China aims to implement the common perceptions reached by senior leaders of Việt Nam and China during Party General Secretary and State President Tô Lâm’s August visit to China, and to continue promoting economic, trade and industrial cooperation between the two countries.

He thanked Jin and Chinese colleagues for coordinating with the Vietnamese side to sign a memorandum of understanding on industrial cooperation between the Ministry of Industry and Trade of Vietnam and the Ministry of Industry and Information Technology of China. The signing of this document is significant, as it serves as a basis for the two sides to promote cooperation in their areas of strength for industrial development, and at the same time to foster the cooperative relationship between the two ministries.

Diên said that industrialisation and modernisation is a thorough and consistent policy of the Party and State of Việt Nam. After nearly 40 years of Đổi Mới (Renewal), especially in the 10-year period from 2011 to 2020, the industrialisation and modernisation process has helped boost Vietnam's economic growth to an average of 6.17 per cent per a year, making Việt Nam a middle-income developing country.

He noted that Việt Nam's industrial sector has been restructured, with a reduction in the proportion of the mining industry and an increase in the share of the processing and manufacturing industries. A number of large-scale industries have been established with the capacity to compete and secure a solid position in the international market. Furthermore, the scale of industrial production has been continuously expanded.

The infrastructure of industrial parks and industrial clusters has developed, contributing to attracting domestic and foreign investors, especially in industries and fields with potential, advantages, and high added value, Diên said.

Việt Nam and China are neighbouring countries, and Việt Nam has participated in a series of free trade agreements with major partners, such as the Việt Nam-EU Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Economic Partnership Agreement (RCEP). These agreements have helped bring the production and supply chains between Việt Nam and China closer, creating more cooperation opportunities for businesses operating in the industrial sectors of the two countries.

To promote cooperation in industry between Việt Nam and China, Diên suggested that both sides should enhance collaboration in the automotive industry. This includes fostering partnerships with large corporations that have invested in Việt Nam and working with domestic companies in vehicle production and assembly to align with the government's direction and the Vietnamese market.

Regarding cooperation in the consumer goods industry, he proposed that China coordinate to organise workshops to share experience that would help Việt Nam in upgrading production lines and minimising raw material waste in food processing. He noted that China's food sector is applying advanced technologies such as 5G and artificial intelligence to improve operations in food processing.

Diên also called for increased collaboration on scientific and technical research, as well as technology transfer in the exploration, extraction, processing, and utilisation of minerals. This would help improve efficiency, reduce resource loss, increase labour productivity, and ensure environmentally friendly products in compliance with Vietnamese laws and standards.

Additionally, both sides need to strengthen exchanges and share experiences and policies at both central and local levels regarding supply chain development, as well as promote linkage between Chinese FDI enterprises and domestic Vietnamese companies. He also requested that China enhance support for Vietnamese businesses to deeply engage in supplying products and services to foreign investors, share information, and organise training sessions to assist Vietnamese officials and experts in managing and developing industries.

The Vietnamese government has attractive policies to draw foreign businesses to invest in foundational industries, supporting industries, mechanical technology, manufacturing, and new energy sectors, Diên said. He expressed his wish for both sides to expedite the implementation of three railway routes connecting Vietnam and China, namely Lào Cai-Hà Nội-Hải Phòng, Lạng Sơn-Hà Nội, and Móng Cái-Hạ Long-Hải Phòng lines.

For his part, the Chinese Minister of Industry and Information spoke highly of the memorandum of cooperation recently signed between the two ministries in August this year, suggesting that both sides establish regular cooperation and exchange mechanisms to further enhance economic and industrial collaboration. Highlighting areas with significant potential for cooperation, Jin said that businesses from both countries could boost collaboration in sectors of mutual interest, such as raw materials, the automotive industry, electrical engineering, and the development of industrial zones.

He mentioned that major automobile manufacturers in China plan to expand their investments and operations in Việt Nam, and his ministry is committed to supporting Chinese companies in this endeavour.

Regarding the proposal for cooperation in the mineral sector, Jin affirmed that this area holds significant potential for both sides, and China is ready to collaborate with Việt Nam to support businesses in researching and implementing joint projects in mineral exploration, exploitation and processing while adhering to the legal policies of both nations.

Affirming that there remains ample room for Việt Nam and China to cooperate in the industrial sector, he suggested that both sides promote the development of supply chains, enhance collaboration in electrical engineering, consumer goods, supporting industries, and foster the development of aerospace technology. 

Global supply shortage expected, creating opportunities for Vietnamese firms

The Association of Natural Rubber Producing Countries (ANRPC) has revised its forecast for the shortage of natural rubber this year and warned that increased shortages may persist until 2028.

Specifically, ANRPC has lowered its forecast for the supply of natural rubber in 2024 from 14.54 million tonnes to 14.50 million tonnes due to unfavourable climatic conditions as the El Nino phase transitions into La Nina, along with a widespread leaf fall disease negatively impacting both yield and quality of rubber latex.

Smallholder rubber farmers in top rubber-producing countries, including Thailand and Indonesia, are also reluctant to expand their planting areas due to labour shortages and the emergence of more economically valuable crops.

ANRPC warns that this supply shortage could continue until 2028, leading to a global shortfall of around 600,000 to 800,000 tonnes of rubber annually.

Meanwhile demand appears to be on the rise, as ANRPC has revised its forecast for global rubber demand this year from 15.67 million tonnes to 15.75 million tonnes.

This upward revision is driven by the expectation that China's consumption will gradually recover as the Chinese government implements various policies to boost economic growth.

These developments have caused a sharp rise in global rubber prices during the first eight months of this year.

By the end of August, the price of TSR20 rubber hit US$1.8 per kilogramme, marking an increase of 34 per cent year-on-year, while the average export price of Vietnamese rubber was $1,637 per tonne, up 26 per cent year-on-year.

This price surge has boosted revenues for rubber companies, including the Việt Nam Rubber Group.

According to a recent assessment by MB Securities, the average rubber price for Việt Nam Rubber Group this year is expected to reach VNĐ36.8 million per tonne, an increase of 14 per cent compared to 2023. Total consumption is estimated at around 500,000 tonnes.

As a result, revenue from the rubber segment is projected to hit VNĐ18.35 trillion (US$716.8 million), up 9 per cent compared to 2023.

Additionally, the gross profit margin for this segment is forecast to reach 29 per cent, an increase from 22 per cent in 2023.

The rubber production segment currently contributes up to 60 per cent of the group's total profit.

Việt Nam Rubber Group's consolidated profit before tax for this year is therefore forecast to reach VNĐ5.56 trillion, a 40 per cent increase compared to 2023.

Green logistics development is key to boosting competitiveness for transport firms

Many transportation businesses are currently striving to build green logistics and environmentally friendly supply chains to achieve a competitive advantage in the market.
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According to a study conducted by the International Energy Agency (IEA), up to 37% of global greenhouse gas emissions are due to transportation, which is one of the most important parts of logistics.

Currently, developing economies in Asia, Africa, and Latin America are expected to triple their freight demand by 2050. This will lead to a doubling of greenhouse gas emissions. In this new context, sustainable development represents a trend for all economies, meaning developing green logistics is becoming more urgent than ever.

Faced with these changes, many businesses in the transportation industry have duly invested in upgrading equipment, switching from running on oil to using electricity or clean fuels for cranes and vehicles running in ports.

Truong Nguyen Linh, deputy general director of Vietnam International Container Terminal (VICT), said, "The seaport management system is really large and many subsystems can be upgraded, in addition to investing in developing the electronic port system.

This year we are also trying to achieve ISO 9001 standardization, further we are trying to get ISO 14,000 certification for environmental issues, and ISO 45,000 for human health."

According to Linh, VICT is also carrying out a number of solutions aimed at reducing dust in the air and noise, such as using barges to transport goods instead of container trucks.

In 2023, this unit will also start switching to an electronic seaport model (Eport) in a bid to help customers update the status of actual ship and cargo data 24/7, thereby aiming to achieve the criteria of building a "green port" in 2024.

For businesses operating in the road transport sector, greening is viewed as a significant challenge. Accordingly, green logistics is mainly implemented through replacing vehicles using internal combustion engines with electric or hybrid vehicles, as well as making use of biofuels and sustainable fuels in transport.

However, according to experts, the transport infrastructure in the nation is still not complete, especially in remote areas. This therefore makes it difficult to deploy environmentally friendly means of transport such as electric vehicles.

The lack of supporting infrastructure such as charging stations for electric vehicles, warehouses, and green distribution centres is also a barrier for enterprises.

Harry Lu, development director of Sunny Auto Company, shared, "If we switch from diesel vehicles to electric vehicles, we will reduce at least 50 - 60% of carbon emissions. If the trucks are charged by solar energy, the carbon emissions will reach over 90%. However, the current conditions in Vietnam are not very suitable, because there are not enough large-capacity charging stations."

MSc. Cao Minh Nghia, deputy head of Economic Development Department under the Ho Chi Minh City Institute for Development Studies, said firms need to link together in order to create collective strength.

“Small businesses should link up with large ones that already have a complete system to receive support for mutual development. The state's support is needed while businesses need to accompany the government to change their mindset and perception that logistics transformation is an important task," Nghia shared.

Greening the transportation industry or green logistics is not only a responsibility, but can also be viewed as a driving force and an urgent requirement.

In the context of increasingly deep international economic integration as we see today, if firms do not quickly and immediately implement the criteria to green the logistics industry, then in the future enterprises will face many difficulties and gradually be "eliminated" from business, trade, and import-export activities both domestically and globally.

Garment - textile industry pins high hopes on FDI inflows

Vietnam has so far attracted 3,500 foreign direct investment (FDI) projects in the garment - textile industry with a combined value of 37 billion USD, according to the Vietnam Textile and Apparel Association (VITAS).

The FDI area plays a crucial role in the industry’s growth, accounting for 65% of its total export turnover.

According to VITAS, Vietnam’s textile and garment industry is witnessing a strong surge in FDI inflows, with many large corporations pouring money into building modern factories.

The countries and territories investing big in Vietnam in this field include the Republic of Korea (RoK), China, Japan, India and Taiwan (China).

In late September, Sanbang Co., Ltd of Singapore began construction of its plant of towels, fabrics, DTY yarn at Rang Dong Textile Industry Park in the northern province of Nam Dinh with a total investment of 673.5 billion VND (nearly 30 million USD). Covering an area of 103.400 sq.m, the plant is expected to officially become operational in the fourth quarter of 2025, generating many jobs for local labourers.

Besides, several other major projects are underway, including a textile dyeing factory worth 203 million USD invested by Top Textiles Co., Ltd of Japan’s Toray Group at the park.

In February this year, the provincial authorities granted an investment license for Crystal International Group Limited Group of Hong Kong (China) to develop the Yi Da Denim Mill Co., Ltd with a total investment of nearly 1.47 trillion VND (about 60 million USD).

Meanwhile, SAB Industrial (Vietnam) Company Limited of Weixing Group inaugurated a 6-million-USD plant producing clothing accessories in the Bim Son Industry Park in the northern central province of Thanh Hoa in March.

Vietnam’s participation in free trade agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU – Vietnam FTA (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP), also helps the country expand export markets for textile and garment products.

According to VITAS General Secretary Truong Van Cam, thanks to international integration efforts and effective foreign investment attraction strategies, the textile industry has become attractive for foreign investors, thus helping to improve production capacity and export scale.

Experts said that Vietnam should seeks ways to promote linkage between FDI enterprises and domestic ones to further develop the textile and garment support industry.

Attention should be paid to building technical standards and regulations related environmental protection and energy saving, thus creating a solid foundation for sustainable development of the industry, they stressed.

Vietnam is the third largest textile exporter in the world, after China and Bangladesh. Positive signals in 2024 show that the industry's export turnover is likely to exceed the target of 44 billion USD this year./.

Vietnam attends World Congress on Logistics in Panama

The Vietnam Logistics Service Business Association (VLA) represented Vietnam at the World Congress 2024 of the International Federation of Freight Forwarders Associations (FIATA) that was held in Panama from September 23-27.

The event attracted over 800 representatives from logistics businesses across the world.

VLA President and head of Vietnamese delegation to the event Dao Trong Khoa said that the congress helps Vietnamese logistics firms to meet, exchange and seek cooperation opportunities with leading peers in the world.

On this occasion, the VLA official received the baton to host the FIATA World Congress (FWC) 2025.

Khoa said the organisation of the FWC 2025 is backed by Vietnamese Government, ministries and agencies. Notably, then Prime Minister Pham Minh Chinh received the FIATA and VLA delegations twice in Hanoi in 2023 and 2024, and affirmed the strong support of the Vietnamese Government for the FWC 2025.

Leaders of the Ministry of Industry and Trade, the Ministry of Transport, the Vietnam Chamber of Commerce and Industry, and other ministries, ministries and localities also met with FIATA and VLA representatives to express their support for the organisation of FWC 2025.

With a strategic location as a gateway to the Indo-Pacific region and its particularly important position in global trade flows, Vietnam is expected to become a logistics and trade hub for the region and the world.

Vietnam is deeply integrated into the global economy with 19 signed free trade agreements and an expected import-export growth of over 15% next year. This trade expansion is supported by the Vietnamese logistics industry with more than 45,000 companies that play an important role in connecting Vietnam to the world, Khoa said.

He added that Vietnam’s commitment to improve infrastructure is demonstrated by the effective operation of Cai Mep Port, which is ranked the 7th most efficient container port in the world by 2023.

Vietnam’s strong logistics ecosystem complements the country’s position as a leading manufacturing hub where global giants such as Samsung, LG, Intel and Foxconn chose to come, the VLA President said./.

How to improve effectiveness of implementing international treaties and FTAs under discussion

A thematic conference on international treaties and free trade agreements (FTAs) for the Central Highlands provinces was held by the National Assembly (NA)'s Committee for Foreign Affairs on September 30 in Da Nang.

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The purpose of the event is to continue researching and proposing solutions aimed at ensuring national interests and prestige, whilst also raising the nation’s responsibility to the wider world.

At the conference, Nguyen Manh Tien, vice chairman of the NA’s Foreign Affairs Committee, said that with 16 FTAs and many other international treaties signed by the nation, the country has recorded plenty of good results. However, looking back at the implementation process, many points have also been revealed that need to be duly considered and adjusted.

The nation currently has an open economy with the signing and joining of many international treaties in the field of economics and trade, especially being a member of 16 FTAs.

The effective implementation of FTAs, especially new generation ones, has thereby created opportunities for the country to both expand and diversify markets with high incentives, whilst also engaging more deeply in the global supply chain and production network.

This actively contributes to the process of synchronous and comprehensive innovation, unleashing the country's potential, creativity, improving people's lives, raising the level of development, and gradually reducing the proportion of processing and assembly in the national economy.

However, many Vietnamese enterprises have not yet taken advantage of tax incentives through the application of rules of origin and certificates of origin in FTAs. Many advantageous products have a rate of using certificates of origin (C/O) of 92% to 100% in FTAs, such as corn, wheat, various types of paper, fertilizers, trucks, some iron and steel products, footwear products, and textiles, although the export value is not high.

Furthermore, every year sees the nation face many anti-dumping and anti-subsidy lawsuits.

At the conference, delegates focused on assessing the implementation of international treaties and FTAs ​​on the promulgation of legal documents to organise and carry out international treaties; the organisation of apparatus, operational mechanism, co-ordination in the implementation of international treaties of the Government, ministries, sectors, and localities; as well as the role and responsibility of relevant agencies in supervising the implementation of international treaties.

Pham Quynh Mai, deputy director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, said that over the past eight years since Vietnam joined and implemented FTAs, exports have penetrated deeply into the markets of partner countries, whilst the trade balance has maintained a trade surplus.

Most notably, when signing and implementing three new generation FTAs, including the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the UK-Vietnam Free Trade Agreement (UKVFTA), Vietnamese export turnover has grown strongly. Especially with the CPTPP, it has opened the door for Vietnamese goods to enter new markets such as Canada, Mexico, and Peru.

However, Pham Quynh Mai also commented that the implementation of FTAs ​​still has shortcomings and limitations. The proportion of new generation FTAs ​​in general exports remains modest, FDI enterprises account for a large proportion, Vietnamese exports are mainly raw, and there is a lack of brands in the FTA market.

Moving forward, the Ministry of Industry and Trade will primarily focus on disseminating and monitoring the implementation of FTAs. Specifically, the Ministry will strive to innovate the method of disseminating information through propaganda videos, supporting the implementation of FTA commitments, as well as building a set of indicators to monitor the implementation of FTAs ​​(FTA Index). In addition, the Ministry recommends that the NA and the Government continue to implement groups of solutions on institutions, support businesses, human resources, among many other suggestions.

According to the Ministry of Foreign Affairs, last year witnessed the nation sign and join in 83 international treaties. Of which, there were 78 bilateral treaties and five multilateral treaties. It is expected that this year, ministries and sectors will propose signing and joining 54 international treaties, most of which are bilateral deals relating to co-operation in crime prevention and control, extradition and the transfer of convicted persons, the exchange and protection of confidential information, and mutual legal assistance in criminal matters.

In the coming time, the Ministry of Foreign Affairs proposes that the Government continue to direct and make proposals for signing international treaties in the fields of trade, investment, energy, digital transformation, the environment, and green growth, all of which should be in accordance with the guidelines, policies, and orientations of the Party and State.

Source: VNA/VNN/VNS/VOV