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

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

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

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

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

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

Binh Duong needs 300 million USD to upgrade urban infrastructure

The southern province of Binh Duong is implementing a plan to access loans of nearly 317 million USD to upgrade urban infrastructure for residents' better living conditions, according to Vice Chairman of the provincial People’s Committee Mai Hung Dung.

The urban infrastructure upgrade project, part of the province’s strategy to develop modern and sustainable urban areas, will be implemented from 2024 to 2031 in areas with high population density and rapid urbanisation rate including Thu Dau Mot, Thuan An, and Ben Cat cities, and Phu Giao and Bau Bang districts.

These areas are facing environmental and infrastructure challenges, requiring synchronisation in developing wastewater treatment systems, protecting resources and meeting the needs of urban growth.

The Asian Development Bank (ADB) will provide a loan up to 70.5% of the total investment while Binh Duong province will cover the remaining 29.5%.

Neeta Pokhrel, a representative of ADB, affirmed that the bank fully supports Binh Duong's project in terms of both scale and capital structure.

ADB is also particularly interested in securing land for wastewater treatment plants. She also emphasised the importance of cooperation with local authorities in approving and implementing the project quickly./.

Vitenam, Italy seek to further step up locality-to-locality cooperation

The Ministry of Foreign Affairs and the Embassy of Vietnam in Italy, in collaboration with Italian and Vietnamese partners, has co-hosted a Vietnam-Italy local partnership and cooperation conference in northern Bologna city.

The October 17 event brought together 200 delegates being officials, representatives of localities, corporations, and businesses from the Italian regions of Emilia-Rogmana, Lombardia, Piemonte, Liguria, Toscana, Marche, Puglia, Campania, and Calabria; and Kon Tum, Ha Nam, Nghe An provinces and Ho Chi Minh City of Vietnam.

Being the first of this kind, it marked an important development milestone, opening up new opportunities for cooperation to meet the rapidly growing demand for collaboration between localities of the two countries.

In his opening remarks, Ambassador Duong Hai Hung emphasised that the two sides boast great cooperation potential that needs to be explored as Vietnam is strongly pursuing deep international integration, with its 63 provinces and cities playing a key role in this process; and Italy, with its 20 regions, is promoting internationalisation and expanding into new markets.

He highlighted the significance of the conference as providing a venue for localities from the two countries to meet, exchange ideas, connect, and initiate cooperation activities, as well as establish partnerships in various fields, including agriculture, food and beverages, industry, and machinery.

Councilor for agriculture and agri-food of the Emilia-Romagna region Alessio Mammi said the event can open up new cooperation opportunities between the region and Vietnamese localities.

Through the two thematic workshops on agriculture, food and beverages, industry, manufacturing, machinery, and renewable energy, participants were introduced to the potentials, strengths, and cooperation opportunities, and updated on information on policies, incentives, and specific cooperation proposals by representatives from Vietnamese and Italian localities.

Francesca Alicata from SIMEST, an Italian credit organisation supporting businesses abroad, announced that the agency recently opened its office in Ho Chi Minh City with the aim of providing full support to Italian businesses seeking to operate in Vietnam.

This local partnership conference is a result of delegation exchanges between the two countries, especially the visits by staff of the embassy to almost all regions of Italy within the framework of the Vietnam-Italy Year 2023 and a programme to connect Vietnam and southern Italian localities the first half of 2024./.

Retail businesses upping their game towards year-end

As the domestic retail market is forecast to maintain growth until the end of the year, retail groups and businesses are jumping at the opportunity for expansion and finding new ways to attract customers.

Statistics from the Ministry of Industry and Trade showed total retail sales of goods and services continued to grow each month from the beginning of the year, a sign that the economy is growing.

The retail sales of goods reached nearly VNĐ3.2 trillion (US$142.8 million) for the first eight months of the year, up 7.9 per cent against the same period last year.

The country’s private consumption accounted for 70 per cent of GDP in 2024, which is relatively high compared to other countries in the region.

Strong consumption should be encouraged as it motivates businesses to improve their production, products and services to higher standards, economic experts have said.

Major retail chains have been taking advantage of this upward trend, reorganising their stores and taking advantage of online retail platforms to increase revenue.

WinCommerce general director Nguyễn Thị Phương said the company is raising the number of physical stores – WinMart, WinMart+ and WIN – across the country.

“By the end of March we had 3,667 supermarkets and stores nationwide. We aim to have more than 4,000 by the end of the year,” she said at the annual meeting with shareholders of WinCommerce’s parent company, Masan Group.

The Bách Hóa Xanh (Green Department Stores) chain added two new stores to their network in May after a long period of closing down loss-making ones, increasing their total stores to 1,698 nationwide.

A new FujiMart supermarket was launched in Hà Nội’s Ba Đình District in June, increasing the total of stores by the Japanese group Sumimoto in the capital city to 11.

Construction started on a new AEON mall in the southern province of Long An in late May. It is going to be the eighth mall by the Japanese retail giant Aeon Group in Việt Nam, with operations expected to begin in late 2025.

AEON Việt Nam general director Furusawa Yasuyuki said the company was looking to diversify their store models and sizes.

“We will not only be making changes to the existing AEON malls but also adding new AEON shops to our partners’ shopping malls,” he said.

Smaller businesses such as the Kon Tum Cordyceps Mushroom Cultivation Cooperative in the Central Highlands are also finding ways to boost sales.

Business has not been going well for the company in the last few months, as their products are not essential goods. However, despite having stopped selling through physical retail shops, the company is trying to generate leads online through social media and e-commerce platforms, according to director Đoàn Quốc Anh Khôi.

“We are trying to utilise social media platforms such as Facebook, Zalo, TikTok Shop and e-commerce platforms such as Shopee and Lazada,” Khôi said.

“We run advertisements and do livestreams to introduce our products to platform users,” he added.

“Sales have been slow but we still have to try our best, because selling online is a trend now and buying online is the customers’ habit.”

According to Nguyễn Đức Anh, chair of the Association of Vietnam Retailers (AVR), Việt Nam’s retail market was valued at $142 billion and estimated to increase to $350 billion next year. The market has a huge potential to grow further if the State offers support.

“Goods producers and distributors should be given practical preferential treatments, such as direct deduction on rental prices,” he said.

On the macro level, suppliers across the country should be connected in a way that enables them to capitalise on their strengths and complement and collaborate with each other instead of competing unfairly, he added.

Collaboration should also be fostered across sectors to nurture the economy as a whole, not only within a sector. “For example, tourism should work with trade so they both can grow,” he said.

Science and technology should be an indispensable part of agricultural production. There should be designated areas for growing crops so the produce’s quality can be controlled, ensuring health and safety for consumers, Anh added. 

Imported cars dominate over domestically assembled vehicles

Việt Nam's automotive market has seen significant growth in recent years, thanks to Government initiatives aimed at encouraging domestic production, according to the Vietnam Automobile Manufacturers Association (VAMA).

Sales of new vehicles have surpassed 400,000 units annually, showcasing the expanding market. However, despite these efforts, imported cars continue to dominate over domestically assembled vehicles. The growth of the auto industry has had a positive impact on the economy, generating numerous jobs and contributing to the development of supporting industries.

The growing preference for imported cars in Việt Nam's auto market is evident. From 2016 to 2023, the proportion of imported cars rose significantly, from 22.1 per cent to 30.8 per cent. This trend has continued in 2024, as shown in the sales report from the VAMA.

In the first nine months of 2024, domestically assembled car sales dropped by 7.5 per cent, with 113,641 units sold. Meanwhile, imported cars saw a sharp rise, with 111,942 vehicles sold, up 28.5 per cent compared to the same period in 2023. This reflects the strong consumer demand for imported vehicles.

The automotive market in Việt Nam is experiencing significant growth in both the new and used car segments, particularly with imported models. New car models such as Mitsubishi Xpander, Ford Everest, Hyundai Stargazer and Toyota Yaris Cross are popular choices among buyers. These imported vehicles often dominate the sales charts.

According to the Market Research and Analysis Department of Nextgen Vietnam Joint Stock Company (oto.com.vn), in the used car market, the trend is also notable. From 2019 to 2022, around 37 per cent of used car listings were for imported models. However, this number surged to about 50 per cent in 2023 and remained at around the same level in the first nine months of 2024.

Larger vehicles like MPVs, SUVs and pickup trucks are highly sought after in Việt Nam, with models like the Mitsubishi Xpander being a prime example. The Xpander is available in both imported and locally assembled versions, but the used market saw a significant preference for imported models, with nearly 4,000 advertisements for used imported Xpanders in the third quarter of 2024 alone. This surpassed the number for domestically assembled versions, indicating the lasting appeal of imports.

Similarly, despite the switch to domestic assembly for SUV models like the Toyota Fortuner and Ford Ranger since 2019 and 2020, these imported versions continue to attract attention, reflecting their sustained popularity in the market.

For smaller cars like the Kia Morning and Hyundai Grand i10, which are now fully assembled in Việt Nam, older imported models from South Korea, particularly those from 2015 and earlier, remain in demand, with almost 7,000 ads for sale in the same period. This highlights a robust second-hand car market across both large and small vehicle segments.

According to car experts, the origin of a car plays a significant role in the Vietnamese car market, where many consumers tend to favour imported vehicles from countries like Thailand, Indonesia, Japan and South Korea, believing them to be of better quality than domestically assembled models. This perception contributes to the ongoing popularity of imported cars, even as domestic assembly improves.

Thailand and Indonesia, both with well-established automobile industries, exported large numbers of vehicles to Việt Nam over the past few years. In 2023, Thailand and Indonesia sold 775,700 and one million vehicles to Việt Nam respectively. These countries are Việt Nam's top sources for car imports.

Many car buyers in Việt Nam place a high value on the car’s origin, with over 372,000 searches for this factor in the third quarter of 2024, surpassing the number of searches related to car colour. This preference affects the market for used cars, with buyers often willing to pay a premium for imported vehicles.

Some models, such as the Mitsubishi Xpander, Ford Ranger and Toyota Fortuner, have both imported and assembled versions available at similar prices when new. However, in the used car market, imported versions tend to be priced higher. For example, a 2022 Hyundai Creta imported before domestic assembly started commands a resale price VNĐ5 million higher than its 2023 assembled counterpart.

The price gap becomes more noticeable with models like the 2021 Ford Ranger and Toyota Fortuner, where imported used cars generally fetch higher prices than their domestically assembled versions, highlighting the enduring perception of better quality associated with imported vehicles.

HCM City seeks $948m in private investment for sports, cultural projects

HCM City is soliciting private investment for 23 projects in the sports and cultural sectors with a total estimated value of VNĐ23.6 trillion (US$948 million) under the public-private partnership (PPP) framework.

During a recent investment promotion conference, Phan Văn Mãi, chairman of the municipal People’s Committee, said that this year the city will prioritise attracting investment for five key projects, each exceeding VNĐ2.3 trillion ($92 million).

These priority initiatives include the construction of an arts performance centre in District 5 (VNĐ164 billion); the Gia Định Theater in Bình Thạnh District (VNĐ250 billion); the HCM City Cultural Centre in District 1 (VNĐ295 billion); the HCM City Cultural and Arts Centre in Thủ Thiêm urban area (investment amount to be determined); and a multi-purpose cultural and sports centre in Cần Giờ District (VNĐ1.6 trillion).

In addition, 18 projects costing over VNĐ21.2 trillion were presented for business evaluation during the meeting.

During the discussions, several investors expressed concerns regarding the anticipated returns on investment in this sector, indicating that they are not particularly appealing, raising apprehensions about scenarios in which "revenue fails to cover costs."

Investors also highlighted the uncertainties surrounding support policies and the likelihood of low returns on their investments.

They called for the establishment of a dedicated contact point to facilitate more efficient communication with city officials regarding the complexities inherent in public land projects.

Mãi, chairman of the People's Committee, acknowledged the challenges, stating: "While cultural projects may not yield high profitability, the city is committed to supporting investors through flexible management models and compensation mechanisms for revenue shortfalls."

Nguyễn Văn Hùng, minister of Culture, Sports and Tourism, said that the ministry would collaborate with the city to address challenges that fall outside its jurisdiction.

The municipal People’s Council has recently approved several key socio-economic resolutions aimed at tackling the city's challenges and driving growth in 2024, including calling for investment in public projects in various fields.

In addition to the 23 sports and cultural projects, the council also called for six projects in the healthcare sector and 12 projects in the education and training sector. 

Award-winning female entrepreneurs inspire women to pursue their dreams

Despite their differences in age and background, the two female awardees from the central province of Nghệ An at the 2024 National Competition 'Women in Innovative Startups and Green Transformation' have crafted remarkable stories of entrepreneurship.

Their journeys inspire confidence in women to boldly pursue their dreams and aspirations.

Phạm Thị Phượng, 43, from Nghi Hương Ward, Cửa Lò Town, is the founder of the Circulating Hydroponic Centella Asiatica Cultivation model.

From a young age, Phượng was familiar with the centella asiatica fields, a simple plant that not only adds flavour to family meals, but also serves as a refreshing drink, soothing the harsh summer heat of the coastal region.

However, as space became scarce, finding room to grow centella became more difficult. This challenge sparked Phượng’s idea to develop a clean, safe cultivation method that also saves land space. The solution was hydroponic farming.

As a pharmacist with a passion for biology, after extensive research and together with her husband, they invested VNĐ200 million to build a 200sq.m hydroponic farm. They installed over 1,200m of water pipes with holes for planting, creating an ideal environment for the centella plants to grow.

Beneath the system, adjacent fishponds were built to integrate aquaculture and farming. The first harvest in late September yielded nearly 100kg of produce.

According to experts, the centella asiatica plants in Phượng’s model grow well, have a stable quality and after being dried, are favoured by many customers. Although there are still many challenges to perfect and expand the model, Phượng is confident that with persistence, these obstacles can be overcome.

Phan Lệ Hàn, who has been by his wife’s side throughout the journey, shared that Phượng’s legs were almost immobile from birth, and she grew up relying on wooden crutches and a wheelchair. However, with optimism and determination, Phượng overcame these difficulties and was accepted into Nghệ An Medical College, where she studied pharmacy.

In 2008, she graduated, but due to her limited mobility, she found it difficult to secure a job in healthcare facilities. In 2010, she decided to open her own pharmacy. Initially, it sold only simple medicines, but with her expertise and hard work, she expanded the store.

Now, as she is determined to develop a new economic model, Hàn fully trusts his wife and gives her his unwavering support. He believes that this model is not only an innovative farming method but also a testament to Phượng’s resilience.

"She’s always so full of positive energy, overcoming every challenge with strength, becoming a source of inspiration for me and everyone around her," he told Nghệ An online newspaper.

Nguyễn Thị Mến, 34, Director of Mom Beauty Production and Trading Co., Ltd in Vinh City has been awarded the special prize at the 2024 National Competition 'Women in Innovative Startups and Green Transformation' for her project on nutritional ecosystem from green agricultural products.

Few people know that behind this remarkable success lies a journey of building a business from nothing, undertaken by a young woman from the mountainous district of Tân Kỳ.

Mến was born into a farming family in Nghĩa Đồng Commune, Tân Kỳ District. In 2015, she got married and moved to Vinh City. With a degree in accounting, Mến had always dreamed of working in her own field.

However, after giving birth, she temporarily put her career dreams on hold to focus on her role as a mother. When her child showed signs of malnutrition, she became concerned and began making her own baby food. As her child's health improved, Mến shared her homemade products on social media.

Her posts garnered significant attention from other mothers and soon, they began placing orders for her baby food. As demand grew, Mến rented a small space, bought equipment and dedicated herself to producing her products. By 2018, recognising the increasing market demand, she decided to establish her company.

Starting a business was not easy, as Mến faced numerous challenges due to limited capital and fierce market competition. However, with her sharp business acumen and experience in creating high-quality products, she gradually steered her company through these difficulties.

Through her efforts, Mến's company has achieved significant milestones, such as being recognised among the Top 10 Brands and Products/Services in ASEAN in 2022. The company also received a 4-star OCOP certification from the Nghệ An Provincial People's Committee.

However, for Mến, the most meaningful achievement is becoming a source of support and inspiration, helping many women earn stable incomes through her model.

In addition to employing 50 women directly at her production facilities, Mến has expanded her business to 46 stores nationwide. More than 2,000 mothers have partnered with agents and stores to develop sales channels, helping them achieve economic independence and stability.

Furthermore, Mến has become a bridge for the sale of agricultural products for 19 farming households specialising in grain cultivation in Tân Kỳ, Nam Đàn, Nghĩa Đàn and Hưng Nguyên districts, ensuring a steady supply.

“This is not just a journey of building a brand. More importantly, I want to spread confidence and encourage the women around us to dare to pursue their dreams. I believe that every woman has the right to dream and can turn those dreams into reality through determination and continuous effort,” Mến said. 

Prices of fresh areca nuts in Vietnam hit record highs due to Chinese demand

Prices of fresh areca nuts in Vietnam have surged to record highs, primarily driven by strong demand from China.

In provinces like Quang Ngai, Dak Lak, Tay Ninh, Tien Giang, and Kien Giang, the nuts are being sold at 80,000 - 85,000 VND (3.20 USD) per kilogram. In northern areas such as Bac Ninh and Nam Dinh, prices have reached up to 90,000 VND per kilogram due to limited supply.

Traders attribute the price increase and the sustained high levels over recent months to China’s shortage of domestic areca nut supply, leading to an uptick in imports from Vietnam.

China is a major consumer of areca nuts, with Hainan being the main production region, accounting for 90% of the country's fresh areca output, with Wanning County contributing half. However, since the 1980s, the areca nut trees there have been plagued by a yellow leaf disease, which has significantly impacted production.

By June 2024, 80% of the areca nut trees in Wanning were infected with the yellow leaf disease, causing production to plummet from 220,000 tonnes in 2014 to just 40,000 tonnes in 2024. With no cure for the disease, China has had to boost imports from other countries, with Vietnam emerging as a key supplier.

A major factor behind China’s increased purchases of Vietnamese areca nuts is the production of areca nut candy, a traditional treat. The young nuts, with unformed or very small seeds, are collected, boiled, dried, and processed into candy. The candy, known for its mildly sweet and spicy flavour, is popular during the winter for its warming properties and sore throat relief.

In addition to being used in sweets, areca nuts are also incorporated into Chinese cuisine, such as stir-fried with duck, stewed with quail, or cooked into congee for health benefits. According to 2020 statistics from The Paper, sales of areca-related products in China have been increasing by 20% annually.

The high demand from China has driven the price of areca nuts in Vietnam to surge in 2024, bringing significant income for farmers, especially in long-standing areca-growing regions. However, the heavy reliance on the Chinese market presents risks. Should demand from China decrease or the market experience volatility, areca nut prices could drop sharply, causing losses for growers.

To ensure sustainability, Vietnamese farmers need to focus on quality management, diversify export markets, and develop additional processed areca products. Expanding cooperation with other countries and enhancing value-added processing will help reduce risks and maintain stability in the areca nut industry./.

Vietnamese goods welcomed by French consumers

The Vietnamese Goods Week opened at Carrefour Collégie mega mart in Paris on October 18, drawing a large number of shoppers.

The opening of the annual event was attended by Vietnamese Ambassador in France Dinh Toan Thang, Director of Carrefour France Julien Munch, representatives from the Ministry of Industry and Trade, T&T Food, Vietnamese brands, and local officials and businesses of Vietnam and France.

This is the fourth year that the event has been held at the leading supermarket chain in France, marking a big step forward in the promotion and expansion of the presence of Vietnamese products and culture in this market.

It was jointly carried out with the cooperation between the Vietnam Trade Office in France, Carrefour France, and strategic partner T&T Foods.

Vu Anh Son, head of the Vietnam Trade Office in France, said that this year's event is organised on a significantly expanded scale, not limited to the Carrefour supermarket as in previous times but extended to the entire Collégien Trade Center. This is the first time visitors have an opportunity to experience a miniature Vietnamese space right in the heart of France, with decorative designs imbued with Vietnamese identity such as village gates, lanterns, and images of famous landscapes, Vu said.

This year, the Vietnamese Goods Week attracts nearly 10 reputable Vietnamese enterprises as goods suppliers with their most typical and quality products from fresh agricultural products such as dragon fruit, mango, and pomelo to processed foods such as fish sauce, pho (Vietnamese noodle), and cashew nuts.

Carrefour France representative Regis Fraudin said that the Vietnamese Goods Week is expected to bring Vietnamese cuisine and goods closer to French consumers

Nhat Thanh Khiem, General Director of T&T Food, said the fact that the Vietnamese Goods Week is expanding in scale and stature proves that Vietnamese products are increasingly known and favoured by French consumers. He said he hopes that in the next few years, the event will be organised in supermarket chains across France.

Within the week, various cultural activities will be held, including art performance and painting exhibitions. Visitors will also have a chance to enjoy Vietnamese dishes. The event is expected to not only promote Vietnamese products but also strengthen cultural connections, and increase the recognition of Vietnamese products and culture among international consumers in general and French customers in particular./.

Standard Chartered lifts forecast for Vietnam’s 2024 GDP growth to 6.8%

Standard Chartered has revised up its forecast for Vietnam’s 2024 GDP growth to 6.8% from the previous 6.0%, reflecting the stronger-than-expected expansion in the third quarter of this year.

In a report released on October 18, the bank’s economists said the country’s economic growth momentum has been relatively strong, with improvement across multiple sectors, including imports and exports, retail sales, real estate, tourism, construction, and manufacturing.

Trade recovery and increased business activities and foreign investment will be the main boosters for 2025 and beyond, they added.

Tim Leelahaphan, Standard Chartered Bank economist for Thailand and Vietnam, said: “While we remain cautious on Vietnam’s economy near-term, we also acknowledge the economy’s ability to perform better than market expectations.

“The government’s push for stronger economic growth may help maintain low interest rates in the near future, and Fed moves will also be key to the State Bank of Vietnam’s monetary policy decisions. We now expect a 50-basis point rate hike next year, rather than in Q4/2024 as previously anticipated.”

Standard Chartered forecasts Fed rate cuts, which should lead to a softer USD bias over the next few quarters, will result in a USD/VND exchange rate at 24,500 by the end of 2024 and 24,300 by mid-2025./.

Commercialising 5G opens opportunity for businesses: Insiders

Telecom giants in Vietnam are taking applications and commercialising the 5G network, expected to generate more opportunities for businesses to accelerate digital transformation, toward developing a predominantly digital economy in the country, according to insiders.

The Ministry of Information and Communications has, as of 2024, granted licenses for frequencies to launch 5G networks to major operators like Viettel and VNPT, with a goal of achieving nationwide coverage by 2030. Viettel, the first network to successfully test commercial 5G technology in 2019, has now expanded testing to 61 provinces and cities nationwide.

The application of 5G technology will bring opportunities to many businesses. Sectors with the potential to accelerate the digitalisation process, supported by Vietnam’s current legal framework, include banking, Fintech companies, e-commerce businesses, and companies that bring goods and services to online platforms.

The Law on Credit Institutions, effective from July, introduces new provisions to accommodate emerging activities aligned with the digital transformation trend, including authorising a testing mechanism for Fintech innovations in banking, online lending, and electronic transactions.

To facilitate the implementation of this testing mechanism, the State Bank of Vietnam is developing a draft on a controlled testing framework in the banking sector, focusing on Fintech companies and solutions applied to banking activities.

To prioritise online transactions, the Government has also issued a decree No.52/2024/ND-CP which outlines regulations for non-cash payments, including additional provisions regarding cryptocurrencies, e-wallets, and prepaid cards applicable to credit institutions.

The commercialisation of 5G plays a crucial role in supporting the digital transformation goals of credit institutions, enabling digital banks to provide online services more swiftly and efficiently, particularly in real-time transactions such as electronic payments and transfers.

Furthermore, 5G also enhances connectivity and integration with advanced technology platforms like AI, big data, and blockchain, making it easier for digital banks to offer intelligent financial services and strengthen transaction security.

In the context of 5G commercialisation, businesses are facing both opportunities and challenges when applying 5G technology in their business activities. Many legal mechanisms need to be improved to further facilitate companies.

Speaking at a recent workshop in Hanoi, President of Ericsson Vietnam Rita Mokbel said for Vietnam, 5G will play a critical role in advancing Industrial Revolution 4.0, attracting foreign investment and driving economic growth. Private 5G networks, in particular, will allow businesses to innovate and reduce costs while providing telecom operators with new revenue opportunities. Overall, 5G will be instrumental in Vietnam’s goal to achieve a digital economy that is expected to contribute 20% of its GDP by 2025.

In the short term, prioritising investment in technological infrastructure, bolstering security measures, and optimising electronic transaction processes are essential, said insiders.

They stressed that as legal mechanisms have become fully established and enforced, businesses should engage closely with regulating bodies to ensure the efficient and secure implementation of 5G in their operation./.

Ample room for Vietnamese goods to win Trans-Pacific Partnership markets

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which has helped generate impressive growth of Vietnam’s exports in the last five years, still has great potential for exploitation, according to experts.

According to the Vietnam Textile and Apparel Association (Vitas), in the first eight months of this year, Vietnam earned 5.46 billion USD from exporting garment and textile products to CPTPP markets, up 4.3% year on year, accounting for 15.88% of the sector’s total exports.

Positive growth was seen in major markets such as Japan, Canada, Australia, Mexico, and New Zealand. Particularly, a respective surge of 26.92 and 26.14% was recorded in the Mexican and New Zealand markets.

Vitas Chairman Vu Duc Giang said that the agreement has not only helped the sector expand export markets but also prompted the textile industry to improve technology and product quality to meet the strict standards of the international market.

Similar to the textile industry, over recent years, the markets of the agreement bloc countries have also made up a large proportion of exports of Vietnam's seafood industry.

Vice General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) Nguyen Hoai Nam said that the markets contributed 2-2.5 billion USD to the sector’s export value of 10 billion USD.

In 2022, seafood export turnover increased more than 20% compared to 2021, of which growth in the bloc increased 30.6%. In 2023 when exports to most markets decreased sharply by more than 20%, the markets dropped by 16.4%. These figures show that the CPTPP is an important set of markets and a great support for the seafood industry with room for development, Nam said.

Statistics from the General Department of Vietnam Customs showed that exports to the bloc member countries in North America rose 56.3% to 13.6 billion USD in 2023 from 8.7 billion USD in 2018. Vietnam's exports to these markets nearly doubled from 6.3 billion USD in 2018 to 11.7 billion USD in 2023, while trade surplus almost tripled from 3.9 billion USD to 11.01 billion USD.

Particularly, impressive growth has been seen in trade between Vietnam and Mexico and Canada since the agreement took effect. Vietnam is Mexico's 10th largest partner, with Vietnam's exports to Mexico seeing a 10-fold increase in the past five years.

Similarly, Vietnam has won 35% of the market share in Canada, one of the 10 potential customers for Vietnamese products thanks to CPTPP.

Increasing market shares for Vietnamese products

Although Vietnamese goods have shown greater presence in those markets, according to experts, their added value has remained low as they are mostly exported in the raw form without due attention to product specification and trademarks.

According to Vice Director of the MoIT’s Multilateral Trade Policy Department Ngo Chung Khanh, there is plenty of room for trade cooperation between Vietnam and the CPTPP countries. The UK's recent accession to the CPTPP and the fact that many other economies seeking to join the pact will create further opportunities for cooperation, Khanh said.

Vietnamese enterprises can consider doing business and investing in production in American countries such as Canada, Mexico, and Peru, he suggested. He pointed to the need for specialised cooperation mechanisms by field, and cooperation mechanism connecting Vietnamese enterprises and North and South American countries.

Experts held that it is necessary to develop a domestic raw material centre and strengthen connections among the businesses to enable them to participate deeply in the global supply chain, especially with member countries.

In order to support businesses in taking advantage of incentives, the MoIT will continue to popularise the CPTPP as well as other free trade agreements, while coordinating with associations to promote Vietnamese brands, seeking solutions to reduce logistic costs, speeding up administrative reform and supporting businesses to connect with international partners./.

Vietnam aims for ASEAN Top 3 with its digital economy

With a high digital economic growth rate of about 20% per year, and the fastest rise in e-commerce in the ASEAN region, Vietnam is moving close to the position of top three biggest countries in the ASEAN region in terms of its digital economy.

Vietnam has set a target of raising the contribution to the country’s GDP to 20% by 2025 and 30% five years later, with the proportion of digital economy in each industry and field reaching at least 10% by 2025 and doubling by 2030.

According to Tran Minh Tuan, Director of the Digital Economy and Digital Society Department under the Ministry of Information and Communications (MIC), in the 2000s, the concept of the digital economy focused only on the information and communications technology (ICT) industry. Now, it continues to spread to all industries and fields.

Tuan cited data from the MIC showing that by 2023, it accounted for about 16.5% of GDP, of which ICT industry made up nearly 60%.

International organisations assessed that Vietnam's digital economic growth rate is high at about 20% per year, three times the GDP growth rate. Particularly, Vietnam leads the ASEAN countries in the growth pace of e-commerce.

Vietnamese people's absorption into digital economic fields is increasing, pushing the country close to the position among the top 3 in the ASEAN region, said Tuan.

Hoang Viet Tien, Deputy Secretary of the Vietnam Digital Communication Association, said that Vietnam's Internet has gone through many stages of development, with digital transformation, especially in the development of AI in the next few years predicted to boom. Tien stressed the need for foundation and solutions to support the development of the infrastructure.

By now, the MIC has licensed three telecommunications service suppliers to launch 5G services. In the coming period, to successfully implement digital transformation and digital infrastructure, providers need to work out user-friendly solutions, Tien said, adding that State management agencies should issue appropriate decrees, circulars, and instructions.

Ericsson Vietnam estimated that 5G will account for about 50% of Vietnam's mobile subscribers by 2029. Currently, more than 25% of the data traffic is transmitted via 5G.

President and CEO of Ericsson Vietnam Rita Mokbel said that with its global experience and leadership in 5G deployment, Ericsson is ready to support its commercialisation in Vietnam. Ericsson is currently working closely with local operators and enterprises to develop use cases tailored to Vietnam's specific needs, she said.

Meanwhile, Eric Yeo, Country Manager for Amazon Web Services Vietnam, said that his firm wants to cooperate with Vietnamese telecommunications operators to provide technology, expertise, and experience in building infrastructure and improving the skills of the workforce, helping telecommunications operators maximise profits from 5G investment.

Nguyen Tuan Huy, head of the Digital Tranformation Department of MobiFone, said that the overal goal of digital transformation is to improve business efficiency, increase labour productivity, and work performance, and to enhance service quality for customers.

Digital transformation is not simply the use of digital technology in socioeconomic activities but also the process of establishing a new, advanced, and modern production method, in which AI, IOT, Big Data, and Cloud are important production tools in a variety of industries and fields, he stated./.

Vietnam Digital Industry and Trade Summit 2024 slated for next month

The Vietnam Digital Industry and Trade Summit 2024 will take place in Hanoi on November 21, aiming to help businesses with digital transformation.

With the theme “Digital transformation drives green and sustainable growth”, the event will feature a plenary session and two workshops focusing on digital transformation and green transition in production and energy, and sustainable e-commerce development trend in the digital era.

In a document sent to its units and the municipal and provincial Departments of Industry and Trade, the Ministry of Industry and Trade (MoIT) asked the Vietnam E-commerce and Digital Economy Agency to coordinate with relevant sides in holding the event.

The ministry said the event will also review digital transformation at enterprises and seek solutions to promote coordination and mobilise resources to help them in this regard.

The MoIT has issued a digital transformation plan for the energy sector, aiming for 90% of administrative procedures to be handled online via the public services portal.

In addition, all documents related to the energy sector will be digitalised.

The focus will also be placed on developing a harmonious information system for the energy industry, including oil and gas, coal, electricity, renewable energy and new energy.

Vietnam has set a target to increase electricity access index to be among the top three in ASEAN by 2025, from the current fourth position in ASEAN and 27th out of 190 countries and territories worldwide./.

Chinese media highlights Vietnam's economic success, burgeoning trade ties

In its recent article, the Chinese Ministry of Commerce's newspaper on international trade has praised Vietnam’s foreign direct investment attraction and economic development over the past time, and highlighted the cooperation potential between the two nations in its recent article.

The article highlighted Vietnam's GDP expansion by 7.4% year-on-year in the third quarter, the highest quarterly growth recorded within two years. The production and processing sector registered a standout growth of 11.41%, the biggest over the past six years. There is an increasing number of multinational corporations choosing Vietnam as a destination to land investment and do business.

In the first nine months of the year, the country lured more than 24.78 billion USD in foreign direct investment, up 11.6% year-on-year. Foreign investors channeled funds into 18 out of 21 economic sectors, with processing and manufacturing leading with nearly 15.64 billion USD, or 63.1% of the total registered FDI, it quoted statistics from the Ministry of Planning and Investment (MPI)’s Foreign Investment Agency.

According to the Chinese commerce ministry, China’s overall outbound direct investment in Vietnam has increased over the recent past. Last year, it funneled 5 billion USD into the neighbouring country, a year-on-year surge of 30%, demonstrating Chinese confidence in the Vietnamese market as well as the close economic-trade ties between the two nations.

Production, the article said, is a key sector that Chinese firms are investing into in Vietnam, helping promote the development of Vietnam’s production industry as well as enhance connectivity of the two countries’ industrial chains.

To date, over 300 out of the more than 3,000 listed manufacturing firms in China have set up their establishments in Vietnam.

Statistics from the MPI showed that Chinese enterprises' investment in Vietnam amounted to 4.5 billion USD in 2023, rising nearly 80% year-on-year. Total registered capital in the nation in the first seven months of this year reached 1.65 billion USD.

China is currently the fourth largest investor in Vietnam. The quality of Chinese investment has improved significantly, with capital shifting towards high-tech fields, electricity, electronics, infrastructure development, renewable energy, and electric vehicles, among others, the article quoted Minister of Planning and Investment Nguyen Chi Dung.

It underscored that together with the robust economic-trade relations, Vietnam and China issued a joint statement during the official visit to Vietnam by Premier Li Qiang on October 12-14. They agreed to promote strategic development connectivity and carry out the cooperation plan that links the “Two Corridors, One Belt” framework and “Belt and Road” Initiative. They also plan to accelerate transport and border infrastructure connectivity, build safe and stable production and supply chains, and expedite the signing of a protocol on Vietnamese exports to China, among others./.

First batches of Vietnam’s fresh coconuts enter China

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

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

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

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

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

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

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

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

VNA/VNN/VNS/VOV