Nhơn Trạch No 2 power project. The amendments underway are expected to remove the bottlenecks and create favourable environment for the development of gas-fired and offshore wind power projects. — VNA/VNS Photo Huy Hùng

The amendments being considered to the Electricity Law should remove bottlenecks and create a favourable environment for the development of gas-fired and offshore wind power projects, experts said at a conference on Wednesday.

The development of green energy projects, such as liquefied natural gas (LNG) and offshore wind power, in line with the eighth national power development plan (PDP8) are stuck, due to the lack of necessary policy corridors, while the existing Electricity Law, considered to be the backbone law for renewable energy development, still has gaps.

Deputy Director General of PetroVietnam Power Corporation, Nguyễn Duy Giang, said at the conference, held by Vietnam Petroleum Association, that the PDP8 has paved the way for the implementation of 15 LNG power projects.

However, to date, only the first two projects are underway, which are implemented by PV Power, while the rest are stagnating.

Taking Nhơn Trạch No 3 and 4 for example, Giang said that it will take around eight years for this project, considered a model for LNG to generate commercial electricity for both units (expected in 2025), of which two thirds of the time so far has been spent on completing procedures.

The 1,500 MW- Quảng Ninh LNG power, the first independent power project (IPP) in Việt Nam with the participation of foreign investors including Tokyo Gas (20 per cent stake), Marubeni (20 per cent) and PV Power (30 per cent), was granted a licence in July 2022. But to date, the project remains at the stage of a feasibility study for consideration and will only be expected to start construction in late 2025 and go operational in 2028-2029.

Investing in a LNG power project is a relatively new model so the existing law has legal gaps, Giang said, adding that amending the law becomes essential to develop a legal framework in line with the international trends of greening and carbon emissions reduction.

He pointed out that the biggest problem to the implementation of imported LNG power project lies in capital arrangement.

He added that most frozen LNG projects face the same problem. They must establish a new legal entity with at least 30 per cent of their own capital, with the remaining of 70 per cent to be borrowed and self-paid without guarantees. If the projects have not had power purchase agreement (PPA) and quantity commitment (QC) contract, banks will not provide lending.

The key to remove obstacle for imported LNG power projects is an appropriate mechanism for the LNG market, in which PPA must include certain quality controls, so that investors can negotiate LNG imports.

Agreeing with Giang, a representative from PetroVietnam said that LNG power projects need long-term contracts for LNG imports with stable quantity, as well as competitive prices.

Offshore wind power projects are also facing difficulties, according to Nguyễn Tuấn from PetroVietnam Technical Services Corporation (PTSC). The wind energy price regulated by the Ministry of Industry and Trade is only about 8.5 cents per kWh, much lower than the price in the UK of 20 cents per kWh, when the energy was first developed and China's Taiwan which priced it at around 14.6-15 cents in 2024.

In fact, during the pilot phase, most countries in the world apply a Feed-in-Tariff mechanism, which is a pricing regulated and supported by the Government to buy back electricity generated from renewable sources, then gradually allowing the price to float following the market-based mechanism.

With a very large offshore wind power investment rate of 1GW costing several billion of US dollars, if there are no appropriate electricity price mechanism or incentives, such as exemption of land use fees and preferential loans, it might be difficult to implement offshore wind power projects following the PDP8.

Under PDP8, the demand for offshore wind power by 2030 is forecast at 6,000 MW and 70,000-90,000 MWW by 2050, very modest compared to the potential estimated at 600 GW by 2030.

Thus, Tuấn said the amended Electricity Law should consider allowing the export of wind power to ensure the investment efficiency.

In addition, simplifying procedures and a coordination mechanism are needed to facilitate the development of offshore wind power projects which are now fall under the management of 13 agencies.

According to Nguyễn Quốc Thập, President of Việt Nam Petroleum Association, the implementation of LNG and offshore wind power projects are struggling, which may mean they fail to ensure the development of electricity sources in both short and long terms following PDP8.

The amendments to the Law should focus on creating favourable conditions for investors to invest in LGN and offshore wind power projects, Thập said.

Expert Ngô Chí Long said that the amended law should raise detailed regulations on tax incentives, financial support and licensing procedures to encourage investment in LGN and offshore wind power projects.

It is also necessary to have an appropriate pricing mechanism to ensure reasonable profits for investors in harmonisation with consumers’ benefits, Long said.

In response, Trịnh Quốc Vũ, Deputy Director of the Electricity Regulatory Authority of Việt Nam under the Ministry of Industry and Trade, said that the ministry is developing a pricing mechanism for LNG power to submit to the Government for consideration after the amended Electricity Law is passed.

In early September, a working group was set up to review and tackle legal roadblocks in the implementation of power projects and headed by Minister of Industry and Trade Ngyễn Hồng Diên. 

Ninh Thuận seeks investments from Đồng Nai in key sectors

The central coastal province of Ninh Thuận seeks to attract investors from Đồng Nai Province in the southeast economic region for its key industry groups, attendees heard at a conference held on October 18.

Speaking at the conference held in Đồng Nai, Trần Quốc Nam, chairman of Ninh Thuận Province’s People's Committee, said the province has a strategic geographical location and favourable natural conditions for regional development links.

With a coastline of more than 105 kilometres, the province has great potential and strengths as well as several highly scenic spots to develop its marine economy, tourism, urban areas, industry, energy and logistics.

Currently, its economy has been facing new development opportunities. The Government has a plan to invest in a number of key national projects, providing jobs and increasing the connections of Ninh Thuận with the provinces in the central coastal region and the southeast economic region.

"All are important driving forces and multi-faceted benefits for the province's socio-economic development, contributing to strongly promoting potential advantages and attracting investment in Ninh Thuận," he said.

It will give priority to developing key sectors and forming a synchronous ecosystem to promote the development of industrial production and processing projects, and the province's key industries, he added.

Lê Kim Hoàng, director of Ninh Thuận Province’s Department of Planning and Investment, said the province’s planning by 2030 identifies priorities for the development of key industry groups.

The key industry groups are energy and renewable energy; high-quality tourism; processing and manufacturing industry; high-tech agriculture; construction and real estate; and two new growth drivers of marine economy and urban economy.

“The planning creates advantages to enhance competitiveness, exploit potential and strengths, and creates ample room for economic growth,” he said.

It also focuses on developing and expanding economic corridors along expressway, coastal routes and the East-West axis, in order to create regional and inter-regional connections.

Nguyễn Thị Hoàng, deputy chairwoman of Đồng Nai Province’s People's Committee, said the conference created an opportunity for Ninh Thuận to introduce its potential, advantages, policies, and investment attractiveness to potential investors.

This is an opportunity to develop their own businesses, contributing to promoting the sustainable cooperation relationship between the two provinces, she said.

“Each province and city has potential and internal strengths to boost socio-economic development and attract investment,” she said.

Đồng Nai has strengths in industrial development, while Ninh Thuận has strengths in cultural and sea tourism development.

In the process of economic development, Đồng Nai Province is always determined to develop quickly and sustainably, which requires enhancing connections with other provinces and enterprises, she said.

“Therefore, Đồng Nai Province-based enterprises need to expand investment attraction to other localities to ensure their stable and effective operation,” she said.

At the conference, many Vietnamese and foreign enterprises based in Đồng Nai expressed their interest in many fields that Ninh Thuận has called for investment, and highly appreciated Ninh Thuận’s development strategy in the coming time.

Representatives of Đồng Nai’s business communities said they will soon organise a survey to learn more about investment opportunities that Ninh Thuân is offering.

Ninh Thuận has three established industrial parks, with a total area of 855 hectares. In addition, the investment policy of the planned Cà Ná Industrial Park on an area of 827ha has been submitted to the Prime Minister for approval.

The new industrial parks are 21 per cent full, while six industrial clusters, with a large land fund, have rental prices much lower than the average price of the provinces in the region (about 30 per cent).

Vĩnh Hy Bay, which is surrounded by Núi Chúa National Park, recognised by UNESCO as a global biosphere reserve, has been ranked as a national-level scenic spot.

Bình Sơn - Ninh Chữ Tourist Area is planned to be a key National Tourist Site.

The art of pottery making of the Chăm people in the province was named an intangible cultural heritage by UNESCO. 

Hưng Yên creates open environment to attract investment

With an open investment environment, modern infrastructure and abundant labour resources, Hưng Yên has successfully marketed itself as an attractive destination for investors.

To date, the province has 588 foreign-invested projects, with a total registered capital of over US$7.6 billion.

Chairman of the provincial people's committee Trần Quốc Văn said that one of the most important factors needed to build investment in the province is a focus on promoting administrative reform, creating an open environment for businesses.

Starting earlier this year, the province has been implementing key tasks and solutions to improve the business environment and enhance provincial competitiveness, following its Plan No. 31/KH-UBND.

The right direction in building a good business environment has made Hưng Yên one of the most preferred destinations for foreign investors.

The province has attracted new and adjusted capital reaching $1.7 billion in the first nine months of this year, its highest result ever.

This has demonstrated the value of leaders' efforts in attracting investment to their locality.

Japan currently has the most projects and investment capital in Hưng Yên, with 147 projects and registered capital of $3.6 billion, accounting for 54 per cent of the total registered capital in the province.

Ranking at second place is China with 70 projects and registered capital of $957 million, accounting for 15 per cent of the total registered capital, followed by South Korea with 63 projects worth $650 million, accounting for 10 per cent of total registered capital.

In the provincial plan for the 2021-2030 period approved by the Prime Minister, Hưng Yên's main goal is to develop rapidly and sustainably by the end of the decade, becoming a modern industrial province with an economy and development level that puts it among the leading groups in the country. The province also aims to become a smart, green urban area, with a good living environment and a developed socio-economic infrastructure system.

Currently, 35 industrial parks with a combined area of ​​over 12,000 hectares are planned for development in the province.

The province plans to develop 30 new industrial parks with a total area of ​​9,100 hectares by 2030, as well as expand four industrial parks with a total area of ​​over 400 hectares.

Hưng Yên also plans to develop five new industrial parks with a total area of ​​nearly 2,500 hectares after 2030. 

Unleashing Vietnam - EU e-commerce potential

While the European Union presents a vast cross-border e-commerce market, the participation of Vietnamese businesses exporting to Europe through international trading platforms remains significantly lower than in other markets.

E-commerce is reshaping global trade dynamics, especially post-COVID-19, according to a report released at a seminar called 'E-commerce Trends in the World and Implications for EU-Vietnam Trade' organised by the Vietnam Institute for Development Strategies and the Konrad-Adenauer-Stiftung Institute Vietnam (KAS) on Thursday.

While the global trade growth rate has been declining, averaging only 2-5 per cent annually in the past few years and even dropping by 1.3 per cent in 2023, e-commerce has experienced a rapid surge, with an average growth rate of around 20 per cent following the pandemic, according to the report.

Online retail sales now constitute 20 per cent of total global retail sales - up from 17 per cent in 2019 - and are projected to reach 24.5 per cent by 2025, with cross-border transactions contributing significantly to global e-commerce revenue (22 per cent).

The EU stands as the world's third-largest e-commerce market, according to the report. The percentage of internet users in the EU engaging in online shopping has risen from 66 per cent in 2018 to 76 per cent in 2023.

After three years of the EU - Việt Nam Free Trade Agreement (EVFTA), trade between Việt Nam and the EU has seen notable progress. Export growth to the EU averaged 8.1 per cent from 2021 to 2023, while Vietnamese businesses are successfully venturing into e-commerce with the EU.

"The EU and Việt Nam have made significant strides in promoting bilateral trade through the EVFTA. E-commerce serves as a powerful tool to leverage this agreement, fostering increased trade and mutual benefits," said Florian Feyerabend, KAS Resident Representative.

“We anticipate that new trade trends, particularly e-commerce, will further strengthen and accelerate trade relations in the near future,” he added.

The region offers diverse online platforms benefitting Vietnamese businesses, especially SMEs. Major EU e-commerce markets like Germany, France and Italy are witnessing a surge in cross-border online trade.

Yet, at present, the participation of businesses exporting to Europe via international trading platforms lags far behind other markets.

For instance, out of over 10,000 Vietnamese businesses using e-commerce platforms like Amazon for exports, a mere 10 per cent target the European market.

The main hurdle stems from the EU's high demands regarding strict quality standards, environmental considerations and a more intricate purchasing culture, along with stringent legal barriers. Additionally, Vietnam's support policies for businesses remain ambiguous, the report showed.

To expand the presence of Vietnamese businesses in the EU e-commerce market, the report suggests the Government implement tailored incentives for cross-border e-commerce businesses on trading platforms while enhancing programmes to help businesses take advantage of the EVFTA through e-commerce, fostering connections between Vietnamese and European enterprises.

It is also necessary to establish comprehensive national standards for origin tracing systems, improve legal frameworks for source verification and boost cross-border trade activities, logistics operations and investments in cross-border logistics development.

Sita Zimpel, project director of ASEAN SME II at GIZ, said that Vietnamese enterprises looking to tap into the fast growing e-commerce market need to observe strict compliance requirements, particularly the emerging imperative of ethical business conduct.

“Transparency and traceability are key obligations for sellers, while platform responsibility, which includes countering illegal products also from abroad, is equally crucial,” she added. 

Construction ministry raises solutions to stabilise housing prices

Amending tax policies related to the real estate market will be among solutions to prevent speculative trading in an effort to stabilise land and housing prices, the Ministry of Construction said at a press conference on Thursday.

The ministry said that speculation is a major cause for the recent skyrocketing price increases in housing in major cities, specifically Hà Nội.

Statistics showed that price of apartments in major cities, including Hà Nội and HCM City, increased by 5-6.5 per cent in the second quarter and 25 per cent annually. Prices of villas and townhouses are also on upward trend.

Deputy Minister of Construction Nguyễn Việt Hùng said that it is necessary to have synchronous fiscal, land and credit policies to promote the sustainable development of the real estate market.

Deputy Director of the Housing and Real Estate Management Department Vương Duy Dũng, said that specifically related to Hà Nội, there are a number of reasons for the increases in housing prices, including rising input costs.

Supply improved in the third quarter but remains limited, coupled with speculation which is distorting the market, pushing prices ever upward. There is also psychology involved with investors pouring money into the real estate market, while other investment channels are considered unfavourable.

The ministry will increase the enforcement of the laws on land, housing and real estate business to move difficulties for the real estate market.

In addition, efforts will be made to tackle land auctioning, with tightening of the management on the operation of property developers and trading platforms.

Tax policies will be revised for amendments to prevent speculation, he said, urging careful assessment of proposed new tax policies, including imposing taxes on people owning more than one property.

Gov’t proposes special mechanism for North-South high-speed rail project

The government has submitted a proposal to the National Assembly for a special mechanism to implement the North-South high-speed rail project, aimed at meeting the increasing transportation demand and improving the national transport infrastructure.

The proposal was signed by Minister of Transport Nguyen Van Thang, on behalf of the Prime Minister.

According to the proposal, the North-South high-speed rail project will begin at Ngoc Hoi station in Hanoi and end at Thu Thiem station in Ho Chi Minh City, with a total length of approximately 1,541 km. It will be financed through public investment at a total cost of approximately US$67 billion.

The project passes through 20 provinces and cities, namely Hanoi, Ha Nam, Nam Dinh, Ninh Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan, Dong Nai, and Ho Chi Minh City.

A new double-track railway will be constructed with a gauge of 1,435 mm, designed for a speed of 350 km/h. It will transport passengers and meet dual-use requirements for national defense and security, and it will be capable of transporting goods when necessary.

To facilitate the construction of the project over the next 10 years, the government has proposed that the National Assembly apply 19 special mechanisms and policies for the project.

Notably, regarding technology, the government recommended that the National Assembly allow the application of a list of products of the railway industry, supporting industries, and other industries related to the project, which would be assigned to or contracted out to Vietnamese organizations and enterprises.

Priority will be given to selecting general contractors and subcontractors capable of transferring new, modern, and complex technologies that are not yet available domestically.

For products of the railway industry, supporting industries, and other industries that can be produced domestically, the project owner, general contractor, and subcontractors must prioritize ordering from Vietnamese enterprises.

Regarding the development of land resources along the route, it is proposed that provincial People’s Committees be authorized to make local adjustments to planning in order to optimize the added value of the land.

In particular, the government also proposed to be granted the authority to adjust investment policies and project modifications to streamline procedures and enhance decentralization.

It is anticipated that the National Assembly will consider and decide on the investment policy for this project in its year-end session which is scheduled to begin its month-long sitting in Hanoi on October 21.

Vietnam attends int’l food trade show SIAL Paris 2024 in Paris

Nearly 100 Vietnamese exhibitors are promoting Vietnamese agricultural products at SIAL Paris 2024, an international food trade show underway in Paris, France, from October 19 to 23.

Vietnamese Ambassador to France Dinh Toan Thang said that the increasing number of Vietnamese exhibitors at the SIAL Paris fair in recent years has built a national brand not only in France and Europe, but also in other markets.

Vietnamese enterprises have invested more systematically and thoroughly when attending the fair to meet the increasing needs of consumers, the ambassador said.

The enterprises not only bring to the fair high-quality, healthy products, but also those that are able to to meet foreign consumers’ tastes.

Thang said that the presence of Vietnamese enterprises at the international fair also shows their ability to go global and make good use of the favourable conditions brought by the free trade agreement that Vietnam has signed with the EU and other trade partners.

Audrey Ashworth, Event Director of SIAL Paris 2024, with the theme of “Own the Change”, the 2024 edition not only celebrates its 60th anniversary, but also serves as an opportunity for stakeholders in the food industry to find ways to address current challenges such as climate change, supply chain disruptions and technological advancements, and brings together experts from around the world to exchange ideas and innovations focusing on business, discovery and inspiration.

During the fair, exhibitors and visitors will explore and experience solutions in the areas of corporate social responsibility (CSR), AI and deep technology, supply chain resilience and Africa’s emerging role in the food market, she said.

Held every two years since 1964, Sial Paris is one of the world’s largest and most prestigious trade fairs in food and beverage. This year, the event attracts about 7,500 exhibitors and about 285,000 visitors from over 200 countries all around the world.

Top leader requests realizing Party resolution to drive Vietnam forward in new era

Party General Secretary and President To Lam on October 20 emphasized the need to effectively implement the resolution adopted at the recent 10th plenum of the Party Central Committee, in order to find the shortest path for the country to enter a new era - an era of national rejuvenation.

Addressing a national conference on the implementation of the resolution in Hanoi, To Lam noted that Vietnam has recorded great achievements after nearly 80 years of nation-building, and with the strength and resources accumulated and with new opportunities and circumstances, it has gathered necessary conditions to enter a new era - an era of national rejuvenation, development, and prosperity.

The successful implementation of the resolution, he said, is to realize the aspirations of President Ho Chi Minh and the hopes of the entire nation, that is to build a prosperous and strong Vietnam, a democratic, equitable, and civilized society that stands shoulder to shoulder with the great powers of the world.

To achieve this goal, he said the 10th plenum of the Party Central Committee reached a consensus on political determination, strategic breakthroughs, directions, and solutions with new thinking and understanding. It also agreed on key policies for various important tasks to accelerate progress and successfully implement the resolution of the 13th National Party Congress, while best preparing for the grassroots-level Party Congresses in the lead up to the 14th National Party Congress.

To grasp and implement the resolution, the top leader urged for a common consensus throughout the Party regarding the political determination to successfully implement the resolution of the 13th National Party Congress. He requested making the utmost effort, concentrating all measures and resources to achieve the set goals and targets with the highest quality.

He emphasized the necessity to promptly implement several strategic breakthroughs that have been agreed upon by the Party Central Committee and included in the documents for the 14th National Party Congress.

They include making a breakthrough in institutional development to remove bottlenecks and barriers; initiating and implementing a digital transformation revolution; and completing the goals for developing socio-economic infrastructure, especially strategic infrastructure for transportation, energy, and digitalization.

Others are reviewing and accelerating the implementation of national target programs and key projects with significant spillover effects; and promptly undertaking tasks to implement the North-South high-speed rail project as soon as possible and in the most effective manner.

With regard to the preparations for the grassroots-level Party Congresses leading up to the 14th National Party Congress, the top leader held that it’s important to focus on drafting and ensuring the quality of documents and personnel work.

This process requires Party committees and organizations to incorporate and concretize the strategic breakthroughs, directions, and solutions agreed upon by the 10th plenum of the Party Central Committee, he said.

He expressed his belief that by upholding a strong spirit and high determination, and with consistency in thought and action, “we will mobilize all resources and harness the utmost potential to continue building new foundations for the country’s breakthrough development in the coming years”.

Vietnam attends int’l food trade show SIAL Paris 2024 in Paris

Nearly 100 Vietnamese exhibitors are promoting Vietnamese agricultural products at SIAL Paris 2024, an international food trade show underway in Paris, France from October 19 to 23.

Vietnamese Ambassador to France Dinh Toan Thang said that the increasing number of Vietnamese exhibitors at the SIAL Paris fair in recent years has built a national brand not only in France and Europe, but also in other markets.

Vietnamese enterprises have invested more systematically and thoroughly when attending the fair to meet the increasing needs of consumers, the ambassador said.

The enterprises not only bring to the fair high-quality, healthy products, but also those that are able to to meet foreign consumers’ tastes.

Thang said that the presence of Vietnamese enterprises at the international fair also shows their ability to go global and make good use of the favourable conditions brought by the free trade agreement that Vietnam has signed with the EU and other trade partners.

Audrey Ashworth, Event Director of SIAL Paris 2024, with the theme of “Own the Change”, the 2024 edition not only celebrates its 60th anniversary, but also serves as an opportunity for stakeholders in food industry to find ways to address current challenges such as climate change, supply chain disruptions and technological advancements, and brings together experts from around the world to exchange ideas and innovations focusing on business, discovery and inspiration.

During the fair, exhibitors and visitors will explore and experience solutions in the areas of corporate social responsibility (CSR), AI and deep technology, supply chain resilience and Africa’s emerging role in the food market, she said.

Held every two years since 1964, Sial Paris is one of the world’s largest and most prestigious trade fairs in food and beverage. This year, the event attracts about 7,500 exhibitors and about 285,000 visitors from over 200 countries all around the world./.

Hà Nội’s agriculture in the digital era

Many cooperatives and enterprises in Hà Nội have adopted digital technology on a large scale, producing high-quality agricultural products that ensure food safety and can adapt to climate change.

Advanced technologies such as blockchain, artificial intelligence, data management, IoT, big data and drones are being applied in the production, processing and distribution of agricultural products.

Thanks to smart devices, many farmers can manage their farms conveniently and efficiently. They can water, fertilise and monitor the growth of their crops remotely, simply using a smartphone.

Director of Quảng Bị Agricultural Cooperative in Chương Mỹ District, Nguyễn Việt Hùng, shared that for the spring 2024 crop, the cooperative used drones to sow seeds over 400 hectares, reducing costs and increasing productivity. The value of their crops is now two or three times higher compared to traditional methods.

Director of the Chử Tâm Clean Vegetable Cooperative in Gia Lâm District, Trần Văn Tuấn, said that the cooperative produces various types of vegetable and fruits, such as cabbage, tomatoes, cucumbers, beans and carrots. By applying technologies like sprinkler and drip irrigation and cultivation in greenhouses and net houses, the cooperative supplies 200-300kg of clean vegetables daily, generating revenue of VNĐ50-70 million (US$1,980-2,780) per month.

Director of Hà Nội Department of Quality, Processing and Market Development, Nguyễn Thị Thu Hằng, emphasised that the digital era has empowered farmers to automate production processes, monitor supply chains and ensure transparency, safety and hygiene.

This has increased productivity and improved the competitiveness of Vietnamese agricultural products in the international market. Applying digital technology has raised economic efficiency by 10-15 per cent compared to traditional farming methods, she said.

Director of the Hà Nội Agricultural Promotion Centre, Vũ Thị Hương, emphasised that the application of digital technology is a key focus that the centre is collaborating on with local authorities to support farmers. Through training sessions, cooperatives and farmers are guided on how to build models that apply digital technology in production, implement smart monitoring systems and promote and sell products on digital platforms.

During these sessions, the centre also addresses any challenges that farmers encounter in the process, particularly helping them navigate e-commerce platforms and equipping them with skills to boost product marketing and expand their market. As a result, an increasing number of models are integrating mechanisation and digital technology into production, transforming the farming practices of Hà Nội’s farmers.

Data from Hà Nội's Department of Agriculture and Rural Development show that the city has developed 406 pioneering high-tech agricultural models, with 262 innovations in crop production, 119 livestock enterprises and 25 aquaculture projects, primarily located in districts such as Hoài Đức, Mê Linh, Gia Lâm, Thường Tín, Đông Anh and Thanh Oai.

Director of Hà Nội’s Department of Agriculture and Rural Development, Nguyễn Xuân Đại, said that the agricultural sector is drafting a high-tech agricultural development plan for Hà Nội by 2030. This strategy aims to revolutionise seed production, farming methods and the processing of agricultural products, paving the way for a modern and sustainable agricultural sector in the capital.

By 2030, Hà Nội aims to master key high-tech innovations, manage production through integrated value chains and promote high-tech agricultural models. The plan includes establishing around 30 high-tech agricultural cooperatives and nurturing at least 40 enterprises in this dynamic field.

Additionally, there is a goal to build 250 high-tech agricultural cooperative models, all aligned with sustainable development and value enhancement.

Đại highlighted that the products from Hà Nội’s high-tech agricultural enterprises must not only meet strict safety and environmental standards but also achieve international certification. This commitment will enhance product value and strengthen the competitiveness of the city’s agricultural products.

Market shows lack of consensus near VN-Index resistance at 1,300 points

Last week, the stock market in Việt Nam saw significant volatility, accompanied by continued pressure from foreign investor selling.

By the end of last week's final trading session, the VN-Index had declined by 0.23 per cent to 1,285.46 points, while the HNX-Index dropped by 0.93 per cent to 229.21 points. Market breadth was tilted towards sellers, with most stocks falling across both the HoSE and HNX.

Foreign investors remained net sellers, with total net sales amounting to more than VNĐ2.078 trillion on the HoSE, primarily targeting stocks like FPT (VNĐ365.77 billion), HDB (VNĐ220.25 billion) and MSB (VNĐ167.43 billion).

Phan Tấn Nhật, head of analysis at the Sài Gòn-Hà Nội Securities (SHS), noted that the State Capital Management Committee recently published financial results for 19 State-owned corporations, showing that parent company revenues reached VNĐ971.593 trillion by the end of September, fulfilling 83 per cent of the annual plan and up 115 per cent year-on-year.

The banking sector stood out during the week with growth in stocks such as BID, VCB, STB, VIB and MBB. Additionally, the real estate sector also saw some strong performers, including VHM, QCG and DXG. Furthermore, the seafood sector showed positive momentum with stocks like VHC, ANV, FMC and MPC.

After a strong recovery around 1,265 points, the VN-Index retreated to a narrow range amid selling pressure near the strong resistance at 1,300 points. However, buying momentum emerged around the 1,275-point support level for the VN-Index.

Nhật forecasts that in the short term, the VN-Index may maintain an upward trend above the 1,280-point support zone (the 20-day moving average).

However, the index is approaching the final stage of a narrow channel, below the strong 1,300-point resistance (stretching back from early 2024) and above the upward trendline connecting the lowest levels from August and September.

He predicts that in the coming two weeks, the VN-Index may break out of its current consolidation. In an optimistic scenario, the index could potentially retest the 1,300-point resistance.

Nhật warns that this is a significant resistance level, corresponding to peaks from June to August 2022 as well as the current year.

For the medium term, Nhật is more optimistic, suggesting that the VN-Index could continue its growth above the 1,250-point support level, aiming for 1,300 and possibly extending to 1,320 points. He emphasised that these strong resistance levels can only be breached with solid macro-economic support and exceptional corporate earnings growth. Additionally, geopolitical uncertainties, such as the Russia-Ukraine war and Middle Eastern tensions, would need to ease.

Analysts from the Vietcombank Securities (VCBS) highlighted international developments last week, including the European Central Bank’s (ECB) interest rate cut on October 17 – its third reduction this year – lowering the base rate to 3.25 per cent amid weakening economic growth and inflation in the Eurozone.

VCBS agreed that the market remains constrained due to a lack of consensus and the strength of the 1,300-point resistance. Volatility has partly shaken investor sentiment, while money flow has lacked broad-based support.

They advised investors to closely monitor market movements and use short-term price swings as opportunities for quick trades, particularly focusing on stocks in sectors such as banking and securities that continue to attract attention. 

New growth opportunities from zero-đồng bank transfers

This significant restructuring of credit institutions opens up numerous growth opportunities for both the receiving and transferred banks.

Restoring operations for zero-đồng banks may be seen as a challenge but also an opportunity to drive new business growth.

The Construction Commercial Bank (CB) has officially transitioned to the Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank), while the Ocean Commercial Bank (OceanBank) has been transferred to the Military Joint Stock Commercial Bank (MB).

This significant restructuring of credit institutions opens up numerous growth opportunities for both the receiving and transferred banks.

Nguyễn Thanh Tùng, chairman of the Board of Directors of Vietcombank, said that the forced transfer of a struggling credit institution is unprecedented and fraught with challenges. However, alongside the responsibility of revitalising CB’s operations, Vietcombank sees this as an opportunity to foster new business initiatives.

“After the transfer to Vietcombank, all rights, obligations, and legitimate interests of CB’s customers will be fully protected,” Tùng added.

This point was further underscored by Nguyễn Thị Hồng, Governor of the State Bank of Việt Nam.

She said that following the mandatory transfer, CB and OceanBank will operate as one-member limited liability commercial banks, with 100 per cent of their charter capital owned by Vietcombank and MB.

Under the ownership of Vietcombank and MB, all legitimate rights of depositors, along with the rights and obligations of customers at CB and OceanBank, will continue to be safeguarded in accordance with legal agreements and provisions.

The compulsory transfer of struggling credit institutions is a crucial step in restructuring the banking system. This measure is closely tied to addressing bad debts, ensuring macro-economic stability, and upholding national financial security, which is of paramount concern to the Government.

There is a strong guidance from the Government and Prime Minister Phạm Minh Chính on this matter. The central bank has actively collaborated with relevant ministries and agencies to develop a plan for these mandatory transfers and submit it for approval in line with legal regulations.

In fact, preparations for the compulsory transfer of weak banks have been underway for some time. The receiving banks have been actively engaged in supporting the zero-đồng banks during this period.

At the 2024 General Meeting of Shareholders for Vietcombank, Deputy General Director Phùng Nguyễn Hải Yến reported that Vietcombank has provided technical assistance to CB since 2015 and has lent CB over VNĐ16.7 trillion (US$664 million) in recent years. Due to regulations, this debt was classified in group 5. However, in the first quarter of 2024, following a reversal, the outstanding balance decreased to VNĐ1 trillion.

Đỗ Việt Hùng, a board member of Vietcombank, highlighted that the bank would be granted a higher credit growth limit upon accepting a weak institution, as stipulated by the 2024 Law on Credit Institutions.

Additionally, receiving banks will have the authority to determine the future direction of the transferred organisation, including the option to sell it to a suitable foreign partner or to implement reform plans, such as transitioning to a digital bank.

Similarly, at MB's General Meeting of Shareholders held in early 2024, Chairman Lưu Trung Thái expressed confidence, stating: "If the plan to accept a zero-đồng bank is approved, our growth rate will increase."

The Chairman reaffirmed MB's readiness to undertake the restructuring of a weak bank, pending Government approval, with expectations to complete the transfer process by 2024 or 2025.

Regarding the rights of banks receiving compulsory transfers, Nguyễn Đức Long, deputy chief inspector and banking supervisor at the State Bank of Việt Nam, noted that these banks will receive support in accordance with the Law on Credit Institutions and will adhere to current legal regulations.

At the announcement ceremony for the compulsory transfer of two banks on October 17, Deputy Prime Minister Hồ Đức Phớc asked the receiving and transferring banks to properly implement the approved project, urging them to allocate maximum resources to achieve the project's objectives.

Looking ahead, Thái, chairman of the Board of Directors of MB, said that the bank will prioritise resources – such as business development, capital, technology, and human resources – to support the integration of new members into the group.

This strategy aims to enhance OceanBank’s business activities, promote sustainable development, and bolster its financial and technological capabilities, ultimately contributing to the overall growth of the economy.

MB’s leadership expressed hope that in the coming months, the Government, the Prime Minister, and relevant ministries will provide support and refine policy mechanisms to ensure the successful execution of the compulsory transfer plan.

Similarly, recognising the acceptance and implementation of the compulsory transfer plan as a significant political task filled with challenges, Vietcombank Chairman Tùng committed to doing everything possible to execute the Government and State Bank of Việt Nam's policies for addressing weak credit institutions. This effort aims to stabilise financial and monetary markets while boosting public and investor confidence in the banking system.

“To fulfill this crucial political task, the entire Vietcombank system must take on great responsibility to transform CB from a weak bank under special control into a fully functioning commercial bank that contributes to the broader economy,” stated he added.

Beyond Vietcombank and MB, other commercial banks, such as Việt Nam Prosperity Joint Stock Commercial Bank (VPBank) and HCM Development Joint Stock Commercial Bank (HDBank), have also expressed interest in participating in the restructuring of weak banks.

Ngô Chí Dũng, chairman of the Board of Directors of VPBank, said that with the involvement of their Japanese partner, SMBC, VPBank has a robust capital base and various advantages for engaging in the restructuring of weak credit institutions. VPBank's strategy emphasises growth, and the interest from foreign investors remains strong. However, current regulations limit foreign ownership to 30 per cent. Participating in the restructuring would provide an opportunity to expand this limit, thereby increasing VPBank’s capital base.

Since 2011, the restructuring of commercial banks has required significant resources, particularly without relying on the State budget. Successful self-restructuring examples include the merger of Sài Gòn-Hà Nội Joint Stock Commercial Bank (SHB) with Hà Nội Housing Joint Stock Commercial Bank (Habubank), and HCM City Development Joint Stock Commercial Bank (HDBank) merging with Đại Á Joint Stock Commercial Bank (DaiABank). Both banks have shown steady growth following their mergers.

During the regular Government meeting on October 7, Governor Hồng indicated that the central bank is directing credit institutions to review their financial situations and prepare documentation for a transfer ceremony for the two zero-đồng banks, following a prolonged period of difficulty. The SBV is also expediting the assessment of the remaining two banks to report to the Prime Minister.

The four banks subject to restructuring and special control are Ocean Joint Stock Commercial Bank (OceanBank), Global Petroleum Joint Stock Commercial Bank (GPBank), Construction Joint Stock Commercial Bank (CBBank), and Đông Á Joint Stock Commercial Bank (DongA Bank).

Additionally, Sài Gòn Joint Stock Commercial Bank (SCB) has been under special control since October 2022. The SBV is conducting a comprehensive assessment of SCB's current situation to propose a restructuring plan for submission to the relevant authorities.

Locked 2G subscribers have accounts reserved

As of October 16, the Department of Telecommunications, under the Ministry of Information and Communications, reported that approximately 234,000 subscribers still using 2G-only services had not yet transitioned to the 4G network.

While these subscribers' accounts have been officially locked for two-way calling and messaging by Vietnamese telecommunications networks, they remain reserved and continue to receive assistance for transitioning to 4G.

According to the department's statistics, as of January 2024, network operators had around 18.2 million 2G-only subscribers. Under the strong direction of the Ministry of Information and Communications, telecommunications providers have expedited the process of phasing out 2G services.

In addition to actively promoting the conversion from 2G to 4G to align with technological advancements, improve customer experience, and optimise Internet resource usage, network operators are offering support to 2G device users. This includes providing devices and encouraging the adoption of attractive 4G packages and data plans.

As a result, the number of customers switching from 2G to 4G has surged in recent weeks. As of the morning of October 15, over 400,000 active 2G-only subscribers remained.

However, by the official shutdown of 2G services at 0:00 on October 16, 2024, this number had dropped to about 234,000, representing roughly 12.8 per cent of the initial total at the beginning of 2024.

A representative from VinaPhone stated that all 2G subscribers will retain their reserved accounts when the 2G signal is discontinued. VinaPhone will continue to offer free devices and support for customers, as well as home visits to assist with SIM exchanges and 4G device usage instructions. They will also provide updates on preferential policies during the initial transition period from 2G to 4G.

Similarly, a representative from Viettel noted that, according to company policy, accounts will be locked and numbers returned to the pool if customers do not use telecommunications services for two months. However, Viettel plans to implement a special policy to extend the time before numbers are reclaimed for remaining 2G subscribers.

Nguyễn Phong Nhã, deputy director of the Telecommunications Department, mentioned that network operators have established a joint database of 2G subscribers who have been unable to connect since October 16. After this date, telecommunications companies are responsible for maintaining the phone numbers, service packages and policies for these legacy subscribers.

Users can still contact their service providers for full instructions on the conversion process. Network operators prioritise user interests to ensure uninterrupted communication.

To best protect consumer interests, the Telecommunications Department is facilitating policies and solutions for continuous service provision and consumer protection.

Additionally, the Telecommunications Department has suggested that network operators consider purchasing old 2G devices as a strategy to manage electronic waste responsibly, preventing improper disposal or misuse of outdated terminals. 

Khánh Hòa expands high-tech marine farming

The south-central province of Khánh Hòa will set aside VNĐ545 billion (about US$22 million) to expand high-tech marine farming from now to 2029, following a successful pilot model in Cam Ranh City. 

The province selected ten eligible farming households to participate in the pilot, providing them with 16 movable high-density polyethylene (HDPE) floating cages to raise marine fish and lobsters, director of the provincial Department of Agriculture and Rural Development Nguyễn Duy Quang said. 

After a year in operation, the floating cages recorded outstanding profits compared to traditional farming methods. Specifically, cobia farming reached an average profit margin of 172 per cent, lobster farming 112 per cent and grouper farming 131 per cent, Quang said. 

Under the project of 'Piloting high-tech marine farming', worth VNĐ1 trillion, the province will focus on developing high-tech farming across an area of three to six nautical miles off the shore in Vạn Ninh District, Ninh Hòa Town and Nha Trang Bay.

In the waters off Vạn Ninh District, the province plans to establish high-tech farming areas in the south of Đại Lãnh, the south of Mũi Đôi, the southwest of Lạch Cửa Bé, the northwest of Lạch Cửa Bé, the south of Hòn Me, Vũng Ké, Mũi Cổ Cò, Cùm Meo, the north of Cùm Meo and Rạn Trào.

In Ninh Hòa Town, the province will develop high-tech farming areas in the southwest of Hòn Chà Là, Bãi Giông, Hòn Thị and southwest of Hòn Lăng - Hòn Giữa.

In Nha Trang Bay, the farming will be done on an area of 13 hectares and to a depth of eight to 15 metres, with blue and cotton lobsters, cobia, seabass and pomfret being raised.

Several technologies will be used, including the movable HDPE floating cages, such as automatic feeding and automatic monitoring of the cages and solar energy.

The target is to improve productivity and value of the aquaculture industry, raising marine farmers and others’ incomes through creating jobs, improving socio-economic conditions, exporting high-quality fisheries products, ensuring food safety and generally meeting market demand.

The province aims to protect the marine environment through sustainable development, gradually forming a marine farming area three to six miles from shore, reducing near-shore farming and minimising conflicts over coastal space.

Khánh Hòa will focus on controlling the quality of varieties and providing farmers with financial support to encourage them to adopt high-tech marine farming, chairman of the provincial People's Committee Nguyễn Tấn Tuân said. 

In addition, the province will provide aquaculture planning and draw up policies to facilitate the participation of farmers in the project, Tuân said, adding that resolutely handling cases of aquaculture farming that do not comply with the planning would also be included. 

Khánh Hòa currently has over 97,000 aquaculture cages, with an annual output of around 18,000 tonnes. 

Textile, footwear exporters have full orders for 2024

In contrast to a lack of export orders at this time last year, textile and footwear enterprises have so far received full orders until the end of this year – and some enterprises even have orders for the first quarter of next year.

Bạch Hồng Long, deputy general director of the No. 10 Garment Corporation, said his corporation is urgently completing orders for 2024. The corporation also has full orders until the end of February 2025.

Currently, the corporation is negotiating new orders through the first quarter of 2025, and about 70 per cent of orders for the first quarter of 2025 have been finalised. Due in part to this positive outlook, the corporation's revenue in 2024 is expected to increase by 10-20 per cent compared to last year.

Long also forecast that textile orders in Việt Nam will increase sharply in 2025. However, he noted, the increase is not due to rising demand in global markets, but due to a shift from one country to another.

Similarly, Dony Garment Company Limited said that Dony’s orders are fully booked until the end of 2024 and it is negotiating new orders through March 2025.

Phạm Văn Việt, general director of the Việt Thắng Jean Company, said his company received orders transferred from other countries, especially from Bangladesh, with cheap prices. However, high-quality orders exported to European markets did not increase because the market has not recovered well.

Explaining the increase in orders, Trương Văn Cẩm, deputy chairman of the Vietnam Textile and Apparel Association, said the increase in orders was mainly due to a shift from other countries to Việt Nam, not due to increasing market demand.

According to Cẩm, textiles and garments are among the key industrial production sectors that have many advantages in export activities. He explained after the US Federal Reserve (Fed) lowered interest rates by 0.5 percentge points in early September and inflation in the US and EU decreased, consumption was stimulated in the two major markets for Việt Nam's textile and garment exports. He said he expects orders to further improve in the near future.

Natural disasters, political instability and policy inadequacies in some garment exporting countries continue to result in opportunities for Vietnamese textile and garment enterprises to gain orders that have shifted from those countries.

Seasonal factors, including festivals, and companies' discount and consumer stimulus policies will also bring a more bustling year-end shopping season.

In addition, Cẩm said, freight prices continue to decrease, helping garment exporters save costs.

According to Cẩm, though the number of orders will rise when US consumer demand increases during the holiday shopping season, the export price will not go up. He forecast that demand and price will only really improve starting in 2025.

According to the Vietnam Textile and Apparel Association (VITAS), the total export turnover of the Vietnamese textile and garment industry in the first nine months of 2024 exceeded US$32.5 billion, up 9.2 per cent over the same period last year. The industry’s export target of $44 billion in 2024 is very feasible because the end of the year is a peak time for orders and production during Christmas and Lunar New Year.

The same trend is also seen in the footwear industry. Exports for the industry in the past nine months are estimated at $20 billion. If the current recovery rate of 10 per cent is maintained, the footwear industry's exports are expected to reach about $27 billion in 2024.

Phan Thị Thanh Xuân, deputy chairman and general secretary of the Vietnam Leather, Footwear and Handbag Association, said that orders are currently recovering. Many footwear enterprises have orders through the end of 2024, and some enterprises have orders until the first quarter of 2025.

Xuân said that the double-digit growth achieved is quite positive and the footwear industry is likely to reach its target of $27 billion in 2024. 

Policy interest rate forecast to remain unchanged in 2024, experts

The State Bank of Vietnam (SBV) may find it difficult to reduce the policy interest rate in 2024 as it must consider many factors related to economic growth and inflation, experts believe.

SBV Deputy Governor Đào Minh Tú has said the SBV has so far left open any policy interest rate decision. It hasn’t so far decided whether to maintain the interest rate, as currently, or reduce it to support the economy.

"We will consider and decide the issue in the coming time, based on the conditions of ensuring inflation, supporting growth and exchange rate relations,” Tú said.

Meanwhile, despite the US Federal Reserve (Fed)'s interest rate cut, Singapore-based United Overseas Bank (UOB)’s analysts continue to expect the central bank to maintain its key policy rates for the rest of 2024, with an eye on potential price pressure risks.

The SBV is likely to adopt a more targeted approach to support impacted individuals and businesses in specific regions, rather than implementing a broad, nationwide tool such as interest rate cut, the analysts said in a recent report.

“Consequently, we anticipate the SBV maintaining its refinancing rate at the current 4.50 per cent while focusing on facilitating loan growth and other support measures,” they wrote.

Economist Nguyễn Xuân Thành, a lecturer at the Fulbright School of Public Policy and Management, judged that Việt Nam has a lot of room to maintain a low interest rate policy, mainly due to the Fed’s interest rate cut by 0.5 percentage point and the Fed’s trend of reversing monetary policy. By 2025, the Fed is expected to lower interest rates by another 1-1.25 percentage points, so the pressure on the domestic exchange rate is not too great.

More importantly, Thành said, some Asian central banks have also reduced their interest rates, which leaves room for Việt Nam to manage the policy in the direction of reducing interest rates.

However, Thành noted, in terms of the impact on domestic enterprises, it is difficult for the SBV to reduce the rate in the fourth quarter of this year.

Thành explained that in 2024, the Government is completely confident that it can achieve a credit growth rate of 15 per cent. However, the money supply increase is lower, only rising by 12 per cent compared to the same period last year.

Therefore, Thành said, if the central bank is not able to increase the money supply, interest rates will tend to increase further, not decrease.

Sharing the same view, Trần Ngọc Báu, general director of financial market research company WiGroup, said that management agencies are focusing too much on credit growth, but the capital rising growth and money supply are very low compared to credit that creates risks.

Báu said commercial banks currently are not able to reduce interest rates in the context of a rapid credit growth and a low capital rising, putting pressure on capital costs.

However, Báu believes that in 2025, Việt Nam will have a lot of room for easing monetary policies when inflation and exchange rates ease. Regardless of whether the US has a hard or soft landing, the global trend is for easing rates and Việt Nam will benefit from the trend, he noted.

Meanwhile, Dr Phạm Thế Anh, head of the Faculty of Economics under the National Economics University, said that the current interest rate is reasonable for the general situation, so the SBV should not lower the policy interest rate in the near future.

Domestic interest rates depends not only on the Fed, but also on many other factors, including the national inflation rate. Qualitatively, Việt Nam’s exchange rate will be more stable if the country is not in a hurry to lower interest rates, Anh said.

Sharing the same position, Dr Nguyễn Hữu Huân said that the possibility of a SBV interest rate cut is difficult and even if the rate is reduced, it will only be psychological move and will not have much impact on the market, because the current interest rate level is already low and the interest rate is not a key issue for credit growth. In reality, people, who need to borrow cannot access bank loans because they do not meet the loan conditions, any barrier is not related to the interest rate.

Therefore, Huân said, the SBV does not need to reduce the policy interest rate. Instead of the rate cut, the Government should focus on fiscal policy to further stimulate the economy. 

VNA/VNN/VNS/VOV