A project on developing inland waterway and logistics corridors in southern Vietnam is set to begin next year, according to the Ministry of Transport (MoT).

It is a key project and has been prioritised to use loans from foreign donors, the ministry said, adding that investment policy for the project was approved by Prime Minister in August.

The total investment capital for the project is estimated at 3.9 trillion VND (159.7 million USD), which is sourced from World Bank’s loans, Australian Government non-refundable aid, and reciprocal funding from Vietnam.

The project will renovate and upgrade the 197km East-West Corridor connecting a number of local major rivers – Hau, Tra On, Mang Thit, Co Chien, Cho Lach, Tien, Vam Co, Can Giuoc and Soai Rap – and canals – Ky Hon, Cho Gao, La and Nuoc Man.

The corridor will allow self-propelled vessels of up to 600 tonnes and three-tier container ships to pass at any time of the day, while vessels of up to 1,500 tonnes can go through during hide tides.

The project will also repair and upgrade the 82km North-South Corridor through rivers – Dong Nai, Nha Be, Long Tau, Dong Tranh, Tac Cua, Go Gia and Thi Vai, which is expected to enable the free and safe movement of self-propelled vessels of up to 5,000 tonnes and four-tier container ships.

According to the ministry, once the project complete, it will contribute to reducing transportation costs and time while ensuring safety for vessels and enhancing competitiveness for waterway transport.

Vietnam's prospects on deeper participation in global chip supply chain

Vietnam aims to become a leading country in ASEAN and East Asia in chip production, with deeper participation in the global production and supply chain by 2030, according to an expert.

Nguyen Quan, Chairman of Vietnam Automation Association and former Minister of Science and Technology, said the elevation of the US - Vietnam relations to a comprehensive strategic partnership is a favourable condition to open up opportunities for the chip industry's development in Vietnam.

He believed that with enhanced collaboration between Vietnam and the US, many large enterprises in the field of semiconductors and chips will come to the Southeast Asian nation for cooperation and investment, thereby contributing to the development of the local semiconductor industry.

According to Quan, previously Vietnam did not have a semiconductor electronic material industry, even though its rare earth reserves were estimated to be the third largest in the world. Vietnam cooperated with Japan in the mining and processing of rare earth, the market demand at that time was too low.

At present, as the market is wider, with the technological and financial support from developed countries, rare earth resources will have an opportunity to be exploited and processed, creating raw materials for the local semiconductor industry.

Besides, domestic technology enterprises need to join the work as a key force to realise chip research and commercialisation. Taking FPT as an example, he said the firm, with financial potential, strong research teams and experience in software and information technology development, could take its advantages to invest in researching, designing, testing, manufacturing and commercialising chips. 

According to him, opportunities and prosperts for Vietnam in the field is bright. The country might face difficulties in technology transfer, testing and production in the first few years, but it will overcome when it catches up with the global supply and production chain.

The country must demonstrate to the world its capacity and human resources in the semiconductor industry, he said.

In addition to international resources and investments from the world's major enterprises in this field, Vietnam needs to prepare internal resources and investment capital for chip research and production.

Vietnam must affirm its determination and consider the semiconductor industry as a breakthrough in the country's industrial development, he added.

Semiconductor industry needs thorough preparations: official

Deputy Minister of Planning and Investment (MPI) Tran Quoc Phuong stressed human resources development in the semiconductor industry while speaking at a government press conference in Hanoi on September 30.

“This is a new industry in Vietnam that needs thorough preparations to develop effectively,” the official noted.

According to the Deputy Minister, the Prime Minister has assigned the MPI to quickly outline a project on human resources development in service of the sector by 2030.

The ministry has proposed three pillars in this regard, covering higher education, the training of engineers and workers, and the attraction of talents, Phuong said, adding that the MPI will closely coordinate with other ministries, agencies, localities, businesses and scientists to complete the project as scheduled.  

Regarding public investment, he said both domestic and foreign experts considered it an important engine for the country’s economic growth and recovery, with public investment disbursement in the first nine months of this year fulfilling about 51.38% of the set plan.

For GDP growth in the third quarter of this year, it went beyond expectations, hitting 5.33%, significantly contributing to the nine-month figure of 4.24%, he said.

Given export difficulties, domestic consumption plays a significant role in the national economic growth with the total revenue from retail sales of consumer goods increasing 9%, he said.

HCM City to host international industrial machinery expo 2023

The International Exhibition on Industrial Machinery, Equipment, Technology and Products (VINAMAC EXPO 2023) will take place from November 15 - 17 in Ho Chi Minh City.

The event is expected to attract the participation of more than 750 businesses from many countries and territories, such as India, Germany, Taiwan (China), the United States, the Republic of Korea, Japan, Russia, and China.

On display across more than 1,000 booths will be a range of cutting-edge industrial machinery and equipment in the field of automation, welding and cutting, metallurgy, metal processing as well as technological products for the plastic, rubber, food processing, and chemical industries.

The event is anticipated to provide an ideal venue in which both local and foreign businesses can strengthen connectivity, introduce their latest machinery and equipment, as well as meeting the businesses’ demand for production activities and helping them to overcome numerous difficulties in the current situation.

A number of seminars and business forums will be held during the course of the event to discuss issues on the recycled plastic, rubber, and chemical industries.

Furthermore, an international skill competition on the field of welding will be held as part of efforts to help businesses and organisations share professional experience, as well as providing high-level training for workforce in the welding, cutting, and metal processing industry.

Moreover, international business delegations will conduct field trips to survey industrial parks, export processing zones, and factories in Ho Chi Minh, Binh Duong, and other neighbouring provinces.

Germany’s Lower Saxony state interested in expanding partnership with Vietnam

Lower Saxony (Niedersachsen), the second biggest state of Germany, is keen on promoting cooperation with Vietnam, especially in economy, and wants to receive more Vietnamese workers, Minister-President of the state Stephan Weil has been quoted by SZ, Germany's largest broadsheet newspaper, as saying.

Weil described Vietnam as an important partner of the European Union (EU) in Southeast Asia, and Lower Saxony is interested in further beef up economic collaboration with Vietnamese partners.

He said that he will lead a 50-member delegation, including representatives from 30 businesses, to visit Vietnam in six days in early October to explore bilateral cooperation opportunities. The delegation has chosen Hanoi and Ho Chi Minh City as their main destinations, he said.

Vietnam is an important destination for German firms who want to diversify their market, he held, highly valuing the role of Vietnam in the context that the EU-Vietnam Free Trade Agreement (EVFTA) has took effect in several years.

Highlighting labour shortage in Germany, Weil said that during his visit, he wants to introduce Lower Saxony as an attractive destination for Vietnamese youngsters who are interested in studying or working in Germany.

Lower Saxony and Vietnam can also partner in energy transition, he underlined, explaining that with a 3,000km coastline, Vietnam is an ideal place for wind and solar power development.

The state’s press office underscored that economic cooperation promotion is the major driving force of the visit, noting that Vietnam has shown an outstanding performance in economic development over the past 30 years and one of the production hubs of electronics, garments, footwear and furniture. German firms are interested in the Vietnamese workforce, especially in health care, catering services, industry and handicraft. Therefore, Vietnam is an attractive destination for the state amid the current labour shortage situation, according to the office.

German data shows that among EU member countries, Germany is currently Vietnam's largest trading partner with two-way trade reaching about 18 billion EUR (more than 19 billion USD) in 2022. There are currently about 500 German companies running their representative offices in Vietnam. In an effort to diversify markets and production locations, many German companies are considering investing in Vietnam. Over 100,000 Vietnamese people have studied and worked in Germany.

Fruit and vegetable exports exceed last year’s turnover

Fruit and vegetable exports fetched roughly US$4.2 billion by the end of the third quarter of this year, 25% higher than last year's export turnover.      

Durian, banana, and dragon fruit are agricultural products that greatly contribute to the growth of the fruit and vegetable industry as well as the entire agricultural industry.

Notably, durian ranks first in exports, joining the "billion dollar" fruit group. It is predicted that durian will soon reach the target turnover of US$1.5 billion next month.

China is currently the largest import market for Vietnamese fruit and vegetables with a total turnover over the eight-month period reaching US$2.3 billion, representing a year-on-year increase of 134%, and accounting for 64% of the market share, followed by the US the Republic of Korea , and Japan.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said that in the remaining months of this year, with durian in the Central Highlands, plus other new products and markets, this year's fruit and vegetable exports are expected to hit about US$5 billion, 2 years earlier than the plan set for 2025.

China remains largest consumer of Vietnamese lobster

Despite Vietnamese lobster exports to China during the initial eight months of the year declining by 42% year on year to US$76 million, the northern neighbour remains the largest importer of Vietnamese lobster, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).      

Last year witnessed lobster exports to the Chinese market reach over US$257 million, representing an 8.3-fold rise compared to 2021 thanks to China’s rising demand in the COVID-post period.
  
Most notably, Thanh Nhon Seafood and General Trading Co, Ltd in Ho Chi Minh City signed a contract on April 27, 2022, to officially export 2,000 tonnes of fresh lobster to Kunming City.

This was the largest contract relating to the export of lobster by a domestic enterprise via an official channel.

VASEP experts report, the country’s lobster products are mainly exported to China via unofficial channels as farmers continue to face a number of risks amid ongoing price fluctuations.

Insiders underscored the importance of strengthening linkages in terms of the production, purchasing, and export activities, along with origin traceability in a bid to further boost lobster exports to China vial official channels.

According to statistics released by China Customs, China’s lobster imports during the opening seven months of the year reached 32,358 tonnes, worth over US$962 million, up 19% in volume and up 1% in value over the same period from last year.

The largest suppliers of lobster to the Chinese market include Canada, the United States, New Zealand, Cuba, India, Brazil, and Mexico.

Vietnam ranks 14th among providers of lobster to China, duly accounting for a market share of 1%, with major products such as rock, cotton, and green lobsters.

Aquatic product exports see slight increase in September

The export value of aquatic products is estimated at 862 million USD in September, equal to that in the same period last year, and 16 million USD higher than that of August, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

In the January-September period, the revenue reached 6.6 billion USD, down 22% year-on-year.

VASEP's Communications Director Le Hang said that in September, some key exports like shrimp and tuna have seen good recovery to the levels of the same month last year. Notably, tra fish exports recorded a year-on-year growth rate of 9%.

Hang said that in the first nine months of this year, shrimp exports fetched 2.55 billion USD, 25% lower than that of the same period of 2022.

However, in recent months, exports to the two key markets of the US and China have increased, and some main markets in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) such as Japan, Australia, and Canada are also increasing shrimp imports from Vietnam.

Similarly, tra fish exports are seeing recovery in such markets as China, Mexico, Brazil, the Netherlands, the UK and the US.

In the first three quarters, the value of exports to the three biggest importers of Vietnamese aquatic products, namely the US, China and Japan, all exceeded the 1 billion USD mark, of which the US was at the top with nearly 1.2 billion USD, followed by China with 1.15 billion USD, and Japan nearly 1.1 billion USD, down 33%, 15% and 14% year-on-year, respectively.

Ho Quoc Luc, former Chairman of VASEP, Chairman of Sao Ta Food Joint Stock Company, said that exports in the last months of the year will be difficult to make a breakthrough even though the decline has gradually narrowed over the months. He forecast that shrimp exports in 2023 would reach only about 85-90% of that last year.

VASEP expected that the country’s aquatic export revenue would be around 9.2 – 9.3 billion USD this year if there are no unexpected fluctuations in the market and the raw material source does not decline sharply.

Vietnam’s Masan Group secures 200 million USD investment from Bain Capital

Vietnamese conglomerate Masan Group on October 2 said it has secured funding of at least 200 million USD from Bain Capital, one of the world’s leading private investment firms with approximately 175 billion USD in assets under management.

The investment would be in the form of convertible dividend preference share at a price of 85,000 VND (3.5 USD) per share which can be converted into ordinary shares at a 1:1 conversion ratio, Masan said in a statement, adding that proceeds would be used to strengthen its financial positions.

Danny Le, General Director of Masan Group, said Masan wishes to cooperate with Bain Capital to promote its vision in which consumers are put at the centre, thus becoming a platform serving their daily needs.

Barnaby Lyons, a leader of Bain Capital, noted his belief that Masan has many solid foundations, and a suitable vision and growth strategy to succeed in an attractive and fast-growing consumer market.

Vietnam has been regarded as the fastest-growing consumer market in Southeast Asia in the 2022-2040 period, with an estimated annual rate of 7.7%, which is attributable to its rapid urbanisation and the rising number of consumers with higher income and more diverse needs.

Masan said it expects that the transaction will be completed in 2023 and it will continue to seek other strategic equity solutions, including reducing the proportion in non-core business and increasing liquidity.

VN records $21.68 billion trade surplus in nine months

Việt Nam posted a trade surplus of US$21.68 billion in the first nine months of this year, compared to $6.9 billion recorded in the previous year's corresponding period, the General Statistics Office (GSO) has announced.

The country's trade surplus reached $2.29 billion in September alone, it said.

During the nine months, the total import-export turnover of goods reached $449.66 billion, with export turnover at $259.67 billion, a year-on-year decrease of 8.2 per cent.

The GSO stated that 31 items recorded export turnover of over $1 billion, accounting for 92.2 per cent of the country's total export turnover. This includes fruits and vegetables at $4.2 billion, up 71.8 per cent; rice at $3.65 billion, up 40.4 per cent; and cashew nuts at $2.6 billion, up 14.3 per cent.

Specifically, six commodities registered an export turnover of more than $10 billion, accounting for 62.2 per cent. Among them were electronics, computers and components at $41.2 billion, and handsets and parts at $39 billion.

The report added that the US was Việt Nam's largest export market during the period, amounting to $70.9 billion.

Meanwhile, the country's imports over the nine months totalled $237.99 billion, down 13.8 per cent year on year. China remained its largest import market, with expenditures totalling $79.1 billion.

The Ministry of Industry and Trade attributed the decline in Việt Nam’s exports to the sluggish recovery of the global economy, reduced demand, and high interest rates in developed countries such as the US, EU nations, and China. This was compounded by a tightened monetary policy and elevated inventory levels.

The ministry mentioned it would continue to monitor the global economic landscape, particularly the policy adjustments of major importers, to provide timely alerts to enterprises and recommend appropriate response policies to the Government.

Additionally, the ministry plans to prioritise revitalising and intensifying trade promotion efforts directed at emerging and potential markets. They will also assist businesses in leveraging the benefits of free trade agreements to boost exports.

Efforts will also be made to provide early warnings regarding potential trade barriers imposed by major import markets.

The ministry anticipates that exports will rebound from the fourth quarter of this year, given favourable conditions such as the recovery of import demand in the US market.

Furthermore, the UK's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to offer additional opportunities for Vietnamese exports. 

Tourism growth driven by domestic demand: experts

Domestic demand is driving a tourism recovery in Việt Nam and compensating for the lower number of international visitors, tourism and hospitality experts said.

Việt Nam has welcomed 8.9 million international visitors in the first nine months of this year. The number equals 69 per cent of the number of visitors during the same period in 2019, according to data from the General Statistics Office.

Domestic visitors reached 93 million during the period.

The tourism sector in Việt Nam has seen significant growth, driven largely by domestic tourism, according to Dr. Jackie Ong, senior programme manager of the tourism and hospitality management programme at RMIT University Vietnam.

In fact, the recovery of domestic tourism led to Việt Nam becoming the world’s fastest-recovering domestic aviation sector and the world’s fifth fastest-growing aviation market. It is expected to reach 150 million air transport passengers by 2035, Ong said.

After countries reopened their borders, Việt Nam gained in popularity as a global travel destination. This is evident in the country winning 16 top award categories in the 2022 World Travel Awards and being recognised as Asia’s Leading Destination (for the fifth time) and Asia’s Leading Nature Destination (for the second time) at the 2023 World Travel Awards.

To support the recovery of the tourism sector, tourism products are being diversified. Along with conventional types of nature and cultural tourism, the promotion of river tourism, cuisine or gastronomy tourism, rural tourism, and wellness and spiritual tourism are also becoming popular, she said.

Notably, the green and sustainable tourism trend has led to a higher demand for rural nature tourism, while community-based tourism has resulted in an increase in homestays, huts and local dining experiences.

There has been more focus on promoting and implementing sustainable tourism measures, such as bicycles for rent and walking streets in Hà Nội, HCM City and Đà Nẵng, and tourist entrance fees in the ancient town of Hội An.

Another commendable development is the move toward digitisation and use of technology to promote tourism by the government authority and travel industry.

QR codes are available at many popular travel destinations, and instant translation apps are being adopted by tourism service providers, she added.

Mauro Gasparotti, Director of Savills Hotels, said, “in the medium term, the market focus should be on increasing international marketing campaigns and destination marketing.”

“The extension of visa validity to 90 days is encouraging news and establishes a strong foundation for both leisure and business travellers, enabling them to plan their trips to Việt Nam without the limitations of entry numbers. However, Việt Nam’s tourism industry must proactively redefine its destination image, enhance its tourism offerings, and reinvigorate the market,” Gasparotti said.

“Promotions in other countries and the establishment of overseas sales offices are crucial for generating demand, especially during this period of intense competition among different countries to attract tourists,” he said.

When comparing Phú Quốc to other islands such as Phuket, Bali, and Boracay, it becomes apparent that the destination awareness of the Vietnamese island is much lower. Similarly, destinations such as Hồ Tràm, Quy Nhơn, and Mũi Né would greatly benefit from international marketing efforts, particularly those with high-quality resorts, he said.

The global hotel market is on the path to recovery, with occupancies in most regions nearly reaching 2019 levels, although the Asia Pacific region still trails, he said.

In Southeast Asia, Singapore has had the greatest market recovery, followed by Thailand. However, Việt Nam is still struggling to surpass its 2019 occupancy and rate benchmarks.

Việt Nam’s performance was behind that of regional competitors like Thailand, the Philippines, Indonesia, and Malaysia. These competitors reached occupancy of above 50 per cent and Singapore’s occupancy was nearly 75 per cent, but occupancy in Việt Nam struggled at 40 per cent in the first eight months of 2023, a decline of 20 percentage points below pre-pandemic levels.

Looking into the long-term potential of Việt Nam tourism, Gasparotti said, "there is no doubt that the hospitality industry will continue to play a fundamental role in the country, creating jobs and giving rise to new destinations, among other benefits. However, for Việt Nam to remain competitive, the market must change and update its offerings with a focus on local culture and the creation of communities. There also needs to be better infrastructure and increased attention to sustainable tourism.”

Việt Nam set a target of welcoming eight million international visitors for the whole of 2023, the lowest level among the top five Southeast Asian countries with the largest numbers of international arrivals, according to a report conducted by Outbox Consulting, a research and consulting firm.

The Ministry of Culture, Sports and Tourism will propose that Government raise this year’s target to 12.5-13 million tourist arrivals. 

Green building materials: the future of sustainable construction

In the global trend of sustainable and green growth, eco-friendly building materials have become a lifesaver for the construction industry.

Eco-friendly building materials help reduce electricity consumption and greenhouse gas emissions while simultaneously enhancing living space.

The Ministry of Construction reported that construction projects consume around 40 per cent of energy resources, which are responsible for 50 per cent of emissions. They also produce 33 per cent of carbon emissions and use 40 per cent of construction solid water.

In the first half of 2023, the construction industry's growth rate increased by 4.47 per cent year-on-year, raising the energy demand for the sector. During the period, Việt Nam totalled 898 urban areas.

Therefore, developing green materials is becoming the primary objective of the Vietnamese construction materials manufacturing industry to attain the goal of net zero emissions by 2050. The Ministry of Construction, in particular, is assigned to cut 74.3 million tonnes of CO2 emissions.

Nguyễn Quang Hiệp, deputy director of the Construction Materials Department under the Ministry of Construction, highlighted the benefits of green materials such as easy recycling, reducing greenhouse gas emissions, contributing against climate change, and saving energy.

"More importantly, eco-friendly materials help promote a cleaner environment and support the sustainable development of the construction industry and other businesses," he added.

Given its significance, the Ministry of Construction has developed the Việt Nam Construction Materials Development Strategy for the 2021-30 period, with a vision to 2050, and advised the Government to enact it.

The strategy completely eliminates construction material production technology that consumes a lot of resources and pollutes the environment.

Even though Việt Nam has boosted the development of green materials, they are not widely used due to barriers in current legal and technical issues.

Moreover, Việt Nam's ability and technology to create green materials are limited while prices of the products are still expensive, making them difficult to compete with other materials.

To solve these problems, Hiệp suggested that Việt Nam have specific regulations and policies to support the research and development in the production of green materials.

Manufacturing businesses also need to seek solutions to further reduce the production cost of green materials so that they are able to compete with traditional materials that have similar features.

Nguyễn Dương Trúc Linh, a representative of Phương Nam Soundproofing Insulation Company, said that in the future, the Ministry of Construction and other related agencies must issue more specific solutions and guidelines to attract business participation towards sustainable green buildings.

"The Ministry of Construction needs to have a set of criteria for design and construction guidance for green buildings, or a toolkit that directly guides and provides specific and practical guidance for all investors in the direction of building sustainable projects," Trúc Linh recommended. 

Customer experience, business expansion driving conversational AI investment

Brands in Việt Nam and the Asia Pacific region are strongly investing in commercial conversation to improve the customer experience, experts said.

About 77.9 million Vietnamese residents use the Internet out of a total population of 98.5 million as of January 2023, which contributes to the popularity of social networking platforms.

Therefore, the potential for conversational commerce in Việt Nam is incredibly wide.

Telecommunications service providers in the country have used conversational commerce platforms for account notifications and to offer hyper-personalised promotions and discounts to customers.

In addition to Facebook and Instagram, Vietnamese are very active in using communication apps such as Zalo and Viber.

Furthermore, e-commerce is one of the fastest-growing business segments in the country.

Many online retailers in Việt Nam are using conversational AI and chatbots to address customer queries in real time and keep customers apprised of order updates.

For instant messaging, brands use communication platforms as a service (CPaaS) and software as service-based (SaaS) solutions as crucial tools, empowering organisations to seamlessly integrate real-time communication features such as voice, text, video, instant messaging, and social media into their internal and external applications.

Nikhil Batra, Research Director, Telecommunication, IDC Asia/Pacific, stated that contextualised customer interactions boost profitability and foster emotionally fulfilling engagements. The rapidly increasing use of social networks in Việt Nam further fuels businesses' desire to improve customer experience. Investing in conversational commerce will thus help brands grow more quickly.

According to Infobip’s research Revolutionising Customer Experience through the Power of Conversational Commerce, a majority of organisations in the region, about 70 per cent, plan to increase communication platform spending over 2023-24 in order to provide unique, unparalleled customer experiences for the region’s growing social media users, who are mostly young, active, and aware of the power of their own influence.

The research revealed that Asia Pacific companies including those from Việt Nam are increasing investments in cloud-based solutions for enhanced customer experiences and operational efficiencies.

As businesses embrace the potential of conversational commerce, they leverage AI technology to create meaningful connections and unlock new growth opportunities.

"Organisations need an actionable, customer-centric strategy and the ability to invest in the right set of tools to grow their business and keep customers happy, which will empower organisations to stay ahead in a dynamic marketplace,” said Velid Begovic, vice president of Revenue at Infobip.

According to the report, customers born and raised in the digital age have high expectations and carefully evaluate their interactions with brands throughout the buying journey.

This has resulted in brands moving away from traditional transaction-level experiences to relationship-based ones.

Capitalising on the advancements in Artificial Intelligence, conversational commerce has gained significant traction among businesses in the Asia Pacific region.

According to the study, at 74 per cent, the banking, finance and insurance sector leads the industry in increased CpaaS investments in 2023-2024. Retail and government/healthcare come in second and third, at 72 per cent and 66 per cent, respectively. 

HoREA wants new rule on short-term capital use delayed

The HCMC Real Estate Association (HoREA) has proposed the prime minister delay the enforcement of the State Bank of Vietnam’s new circular that lowers the percentage of short-term capital used by commercial banks to make medium and long-term loans.

Circular 08/2020, which was issued by the State Bank of Vietnam (SBV) to amend Circular 22/2019, regulates that the proportion of short-term capital used for medium and long-term loans falls to 30% from the previous 34%, with effect from October 1, 2023.

But HoREA has proposed reinstating the 34% ratio for a period of 12 months, from October 1, 2023 to October 1, 2024.

HoREA argued that the new restrictive regulation of the central bank would significantly affect the dormant real estate sector as the sector will find it more difficult to obtain bank loans for recovery.

The SBV said lowering the proportion of short-term capital used to make medium and long-term loans would ensure the safety of the banking system in line with international standards.

In the past, the ratio was even higher, at 40% until September 30, 2021, but it fell to 37% from October 1, 2021 to September 30, 2022, and 34% from October 1, 2022 to September 30, 2023.

The reduction to 30% is in the final stage of a roadmap established by the central bank.

Hung Yen looks to become "promising land" for foreign investors

The northern province of Hung Yen has focused on creating a safe, effective and competitive investment environment to turn the locality into a “promising land” for enterprises, particularly foreign investors.

Secretary of the provincial Party Committee Nguyen Huu Nghia affirmed that the province has set a goal to become an industrial hub and an attractive, safe, competent investment destination in its development strategy from now to 2023 with a vision to 2045. 

Under the strategy, Hung Yen pursues the strategic goal of developing modern industry and efficient agriculture towards rapid and sustainable growth on the basis of three pillars of high economic growth, harmonious society and well protected environment and ecology. 

According to the secretary, the province is an enticing investment destination due to several outstanding factors, including a convenient geographical location with a central position in the rapidly developing Red River Delta region and adjacent to the capital of Hanoi. 

He noted that the province attracts investors thanks to a convenient geographical location in the centre of the fast-growing Red River Delta and adjacent to Hanoi capital, developed trade and transportation infrastructure with convenient linkage to Noi Bai international airport, Hai Phong international port and major economic, commercial and industrial centres of the country.

Besides, Hung Yen boasts a rich network of tangible and intangible cultural heritages and was once a major economic centre. Lastly, the province has an abundant, highly skilled, and hard-working workforce.

The province currently has 17 industrial parks with total area of nearly 4,395 hectares, and has and will continue to invest in building modern, standard and synchronous technical infrastructure for the IPs so as to meet the demand of foreign investors and high-tech industrial projects.

The number of industrial parks in the province is expected to increase in the coming time, reaching 30 industrial parks with 9,540 hectares by 2030.
In addition, there are 25 industrial clusters with total area of over 1,200 hectares. The number is expected to increase to 52 with an area of 3,000 hectares by 2030.

Currently, the province is focusing on developing a synchronous industrial ecosystem, with priority given to specialised industrial, eco-industrial, high-tech industrial and supporting industrial parks, industry clusters. It is also shaping a complete living ecosystem including new urban areas, housing areas, medical and educational as well as cultural, sports, entertainment facilities to meet living and working needs of experts, leaders, business managers and workers. 

The secretary affirmed that Hung Yen provincial government remains committed to creating a safe, open, effective investment environment and continuously improving provincial competitiveness so that the province can become a safe destination and an ideal choice for investors.

Recently, Hung Yen has awarded investment certificates to 14 projects in the province, with total capital amounting to 732 million USD. Among them, the new Nitto Vietnam factory project in Thang Long Industrial Park II has the largest investment capital with 132 million USD. The factory specialises in producing LCD polarised films used for smartphones and cars, with a capacity of 176 tonnes or 48 million products a year.

According to the province's Management Board of Industrial Parks, in recent years, Hung Yen has promoted foreign investment attraction while creating favourable conditions for foreign investors investing in the province.  

The province is now home to 516 valid foreign-invested projects worth over 6.3 billion USD. Foreign investors come from many countries and territories, including the US, Japan, the Republic of Korea, among others. Japan leads in the number of projects with 173 with total registered capital of more than 4 billion USD, 169 of them have become operation, creating jobs for about 45,000 workers, contributing over 1.4 trillion VND (58 million USD) to the state budget in 2022 and about 880 billion VND in the first half year of 2023.

HAECO eyes aviation investment in Quang Ninh province

HAECO Electrical Mechanical Group (HAECO), one of the world’s leading aircraft engineering and maintenance service providers, aims to invest in the aviation industry in Quang Ninh province.

In a recent meeting with the province's leaders, Richard Sell, General Director of HAECO Group, said he was impressed with the remarkable development of Quang Ninh and revealed intention to conduct research and invest in the province.

According to Cao Tuong Huy, Acting Chairman of the provincial People’s Committee, Quang Ninh is home to Van Don airport, but the province's aviation logistics infrastructure is still underdeveloped despite being a prioritised sector. Therefore, Huy suggested a collaboration between HAECO and Sun Group, the investor in the Van Don Airport, to soon deploy the logistics project.

The province has offered assistance with investment procedures, location, staff selection, and other activities.

Quang Ninh is one of the leading localities in terms of development speed in the country, with a synchronous transportation infrastructure system from highways and seaports. And the Van Don Airport is the first private airport in Vietnam, with convenient regional and international connections. It is also a typical example of private resource mobilisation in the province.

The province has an appealing business and investment environment with modern administration and sustainable local governance and is a destination for international investors. According to the annual Provincial Competitiveness Index (PCI), Quang Ninh is the most business-friendly province in Vietnam. As of mid-September, the province had attracted FDI worth 750 million USD, the ninth-highest amount of any locality in the nation.

Petrol prices revised down on October 2

Retail prices of petrol were revised down on October 2 in the latest adjustment by the Ministry of Industry and Trade and the Ministry of Finance after many consecutive times of increase. 

Specifically, the retail prices of E5 RON 92 and RON 95-III were cut by 695 VND and 906 VND to 23,502 VND (0.97 USD) and 24,842 VND per litre, respectively.

Meanwhile, the prices of diesel, kerosene and mazut were kept unchanged at 23,594 VND per litre, 23,816 VND per litre, and 17,452 VND per kilogram, respectively.

The ministries decided not to use the petrol and oil price stabilisation fund.

From the beginning of this year, petrol prices have been adjusted up 16 times, down nine times and kept unchanged four times.

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