Governor of the Republic of Korea (RoK)’s Jeju province Oh Young Hoon underscored the significance of setting up regular direct air routes between the tourist island and Vietnam, while meeting with Vietnamese Ambassador Vu Ho on October 8.

As of October, irregular services have been on 10 routes between the two sides a month, he said, suggesting competent authorities of the two countries boost the establishment of regular direct flights, helping bolster bilateral substantive exchanges and cooperation.

Initially, Jeju eyes to open direct flights to Hanoi and Ho Chi Minh City, he said.

According to Oh, the local administration established its twinning relations with those of the Mekong Delta of Kien Giang and the central city of Da Nang in May 2008 and August 2023, respectively, to maintain and develop collaboration in the areas of tourism, culture, agriculture and fisheries. Through the RoK’s ASEAN Plus Alpha diplomatic initiative, the Korean province wants to enhance cooperation with Vietnam across the fields of future industries, energy, agriculture, husbandry, fisheries, and tourism.

At the meeting, Ho and Oh discussed measures to step up bilateral cooperation in trade, investment, tourism, and education, among others./.

UOB raises Vietnam's 2024 GDP growth forecast to 6.4%

Singapore-based United Overseas Bank (UOB) has revised up its GDP growth forecast for Vietnam by 0.5 percentage point to 6.4% this year from the previous projection of 5.9%.

The revision is to take account of the year-to-date performance and the disruptions to activities in early the fourth quarter caused by Typhoon Yagi, the bank said.

According to UOB’s Global Economics & Market Research Unit, Vietnam’s GDP in the third quarter expanded by 7.4%, higher than the average market forecast of 6.1%, and UOB’s projection of 5.7%.

This was the fastest pace since the third quarter of 2022 when activities rebounded sharply from the trough of the pandemic, the bank said, adding that this latest figure extended the revised 7.09% gain in the second quarter of 2024, resulting in a cumulative 6.82% year-on-year growth in the first nine months of this year.

UOB’s experts said that the surprise outcome in the last quarter reflected the resilience of the economy, despite the devastation from super Typhoon Yagi.

The service sector was the main driver of Vietnam's GDP growth in the last quarter, contributing 3.24 percentage points, followed by the industry and construction sector with 3.37 percentage points.

Other data in the third quarter reflect the overall resilience of the Vietnamese economy. Both exports and imports in September recorded respective growth rates of 10.7% and 11.1% compared to the same period last year, marking the 7th consecutive month of double-digit growth in the year.

The country’s export earnings rose by 14.6% year-on-year in the last nine months, while its imports increased by 16.5% compared to the same period last year. Vietnam posted a trade surplus of 20.8 billion USD in the period.

Notably, the upswing in semiconductor sales since mid-2023 suggests that the momentum will likely be sustained in the one to two quarters ahead, UOB said.

The bank kept their growth forecast for Vietnam in 2025 unchanged at 6.6%./.

Platinum top-traded commodity in Vietnam in Q3

Platinum, in association with the New York Mercantile Exchange (NYMEX), has experienced a remarkable acceleration as it emerged as the most actively traded product in Vietnam in third quarter of this year, statistics from the Vietnam Commodity Exchange (MXV) showed.

According to MXV, in the third quarter of 2024, global raw material prices continued to fluctuate significantly. The trading volumes of various commodities in the recent quarter also experienced surprising shifts.

This transition mirrors changes in market demand and investment strategies, with formerly stable commodities unexpectedly declining to make room for emerging contenders.

Consequently, the market is witnessing a robust surge in metal commodities.

Of particular note is the outstanding acceleration of platinum, in association with NYMEX, which has surged to become the most actively traded product in Vietnam, commanding a substantial 21.5% share of the trading volume on MXV.

Meanwhile, Micro copper has ascended from the sixth position in the previous quarter to claim the third spot in the current rankings, boasting an 8% share. Other commodities like copper and Micro silver hold the seventh and ninth positions, with 5.7% and 5.2% of the trading volume, respectively.

"The increasing popularity of metal commodities among investors is clear, with four commodities from this category now ranking in the top 10," said Nguyen Ngoc Quynh, deputy general director of the MXV.

"The precious metal market has recently reaped the benefits of a period where markets closely monitor the US Federal Reserve's significant interest rate adjustments.

“The persisting low-interest-rate environment is expected to continue fostering favourable pricing conditions for precious metals throughout this year.

“In my view, this positive trajectory in precious metals may well extend into the fourth quarter as macro-economic pressures ease gradually, and the impact of a new cycle of interest rate reductions is felt across global financial and commodity markets.”

Following platinum, soybeans interconnected with the Chicago Exchange claim a notable 12.7% share, securing the second spot on the list of the most actively traded commodities in the third quarter.

Processed products like dried soybeans and soybean oil also maintain their presence on the roster at positions six and eight, respectively.

Subsequent rankings unveil familiar commodities on the quarterly leaderboard. Wheat and Robusta coffee take the fourth and fifth slots, with respective shares of 7.1% and 6.8% of the total trading volume.

Arabica coffee has re-entered the competition, solidifying its place in the top 10 most traded commodities in Vietnam for the third quarter with a 5.1% share.

Many experts anticipate significant commodity price fluctuations in the fourth quarter of this year due to unpredictable market factors such as escalating political tensions, climate change and extreme weather conditions.

For agricultural products and industrial raw materials, weather remains a key market influencer. Coffee prices are expected to stay high due to reduced supplies from major producers like Brazil and Vietnam, impacted by severe weather.

On the other hand, energy markets face macro-economic pressures and Middle East tensions.

Metals are poised for growth in the coming months, supported by new economic policies. The Fed's monetary policy shift and potential interest rate cuts will likely boost metal prices, particularly precious metals sensitive to macro-economic conditions.

MXV's third-quarter market share rankings reveal familiar names, but each member has experienced notable fluctuations in market share.

Gia Cat Loi Commodity Trading JSC retains its top spot as the country's leading commodity trading brokerage, with a 2% increase in market share from the second quarter.

This outcome is unsurprising given Gia Cat Loi's status as one of the earliest members with the largest office network nationwide.

In second place, the Ho Chi Minh City Commodity Trading JSC commands a substantial 17.7% market share.

Friendship International Investment Company Limited (Finvest) secures the third spot with a 12.5% market share, while Saigon Futures JSC maintains its fourth-place position with a 9% market share.

A notable surprise in this quarter's rankings is VMEX Commodity Trading JSC. Leveraging innovative business strategies, VMEX has climbed to fifth place with a 3.4% market share. This marks VMEX's second appearance in the top five since the third quarter of 2023.

Quynh said that the competition in the commodity brokerage market in the third quarter was vibrant, showing shifts not only in member rankings but also in overall market share.

Currently, the top five collectively hold 76% of the total market share, a significant decrease from previous quarters, signalling a more intense competition.

This also suggests that numerous emerging players are poised for remarkable advancements in the final months of 2024, he added./.

Vietnamese, French firms partner in vaccine production

The Vietnam Vaccine Joint Stock Company (VNVC) and Sanofi on October 8 signed a document guiding the cooperation in manufacturing some vaccines of the French pharmaceutical group in the Southeast Asian country.

Accordingly, Sanofi will broadly share its knowledge and expertise on biotechnology with the Vietnamese partner to create conditions for gradually manufacturing essential vaccines at the VNVC factory in Vietnam.

This important partnership will not only facilitate Vietnamese people’s access to vaccines but also help ensure stable vaccine supply and reduce many expenses.

Addressing the signing ceremony in Paris, general director of Sanofi-Aventis Vietnam Burak Pekmezci said Sanofi is one of the world’s leading vaccine producers, with over half a billion people around the globe using its products each year. In Vietnam, it supplied more than 7 million high-quality vaccine doses in 2023.

With its vaccine production experiences, Sanofi wishes to share its knowledge and contribute to the development of the health sector as well as the improvement of community health in Vietnam, he said.

Ngo Chi Dung, Chairman and CEO of the VNVC, said his company is about to build a vaccine and biologicals factory using cutting-edge technology and complying with the EU Good Manufacturing Practice (GMP) standards in Long An province. It prioritises cooperation with Sanofi and other pharmaceutical firms so as to manufacture important vaccines and drugs, helping ensure sufficient supply for Vietnam.

He expressed his hope that the partnership between Vietnam’s leading vaccination system and the world’s leading pharmaceutical group will assist with improving the Southeast Asian country’s capacity of producing high-quality vaccines. It matches the VNVC’s mission of ensuring sufficient supply of important vaccines and delivering high-quality, accessible, and affordable vaccination services to all Vietnamese people.

Under its plan, the VNVC will negotiate to gradually engage in manufacturing and receive technologies for producing some vaccines transferred by Sanofi.

Speaking to the Vietnam News Agency, Nguyen Thi Kim Tien, former Vietnamese Minister of Health and Honorary President of the Vietnam - France Friendship and Cooperation Association (AAVF), described this as a memorable event in the field of vaccine production of Vietnam. It reflects efforts by the country’s science sector and enterprises in mastering advanced technologies and techniques for vaccine research and manufacturing, helping the country guarantee vaccine self-sufficiency in the future.

Meanwhile, Vietnamese Ambassador to France Dinh Toan Thang described the partnership between VNVC and Sanofi as a continuation of the two countries’ traditional cooperation in health care and pharmaceuticals, adding that he hopes the health and pharmaceutical collaboration will become more effective as it comes in line with the consensus reached by Vietnamese and French leaders during the freshly concluded visit to France by Party General Secretary and State President To Lam./.

Dragon Capital starts to disburse

In less than a month, Dragon Capital has reinstated its position as a significant shareholder in PV Drilling while also increasing its investments in Phu Nhuan Jewellery (PNJ) and FPT Digital Retail (FRT).

Hanoi Investments Holdings Limited, a fund member under Dragon Capital, recently disclosed the acquisition of over 1.1 million PNJ shares on October 2.

Post-transaction, Dragon Capital's ownership in Phu Nhuan Jewellery has risen to 6.2% of the total capital. Approximated at the closing price on October 2, the transaction is valued at around 109 billion VND (4.4 million USD).

The fund’s decision to boost its ownership stake comes at a pivotal moment for Phu Nhuan Jewellery as it enters the bustling Winter-Spring season - a popular time for weddings, driving up the demand for jewellery.

Additionally, a dynamic gold market is expected to fuel business growth for the company in the latter half of this year.

Regarding the retail jewellery sector, Phu Nhuan Jewellery's main business segment, Viet Dragon Securities (VDSC) projects a potential 10.5% annual growth from 2024 to 2028, contingent upon the company securing input materials amidst a deepening shortage of gold supply.

Previously, another member fund of Dragon Capital reported a net acquisition of 105,000 FRT shares, elevating their holdings to 17.6 million shares, constituting 13.03% of the company's capital.

Dragon Capital now ranks as the second largest shareholder in FPT Digital Retail, trailing only FPT Group, with an ownership stake exceeding 46.5% of the company's capital.

In the first half of the year, FPT Digital Retail saw a robust 22.5% surge in gross revenue compared to the same period last year to over 18.2 trillion VND. Its profits after tax soared to 109 billion VND after recording a previous year's loss of nearly 213 billion VND.

Notably, the FPT Long Chau pharmacy chain experienced an impressive 67% revenue growth in the first half of 2023, hitting more than 11.5 trillion VND and contributing 63% to the overall revenue of the parent company.

According to VDSC, forthcoming vaccine consumption per capita is expected to surge, driven primarily by increasing disposable incomes and sustained public health consciousness and disease prevention efforts.

The Long Chau vaccination chain, a part of FPT Long Chau, currently stands out as the fastest-growing vaccination network. VDSC expects revenue for this chain in 2024 to reach around 1.4 trillion VND, capturing a market share of around 6%.

Dragon Capital, a foreign fund group, has diversified its investments by acquiring oil and gas stocks in addition to retail.

Two Dragon Capital member funds, Samsung Vietnam Securities Master Investment Trust and Vietnam Enterprise Investments Limited, purchased 50,000 and 1,200,000 shares of PV Drilling (PVD), respectively, on September 30, increasing Dragon Capital's ownership to 5.22%.

Earlier in September, another Dragon Capital member, DC Developing Markets Strategies Public Limited Company, sold 500,000 PVD shares, reducing Dragon Capital's total ownership to 4.92% in PVD Drilling.

Within a month, Dragon Capital reemerged as a major shareholder in PV Drilling with a 5.22% ownership stake./.

Bac Ninh leads nation in FDI attraction in nine months

Bac Ninh province continued topping the nation for foreign direct investment (FDI) influx with a total of over 4.2 billion USD during January-September on the back of its sound investment climate, modern infrastructure, and abundant labour force.

According to the provincial Department of Planning and Investment, foreign investors injected 1.56 billion USD in 339 projects in the industrial hub in the northern region, a year-on-year surge of 82.2% and 28.4%, respectively.

During the nine-month span, 147 FDI projects registered to adjust their investment capital with some 2.68 billion USD added.

In September alone, the locality granted investment licences to nine projects with registered capital totaling 57.8 million USD, including one realty project from Singapore worth 44.7 million USD.

To date, Bac Ninh is home to more than 2,400 valid FDI projects with a total value of 29.3 billion USD.

So far this year, local leaders had working sessions with many FDI firms, including Samsung Vietnam, Canon Vietnam, and Goertek Vina, to remove their bottlenecks while doing business there. They also receiving foreign diplomats and businesses from Azerbaijan, China, Germany, Japan, and China who came to seek investment and cooperation opportunities./.

Enterprises resuming operations up 25% in nine months

Nearly 121,900 new enterprises were established with total registered capital of 1.158 quadrillion (46.7 billion USD) in the first nine months of this year, figures released by the General Statistics Office (GSO) showed.

The figures represent a year-on-year increase of 3.4% in the number of businesses and also a 3.4% rise in capital.

These new businesses registered a total number of 735,000 workers, a drop of 3.4% over the same period last year.

The average registered capital of a new enterprise in the January - September period reached 9.5 billion VND.

In the reviewed period, 2.31 quadrillion VND of added registered capital was poured into Vietnam’s economy, down 6.1% compared to the same period last year.

Over 61,100 enterprises resumed their operations in the first nine months, up 25% against the same period in 2023, bringing the total number of new businesses and those returning to operations to 183,000, a year-on-year increase of 9.7%.

However, the January-September period also witnessed 86,900 enterprises temporarily suspending operations, a year-on-year rise of 14.7%.

Meanwhile, nearly 61,500 enterprises ceased operations while waiting to complete dissolution procedures, up 33.4% year-on-year, and 15,400 businesses were dissolved, up 18.9% year-on-year.

In September alone, Vietnam had 11,200 newly established enterprises with registered capital of 92.8 trillion VND, down 16.3% in the number of businesses and 25.5% in registered capital month on month.

As Vietnamese enterprises in general and those engaged in import-export activities in particular are still facing many difficulties, the Ministry of Planning and Investment said that it will focus on effectively implementing policies to support businesses and people.

Activities to boost domestic consumption will be promoted along with the deployment of "Vietnamese people prioritise using Vietnamese goods" campaign as well as attracting domestic and international tourists./.

Da Nang hosts int’l conference on antenna measurements, applications

The IEEE International Conference on Antenna Measurements and Applications (IEEE CAMA) 2024 opened in the central city of Da Nang on October 9, gathering a large number of scientists and experts from 20 countries and territories.

The conference comprises regular and special sessions with more than 150 reports delivered by distinguished speakers, including Prof. Yahya Rahmat-Samii from the California University in the US and Prof. Karu Esselle from the University of Technology Sydney, Australia.

According to Le Quang Son, Vice President of the University of Da Nang, the conference aims to create an interdisciplinary forum where leading scientists, experts and young researchers can meet and share knowledge and the latest achievements in research and development of antenna systems and antenna arrays.

This is also a chance for the University of Da Nang to show its commitments to expanding the semiconductor human resources training with a goal of turning Da Nang into a centre for semiconductor technology and artificial intelligence.

It offers an opportunity to promote connections and cooperation among research institutes, international organisations, and the business community, giving deeper understanding of the challenges and potential of emerging technologies, thus promoting cooperation in developing innovative solutions and applications in the fields of communications, defence, environmental protection, and health care.

IEEE CAMA 2024 provides an interdisciplinary forum for sharing experience and discussions about state-of-the-art in the development of antennas and antenna systems with measurements in controlled and non-controlled (in-situ) environments, electromagnetic measurement techniques, scattering and diffraction measurements, near-field and far-field measurements, radar and RCS measurements, simulations and prediction of measurements in realistic configurations for various applications.

The conference will last to October 11./.

Vietnam strives for 7.6-8% economic expansion in Q4: Minister

Minister of Planning and Investment Nguyen Chi Dung on October 7 proposed a 7.6-8% economic expansion in Quarter 4 following positive results in the previous quarter, helping achieve and exceed the full year target of 7% growth.

At the cabinet's regular meeting which was connected online with 63 provinces and centrally-run cities, Dung stressed the proposal was made based on robust growth trends in various economic sectors, with agricultural production maintaining its growth trajectory, meeting demand of domestic consumption and export, the service sector having enjoyed positive expansion over the past months while industrial production continuing rapid recovery, serving as a motive for the economic growth.

With a view to achieving the growth target in Quarter 4, Dung stressed that it is necessary for localities and sectors to recover from Typhoon Yagi soon so as to grasp the consumer trend opportunities during the year-end months and the traditional Tet holiday.

He went on to say that resources must be prioritised to complete policies and regulations, helping to shape up a favourable environment as well as attract large-scale and high-tech investment projects, adding it is a must to foster and renew traditional growth motives in investment, consumption and export. Dung particularly noted measures to promote new growth motives from digital economy, digital transformation and green transition, among others.

Furthermore, Dung laid stress on the necessity to enhance cooperation and organise economic dialogues with comprehensive strategic partners and strategic partners, while continuing to promote the efficiency of the working group mechanism that engages with businesses and investors to lure multinational corporations and strategic investors in the areas of chips, semiconductors and AI.

At the same time, it is important to study rational and feasible policy packages to support enterprises and promote new growth drivers and effectively carry out several strategies and programmes, including those on semiconductor development, semiconductor human resources development, completion of an international finance centre project, and carbon market development, he said.

According to the minister, the economy expanded 7.4% in Q3 and 6.82% in the January-September period, with macroeconomic stability, controlled inflation and ensured major balances while overspending, public debt, Government debt and foreign debt within limits.

As there remain challenges, it is necessary to take drastic measures to remove bottlenecks so as to attain the set targets, Dung stressed./.

HCM City, Spain's Basque Country boost trade cooperation

A trade conference to foster connections between industrial machinery and equipment businesses of Ho Chi Minh City and Spain’s Basque Country was held in the southern largest economic hub of Vietnam on October 8.

Deputy Director of the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC) Ho Thi Quyen said the city has been actively expanding its markets and promoting trade despite global economic uncertainties following the COVID-19 pandemic.

The Basque Country, which is well known for its technological strengths, is emerging as a potential partner of Vietnam. Although new to many Vietnamese businesses, the Basque Country is recognised as one of Europe’s leading innovation hubs thanks to its dynamic economic ecosystem, she said.

HCM City, the country’s largest economic and trade centre, continues to strengthen its regional and global economic position. In the first nine months of 2024, the city-based enterprises' exports reached 33.82 billion USD, a 10.2% increase, while their imports totalled 44.1 billion USD, up 6.4%. The city is focusing on sustainable economic development based on knowledge, technology, and innovation, with a goal of becoming a smart city and a leading city in the digital economy by 2030.

The conference centred on key industries, including oil and gas, energy, mining, agricultural machinery, and railways, providing a platform for businesses from both sides to explore market opportunities and potential partnerships.

Pablo Huidobro, Director of the Basque Trade and Investment Centre in Singapore, highlighted the Basque Country's economic strength, with a population of 2.22 million and one of the highest GDP per capita in Spain. The Basque Country has advantages in industrial production, contributing significantly to Spain’s exports of machinery, steel, and tires. The Basque Country also focuses on sectors such as energy, automation, IT, and biotechnology, as well as high-quality human resources development with many universities and research institutes.

Huidobro noted that Vietnam is viewed as an attractive market for Basque businesses, with companies like Ormazabal, Salto Systems, and Iberdrola already establishing offices in the country. Strengthening trade ties will be a key step in advancing commercial and investment relations between the two sides./.

Australia’s Queensland attaches importance to Vietnamese market

Simon White, President of the Australia-Vietnam Business Council in Queensland, on October 8 said the Australian state places importance on Vietnam – its fifth largest export market, and hopes for stronger cooperation with businesses and localities of the Southeast Asian nation.

At a meeting with Vietnamese Ambassador to Australia Pham Hung Tam, White spoke highly of the upgrade of the bilateral relationship to a comprehensive strategic partnership in March, considering this a foundation for the two sides to enhance their cooperation across spheres.

Australian firms, especially retirement investment funds, view Vietnam as a new, attractive destination, he said, adding Queensland needs skilled workers and wants to promote cooperation opportunities in workforce training.

For his part, Tam appreciated efforts of White and the council’s Queensland branch in promoting trade and investment ties between the two countries, as well as between Vietnamese enterprises and the state.

He suggested the council continue cooperation and step up connectivity between the two sides’ businesses, while supporting delegations of Vietnamese localities to Australia to boost collaboration in such areas as agriculture, construction, and green bonds./.

European firms in Vietnam maintain strong optimism: EuroCham

The European Chamber of Commerce (EuroCham) in Vietnam on October 8 released its 2024 Business Confidence Index (BCI) report for the third quarter of 2024, reflecting a positive trend in business sentiment despite the economic challenges posed by Typhoon Yagi and operation hurdles.

The BCI score saw a notable increase, rising from 45.1 in the third quarter of 2023 to 52.0 in the third quarter of 2024, signalling a strong year-on-year recovery despite tough external conditions.

EuroCham’s latest survey showed that long-term optimism remains high, with 69.3% of of respondents expecting a favourable business climate over the next five years.

This positive outlook is further reinforced by Vietnam’s continued appeal as an investment destination, with 67% of European businesses still recommending the country despite ongoing challenges.

Bruno Jaspaert, Chairman of EuroCham Vietnam, said that despite the recent economic strain caused by Typhoon Yagi, the resilience and adaptability of both the Vietnamese economy and European businesses operating there are evident in this latest survey. These results are not just numbers, they tell a story of Vietnam’s evolving role as a strategic business hub, he added.

Following the new Decree on the mechanism for Direct Power Purchase Agreement (DPPA) issued in July this year, nearly 30% of respondents expect to benefit from renewable energy projects, further solidifying Vietnam’s commitment to a green transition. One in four service providers and companies with 100 or more employees anticipate the DPPA will benefit them moderately or significantly.

Thue Quist Thomasen, CEO of Decision Lab, held that while the survey shows an overall improvement, the challenges highlighted - particularly in digitalisation -underscore the need for concerted efforts to enhance these areas. The adoption of technology will be pivotal for companies to streamline processes and adapt to sustainable standards in the future, he said.

The quarterly BCI, conducted by Decision Lab, serves as a vital tool for understanding the perceptions of European and Europe-related companies and investors in the Vietnamese market.

As in previous quarters, the survey shows that the top three operational obstacles for European businesses are administrative burdens, unclear regulations, and difficulties in obtaining licenses and permits.

Conducted since 2011, the BCI collects feedback from EuroCham Vietnam’s extensive network of 1,400 members across a diverse range of sectors. This survey provides valuable insights into the current business landscape in Vietnam and expectations for its future. BCI is considered as a key indicator of economic activity in the country./.

Self-sufficiency in raw materials critical for garment, footwear

Vietnam needs breakthrough solutions to upgrade the value chains of the garment and footwear industries with the focus on achieving self-sufficiency in raw materials to increase added value and develop sustainably.

The local procurement rate of the footwear industry has increased significantly but there are still numerous challenges towards self-sufficiency, Nguyen Duc Thuan, Chairman of the Vietnam Leather, Footwear and Handbag Association, said.

He cited statistics that the procurement rate increased from 40% 10 years ago to currently 55%. For several products, the rate reached 70-80% for sport shoes and nearly 100% for canvas shoes.

However, the footwear industry remains largely dependent on the imports of raw materials. With competitive prices, convenient transport and diverse types and quality, China is the largest supplier of raw materials, accounting for 35% of the demand, followed by Thailand 11% and Italia 10.3%.

In the domestic market, there are 129 producers of raw materials but only 20 of them can provide high-end raw materials, he pointed out.

Thuan said it is necessary to have breakthrough solutions to upgrade the value chain sustainably.

The focus should be on promoting the development of the raw materials market in terms of scale, quality and transparency, he said, urging the formation of a raw material hub in Binh Duong province to promote the trading and innovations in the footwear and garment industry.

Both industries are mainly manufacturing on order contracts and heavily dependent of imports of materials while import markets are setting high requirements for origin traceability towards enhancing the manufacturers’ responsibility for sustainable development, Thuan said.

In addition, improving the origin transparency is essential for the industries to be able to take advantage of the tariff incentives under free trade agreements (FTAs), especially new-generation ones, urging the need for a raw material trading centre.

According to Truong Van Cam, Deputy Chairman cum general secretary of the Vietnam Textile and Apparel Association (Vinatex), for the garment industry, a material hub should be developed early so that domestic manufacturers can be self-sufficient in raw materials.

Previously, a domestic manufacturer established a raw material hub but had to close it down due to inefficiency. Early this year, Vinatex sent the proposal for the establishment of a raw material hub to the Ministry of Industry and Trade.

Cam pointed out that from international experiences, Government’s support policies are needed to ensure the success of the raw material hub, which will help domestic manufacturers to move higher in the global value chain rather than primarily relying on contract manufacturing.

The hub would also promote the development of the supporting industry for the garment and footwear industries.

Although the export turnover of the garment and footwear industries accounts for a high proportion of the country’s total trade value, the contribution of domestic enterprises remains limited, Phạm Tuan Anh, deputy director of the Ministry of Industry and Trade’s Industry Department, said.

More than 60% of garment and textile export revenue belongs to foreign direct investment (FDI) companies while the number of FDI companies makes up for just 24%. For the footwear industry, FDI companies contribute nearly 80% of the export value while account for just 30% of the total number of firms in the industry.

He said that the garment and footwear industries still focus largely on contract manufacturing and generating low-added value. The heavy dependence on imported raw materials might significantly affect the development of the industries when countries around the world are aiming for Net Zero by 2025 and setting stringent regulations about local procurement rates and origin traceability.

The development of raw materials also become essential for the industries to be able to take advantages of the FTAs, Anh said.

The development of the raw material hub is appropriate, he said, adding that the centre which will be developed from private capitals will be the place where suppliers of raw materials will gather for trading, he said.

The project on establishing the raw material hub is being finalised. The centre is expected to go operational in 2025.

Garment exports reached 32.5 billion USD in the first nine months of this year, up 9.2% over the same period last year, making the target of $44 billion export value in 2024 within reach.

Footwear exports were estimated at more than 20 billion USD in the period and expected to reach 27 billion USD for the full year if the growth rate of 10% was maintained.

Vietnam becomes the third largest footwear producers in the world, after China and India, and ranked second in footwear export./.

Total social investment capital disbursed in nine months up 6.8%: GSO

The total social investment capital disbursed during January – September rose 6.8% to some 2.42 quadrillion VND (97.2 billion USD) on the back of a fall in lending interest rate, robust production growth, and the continuation of tax incentives, according to the General Statistics Office (GSO).

In its report announced on October 6, the office said disbursed capital in the state sector topped 664 trillion VND, inching up 4.1% against the same time last year, while the amounts in non-state and foreign direct investment sectors were over 1.33 quadrillion VND and 415.6 trillion VND, rising 7.1% and 10.7%, respectively.

The state investment has an important role to play in developing key national projects, contributing to promoting economic shifting in localities across the nation, while serving as seed funding to attract other investment sources, it stated.

GSO Director General Nguyen Thi Huong held that amidst global economic challenges, the acceleration of the disbursement of investment capital together with harmonious and effective implementation of such solutions as marcroeconomic stabilisation, good control of inflation, and creation of a sound business environment are among the crucial factors to boost the economic growth in the remainder of the year./.

HCM City affordable housing supply unable to meet huge demand

Demand for 50,000 dwellings remains unmet annually in Ho Chi Minh City, leading to pent-up demand, experts said.

The housing affordability challenges lie in the significant decline in supply across all segments.

This is a combination of legal constraints, developers’ issues, and a turbulent financial market, said Giang Huynh, Director of Research & S22M at Savills Vietnam.

Supply in neighbouring markets such as Binh Duong, Dong Nai and Long An provinces also falls short of demand, she said.

Future supply is also limited, with HCM City seeing more high-end products in the short term and less affordable options, she warned.

Key factors influencing these trends include rising incomes, scarce and expensive land, and slower administrative processes limiting new projects.

Addressing the challenges of housing supply and affordability requires a multifaceted approach.

It is evident that the private and public sectors could not tackle the problem alone and need to collaborate, she said.

The national budget is strained, and rising interest rates would make it difficult to finance affordable housing projects, while the private sector faces rising construction, labour, and finance costs, she said.

Effective collaboration between the private and public sectors is essential, she added.

Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said the development of affordable housing requires reasonable land prices, but that is extremely difficult now.

To create housing for low- and middle-income people, a separate policy is needed to coax real estate businesses into developing affordable housing, he said.

Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors, said the development of affordable housing would help correct the supply-demand imbalance and reduce housing prices across the board.

There should be preferential credit policies designed to increase demand and attract investment in affordable housing, he added./.

US issues preliminary anti-subsidy findings on solar panel imports from Vietnam

The US Department of Commerce (DOC) has issued preliminary anti-subsidy findings in an investigation concerning solar panel imports from Vietnam, announced the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade.

The DOC selected two mandatory respondents – JA Solar Technology Vietnam Co., Ltd and Boviet Solar Technology Co., Ltd. Based on preliminary findings, Vietnamese exporters face four different subsidy rates. Boviet Solar Technology received a de minimis rate of 0.81%, effectively zero, while JA Solar Technology and its affiliates received a rate of 2.85%.

Additionally, four limited companies – GEP New Energy, HT Solar Vietnam, Shengtian New Energy Vina, and Vietnam Green Energy Commercial Services – were assigned a significantly higher rate of 292.61%. This rate was calculated based on available facts due to their non-cooperation with the DOC’s quantity and value questionnaire. Other Vietnamese exporters will face a rate of 2.85%, following JA Solar’s rate.

The DOC determined there was a surge in imports during the investigation. It compared import volumes between two periods last year – January to April and May to August, finding at least a 15% increase.

The investigation began on May 14, 2024, following a request from the American Alliance for Solar Manufacturing Trade Committee. Similar probes have targeted Cambodia, Malaysia, and Thailand, with preliminary subsidy rates for their exporters being 8.25-68.45%, 3.47-123.94%, and 0.14%-34.52%, respectively. Currently, the provisional rates for Vietnamese companies are the lowest among the four countries, a relatively positive outcome.

The DOC is expected to issue a final determination on February 10, 2025.

The trade remedies authority has urged relevant businesses to review the preliminary findings carefully and submit comments as necessary within the specified deadlines. They are also advised to cooperate fully with the US department in potential new allegations and site verification to minimise the risk of higher duties in the final determination./.

Vietnam Airlines, Safran Seats cooperate to provide in-flight connectivity service

National flag carrier Vietnam Airlines has signed a cooperation agreement with France's Safran Seats Group on the supply of aircraft spare parts, rearrangement of aircraft seat configurations and installation of an in-flight internet connection system.

A ceremony to hand over cooperation documents took place in the witness of Party General Secretary and State President To Lam who is on his official visit to France.

This is a new step in the 30-year cooperation between Vietnam Airlines and Safran Seats, affirming the sustainable strategic partnership between the two sides.

Under the agreement, Safran Seats will continue to provide Vietnam Airlines' Airbus A350 and Boeing 787 fleets with spare parts for business class seat maintenance, such as seat belts, footrests, and passenger control units, among others, and will consider offering preferential terms to Vietnam Airlines.

The two sides will also work together to reconfigure the seats on 23 Airbus A321 aircraft, with a new design that includes eight business class seats and 201 economy class seats.

In addition, the French group will provide equipment and technical certifications to integrate the in-flight internet connectivity (IFC) system for 20 A321neo aircraft and 17 Boeing 787 aircraft of Vietnam Airlines./.

Deadline extended for updating national IDs in securities trading

The State Securities Commission of Vietnam (SSC) has recently postponed the deadline for updating national identification numbers for securities investors from October 1 to January 1, 2025.

In a document to securities firms, fund managers, custodian banks and fund certificate distributors, the SSC urged securities firms to promptly reach out to retail investors to verify and update their account information by January 1, 2025.

From January 1, 2025, service providers will resume normal operations for investors who have updated and verified their account information.

Those investors who have not yet collaborated to finalise updates are advised to complete the information standardisation before engaging in transactions.

Earlier, under the SSC directive from July, securities firms were required to halt online transactions for investors without updated national identification numbers starting October 1.

The extension grants investors an additional three months to comply with the account update and verification requirements mandated by the securities market regulatory authority./.

Gov’t set to implement state-funded $1.2b credit package for social housing

The Government is set to implement a state-funded credit package valued at VNĐ30 trillion (US$1.2 billion) aimed at enhancing social housing initiatives and replacing the current package that was deemed ineffective.

Speaking at a meeting late last week, Prime Minister Phạm Minh Chính urged the Ministry of Construction to conduct a ‘comprehensive study’ of the new credit package this month.

The objective of the new package is to provide low-income homebuyers with access to loans for the purchase and rental of social housing.

Distinct from the existing VNĐ120 trillion package, which is exclusively financed through commercial banks, the new credit package will be sourced from State funds.

Half of the proposed funding will be generated through the issuance of Government bonds, while the remaining funds will be allocated from local budgets, according to the PM.

The ministry had previously proposed that the State Bank of Vietnam (SBV) consider a new preferential loan package for social housing buyers, which would feature interest rates 3-5 percentage points lower than those of commercial loans, with terms of 10 to 15 years.

The proposed interest rate is more favourable than the current VNĐ120 trillion preferential credit package, which only offers rates 1.5-3 percentage points lower than standard commercial loan rates.

However, disbursement results have been sluggish, with only around 1 per cent, or VNĐ1.34 trillion, disbursed after one year, according to a report by the ministry.

Experts have cautioned that delays in disbursing the preferential credit package may hinder the timeline for constructing one million social housing units by 2030, including the completion of 428,000 units by 2025.

Currently, the country has achieved 36 per cent of the 2025 target through ongoing and completed projects.

However, both Hà Nội and HCM City have seen insufficient progress, falling short of 40 per cent of their established targets.

For example, Hà Nội is required to construct 18,700 units by 2025, however, only three projects have been initiated (resulting in 1,700 units).

Five projects have been completed in Hà Nội, totaling around 5,200 units, which accounts for nearly 37 per cent of the objective.

More than 500 social housing projects are underway across Việt Nam, with 79 having been completed, resulting in over 40,700 apartments as of mid-July.

Ninh Thuận’s potential to export to Korea acknowledged

The mountainous province of Ninh Thuận has many natural advantages for producing and exporting high quality agricultural products to Korea, experts have said.

According to Trinh Minh Hoàng, deputy chairman of its People’s Committee, the south-central region has a favourable location, with rail, road, airline, and sea routes connecting both domestic and foreign key economic zones.

Ninh Thuận’s weather, soil, sunshine, and wind allow it to make specialty products whose quality is distinctive among that of other provinces, including grape, apple, garlic, aloe vera, and lamb and goat meat.

The province has created 36 large farms for rice, grape, shallot, and other crops adding up to over 5,000ha in size, and issued 35 farming area codes for traceability.

Many farms are also applying modern technologies and adhering to global best practices. Crops are also processed into a wide variety of high-value products such as dried fruits, wine and jam.

Currently it has around 182 products recognised under the One Commune One Product (3 stars and above). These are highly competitive products that Ninh Thuận is focusing on, developing their value chains and exports, and promoting them through tourism.

The province is also building brands for speciality crops, such as the hugely popular Phan Rang garlic.

Ninh Thuận businesses have been investing in modern processing technologies and creating value chains. The province also has strengths in renewable energy, hi-tech agriculture, processing, and the maritime economy.

​Korea is currently Việt Nam’s second largest buyer of fruits and vegetables after China, indicating great potential for produce exports.

In the first half of the year Korea imported over US$164 million worth of fruits and vegetables from Việt Nam, up 55 per cent year-on-year.

Trần Hải Linh, chairman of the Vietnam – Korea Businessmen & Investment Association, said that Korea was one of the few countries to have many bilateral and multilateral free trade agreements with Việt Nam, like the ASEAN – Korea FTA, Việt Nam – Korea FTA, and the Regional Comprehensive Economic Partnership.

Vietnamese goods could access Korea with favourable tariffs, meaning high quality Ninh Thuận products could share the same benefit.

Last week the province worked with the association to organise a trade and export networking conference for 54 businesses and co-operative groups in the south-central region with 38 Korean firms.

At the conference Korean firms connected with local business partners, and spoke highly of Ninh Thuận’s potential, strengths and policies.

Jeon Do Hyun, general director of Osan Logistics Co. Ltd, commended Ninh Thuận’s proactiveness and local businesses’ eagerness to network, and hoped for more similar events for both countries’ businesses to trade with each other.

Linh said the conference provided business to business, business to consumer and business to government meeting opportunities for companies from the two countries.

His association would always help businesses to network and tackle difficulties to facilitate trade and bi-lateral co-operation, he said.

Companies from the two countries signed 18 memorandums of understanding for co-operation related mainly to agricultural produce such as grapes, apples and aloe vera.

Vietnamese bird's nests face difficulties in export to China

Việt Nam's bird's nest exports to China are increasing, but this product faces stiff price competition and is suffering from a lack of clear regulations on the management of swiftlet farming houses.

China's demand for bird nests is increasing, but Việt Nam's exports to this market are still modest.

According to the Việt Nam Bird's Nest Association, China imported 557 tonnes of bird's nests in 2023, an increase of 23.4 per cent compared to 2022.

In the first quarter of 2024, China imported 145 tonnes, equal to nearly 30 per cent of the bird's nest imports for the whole year of 2023. This shows that the demand for bird's nests in China continues to increase.

Meanwhile, the imports from Việt Nam to China in the first quarter of 2024, were only about two tonnes. This volume was low because few Chinese consumers know about Vietnamese products, according to enterprises.

Deputy General Director of the State-owned Khánh Hòa Bird's Nest Co. Ltd. Trịnh Thị Hồng Vân said that Vietnamese bird's nests face stiff competition from products from Indonesia, Thailand and Malaysia, which have long been popular.

Although the quality of Việt Nam's natural bird's nest is better, it must compete with rivals in terms of price. If the price disparity is not fixed, it will be difficult for Việt Nam's bird's nest products to develop in the future.

Chairman of the Việt Nam Bird's Nest Association Lê Thanh Đại said that for many years, Chinese people have been used to bird's nests imported from Malaysia and Indonesia.

For Vietnamese bird's nests, Chinese people almost know only the Khánh Hòa brand, but those nests are harvested on an island, so they are very expensive.

Meanwhile, the bird's nests harvested from houses raising swiftlets are more reasonably priced for ordinary consumers, but that is not widely known among Chinese consumers.

On the other hand, the majority of old bird houses were built with an initial purpose of simply housing, not raising, swiftlets.

The Government's Decree 13/2020/NĐ-CP on detailed guidance on the Law on Animal Husbandry, has allowed the kind of bird raising houses to exist, but they are not permitted to expand production scale for fear of noise pollution.

Many localities are still hesitant to grant operating licences to these houses, thereby limiting verification on origin of raw bird's nests. It is significantly affecting the supply of nests for export processing.

Chairman and General Director of Vietnam Quốc Yến JSC Hồng Đình Khoa said that when a business exports finished bird's nests, the export dossier of this product must include documents proving the origin of raw bird's nests.

To solve those problems, Đại said that relevant ministries such as the Ministry of Agriculture and Rural Development, the Ministry of Natural Resources and Environment and the Ministry of Construction need to review implementation of the existing regulations and process relating to management of the bird raising houses.

In addition, it is necessary to increase trade promotion programmes for Vietnamese bird's nests in the Chinese market, helping people know that there are other Vietnamese bird's nest brands beside Khánh Hòa. Improving the quality of exported bird's nests is also needed.

The association has had a working programme with China's CCTV television channel to promote Vietnamese bird's nest brands to all regions of China, including information about quality, nutrition and notable brands.

With experience in exporting bird's nests to China, Vân said that, besides issues of quality, traceability and food safety standards, enterprises need to know the tastes of the market to produce suitable products.

China is the largest bird's nest market, accounting for 80 per cent of the world's consumption. It is also the world's largest bird's nest importer and those import volumes are increasing.

On November 16, 2022, the Minister of Agriculture and Rural Development officially signed a protocol on official export of bird's nests to China. So far, the General Department of Customs of China has licensed seven Vietnamese enterprises to officially export bird's nest products to this market.

Việt Nam has over 22,000 bird raising houses with the output of about 150 tonnes, worth over US$600 million.

Hà Nội Giftshow 2024 to promote handicrafts

Hanoi Giftshow 2024 will open on Thursday in the capital to offer opportunities for business networking and promote the sustainable consumption and export of handicraft products.

The event features local and foreign companies showcasing their handicraft products across 450-500 stalls and is expected to attract more than 12,000 visitors over four days.

Organised by Hà Nội Department of Industry and Trade annually since 2011, Hanoi Gift Show has become the largest trade fair for the handicraft industry where local and foreign producers, traders and importers gather to seek business cooperation opportunities and expand markets for local handicraft products.

During the event, the local Department of Industry and Trade will organise tours for foreign visitors and importers to visit some handicraft villages in the capital city.

Besides, the department also provides instructions to local producers to sell on e-commerce platforms.

Since it began in 2011, Hanoi Giftshow has attracted the participation of 2,450 enterprises from more than 30 countries and over 130,000 visitors, including 8,500 international visitors and importers.

Việt Nam’s handicraft export is estimated at around more than US$3 billion per year. 

Deputy PM receives Sumitomo Corporation leader

Deputy Prime Minister Trần Hồng Hà hosted a reception in Hà Nội on Tuesday for President and CEO of Japan’s Sumitomo Corporation Shingo Ueno, during which he affirmed that Việt Nam always welcomes and highly values Japanese businesses’ operations in the country, contributing to realising cooperation agreements between Việt Nam and Japan.

Deputy PM Hà underlined that the growing comprehensive strategic partnership between Việt Nam and Japan is the foundation for the fruitful bilateral economic cooperation.

Việt Nam and Japan have paid special attention to implementation of international commitments and agreements on greenhouse gas emission reduction and global green transition, including the Japanese Government's initiative on an Asia Zero Emission Community (AZEC), the Deputy PM noted.

Praising the business results of Sumitomo in Việt Nam across different areas, Ha said he hopes the firm and Vietnamese localities will continue to promote new cooperation projects in the coming time, including the north Hà Nội smart city, and the west Thanh Hoá industrial park.

The official reminded that Sumitomo’s projects must be adaptable to climate change and resilient to natural disasters, contributing to ensuring their sustainability and effectiveness. He expressed his hope that Sumitomo will share with Việt Nam Japanese experience in responding to climate change, preventing floods and landslides.

Ha also listened to Sumitomo’s proposals to invest in the Vân Phong No.2 LNG-fuelled power plant as well as ideas on solutions to difficulties of HCM Minh City’s Metro Line No.1 (Bến Thành - Suối Tiên).

For his part, Ueno expressed his deep sympathy to the Government and people of Việt Nam over losses caused by Typhoon Yagi.

He briefed the Vietnamese Deputy PM on the progress of the firm’s projects in Việt Nam in the fields of manufacturing industry, energy, industrial park investment, smart city construction, and urban railway.

With the support of the Vietnamese Government, Sumitomo has invested in four industrial parks in Việt Nam, generating jobs to about 90,000 labourers, putting Vân Phong No.1 thermal power plant into operations, he said, adding that the company is speeding up the construction of the Metro Line No.1.

The corporation is preparing for the implementation of the north Hà Nội smart city, and the west Thanh Hoá industrial park, while proposing investment for the Vân Phong No.2 LNG-fuelled power plant, he said. 

Việt Nam boosts international cooperation for sustainable development

Deputy Prime Minister Hồ Đức Phớc attended the first Hamburg Sustainability Conference (HSC) and held bilateral working sessions in Germany from October 7-8.

The Deputy PM had meetings with senior officials of Germany, representatives of the Climate Investment Funds (CIF), the Green Climate Fund (GCF), and the German Asia-Pacific Business Association (OAV) to discuss key issues concerning climate change response, energy transition, and investment attraction.

Meeting with Federal Minister for Economic Cooperation and Development Svenja Schulze, Phớc affirmed that Việt Nam always attached importance to developing its strategic partnership with Germany.

The Việt Nam visits by German Chancellor Olaf Scholz in November 2022 and President Frank-Walter Steinmeier in January 2024 created new momentum for the bilateral relations, particularly in the pillars of trade and investment, helping Germany maintain its position as Việt Nam's leading trade partner in Europe, he said.

Phớc suggested the German side continue its official development assistance (ODA) to Việt Nam in climate change response, particularly in the Mekong Delta, and assist the Southeast Asian country in accessing funding for the Just Energy Transition Partnership (JETP).

Schulze appreciated Việt Nam's proactive and active participation at the HSC, noting the country is highly aware of the current global challenges to sustainable development and it has joined international efforts in combating climate change and seeking solutions to accelerate the realisation of the sustainable development goals (SDGs).

Cooperation with Việt Nam is of great importance to Germany, particularly in implementing projects within the framework of the JETP and bilateral cooperation, she stated.

In the meeting with Phớc, the CIF’s and GCF’s representatives acknowledged and highly valued the Vietnamese Government's climate commitments and efforts, affirming their support to the country in accessing financial resources.

Meanwhile, Phớc reaffirmed Việt Nam's commitment to achieving net-zero emissions by 2050 and called for financial assistance to realise the SDGs. He took the occasion to invite the funds' representatives to the 4th Partnering for Green Growth and the Global Goals 2030 (P4G) Summit in Hà Nội in 2025.

Meeting with OAV representatives, Phớc urged businesses from the two countries to optimise the EU–Việt Nam Free Trade Agreement (EVFTA) to boost trade and investment ties, and suggested the parties consider expanding cooperation areas that align with their complementary strengths and demands.

"Việt Nam is committed to creating the most favourable conditions for European businesses to operate in the country," he stressed, calling on German companies to increase investment in the country in the areas of manufacturing, basic infrastructure, renewable energy, semiconductors, automation, artificial intelligence, and green hydrogen production.

German corporations and businesses applauded Việt Nam's socio-economic achievements and comprehensive international integration in recent years, as well as its commitment to pursuing efficient and sustainable economic development goals, reducing emissions, and protecting the environment. They also showed interest in the Vietnamese market.

Gathering approximately 1,600 delegates from 102 countries, the HSC focused on seeking solutions to challenges during the implementation of the SDGs. 

VNA/VNN/VNS/VOV