Foreign investment has proven itself as a dynamic economic sector, with significant contributions to the growth of the national economy as well as its integration into the world, heard a recent Hanoi workshop.

The September 7 event was jointly held by the Ministry of Science and Technology (MoST) and the Ministry of Planning and Investment to mark 35 years of Vietnam’s foreign investment attraction.

Deputy Minister of Planning and Investment Tran Duy Dong highlighted foreign investment’s positive impacts on the reform of economic institutions and the improvement of the domestic business environment, the State apparatus, and Vietnam’s reputation and position in the international arena.  

The official cited statistics as showing that Vietnam has so far counted 38,084 valid foreign-invested projects with a total registered capital of 453.26 billion USD, of which nearly 287.1 billion USD has been disbursed.

In the first eight months of this year, the country attracted 1,924 new projects, while 830 others registered to adjust their investment capital, and 22,268 transactions of capital contribution for share purchases were recorded in the period with a combined value of nearly 18.15 billion USD.

 

The official noted a string of policies adopted by the Party and the State to boost foreign direct investment (FDI) and improve its efficiency.

Vietnam has regarded science-technology and innovation as one of the most important strategic breakthroughs, Dong said, pointing to positive outcomes the country has recorded in luring foreign investment in this regard, with the presence of such tech giants as Intel and Samsung.

However, limitations still remain in technology transfer, said Dang Dinh Tung, deputy head of the MoST’s Department of Technology Appraisal, Examination and Assessment, elaborating that although there were 400 technology transfer agreements by FDI firms recorded in Vietnam between July 2018 and the end of 2022, they were only in the parent-subsidiary relationship, with no effects on others.

According to the MoST, among the more than 100 multi-national groups investing in the Southeast Asian nation, only Samsung and LG of the Republic of Korea (RoK) have built their research and development (R&D) centres in Hanoi.

Dong stressed that the competition pressure from FDI firms has prompted domestic businesses to raise their productivity and revamp technology, thus better adapting to the globalisation.  

However, Vietnamese enterprises have not been able to absorb technologies from FDI firms yet, he said, proposing policies and mechanisms to link domestic and foreign enterprises, covering support industry development, and connectivity in product supply chains.

At the same time, domestic businesses need to proactively seek technology transfer channels, he said.

Over 12 million tourists flock to Quang Ninh in eight months

Quang Ninh welcomed 12.06 million tourist arrivals in the first eight months of 2023, rising 1.47-fold from a year earlier, said the People’s Committee of the northern province.

The tourist number includes 875,000 international arrivals. Meanwhile, earnings from tourism approximated 24 trillion VND (997.3 million USD), up 1.6-fold from the same period last year, statistics show.

The province expects about 4.13 million visitors and 9.8 trillion VND in tourism revenue in the third quarter to raise the nine-month figures to nearly 13 million and 26.46 trillion VND.

During the National Day holiday from September 1 to 4, it attracted 380,000 tourist arrivals, including 24,500 foreigners, surging four-fold year on year, the provincial People’s Committee noted.

It went on to say that in the time ahead, it will continue tapping into local cultural values to serve tourism development while capitalising on marine and ecological tourism advantages, including Ha Long Bay – a world natural heritage site – and Bai Tu Long Bay.

Quang Ninh will also make better preparations to welcome international visitors and seek new sources of foreign tourists aside from maintaining traditional sources. One new tourism stream could potentially be developed by working with Muslim countries, among many others.

The provincial Tourism Department said Quang Ninh began the professional reception of Muslim tourists in line with the Muslim culture in late August. The department is planning to hold a workshop in mid-September to discuss the exploration of Muslim tourist markets and improvement of services for Muslim visitors.

If the number of Muslim tourists increases, the authority will encourage local hotels to align their infrastructure with the unique needs of these visitors, it added.

In addition, more events will be organised in the remaining months to attract visitors to Quang Ninh, it went on, saying that the province will unceasingly develop better service quality by increasing management of the tourism environment, ensuring security and safety for holidaymakers, examining the compliance with relevant regulations, and stringently dealing with law violations.

In its newly-approved plan on tourism recovery and sustainable development to 2025 with orientations to 2030, Quang Ninh aims to turn tourism into a spearhead and sustainable economic sector and attract at least 25.5 - 26 million visitors, including about 8.6 - 9 million foreigners, by 2030.

It targets between 16 million and 17.5 million tourist arrivals by 2024 and 2025, including at least 3 to 4.5 million international guests, respectively.

By 2030, the province will have established itself as a tourism hub connecting with the region and the world and also a leading tourist destination of Vietnam, with an annual tourist growth rate averaging 10 - 11% during 2025 - 2030.

The tourism sector is hoped to gradually increase its contribution to the province's gross regional domestic product (GRDP), to a share of 10 - 11% by 2024, 11 - 12% by 2025, and 15% by 2030.

Endowed with natural advantages for marine tourism, Quang Ninh boasts a coastline of over 250 kilometres and more than 2,000 islands of various sizes that account for two-thirds of the total island count in Vietnam.

In particular, Ha Long Bay, literally “the bay of descending dragons”, is recognised as a world natural heritage site by UNESCO twice, in 1994 for its globally outstanding aesthetic merit and in 2000 for its geological - geomorphological value.

Deputy Prime Minister hails development of Vietnam-Japan relations

The extensive strategic partnership between Vietnam and Japan is developing strongly, comprehensively and substantially with high political trust, Deputy Prime Minister Le Minh Khai said when receiving Muraoka Tsugumasa, Governor of Japan’s Yamaguchi prefecture, in Hanoi on September 7.

During the reception, the Deputy PM emphasised the significance of the Japanese Governor's visit to Vietnam as the two countries are celebrating the 50th anniversary of the establishment of their diplomatic relation this September. 

He stressed that Japan is Vietnam's leading economic partner, the biggest Official Development Assistance (ODA) provider, the second biggest partner in labour, the third biggest partner in investment and tourism, and the fourth largest partner in commerce.

In recent years, localities of the two countries have also actively promoted exchanges and cooperation activities. By now, about 90 pairs of localities have established ties.

Notably, the over 430,000-strong Vietnamese community is the second largest expat community in Japan, which makes a practical contribution to its socio-economic development.

The Deputy PM also highly appreciated the cooperation between Vietnam and Yamaguchi prefecture. He thanked Governor Muraoka for his support of the cooperative relationship, especially cooperation with Vietnam’s Binh Duong province. 

Governor Muraoka said that since Binh Duong province and Yamaguchi prefecture signed an MoU on cooperation in 2014, their cultural, educational and economic cooperation has been generating positive results.

According to the Governor, the late Prime Minister Abe Shinzo is the person who elevated the relationship between Vietnam and Japan to an extensive strategic partnership for peace and prosperity in Asia. Since Vietnam shifted to a market economy, the economic relationship between the two countries has increasingly developed.

He said in the context of the world economic slowdown, Vietnam’s positive growth made a significant contribution to the global economy.

The Japanese official said that Yamaguchi prefecture wishes to expand investment abroad, especially those from small and medium enterprises into Vietnam.

He asked for support from the Government of Vietnam in this regard, noting that in June, the prefecture held a seminar with more than 100 local enterprises to introduce investment opportunities in Vietnam. It will soon organise at trip to Vietnam for Japanese businesses to seek investment opportunities.

HCM City Economic Forum 2023 eyes green growth

Activities that are a part of this year’s Ho Chi Minh City Economic Forum, to be held from September 13-17, will focus on green growth, with the aim to collect experience and feasible solutions to be applied in the city, heard a press conference on the forum on September 7.

Vo Van Hoan, Vice Chairman of the municipal People's Committee, said that selecting the theme “Green Growth - Towards Net Zero” for this year’s forum is consistent with the city's orientation in implementing the Government's goal as committed at the 26th UN Climate Change Conference (COP 26).

The forum, the fourth of its kind, will see the attendance of leaders of the Government, ministries and agencies.

The event will bring together more than 1,000 delegates from international financial institutions like the World Bank (WB), the International Monetary Fund (IMF), the International Finance Corporation (IFC) and the Asian Development Bank (ADB), and international organisations, along with managers and leaders of localities of 21 countries, representatives from diplomatic and consular agencies, and domestic and foreign enterprises, and experts.

The forum is expected to provide insight into the global situation and the trend of green growth towards sustainable development, especially lessons and proposals applicable to HCM City.

Apart from workshops prior to the forum, there will be discussions during the event, sidelines meetings, exhibitions and dialogues with domestic and foreign experts.

Hosted by the municipal People’s Committee, the event, first held in 2018, is intended to acquire opinions of experts on issues regarding the city’s socio-economic development, as well as its key projects, targets and programmes.

HCM City to host Vietnam International Sourcing 2023 in September

Vietnam International Sourcing 2023 with a series of events will take place in Ho Chi Minh City from September 13-15, aiming to support domestic firms to engage more deeply into global production and supply chains, heard a press conference in Hanoi on September 7.

According to the Ministry of Industry and Trade (MoIT), the organizer of the event, many foreign supermarkets, distributors and retailers are making their shopping list for products from Vietnamese suppliers at the event, which is expected to connect foreign importers and domestic manufacturers and exporters.

Speaking at the event, Ta Hoang Linh, Director of the European-American Market Department under the MoIT said Vietnam International Sourcing 2023 will include an export forum, workshops, trade exchange programmes, and the Vietnam International Sourcing Expo 2023, which expects the participation of 300 businesses from different areas in the international supply chain.

This year, the event expects to welcome 8,000 visitors and 150 delegations from 30 countries and territories. It has received the greatest-ever interest from leading global companies.

Vietnam International Sourcing 2023 is a reputable event that draws leading firms in various fields, including food, garment and textile, footwear, handbag, sportswear, home appliances, furniture, and supporting industries.

Do Quoc Hung, Deputy Director of the MoIT’s Asia-Africa Market Department, said that over the past time the department has worked closely with the European-American Market Department and Ho Chi Minh City to invite enterprises and distributors in Asian and African regions to participate in the event. The foreign enterprises have shown interests in Vietnamese goods such as agricultural, processed food, and forestry products, among others.

Vietnamese goods see room for growth in Canadian market

Vietnamese and Canadian businesses have expressed their interest in establishing large supermarket chains in Canada to further promote bilateral trade and maximise the benefits of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The common interest was spotted at the recent Vietnam – Canada business forum.

Last year, two-way trade turnover exceeded 10 billion USD, helping Vietnam to become Canada's largest trading partner in ASEAN. The Vietnamese community in Canada now amounts to 300,000, predominantly residing and working in major cities such as Ottawa, Toronto, Montreal and Vancouver. Vietnamese consumer goods, especially vegetables, food, and fruits, have started to appear in the market through Asian supermarket chains.

Trade Counselor Tran Thu Quynh at the Vietnamese Embassy noted that Vietnamese businesses face challenges in ensuring a stable supply and quality when entering Canada’s distribution system.

Vietnamese products currently consumed in Canadian supermarkets are primarily dried goods, frozen seafood, and vegetables. In the category of herbs and spices such as chili, herbs, and lemongrass, Vietnam faces limited competition.

At the Ocean supermarket chain in Toronto, Vietnamese processed food, dried goods, seafood, vegetables and fruits account for approximately 40% of the total items on sale. This chain has the highest number of Vietnamese goods among Asian supermarket chains in Canada's East Coast region.

Canada, with its harsh climate characterised by prolonged and cold winter, relies heavily on importing vegetables and fruits from abroad. The market has an estimated value of nearly 4 billion USD, with Vietnam's export value of such items to Canada representing only a very small portion, around 4.8 million USD.

Seminar discusses ways to boost farm produce exports to EU

Taking full advantage of incentives for farm produce from the EU-Vietnam Free Trade Agreement (EVFTA) in the new context was the theme of a seminar held in both in-person and online formats by the Ministry of Industry and Trade (MoIT) in Hanoi on September 8.

Speaking at the event, Dinh Sy Minh Lang from the MoIT’s Department of European-American Markets said statistics from the General Department of Vietnam Customs and surveys conducted by the Vietnam Chamber of Commerce and Industry (VCCI) showed that the rate of businesses that have a relatively good or clear understanding of the EVFTA is significantly higher than other FTAs.

Nearly 41% of firms reported reaping specific benefits from the EVFTA, a notable increase from around 25% in 2020. In addition, Vietnam's exports to the EU have shown consistent growth, with 14.2% and 16.7 increases in 2021 and 2022, respectively.

Last year, Vietnam's exports to the EU reached 46.8 billion USD, resulting in a trade surplus of 31.4 billion USD. From the beginning of this year until July 31, Vietnam earned 25 billion USD from exports to the bloc.

Lang said the Vietnamese agricultural products entering the EU have not achieved the expected growth due to challenges posed by non-tariff measures such as Sanitary and Phytosanitary (SPS) regulations and Technical Barriers to Trade (TBT) when exporting to the EU.

Most recently, the European Parliament (EP) has passed a new law banning the import of goods believed to be linked to deforestation activities in an effort to promote global climate change mitigation efforts.

Accordingly, the new law will apply to products like coffee, cocoa, soybeans, sawn wood, palm oil, livestock meat, rubber, and derivatives from various countries around the world. Additionally, any products in these categories found to be associated with deforestation will also be prohibited from entering the EU.

At the seminar, delegates discussed issues regarding business environment risks in the European market and provided guidance on complying with international standards to improve internal processes to meet export requirements.

Vietnamese products shine at Maison & Objet - Paris 2023

Products from nearly 30 Vietnamese exhibitors are drawing visitors at the Maison & Objet - Paris 2023, a reputable international fair about lifestyle, interior design, home decoration underway in Paris from September 7-11.

On an area of 250 square meters, they introduce unique traditional interior decoration items to visitors, from handmade bamboo and rattan products to large sets of tables and chairs bearing a modern style, and even creatively designed bedside lamps or soft, flexible wooden storage boxes, among others.

Nguyen Dac Boi Quynh from the French Chamber of Commerce and Industry in Vietnam said it is the first time the Vietnamese firms have joined such a large-scale trade fair, helping the Vietnamese business community raise a stronger and clearer voice among international buyers.

Vietnamese Ambassador to France Dinh Toan Thang wished that the Vietnamese enterprises would continue with similar activities to introduce Vietnamese products to friends in France, Europe, and the world, showcasing the growth of Vietnam's economy as well as various industries and sectors.

Founded in 1995, the trade fair is held twice a year, in January and September.

State budget collection down 8.8% in eight months

The total State budget collection in the first eight months of this year was estimated at over 1,124 trillion VND (46.83 billion USD), or 69.45% of the estimate, down 8.8% year-on-year, according to the Ministry of Finance (MoF).

Of which, the central budget revenue reached roughly 72.8% of the estimate while local budget revenue was about 65.5%.

It is estimated that out of 63 localities, 27 achieved over 68% of their domestic revenue collection targets during the period. Nine localities experienced revenue growth and 54 others saw lower revenue year-on-year.

The total State expenditure hit more than 1,081 trillion VND (45 billion USD), equivalent to 52.1% of the estimate, marking an increase of 13% over the same period last year.

Minister of Finance Ho Duc Phoc asked units in the sector to focus on measures to fulfill the financial and budget tasks as set out./.

German-invested hi-tech film factory inaugurated in Binh Dinh

Kurz Vietnam Co. Ltd. on September 8 inaugurated a hi-tech coating and thin film factory at Becamex Vietnam-Singapore Industrial Park (VSIP) in the south central province of Binh Dinh.

The factory covers an area of 12 ha and has an investment of 40 million USD. It is the first hi-tech foreign-invested project in Binh Dinh, which is expected to help the province attract more investors to the VSIP.

The factory has capacity of up to 15 million sq.m of products per year in its first phase including mainly LUXOR and ALUFIN films.

Speaking at the inauguration ceremony, Vice Chairman of the provincial People’s Committee Nguyen Tuan Thanh asked the provincial Industrial Parks Management Board to regularly coordinate with agencies to support the investor to solve difficulties during the operation of the factory.

Becamex Binh Dinh Joint Stock Company was asked to accelerate the construction to complete the technical and social infrastructure system of the industrial park.

Kurz Vietnam initially produced hot stamping foil products which are used in the process of heat pressing onto the plastic surface to create layers of decorative patterns.

On this occasion, Kurz Vietnam gave 800 million VND (over 33,100 USD) and 500 million USD to the scholarship fund of Quy Nhon University and Van Canh district, respectively.

Vietjet offers tickets for domestic, int'l routes from only 0 VND

Vietjet is offering millions of domestic and international tickets priced at from only 0 VND (excluding taxes, fees) during its super sale on double day September 9.

From 00:00 to 23:59 on September 9, passengers have opportunities to hunt 0 VND tickets on all routes throughout Vietnam and internationally to Australia, India, Kazakhstan, Japan, the Republic of Korea (RoK), Taiwan (China), Hong Kong (China), and the Southeast Asia region 

Passengers can book tickets on the airline’s website at www.vietjetair.com or on Vietjet Air mobile app, for flight times from September 18, 2023 to March 31, 2024.

Constantly expanding its global flight network, Vietjet offers countless flight options for the holidays this year including newly opened routes from Ho Chi Minh City to Jakarta (Indonesia), Kochi, Tiruchirappalli (India), and leading entertainment destinations in the region of Japan, the RoK, Taiwan and Hong Kong (China), Singapore, and Thailand.

Vietnam remains attractive to foreign businesses: HSBC

Vietnam remains an attractive destination for foreign businesses and customers throughout the HSBC network have continued to show very strong interest in the Vietnam story, the Hongkong and Shanghai Banking Corporation Limited (HSBC) said in its recent survey.

HSBC commissioned the online survey of 3,509 businesses based in nine markets - China, India, the UK, France, Germany, the US, Australia, Hong Kong (China), and GCC countries (United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Oman and Kuwait).

According to the HSBC Global Connections survey, Vietnam which has become known for its rapid economic growth also stands out as one of the top performers in the ASEAN region given its strong economic resilience during and after the COVID-19 pandemic.

This resilience coupled with its hard working skilled work force and competitive cost structures continues to attract strong FDI flows into the country.

The country's fast growing middle class is also a real opportunity for international companies who are looking to tap into the consumer story that will see Vietnam become the 10th largest consumer market in the world by 2030, said Tim Evans, CEO of HSBC Vietnam.

Several international businesses see Vietnam’s growing consumer market as an opportunity, with 27% highlighting the appeal of increasing consumer prosperity.

Business decision makers from Chinese and Indian companies were likely to highlight the opportunity to scale quickly in its sizeable market, with 32% and 41%, respectively, pointing to this market attribute.

Indian businesses also point to the opportunity to develop and test new products and solutions, with 45% of them saying this attracted them to expand there. About a quarter of all business also see advantages in Vietnam’s demographics and young population.

Vietnam has a high smartphone penetration rate and a vibrant start-up sector, and the growth of e-commerce is a key selling point for many international businesses: 23% say they are attracted by the country’s growing digital economy.

Three in 10 respondents believe the Vietnamese economy will see significantly increased economic growth during the next 10 years due to technological change.

Vietnam’s importance in global trade flows is reflected in strong interest in free trade agreements. Overall, 63% of companies in the survey intend to make use of the EU-Vietnam Trade Agreement, which entered into force in August 2020 with the goal of eliminating 99% of tariffs and reducing trade frictions between the two partners.

However, cultural differences and regulatory developments are the top challenges for foreign firms operating in Vietnam, with 31% of foreign companies pointing to cultural difficulties, and 30% to the challenge of adapting to fast-changing regulations and policies within the market.

Australian companies were especially likely to say they had dealt with cultural issues, with 40% saying they had faced these in Vietnam. US and Hong Kong firms both stated the challenge of adapting to regulation as their primary challenges, with 32% and 34% of companies respectively reporting this.

Southeast Asia’s first Bayer ForwardFarm launched in Vietnam

Bayer Vietnam in coordination with the National Agricultural Extension Center (NAEC) under the Ministry of Agriculture and Rural Development (MARD) has inaugurated the first ForwardFarm in Southeast Asia located in Thoi Lai district, Can Tho city.

ForwardFarm Can Tho brings together farmers, technology partners, scientists and academia, value chain partners, as well as consumers, to exchange agricultural know-how and form partnerships to promote modern and climate-smart sustainable agriculture through first-hand experience.

In collaboration with farmers and other partners, the Bayer ForwardFarming initiative enables knowledge sharing about modern and sustainable agriculture through first-hand experiences on independent farms worldwide.

Following the overarching concept, the ForwardFarming initiative will support sustainability in agriculture across three areas: caring for crops with tailored solutions for farmers via the Much More Rice integrated program, caring for the planet and people with proactive stewardship to protect health, safety, and environment responsibly, and caring for partnerships with value chain partners to bring holistic solutions to farmers.

The three-year program aims to improve farmers' incomes, ensure food security, and preserve natural resources and the environment. There are additional goals of enhancing practices to reduce water use and greenhouse gas emissions, and adapting to climate change. This complements MARD’s vision to sustainably develop one million hectares of high-quality rice for export and promote green growth in the Mekong Delta rice cultivation area.

The establishment of the ForwardFarm Can Tho is the result of a Memorandum of Understanding signed between Bayer Vietnam and the NAEC in August 2022 to collaborate, transform rice cultivation in Vietnam by improving productivity and quality for exports, and promote sustainable agricultural development, including climate mitigation.

Bayer has currently a network of 26 ForwardFarms in 13 countries around the globe and Vietnam is the 14th country and the first in Southeast Asia.

Kien Giang province attracts 6.83 million tourists in eight months

The Mekong Delta province of Kien Giang attracted 6.83 million visitors in the first eight months of this year, accounting for 82.3% of the total the province expected for the whole year.

The number of foreign visitors to the province during the period topped 468,300 or 33.8% higher than the plan.

The province posted a tourism revenue of over 13.6 trillion VND, 4.6% higher than the plan.

Those figures were released at a tourism promotion event that the provincial Tourism Department and Kien Giang Investment, Trade, and Tourism Promotion Centre organised in Ho Chi Minh City on September 8.

Speaking at the event, Quang Xuan Lua, Director of the centre, said that the locality wants to introduce tourism products and potentials to the Ho Chi Minh City market and other domestic and foreign partners.

Kien Giang is famous for beautiful landscapes and historical sites including Phu Quoc - Vietnam’s largest island, five archipelagos of Hai Tac, Ba Lua, An Thoi, Nam Du, and Tho Chu, plus more than 100 islands which have attracted more and more tourists in recent times.

The locality now has 940 accommodation establishments, and more than 33,000 rooms in operation.

Vietnam-Japan Investment Forum held in Kanagawa prefecture

A Vietnam-Japan Investment Forum was held in Yokohama city of Japan's Kanagawa prefecture on September 8 as part of activities to celebrate the 50th anniversary of bilateral diplomatic relations.

Jointly held by the Vietnamese Embassy in Japan and the administrations of Vietnam's northern Ha Nam and Bac Ninh provinces, the event aimed to promote Japanese investment in the Southeast Asian country in the future.

Opening the event, Ambassador Pham Quang Hieu underlined that Japan is a leading economic partner and largest ODA provider of Vietnam. The country is also the second labour partner, the third biggest tourist market and fourth largest trading partner of Vietnam.

Investors from Japan in general and Kanagawa in particular have played an important part in Vietnam's foreign direct investment attraction process over the past 35 years, he noted.

Nguyen Anh Chuc, Standing Vice Chairman of the Ha Nam People's Committee, highlighted the potential of the province in the fields of processing industry, information technology, automobile manufacturing, agricultural machinery and equipment, electric and electronic equipment, tourism and services.

He also underlined measures that the locality is applying to lure more foreign investment, including developing infrastructure system, and providing support to investors in human resources, and holding dialogues with them to settle obstacles facing them.

Meanwhile, Le Thi Thu Huyen, Vice Director of the Management Board of Bac Ninh Industrial Parks, said that Bac Ninh has been one of the 10 leading localities across the country in terms of FDI attraction.

As of 2022, Bac Ninh had lured nearly 2,000 FDI projects worth 24.4 billion USD, she said, adding that 70% of the projects are in the fields of processing and manufacturing industries.

So far, the province is home to more than 100 Japanese-invested projects with total capital of 1.67 billion USD, making Japan the third largest out of 39 countries and territories investing in Bac Ninh.

Huyen also introduced a number of incentives that Bac Ninh has offered to foreign investors, including a 10% tax cut in 15 years and exemption of corporate income tax in four years as well as a 50% cut in the following nine years.

Meanwhile, Kanagawa Governor Kuroiwa Yuji said that the forum was a good chance for local firms to update Vietnam's investment environment and make their plans to invest in the country in the future.

He hoped more Kanagawa businesses will choose Vietnam as their investment destination, thus making contributions to the cooperation between the two countries.

The forum was the first of a series of events within the framework of the Vietnam Days in Kanagawa in 2023 from September 8-10.

Vietnamese firms urged to join Automotive World China 2023

The Automotive World China 2023, slated to be held October 11-13 in Chinese Shenzhen City, would provide Vietnamese businesses with opportunities to discover innovative applications, accelerate smart automation upgrading in auto manufacturing, optimise the supply chain and build new energy vehicle (NEV) and intelligent connected vehicle (ICV) products in the fast-evolving market. 

Phan Quang Vinh, Marketing Manager of RX Tradex Vietnam delivered this message during a press conference in the capital city on Thursday.

Co-hosted by the Shenzhen Government and Reed Exhibitions China, the upcoming exhibition would focus on technologies and solutions for NEV, ICV and automotive engineering, Vinh said.

Covering 160,000sq.m at Shenzhen World Exhibition and Convention Centre, the mega event would host 3,000 exhibitors, of which 900 global brands would bring a number of product launches. 

Up to 2,000 match-making sessions, over 50 conferences and factory visits would be held on the sideline of the event, he added. 

China is the largest automotive manufacturing country and automotive market for 14 consecutive years. It is also the world's largest new energy vehicle manufacturing country and new energy vehicle market for eight consecutive years. 

In the first quarter of 2023, China became the world's largest auto exporting country. 

HCM City seeks to become locomotive driving VN’s digital economy

HCM City is intensively promoting the development of its digital economy so that it can account for 20 per cent and 40 per cent of its economy by 2025 and 2030 as targeted.

Lâm Đình Thắng, director of the Department of Information and Communications, told a seminar on promoting the digital economy on September 7 that the Politburo’s resolution last year on the city’s development by 2030 envisages it becoming a locomotive for the nation’s digital economy and society.

The digital economy made up an estimated 18.66 per cent of the city’s economy last year, up from 15.38 per cent in 2021, he said.

The city has made great efforts to promote the online economy, but faces three major challenges, he said.

Many sectors and even management agencies do not have enough awareness about the digital economy, the methods and tools used to measure the digital economy are not the same at relevant agencies and organisations and there is a lack of policies and resources to support small and medium-sized enterprises, he said.

Assoc Prof Dr Trần Minh Tuấn, director of the Department of Digital Economy and Digital Society at the Ministry of Information and Communications, said: “Over the past 30 years HCM City has developed very well in the old space but has reached its limit and needs a new development space. The digital economy will bring that new space to the city.

“To grow faster, the city needs a new production technology like digital technology, a new production resource like digital human resource, a new production factor like digital data, and a new driving force like digital innovation.”

He said the digital economy has gradually become a strong driving force for the city’s steady and sustainable growth based on four pillars: ICT industry, digital transformation of industries, digital governance, and data valuation.

Going forward, he said manufacturing, textiles, logistics, agriculture, and tourism need to focus on the digital economy.

To develop the digital economy, the city needs to quickly move some aspects of its economy online and universalise Vietnamese artificial intelligence (AI) applications, he added.

Phạm Bình An, deputy director of the HCM City Institute for Development Studies, said though in the early stages of development the city’s digital economy has some outstanding results, especially in e-commerce, e-payment and online travel.

To promote its development, the city needs to develop digital infrastructure and platforms and exploit data, he said.

The National Assembly’s Resolution 98 allows the city to experiment with mechanisms and policies that would foster digital and green economy development, and it should take advantage of that, he added.

Delegates at the seminar said the city needs to focus on human resources to serve its digital economic development.

It also needs policies that encourage businesses to embrace digital technology since that rate is still low, they added.

Đào Bá Khương, general director of Royal Sachi JSC, said businesses, regardless of their size, need to apply information technology if they want to go far.

The human resource factor also plays an important role along with Government policies and enterprises’ use of them, he added. 

Digital transformation will drive tourism development: Deputy PM

Digital transformation will be the driving force in achieving a breakthrough in tourism and making that industry green, Deputy Prime Minister Trần Hồng Hà has said.

Speaking at a forum titled “Digital Transformation in Tourism Development” on Thursday, he said green transformation and the trend of rapid economic and social digitisation in many countries has become the key driving force in restructuring the economic growth model and changing the competition model globally.

The national strategy for developing the digital economy and society until 2025 sets out a number of key tasks for the tourism industry such as building a digital data platform for cultural heritages, landscapes, tourist attractions and services, and a museum network; providing training in smart tourism; and achieving digital transformation of tourism at undergraduate and postgraduate training institutions, he said.

The development of digital infrastructure and applications such as internet of things, artificial intelligence, virtual reality, interactive virtual reality, cloud computing, and big data analytics to transform and adapt to new trends and public investment would be among the focuses of digital transformation in tourism, he added.

Minister of Culture, Sports and Tourism Nguyễn Văn Hùng said the tourism industry was implementing Government Resolution No 82/NQ-CP to accelerate its recovery.

The May resolution identified digital transformation as a core mission to promote the recovery and enhance the competitiveness of the tourism industry, he said.

"Technological advancements have reshaped the behaviours of travellers from merely seeking information, booking services and experiencing destinations to sharing emotions and memories, much of which now happens in the digital environment," he said.

Tourism management and businesses should leverage digital technologies to enhance their competitiveness, he added.
 The opening of the 17th International Travel Expo HCM City that opened on Thursday. VNS Photo Thu Hằng
  Cambodia’s Minister of Tourism Sok Soken, who was in attendance, said following COVID-19, along with immediate shifts in global travel trends and multi-dimensional developments brought by the fourth industrial revolution, digital technologies had become a driving force in a wide range of industries, not least international tourism.

Presenting both new opportunities and challenges, technologies such as online booking platforms, special mobile apps, and the internet of things had revolutionised the way people seek recommendations, plan, navigate, and experience new destinations, he said.

On the supply side, digital platforms and tools had also opened up a wealth of opportunities for businesses and the public sector in the tourism industry, enabling them to reach global audiences and provide immersive virtual experiences to visitors, he said.

Tourism development would require cross-sectoral and multi-layered co-operation, and tourism could not move forward in a manner sustainable to the health of the planet and humans without the participation of all relevant stakeholders, he said.

Therefore, we needed to continue to strengthen co-operation with dialogue and development partners and build a robust framework centred on public-private-people-development partnership at all levels, he added.

Mayur Patel, executive board member of the Pacific Asia Travel Association, said digitisation of the tourism sector would bring benefits and provide marketers with valuable insights allowing for creativity and innovation of new tourism products and services.

Digital transformation would help improve the customer experience and create a positive impact during the entire trip from the booking stage onwards, he added.

According to the World Economic Forum’s Digital Transformation Initiative, digitisation in aviation, travel and tourism is expected to create US$305 billion in value for the industry through increased profitability.

The forum was held within the framework of the 17th International Travel Expo HCM City that opened on Thursday.

The expo has attracted more than 3,500 delegates from 44 cities and provinces in the country and 41 countries and territories.

Other new solutions for sustainable tourism such as human resource restructure, destination marketing, communications strategies, and green tourism development also received much attention.

The expo, on at the Saigon Exhibition and Convention Centre in HCM City, will run until September 9. 

VN's industrial production increased by 2.9% in August

Việt Nam's industrial production index for the month of August increased by 2.9 per cent compared to the previous month and by 2.6 per cent compared to the same period last year, according to the General Statistics Office (GSO).

Manufacturing and processing showed the largest gain of 3.5 per cent; electricity production and distribution sector 3.7 per cent; water supply, management of waste and wastewater treatment 1.8 per cent compared to the same period last year.

Meanwhile, the mining sector reported a decrease of 6.2 per cent compared to the same period last year.

During the first eight months of 2023, the Southeast Asian economy's IPI decreased by 0.4 per cent compared to the same period last year. Manufacturing and processing suffered a 0.6 per cent decrease; electricity production and distribution sector increased by 1.7 per cent per cent; the water supply, waste management, and wastewater treatment sector increased by 4.8 per cent; and the mining sector decreased by 2.5 per cent.

A number of industries have experienced robust growth since the beginning of the year including coal production, petroleum refining products increased by 9.9 per cent; tobacco product manufacturing increased by 8.6 per cent; rubber and plastic products manufacturing increased by 8.4 per cent; precast metal products (excluding machinery and equipment) increased by 7 per cent; metal ore mining increased by 6.5 per cent; chemical production and chemical product manufacturing increased by 5.6 per cent; and food processing increased by 5.4 per cent compared to the same period last year.

Meanwhile, electronic product manufacturing, computers, and optical products decreased by 3.9 per cent; machinery and equipment not classified elsewhere decreased by 4.1 per cent; non-metallic mineral product manufacturing decreased by 4.4 per cent; wood processing and wood, bamboo, and rattan product manufacturing, paper, and paper product manufacturing all decreased by 4.8 per cent; garment manufacturing decreased by 5.1 per cent; other transport equipment manufacturing decreased by 6 per cent; and motor vehicle manufacturing decreased by 6.5 per cent.

Some key industrial products also saw significant increases compared to the same period last year: sugar production increased by 34.9 per cent; mixed N.P.K fertiliser increased by 14.2 per cent; petroleum and oil increased by 10.1 per cent; TVs increased by 10 per cent; and chemical paints increased by 9.5 per cent. On the other hand, some products decreased compared to the same period last year: automobiles decreased by 20.4 per cent; mobile phones decreased by 17.7 per cent; steel bars and angles decreased by 15.5 per cent; and motorcycles decreased by 7.4 per cent.

Phí Thị Hương Nga, head of the Industrial and Construction Statistics Department at the General Statistics Office, said due to the country's openness in the global economy, the production and business activities of domestic enterprises, especially those in industries where Việt Nam has a competitive advantage (such as textiles, footwear, electronics), depend significantly on foreign demand.

Furthermore, companies that have been impacted by the COVID-19 pandemic for an extended period are facing increasing difficulties, especially in terms of capital shortages and difficulties in loan procedures. Additionally, their outputs (orders) have decreased compared to the previous year, inventory levels remain high, and many skilled workers are still on leave due to the pandemic and have not fully returned to work.

Gov’t seeks measures to increase capital absorption of the economy

Deputy Prime Minister Lê Minh Khái on September 7 led a discussion focusing on strategies to enhance enterprises' access to bank loans and bolster the economy's capacity to utilise capital, especially since credit growth this year has been lacklustre.

Deputy PM Khái highlighted that despite many directives from the Government and Prime Minister Phạm Minh Chính concerning credit and interest rates, which have aided in the gradual advancement of the nation's economy amidst global challenges, the results haven't met expectations.

As such, a comprehensive evaluation is essential to devise more holistic, apt, and effective methods that can swiftly alleviate challenges, optimally assist businesses and the public, and enhance the economy's capital absorption capacity. These strategies should encompass aspects like interest rates; stipulations and prerequisites for credit access; enactment of particular support initiatives; and backing from different ministries, sectors, and regions, the Deputy PM stressed.

At this meeting, Đào Minh Tú, the Standing Deputy Governor of the State Bank of Vietnam, voiced that the management of monetary policy by the SBV is facing unprecedented challenges. The entire banking sector is grappling with the issue of surplus funds. This scenario parallels companies struggling with excessive stock, as commercial banks are now contending with an overabundance of money.

Despite the State Bank of Vietnam (SBV) and the wider banking sector's continuous efforts to foster relationships between banks and nationwide firms, streamline administrative processes, restructure debt repayment terms, offer interest rate support, and expand credit access to real estate and primary agricultural products, injecting credit into the economy proved challenging. Firms were unable to assimilate capital and were reluctant to borrow, noted Tú.

Data from the SBV revealed that by 29 August this year, bank loans had risen to approximately VNĐ12.56 quadrillion, marking a 5.33 per cent increase from the close of 2022. This growth is substantially lower than the 9.87 per cent rise observed during the corresponding period in 2022.

Over the past three years, there has been an average annual increment of about VNĐ1 quadrillion in bank loans.

Tú pinpointed the reasons for this subdued credit growth, pointing to diminishing investments, production, business, and consumption. Moreover, certain customer segments, particularly small- and medium-sized enterprises, expressed a need for bank loans but failed to fulfil the requisite conditions.

Furthermore, the execution of several credit schemes with interest rate assistance has met with obstacles and impediments.

To enhance firms' loan accessibility and bolster the economy's capacity to secure capital, the SBV has put forward four primary solution clusters: invigorating investment, consumption, and other economic growth catalysts; cultivating diverse market forms such as corporate bonds, real estate, and securities; augmenting the proficiency and capital assimilation capability of businesses; and devising strategies concerning currency, credit, and interest rates. 

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