Market access for agricultural products is a top priority for Vietnam and the US with significant progress made, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan told visiting the US Department of Agriculture (USDA)'s Under Secretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor at their meeting in Hanoi on September 12.

Tan said the US has allowed the import of fresh coconuts from Vietnam and is in the final steps of granting similar permission for Vietnamese passion fruits. Meanwhile, Vietnam has opened its market for US grapefruits, peaches, and nectarines. Additionally, the Ministry of Agriculture and Rural Development and the USDA are finalising procedures for other products, such as oranges, tangerines, plums, and seedless lemons.

The deputy minister affirmed that the US is a key partner of Vietnam and expressed his strong desire to further strengthen trade and investment relations between the two countries.

He emphasised that the elevation of the bilateral relations to a Comprehensive strategic partnership opened up numerous opportunities for cooperation across all fields, including economic and trade sectors.

Vietnam, particularly the Ministry of Industry and Trade (MoIT), will continue to actively cooperate with the US to comprehensively address the concerns of both countries, thereby maintaining stable trade relations and working towards a balanced, sustainable, and mutually beneficial trade ties, the official stressed.

He went on to talk about Vietnam’s orientation on the use of biofuels, emphasising that this is a priority area for the Vietnamese Government. Tan called for the US's support in investing technical and technological resources to promote the production and use of biofuels in Vietnam and help it fulfil its commitments at the 26th UN Climate Change Conference in Glasgow (COP26).

The deputy minister also raised concerns about the US’s increasing trade defence investigations against Vietnamese goods, including some agricultural products, and requested that the USDA make proposals to the US Department of Commerce (DOC) regarding careful and reasonable consideration in handling these cases. The US official assured that she would discuss Vietnam’s concerns with the DOC.

Agreeing with the MoIT’s viewpoints, Taylor proposed that both sides should continue to enhance related processes to further open markets for a wider range of fruits. She also urged Vietnam to create favourable conditions for the import of certain plant products and animal feed from the US and for plant quarantine procedures.

Furthermore, the USDA delegation expressed its wish to boost bilateral cooperation in the fields of biofuels and ethanol in the time to come.

Taylor also expressed sympathy for the loss of life and property caused by Typhoon Yagi in Vietnam and affirmed the US's commitment to support Vietnam in its response to natural disasters and climate change./.

Petrovietnam eyes to become national industry-energy group

The Vietnam Oil and Gas Group (Petrovietnam) has been able to master the world’s state-of-the-art technologies and now stands a chance to transform itself to become a national industry-energy group.

Petrovietnam was set up on September 3, 1975 with the goal of helping guarantee national energy security and serving as a pillar of economic support for national development.

Shortly after the date of national reunification (April 30, 1975), on September 3 the same year, the Vietnam General Department of Oil and Gas, the predecessor of Petrovietnam, was established under the Council of Government in efforts to realise late President Ho Chi Minh’s aspiration to develop an oil and gas industry for the country.

With the special attention from the Party and State, the oil and gas sector has unceasingly developed and established itself as an important economic-technical industry that helps ensure the national energy security, food security, economic security, and sovereignty security at sea.

Over the past 49 years, Petrovietnam has built a complete and harmonious oil and gas system, from the exploration, drilling and extraction of oil and gas to the development of the gas and power industry, along with high-quality technical services. Therefore, it has become the nucleus in the formation of many industrial parks in Ba Ria - Vung Tau, Dong Nai, Ca Mau, Quang Ngai, Ha Tinh and Thanh Hoa provinces, among others.

The harmonious development of its oil and gas industry chain has helped fundamentally change the economic structure, bring substantial revenue to the state budget, and basically meet domestic energy and fertiliser demand.

As of December 31, 2023, Petrovietnam's consolidated assets amounted to over 1 quadrillion VND (40.64 billion USD), while its with equity capital was around 532 trillion VND. From 1986 to 2023, the group gained more than 524 billion USD in revenue, or 10-13% of the country's GDP, and contributed over 129 billion USD to the state budget.

The figures are vivid demonstrations for the corporation’s strong influence on the socio-economic development of the country.

As a locomotive of the economy, PetroVietnam has weathered all difficulties while penning and harmoniously implementing solutions to complete the tasks entrusted by the Party and State. Particularly, it stood firm amidst the “double crisis” of a steep decline in oil prices and the COVID-19 pandemic, and smashed various business and production records during 2020-2023.

Since there is large room for further development, Petrovietnam does not satisfy with the achievements that it has carved out, said its Chairman Le Manh Hung, highlighting the group’s scale is still smaller than those of other oil and gas corporations in regional countries like Thailand, Malaysia and Indonesia.

“It is necessary for the group to make a strong and breakthrough shift in its business model so as to catch up with regional peers and contribute more to national socio-economic development in the new period”, he stressed.

Hung said the Party and State’s strategic orientations as well as completion of related mechanisms and policies have created favourable conditions for Petrovietnam to overcome challenges, and develop itself into a national industrial-energy group with sharp competitive edge in the region and the world.

With a view to concretising the target, the group has identified seven groups of tasks and solutions that need to be drastically and harmoniously carried out, including closely working with competent authorities to build and complete mechanisms and policies to facilitate rapid and sustainable development of the oil and gas sector, completing smart infrastructure, improving corporate management, attracting and enhancing the efficiency of the use of capital for development, developing a restructuring plan, promoting digital transformation, and bolstering international cooperation./.

HCM City to host F&B ingredients expo

Food Ingredients Vietnam, the only food and beverage ingredients exhibition in the country, will be held from October 9 to 11 in HCM City.

Fi Vietnam will bring together more than 150 exhibitors and attract more than 6,000 visitors from 30 countries and territories.

Part of the Fi Global exhibition series, it highlights the best the region has to offer in terms of ingredients, flavours and food and beverage technologies.

Speaking at a press briefing, Ly Kim Chi, Chairwoman of the HCM City Food and Foodstuff Association, said the food and beverage (F&B) industry has enjoyed remarkable growth of 10-12% a year on average.

“The F&B ingredients industry plays a pivotal role in the F&B industry value chain, not only driving economic growth but also ensuring national food security.”

But despite its huge potential, the F&B ingredients industry faces a number of challenges like the modest and inconsistent quality of raw materials due to small scale, fragmented production and outdated technologies.

Climate change, droughts and increasing salinity significantly impact agricultural yields and quality, and the lack of linkages within the value chain is also a persistent issue, she said.

To achieve sustainable growth, the industry requires close collaboration between businesses, authorities and research institutions, she said.

Improving product quality, increasing the diversity of F&B ingredients, adopting modern technologies, and building sustainable supply chains are key to ensuring the F&B ingredients industry is competitive, she said.

Investing in research and development of novel ingredients, flavours and spices would help the industry keep pace with consumer trends and preferences, she added.

F&B processing has emerged as a key industry, accounting for a 19% share of the manufacturing and processing sector, underscoring both its current strength and promising future.

The three-day expo will feature a number of conferences and seminars, and offer networking opportunities and a comprehensive experiences to industry professionals looking to expand their knowledge, grow their network and drive innovation in the F&B ingredients industry.

The event, to be held at the Saigon Exhibition and Convention Centre in District 7, will be organised by Informa Markets./.

Petrol prices revised down on September 12

 Retail prices of petrol products were adjusted down from 3pm on September 12 by the Ministry of Industry and Trade and the Ministry of Finance.

Accordingly, the price of E5RON92 bio-fuel was cut by 1,089 VND per litre to no more than 18,890 VND (0.77 USD) per litre, while that of RON95-III fell by 1,192 VND to 19,635 VND per litre at the maximum.

Meanwhile, diesel 0.05S is capped at 17,165 VND per litre, down 927 VND per litre. The kerosene price is not higher than 17,790 VND per litre, down 934 VND per litre.

Mazut oil 180CST 3.5S is now sold at not higher than 14,467 VND per kg, down 688 VND.

The two ministries also decided not to use the petrol price stabilisation fund this time./.

2024 Tech4life Expo & Summit opens, helps accelerate digital transformation

The 2024 Tech4life Expo & Summit officially kicked off in Ho Chi Minh City on September 12 aiming to accelerate the implementation of programmes on digital transformation, technology applications, and innovation in the southern city.

The two-day event, part of activities in response to the National Digital Transformation Day on Ocotober 10, features several major activities, including an exhibition, seminars, and trade exchanges between Vietnamese and foreign enterprises.  

On display across 50 pavillions are a range of cutting-edge technology products and solutions in the spheres of Smart & Green Factory, Smart Office, Fintech, Proptech, Smart Home, Edtech, Gaming, and Startups.

Vo Minh Thanh, deputy director of the Department of Information and Communications of Ho Chi Minh City, emphasised that apart from completing the plan to build a digital government by 2025, the southern metropolis is also promoting the development of the digital economy.

The ultimate goal of this plan is to contribute 22% to the city's gross regional domestic product (GRDP) by 2024, 25% by 2025, and rising to 40% by 2030, he said.

Furthermore, he said the city will also deploy solutions and policies in support of small and medium-sized enterprises, attract activities in high-tech parks to acclerate the development of technology and semiconductor microchips, thereby creating further regional linkages in the development of the information technology industry.

There will also be a signing ceremony to mark the implementation of a co-operation agreement between the Vietnam Software and IT Services Association (VINASA) and the Korea Open Source Software Association (KOSSA).

Viet Nam’s tourism revenue on National Day holiday reaches about $90 million

The tourism sector of Hà Nội reported total revenue during the 4-day National Day holiday at VNĐ2.2 trillion (US$89.4 million), just behind HCM City with VNĐ3 trillion.

Hà Nội welcomed about 672,900 visitors on this occasion, an increase of 5 per cent compared to last year. The figure included 58,900 international visitors, 35.8 per cent higher than that of the same period last year.

According to the Việt Nam National Authority of Tourism (VNAT), during the National Day holiday from August 31 to September 3, Việt Nam’s tourism sector served about 3 million visitors, 20 per cent higher than the figure in the same period last year.

The average accommodation occupancy rate reached 56 per cent, an increase of 1.85 per cent year on year.

Localities that were most chosen by foreign tourists including Đà Nẵng (91,000, up 15.3 per cent), Hà Nội (58,900, up 35.8 per cent), Khánh Hòa (48,000 visitors), HCM City (38,800 visitors, up 3.2 per cent year-on-year), and Bà Rịa-Vũng Tàu (25,560).

Localities with high tourism revenue during the National Day holiday include HCM City (VNĐ3 trillion), Hà Nội (VNĐ2.2 trillion), Đà Nẵng (VNĐ1.2 trillion) and Quảng Ninh (VNĐ1 trillion). 

New policy stipulates special lending cases for credit institutions

Credit institutions will receive special loans from the State Bank of Vietnam (SBV) to pay depositors in case they face mass withdrawals, according to a new SBV regulation.

According to a circular, this special lending does not include loans with an interest rate of zero per cent per year or loans without collateral, as prescribed by the Law on Credit institutions.

The regulation, under the SBV’s Circular 37/2024/TT-NHNN, stipulates SBV’s special lending cases for credit institutions.

For the SBV, the source of money for the special lending is taken from performing the function of the central bank in issuing money. The SBV will provide special loans to credit institutions in the four following cases:

First, the special lending is given to credit institutions, including commercial banks, cooperative banks, people's credit funds and microfinance institutions, which suffer mass withdrawals for the purpose of paying out to depositors

Second, the special loan is given to credit institutions, which are under the SBV’s special control to implement the Government’s approved recovery plans.

Thirdly, special lending is given to specially controlled commercial banks, which must implement the approved compulsory transfer plans according to the Law on Credit Institutions.

Finally, the special lending is provided to specially controlled commercial banks to support recovery under the approved compulsory transfer plans according to the Law on Credit Institutions.

With the Vietnam Cooperative Bank, special loans will be made as people's credit funds suffer a mass withdrawn to pay depositors or People's credit funds are under special control to implement the Government’s approved recovery plans.

Special loans from other credit institutions, except the Vietnam Cooperative Bank, will be used to lend to credit institutions that face a mass withdrawals to pay depositors or to lend to credit institutions that are under special controls, to implement approved recovery plans or approved compulsory transfer plans.

For all special loans, the SBV will consider and decide on the loan amount, along with the loan term, based on the solvency of the credit institution requesting the loan. A loan term must be less than 12 months, but the SBV can consider extending the term with each time, for less than a further 12 months, based on the solvency of the special borrower or the plan to handle the special loan in the restructuring plan submitted to the SBV.

The interest rate for the special loan is equal to the refinancing interest rate at the date of disbursement of the special loan. Meanwhile, the overdue interest rate is equal to 130 per cent of the special loan interest rate. 

Đồng Nai has 13 cooperatives granted planting area codes for fruit exports

Đồng Nai province has had 13 cooperatives granted planting area codes for fruit crops, enabling exports to international markets including China, the United States, Australia, and New Zealand.

The total planting area is 694 hectares growing fruits including bananas, durians, rambutans and mangoes.

According to the Đồng Nai People’s Committee, establishing planting areas in combination with granting area codes is an essential requirement set by international import markets.

This is not only an important standard for market expansion but also an opportunity to increase export value. As a result, many farming cooperatives in Đồng Nai have actively applied high technology to production and integrated into the value chain.

Currently, the province has over 1,000 cooperative groups, 506 cooperatives, people’s credit funds and one cooperative union, with a total charter capital of over VNĐ1.8 trillion (US$7 million).

Of these, the agricultural sector has 218 cooperatives and one cooperative union, with registered charter capital amounting to VNĐ545 billion, involving 3,442 members and 3,094 regular workers.

The Đồng Nai People’s Committee also noted an increasing number of cooperatives linking with businesses to sell agricultural products. Sixty-four agricultural cooperatives are now participating in product consumption chains, with many products meeting the OCOP (One Commune, One Product) standard. Notably, the province has 22 cooperatives with 39 OCOP products rated three stars or higher, with Trường Phát Agricultural Cooperative and Bình Lợi Agricultural Services Cooperative being standout examples with high-quality products.

Regarding high-tech cooperatives, Đồng Nai has 38 out of 82 crop-growing cooperatives certified under the Good Agricultural Practices (GAP) standard. Additionally, three cooperatives have achieved organic production certification, with an organic farming area of 19.5 hectares.

Looking ahead, Đồng Nai will continue to encourage cooperatives to expand value chains, link with other economic organisations to broaden markets, increase production scale and ensure sustainable development. The province also focuses on building exemplary, modern cooperative models to replicate across the region, ensuring the sustainable development of the collective economy.

The Đồng Nai People’s Committee emphasised that the implementation of Plan No. 227-KH/TU and Resolution No. 20-NQ/TW on enhancing the effectiveness of the collective economy will continue to be carried out effectively, aiming at economic development in the new phase. 

Bắc Ninh targets $7 billion in foreign investment this year

The northern province of Bắc Ninh is working to attract a total of US$7 billion in foreign investment by the end of the year, local authorities have said.

To reach this goal, the province is taking measures to improve the business environment, enhance workforce quality and promote investment opportunities.

The province also has ambitious plans for the future. A recently approved list outlines 167 projects covering over 11,600ha, with a focus on agriculture, commerce, services, residential and urban development, social housing, industrial zone infrastructure and social amenities.

Chairman of the provincial People's Committee Vương Quốc Tuấn said his province will continue to accelerate administrative procedures, creating the most favourable conditions for investors to access planning information, land, infrastructure, human resource training and business opportunities while quickly handling difficulties encountered by investors.

The province continues to be a top destination for foreign direct investment in Việt Nam, thanks to its investor-friendly environment, modern infrastructure and quality workforce, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

Over the past eight months, the locality has attracted nearly $3.47 billion worth of foreign investment, nearly three times higher than that of the same period last year and accounting for 16.9 per cent of the total investment capital registered in the country.

Hu Wen Da, Chairman of Zhong’an Jichuang Investment Co., said Chinese investors, particularly those from Shenzhen, are showing keen interest in Bắc Ninh's semiconductor and high-tech chip manufacturing sectors.

The province's attractive investment climate has prompted the company to consider investing in the area and encouraging other Chinese firms to follow suit, the chairman said.

Major global corporations, including Goertek, Amkor, Foxconn, Suntory Pepsico and Victory Giant Technology, are looking to expand their operations in Bắc Ninh. 

HCM City producers, distributors increase supply to disaster-hit north

Essential goods producers and distributors in HCM City are ramping up their efforts to increase stocks and swiftly transport them to the north, which has been severely affected by the disasters caused by typhoon Yagi.

Lý Kim Chi, chairwoman of the HCM City Food and Foodstuff Association, said after receiving information about the devastation, her association immediately worked with key producers to increase output to ensure the north gets adequate supply of goods.

"We will ensure adequate supply of dried and processed foods.

“Our member businesses are committed to maintaining steady prices."

Food and foodstuff businesses in the city are coordinating with retailers and transporters to expedite shipment to the north, she said.

The association is working with its members, particularly those with facilities and warehouses close to typhoon-hit areas, to ensure quick supply, she said.

It has launched a campaign to collect donations to aid people affected by the storm and its aftermath, and received a lot of contributions, she added.

Major retailers such as Saigon Co.op, MM Mega Market and Central Retail have also announced an increase in shipments to the north.

Saigon Co.op, which has 11 Co.opmart supermarkets and 28 Co.op Food stores in Hà Nội, Hải Phòng, Vĩnh Phúc, Bắc Giang, and Phú Thọ, has quickly tripled its normal supply to them.

Its northern distribution centre in Bắc Ninh Province is operating on an emergency basis, with all staff working in shifts and overtime to keep the centre running 24/7 to coordinate the transport of goods.

It has mobilised trucks from its other distribution centres and used smaller  trucks to serve the northern market.

To make up for the vegetable shortages caused by the damage to farms in the north, the retailer has increased its purchase from Đồng Nai, Lâm Đồng and some Mekong Delta provinces to ship to the north.

In addition to ensuring stocks, hygiene and safety and steady prices, Co.opmart in collaborated with suppliers is also offering discounts dedicated to the northern market.

It reported that footfall and sales at its northern outlets have increased by 50 per cent from normal days, and online orders have doubled or tripled, especially for foods such as instant noodles, rice noodles, dry vermicelli, biscuits, and milk.

Vũ Anh Khoa, Saigon Co.op’s chairman, said the retailer is focusing its resources on sharing and supporting typhoon and flood-hit provinces in the north.

He asked its northern distribution centre to proactively participate with localities and organisations to ensure timely supply of goods to customers and people in need, and is ready to transport goods to mountainous and remote areas when needed.

MM Mega Market Vietnam has increased the staff size at northern warehouses to ensure prompt supply and transport of goods to its stores and customers.

Trần Kim Nga, its external affairs director, said MM has for long focused on building a closed supply chain, and has five sourcing stations, two large storage warehouses in Bình Dương, and six B2B delivery depots, and so its stocks are is capable of meeting demand in the north for a full month.

It has tripled the supply of goods from the south to the north and from northern warehouses to its customers, and MM is ready to collaborate with rescue and relief workers and charities who need large quantities of relief supplies, she said.

Central Retail Vietnam, owner of GO! and Big C supermarket chains, has doubled its normal supply of vegetables.

Businesses in the south are closely coordinating with distribution and retail systems that have networks in the north to promptly supply essential goods.

Businesses and retailers are also working with State agencies and local authorities to provide relief to affected people. 

Viet Nam: a key destination for venture capital, private equity investments

Việt Nam has emerged as a key destination for venture capital and private equity investments, driven by its dynamic economic growth and vibrant entrepreneurial sector, financial insiders said at a meeting on Thursday in HCM City.

Speaking at the inaugural event of the Vietnam Private Capital Agency (VPCA), Kobe Ge, Regional Head of China Capital Markets at the New York Stock Exchange, said: “Global investors are increasingly drawn to Việt Nam due to its robust economic expansion and favourable demographics.”

The Vietnamese government is also committed to supporting innovation through forward-thinking policies, he said.

Lê Hoàng Uyên Vy, chair of the VPCA, said: “Việt Nam is witnessing a pivotal moment as foreign venture capital and private equity funds increasingly seek investment opportunities and the government implements supportive policies to foster a thriving business climate.”

Experts have also noted the need for structured capital deployment, enhanced industry expertise, and effective support mechanisms, which remain critical for sustained growth in the country.

Bình Trần, vice chair of the VPCA, said: “While investment opportunities in Việt Nam are abundant, it still trails behind advanced regions such as North America, which accounted for nearly half of the total private capital fundraising in 2023.”

“There is a clear gap in capital flow and activity that can only be bridged through strategic initiatives and enhanced support for private capital sector,” he added.

The VPCA has set an ambitious goal of mobilising US$35 billion in private investment by 2035 as it aims to improve the investment climate by promoting best practices in venture capital and private equity, expediting capital deployment, and nurturing talent.

By uniting investors, industry partners, and entrepreneurs, it seeks to enhance access to high-impact opportunities and advocate for policies that contribute to a more favourable investment climate.

The agency also collaborates with industry leaders to establish a robust entrepreneurial framework, aiming to strengthen the nation’s venture capital ecosystem and promote entrepreneurship throughout Southeast Asia.

The inaugural event attracted nearly 100 investors from various venture capital and private equity firms worldwide, including representatives from Việt Nam, Singapore, Indonesia, Hong Kong (China), and the US. 

Bình Dương's wood exports top $4.2 billion

Bình Dương province, Việt Nam’s leading wood processing hub, achieved over US$4.2 billion in wood product exports in the first eight months of 2024. Local wood industry firms are seeing a surge in orders, promising a busy production time ahead, boosting both output and exports.

Nguyễn Liêm, Chairman of Binh Duong Furniture Association (BIFA), noted the wood sector's strong recovery, with export value rising sharply. The US remains the largest market, with growth exceeding 20 per cent over initial projections.

In August alone, the province’s wood exports reached $628 million, a 25 per cent increase from July, pushing the cumulative export value past $4.2 billion, up 24 per cent year-on-year. This growth reflects recovering global demand and the improved quality of Vietnamese products.

Companies are adapting to new market requirements by investing in green production and clean supply chains.

Liêm said the association has been focusing not only on quantity but also on quality, ensuring its products meet stringent importers' standards.

To maintain this momentum, the province’s wood firms are investing in technology, marketing, and research to better meet international consumers' requirements.

The association will continue to connect businesses with global markets and supports export growth, aiming for Việt Nam’s wood sector to exceed $15 billion in exports by year-end, with the province leading the way.

Conferences seek expert opinions on investment law amendments

Officials and experts discussed amendments on several investment laws to create more favourable conditions for investors, highlighting the need for simplifying and speeding up procedures.

The Ministry of Planning and Investment organised a conference on September 11 to seek opinions from localities in Southeast Việt Nam and the Mekong Delta on amendments to the Law on Planning, Law on Investment, Law on Investment with Public – Private Partnership (PPP) and Law on Bidding.

Officials discussed problems with policies on planning and attracting investment, and proposed mechanisms to attract more investment into prioritised areas.

Regarding the Law on Investment, the Investment Management Department proposed giving more authority to provincial level People’s Committees to approve investment projects, specifically projects that construct and operate infrastructure in industrial parks and build new ports or port areas with an investment of VNĐ2.3 trillion (US$93.6 million) or below.

Special investment procedures need to shift “from pre-inspection to post-inspection”, meaning authorities have to switch from simply issuing permits to projects that meet business regulations to actively guiding them to adhere to those regulations.

This will help speed up investment procedures and enhance Việt Nam’s competitiveness in attracting high-tech projects and projects in other prioritised areas.

An official from the Bình Dương Industrial Zones Authority noted that while it is important to create favourable conditions for investors, there should still be detailed regulations that investors have to adhere to, especially in order to enjoy special investment mechanisms.

As for investments with the PPP model, in order to resolve difficulties and perfect the legal framework to attract investment, the ministry is amending and adding more policies to encourage PPP for all public investment projects, aside from state monopoly projects or those related to national defense, security and social order.

The draft Law on Investment with Public-Private Partnership will also abolish the limit on the minimum investment capital to implement PPP projects and simplify procedures, promoting decentralisation of state management for PPP projects.

Meanwhile, the draft Law on Bidding will allow investors to approve and select contractors or sign contracts with them before the projects are approved or international treaties and foreign loan agreements are signed, which will speed up project implementation.

Ịt will also allow for “bidding packages that can choose contractors in special cases” to speed up the implementation process of projects and bidding packages that have special requirements on contract selection and cannot use other methods of selecting contractors.

On the same day, the ministry also organised another conference to discuss amendments to the Law of Public Investment, including increasing decentralisation of authority and helping projects that use official development assistance funds.

The draft amendments will allow for land clearance, compensation, and resettlement works of a project to be separated into its own independent project. Officials at the conference commended this move, saying that this will speed up large project implementation, but noted that this should not apply to small projects.

The draft law will also simplify the procedures for planning medium-term and annual public investment, as well as for capital appraisal. 

Ministry proposes service fees for securities sector

The Ministry of Finance (MoF) is currently gathering feedback on a draft circular that outlines service fees in the securities industry. 

This guidance will apply to the Việt Nam Stock Exchange, its subsidiaries and the Việt Nam Securities Depository and Clearing Corporation (VDSC).

The service fees specified in this circular are exempt from value-added tax as per the Value-Added Tax Law and any applicable amendments.

For services not priced by the MoF, the Việt Nam Stock Exchange and VSDC are empowered to set their own prices and are fully responsible for ensuring that these fees reflect the actual provision of services, in compliance with pricing regulations, securities law and other relevant legislation.

The Việt Nam Stock Exchange and VSDC are required to publicly list and disclose their prices, following all applicable laws regarding pricing and securities, as well as relevant guidelines.

By March 31 each year, the Việt Nam Stock Exchange, the Hà Nội Stock Exchange, the Hồ Chí Minh Stock Exchange and the VDSC must report the previous year’s business performance in securities services to the MoF's State Securities Commission and Department of Price Management.

The State Securities Commission (SSC) will review these reports and may request additional information as needed. 

If fluctuations in price-forming factors or market prices impact operations, these entities must create a pricing plan and submit it to the SSC for assessment and further recommendations to the Department of Price Management for necessary adjustments.

The draft circular stipulates that service fees for managing the listing of stocks, corporate bonds, investment fund certificates and debt instruments as outlined in the Public Debt Management Law will be calculated using the following formula: service fee = (Price/12 months) * the duration of the service fee calculation period (months).

Pricing would be determined by the MoF and adjusted for each period. When an organisation lists multiple securities on the same stock exchange, the fee will be calculated individually for each ticker symbol. 

For listed securities, if they remain listed and are not delisted during the year, the service fee calculation period will last for 12 months, starting from January 1 of that year.

In the case of first-time listings, if an organisation registers and is not delisted within the year, the service fee for the first year will be calculated from the month following the stock exchange’s approval until the end of December of that year.

Investors remain cautious on bond investments

Commercial banks' exclusive involvement in issuing and holding corporate bonds reflects the persisting lack of confidence in the bond market, from both retail and institutional investors.

As of August 30, there were 43 private placements of corporate bonds in August, amounting to nearly VNĐ38 trillion (US$1.55 billion) and two public bond issuances totalling VNĐ11 trillion, data from the Việt Nam Bond Market Association showed.

Year-to-date figures show 227 private placements valued at nearly VNĐ215.6 trillion and 13 public issuances worth over VNĐ22.77 trillion.

Last month, companies repurchased bonds worth more than VNĐ11 trillion before maturity, marking a 45 per cent decrease from the same period in 2023.

In the last months of 2024, it is projected that close to VNĐ106 trillion in bonds will mature, with a significant portion, approximately VNĐ43.35 trillion, being real estate bonds, representing nearly 41 per cent of the total.

Regarding unusual disclosures, August saw ten bond codes with delayed interest payments totalling VNĐ197.5 billion and one bond code with delayed principal repayment of VNĐ998 billion.

In terms of structuring, banks maintain a significant lead in issuance value for the first eight months of the year, holding a share of 72.18 per cent, followed by the real estate sector at 18.54 per cent.

Other sectors like securities, construction and transportation also play a role, while corporate bonds from manufacturing firms are notably scarce in the market.

According to Mirae Asset Vietnam Securities, current trends show that credit institutions are issuing substantial bonds to raise capital to meet the growing credit demand, given the imbalance between deposit and credit growth.

Meanwhile, real estate companies are increasingly issuing corporate bonds, partly for financial restructuring and to support new projects, especially amid relatively low supply sources.

The Ministry of Finance said that while corporate bond issuances have surged, a significant chunk is still held by commercial banks, about 63.2 per cent.

This suggests that retail investors' confidence in the market hasn't fully rebounded, with safe haven assets remaining popular.

Banking investments in corporate bonds remain restricted, reflecting caution from both retail investors and banks.

Notable upcoming issuance plans include Kinh Bắc City Development Holding Corporation, set to issue non-convertible, asset-backed bonds with a two year term and a fixed 10.5 per cent annual interest rate, totalling a maximum of VNĐ1 trillion in the third quarter.

Asia Commercial Joint Stock Bank (ACB) plans to issue 15 batches of non-convertible, unsecured bonds with a maximum value of VNĐ15,000 billion in 2024.

Each bond has a face value of VNĐ100 million with a maximum term of five years and no warrants. 

Seafood stocks vary in performance

The domestic seafood industry is witnessing a recovery in investment yields, though growth remains moderate compared to the broader market. Product pricing and competition are leading to significant profit differentials among stocks.

Since the start of 2024, seafood stocks have rebounded, showing a 12.8 per cent increase by August 21. However, profit disparities exist among industry players, trailing the VN-Index's 13.4 per cent surge.

While the export market, notably to the European Union (EU), reflects improvements, Việt Nam still grapples with a yellow card under the Illegal, Unreported and Unregulated (IUU) rule.

Despite concerted efforts by firms and the Government, formidable challenges cast doubt on industry growth sustainability.

Companies are navigating hurdles to foster growth, yet efficiency levels vary. Divergent business strategies, risk management approaches and stock valuations prompt investors to carefully weigh their choices within this sector.

Since early 2024, the investment returns in Việt Nam's seafood sector have displayed encouraging trends. However, not all industry players are reaping the benefits of this resurgence, according to Saigon Times, citing experts from the CFA and Việt Dragon Securities Corporation (VDSC).

Shares of Minh Phú Seafood Corporation (MPC), a key industry player, have seen a minor 1.16 per cent decrease in yield since the year's start, despite a substantial 277.9 per cent surge in the latest quarterly profit after tax.

This highlights the continued impact of factors like stock prices and enterprise valuations on investment choices.

By contrast, Sao Ta Foods JSC (FMC) has achieved a commendable 5.6 per cent rate of return, despite a modest 10.3 per cent profit after tax growth in the latest quarter. This divergence may be attributed to FMC's appealing valuation with a lower price to earning (P/E) ratio, enhancing its investor allure.

Companies like Camimex Group (CMX), Nam Việt Corporation (ANV) and I.D.I International Development & Investment Corporation (IDI) have witnessed diminishing investment yields, predominantly driven by high P/E ratios, coupled with ongoing industry recovery challenges and international trade risks.

Investment performance divergences not only mirror business performances but also hinge on individual firms' development strategies and management proficiencies.

Companies embracing flexibility, product diversification and extensive export channels tend to sustain more consistent profits.

Conversely, businesses heavily reliant on specific products or markets are more vulnerable to market fluctuations and macro-economic uncertainties. The data illustrates that despite evident signs of recovery in the Vietnamese seafood sector, uncertainties still prevail.

Việt Nam's seafood export growth in 2024 is primarily driven by increased export volumes, with prices remaining stable compared to last year.

The total export value has risen by 8 per cent, led by significant growth in the US (11.7 per cent), China (12.2 per cent) and notably the EU (110 percent), despite the EU's yellow card.

In contrast, Japan has seen a slight 0.8 per cent decline, likely due to slow domestic consumption recovery post-pandemic.

Strong export growth to the EU indicates economic revival and growing trust in Vietnamese seafood quality. Noteworthy is this export surge amid economic challenges like inflation and sluggish growth in these key markets.

The domestic's seafood industry is expected to see positive profit growth in 2024, despite stable product prices.

However, long-term investment attractiveness remains uncertain due to high stock valuations and intense competition.

The industry's ability to meet market expectations amid global economic fluctuations is in question.

While short-term prospects are promising, long-term success hinges on factors like international standards, export market stability and government support.

Addressing challenges such as production costs, trade barriers and climate change is crucial.

Investors must carefully assess risks and profitability for prudent long-term investments, leveraging a cautious approach and apply strategic planning to minimise risks and capitalise on market opportunities.

On the stock market, seafood shares all ticked down. FMC, CMX, IDI and ANV on the Hồ Chí Minh Stock Exchange (HoSE) dropped 0.12-1.36 per cent. MPC on UpCOM decreased 2.41 per cent. 

Building a global logistics hub in HCM City

The HCM City People's Committee has issued a plan to enhance investment in logistics infrastructure development and increase port handling capacity and warehousing.

It also seeks to proactively engage in global supply chains to establish a regionally significant logistics service centre.

The HCM City People's Committee requires the plan to align with the city's approved strategies and blueprints for socio-economic growth and commercial and service infrastructure.

Investment projects must be executed consistently, effectively, transparently, fairly and in compliance with the law.

The plan emphasises the mobilisation of maximum social resources, encouraging private sector investment by providing favourable tax conditions, land use and administrative procedures.

The focus will be on transitioning to green logistics within the supply chain, which will help in the efficient transportation of goods while minimising emissions and pollution, contributing to environmental sustainability.

It is considered a crucial condition for development and integration, helping businesses increase competitiveness and achieve sustainable growth.

Priority will be given to projects applying Industry 4.0 technologies, high-tech solutions, digital transformations, green energy and environmental protection measures.

By 2030, HCM City aims to position logistics as a sector of significant importance in the city's economy, capitalising on global supply chain opportunities.

The goal is to turn the city into a logistics service hub for southeast Asia.

With a particular emphasis on investing in and developing a modern and synchronised logistics infrastructure and port system, the goal is for enhanced connectivity among economic, industrial, commercial, service and distribution hubs, for the southeast region and the southern Key Economic Zone.

By 2045, the city seeks to develop logistics into a pioneering and sustainable economic sector, striving to become a logistics service hub for Asia and the world.

International pharma expo opens in HCM City

The 19th annual international exhibition of products, equipment, supplies for the medical, pharmaceutical, hospital, and rehabilitation industries is being held in HCM City from September 11 to 14.

Pharmedi Vietnam at the Sài Gòn Exhibition and Convention Center (SECC) in District 7 has more than 800 booths set up by exhibitors from 25 countries and territories.

Organised by ADPEX Joint Stock Company in collaboration with Global Exhibition and Conference Joint Stock Company, the expo serves to link up manufacturers with distributors.

Speaking at its opening ceremony on Wednesday, Deputy Minister of Health Nguyễn Thị Liên Hương said over past years, Pharmedi Vietnam has been driving the development of the pharmaceutical industry.

“The event has successfully facilitated trade between domestic and international businesses, creating opportunities for companies to promote their products, strengthen investment cooperation and exchange technology, thereby contributing to the advancement of healthcare in Việt Nam.”

The expo is showcasing a range of products and services like pharmaceuticals, drugs and functional foods; pharmaceutical manufacturing and packaging machinery; dental equipment and supplies; medical equipment and supplies; biochemical analysis equipment; and medical consumables.

It has garnered significant interest among businesses from countries with advanced healthcare systems, such as the US, Germany, Poland, South Korea, Japan, China, and Iran.

A number of domestic and foreign pharmaceutical corporations are showcasing their products and solutions.

The event will include a one-on-one business matchmaking programme to create benefits for participants.

A highlight of this year's exhibition is the booth put up by Vikomed, a leading Vietnamese joint venture specialising in high-tech medical equipment, to showcase its advanced medical devices such as digital X-rays, C-arms and PACS image management systems.

They have international quality certification such as ISO 13485:2016 and US FDA.

There will be a series of seminars and workshops held by relevant ministries and other government agencies and participating exhibitors.

They are expected to offer physicians, pharmacists, nurses, and other healthcare professionals insights into market developments, new technologies, and the most popular and modern applications in the medical and pharmaceutical industry. 

Reviewing the application of measures against trade remedy evasion for sugar products

The Ministry of Industry and Trade (MoIT) has issued a decision to review the application of measures against trade remedy evasion for certain sugar products.

Previously, the ministry issued a decision on the results of the first review of the application of anti-dumping and anti-subsidy measures against some cane sugar products originating from Thailand on August 3 last year.

The Trade Remedies Authority of Việt Nam (Trav) under the Ministry of Industry and Trade, has received a review dossier from the Việt Nam Sugarcane and Sugar Association representing domestic manufacturing enterprises. They have requested a review of measures to prevent evasion of trade defence measures for a number of cane sugar products.

Based on this review, in accordance with the provisions of law, the MoIT issued Decision No 2386/QĐ-BCT on reviewing the application of measures against trade remedy evasion on some sugarcane products (case code: AR01.AC02.AD13-AS01) on September 6.

To ensure the interests of all organisations and individuals related to the case, Trav recommended on Tuesday that organisations and individuals register as relevant parties, according to the related party registration form in Appendix I issued with Circular No 37/2019/TT-BCT. They need then send it to the investigation agency via the online trade defence dossier receiving system (Trav online at https://online.trav.gov.vn) within 60 working days from the effective date of the decision to conduct the review.

Or the related party registration form can be sent to the investigation agency by post or email. 

A common coordination process to handle suspected fraudulent transactions to be developed

Banks should have a uniform way of handling suspect and potentially fraudulent accounts, according to Việt Nam Banks Association (VNBA).

Currently different banks treat suspicious transactions slightly differently and a common coordination process for how they handle accounts and cards if transactions might be fraudulent, is expected to be introduced in November.

VNBA’s General Secretary Nguyễn Quốc Hùng said that the uniform process is important to ensure payment safety, information security and protect customers’ rights.

The process will be in line with the established regulations for non-cash payments.

The National Payment Corporation of Việt Nam said that currently each bank has a different process for handling doubtful transactions. Thus, the common process is necessary to facilitate coordination among banks to handle all cases most conveniently.

The draft process is being completed for comments with the association saying that the process will be issued in November to be applied among VNBA’s member credit institutions. 

South Korea’s CS Wind to invest $200 million in wind power equipment factory

A South Korean wind turbine manufacturer is planning to build a US$200 million wind power equipment factory in an industrial zone in Long An Province.

CS Wind on Tuesday signed a memorandum of understanding with Đồng Tâm Group for a land lease of 50ha in the province's Đông Nam Á Industrial Zone to develop the factory, with an estimated investment of $200 million in the first phase.

The factory will produce onshore and offshore wind turbine towers as well as offshore wind power products such as piles and transition equipment to supply to the global market.

To date, this will be the largest wind power equipment factory in the world. The factory is expected to supply oversized and overweight equipment weighing from 500 to 4,000 tonnes per unit.

In the first phase, all the imports and exports of the factory will be handled via Long An International Port, estimated at 150,000-200,000 tonnes per year, contributing to local and regional socio-economic development.

Huỳnh Văn Sơn, deputy chairman of the provincial People’s Committee, pledges to create a favourable and transparent business environment for investors coming to the southern province. Long An ranked second in the provincial competitive index in 2023 with rapid urbanisation and strong urban development.

Founded in 1984, CS Wind has become the leading manufacturer of wind towers in the world, supplying more than 13,000 wind towers for global wind engineering companies such as Vestas, Siemens – Gamesa, GE and Goldwind.

CS Wind founded the first factory in Việt Nam in 2003, in Bà Rịa-Vũng Tàu Province. The company is operating production bases in eight countries, including in Việt Nam, the US and Denmark.

Đồng Tâm Group operates in a diversified range of sectors, including building materials, industrial infrastructure and logistics. 

Hà Nội car dealers scramble to move vehicles

Amid warnings of the rising Hồng (Red) River causing flooding in several areas near the river in Hà Nội, used and luxury car showroom owners are seeking ways to relocate display vehicles.

As of Tuesday morning, Phan Văn Cảnh, the owner of Thái Bình Auto used car dealership (located at 400 Phạm Văn Đồng), has been rushing around nearby urban areas along Phạm Văn Đồng to find parking spaces.

His preference is for elevated parking structures, avoiding underground parking. However, he still hasn't found places due to all the other dealers having the same idea.

"Since yesterday, in the group chat of used car dealers, everyone has been discussing finding elevated parking spots in case of heavy rain and the Hồng River rising. Today (September 9), hearing reports about the continuous rise of the water levels, I hurried to find a place to park, but everywhere was full," Cảnh said.

He added that his showroom has 15 cars, including the Hyundai Santa Fe, KIA Sorento and Mazda CX5, so it is especially difficult to find a large number of spaces in one place at the same time.

If no nearby parking is available, he might have to split up the cars and distribute them to different urban areas, a few cars per area.

Meanwhile, Lê Xuân Bách, the owner of Bách Hải Auto Showroom (located at 15 Lê Văn Lương), completed relocating all of the vehicles from his showroom and storage yard by the morning of September 10.

Bách explained that his system and affiliated showrooms house hundreds of cars, including many high-end models, including the Toyota Land Cruiser, Lexus LX570, and Mercedes-Benz GLC. Given the value of these assets, he decided to prioritise safety by relocating the vehicles.

"My cars are parked in the elevated parking structures of urban developments, like Vinhomes Smart City and Keangnam. These facilities offer hourly parking rates ranging from VNĐ15,000 (US$0.6) to VNĐ30,000," Bách said.

According to him, almost all the used car dealers along Lê Văn Lương have already moved their cars to safety.

Over the past two days, this has been happening as flood warnings for Hà Nội have become more frequent.

Nguyễn Ngọc, the owner of Auto 568 Showroom (located at 517 Kim Mã Street), has successfully secured upper-level parking in the Ngoại Giao Đoàn area (near Võ Chí Công Street).

Expensive vehicles, including the Rolls-Royce Phantom, Maybach GLS600 and Porsche 911 Targa 4S are now safely parked on the upper floors of the parking garage.

Ngọc said that the parking fee, ranging from VNĐ130,000 to VNĐ150,000 per day, is still cheap compared to the potential damage from flooding, as his showroom's cars are all high-end models.

The demand for high-level parking spaces from used car dealers remains high, however many locations are now full or no longer accepting new vehicles, prioritising parking for residents and office tenants.

Tax increases on alcoholic beverages should strike a balance: economists

The tax increases on alcoholic beverages should strike a balance between curbing consumption to protect the public's health and hindering the beverage industry, said industry experts and policymakers.

Three tax laws, including the Corporate Income Tax Law, the Value-Added Tax Law, and the Special Consumption Tax Law, have been under review and are expected to be amended in a direction that will significantly raise taxes for the industry.

Among these, a draft amendment to the Special Consumption Tax Law is expected to be presented to the National Assembly next month and can be approved as early as May next year. The tax has been reported to take an upward trajectory, taxing alcoholic beverages starting from 2026, reaching as high as 100 per cent by 2030.

The amendment proposed two scenarios, with the Ministry of Finance preferring alcoholic beverages with alcohol content of 20 per cent or higher having their taxes increased by 80 per cent by 2030. Meanwhile, alcoholic beverages with an alcohol content of 19 per cent or lower will have their taxes increased by 50-70 per cent. Beers will also see a gradual tax increase from 80 per cent to 100 per cent.

Head of the Department of Business Environment and Competitiveness at the Central Institute for Economic Management Nguyễn Minh Thảo, said the government must raise the tax to curb consumption of alcoholic beverages, which are harmful to public health if consumed irresponsibly.

On the other hand, excessive taxes could result in increased smuggling and counterfeiting activities, possibly leading to the formation of illegal markets, which may cause significant harm.

She said the amended taxes could have a far reaching negative impact on as many as 24 industries and sectors, including hospitality and food, potentially hurting the Southeast Asian economy's position as an attractive foreign investment destination.

"Fair competition can only be assured in a fair and transparent market, which has clear and well-established standards and regulations to limit counterfeiting," she said.

VP and secretary-general of the Vietnam Beer, Alcohol, and Beverage Association, Chu Thị Vân Anh, said the new regulations, once passed, could pose major challenges to the industry.

"As it is, many large players in the industry have had to lay off workers and scale down production. A tax hike as high as 100 per cent by 2030 is significant and businesses should have more time to assess the impact of a change of this magnitude," Anh said.

Economists and industry insiders have called for extra time to allow for smoother transition and allow business operations to adapt. They also proposed the tax hike should be delayed for beers and exemptions granted to non-alcoholic beers.

They said the tax hikes should not be implemented every single year, but, instead, every other year to allow businesses more time to plan and adapt to the new taxes. They called for a more scientific approach to determining the tax increases and the appropriate time for implementation to ensure a supportive environment for the industry. 

Central bank might work to increase nation’s foreign exchange reserves

Based on the cooling exchange rate, the State Bank of Vietnam (SBV) may increase the US dollar buying price at the SBV’s Central Banking Department (CBD) to supplement the country’s foreign exchange reserves, analysts said.

In a recent report, analysts from the Saigon Securities Incorporation (SSI) said the selling rate at the CBD currently decreased by about VNĐ100 to VNĐ25,362 while the buying rate remained unchanged at VNĐ23,400 per dollar.

The exchange rates listed in the interbank market, at commercial banks and the unofficial market, have all cooled down, narrowing the increase compared to the end of 2023 to only 1.5 per cent as of September 6, according to SSI Research data.

At the same time, the rate gap between the unofficial market and commercial banks is almost insignificant. On September 6, the dollar was listed at VNĐ25,050 - 25,090 in the unofficial market, compared with VNĐ24,500 - 24,870 at Vietcombank.

At the end of last month, for the first time in four months, the SBV adjusted the dollar selling price at the CBD from VNĐ25,450 to VNĐ25,385 per dollar. By September 6, the selling rate continued to decrease to VNĐ25,362.

Meanwhile, the buying rate at the CBD has still maintained at VNĐ23,400 per dollar, much lower than the interbank rate.

However, in the context of the dollar cooling down, SSI's analysts said the SBV might increase this buying rate to enable the addition of more foreign currency to the nation’s foreign exchange reserves.

According to data from WiChart, the SBV has maintained the buying rate at VNĐ23,400 per dollar since mid-May 2023. Previously, the SBV strongly increased the buying rate from VNĐ22,250 to VNĐ23,450 per dollar at the end of the third quarter of 2022.

Sharing the same view, Nguyễn Thế Minh, director of Yuanta Vietnam Securities Company’s Analysis and Product Development, said that the SBV would take advantage of the opportunity to buy additional dollars in the context of the cooling exchange rate.

However, as the exchange rate is still under some pressure from both outside and inside, the SBV would not necessarily supplement the nation’s foreign exchange reserves at all costs, but would buy when the exchange rate falls deeply, Minh forecast.

In the context of sharp declines in the foreign exchange rate in the past few weeks, the SBV has also loosened monetary measures.

Specifically, the SBV has stopped offering treasury bills since late last month, besides reducing the bill interest rate from 4.2 per cent per year to 4.15 per cent per year.

In addition, the SBV has also reduced the open market operation (OMO) interest rate from 4.5 per cent to 4.25 per cent. 

Green finance critical to realise green growth targets: conference

It is critical to develop solutions to effectively mobilise and allocate green financial sources to realise green growth targets towards sustainable development, a conference held by Economy and Forecast Magazine has heard.

The conference, held on Tuesday in Hà Nội, learned that Việt Nam needs huge resources to achieve green growth targets.

The United Nations Development Programme (UNDP) estimates that Việt Nam needs US$330-370 billion to achieve Net Zero by 2050. The Ministry of Natural Resources and Environment said that a sum worth $68.75 billion is needed to reduce emissions in line with the country’s environment commitments

“The effective mobilisation and allocation of financial resources, from domestic and foreign sources and from different economic sectors is pressing to meet the capital demand for green growth,” Đỗ Thị Phương Lan, Editor-in-Chief of the magazine said.

Under the action plan to implement the green growth strategy, financial sources to accelerate green growth include the State budget, the private sector (green credit, green corporate bond, carbon credit and exchange of greenhouse gas emission quotas), international assistance (ODA) and society by way of public-private partnership and funds.

According to Nguyễn Thanh Nga, Deputy Director of the Institute for Financial Strategy and Policy, there are limitations in the green finance policies of Việt Nam.

Specifically, the taxes and fees on activities that cause environmental pollution, as well as punishments, are not severe enough and unable to compensate for the damage caused.

The State budget allocated for green growth remained limited, she said, citing statistics of the Ministry of Planning and Investment that the State budget only met around 25 per cent of the capital demand to cope with climate change and promote green growth.

In addition, the development of a green stock market in Việt Nam was slow compared to other countries in the region such as Indonesia, Thailand and Malaysia. The major motivation of the green stock market had not come from the market demand as the investors had not been aware of or not paid adequate attention to corporate sustainable development and social responsibility.

Nga pointed out that the absence of green taxonomy was also hindering the development of a green stock market, together with the limited participation of professional institutional investors.

The development of green insurance was also lagging the demand for rapid and sustainable economic development.

To renovate its growth model, Việt Nam needed to focus on improving the capacity to raise and use green financial tools effectively, Nga said.

A comprehensive review of tax policies should be carried out to expand the tax base for environmental protection tax and offer bigger incentives to green growth and climate change adaptation projects, Nga urged.

Public investment policies should prioritise green growth and create spillover effects to attract resources from other economic sectors, she said.

Solutions to promote the development of green stock markets should be implemented synchronously, including green bonds and green stocks. The legal framework for green insurance must also be improved.

It was also important to improve the legal framework for carbon credit market, including the formation of a carbon credit exchange which would be connected to the regional and world markets, Nga said, stressing that the carbon market was an important tool towards green growth.

The development of green and sustainable financial instruments is a new sector not only in Việt Nam but also in the world and remains challenging, according to Tô Trần Hoà, Deputy Director of the Market Development Department under the State Securities Commission.

Green financial instruments are not only a vital trend, but also an opportunity for Việt Nam to take the pioneering role in sustainable development.

The State Securities Commission will continue to improve policies and develop projects in line with the national strategy on green growth together with the early issuance of an action plan for green growth of the securities market by 2030.

Policies and incentives will be raised to encourage listed and public companies to invest in green projects to create competitive advantage.

According to Cấn Văn Lực, senior economist at BIDV, there are significant opportunities for the development of green finance in Việt Nam, given that the legal framework for green credit, stocks, bonds and investment funds is gradually being formed.

The country’s green growth strategy also requires significant resources from credits and securities, while the commitments at COP26 require the country to heavily invest in renewable energy, waste management, green agriculture, low-emission transportation, water management and climate change adaption.

The readiness of international funding for green growth is also an advantage for Việt Nam. However, it is a pressing issue for Việt Nam to develop green finance products, including green credits and green stocks to capture the opportunities.

Lực said that the Government should early issue green taxonomy which would clarify sectors and industries to be prioritised as well as organisations which are capable of certifying green standards.

Detailed mechanisms, standards and approaches to measure greenhouse gas emissions were also needed to raise appropriate policies for different industries.

Policies should also encourage changes in behaviours towards green production and consumption.

In addition, a green finance ecosystem following 5I models: Instruments – Investors – Issuers – Internal governance culture – Information should be put into consideration for taking shape in Việt Nam.

The formation of the carbon credit market must be accelerated, he stressed.

From the perspective of enterprises, Diệp Kim Hoàn, director of sustainable development at Deep C Industrial Zone, said that companies expected a clear set of criteria to determine whether a project is green or not, together with support policies in terms of interest rates, debt payment extension and credit guarantee with streamlined procedures.

A green investment fund should be set up to provide finance to SME projects, especially in terms of renewable energy, waste management and nature-based infrastructure.

As of the end of June, outstanding green loans were estimated to total nearly VNĐ680 trillion ($27.5 million), or 4.5 per cent of the total outstanding loans in the economy.

From 2019 to June 2024, Việt Nam issued around $1.16 billion worth of green bonds. 

New programme gives guidance on import-export regulations

A training programme giving guidance on regulations governing the import and export of industrial goods to markets with which Việt Nam has signed Free Trade Agreements (FTAs) took place on Tuesday.

The event was aimed at supporting businesses in effectively utilising signed FTAs ​​as well as updating their knowledge of regulations related to import and export activities, given that Việt Nam participates in a slew of FTAs with many different countries.

Thus far, Việt Nam has had trade relations with more than 200 markets and has signed 17 FTAs ​​with 60 economies around the world. These FTAs have created favourable conditions for Vietnamese enterprises to expand and access the global market.

In Hà Nội, companies have achieved some positive results in taking advantage of opportunities from FTAs. However, the proportion of exports to FTA markets is still very modest and not commensurate with the capital city's potential, said Trần Thị Thanh Hoa, a representative of the Hà Nội Department of Industry and Trade.

Part of the reason is that the markets in FTA countries are highly competitive and Vietnamese businesses face many challenges, including technical barriers like high quality standards, environmental protection and sustainable development, commonly known as green standards, she added.

Through this training programme, the organising committee hopes that businesses will gain useful and updated knowledge to implement in their businesses and allow them to take full advantage of the country's FTAs. 

Budget revenue rises 13% in eight months

The General Department of Customs on Tuesday announced that the State budget revenue from import-export activities reached VNĐ274 trillion (US$11.3 billion) in the first eight months of the year, equal to 73.1 per cent of the assigned estimate and up 13.1 per cent year-on-year.

The total value of import-export goods reached $511.11 billion in the eight months, up 16.7 per cent over the same period last year.

Over the period, the country's trade balance of goods had a surplus of $19.08 billion, 4.1 per cent lower than the same time period last year.

In addition, the entire customs sector detected, arrested and handled 11,555 cases of violations of customs laws from January to August, with an estimated value of violating goods of VNĐ21.63 trillion.

The customs agency prosecuted 16 cases and transferred 113 cases to other agencies for prosecution. The amount of money collected for the state budget was VNĐ474.8 billion.

The General Department of Customs was assigned by the National Assembly to collect a State budget of VNĐ375 trillion this year. The balance of revenue from import and export activities was VNĐ204 trillion.

Officials said that they would continue to reform customs policies and procedures, ensure state management of customs, prevent and combat trade fraud while improving effectiveness and efficiency in performing the task of protecting national sovereignty and economic security.

At the same time, the Department ensures a complete legal basis for the construction and implementation of digital customs and smart customs models, contributing to facilitate import-export enterprises, support trade promotions and contributing to the country's economic growth target. 

VNA/VNS/VOV/VNN