HCMC authorities have announced plans to clear 90 hectares of coastal mangrove forest to make room for the Can Gio International Transshipment Port project.

As outlined in the project proposal, the Can Gio International Transshipment Port requires a total of 571 hectares of land. Of this, 90 hectares of mangrove forest would have to be cleared, including nearly 83 hectares of natural mangrove forest and seven hectares of land without trees. The project would also utilize 481 hectares of water surface.

The proposed Can Gio International Transshipment Port in Thanh An Island, Can Gio District, is strategically positioned to accommodate super large container vessels, including those with a capacity of 250,000 tons.

The estimated cost of the project is US$5.45 billion, with phased completion expected by the end of 2045.

However, concerns have arisen regarding the possible impact of the project on the environment. The project location is part of the buffer zone for the Can Gio Mangrove Biosphere Reserve, and the development must align with regulations governing biosphere reserves. These regulations allow economic activities if conducted with consideration for the natural landscape, requiring authorization from appropriate authorities.

To address environmental concerns, the project team will have to thoroughly examine and assess the specific forested area planned to be converted for the port construction. Additionally, the project will be planned to ensure that over 10% of the land area is designated for greenery, supporting mangrove forest preservation and overall environmental sustainability.

HCMC officials anticipate significant investment and job creation through the Can Gio International Transshipment Port. The project is expected to employ 6,000 to 8,000 workers directly at the port, with tens of thousands of additional jobs in logistics, support services, and customs duties.

Once operational at its designed capacity, the project will contribute substantially to the state budget through activities such as loading and unloading, warehousing, corporate income tax, and various maritime fees and charges. The revenues generated from water surface leasing and import-export duties alone could total VND34-40 trillion annually.

Agriculture seen as economic pillar

With stable development, the agriculture sector has been seen as a spotlight and a solid pillar for the economy during an economic slowdown.

Officials made the remarks at a regular government meeting on September 9 in Hanoi City, reported the government news site Baochinhphu.vn.

Farm produce exports totaled US$33.21 billion from January to August, with a surplus value of US$6.72 billion.

The manufacturing sector improved further in August, with the index of industrial production inching up 3% versus July and against the same period last year.

In addition, the manufacturing sector returned to growth in the month, with the S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) rising to 50.5 in August. This marked the first time it had crossed the 50.0 no-change mark in six months, indicating improving business conditions in the sector.

The Government report showed Vietnam’s macroeconomic landscape remains stable, with inflation under control. Vietnam’s Consumer Price Index (CPI) averaged a 3.1% increase in the first eight months against the National Assembly’s target of 4.5% for the whole year. This allows the nation to further fuel economic growth and stimulate demand through monetary and fiscal policies.

There were more than 14,000 newly established businesses in August, 2.3% higher than the number recorded in July and 6.6% higher in terms of registered capital. In the eight-month period, the number of new market entrants surpassed that of firms exiting the market by a ratio of 149,400 to 124,700.

Regarding foreign investment, total pledged capital in January-August increased by 8.2% year-on-year to US$18.15 billion. Foreign investors disbursed US$13.1 billion in this period, up by 1.3% year-on-year.

Power outage in northern Vietnam possible next dry season

Northern Vietnam is facing a possible electricity shortfall of up to 1,770 MW in the worst-case scenario of low water levels in hydropower reservoirs, amounting to one-tenth of the power demand expected in the upcoming dry season.

The Ministry of Industry and Trade presented this forecast in a recent report to the Prime Minister concerning the power supply for 2024. The report outlined two scenarios based on the actual supply and demand of electricity this year and its projected growth.

In the first scenario, normal water inflow into reservoirs is anticipated, ensuring sufficient power supply for both businesses and households. However, certain areas in the northern region may experience power outages during the dry season due to a lack of reserve capacity to meet increasing demand.

The second scenario involves low water levels in reservoirs, similar to what was witnessed during this year’s dry season. During peak hours in June and July, there might be a power shortage of 420-1,770 MW, posing a significant challenge to power security in the north. This shortfall represents only a third of this year’s power shortage.

Experts are concerned that the northern region will face an electricity shortfall over the next two years due to the absence of additional power supply sources, coupled with an annual 10% increase in power consumption.

According to Nguyen Tuan Anh from the Vietnam Energy Association, coal-fired power plants can generate 3,100 MW by 2030, covering one-third of the demand.

The shortage of power remains a significant challenge for the north in the upcoming time, as several planned projects, such as An Khanh, Na Duong 2, and Cam Pha, are either delayed or have halted investment.

Seafood demand forecast to improve further

Experts have forecast an upswing in demand for seafood imports in China and Japan in the upcoming months, while the global seafood market is gearing up for a surge during the year-end festive season.

Insiders predicted growth prospects for the seafood industry during a conference focused on strategies for adapting aquaculture to evolving market conditions, organized by the Ministry of Agriculture and Rural Development on September 9.

Data from the ministry showed that seafood export value totaled US$5.68 billion in January-August, up a significant 25% against the same period last year. Although the sector still faces negative growth, the decline has slowed compared to the beginning of the year.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the value of seafood outbound shipments amounted to US$767 million in June, and increased to US$778 million in July and US$846 million in August, a respective year-on-year decrease of 24%, 17.5% and 15%. August saw the lowest negative growth rate in the past six months.

VASEP advised businesses to prepare for an extended period of uncertainty and prioritize maintaining a skilled workforce to meet production demands during the recovery phase.

In light of reduced demand in major markets, enterprises and associations are intensifying promotional and trade initiatives to exploit the untapped potential of various markets, including niche ones.

Vietnam seeking ways to addressing problems in supporting industry

Despite great potential, the national supporting industry is still rather weak. This is the conclusion drawn from the ‘Connection Meeting for the Supporting Industry’, held yesterday in Da Nang City.
 
Accordingly, the domestic manufacturing and processing industry accounts for 16 percent of GDP. In 2022, Vietnam has 6,000 businesses working in the supporting industry, 88 percent of which are small and medium-sized enterprises.

At present, the supporting industry in the country still faces various obstacles. Chairman Do Huu Hao of the Vietnam Mechanical Association said that the supporting industry cannot satisfy the demands of the manufacturing and assembling industries, especially when providing machine parts for corporations with foreign investment.

The number of specialized companies is limited, plus most businesses in this industry are of small scale and thus are not capable of improving their production technologies. Adding to that is the inadequate level of both workers and company leaders even though this factor is the key to deciding proper trading strategies as well as operation methods.

Deputy Director General Pham Tuan Anh of the Industry Agency (under the Ministry of Industry and Trade) informed that there are no specialized laws for the industries of manufacturing, processing, and supporting. Other related policies, strategies, plans for the development of the industry sector and its sub-sectors in particular are rather inadequate, whereas policies to direct and help the growth of industry are ineffective.

To tackle the problems, meeting participants proposed making policies for the growth of the supporting industry more practical, developing strategies to help exports of key industrial products, establishing a linkage cluster between the mechanical engineering industry and the supporting one in the Central region, allocating suitable resources for the growth of foundation industries, logically exploiting current resources.

Over US$997 million not yet refunded to businesses

Ho Chi Minh City tax authority reported nearly VND24,000 billion (over US$997 million)that has not yet been refunded to businesses at a working session with the Ho Chi Minh City National Assembly delegation.

The Ho Chi Minh City National Assembly delegation led by Van Thi Bach Tuyet, Deputy Head of the delegation, yesterday had a working session with administrators in District 5, the Ho Chi Minh City Tax Department and the Customs Bureau on the implementation of the Law on Tax Administration from July 1, 2020 to June 30, 2023.

According to the Ho Chi Minh City Tax Department, it has received 7,781 applications for refund requests and the refund amount will be equal to VND 54,261 billion. The tax authority has issued 4,916 tax refund decisions or they have refunded an amount of VND30,626 billion; however, nearly VND24,000 billion has not yet been refunded to businesses because Deputy Director of Ho Chi Minh City Tax Department Nguyen Tien Dung said that the tax sector has recently discovered that many businesses took advantage of the loophole in the tax refund policy, establishing businesses and chains of businesses to buy and sell invoices around, offering tax refunds for personal gain.

Therefore, the Ho Chi Minh City Tax Department recommended the National Assembly, the Government, and the Ministry of Finance to allow tax authorities to have the right to investigate and verify when there are signs of risk in tax management in general and tax refund in particular. Moreover, the related ministry and responsible agencies should supplement regulations on inspection first and tax refund later for tax refund requests of large amounts of money.

To deter people from taking advantage of the open business registration policy to set up businesses to buy and sell invoices for profit, the tax authority in Ho Chi Minh City proposed that legal representatives of a business must identify themselves in the e-identification app VNeID when they register to use electronic invoices.

Related to tax refunds, the Ho Chi Minh City Customs Department recommends that the new value-added tax refund is an increased opportunity that should be carried out by local tax agencies.

Billion-dollar deals signed during US President Biden’s visit to Vietnam

 During President Joe Biden's visit, numerous Vietnamese companies have successfully secured cooperation agreements and investment deals amounting to billions of dollars with major US corporations.

US President Joe Biden's state visit to Vietnam on September 10-11 provides an opportunity for both nations to bolster their relations in various sectors, including investment, innovation, chip technology, semiconductors, and sustainable transportation.

During this visit, several investment cooperation agreements and initiatives were inked by Vietnamese and US companies to advance Vietnam-US Comprehensive Strategic Partnership. For instance, the national flag carrier Vietnam Airlines and Boeing signed a $10 billion memorandum of understanding in the aviation services sector, which involves the purchase of fifty 737 Max aircraft. These aircraft are expected to be delivered between 2027 and 2030.

Vietjet Airlines also entered into a $0.55 billion aircraft sponsorship agreement with Carlyle, a prominent US financial group. Under this arrangement, Carlyle Aviation Partners, a division of the Carlyle Group, will provide financial support for Vietjet's order of 200 aircraft from Boeing, including the 737 Max series.

Founded in 2002, Carlyle Aviation Partners is an aircraft finance and leasing company. It manages a fleet of 396 aircraft across 59 countries worldwide, with assets over $385 billion.

Furthermore, Vietjet and Boeing agreed to commence the delivery of the first batch of aircraft from the order for 200 B737 Max airplanes, signed in 2016 during President Barack Obama's visit to Vietnam. This order, valued at over $25 billion, will be fulfilled over the next five years, with the first 12 aircraft scheduled for delivery in 2024.

In the realm of finance and banking, local lender VPBank announced on September 10 that it had secured a $300 million 7-year bilateral loan from the DFC Group. This loan aims to fortify its capital base and advance its sustainable and robust financial activities. Additionally, DFC granted a similar loan of $100 million to TPBank.

These loans are intended to enable both banks to continue their sustainable financial operations, including supporting SMEs and women-owned small and medium-sized enterprises, and shift their investment portfolios towards activities that address climate change and low-carbon emission technologies.

In addition to receiving capital inflows from the US, Vietnamese businesses have also increased their investments in the US market. FPT Chairman Truong Gia Binh announced on September 11 that he plans to invest $100 million and employ nearly 1,000 people in the US by the end of the year. He has also proposed that the US Government foster the semiconductor ecosystem in Vietnam.

Through ongoing investments, FPT expects to create over 3,000 jobs by 2028 and generate $1 billion in revenue from the US market by 2030.

Furthermore, in conjunction with its investment plan, the group has unveiled a comprehensive strategic partnership with LandingAI, a company specializing in machine vision and artificial intelligence (AI) based in Silicon Valley, to expedite the integration of AI into the education system at FPT Education.

Earlier, in the Joint Leaders' Statement elevating the US-Vietnam relationship to a comprehensive strategic partnership, General Secretary Nguyen Phu Trong and President Joe Biden pledged to create favorable conditions and expand market access for each other's goods and services. They also committed to addressing market access barriers through the Trade and Investment Framework Agreement.

Both leaders expressed support for enhancing the non-discriminatory and rules-based multilateral trading system, with a central role played by the World Trade Organization (WTO).

The US pledged to increase support for Vietnam in manufacturing, developing high-quality physical and digital infrastructure, facilitating an equitable energy transition, promoting sustainable and smart agriculture, and assisting Vietnam's integration into regional and global supply chains in a sustainable manner. The US is also committed to supporting Vietnam in training and cultivating a high-tech workforce.

The two nations have unveiled plans to initiate programs for human resource development in the semiconductor sector, with an initial seed funding of $2 million provided by the US Government, alongside support from the Vietnamese Government, the private sector, and potential future contributions.

Vietnam and the US officially reestablished diplomatic relations in July 1995, and the partnership was elevated to a comprehensive level in July 2013. The bilateral trade between Vietnam and the US reached nearly $124 billion last year, marking a remarkable 275-fold increase over 27 years.

The US is Vietnam's primary export market and second-largest trading partner. Conversely, Vietnam is the seventh-largest trading partner of the US globally and the first within ASEAN.

Automobile sales down 9% in August

Members of the Vietnam Automobile Manufacturers Association (VAMA) sold 22,540 vehicles in August, down 9% compared to the previous month, VAMA has reported.

Of the vehicles sold last month, there were 17,335 passenger cars, down 10%; 5,036 commercial vehicles, down 5%; and 169 special-use vehicles, up 14% month-on-month. 

This indicates that the automotive market in Vietnam has faced difficulties in maintaining stable sales, especially in the two key segments of passenger cars and commercial vehicles.

In terms of vehicle origin, the sales of domestically-assembled and imported completely built-up (CBU) vehicles reached 13,118 units and 9,422 units, down 3% and 15% month-on-month, respectively.

In the first eight months of this year, VAMA members sold a total of 184,554 vehicles of all kinds, down 30% annually, with the sales of passenger cars, commercial and special-use vehicles dropping by 34%, 13%, and 61%, respectively.

Besides VAMA member units, the Vietnamese auto market also includes other automakers such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen, and Volvo, but they do not disclose business results.

Meanwhile, Thanh Cong Group (TC Group) announced its sales of 3,145 units in August, and 35,191 in the Jan – August period.

Based on the sales reports from VAMA and TC Group, 25,685 units were sold in August, lifting the total sales in the first eight months to 219,745 units.

Toyota led the market in August with 3,922 units, up 16.7% from the previous month. It was followed by KIA, Huyndai, Mazda and Ford.

Largest-ever delegation of global corporations come to Vietnam

The largest-ever delegation of global corporations is coming to Ho Chi Minh City to join the Vietnam International Sourcing Expo 2023, taking place from September 13-15.

According to Ho Chi Minh City Trade and Investment Promotion Centre (HTIPC), the delegation will contain Walmart, Boeing, Amazon, and AES (US), AEON, Uniqlo (Japan), Carrefour, Decathlon (France), Central Group (Thailand), Coppel (Mexico), IKEA (Sweden), and others more.

Some of them have been operating their business in Vietnam while for other, such as Walmart, it will be an opportunity to seek business operations here.

Organised by HTIPC in coordination with the European-American Market Department of the Ministry of Industry and Trade, the event is a golden opportunity for those global corporations to find partners and suppliers.

An important highlight of the series of connection events is the Export Forum 2023, with the theme “Connecting the international supply chain of goods” held on September 13, with discussions of Vietnam's role in the international supply chain, and finding suppliers in Vietnam.

According to information from the organising committee, this series of events recorded the unprecedented participation of the Vietnamese trade networks and trade branches abroad, as well as major corporations around the world.

The Vietnam International Sourcing Expo 2023 is a series of events aiming to help domestic suppliers further engage in global production and supply chains, adapt to the growing trend of international economic integration, and boost connectivity with foreign distribution channels and importers.

Foreign lenders dominate financials

While local banks grapple with challenges and declining profits, their foreign-invested counterparts are registering stellar performances in Vietnam.

Shinhan Bank Vietnam last week unveiled its financial report for H1, revealing a post-tax profit of about $100.9 million, or 65 per cent of the total profit of the bank in the previous year.

Contributing to this substantial profit, the bank’s return on equity has seen a noteworthy ascent, moving from 14.07 per cent at the start of the year to 17.47 per cent by June 30.

Shinhan’s total equity also stood at roughly $1.165 billion, marking an increase of nearly $101.27 million since the year began.

The bank’s capital adequacy ratio has also experienced a rise, ascending from 17.84 per cent at the start of the year to 20.43 per cent by mid-year.

A slew of other prominent South Korean financial institutions are setting their sights on the burgeoning Vietnamese banking landscape.

In a June visit to Vietnam, Kang Seoghoon, chairman of state-owned Korean Development Bank, underscored the bank’s keen interest in forging partnerships with Vietnamese counterparts, particularly in sectors like high-tech innovation, digital transformation, and green energy.

“Our aim is to set up a KDB presence in Vietnam, facilitating local enterprises in their global ventures. This not only champions job creation but also catalyses economic progression,” he said.

In a parallel move, Industrial Bank of Korea (IBK) is charting its blueprint to establish a legal foothold in Vietnam, with a strategic focus on the small and medium enterprise sector. Chairman and CEO Kim Sung-tae said, “IBK is eager to establish a legal presence in Vietnam, not only to support South Korean enterprises but also to extend assistance to Vietnamese businesses, particularly small- and medium-sized enterprises, across various regions.”

Vietnam’s Deputy Prime Minister Le Minh Khai said, “The State Bank of Vietnam (SBV) is in the process of evaluating licence submissions from potential entrants, a list that includes half a dozen South Korean financial institutions, notably IBK and KDB.”

Meanwhile, foreign-invested bank HSBC Vietnam also painted a rosy picture of its business landscape in the first half of 2023.

The bank reported a post-tax profit of $111.73 million for the initial six months of this year. This figure marks a staggering increase, 2.4 times higher than that of the corresponding period last year. HSBC Vietnam’s net interest income stood out, reaching $168.9 million, a sum that’s 2.6 times its value from the same time frame a year ago.

By the end of June, HSBC Vietnam’s total assets were valued at $8.03 billion, a slight dip from the end of 2022. Simultaneously, the bank’s equity touched $788.7 million, an increase of 17 per cent.

Reflecting this resurgence, HSBC Vietnam’s financial health seems to have rejuvenated after the slump observed between 2020 and 2021. During 2018-2019, profits ranged between $97.05 million and $101.27 million. However, 2020-2021 saw a decrease, with figures hovering between $54.85 million and $63.29 million.

This positive financial trajectory exhibited by Shinhan Vietnam and HSBC Vietnam runs counter to the prevailing gloomy scenario encountered by numerous Vietnamese banks.

“Foreign banks operating in Vietnam are showcasing robust financial health, a reflection of their strategic client selection and rigorous risk management strategies,” an industry insider told VIR. “While many local banks are intertwined with potentially volatile real estate loans, these international entities often adopt a more cautious approach.”

“In addition, their client portfolios predominantly comprise foreign-invested firms known for their strong financial standing and stable operations, thereby steering clear of the pitfalls of riskier loan segments prevalent in the domestic market.”

Cumulatively, in H1 2023, post-tax profits of 27 listed banks receded by 2.9 per cent amid sluggish credit growth environment and rising provisioning costs.

According to MB Securities, the net interest margin of listed commercial banks in Vietnam continued its diminishing trend in Q2 this year.

“This was somewhat anticipated, given that deposit rates, despite decreasing, are still relatively high compared to the pre-pandemic era. Concurrently, lending rates have been continually dropping, reflecting both the low credit demand and the SBV’s directives to support businesses during these challenging times,” MB Securities said.

Meanwhile, Vietcombank Securities also stated that a significant hurdle local banks face is real estate stagnation, leading to shrinking profits. “Real estate has long been the cornerstone of most loan collateral. The current freeze presents unprecedented challenges in bad debt resolution,” the brokerage said.

Pharmedi Vietnam 2023 kicks off in HCM City

Pharmedi Vietnam 2023 - kicked off in Ho Chi Minh City on September 13.

The international health event is of regional scale with a total of 800 booths from 25 countries and territories.

Speaking at the opening ceremony, Nguyen Thi Lien Huong, Deputy Minister of Health, said the exhibition creates a favourable environment for units and enterprises in the field to raise their competitiveness and to strengthen trade promotion activities, digital transformation, and application of advanced technology in health and pharmaceutical industry.

It’s also an opportunity for enterprises to boost linkage, introduce products, and expand business manufacturing while actively contributing to protecting, caring for and improving public’s health.

This year’s exhibition focuses on introducing diverse display industries in the field of health, including products, machinery, equipment, and supplies in the fields of pharmaceuticals and dietary supplement, and raw materials for pharmaceutical production, and many more.

The event has received special attention from businesses from countries with developed medicine such as Poland, Germany, the Republic of Korea, Japan, and China, among others.

Several symposiums, in-depth seminars will also be held during the four-day event.

Further Govt’ support needed for foreign investors, businesses in green growth development

Difficulties in securing investment capital, advanced technologies and inadequate skilled labour resources are some of the challenges faced by Việt Nam in the implementation of the National Strategy for Green Growth for the 2021-23 period, with a vision to 2025, said Nguyễn Văn Đệ, Deputy Chairman of the People's Committee of Nghệ An Province during a seminar on Việt Nam-Japan green growth cooperation in Hà Nội on Tuesday.

In addition, he said Vietnamese farmers also have to adapt to new requirements set by international markets with stiff competition while dealing with the adverse effects of increasingly frequent natural disasters.

Đệ said foreign investors, especially Japanese investors and businesses, could play an important role in addressing the above-mentioned issues.

Foreign firms, however, have long voiced their concerns over a lack of support for green growth projects in the Southeast Asian country.

While praising the Vietnamese government's initiative to improve resource management efficiency and to develop a circular economy, Kinoshita Tadahiro, Director-general of Sojitz Việt Nam, President of the Japanese Chamber of Commerce and Industry in Việt Nam said power supply remains a key concern among foreign companies.

He said some Japanese firms have reported power shortages in recent months in the northern regions of Việt Nam. A solution, which has been put into practice by some firms, was to install solar power on the rooftops of their factories, which according to the firms, could help cut down carbon emissions at the same time.

However, many said large-scale investments in solar panels remain challenging as they have yet to be allowed a license or connection to the national grid and, therefore, are unable to sell their excess power.

Ellen Van, an investment director from Mekong Capital, advised the government to provide additional support to foreign investors and businesses as they are well-positioned to help create positive impacts on the environment, the economy and Vietnamese society.

Vương Thị Minh Hiếu, deputy head of the Department of Industrial Zones under the Ministry of Planning and Investment (MPI), said the Vietnamese government's top priorities in the coming years include pushing for greater administrative reforms to support businesses, Vietnamese and foreign; building green agriculture infrastructure, applying advanced technologies and improving human resources. 

VN-Japan agriculture cooperation aims at 200-300 per cent growth

Việt Nam-Japan cooperation in the field of agriculture could improve by 200-300 per cent in the coming decades, said Nguyễn Đỗ Anh Tuấn, head of the International Cooperation Department under the Ministry of Agriculture and Rural Development (MARD) during a seminar themed "Vietnam-Japan cooperation towards green growth" in Hà Nội yesterday.

Key areas for Việt Nam include improving plant varieties, high-tech production and processing, as well as forest protection, capital investment and mitigating the adverse effects of natural disasters, he said.

Meanwhile, some localities in the country have shown great interest in adopting Japan's high school agriculture education model, which aims to equip students with agriculture knowledge along with high school-level general education.

The model, which has been on a pilot programme in the northern province of Nam Định, has proven to be popular, with students coming from all across the country to register.

Vương Thị Minh Hiếu, deputy head of the Department of Industrial Zones under the Ministry of Planning and Investment (MPI) said the programme was in line with Việt Nam's focus on developing and improving the quality of human resources in rural areas, as well as on attracting foreign investment in the field of agriculture.

In October 2021, the Prime Minister's Office approved the National Strategy for Green Growth for the 2021-23 period, with a vision to 2025, setting a framework for sustainable development on a nationwide scale with clear objectives including a harmonious relationship between pursuing economic activities and preserving the environment, leveraging advanced technologies and human resources towards a green economy.

In order to realise said objectives, Việt Nam had recognised Japan as a key partner as the advanced East-Asian economy possesses the technologies, experiences and capital investment required.

"There is still a lot of potential for future cooperation between Việt Nam and Japan, especially in the fields of green economy and energy transition," said Phạm Quang Hiệu, the Ambassador of Việt Nam in Japan.

On the other hand, the Japanese Government and businesses have identified Việt Nam as an important economic partner and among the most attractive investment destinations in the Southeast Asia region.

Difficulties in securing investment capital, advanced technologies and inadequate skilled labour resources are some of the challenges faced by Việt Nam in the implementation of the national strategy, said Nguyễn Văn Đệ, Deputy Chairman of the People's Committee of Nghệ An Province.

He said Vietnamese farmers also have to adapt to new requirements set by international markets with stiff competition while dealing with the adverse effects of increasingly frequent natural disasters.

Đệ said foreign investors, especially Japanese investors and businesses, could play an important role in addressing the above-mentioned issues.

Meanwhile, foreign firms have long voiced their concerns over a lack of support for green growth projects in the Southeast Asian country.

While praising the Vietnamese government's initiative to improve resource management efficiency and to develop a circular economy, Kinoshita Tadahiro, Director-general of Sojitz Việt Nam, President of the Japanese Chamber of Commerce and Industry in Việt Nam said power supply remained a key concern among foreign companies.

He said some Japanese firms have reported power shortages in recent months in the northern regions of Việt Nam. A solution, which has been put into practice by some, was to install solar panels on the rooftops of their factories, which according to the firms, could help cut down carbon emissions at the same time.

However, many said large-scale investments in solar power remained challenging as they had yet to be allowed a licence or connection to the national grid and, therefore, would be unable to sell their excess power.

Tadahiro asked Electricity Vietnam and the Ministry of Industry and Trade to lay out a legal guideline for foreign firms with renewable energy to join the country's power supply network.

Ellen Van, an investment director from Mekong Capital, advised the government to provide additional support to foreign investors and businesses as they are well-positioned to help create positive impacts on the environment, the economy and Vietnamese society.

Banks made big profits from foreign exchange business

Commercial banks made large profits from spot foreign exchange trading activities in the first half of this year as the difference between the dollar buying and selling price was often high at some VNĐ350-400 per dollar.

Statistics from Q2 2023 financial statements of 28 banks showed the total net profit from foreign exchange trading in the first half of 2023 reached nearly VNĐ12 trillion, an increase of 18 per cent over the same period last year. The rise was more than 7 times higher than the banks’ total operating income growth rate.

The Big4 group, including VietinBank, Vietcombank, BIDV and Agribank, were main earners in the business segment with nearly VNĐ8.3 trillion in net profit from foreign exchange trading in the first half of the year, an increase of 30 per cent over the same period last year, and accounting for 69 per cent of the total net profit of the entire banking industry.

Specifically, Vietcombank continued to lead the banking industry in foreign exchange trading profits when it earned more than VNĐ3.18 trillion, an increase of 6 per cent and accounting for nearly 27 per cent of the total net profit of the entire industry.

VietinBank followed with nearly VNĐ2.35 trillion, an increase of 47 per cent and accounting for nearly 20 per cent of the total net profit of the entire industry.

The value for BIDV and Agribank was nearly VNĐ1.46 trillion and VNĐ1.27 trillion, an increase of 20 per cent and 125 per cent, and accounting for 12 per cent and 10 per cent of the industry's net profit, respectively.

The superiority of the Big4 group in the foreign exchange trading segment is understandable given that this group possesses inherent strengths in the external business segment with a wide network of transactions both domestically and internationally.

The entire profit of forex trading in the Big4 group came from spot foreign currency trading, which is a stable profitable activity with the income source coming from the difference between the spot buying price and the spot selling price. Meanwhile, the selling price of the dollar in the first half of the year was often VNĐ350-400 per dollar higher than the buying price. The Big4 group therefore had a large and stable source of income from spot foreign exchange business thanks to their large transaction scale.

In addition, the banks’ profits also came from the purchase and sale activities of the dollar between the banks and the State Bank of Vietnam (SBV). In the first half of 2023, the SBV regularly maintained the dollar buying price at its exchange by VNĐ100-200 higher than the dollar buying price that commercial banks sold to their customers. With this development, commercial banks only needed to buy the greenback from customers and sold it back to the SBV to get a net profit of up to trillions of Vietnamese đồng. The SBV has so far this year bought more than US$6 billion from commercial banks. 

Vietnam, Russia's Republic of Sakha discuss stronger cooperation

Vietnamese Deputy Minister of Planning and Investment Do Thanh Trung met with Head of Russia's Republic of Sakha (Yakutia) Aisen Nikolaev on September 13 to discuss expanding bilateral cooperation, on the sidelines of the 2023 Eastern Economic Forum (EEF 2023) held in Vladivostok.

Nikolaev noted that Yakutia and Vietnam are moving towards new official relations, with both sides showing their increasing interest in trade collaboration. Two-way trade is on the rise, particularly the potential of increased exports of minerals, gemstones, and agricultural products.

Many firms from the Republic of Sakha have joined trade and industry exhibitions in Vietnam.

The Head of the Republic of Sakha invited Vietnam to the Russia-Asia Arctic Research Consortium, which was created on the initiative of the Northern Forum.

He also extended an invitation to the Vietnamese sports team to participate in the 2024 Children of Asia International Sports Games in Yakutsk, the capital of the Republic of Sakha.

Vietnam, US hold huge potential for energy cooperation: experts

Vietnam sees a good chance to become an important link in the US energy giants’ value chain as there is an increasing number of US firms coming to the Southeast Asian country to seek cooperation opportunities, experts said at the Vietnam – US Trade Forum held in Ho Chi Minh City on September 13.

Spotlighting the robust economic collaboration between the two nations over the past time, Deputy Minister of Industry and Trade Do Thang Hai said that the recent State visit to Vietnam by President Joe Biden, as well as the upgrade of the Vietnam – US ties to the Comprehensive Strategic Partnership have created unprecedented chances to promote new areas of collaboration, which helps Vietnam get a position in global value chains.

With such cooperation, Vietnam will be engaged more in the supply of materials and parts for the fields of energy, aviation, digital economy, semi-conductor ecosystem and artificial intelligence, Hai stressed.

Chairman of the American Chamber of Commerce in Vietnam (AmCham Vietnam) John Rockhold, who is also Chairman of the AmCham Hanoi Board of Governors, said Vietnam, boasting good renewable resources for power generation, has been an ideal destination for US investments.

With the country’s transition to off-shore wind power, supporting industries possibly gain hundreds of billion USD, he said, elaborating that Vietnamese enterprises could join the supply chain, from shipbuilding workshop and foundry to necessary services to support the green power industry.

Meanwhile, Boeing Supply Chain Business Development Manager for Southeast Asia, Japan and the Republic of Korea Maxime Dourdan hailed the Vietnamese market’s important role in Boeing’s business strategy as well as its cooperation opportunities with Vietnamese firms.

He added that Boeing will bolster linkages with the Vietnamese side in such specific fields as helicopters and transportation, development of supply chain of spare parts and equipment for the aviation sector.

For her part, Executive Vice President and General Secretary of the Vietnam Association for Supporting Industries (VASI) Truong Thi Chi Binh said that Vietnamese firms have huge opportunities to join the US’s energy value chain, adding 300 firms under VASI  have successfully exported battery trays, connectors for electric cars, and turbin parts.

Vietnam, Japan explore trade, investment opportunities

The Vietnam-Japan trade cooperation potential is huge, prompting both sides to tap all opportunities to futher expand and broaden bilateral partnership in this field, heard the Vietnam-Japan investment promotion forum held in Tokyo on September 13.

Addressing the event, Co-Chairwoman of the Japan-Mekong Business Cooperation Committee Kakihara Atsuko said that the forum provides a chance for Japanese investors to update Vietnam’s economic, trade and foreign investment attraction situation, as well as information on Vietnamese localities that are calling for Japanese investment.

Vietnam is one of the countries with a high economic growth rate in the world and the region, while the potential for cooperation between businesses of the two countries is high, she underlined, expressing her hope that with the foundation of the growing bilateral ties in many fields, investment cooperation between the two countries will be bolstered in the time to come.

For his part, Vietnamese Ambassador to Japan Pham Quang Hieu said that this year, the two sides have conducted many activities to celebrate the 50th anniversary of their diplomatic relations, including those in trade promotion.

Vietnam is currently a leading destination for Japanese investors who show strong confidence in Vietnam as well as the country’s business prospect after COVID-19 pandemic.

Participants at the event discussed investment and business collaboration opportunities between the two sides. Representatives of Vietnamese localities such as Hung Yen, Soc Trang and Long An answered questions by Japanese firms intending to invest in the localities.

Chairman of the People’s Committee of Hung Yen Tran Quoc Van called for Japanese investment in areas of manufacturing-processing, clean and renewable energy, digital government, digital economy and digital society development, infrastructure, smart urban development, modern agriculture, industrial park, logistics, and finance and banking.

Meanwhile, Permanent Vice Chairman of the People’s Committee of Soc Trang introduced the locality’s strengths in workforce, transport infrastructure, as well as potential of cooperation with Japanese partners in agriculture, tourism, and renewable energy.

At the event, Sai Gon Telecom & Tech (Saigontel) of Vietnam and Valley Campus Japan (VCJ) signed a cooperation agreement on human resources training for high-tech agriculture and information technology sectors.

Vietnam - attractive market for British businesses

The Vietnam Trade Office in the UK on September 13 organised a Vietnam-UK trade promotion workshop in London which saw the participation of more than 60 representatives of Vietnamese and international businesses.

The event came within the framework of the working visit to the UK by a delegation from the Ministry of Industry and Trade from September 10-18 under the National Programme on Trade Promotion in 2023. The programme aims to support businesses to continue expanding markets and boost exports.

Trade Counselor Nguyen Canh Cuong said Vietnam and the UK are complementary economies, and that they have a lot of potential for cooperation.

Le Hong Minh, Director of the Investment Promotion Centre for Industry and Trade, said the Vietnam-UK Free Trade Agreement (UKVFTA) which started to take effects in 2020 has become a bridge to help promote bilateral trade and investment, adding that his office is ready to coordinate with British authorities to implement solutions to support businesses from both sides in connecting, finding partners, and developing cooperation.

At the workshop, participants provided update on regulations for importing goods from Vietnam into the UK, changes in recent consumption habits and tastes of the British people, experience in exporting to the UK market, especially compliance with market standards, and how to take advantage of incentives provided by the UKVFTA.

Ian Gibbons, Chairman of the UK-ASEAN Business Council (UKABC) and former British Consul General in Ho Chi Minh City, emphasised that Vietnamese businesses wishing to succeed in the UK - a highly competitive market - need to build trust and establish long-term relationships with partners and distributors in the UK.

The official recommended that Vietnamese businesses take full advantage of the resources of British organisations in Vietnam and the UK, such as the British Chambers of Commerce in Hanoi and Ho Chi Minh City, and UKABC.

For his part, Giles Whitlam, CEO of Tonkin Products, a British enterprise investing in Vietnam for more than 30 years, said that prices are a competitive factor but not a prerequisite for development in the UK market where consumers are willing to pay high prices for good products.

He emphasising that Vietnamese businesses need to aim for higher quality standards.

Regarding Vietnam's potential, Whitlam affirmed that it is a market with great opportunities for British companies to invest in, with such advantages as a well-trained workforce, competitive labour prices, and Vietnamese partners' willingness to cooperate and learn.

After the workshop, the Vietnamese delegation visited Longdan Group, the largest importer of Vietnamese goods in the UK which is expected to support Vietnamese exporting businesses to promote and bring Vietnamese products into the UK through its supermarket chain.

Green growth exhibition opens in HCM City

An exhibition on green growth, products and services took place in Ho Chi Minh City on September 13 as an activity to open the fourth HCM City Economy Forum 2023, themed ‘Green Growth – Journey to Zero Net Emissions’.

Speaking at the opening ceremony, Vo Van Hoan, Vice Chairman of the municipal People’s Committee stressed that the exhibition aims to create conditions for enterprises, especially small and medium ones (SMEs), to exchange with leading firms both at home and abroad in developing a green and circular production ecosystem, digital technology and transformation, contributing to improving competitiveness and minimising negative impacts on the environment.

The exhibition is expected to help increase awareness of developing a green lifestyle while building a green, smart urban area and creating a sustainable consumption culture among people from all walks of life.

There will be a meeting among city leaders and 100 leading CEOs at home and abroad to discuss solutions to promote green growth in the city.

The five-day event will be attended by 1,500 delegates, including leaders of the Government, international financial institutions such as the World Bank, International Monetary Fund, International Finance Corporation, Asian Development Bank, World Economic Forum (WEF), and local and foreign businesses.

The five-day event will also feature trade and investment promotion exhibitions, as well as business connection activities at Nguyen Hue Walking Street. To ensure public engagement, special art performances will be held every night.

Vietnam has issued the National Green Growth Strategy for the period of 2021-30 with a vision to 2050.

It has also issued a national action plan on green growth for the period 2021-30 and a circular economy development scheme to effectively use natural resources, reduce greenhouse gas emissions and respond to climate change.

HCM City has approved a green growth strategy towards sustainable development by 2030.

The first HCM City Economic Forum was held in 2018. This year's event lasts until September 15.

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