An energy transition seminar on Norwegian-Vietnamese business partnerships opened in Ho Chi Minh on September 13, hosted by the Norwegian Embassy in Vietnam in collaboration with the Oil, Gas and Coal Department under the Ministry of Industry and Trade (MoIT).

According to experts, the participation and collaboration of the private sector will play a vital role in the implementation of the Vietnamese government’s Power Development Plan VIII with priority to be given to the development of renewable energy.

They also said that the plan is an opportunity for business communities both home and abroad to introduce their expertise and competitive advantages, particularly technology. Specifically, Norwegian energy firms boast strengths in offshore wind power, clean hydro, carbon storage, and liquefied natural gas (LNG).

Deputy Ambassador Mette Møglestue said Norway and Vietnam share a determination to become countries with low carbon by 2050. Energy transition is an inevitable process and all countries on the globe must take efforts to achieve this goal.

Ngo Thuy Quynh, Deputy Director General of Oil, Gas and Coal Department said the Vietnamese Government has always paid attention and set goals for energy development to ensure socio-economic development. The sector has seen strong growth, however it still faces challenges on energy supply and transition.

She shared that success transition to clean energy, greenhouse gas emission reduction, climate change response while ensuring energy security requires great efforts from Vietnam and the support of the international community. Therefore, collaboration between Vietnam and Norway in energy transition, updating clean energy technology measures suitable for the Southeast Asian country’s conditions are essential in the energy transition goal.

The business communities of both sides at the event updated information about the industry such as hiking energy prices, energy security and global warming, among others.

The National Power Development Plan VIII is considered a breakthrough in the energy sector as it shows Vietnam’s determination to gradually eliminate coal-fueled and gas-fired power generation and promote renewable energy to achieve the target of net zero emissions by 2050.

Under the plan for the 2021 - 2030 period with a vision to 2050, only the coal-fired power projects listed in the adjusted Plan VII and those currently under construction will be continued, and there will be no new coal-fired power projects after 2030.

Vietnam targets that by 2050, coal will no longer be used for power generation but biomass and ammoniac instead. Coal-fired power plants aged over 40 years will be closed if they are unable to switch to other fuels.

Meanwhile, renewable energy will receive special priority, expected to account for some 70% of all electricity generation by 2050. Rooftop solar power for self-use will also be facilitated to cover 50% of the roofs of office buildings and civil houses.

To date, almost all Southeast Asian nations have announced net zero emissions pledges, including Laos, Malaysian and Vietnam by 2050; Indonesia by 2060; Thailand by 2065.

Ample room ahead to develop trade opportunities in Latin American market

There is plenty of room for further trade development in the Latin American market for Vietnamese businesses, said economist Mario Schuff of the Argentine Chamber of Commerce for Asia at the Pacific at the Vietnam - Latin America Trade Forum held in Ho Chi Minh City on September 14.

However, Schuff said local businesses must devise concrete plans in a professional manner if they are to make further inroads into the market.

He affirmed the Argentine Chamber of Commerce for Asia and the Pacific is willing to support Vietnamese businesses in introducing their goods to the market, providing legal guidance as well as creating the most optimal conditions possible in order to facilitate the investment activities of these firms.

At the forum, business representatives of Coppel Group, Mexico, Federico Bucher from Cencosud Group in Chile, and Renner Textile and Garment Group in Brazil also provided Vietnamese businesses with useful information relating to seeking ways to penetrate the market.

Simultaneously, they also instructed Vietnamese businesses to identify potential products for each market segment and stringent regulations regarding quality to introduce their products into distribution and retail channels in the Latin American countries.

Ta Hoang Linh, director of the European - American Market Department at the Ministry of Industry and Trade, said over the past five years two-way trade turnover between Vietnam and Latin America has doubled, climbing from US$14.2 billion in 2018 to US$23 billion in 2022.

Most notably, several emerging markets such as Panama, Colombia, and Peru have become bright spots in the country’s trade exchanges with Latin America, recording impressive growth over recent years.

Latin America remains among Vietnam’s most important export markets, especially for advantageous local products such as textiles, footwear, agricultural, and aquatic products, Linh pointed out.

As part of the forum, nearly 30 Latin American and Vietnamese business delegations participated in the direct B2B (business-to-business) session.

At the event, local firms were given the opportunity to gain greater insights into the needs and requirements of Latin American businesses, opening up plenty of opportunities for further cooperation in the future.

Vietnam Airlines Group to offer nearly three million tickets for Tet

Vietnam Airlines Group, comprising of Vietnam Airlines, Pacific Airlines, and VASCO, will put around three million tickets up for sale on domestic and international flights during the upcoming Lunar New Year, known locally as Tet.      

The tickets are set to be for flights running from January 25 to February 24 with the aim of serving increasing travel demands during peak season of the traditional holiday.

Passengers can now buy Tet tickets on the official websites and mobile applications, as well as at ticketing offices of three carriers of Vietnam Airlines Group from September 13.

As many as two million seats, equivalent to 10,300 flights, are to be offered on domestic flights. In addition, the remaining one million seats will serve 4,650 flights on international routes.

As for domestic flights, the airlines will add seats on flights connecting Hanoi, Da Nang, and Ho Chi Minh City with destinations across the country, such as Hai Phong, Vinh, Thanh Hoa, Hue, Quy Nhon, Quang Nam, Pleiku, Da Lat, Nha Trang, and Phu Quoc.

The airline will raise the frequency on key international routes between the nation and Japan, the Republic of Korea, China, Thailand, Singapore, Laos, Cambodia, Australia, France, and Germany.

Passengers are advised to book tickets early to enjoy cheaper prices and guaranteed flight availability. They have also been advised to pay attention to baggage allowances.

The Tet holiday will run from February 8 to February 14, 2024.

Banks start procedures to pay dividends until year-end

Many banks are starting procedures to pay dividends to shareholders from now until the end of the year.

Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank or CTG) is expected to issue nearly 564.3 million shares to pay dividends at the rate of 11.74 per cent, meaning shareholders owning 1,000 shares will receive an additional 117 shares. The expected implementation time is in the third-fourth quarter of 2023.

In addition to the 564.3 million shares to be issued, VietinBank also plans to increase charter capital through issuing shares from the remaining profits from 2021 and accumulated remaining profits until the end of 2016. Specifically, VietinBank will increase its charter capital by VNĐ12.3 trillion through issuing shares to pay dividends. With an expected dividend rate of 22.96 per cent, the bank's expected charter capital after successful issuance is VNĐ66.03 trillion.

The Orient Commercial Joint Stock Bank (OCB) has also announced that it will finalise the list of shareholders to issue bonus shares in a plan to increase capital from equity sources.

With an issuance ratio of 2:1, shareholders owning 100 shares will receive 50 new shares. Thus, OCB will issue nearly 685 million bonus shares, with a total par value of VNĐ6.85 trillion. Accordingly, the bank's charter capital will increase from VNĐ13.7 trillion to VNĐ20.55 trillion.

At Vietnam Export-Import Commercial Joint Stock Bank (Eximbank or EIB), the last registration date to finalise the list of shareholders receiving dividends is September 25, 2023. Eximbank will issue stock dividends at a rate of 18 per cent, meaning that shareholders owning 100 shares will receive 18 new shares. With the issuance number of nearly 265.6 million shares, the bank's charter capital is expected to increase by a maximum of VNĐ2.66 trillion to VNĐ17.57 trillion.

Previously, the Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank or VCB) completed the issuance of nearly 856.6 million shares to pay dividends at the rate of 18.1 per cent in August. The entire number of shares used for dividend payments will officially be traded from September 15.

In July, the City Development Joint Stock Commercial Bank. Ho Chi Minh City (HDBank, or HDB) also issued more than 377 million shares to pay dividends in 2022. The issuance rate is 15 per cent, equivalent to shareholders owning 100 HDB shares receiving 15 new shares.

The Vietnam Prosperity Joint Stock Commercial Bank (VPBank or VPB) is expected to spend nearly VNĐ8 trillion from 2022's profits in the third quarter of 2023 to pay dividends at the rate of 10 per cent in cash.

In addition to VPBank, a number of other banks have paid cash dividends this year, including HDBank (HDB), Asia Commercial Joint Stock Bank (ACB), Tien Phong Commercial Joint Stock Bank (TPBank or TPB), Military Commercial Joint Stock Bank (MBB) and Vietnam International Commercial Joint Stock Bank (VIB). 

Vietnamese stock regulator evaluates algorithmic and robotic trading

The adoption of algorithms, bots, and high-frequency orders for online stock trading are now under scrutiny by Vietnamese regulators.
 
On September 12, the SSC called on securities firms to carefully assess and halt the deployment of robotic tools to execute high-frequency online stock trades.

The rationale behind this move is that while integrating technology into finance is a global trend, boosting liquidity and benefiting the markets, it needs careful consideration in the context of Vietnam.

Representatives from the SSC have openly supported and encouraged securities businesses to leverage technological advancements, be they for developing new products or diversifying their business models.

“However, any innovation or new applications in this domain must ensure compliance with legal standards, transparency, fairness, and most importantly, be suitable for the Vietnamese market landscape,” the SSC noted.

Historically, the trading system of the Ho Chi Minh Stock Exchange (HSX) has experienced bottlenecks due to rapidly increasing order volumes, surpassing the system's processing threshold. However, technical solutions have been implemented in recent years to ensure seamless market operations.

Nevertheless, the watchdog's supervisory activities have noted an emerging trend where technology is used to place orders at a very high frequency. Such activities harbour potential risks and could destabilise the market.

This proactive measure aims to ensure market smoothness and security, preventing unintended negative impacts and safeguarding investors' collective interests.

Interestingly, the use of algorithms, bots, and high-frequency orders has been trialled or adopted in several global stock markets. The decision to apply these technologies or not depends on the legal environment and the technological infrastructure of each stock market.

For Vietnam, the SSC and related agencies are diligently researching and evaluating algorithmic, robotic, and high-frequency trading. They are taking a holistic view, considering the legal norms, the technological status quo of the market, and the infrastructure of individual securities companies.

The primary objective of the regulator, as reiterated by the SSC’s leaders, is to manage market operations within the bounds of the law, ensuring liquidity, transparency, stability, fairness, and most vitally, clarity.

“All solutions, be they services or new products, are encouraged, but they must be tailored to the market's specific conditions. Above all, they should prioritise the collective objectives of the market and the interests of its majority stakeholders, including securities firms, listing and trading registration organisations, and investors,” the SSC said.

Stock tickers continue to gain momentum

Compared to earlier in the year, the ticker prices of many securities firms have seen steady increases of between 38 and 189 per cent, leveraged by the vibrant market performance and leading to a jump in profits.

On September 6, the benchmark VN-Index rose for the sixth consecutive session, reaching 1,245.5 points and creating a fresh new peak after a short correction round.

This means the VN-Index gained more than 200 points – equal to 19.3 per cent – compared to early 2023, and was up 375 points or 43 per cent compared to mid-November last year.

Statistics by VNDIRECT – a major Hanoi-based securities firm – show that listed securities companies saw a 64 per cent jump in their profits in the second quarter of this year, approximating $253 million, and were up 3.5-fold compared to Q4/2022.

This is also the second straight quarter where listed securities firms secured growth after languishing in the red in the second half of last year as the stock market fell from its peak of more than 1,500 points in early April to nearly 900 points in mid-November.

In H1/2023, BIDV Securities JSC (ticker BSI) soared by 182 per cent on-year to reach $11.64 million in net profit.

VIX Securities JSC (ticker VIX) raked in $24.3 million in net profit, up 76.4 per cent on-year.

Some experts, however, noted that in the short term, securities tickers could lose their appeal after the recent spike in their prices.
The equivalent figure for SSI (ticker SSI) in H1 stood at $22.15 million, climbing by 26 per cent, and Tien Phong Securities JSC (ticker ORS) hit $4.64 million, a rise of 19.5 per cent.

Saigon-Hanoi Securities JSC (ticker SHS) counted nearly $7.68 million in profit in H1, compared to the $2.87 million in losses it endured during the same period in 2022.

Similarly, Viet Dragon Securities (ticker VDS) pocketed around $6.8 million in net profit, compared to loosing $5.4 million one year ago.

Several unlisted securities firms have also eyed staggering business results, such as VPS, which posted $13.24 million in profit in H1, up 4.5-fold on-year.

Truong Quang Binh, deputy head of Institutional Research at Yuanta Vietnam, has attributed the rosy performance of securities tickers over the past months to three main factors.

Firstly, the stock market has rallied, leading to brighter outcomes for the self-trading business of securities firms, and secondly, increased liquidity has resulted in more income potential for these organisations.

Finally, the expectation that the Korea Exchange-developed stock trading system could be operational later this year, bringing a raft of fresh securities products and market opportunities, has prompted investors to pin their hopes on securities tickers.

“I believe the VN-Index can continue its growth momentum and securities tickers will have the impetus to extend their prices over the coming time,” said Binh.

Quynh Trang, a Hanoi-based securities investor said, "Over the year to date, the central bank has reduced the regulatory interest rates four times, leading to lower deposit and lending rates."

This has prompted part of the money flow to shift from deposit channels into securities, which was mirrored by the fact that more than 150,000 new accounts for stock trading were opened in July alone, setting an 11-month record.

“The interest rate is likely to be retained at a low level for the rest of this year, which is a positive sign for the stock market. The price trends seem to have regained momentum and securities tickers still have space for a continued surge,” said Trang.

The research team at Vietcombank Securities JSC recommends investors to splash an additional 20-30 per cent of their account funds into tickers belonging to the sectors that have seen upward trend in recent sessions, including securities stocks.

Some experts, however, noted that in the short term, securities tickers could lose their appeal after the recent spike in their prices.

Therefore, they suggest that investors select tickers from securities firms with a big market share in margin loans, high profits from brokerage services, and those with their own stories.

Tan Hoang Minh properties auctioned by Agribank

Trung Yen Branch of Agribank has announced its third debt auction related to Tan Hoang Minh Group as several of the group's prime Phu Quoc properties, valued at millions of US dollars, are being put up for auction by the bank. Several affiliated companies have also defaulted on loans secured against their real estate assets.
 
Agribank's first auction is related to the debt incurred by Hoang Hai Phu Quoc Real Estate Development JSC, with a starting price of close to VND253 billion ($10.7 million). Hoang Hai is a member of the Tan Hoang Minh Group ecosystem, currently represented by Do Hoang Viet, son of Tan Hoang Minh chairman Do Anh Dung.

Tan Hoang Minh is the main investor in the Hoang Hai Complex – a planned area of over 12 hectares comprising 12 resort hotel plots, 76 town hotel plots, and two 2 commercial service plots. The project is nestled within the vast 34ha tourism and entertainment complex, stretching over 20km of coastline.

Second, there is the debt of Quang Trung Real Estate Investment Co., Ltd, with an initial bid of nearly $2.7 million, which is over $290,000 less than its initial listing. Established in February 2018, its headquarters share the same address in Hanoi with Tan Hoang Minh Group.

Lastly, is the debt of Anh Thang Construction Consultancy Co., Ltd, at its location at the D'.Le Pont D'or building in Hanoi, which stands at a similar price of almost $2.7 million, again, around $290,000 lower than its first listing. Founded in May 2011, it is another project belonging to Tan Hoang Minh Group.

Viet Star Real Estate Investment Company previously held more than 98 per cent of this company's charter capital. However, according to the National Business Registration Portal, the company no longer operates at its registered address.

The Agribank branch in Trang An also recently announced its fourth auction for debts collateralised by land plots within Thien Bao Phu Quoc Resort and Hoang Hai Complex, both in Phu Quoc. These assets are collateral for loans of several businesses.

At Hoang Hai Complex, Manh Loan Construction and Trade Co., Ltd has pledged six land-use rights and associated assets, valued at over $4.4 million as of August 4, with a starting price of $3.8 million.

Meanwhile, on the same day, Mivi Vietnam Trade and Services Co., Ltd secured four land-use rights and attached assets with a book value of around $2.2 million, starting at just under $1.9 million, while Green-Art Landscape Infrastructure JSC collateralised three land-use rights and assets, recorded at nearly $1.6 million, with an initial bid of $1.4 million.

At Thien Bao Phu Quoc Resort, Hanoi Export-Import – Business Investment and Trade Services Co., Ltd pledged a 2,641-square-metre land-use right and its attached assets, valued at close to $2.7 million as of August 4, with a kick-off price of nearly $2.3 million. Xuan Nam Construction Services Co., Ltd collateralised a land-use right and related assets on a 1,885sq.m plot on the same date, which was valued at nearly $1.9 million, commencing at almost $1.7 million.

In 2021, Tan Hoang Minh Group unveiled its plan to develop the 'Non-stop Tourism Complex' at Bai Truong, Phu Quoc, also marketed under the name D’Thien Bao, with a total investment of over $1 billion. The venture spans 34ha, and features a 5-star hotel system, 129 shophouses, 76 villas, and 15 condotel apartment buildings containing between 7,000 and 8,000 units.

Two major banks reduce deposit interest rates to 5.5%

Two major state-run commercial banks, Vietcombank and Agribank, have lowered their deposit interest rates to 5.5% per year, matching the lowest level recorded during the Covid-19 pandemic.

Vietcombank and Agribank have both cut their deposit rates by 0.2 or 0.3 percentage point for deposits with a term of three months or longer.

As of September 14, the interest rates offered at the counters of these two banks are identical. For one-month deposits, the rate remains at 3%.

For three-month deposits, the rate has been revised down from 3.8% to 3.5% per year, while the rate for deposits with six or nine-month tenures is 4.5% per year, down by 0.2 percentage point.

Rates for deposits with a twelve-month term have also been revised down by 0.3 percentage point, resulting in a rate of 5.5% per year.

Vietcombank now offers online deposit rates similar to savings interest rates at the counter. At Agribank, online rates for deposits with several short terms are higher than at-the-counter rates, but the highest deposit rates do not exceed 5.5% per year.

Compared to the beginning of this year, deposit rates offered at these two state-run banks have been lowered by 1.5-2 percentage points, reaching a record low of 5.5% per year.

Interest rate subsidy package disbursement below expectations 

The disbursement of the 2% interest rate subsidy package in Vietnam has not met expectations, as a mere 1.7% of the VND40-trillion package has been paid out so far, according to the State Bank of Vietnam.

Commercial banks have allocated VND681 billion, leaving a significant gap between the intended support and the actual disbursement.

Several factors have contributed to the slow progress, including concerns among businesses and banks regarding the cost-benefit balance. The paperwork, documentation, and compliance checks needed to access the 2% interest rate support have deterred some potential beneficiaries.

Furthermore, evaluating the potential for “loan recovery” within a complex global and domestic economic context filled with uncertainties has added to the delay. Changes in economic and social conditions since the policy’s inception have altered the needs and priorities of businesses.

To address the situation, the State Bank of Vietnam has communicated the outcomes of the program’s execution to the Ministry of Planning and Investment. This may lead to potential adjustments in the allocation of funds to alternative support policies.

On a more positive note, progress has been better in other credit packages. The VND120-trillion credit package for social housing has seen 12 provinces identify 25 qualified projects requiring over VND13 trillion in loans. Leading provinces like Binh Duong, Bac Ninh and Bac Giang have significant loan requirements for these projects, totaling VND6.4 trillion.

Additionally, the VND15-trillion credit package for the forestry and aquatic sector has made positive disbursement results, with banks disbursing nearly VND800 billion from this credit package within 20 days of its implementation.

U.S. POR19 review gives hope to Vietnam tra fish exporters

Trade prospects for the Vietnamese tra fish export sector in the U.S. look bright following the positive outcome of the 19th administrative review of anti-dumping duty on frozen fish fillets imported from Vietnam (POR19).

The Federal Register on September 7 released the preliminary results of POR19, which assesses anti-dumping duty on frozen tra fish fillets which Vietnam exported to the U.S. between August 1, 2021 and July 31, 2022. These results showed favorable tariff reductions for exporters in Vietnam.

Vinh Hoan Corporation now enjoys a zero duty while others will benefit from a lower rate of US$0.14 per kilogram. These companies include Can Tho Import Export Seafood JSC, International Development & Investment Corporation, Cafatex Corporation, Loc Kim Chi Seafood JSC, and Hung Vuong JSC.

China is currently Vietnam’s top tra fish market, and the U.S. is also a major market, accounting for around 22% of Vietnam’s total tra fish exports since 2019.

However, the first half of 2023 has been tough for Vietnamese tra fish exports to the U.S. due to inflation and global economic uncertainties.

As of August 15, Vietnamese tra fish shipped to the U.S. had reached US$169 million, a steep fall of 59% compared to the same period in 2022.

AgroViet 2023 opens in Hanoi, promoting agricultural products, technology

The 23rd Vietnam International Agriculture Trade Fair (AgroViet 2023), themed "Connecting Value Chains, Developing Ecological and Sustainable Agriculture", opened in Hanoi on September 14.

Hosted by the Ministry of Agriculture and Rural Development (MARD), the annual event is a pivotal gathering for Vietnam's agriculture sector, serving as a platform for both domestic and international agricultural businesses to showcase their products, highlight technological innovations, and strengthen business ties.

The three-day event features approximately 200 booths presenting high-quality products from regions in Vietnam as well as from countries such as China, the Republic of Korea, Australia, Russia, and ASEAN nations.

Meanwhile, on the same day, in Ho Chi Minh City, the European – American Market Department under the Ministry of Industry and Trade organised a workshop on bringing Vietnamese agricultural products and processed food to foreign distribution networks.

Nguyen Thao Hien, Deputy Director of the department, said that Vietnam has made breakthroughs in exporting agricultural products over recent years despite difficulties and changes in the world market and supply chains.

Vietnam has the advantages of geographical location, favourable natural conditions, and incentives from 15 bilateral and multilateral free trade agreements (FTAs) with many partners around the world. The Southeast Asian nation has maintained the growth of agricultural, aquatic, and food export turnover at double-digit rates for years and it export value reached 53.2 billion USD in 2022. Many product groups saw a turnover of over 2 billion USD such as wood, seafood, coffee, rubber, rice, cashew, and vegetables.

In 2022, Vietnamese agricultural products such as fresh bananas, sweet potato, bird's nest, grapefruit, longan, passion fruit, and durian were eligible to export to developed and high-standard markets around the world.

In 2023, despite challenges, including high inflation in major export markets, Vietnam's export turnover of agricultural, forestry, and fishery products is forecast to surpass the amount of 50 billion USD. Currently, Vietnam is the world's largest supplier of cashew nuts and pepper, and the third largest supplier of rice, and coffee.

The export of vegetables and fruits is a bright spot in Vietnam's exports of agricultural products. Total exports are expected to reach the historic milestone of 5 billion USD in 2023.

Le Thanh Hoa, Deputy Director of the Department of Quality, Processing, and Market Development under the Ministry of Agriculture and Rural Development, said that Vietnam has strengths in agricultural production and Vietnamese agricultural and food products are present in over 190 countries around the world.

However, most of the products are exported in the form of raw and semi-processed materials. Few of them are high value-added products or developing branding to access large-scale distribution chains.

According to Hoa, for Vietnamese products to better penetrate international distribution systems, Vietnam's agriculture and food industry must quickly improve institutions and build a system of standards and technical requirements that are appropriate to the current situation and integration.

The country needs mechanisms to allocate and mobilise resources for training, managing, and supporting producers to ensure food quality and safety at all stages from production, harvesting, preservation, processing, and consumption in domestic and overseas markets.

In addition, it’s necessary to regularly update regulations, market analysis information, and consumer tastes to develop appropriate products, Hoa said.

Forum highlights Vietnam-Latin America trade cooperation opportunities

The trade and investment ties between Vietnam and Latin America have been continuously growing and expanding despite difficulties at times in the region's markets and the vast distance between the two regions, heard a forum in Ho Chi Minh City on September 14.

The Vietnam-Latin America Trade Forum took place within the Vietnam International Sourcing 2023 jointly held by the Ministry of Industry and Trade (MoIT) and the municipal People’s Committee.

It provided updates on economic and trade situation in Latin American nations and market developments, thus identifying opportunities and solutions to boost Vietnam’s exports to the region.

Ta Hoang Linh, head of the MoIT’s Europe - America Market Department, noted that trade between Vietnam and Latin America almost doubled to 23 billion USD last year from 14.2 billion USD in 2018.

Notably, apart from traditional markets like Brazil, Mexico, Argentina and Chile, Panama, Colombia and Peru have emerged as bright spots in trade ties between Vietnam and the region, he stressed.

The region has imported Vietnamese garments-textiles, footwear and agro-fishery products, while exporting materials to Vietnam, serving the Southeast Asian nation’s production, Linh added.

The official pointed to economic reciprocity of Vietnam and Latin America as well as their capacity of engaging in efforts in handle challenges relating to food security and energy, and of participating in the global supply chains that are being restructured.

However, the bilateral trade value has yet to match its potential, he said, stressing a string of challenges to their business cooperation such as the far geographical distance, the lack of direct transportation routes, high logistics costs, language barriers and the limited access to market information.

The participating Latin American businesses spoke of ways to help Vietnamese enterprises identify export items for each market, satisfy set standards,  and approach Latin American retail groups.

Vietnam gives highest priority to developing ties with Laos: PM

Prime Minister Pham Minh Chinh has told Lao Minister of Planning and Investment Khamchen Vongphosy that Vietnam always attaches great importance to and give the highest priority to maintaining and developing its special relationship with Laos, considering it as a valuable asset with an important role in the revolutionary cause in each country.

Receiving Khamchen, who is also head of the Committee for Laos-Vietnam Cooperation in Hanoi on September 14, PM Chinh asked the two Ministries of Planning and Investment and the two cooperation committees to work more closely together and urge other ministries, sectors and localities to actively promote their collaboration mechanisms, while strengthening the efficiency of the cooperation committee mechanism.

The two sides should coordinate closely in preparing for the 46th meeting of the Vietnam-Laos Inter-Governmental Committee, and completing the Vietnam-Laos cooperation plan for 2023, contributing to concretising agreements reached by senior leaders of the two countries with specific results and new breakthroughs, he said.

Particularly, the two sides should strengthen economic connectivity, especially connections in transport, consider deploying Vientiane-Vung Ang railway project, remove difficulties facing major joint projects and launch new cooperation projects, he said.

He stressed the need to promote investment activities of businesses of the two sides with suitable mechanisms and policies, while optimising each other’s advantages to supplement each other in terms of markets and materials, and rolling out measures to enhance two-way trade.

The Vietnamese leader suggested the two sides continue strengthening their political-diplomatic relations and meetings among leaders of ministries, sectors and localities; promoting cooperation in security and defence; coordinating in ensuring political stability, social security, safety and order in each country, especially along the shared border, and collaborating closely at multilateral forums.

For his part, Khamchen briefed his host on the outcomes of the mid-term meeting of the Cooperation Committee between the two countries. He proposed Vietnam continue supporting Laos in performing the role of ASEAN Chair in 2024.

The minister affirmed that the Lao Ministry of Planning and Investment and the Laos-Vietnam Cooperation Committee as well as himself will continue to work hard to foster collaboration between the two countries and concretise agreements and directions of senior leaders of the two nations, thus bolstering the great friendship, special solidarity and comprehensive between the two countries.

PM Chinh pledged that Vietnam always stands side by side with Laos and supports the neighbouring country in successfully performing the role of ASEAN Chair 2024.

Vietnam, China’s Hong Kong boost economic cooperation

Vietnam always rolls out red carpet for foreign investors, including those from Hong Kong (China) to invest in the country in the spirit of “harmonising interests and sharing risks”, Minister of Planning and Investment Nguyen Chi Dung said while attending the 8th Belt and Road Summit held in Hong Kong on September 13.

Describing the Vietnam – China cooperation within the Belt and Road Initiative (BRI) significant to bolstering regional connectivity, Dung said that his ministry and China’s National Development and Reform Commission are accelerating negotiations for the plan to connect the “Two Corridors, One Belt” initiative with the BRI.

He also underscored Vietnam’s three breakthrough strategies on institutional reform, infrastructure development, and improvement of human resources quality, adding the country is paying due heed to promoting digital transformation and green transition to achieve the target of net-zero greenhouse emissions by 2050, and become a developed nation with high income by 2045.

The minister went on to say that Hong Kong has an important role to play in connecting Vietnam with the region and many powers such as the EU and the US, especially in the fields of science-technology, innovation, finance, trade and logistics.

Meeting with Chief Executive of the Hong Kong Special Administrative Region John Lee Ka-chiu, Dung expressed his hope that Vietnam and Hong Kong will work together to develop financial hubs, while promoting innovation activities in the Southeast Asian country.

Science-technology, education-training, and labour are also potential fields for the two sides to boost cooperation, he added.

Dung said he hopes that Lee will visit Vietnam at a suitable time to study and promote investments between the two sides.

Lee, for his part, voiced his delight to see the goodwill of the two sides to enhance collaboration, pledging to create favourable conditions for businesses from the two sides to cooperate in the fields of finance and investment.

Hong Kong stands ready to invest in infrastructure development projects in Vietnam, he said, adding that his administration will consider to increase the number of scholarships for Vietnamese students under the BRI, and enhance the exchanges of excellent students.

Lee said he will arrange to visit Vietnam soon, and expects a visit to Hong Kong by Vietnamese leaders.

Dung also had working sessions with many Hong Kong businesses, including Sunwah, Swire Pacific, Jardine Matheson, Chow Tai Fook, and Messe Frankfurt. He highlighted the positive aspects of Vietnam, with a stable political environment, sound human resources, and good business climate, and welcomed Hong Kong’s investments in digital transformation, high technology, green finance, and logistics, among others.

Dutch businesses commit to support Vietnam’s net zero target

Dutch businesses are committed to supporting Vietnam in achieving its net zero emissions target by 2050, confirmed the Dutch Business Association in Vietnam.

At the Signify Innovation Day 2023 themed "Green Switch’’, which was organised in Ho Chi Minh City on September 13, Guido van Rooy, Executive Director of the Dutch Business Association in Vietnam, said Dutch companies will actively facilitate this effort by providing a platform for knowledge exchange, collaborative initiatives, and strategic partnerships.

“By leveraging these resources, Dutch businesses operating in Vietnam can jointly adapt their strategies and actions to the Vietnamese market. This concerted effort demonstrates our dedication to environmental responsibility and fosters a strong and mutually beneficial relationship between the two countries,” he said.

Participants discussed Vietnam’s sustainable development and how Dutch businesses in the country can help pave the way for a greener future.

Speakers and participants strongly agreed that the commitment to “zero net emissions” needs to be realised by balancing economic development and resource protection. 

The discussion also touched on potential solutions from large enterprises, including a focus on lighting technologies, which allow stakeholders and industry leaders to see how green lighting solutions can lead to more sustainable development. 

Sharing at the event, Phung Hoai Duong, General Director of Signify Vietnam, said that switching from traditional lighting systems to LED lighting systems presents a substantial opportunity for cost savings. 

“The transition is estimated to result in an 80% reduction in electricity, equivalent to cutting hundreds of tons of CO2 and saving 6.3 million VND (260 USD) for each tonne of CO2 cut. Residential areas, in particular, stand to benefit from a potential reduction of 276 tonnes of CO2 emissions, saving over 1.7 trillion VND (70 million USD),” he said. 

The savings are in line with the Government’s call for reduced electricity use of 2% annually and power losses in transmission lines to less than 6% by 2025. By 2030, at least 50% of all office and residential buildings should use rooftop solar power and only LED bulbs should be used in street lights by 2025.

“By converting from traditional lighting systems to smart lighting systems, not only large businesses but also domestic and foreign individuals and organisations can contribute to the goal of green growth. 

In addition, partnering with companies that have achieved carbon neutrality will create a greater competitive advantage to help businesses meet emissions targets, including all indirect emissions throughout the entire supply chain, while promoting customer trust and loyalty. This, in turn, attracts high-level talent, thereby increasing competitiveness in many fields from business to export, Duong told the event. 

During the event, participants were introduced six light innovations which promote the pioneering journey of green transformation.

One of the six is smart office lighting with connected LED lights, integrated sensors and interact office software, which enhances workspaces by providing detailed data on occupancy, space optimisation and savings. 

Technology that simulates natural sunlight was also introduced. The innovation helps improve health and development by supporting the body's circadian rhythm, keeping a person active during the day and well-rested at night.

Another solution is artistic lighting and enhancing public beauty with the Interact Landmark system that helps control light remotely, suitable for day and night needs, saving up to 30% energy at night when the road is empty or as needed. 

By controlling street lighting with remote management capabilities, the system allows users to easily maintain and monitor the entire system. In particular, with accurate data from the system, users can also adjust lighting to suit each area. In addition, solar street lights help reduce carbon emissions by taking advantage of solar energy and can turn lights on and off automatically based on the actual light source.

The other solutions are industrial lighting and smart lighting for homes.

HCM City hosts 100 CEOs to rev up green, circular economy model

Leaders of Ho Chi Minh City on September 14 met 100 CEOs from large corporations involved in the green, circular economy model as part of the Ho Chi Minh City Economic Forum which is running with the theme of “Green growth - The Journey to Zero Emissions”.

Addressing the event, Phan Van Mai, chairman of Ho Chi Minh City People's Committee, emphasised that with a population of 10 million, the southern city is a leading economic, cultural, educational, scientific, and technology hub of the country.

The city has always exerted great efforts in a bid to build a convenient, safe, and effective working environment for both people and businesses, he said.

However, the locality is also facing challenges such as climate change, traffic congestion, a human resource shortage, and the impact of cyclicality in economic development, he added.

In response to these challenges, Mai said Ho Chi Minh City is restructuring its economy, with a primary focus on developing the green economy as the driving force for sustainable growth and development.

Currently, the city is proposing a strategic framework for green development and is fully committed to allocating its resources in a bid to achieve net zero emissions by 2050.

Accordingly, the green development framework towards 2030 with a vision to 2050 puts people and businesses at the centre of transformation, focusing on green human resources, green infrastructure, green behavior, and pioneering fields for green transformation, especially a pilot project to turn Can Gio district into the first green locality.

The municipal leader expressed hope that relevant stakeholders, experts, and CEOs would continue to offer their opinions to improve the framework as soon as possible.

Aside from the strategic framework, the city expects to listen to various opinions and recommendations on a number of issues such as green energy conversion, green transportation, wastewater treatment, and carbon credits, Mai noted.

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