VN is considered a gateway for Canadian companies that want to develop in the Association of Southeast Asian Nations (ASEAN) region.

Director General of the Indo-Pacific Region, Gabriel Chartier of the Quebec Ministry of International Relations and Francophonie, made the statement at a seminar to evaluate investment potential in Việt Nam and the Association of Southeast Asian Nations (ASEAN) region held in Canada this week, as reported by the Vietnam News Agency on September 15.

Themed "Việt Nam, the door to the Indo-Pacific for Quebec businesses", the seminar has attracted the interest of many businesses and entrepreneurs in Canada's province because it offers an opportunity to reassess the level of awareness and utilisation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by Canadian businesses after five years of implementation.

In his opening remarks, Director General Chartier emphasised Quebec's special cooperative relationship with Việt Nam. The companies of the province always have a competitive advantage thanks to their closeness in language and culture.

Việt Nam is currently Canada's largest trading partner in the ASEAN region and a leading destination for Canadian goods exported to ASEAN, Chartier said.

He also stated that the Quebec Government always gives priority to Việt Nam and considers the Southeast Asian country a new intersection in the global value chain because of its potential in key fields, including renewable energy.

At the seminar, Việt Namese Trade Counsellor in Canada, Trần Thu Quỳnh, mentioned that the Vietnamese Government has been promoting investment in infrastructure to strengthen the connection between Việt Nam and Canada in the supply chain.

Quỳnh shared the latest information on the results of economic, trade, and investment cooperation between the two countries after five years of implementing the CPTPP, so that Quebec businesses can consider capitalising on this agreement in their business strategies.

Nguyễn Thị Bé, executive director of the Canada-ASEAN Business Council, said the Council's latest report on development plans in ASEAN indicates that Việt Nam is viewed as the place with the most opportunities in the region.

Canada's participation in the new strategic partnership with ASEAN will further enhance the potential for future trade and investment development.

ASEAN is considered the fastest-growing economic region in the world and is expected to be the world's consumption centre by 2030, owing to its market size. 

The bloc is currently the fifth largest economy in the world and is emerging as a new global hub for trade, exchange, and innovation.

The Indo-Pacific region is currently the second largest international export market for the Quebec province and is also one of Canada's fastest-growing markets in recent years.

The seminar was also one of a series of events celebrating the 50th founding anniversary of diplomatic relations between Canada and Việt Nam and the 30th anniversary of the establishment of the Trade Office in Canada. 

More bank savings expected to flow to stock market in last quarter of 2023

The decreasing savings interest rate has been considered the main factor that makes investors to pour more money into the stock market and the trend is forecast to continue when nearly VNĐ500 trillion of savings come to mature in the remaining months of this year, experts forecast.

Data from Vietnam Securities Depository and Clearing Corporation (VSDC) showed more than 190,000 new securities accounts were opened in August 2023. This was the second consecutive month that saw the number of new accounts reach more than 150,000, the highest level in the past year. Most of them were accounts of domestic individual investors.

Liquidity of the stock market has also been increasing, with a recent session reaching up to US$1.5 billion.

Analysts said the decrease in interest rates will trigger more cash flow and investors to participate in the stock market. Capital flows into the stock market have shown positive signs since the end of the second quarter of this year.

Data from VNDirect Securities Company showed the total amount of idle money of investors at the 30 largest securities companies at the end of June was at about VNĐ61 trillion, down 36 per cent compared to the peak level at the end of the first quarter of 2022 but increasing slightly by 3.2 per cent compared to the previous quarter. The indicator continued to increase in July and August.

According to data from Yuanta Vietnam Securities, savings at banks in the fourth quarter of 2022 increased sharply by 6.4 per cent compared to the previous quarter, especially after the State Bank of Vietnam increased interest rates in October 2022 and the majority of the savings had terms from six to 12 months.

Therefore, Yuanta estimated savings at banks worth about VNĐ496 trillion will mature between June and December 2023 and a part of the savings will likely flow into the stock market in the second half of 2023.

As deposit interest rates are expected to continue to decrease, domestic investors tend to shift their bank deposits to other investment channels, including stocks.

Another favourable factor driving the stock market is that the economic growth rate in the last months of the year is expected to be more positive, which will help business performance results of listed firms rebound after a decrease of 20 per cent in Q1 2023 and 16 per cent in Q2 2023.

In particular, the low comparative base level in H2 2022 will help the growth rate this year with many industries to recover in the remaining months, according to Agribank Securities Company.

SSC to prohibit the use of automated order placement

The State Securities Commission of Việt Nam (SSC) has requested securities companies review and immediately cease the use of automated order placement, according to its latest announcement.

These firms are also asked to implement technical measures to prevent automated order placement and instruct investors to stop using these practices without prior authorisation from regulatory authorities.  

Via the management and supervision of providing online stock trading services, SSC has identified a phenomenon of using robot technology to place large-frequency automated online stock trading orders. This activity carries risks and affects the stability of the stock market.

In particular, the automated placement causes a sudden increase in orders from securities companies to the stock exchange at the same time, surpassing the design capacity of the entire system and causing system overload. 

Moreover, the activity also poses a risk of chain breakdowns when the stock market faces corrections, negatively affecting the risk management practices of securities companies. 

The commission demands that securities companies strictly adhere to and fully assume legal responsibility for the mentioned issues. 

So far this year, the stock market has recovered with gains in liquidity thanks to the strong return of cash flows, while regulatory agencies have carried out measures to manage and develop the market, ensuring stable transactions for investors. 

Market participants are now paying attention to the testing of the information technology system for managing and operating transactions on the Vietnamese stock market.

The final preparation of the system signed by the Hồ Chí Minh Stock Exchange (HoSE) and the Korean Stock Exchange (KRX), is expected to be completed by the end of December.

The Ministry of Finance has directed units to be determined to complete the project and prepare the system to be ready for operation by the end of this year.

The KRX system is expected to bring new products, trading and payment solutions to the Vietnamese stock market, such as intraday trading (T+0), short selling, shortened settlement time, and option contracts. 

As a result, it will create a premise to address bottlenecks and advance the market from frontier to emerging status. 

Forum discusses VN digital roadmap

The fourth industrial revolution, which includes digital transformation, digital economic development, and the rise of a digital society and government, is a key driver for both global and national economic advancement.

Trần Tuấn Anh, a Politburo member and Chairman of the Party Central Committee's Commission for Economic Affairs, made the statement at the inaugural National Forum on Digital Economy and Society Development in Nam Định City, northern province of Nam Định, on Thursday.

The forum was co-chaired by the Ministry of Information and Communications (MIC), the Central Economic Commitee (CEC) and the People’s Committee of Nam Định Province to realise the goals and mobilise initiatives to contribute to the development roadmap of the digital economy and society in Việt Nam.

With the theme "Bringing Digital Platforms to the Household", the event aims to become an annual exchange for State management agencies, businesses, and leading industry experts focusing on digital economy and society development in Việt Nam in accordance with Resolution 52 of the Politburo.

The contribution of the digital economy to GDP was increasing, said Anh.

According to MIC estimates and reports, the proportion of the digital economy in GDP has increased from 11.91 per cent in 2021 to 14.26 per cent last year and reached about 14.96 per cent in the first six months of this year.

The e-Connomy SEA annual digital economy report researched by Google and Temasek announced that Việt Nam's digital economic growth rate was 28 per cent last year, leading among Southeast Asian countries.

There were more than 1,400 Vietnamese digital technology enterprises last year with revenue from foreign markets, a year-on-year increase of nearly 20 per cent.

Investment in digital infrastructure rose, many digital platforms continued to be developed. Sixty mobile platforms and applications serving the people of Việt Nam have over 1 million monthly users, an increase of nearly 10 per cent compared to the same period last year.

The total number of monthly users on Vietnamese mobile applications exceeded 500 million in the first six months of this year, rising nearly 16 per cent year-on-year.

In addition, a new bright spot in digital society development in localities in the first six months of this year is that some provinces have had the number of payment accounts opened at banks or other licensed organisations exceed the average population level of the province, including Thái Nguyên, Ninh Bình, Quảng Nam, Quảng Ngãi, Đắk Nông, Long An, and Kiên Giang.

On behalf of the Party and State leaders, the Chairman of the Party Central Committee's Commission for Economic Affairs acknowledged, praised and appreciated the efforts, determination and results achieved by all levels, sectors, localities, the business community and people, making an important contribution to the national digital transformation, the development of our digital economy and society.

"The results achieved are very positive, but the practice of developing the digital economy and digital society in recent times is still facing many challenges," said Anh.

The number of national digital platforms in widespread use remains limited. The human resources available for digital transformation fall short in both quantity and quality, he highlighted.

There are numerous potential threats related to legal matters, cyber security, and user privacy; the general populace is not entirely prepared for the digital economy.

The establishment of a regulatory framework to test new technologies, products, services, and business models emerging from the fourth industrial revolution has been sluggish.

The target set out in the 13th National Party Congress Resolution, the National Digital Transformation Programme, and the Digital Economy and Society Development Strategy is to have the digital economy contribute to 30 per cent of GDP by 2030.

It's a lofty and formidable objective, necessitating a groundbreaking approach and strategy for Việt Nam to execute, Anh remarked.

Minister of Information and Communications Nguyễn Mạnh Hùng, said: “The objective of digital economic growth is to increase the wealth of citizens. The purpose of cultivating a digital society is enhancing the happiness of the populace through digital technology.”

Developing the nation's digital economy demands the establishment of digital institutions, infrastructure, and trust, the minister indicated.

A thriving digital economy should foster digital innovation, integrate the digital economy across all sectors and domains, promote digital governance and bolster digital skills, human resources, and notably draw in digital expertise.

The framework for advancing the Vietnamese digital economy rests on three tenets: digital governance; harnessing data to bolster the economy; and nurturing the production sectors connected with the digital economy, Hùng explained.

Concurrent to the forum, a tech application showcase for promoting the digital economy is taking place, featuring top-tier IT solution providers like Viettel, VNPT, Misa, Mobifone, FPT, Shopee, and VNPay.

Prominent solutions presented at the exhibition encompass digital payment/e-wallet systems, EMV and non-EMV payments, NFC (Near Field Connectivity), mobile payment mechanisms, digital signatures, blockchain innovations, e-commerce, digital ecosystems, and data protection. 

Seminar on promoting Vietnam-Japan cooperation held in Can Tho

A seminar on promoting Vietnam-Japan friendship and cooperation took place in the Mekong Delta city of Can Tho on September 15.

Speaking at the event, Vice Chairman of the municipal People’s Committee Duong Tan Hien said Can Tho now records six foreign-invested projects from Japan worth around 1.35 billion USD, making Japan the biggest out of 22 countries and territories investing in the locality. The city has also received tens of millions of USD in official development assistance (ODA) from the Japanese Government for large-scale projects such as Can Tho bridge and O Mon thermal power plant.

According to him, Japan has provided significant humanitarian and community development assistance through institutions like the Japan Bank for International Cooperation (JBIC) and the Japan International Cooperation Agency (JICA), with projects on building capacity, supporting vulnerable groups and language training centres, and improving educational infrastructure which have contributed to socio-economic development in the Mekong Delta and Can Tho in particular.

Japanese Consul General in Ho Chi Minh City Ono Masuo said this year marks the 50th anniversary of bilateral diplomatic ties. He wished to continue active cooperation with key units in Can Tho, such as Can Tho University and the Vietnam-Japan Friendship Association in Can Tho city to foster even better connections between the two countries’ young generations.

Chairwoman of the Can Tho Union of Friendship Organisations Le Thi Thanh Giang said together with the Vietnam-Japan Friendship Association, the union has offered all possible support to Japanese firms to do business in the city.

In June, the union in coordination with the Consulate General of Japan and the Can Tho College of Culture and Arts, held a ceremony to receive music equipment funded by the Japanese Government. The event was part of the Grant Assistance for Cultural Grassroots Projects with a total budget of 75,716 USD, she added.

At present, Japan is the biggest ODA supplier, the second largest investor, the third largest urban partner, and the fourth biggest bilateral trade partner of Vietnam.

Growing agricultural export to match international standards

With steady export growth, Vietnamese farm produce is increasingly meeting market demand in terms of packaging, quality and food safety, which enhances its competitiveness and allows Vietnamese products to gain further access into the global supply chain.

During the first months of the year to August, there was explosive growth in the export of fruits and vegetables, reaching 3.45 billion USD, up 57.5% annually. Exports are predicted to reach all-time-high of 5 billion USD this year.

This growth is expected as the Central Highlands region begins the durian harvest season.

Not only fruits and vegetables but also many others like coffee, black pepper, and rice are increasingly being monitored rigorously in terms of production, with orientations to high-quality and local signature products in order to penetrate deeper into the global market.

Notably, the Vietnamese coffee industry is making efforts to apply international standards in production and processing to access the global marketplace.

At present, the Central Highlands province of Gia Lai is home to over 36,600 ha of coffee meeting VietGAP, GlobalGAP, 4C, Organic, Rainforest Alliance standards and more than 12,086 ha of coffee using advanced irrigation technology to conserve water.

Ngo Hong Phong, Deputy Director of the National Agro-Forestry-Fisheries Quality Assurance Department, said the Ministry of Agriculture and Rural Development will continue carrying out inspections and certifications for food safety-compliant establishments and verify the certification of exported agricultural products as required by importing countries.

Deputy Minister of Agriculture and Rural Development Hoang Trung said the ministry is proposing the Government issue two more decrees on guidelines for issuing codes for growing areas and packaging facilities, and outlining sanctions and penalties in this field. This will provide an important legal basis for more stringent production management.

Labour market development crucial in southeastern region

Labour market development is seen as significant to the sustainable growth of the southeast which holds a strategically important position in terms of politics, socio-economic development, national defence and security of the entire country.

Vice Chairman of the Ho Chi Minh City Vocational Education Association Tran Anh Tuan pointed out four major trends in the Vietnamese labour market in the coming years, including the increasing number of workers on technology platforms, shift in occupations to soft skills, vulnerability of simplified jobs, and rise in entrepreneurship and self-employment.

Statistics showed that 68% of jobs currently require basic digital skills, while one-fifth demand specialised and in-depth digital skills.

Truong Minh Huy Vu, Deputy Director of the Ho Chi Minh City Institute for Development Studies, said the city has demand for jobs in connection with the development trends of key economic sectors, digital transformation, industries with a high level of sci-tech. The city is also developing trade in the direction of the service sector.

He added that the building of a plan on labour and employment, along with action programmes, is necessary to promote a comprehensive labour market and improve workers’ welfare.

Vu suggested that in the short and long term, the city needs to launch support packages for firms to boost investment in technological innovation, production automation and digital economy which will contribute to improving labour productivity.

Vice Chairman of the Binh Duong provincial People’s Committee Nguyen Van Danh said the locality aims to have 85% of its workforce undergoing vocational training by 2025, with 35% of them holding degrees or certificates. Additionally, it seeks to generate jobs to about 35,000 workers annually.

According to a leader of Dong Nai, the southern province strives to have 30% of its trained workforce with degrees or certificates by 2025.

Vietnam – China’s biggest trade partner in ASEAN: Minister

Vietnam is China’s biggest trade partner in the Association of Southeast Asian Nations (ASEAN) and the sixth largest in the world, affirmed Vietnamese Minister of Industry and Trade Nguyen Hong Dien.

Talking to the press on the occasion of Prime Minister Pham Minh Chinh’s attendance at the 20th China-ASEAN Expo (CAEXPO) and China-ASEAN Business and Investment Summit (CABIS) in Nanning city, China's Guangxi province, from September 16-17, Dien said the bilateral economic-trade-investment ties have been growing positively and continuously made new records.

China has remained Vietnam’s biggest trade partner for many years, the official said, stressing cooperation in mutually beneficial areas has been expanded and deepened constantly, bringing tangible benefits to people of both countries.
The official suggested the two sides work harder to realise high-level common perceptions reached by the two Parties and countries, thus strengthening collaboration across spheres, making it more intensive.

They should consolidate their political trust by increasing all-level exchanges and meetings, especially strategic contacts between top leaders of the two Parties and countries, in order to set out overall directions for the bilateral relations, he continued.

Dien stressed the need to carry forward the coordinating role of the Steering Committee for Vietnam – China Bilateral Cooperation; raise collaboration quality in all fields, with a focus on economy, trade and investment; promote the role and efficiency of cooperation mechanisms in finance, currency, and infrastructure; enhance the trade ties in a more balanced fashion; and launch more road and railway cooperation projects.

The minister proposed expanding people-to-people exchanges, especially between young people, and intensify the communications work to raise public awareness of the good friendship between the two Parties and countries.

The two countries should work to control and appropriately address differences in line with their high-level agreements and perceptions, while respecting each other's legal and legitimate interests in accordance with international law, including the 1982 United Nations Convention on the Law of the Sea, for the sake of their people and for regional and global peace, cooperation, and development, he went on.

Regarding CAEXPO and CABIS, Dien said they have served as important, prestigious mechanisms for economic, trade and investment cooperation between ASEAN and China, directly and practically contributing to turning ASEAN into China’s biggest trade partner, and making China a leading trade partner of ASEAN member countries, including Vietnam.  
The minister noted his hope that cooperation within the framework of CAEXPO will be an important driving force for the development of ASEAN-China, the member countries of the Regional Comprehensive Economic Partnership (RCEP), as well as those involved in the "Belt and Road" initiative.

Vietnam hopes that CAEXPO, CABIS, and related activities will focus on attracting even more participation and transactions from reputable, scalable, and capable enterprises, exporters, and importers from China and around the world in the coming time, particularly in the areas where both ASEAN and China have strengths, he said.

The official laid emphasis on such cooperation realms as high-tech, innovation, green development, carbon emission reduction technology and environmental management, among others.

Vietnam, China's Hong Kong promote business connections

The Institute for Economic and Trade Development Research under the Hanoi Department of Science and Technology has coordinated with the Hong Kong Productivity Council to organise the Vietnam - Hong Kong Business Networking in Hong Kong, China, offering an opportunity for businesses from both sides to exchanges business initiatives, information about products, markets and promote investment.

Dozens of representatives from Vietnamese businesses operating in the fields of agriculture, construction, furniture production, information technology, supporting industries and those of about 20-30 Hong Kong businesses attended the event, which took place on September 15.

Speaking at the event, Nguyen Quan, Chairman of the Institute for Economic and Trade Development Research, said that Vietnamese localities and Hong Kong have great economic potential and rapid growth. Vietnam is one of the fastest growing countries in Southeast Asia, while Hong Kong is an international financial, trade and logistics hub.

Through the event, Vietnamese businesses hope to exchange experiences, further connect with Hong Kong businesses, call for investment, establish new links, and promote trade and investment.

Hong Kong is currently Vietnam's 10th trading partner and Vietnam is Hong Kong's 8th largest trading partner and the second largest in the Association of Southeast Asian Nations (ASEAN). Hong Kong is also the 5th largest investor among more than 140 countries and territories investing in Vietnam.

Vietnamese Consul General in Hong Kong Pham Binh Dam highly valued the event, saying that room for their investment and business cooperation is still large.

Representatives of Hong Kong businesses said that Vietnam is an attractive and vibrant market in the region. Hong Kong businesses are increasingly interested in investment and trade cooperation with Vietnam.

On this occassion, Vietnamese and Hong Kong businesses introduced products, services and cooperation proposals.

Fruit and vegetable exports to China enjoy triple-digit growth

Vietnamese fruit and vegetable exports to the Chinese market during the first eight months of the year saw an increase of 133.6% to US$2.26 billion on-year, representing triple-digit growth, according the General Department of Vietnam Customs.

The northern neighbour remains the leading consumer of Vietnamese fruit and vegetable with a turnover reaching US$2.26 billion, duly accounting for 63.6% of the country’s total export turnover throughout the reviewed period.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, attributed this impressive growth to China’s reopening along with durian fruit being officially exported to the northern neighbour.

Most notably, the past eight months has seen durian exports reach nearly US$1.3 billion, of which exports to the Chinese market accounted for about 90% of total turnover of this fruit.

Furthermore, China also moved to increase imports of other fruits such as bananas, jackfruit, dragon fruit, and watermelon.

Currently, Vietnam boasts 16 plant products being exported to the Chinese market, including bananas, durian, mangosteen, black jelly, rice bran, rice, sweet potatoes, watermelon, dragon fruit, mango, jackfruit, longan, lychee , rambutan, chili, and passion fruit.

The country has already signed the protocol for the export of rice bran, rice, mangosteen, black jelly, durian, bananas, and sweet potatoes to China

Moreover, the country is in the process of negotiating to sign protocols for the entry of dragon fruit, watermelon, lychee, longan, rambutan, mango, and jackfruit into this market.

Chili peppers and passion fruits are temporarily being allowed to be exported, while citrus fruit groups such as oranges, grapefruits, and coconuts are in the technical negotiation stage.

The Plant Protection Department under the Ministry of Agriculture and Rural Development has also submitted an application aimed at opening the market for custard apples and cardamom.

According to preliminary data released by the General Department of Vietnam Customs, fruit and vegetable exports by the end of August reached US$3.55 billion, up 61.8% over the same period from last year, thereby surpassing the figure of US$3.36 billion for the entirety of 2022.

Fruit and vegetables are also the commodity group which recorded the highest growth rate in the agricultural industry during the  reviewed period.

Long An Province emerges as an attractive investment destination

Long An Province, located in southern Việt Nam, has emerged as an attractive investment destination due to its strategic location, thriving industrial zones, and favourable investment policies. 

Prime Minister Phạm Minh Chính, speaking at a recent meeting in Long An Province, said Long An possessed great potential and competitive advantages for sustainable socio-economic development. 

Situated in the Cửu Long (Mekong) Delta region, the province benefits from its excellent connectivity to major transportation routes, including highways, waterways, and railways. 

This makes it an ideal location for businesses looking to establish a strong foothold in the country, as it is conveniently connected to HCM City and other important cities in the region.

Long An boasts an impressive array of thriving industrial zones, providing investors with modern infrastructure, a skilled workforce, and a wide array of support services. 

The Long Hậu Industrial Park and the Tân Long Industrial Park, among others, have become hotspots for manufacturing and industrial activities. 

The province’s plans to establish 17 new industrial parks and 72 industrial clusters further contribute to its attractiveness as an investment destination.

In addition to its industrial sector, the province also holds immense potential in agriculture, tourism, and renewable energy. 

With its fertile land, favourable climate, and abundance of natural resources, Long An is considered the rice bowl of southern Việt Nam. 

The province has heavily invested in modernising its agricultural sector, promoting sustainable farming practices, and developing agro-processing industries.

In addition, Long An possesses untapped potential in the tourism sector. 

The province is home to several natural and cultural attractions, such as the Đồng Tháp Mười eco-tourism area and the ancient Vĩnh Hưng Tower. 

Recognising this potential, the local government has prioritised tourism development and implemented policies to attract investment in the sector. 

Long An is also actively promoting renewable energy projects, particularly in solar and wind power. 

Its abundant sunshine and favourable wind conditions make it an ideal location for the development of clean energy projects. 

Investors are eyeing Long An’s renewable energy potential, as the government provides incentives and support for these projects. 

“Renewable energy is a key sector for Việt Nam’s sustainable development, and Long An’s favourable conditions make it an attractive destination for investments in this field,” said the PM. 

Nguyễn Văn Út, chairman of the Long An Province People’s Committee, said that to create a business-friendly environment, Long An has implemented favourable investment policies for local and foreign investors.

It has established a transparent administrative system, and introduced various incentives for domestic and foreign investors, he said.

It aims to attract large-scale, high-tech FDI projects and prioritise key development pillars such as ecological agriculture, green industry, high-technology and logistics. 

It has lured over 1,200 foreign direct investment projects with a total investment capital of more than $10 billion, ranking it tenth among Việt Nam’s 63 cities and provinces. 

In the first half of this year, the province granted investment licenses to 39 FDI projects with a total capital of $408.5 million. 

Dr. Nguyễn Xuân Thành, director of the Public Policy Programme at Fulbright University Việt Nam, said Long An’s proactive approach in creating a business-friendly environment has been a key driver in attracting investment.

Many multinational corporations, such as Samsung, LG, and Nestle, have established manufacturing facilities in the province. 

Domestic businesses have also seized the opportunities in the province, with companies such as VinGroup and Hòa Phát Group investing in various sectors, including real estate and agriculture.

Under an approved master plan, Long An Province aims to become a dynamic economic centre in the southern region by 2030 and the leading industrial province in Việt Nam by 2050. 

Trade deal ‘bright spot’ in UK-Việt Nam relations: HCM City leader

The signing of the UK-Vietnam Free Trade Agreement in 2020 and the former’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership this year are “bright spots” in the economic co-operation between the two countries, HCM City chairman Phan Văn Mãi has said.

Speaking at a ceremony to mark the 50th anniversary of the establishment of Việt Nam – UK diplomatic ties in HCM City on Thursday, Mãi said the UKVFTA helped achieve bilateral trade of US$6.8 billion last year, positioning the UK as Việt Nam’s third largest partner in Europe and ninth largest export market in the world.

Trade growth has been one of the achievements of the five-decade relationship, he said.

HCM City, as the country’s economic spearhead and international co-operation hub, has been receiving a great deal of UK investment, which stands as the 11th largest out of 120 countries and territories that have invested in the city, with 273 projects worth nearly $960 million, Mại added.

The Việt Nam – UK relationship has been developing steadily. Following its elevation to the Strategic Partnership in 2010, mechanisms and working groups were established to facilitate co-operation.

The UK has helped train City's employees to support the latter’s efforts in establishing a financial hub and enhancing their skills in foreign affairs communications.

Emily Hamblin, the British consul general in HCM City, said the UK is working closely with the City in many areas, including turning it into a financial services hub, smart city technologies and establishing a health innovation centre.

She commended the two countries’ shared goals, including commitments towards net zero and tackling climate change, adding that they are working together to solve some global issues.

The UKVFTA, which took effect in early 2021, eliminates tariffs on 99 per cent of all goods traded between the two countries over the long term, providing a significant advantage to Vietnamese exporters.

China Railway Group expresses interests in building Viet Nam's railways

Prime Minister Phạm Minh Chính met with leaders of several leading Chinese conglomerates in Nanning city, China’s Guangxi province, on September 16 on the occasion of his attendance at the 20th China-ASEAN Expo (CAEXPO) and China-ASEAN Business and Investment Summit (CABIS) there.

Receiving Chairman of the Executive Board of China Railway Chen Yun, PM Chính praised the company’s global reach and sustainability with 381 branches in 105 countries.

Chen said the company is now the main contractor of several urban railway projects in Hà Nội and wind power projects in the Central Highlands province of Đắk Nông, and a tire manufacturing plant in Việt Nam's southern province of Tiền Giang. He expressed interest in engaging in the construction of transportation projects in Việt Nam, such as the North-South and the Lào Cai-Hà Nội-Hải Phòng express railways, and the Hà Nội urban metro line.

To develop infrastructure, PM Chính said Việt Nam is stepping up public-private partnership, striving to have 5,000km of highways, complete the first stage of the Long Thành international airport and 1,700km of coastal roads from Quảng Ninh to Cà Mau by 2030.

According to him, Việt Nam plans to build railway lines such as the Lào Cai-Hà Nội-Hải Phòng with a total length of roughly 388km and a cost of US$11 billion, the Vũng Áng-Laos with the section in Việt Nam stretching 103km and costing $1.6 billion, and the Hà Nội-HCM City line with length of 1,545km and a combined investment of some $62 billion.

The Vietnamese leader welcomed the Chinese enterprises and the China Railway in particular to expand their operation in Việt Nam in the spirit of harmonising interests and sharing risks.

He suggested the China Railway continue working with relevant Vietnamese ministries and localities to develop new projects in Việt Nam, including the Lào Cai-Hà Nội-Hải Phòng express railway linking with the Kunming-Hà Nội-Hải Phòng economic corridor.

In a reception for Wang Xiaojun, Deputy General Manager of Power China which ranked 100th on the Fortune Global 500 list and 29th among the top 500 Chinese enterprises in 2022, PM Chính hailed the company’s plan to expand operations in energy in Việt Nam in the near future, especially in wind power and liquefied natural gas electricity projects.

The Vietnamese Government commits to create all possible support to Chinese firms and the Power China in particular, he said, adding that it recently approved the National Power Development Plan for the 2021-30 period with a vision to 2050, with renewable energy sources, especially onshore and offshore wind power, being a foundation of Việt Nam's long-term energy security.

He suggested that the Power China explore cooperation in Việt Nam's priority areas, including infrastructure - one of Việt Nam's three strategic breakthroughs. Specifically, he proposed exploring the possibility of investing in China-Quảng Ninh-Hải Phòng and Lạng Sơn-Hà Nội-Hải Phòng railway lines, with the commitment to translating these ideas into concrete actions and achieving tangible results. 

VN, Belgium have great potential for co-operation in sustainable development

VN and Belgium have great potential for co-operation in various area, including the green, digital and circular economies, a HCM City official said.

Speaking at a seminar on September 15, Ngô Minh Châu, deputy chairman of the municipal People’s Committee, said Belgium is one of Việt Nam’s top trading partners in the EU, and Việt Nam is its largest in ASEAN.

It is also an important trading and investment partner for HCM City, he added.

“Leveraging this partnership, both regions can work together to build sustainable urban areas that can adapt to climate change.”

HCM City, which is heavily impacted by climate change, has solutions to implement a National Green Growth Strategy to achieve sustainable development.

In recent years, the city and Belgium have carried out several port construction, agriculture, health, and social development projects.

Trade between the two was worth nearly US$400 million in the first seven months of this year.

Belgium has invested nearly $1.1 billion in 89 projects in Việt Nam, including $9.5 million and 43 in HCM City.

With the EU-Vietnam Free Trade Agreement coming into effect at the end of 2020, trade between Belgium and Việt Nam surged by 60 per cent last year.

The seminar titled “Economic Bilateral between Việt Nam and Flanders, Belgium, on Sustainable Cities and Climate Adaptation” was organised by the HCM City Investment and Trade Promotion Centre and Flanders Investment & Trade.

VND8-trillion bridge to be built in Mekong Delta region

Work on a VND8-trillion (USD333 million) bridge in the Mekong Delta region is scheduled to kick off in October.

Dai Ngai Bridge across the Hau River will link National Highway 54 in Tra Vinh Province's Tieu Can District and Nam Song Hau National Highway in Soc Trang Province's Long Phu District.

The investment capital for the 15-km bridge will be sourced from the state budget.  According to Tran Van Lau, chairman of the Soc Trang People’s Committee, the site clearance of the bridge has been completed.

Once open, the bridge will help shorten the distance from Ca Mau, Soc Trang and Bac Lieu to HCM City by 80 kilometres as well as ease traffic pressure pm National Highway 1 when Dinh An Economic Zone and the industrial parks of Tran De, Dai Ngai, My Thanh and Vinh Chau are put into use.

Sacombank mulls investing in Bamboo Airways

Sacombank, which trades its STB shares on the Hochiminh Stock Exchange, is seeking approval to invest in Bamboo Airways.

Sacombank has shown keen interest in Bamboo Airways’ restructuring, Phan Dinh Tue, a board member of Bamboo Airways, said at an extraordinary general meeting of shareholders this morning, September 15.

Currently, the bank is in the process of completing necessary procedures and seeking approval from the relevant authorities to proceed with the investment.

At the its general meeting of shareholders this morning, Bamboo Airways also announced changes to its board of directors (BOD).

Three BOD members – Hideki Oshima, Doan Huu Doan, and Tran Hoa Binh – stepped down, while Le Thi Truc Quynh, deputy general director of the airlines, was elected to the BOD in the 2023-2028 term.

The BOD of this airline now has five members – Le Thai Sam, Nguyen Ngoc Trong, Phan Dinh Tue, Le Ba Nguyen, and Le Thi Truc Quynh.

HCMC to host int’l woodworking expo

VietnamWood, a renowned international woodworking exhibition in Vietnam, is set to be held at the Saigon Exhibition and Convention Center (SECC) in District 7, HCMC, from September 20 to 23.

The trade fair will feature over 320 exhibitors from 28 countries and territories, presenting the latest product lines in the woodworking sector.

Judy Wang, president of Yorkers Trade & Marketing Service Co., Ltd., the event organizer, said, “VietnamWood has evolved with the sector from mechanization to automation and digitalization. Our current emphasis is on Smart Factory Solutions, moving beyond individual machine upgrades to integrated production line solutions, reducing product defective rates, and boosting overall production efficiency.”

This expo will showcase woodworking machinery, equipment, raw materials, and essential consumables in the industry, offering a wide array of top-quality products, services, and solutions.

The event will introduce pavilions from leading manufacturers in eight countries and territories, including Austria, Canada, China, France, Germany, Italy, the U.S., and Taiwan.

VietnamWood is expected to provide a platform for local businesses to exchange ideas on technology development within the industry and look for cooperation with potential partners.

During the expo, livestream event and wood technology seminar series will focus on key issues that are currently affecting the wood processing industry, including proactive export products with simple operation, green factories, smart maintenance, and green supply chains.

VietnamWood is organized by Vinexad National Trade Fair & Advertising JSC, in collaboration with Yorkers Trade & Marketing Service Co., Ltd., and the Handicraft and Wood Industry Association of HCMC (HAWA).

HCMC takes lead in greenhouse gas emissions

HCMC, despite being the driving force behind Vietnam’s economy, also holds the dubious distinction of being the country’s largest greenhouse gas emitter, said Deputy Prime Minister Le Minh Khai.

This stark contrast was highlighted during the fourth HCMC Economic Forum (HEF) today, September 15.

The city contributes around 20% of Vietnam’s gross domestic product (GDP), over 25% of the nation’s budget revenue, plays a pivotal role in attracting foreign direct investment (FDI) and promoting trade, and is home to nearly 30% of all businesses in Vietnam.

However, it is also responsible for emitting a staggering 57.6 million tons of greenhouse gases, accounting for 23.3% of the country’s total.

Despite making some strides in environmental protection measures, Khai noted that the city’s economy remains predominantly linear and has not yet embraced circularity.

HCMC Party Secretary Nguyen Van Nen shed light on the city’s challenges, including climate change, traffic congestion, and environmental degradation. These challenges underscore the urgent need for more proactive measures and increased international cooperation.

HCMC is currently formulating a green economic growth strategy aimed at 2030, with a vision reaching to 2050. This strategy prioritizes citizens and businesses, emphasizing regional connectivity and international cooperation.

The city’s focus areas include the development of green resources, the construction of sustainable infrastructure, the promotion of eco-friendly behaviors, and intensifying efforts to bolster sectors that have a significant impact on emissions and environmental sustainability.

“Following the forum, the city will gather insights from experts and experiences of local and international partners to refine the strategic framework and implement specific time-bound action plans. Our goal is to establish the fourth revolutionary center in HCMC,” Nen said.

He also emphasized that the city is intensifying efforts to mobilize resources for investments in renewable energy, greenhouse gas reduction, and the creation of an energy-efficient public transportation system. HCMC is fostering an enabling environment to encourage businesses to collaborate in building a green growth economy, ultimately aiming for net-zero emissions.

The HEF, an annual international event organized by the People’s Committee of HCMC, has attracted 1,500 delegates this year. Participants include representatives from financial institutions such as the World Bank, the International Monetary Fund, the International Finance Corporation, and the Asian Development Bank, as well as government officials and experts from Vietnam and 21 other countries.

Dong Hoi airport expansion project approved

Local authorities have granted in-principle approval for the Dong Hoi Airport expansion project, which includes construction of Terminal 2 and expansion of aircraft stands, with a total investment of VND1,844 billion.

The Airports Corporation of Vietnam (ACV) will take charge of developing this project.

The project aims to enhance Dong Hoi Airport’s capacity to accommodate three million passengers annually.

The expansion of aircraft stands will be executed in phases, adding four stands across 15,016 hectares of land, increasing the total number of stands at the airport to eight.

Terminal 2 is planned for construction to the southeast of the existing terminal. It will have two levels and a usable floor area of 16,800 square meters. The project also includes the development of infrastructure in front of the terminal, the construction of a car parking area, internal roads, and other supporting facilities.

The investment of VND1,844 billion required for the Dong Hoi expansion project will be fully funded by the investor.

Work on Terminal 2 is scheduled to commence in the third quarter of next year and is expected to be operational by the first quarter of 2026.

Simultaneously, the expansion of the aircraft stands is expected to be completed within 17 months, aligning with the construction schedule for Terminal 2.

Ben Tre attracts VND24 trillion for coastal infrastructure development

The Mekong Delta province of Ben Tre has attracted 25 private investment projects worth a total of US$24 trillion for its coastal infrastructure development over the past five years, said Tran Ngoc Cam, chairman of the province.

These initiatives span a range of sectors, including agriculture, renewable energy and fisheries.

The coastal districts of Binh Dai, Ba Tri and Thanh Phu have been focal points for investment, with a strong emphasis on tourism and industry. Ben Tre is developing infrastructure to support wind power, liquefied natural gas power, and green hydroelectricity projects in these areas.

The province is making significant progress in the tourism sector, with 32 projects currently underway, amounting to over VND3.3 trillion.

Tourism activities in these coastal districts are projected to grow by an average of 25% annually by 2025, contributing roughly 20% to the province’s total tourism revenue. By 2030, these districts are expected to generate 30% of the province’s tourism income.

The province also plans to develop six industrial clusters covering more than 380 hectares. Presently, three of these clusters have been established, covering 102.97 hectares.

In addition to tourism and industry, Ben Tre is capitalizing on its strengths in fisheries and renewable energy. The province is committed to developing 4,000 hectares of shrimp farms using advanced technology by 2025.

The province boasts 19 wind power projects with a total capacity of over 1,000 megawatts, nine of which have already been in development stages.

US Boeing wants to buy more Vietnamese-made supporting industrial products

US aviation giant Boeing today announced it needs to purchase supporting industrial products in Vietnam.

Boeing’s supply chain development director for Southeast Asia, Japan, and South Korea Maxime Dourdan revealed that Vietnam is currently the destination for many of the world's leading corporations. In addition to its attractive investment environment, Vietnamese enterprises’ capacity to provide products from supporting industries is increasingly improving; thus, the supply rate is increased. Vietnamese firms’ better capacity will help foreign investment corporations’ sustainable development so foreign businesses decided to pour more money in Vietnam.

However, Director Maxime Dourdan admitted the aviation industry with complex production technologies requires many factors and cannot immediately find suppliers. Therefore, the group has established a roadmap for finding Vietnamese suppliers and starting from level 3 and level 4 suppliers, and it will gradually improve the capacity of Vietnamese enterprises to levels 1 and 2 so that Vietnamese firms will be able to supply more important ancillary products.

Regarding this issue, Vice President of the Vietnam Association for Supporting Industries Truong Thi Chi Binh said that currently, some 25,000 Vietnamese businesses have been operating in the field of manufacturing supporting industry products. Vietnamese businesses have participated in providing components for the automobile, motorbike, and electronics industries for Honda, Toyota, THACO, Vinfast, Samsung, and Panasonic.

The aerospace industry in general and Boeing in particular are quite new in the Southeast Asian country. However, this is an opportunity for Vietnamese businesses to approach and adapt.

Vietnam has so far become the US’s eighth-largest trading partner. Deputy Minister of Industry and Trade Do Thang Hai said that in the first 8 months of 2023, the US is still Vietnam's largest export market with an estimated turnover of US$ 62.27 billion, a year-on-year decrease of 19.1 percent. With an average trade growth rate of over 20 percent a year, the US continues to be Vietnam's largest export market today and in the coming years.

Vietnam’s export revenue to grow more: Foreign businesses

Vietnam’s export revenue especially agricultural and aquatic products will grow more.

Within the framework of the 2023 Export Forum organized by the Ministry of Industry and Trade today, foreign businesses said that Vietnam’s export turnover will increase more.

According to the Ministry of Agriculture and Rural Development, the export turnover of agricultural products, seafood, and food maintained a growth rate of over double digits and reached more than US$50 billion this year, despite market problems, especially increased inflation in all major export markets. Among them, many product groups including wood, seafood, coffee, rubber, vegetables and fruits achieved a turnover of over $2 billion.

Deputy Director of the European-American Market Department Nguyen Thao Hien said that Vietnam is currently the world's top third supplier of coffee, cashew nuts, pepper and rice.

Especially in 2022, many types of our country's agricultural products such as fresh bananas, sweet potatoes, bird's nest, grapefruit, longan, passion fruit, and durian have been licensed to export to developed markets in the world like the US, Japan, China, New Zealand which will pave the way for the export of Vietnamese agricultural products.

in the first 8 months of 2023, China, the US and Japan continue to remain the three largest export markets. Export value to China accounted for 21.9 percent, an increase of 9.8 percent while it accounted for 20.6 percent for the US market, down 27.4 percent.

According to Ms. Hien, Vietnam's agricultural product sector is facing the challenge for agricultural products when it comes to sustainable development and environmental protection - inevitable trends in most of Vietnam's key export markets.

Countries not only adjust their legal frameworks with a series of new laws and regulations that specify the above two goals but also encourage other regional countries to follow through with strong political commitments at the United Nations Framework Convention on Climate Change. Therefore, export businesses need to proactively transform green to easily participate in the global market.

Green economy becoming driving force for HCMC improvement

The green growth trend along with Industry 4.0 is forcing HCMC to improve itself for more sustainable development and maintain its leading position in the national economy.

After two years severely affected by the Covid-19 pandemic as well as global conflict and supply chain disruption, the whole political system has cooperated with city dwellers and the local business community to gradually resume economic activities in the city, resulting in promising achievements.

The growth rate of HCMC rose significantly from -6.78 percent in 2021 to 9.03 percent in 2022. In the first 6 months this year, the economy status in the world and the country experienced much trouble, the figure dropped to 3.55 percent.

In general, the growth speed of HCMC has slowed down a little due to a drop in various driving forces. In the 1996-2010 period, this rate was 10.2 percent per year, which was 1.6 times as high as the national average. In the next 5 years, this figure fell to 7.22 percent per year, and then to 6.41 percent in the 2016-2020 period.

Meanwhile, the quality of economic growth does not meet the set target either. There are still limits in the use of hi-tech machinery in manufacturing, leading to difficulties in upgrading the position in the supply chain and establishing a modern economic structure. The operations of industrial parks, export processing zones, and hi-tech parks are not effective enough to attract investments from major corporations. The final problem is outdated traffic infrastructure compared to the logistics demands.

At the same time, due to crowded population, the socio-economic growth has created much pressure on the environment of HCMC. It is severely affected by climate change, air and noise pollutions.

The disbursement rate of public investment in HCMC last year was disappointingly low in the country. At the end of this August, the city only disbursed 28 percent of the allocated public investment compared to the target of 35 percent.

Resolution No.98/2023/ QH15 (Resolution 98) about piloting specific mechanisms and policies for the growth of HCMC was approved by the National Assembly and effective as of August 1. It has provided the needed chance for the city to tackle many problems.

Economic expert Dr. Tran Du Lich stated that Resolution 98 is able to remove obstacles related to institution and infrastructure, possibly leading to solutions for other issues as well. Such promising matters like green finance and the carbon credit market have been mentioned and received many valuable proposals from experts, scientists, and the business community.

In a recent meeting held by SGGP News, Chairman of the HCMC People’s Committee Phan Van Mai insisted that the city must quickly follow the green transformation trend to create more competitiveness for its economy and contribute to the national one.

After listing typical problems in the city now like gradually reducing growth momentum, climate change, quality of life, energy security, conservation and development of biodiversity, he said that without green transformation and systematic strategies, long-term policies, the economy of HCMC cannot compete with other players, let alone contributing to the national economy.

What is more, many developed nations – the main clients of HCMC – are applying an increasing number of technical barriers to stop non-eco-friendly products from entering their market. From this October, the EU will pilot the Carbon Border Adjustment Mechanism (CBAM) before formally implementing it from 2026. This will increase export costs as well as reductions in orders. For instance, aluminium and steel manufacturers can see a 4-percent drop of export orders, resulting in a decrease of output by 0.4-0.8 percent.

At the 2021 United Nations Climate Change Conference (COP26), held by UN in November 2021, Prime Minister Pham Minh Chinh announced Vietnam’s commitment to reducing 30 percent of methane emissions in 2030 and reaching net zero emissions 2050. To fulfill this, the Green Growth program was specified into the ‘National Strategy on Green Growth in the 2011-2020 Period, with a Vision to 2050’.

The Strategy states that green growth allows more effective uses of natural resources, greenhouse gas emission decrease, climate change coping, hunger and poverty reduction, which will all create a driving force for sustainable economic growth.

HCMC has then introduced the implementation plan for the ‘Green Growth Strategy for Sustainable Development in HCMC until 2030’.

The 2023 Economic Forum is a major playground to provide opportunities for national and international business communities to connect and share experience on green growth and circular economy. HCMC collects all valuable proposals and measures for consideration to select the most suitable one for its characteristics. It will then submit its own recommendations about practical models, feasible solutions and policies at a macro level.

Meanwhile, the domestic business community can have better understanding on green growth, expand their connections, and thus can deliver more productive proposals for the city to tackle current issues.

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