Hanoi is working to cultivate high-quality rice varieties in 80% of the local rice farming area in a bid to build trademark for the product in the 2021-2025 period.

The city is currently home to more than 200 concentrated rice production regions with a total area of about 40,000 hectares.

It aims to maintain and develop 200 Japonica and high-quality rice production regions towards VietGAP and organic standards for export. The capital city plans to form 3-5 domestic rice supply and export linkage chains in the period.

Ta Van Tuong, Director of the Hanoi Department of Agriculture and Rural Development, said that thanks to the high-quality rice production programme, the city has enhanced the productivity and economic efficiency of rice production by 15-20%. Particularly, Hanoi’s Japonica rice has been exported to the US, Japan, and Australia.

Economists held that currently, the world rice market is experiencing many fluctuations due to India’s restriction of export, leading to a drop in the global supply. Meanwhile, El Nino phenomena are also affecting the production of the food in some Asian country, they said, predicting that the price of the grain will rise by 50-100 USD per tonne, which is a chance for Hanoi in rice export.

However, they pointed out that Hanoi is facing many difficulties in building rice trademark due to small-scale production, loose linkage among famers and businesses, and unstable markets.

Nguyen Trong Khien, Vice Chairman of the People’s Committee of Thanh Oai district, said that in order to promote rice production and enhance the product’s quality, the district plans to coordinate with municipal departments and agencies to support Tam Hung commune and Tam Hung agricultural cooperative in designing production regions and build processing facilities, while boosting trade and product  promotion activities.

The city Department of Agriculture and Rural Development has coordinated with localities to develop large-scale rice farms and support farmers in applying science and technology in production as well as mechanising rice production activities.

Hanoi will strengthen investment in infrastructure system and irrigation system serving rice production, while continuing to assist local cooperatives and businesses in building their brands and increasing trade promotion.

Ho Chi Minh City welcomes start of VietnamWood 2023

As many as 320 domestic and international wood processors are gathering in Ho Chi Minh City for the Vietnam International Woodworking & Furniture (VietnamWood 2023), which opened at the Saigon Exhibition and Convention Center (SECC) in District 7 on September 20.

The exhibitors are showcasing innovative smart solutions, top-end technologies, and future development trends on one platform, promising to bring an effective trading platform specifically for manufacturers and buyers operating in the wood processing industry.

Speaking at the opening ceremony, Phung Quoc Man, vice chairman of the Handicraft and Woodworking Association (HAWA) of Ho Chi Minh City, noted that since the beginning of the third quarter of the year, the export of Vietnamese wood products has witnessed positive signs of recovery, with export turnover in August alone hitting over US$1.1 billion.

It is forecast that the domestic wood processing industry is likely to rake in an additional US$6 billion from exports in the remaining months, thereby bringing the total export turnover for the whole year to about US$14 - 14.5 billion.

Man added that the participation of 600 booths of 320 businesses from 28 countries and territories such as China, Germany, Italy, India, Indonesia, Japan, South Korea, Malaysia, Singapore, Taiwan (China), Thailand, and the United States, will be an opportunity for businesses to enhance their ability to access export orders for the fourth quarter of 2023 and the first quarter of 2024.

Besides VietnamWood 2023, Vietnam International Furniture Accessories, Hardware & Tools Exhibition (Furnitec 2023) is also underway at SECC.

Organised by the Vietnam National Trade Fair & Advertising Company, Yorkers Trade & Marketing Service Co, and HAWA, the two events will also feature livestream sessions introducing new technologies and a series of wood technology seminars. Topics include proactive production - simplified operations, green factories with a focus on carbon neutrality, equipment health and smart maintenance, among others.

The two exhibitions are scheduled to last until September 23.

Businesses’ intrinsic strength - key to socio-economic development

Vietnam needs to outline rational policies to promote intrinsic strength of businesses with a view to boosting socio-economic development, experts said on the sidelines of the Vietnam Socio-economic Forum held in Hanoi on September 19.
 
Jonathan Pincus, UNDP Senior International Economist, said Vietnam should give fresh impetus to national innovation and invest big in research and development (R&D) activities with a view to improving labour productivity in long term.

He added that Vietnam’s spending on R&D activities, a measure to evaluate the ability to better labour productivity, has lagged behind that in China, Thailand and Malaysia.

Besides, rational mechanisms should be put in place to lure leading Vietnamese scientists to domestic institutes and universities, he said, highlighting they will make practical contributions to the national development.

Low worker productivity has hampered economic recovery post pandemic, other experts said, pointing a shortage of employees with substantial experience and skills, and a large number of micro and small businesses as major reasons.

While government policies to renew the growth model and enhance innovation in science and technology have created favourable conditions to better labour productivity, they have been carried out in a sluggish fashion due to poor engagement from businesses.

According to Nguyen Le Hoa, Director of the Department for Productivity Research at the Vietnam Productivity Institute, Vietnam should take more drastic measures to boost labour productivity, with inter-departmental and inter-ministerial coordination put at the focus to build uniform policies.

Meanwhile, Felix Weidencaff, an employment specialist from the International Labour Organsiation (ILO), said that due attention should be given to small and medium enterprises, the key players in the Vietnamese economy, so as to promote labour productivity in a sustainable fashion.

The ILO specialist recommended Vietnam develop human resources and create more jobs to meet the increasing demand of the knowledge economy and the Industry 4.0.

The country should work to tackle the nature of unemployment and handle new challenges, he added.

Nguyen Dinh Cung, former Director of the Central Institute for Economic Management, advised the Government to create friendly policies for the private economic sector, which contributes nearly 50% to the nation’s GDP.

Easier access to capital, interest rate cut, tax reduction, and removal of complicated procedures will be great support for businesses this time, he said.

Techconnect & Innovation Vietnam 2023 slated for September 29-30 in Quang Ninh

The Techconnect & Innovation Vietnam 2023 will be held in the northern province of Quang Ninh from September 29-30 in both online and in-person format, Deputy Director of the provincial Department of Science and Technology Phan Dang Chinh told the press on September 19.

Co-hosted by the Ministry of Science and Technology and the provincial People’s Committee, the event will take the theme “Innovation - Sustainable Development”, featuring around 200 exhibition booths and five technology demonstration areas.

The signing ceremony for cooperation agreements and technology partnerships between local businesses and their partners at home and abroad will also take place.

Chinh said the event will include various activities such as technology surveys to match technology supply and demand, the Technology and Energy Forum 2023, an exhibition showcasing equipment and technology, consultations on intellectual property, quality measurement standards, financial advisory services, and innovation support for enterprises.

Other highlights are discussions on emerging technology trends, a digital transformation and green transformation forum for sustainable development, and a conference on local technology application, technology transfer and local innovation for 2023, he added.

Green transition an urgent need for sustainable export to EU: confab

To secure sustainable export to the EU, Vietnamese enterprises must adopt green production and apply high technology to meet the EU’s strict technical and environmental standards, heard a seminar held in Hanoi on September 19.

Participants in the event, organised by the Cong Thuong (Industry & Trade) magazine, pointed out that in the third year of implementing the EU - Vietnam Free Trade Agreement (EVFTA), the country’s export advantages and results have been partly affected by the EU’s further application of high standards and increase of special requirements related to environment and sustainability for imports.

Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department at the Ministry of Industry and Trade, said sustainable development is a chapter of the EVFTA, and it covers environmental and labour aspects.

Unlike normal free trade agreements, sustainability forms a very important part of the EVFTA, so businesses exporting goods to the EU need to pay more attention to the issues mentioned in this deal, he went on.

Nguyen Hong Loan, an expert of the technical assistance project on impact assessment of the EU’s Carbon Border Adjustment Mechanism (CBAM), said the EU has long had very high environmental standards. These regulations have been tightened recently, starting with the approval of the European Green Deal that targets slashing the greenhouse gas emissions by 55% by 2030 compared to 1990 and achieving net zero emissions by 2050.

Vinatex is working to ready strategic manpower for sustainable development by improving their awareness and equipping them with necessary knowledge. In particular, the pilot manufacturing of sustainable products will be costly but also necessary since sustainable development is definitely a target in its medium- and long-term strategies, Anh added.

Most reputable food-beverage companies in 2023 announced

The Vietnam Report JSC has announced the lists of 10 most reputable companies of the food and beverage sector this year.

The lists were built based on three main criteria – financial capacity reflected in the latest financial reports, media reputation, and results of an August survey of companies and stakeholders including consumers and experts.

Regarding the dairy and dairy product group, companies that made the top-ten list consist of the Vietnam Dairy Products JSC (Vinamilk), Frieslandcampina Vietnam Co. Ltd, Nutifood Nutrition Food JSC, International Dairy Products JSC (IDP), VitaDairy Vietnam JSC, Moc Chau Dairy Cattle Breeding JSC, Kido Frozen Foods JSC, Mead Johnson Nutrition (Vietnam) Co., Ltd, Nutricare Nutrition JSC, and Zott Vietnam Co., Ltd.

Other groups include sugar-candy-nutritional product, condiment-spice-cooking oil, alcoholic beverages, and non- alcoholic beverages.

General Director of Vietnam Report Vu Dang Vinh said in the context of slowing global economic growth, the food and beverage industry is facing multiple challenges.

According to Vietnam Report's survey, due to the risk of an economic downturn affecting consumer purchasing power, the proportion of firms reporting increased revenue decreased by 3.9% from 2022.

In 2023, the proportion of food and beverage companies maintaining revenue growth has decreased across most distribution channels. However, the e-commerce channel continued to demonstrate relatively stable growth compared to the overall market and is the only channel that did not report a revenue decline. Up to 90% of companies with e-commerce operations said they posted revenue growth compared to the same period last year./.

Da Nang Startup and Innovation Festival slated for late September

The Da Nang Startup and Innovation Festival (SURF) 2023 will take place in the central city of Da Nang on September 29, according to the municipal Department of Science and Technology.

Addressing a press conference on September 19, Vice Director of the department Le Thi Thuc said a Da Nang – Seoul innovation space will be launched at the event, aiming to connect the innovation startup ecosystems of Da Nang and the Korean city.

At this event, at least 10 potential startup projects and five scientific and technological solutions will be presented, targeting to connect the supply and demand between startups and investors.

Domestic and international speakers and experts will join together in seminars on building Da Nang into an innovative city, attracting capital inflows for innovative start-ups, and boosting international integration of the local innovation startup ecosystem in the context of globalisation, Thuc said.

Furthermore, a number of other programmes and events will be organised in the framework of the SURF 2023, including an innovation startup exhibition using a virtual reality platform with about 100 participating booths, and an innovation startup competition.

According to Director of the municipal Department of Science and Technology Le Duc Vien, the local startup community has strengths in technology and has developed high-tech and information technology products with high quality.

Since 2020, the municipal authorities have implemented numerous policies to support innovative startups, with 27 startups receiving direct financial support worth over 5 billion VND (over 205,000 USD), Vien said, adding that the city has also offered various support forms for over 160 startup models, including 61 operating effectively.

The annual event, organised for the innovative start-up community in the city, is expected to support potential start-up projects, towards gradually forming venture capital funds and innovation startup ecosystems in the locality, and promoting partnership opportunities between the local startup community and foreign investors.

Int'l conference discusses Vietnam-Laos-Cambodia cooperation in digital economy

More than 100 Vietnamese, Lao, and Cambodian experts, managers, and diplomats joined an international conference on the three countries’ trade and investment cooperation given the digital economy, which took place in Ho Chi Minh City on September 20.

The event was co-organised by the Vietnam Academy of Social Sciences (VASS), Lao Academy of Social and Economic Sciences (LASES), and Royal Academy of Cambodia (RAC).

Addressing the conference, VASS President Dr Phan Chi Hieu said the promotion of the digital economy is considered one of the key tasks to accelerate the restructuring of an economy, associated with innovation in the growth model and the improvement of growth quality, aiming to help a nation escape the middle-income trap and move towards the goal of becoming a developed industrialised country.

The trend comes with opportunities and challenges for nations involved, including Vietnam, Laos, and Cambodia, in their development and expansion of investment and commercial collaboration, he noted.

LASES President Dr Sonethanou Thammavong said the conference boasts an important theme, reflecting the countries’ readiness to build their digital-transformation-oriented socio-economic infrastructure.

Laos' digital transformation, which encompasses various sectors including commerce and investment, is currently at a basic and initial stage. Therefore, Laos hopes to exchange and share experiences with experts from Vietnam and Cambodia and to learn from their experiences, he said.

Emphasising the longstanding relationship between the three countries, RAC Dr Sok Touch assessed that concerning digital transformation efforts, Vietnam has been progressing faster than Cambodia and Laos, especially in the fields of tourism, commerce, and investment. The nations’ teamwork, particularly in the digital economy sector, plays a significant role in promoting the development of each.

The conference focused on clarifying such key topics as digital economic development trends and their application in boosting the countries’ trade and investment, digital-transformation-induced opportunities and challenges for the growth of the trilateral ties, and ways to promote their joint works in the digital age.

Participating experts said that potential for trade and investment cooperation between Vietnam, Laos, and Cambodia is substantial and that recent results achieved have yet to be on par with the potential and advantages of each country.

They suggested the sides establish and improve institutional and legal environments meeting requirements of the international integration era in the context of the digital economy. The nations should also invest in the digital transformation infrastructure and national digital economy.

Vietravel Airlines to supply over 100,000 seats during coming Lunar New Year

Vietravel Airlines plans to offer more than 100,000 seats across its domestic and international flight network during the coming Lunar New Year festival from January 25 to February 24, 2024, to meet the travel demand of passengers.      

The carrier is currently working alongside relevant aviation authorities to ask for permission to increase the frequency of major flights in a bid to meet the increasing travel demand during the biggest national holiday of the year.

A representative from Vietravel Airlines revealed that airfares are likely to increase to a higher price compared to normal days.

However, air ticket prices will be sold in compliance with regulations of the Civil Aviation Authority of Vietnam (CAAV), according to information given by the representative.

Simultaneously, the carrier will launch promotional schemes for this holiday period through its official website and ticket agents to ensure that travelers are able to receive the best support possible.

Passengers are advised to book tickets early in order to choose a suitable flight time frame and reasonable price, while simultaneously purchasing tickets online via the airline official’s channels to avoid buying fake tickets.

Vietravel Airlines predicts that travel demand during the coming holiday period will increase remarkably, with approximately 10 million expected to travel on this occasion, marking an increase of 15% compared to the previous holiday.

Accordingly, several domestic flights to Hanoi, Da Nang, Quy Nhon, Nha Trang, Da Lat, and Phu Quoc are expected to record a surge in booking rates, with the tickets available for sale from mid-November.

Toyota leads VN’s first-ever automotive brand ranking

Toyota is the best automotive brand in Vietnam while Vinfast enters the top 5, surpassing many established global players, and achieves the second position in the northern region, according to Decision Lab Automotive Brand Rankings 2023.

It was closely followed by Mercedes-Benz and BMW in second and third places, respectively. Honda is in fourth place. Other brands that are in the top 10 are Ford, Audi, Hyundai, Porsche, and Lexus.

Unveiled by Decision Lab, the exclusive partner of YouGov in Vietnam, the ranking is based on data from YouGov BrandIndex, a syndicated brand tracker that collects data on over 400 Vietnamese brands daily. This is also the first automotive ranking in the Vietnamese market.

The Decision Lab Automotive Brand Rankings 2023 measures overall brand health by taking the average scores of six YouGov BrandIndex metrics, including general impression, quality, value, corporate reputation, customer satisfaction, and recommendation.

"This ranking provides a comprehensive and unbiased assessment of the brand health of Vietnam’s automotive players, using six metrics that reflect how consumers perceive and interact with them," said Thue Quist Thomasen, CEO of Decision Lab.

It also offers valuable insights for automotive businesses to understand their brand performance, benchmark themselves against their competitors, and identify areas for improvement, he said. 

"We hope this ranking will help automotive businesses make better decisions and drive growth in this dynamic and competitive market,” he added. 

The Decision Lab Automotive Brand Rankings 2023 are calculated using data collected from YouGov's online panel in Vietnam daily from the flagship YouGov BrandIndex solution.  The ranking shows the brands with the highest average Index score between August 31, 2022 and August 30, 2023.

Vietnam represents rising star globally: New Straits Times

Malaysia's leading English language newspaper the New Straits Times has recently published an article highlighting that after a period of hardship and sacrifice, Vietnam is now a rising star globally, with consistent gross domestic product (GDP) growth of about 6% recorded for many years.

The article outlines that the Doi Moi (Renewal) policy helped to inject a fresh sense of dynamism into the Vietnamese economy in the late 1980s. The momentum for a market-driven economy accelerated further, with greater liberalisation and privatisation being implemented in the 1990s.

Following these market reforms, serious overseas investments began pouring into the country, with capital in the billions of US$. Among them are those by Gamuda Land, Petronas and Sunway group from Malaysia, and the Vietnam-Singapore Industrial Parks (VSIP).

It has helped to attract significant investments from the likes of Samsung, Nike, Adidas, and plenty more. Unlike other countries, the nation is blessed with a relatively young population, with this demographic dividend helping to power its labour-intensive manufacturing sector.

Gary Lit Ying Loong, the author of the article, revealed that there is a vibrant community of Malaysians and Singaporeans who both live and work in Vietnam.

Recently, there was a double celebration of Merdeka and Vietnam's National Day for executives at the Royale Bar in Ho Chi Minh City.

Major infrastructural and urban projects have also been completed over recent years. The entire coastal strip of fishermen attap houses in Da Nang has recently been transformed into an exclusive belt of five-star hotels.

The new Hanoi Metro system, built by a Chinese consortium, has served to ease traffic congestion in the thriving metropolis of eight million. After a few delays the metro line in the southern city is expected to open soon, with major plans now underway to construct new ports and airports too.

The economy over the past decade has created more and better jobs. It has also improved the aspirations and living standards of local people, with famous Western brands such as Louis Vuitton, Gucci, and Chanel now having a presence in all major cities.

Fertiliser imports reach two-year high in August

Việt Nam's fertiliser import volume reached the highest in more than two years in August, according to the General Department of Customs, while prices fell over the previous year.

In August, Việt Nam imported more than 472,283 tonnes of fertiliser worth US$159 million, up 54 per cent over July in volume and 85 per cent in value. This was the highest import volume since July 2021.

The fertiliser prices reached $338 a tonne last month, up 19 per cent on-month, but down 26 per cent year-on-year.

Ending August, fertiliser imports rose 13 per cent to 2.5 million tonnes, but the import value fell 19 per cent year-on-year to $833 million.

During the period, the average price of imported fertiliser was estimated at $347 per tonne, a 25 per cent decrease from last year.

China is the country's biggest fertiliser provider so far this year, accounting for roughly half of all imported fertiliser with more than 1.2 million tonnes, valued at $375 million, up 15 per cent on-year in volume and 14 per cent in value.

It was followed by Japan, with more than 225,000 tonnes of imported fertiliser and worth $21 million. 

Room for improvement in VN's green building development

Việt Nam still has a long way to go in reducing its greenhouse emissions, despite making significant progress in the development of green buildings in recent decades, said deputy minister of construction Nguyễn Tường Văn at a conference in Hà Nội yesterday.

According to a report from the Ministry of Construction (MoC), by the end of the second quarter of 2023, approximately 300 green buildings have been assessed and certified using standards such as Lotus (VGBC), Edge (IFC-WB), LEED (U.S. Green Building Council), and Green Mark (Singapore), with a total floor area of around 7 million square metres.

The Southeast Asian country currently ranks 28th in the world in terms of the number of LEED-certified buildings.

Văn said, however, the figure is still a relatively modest one in comparison to the number of buildings constructed and in operation across the country. There is still much to do to improve energy and resource efficiency. In addition, the country has no buildings designed, constructed or managed in a way that can meet net-zero emission objectives.

The deputy minister said major obstacles to the development of green buildings in Việt Nam include the current economic downturn, especially in the property market and difficulties in accessing funding for green projects.

To make matters worse, the market faces an acute shortage of skilled workers in the planning, design, construction and management of green buildings. As of now, there are still no regulations to force the use of green building materials and energy-saving products in the market.

Nguyễn Công Thịnh, deputy head of the Department of Science, Technology, and Environment under the MoC said it's high time the government implemented strong sanctions to ensure projects are energy efficient, instead of hoping developers to take action voluntarily.

He added there are still no action plans and programmes at both the central and local government levels. Awareness remained low while available human and financial resources continued to prove inadequate, making the country's objectives in the development of green building difficult to meet.

Thịnh said the government should introduce incentives for businesses and set up preferential funds for those who are interested in investing in green building development.

Hoàng Cao Thăng, deputy director of the Hà Nội Department of Construction said resource mobilisation, science and technology are all vital parts of the development of green infrastructure, waste management and treatment.

He proposed the city must start the renovation of old and low-income residential areas with a focus on leveraging modern green technologies.

Patrick Liu, CEO of Green Building Council said the benefits of green buildings are many, especially for the end-users. The main challenges, however, lie with raising awareness and implementing financial incentives, including tax benefits for developers and consumers.

Việt Nam has set a target to have 80 certified green buildings nationwide in 2025 and 150 in 2030 as part of the government's commitment made at COP26 to reach net-zero emissions by 2050.

Green Building Week Vietnam 2023

The Green Building Week Vietnam 2023 has been scheduled for 27-28 September throughout many cities and provinces. The event will feature conferences, panel discussions, capacity-building training sessions, and a student green architecture competition.

According to the MoC, over 1,000 participants will attend the event with key areas of interest including design consulting, architecture, real estate, construction materials, equipment, technology, electromechanical products, green and intelligent furniture, energy-efficient products, and low-emission products, among others.

The event will serve as a platform to promote the development of green buildings in Việt Nam, as well as for policymakers, businesses and students to exchange ideas and discuss the current situation of the country's green infrastructures, said the ministry.

FC invests $150 million in Việt Nam's first local currency sustainability bonds to drive green growth

Amidst a green shift in the local business landscape, the International Finance Corporation (IFC) is investing approximately VNĐ3.5 trillion (US$150 million) in Việt Nam's first-ever local currency sustainability-linked bonds (SLBs) issued by BIM Land Joint Stock Company and its subsidiary, Thanh Xuân Joint Stock Company. These bonds aim to facilitate business expansion, job creation, and the promotion of a low-carbon growth model.

IFC's investment is divided into two parts, including more than VNĐ2.3 trillion ($100 million) for BIM Land and nearly VNĐ1.2 trillion ($50 million) for Thanh Xuân Joint Stock Company, both of which are under the BIM Group umbrella. These funds will fuel the Thanh Xuân valley project, an eco-friendly residential community alongside an InterContinental-branded hotel complex and other amenities in Vĩnh Phúc Province. Furthermore, IFC's financing will support water and energy savings initiatives in two BIM Land hotels on Phú Quốc Island.

These SLBs incentivise improved water conservation and energy efficiency across three hospitality assets, potentially reducing CO2 emissions by 4,000 metric tonnes annually. The move aligns with BIM Land's ambition to be a leading Asian property developer with a focus on sustainability.

IFC has collaborated with BIM Land to create a sustainability-linked financing framework with tailoured performance targets. This initiative is pivotal in driving Việt Nam's green transition and attracting responsible investments.

“Private capital is key to Việt Nam’s green transition. The issuance of the first local currency SLBs in the country will signal the viability of innovative green financing instruments as an alternative source of capital for climate-smart projects," said Thomas Jacobs, IFC Country Manager for Việt Nam, Cambodia, and Lao PDR.

“IFC’s funding will also encourage developers to align their interests with responsible investment and to mobilise funding from green capital markets, paving the way for sustainable tourism sector.”

In line with Việt Nam's goals of achieving high-income status by 2045 and net-zero emissions by 2050, IFC's engagements in the country emphasise climate and sustainability. To date, IFC has committed over $900 million to climate-related projects and nearly $1.9 billion in fiscal year 2023 to support local companies in overcoming challenges, including those posed by the COVID-19 pandemic. 

Việt Nam plays important role in supply chains of major global sporting goods brands

Việt Nam plays an important role in the supply chains of major sporting goods brands such as Adidas and Nike, which are taking actions to promote green and sustainable production in the country, heard a recent workshop held in Geneva, Switzerland.

The workshop, discussing the industry’s actions towards a sustainable future, was organised by the World Federation of Sporting Goods Industry (WFSGI) and the Vietnamese Delegation to Geneva within the framework of the World Trade Organisation (WTO) Public Forum 2023.

Sporting goods giants Adidas and Nike have chosen Việt Nam as a main production base for their global supply chains. The 2020 report of Adidas said 98 per cent of its production is located in Asia, with Việt Nam making up 40 per cent.

Diego Antoncic, senior manager for Government Affairs at Adidas, said as main markets of sporting goods, which are developed countries like EU members and the US, are paying more attention to and tightening regulations on environmental, social and governance (ESG), the company has been coordinating more closely with its suppliers in key regions in all aspects to ensure adherence to the rules.

Stefan Seidel, head of Corporate Sustainability at Puma, shared the firm’s environmental efforts around the globe, including in Việt Nam. He said Puma has encouraged and helped factories in Việt Nam to shift to solar and biomass power, reuse cooling water for fabric dyeing and washing, and improve chemical management.

Bertrand Tison, a senior member for European Public Affairs at Decathlon, noted Việt Nam is the second biggest manufacturing base of Decathlon as it houses 130 partner factories and seven retail stores. As a global company with a high sense of corporate and environmental responsibility and to meet requirements of markets, especially the EU, the firm has the responsibility for working with suppliers, particularly those in Vietnam, to reduce the carbon footprint and help fight climate change.

Ambassador Lê Thị Tuyết Mai, head of the Vietnamese Delegation, highlighted the importance the country attaches to the sporting goods industry, noting that sporting goods have made up a large proportion of two of Việt Nam’s key exports, textile - garment and leather - footwear, for many years.

Việt Nam is proud to have become an important manufacturing base of globally famous brands, she said, noting that it is exerting efforts to contribute to the global shift towards sustainable development through implementing the national green growth strategy for 2021-2030, with a vision to 2050.

The country targets that by 2035, its textile-garment and leather-footwear industries will have developed efficiently and sustainably following the circular economy model. To that end, policies solutions will be carried out to elevate local production to a new height – from “made in Vietnam” to “made by Vietnam”, ensure control over supply chains, and meet market’s strict requirements for the sustainability and circularity of export items, according to the ambassador. 

SSC removes Tân Việt Securities from special control list

The State Securities Commission (SSC) has taken the decision to remove Tân Việt Securities Joint Stock Company (TVSI) from its special control list.

On May 18 of this year, TVSI was placed under SSC's special management due to its failure to report the audited financial safety ratio as of December 31, 2022. The control period was in effect from May 18 to September 17.

Following this decision, both Vietnamese stock exchanges in Hà Nội and HCM City decided to suspend TVSI from trading securities on the two listed stock markets and the Unlisted Public Company Market (UPCoM), which is managed by the Hà Nội Stock Exchange. This suspension period was effective from June 27, 2023, until TVSI was removed from the special control list.

As of the current status, the State Securities Commission has lifted its special control status after TVSI published the audit report. In line with this decision, TVSI will now resume its normal trading activities.

Ending June, TVSI reported total revenue of VNĐ134.3 billion (equivalent to US$5.6 million), down 92 per cent year-on-year, and a loss after tax of VNĐ336 billion.

TVSI, founded in 2006, was well-known as a consultant for bond issuance for An Đông Investment Group, an investment company under Vạn Thịnh Phát Group, owned by businesswoman Trương Mỹ Lan. Lan was arrested in October 2022 on allegations of fraud related to the issuance and trading of bonds, with the intent to misappropriate thousands of billions of Vietnamese đồng from investors during the 2018-19 period. 

Temporary suspension of automatic order placement services a short-term solution

The temporary suspension of automatic order placement services, or high-frequency trading (HFT), is necessary in the short term, given the recent technological infrastructure capacity of the stock market, but regulators need to allow the deployment of these services in the future.

High-frequency trading (HFT) is an automated trading platform that large investment banks, hedge funds, and institutional investors employ. It uses powerful computers to transact a large number of orders at extremely high speeds.

These high-frequency trading platforms allow traders to execute millions of orders and scan multiple markets and exchanges in a matter of seconds, thus giving institutions that use the platforms an advantage in the open market.

The State Securities Commission (SSC) has just sent a document to securities companies regarding the use of algorithms, robots and high-frequency orders in placing online stock trading orders, requesting securities companies review and immediately stop these forms of automatic order placement.

According to SSC's assessment, using robots to place automatic online trading orders with high frequency poses many potential risks and affects the stability of the stock market.

It causes a sudden increase in orders from securities companies entering the stock exchanges at the same time, leading to the number of orders entering the floor exceeding the design capacity of the whole system, causing system overload.

According to Trịnh Thanh Cần, General Director of Kafi Securities Company, automatic order placement service supports investors in implementing investment strategies as well as hedging, copy trade, price arbitrage activities for warrants, ETFs, and derivatives products.

“This is a highly developed investment method and is applied in stock investment activities in many developed countries,” he said.

“In Việt Nam, quantitative investment funds have not yet developed strongly, copy trading activities are only at a small-scale experimental level. However, the number of trading orders often increases suddenly at times when market liquidity increases strongly. To accurately determine which activities use high-frequency robots, it is necessary to analyse actual transaction data at stock exchanges.”

“From a business perspective, I would guess that arbitrage activities may have a higher trading frequency, especially at times of high market volatility.”

In fact, automatic order placement activities comply with current laws. However, the current technology infrastructure of the Vietnamese stock market cannot meet this need. For example, HOSE's current system encountered significant problems at times when market liquidity was booming in the 2020 – 2021 period, he said.

Therefore, applying automatic order placement at this time can have a negative impact on the market, especially on small investors. However, management agencies should consider developing the above products soon after upgrading the infrastructure.

Currently, in the US market, the trading proportion of high-frequency trading (HFT) accounts for about 50 per cent of the volume. In European markets, this figure is about 20-30 per cent of daily liquidity. Not only the stock market, but HFT transactions are also popular in the commodity, foreign exchange or cryptocurrency markets, said Bùi Văn Huy, Director of HCM City branch of DSC Securities Company.

At present, temporarily banning the implementation of automatic order placement services is necessary, because it ensures smooth trading for the system, according to Nguyễn Thế Minh, Director of Analysis, Yuanta Viet Securities Company.

“However, automated trading is considered one of the most popular activities in emerging and developed markets. This not only helps increase market liquidity through high-frequency transactions, but also helps investors increase investment efficiency with trading strategies tested by quantitative systems or AI.

“Therefore, in the long term, I think that market management agencies should accelerate the upgrade of trading systems to ensure that automatic trading products are deployed,” he said.

The regulator banning securities companies from placing orders via robots does not have much impact on market liquidity, because currently, only a few securities companies provide this service to customers.

In the Vietnamese stock market, the trading system of stock exchanges’ system was not technologically steady enough to handle the full application of automated order placement services, according to Nguyễn Anh Khoa, Head of Analysis Department, Agribank Securities Company (Agriseco).

“Using robots to increase sudden orders at the same time can lead to system overload, especially in the context of exciting cash flows entering the market today,” he told Việt Nam News. 

NIC collaborates with ASU and Cadence to boost Việt Nam’s semiconductors

The National Innovation Centre (NIC), under the Ministry of Planning and Investment, on Tuesday signed two Memoranda of Understanding (MoU) with Arizona State University (ASU) and Cadence Design Systems (Nasdaq: CDNS) to establish cooperation mechanism between the two sides in the fields of semiconductor microelectronics.

Accordingly, Jeffrey Goss, Vice President of Arizona State University, signed an MoU with Võ Xuân Hoài, NIC’s Deputy Director, on supporting the Vietnamese organisation in building up the infrastructure for the IC design incubation centre at Hoà Lạc High-Tech Park in Hà Nội. ASU and NIC will collaborate with educational institutions in Việt Nam for training and research exchanges on semiconductors. ASU also built partnerships with organisations and businesses in the semiconductor industry globally and sought financing sources to develop the Vietnamese industry's workforce capacities.

To startups, both sides jointly explore opportunities to link bilaterally the ASU Innovation Zones across Phoenix, AZ with the NIC in Hà Nội to foster US and Vietnamese start-up and innovation semiconductor ecosystems.

On the same day, Cadence Design Systems, a leading US company in electronic system design, and NIC also announced a new programme aimed at accelerating IC design innovation in Việt Nam.

NIC will provide Việt Nam universities, training centres, and start-up companies with the technology and education required to design and develop products for the fast-growing, local semiconductor and electronics ecosystem. Meanwhile, Cadence will provide access to its tools to academic institutes selected by NIC, providing students with an opportunity to gain real-world experience creating innovative IC designs.

Synopsys collaborates with Việt Nam's National Innovation Centre to foster IC design talent

Synopsys Inc and Việt Nam’s National Innovation Centre (NIC) on Monday announced their collaboration to advance integrated circuit (IC) design expertise in Việt Nam. This partnership entails Synopsys’s support for the establishment of a chip design incubation centre by NIC.

NIC is currently setting up the infrastructure for the IC design incubation centre at Hòa Lạc High-Tech Park in Hà Nội. Synopsys will contribute its advanced prototyping and emulation technologies to enhance software and hardware System-on-Chip (SoC) co-designs. The collaboration's primary objectives are to nurture a skilled IC design workforce and foster the startup design community in Việt Nam, aligning with the Vietnamese government's strategy to expand the IC design workforce and related startup ecosystem.

Synopsys will provide training licenses, including curriculum, educational resources, and a "Train the Trainers" programme to assist NIC in establishing the chip design incubation center, which is anticipated to open soon.

Võ Xuân Hoài, Vice Director of NIC, said: "Synopsys is a leader in semiconductor design software, IP and software security innovation. The company's cutting-edge design technology will greatly benefit NIC's IC design incubation centre in Việt Nam, equipping our future chip designers with the latest industry trends. This collaboration promises to bolster Việt Nam's semiconductor industry as a whole."

Dr. Robert Li, Synopsys Sales Vice President of Taiwan and South Asia, commented: "NIC serves as Việt Nam's innovation hub in the high-tech industry, and we are delighted to support the establishment of NIC's chip design incubation center with Synopsys' advanced technology. Over recent years, Synopsys has introduced numerous innovative technologies to our Vietnamese partners, aiding them in strengthening IC design capabilities and reducing time-to-market.

“We hope that our collaboration with NIC will not only yield new technologies for our Vietnamese partners but also nurture young talent and drive the development of Vietnam's semiconductor industry."

The NIC, established in 2019, aims to support and develop Việt Nam's innovation ecosystem, including the semiconductor industry, aligning with the country's growth model based on science and technology.

Minister of Planning and Investment Nguyễn Chí Dũng highlights Việt Nam's potential for semiconductor industry development, citing a stable political system and advantageous geographical location. The Vietnamese Government is actively promoting investment cooperation and the growth of the semiconductor sector. Ministries like Planning and Investment, Information and Communications, among others, have been entrusted with crafting a comprehensive industry development plan and a human resource initiative aimed at training 50,000 engineers for the industry by 2030. 

HCMC Brand Awards 2023 to be launched this week

The HCMC Department of Industry and Trade, in collaboration with the Saigon Times Group, will officially launch the HCMC Brand Awards 2023 on Friday, September 22, at the Saigon Times headquarters in District 1, HCMC.

The HCMC Brand Wards 2023, now in its fourth year and themed “Innovation and Sustainability”, is co-organized by the department and the Saigon Times Group under the direction of the HCMC People’s Committee.

It aims to recognize and honor businesses in HCMC that have achieved notable results in brand building and made significant contributions to the city’s sustainable development.

At the launching ceremony, the organizers will announce the panel of judges, the criteria and regulations, as well as the timeline and procedures for submitting entries for the HCMC Brand Awards 2023. 

The HCMC Brand Awards 2023 will have several new features, such as the inclusion of independent experts as advisors and surveys conducted by the organizing committee to collect consumer feedback on the brands of the participating businesses.

Alongside the information about this year’s awards, the organizing committee will also provide details about previous activities to support the winners of the third HCMC Brand Awards 2022.

As part of the launching ceremony, the “HCMC Brand Awards” seminar will be held with the participation of leading experts in brand development. The seminar will consist of two discussion sessions.

The first session with the “Bringing HCMC’s Brands to the World” theme features two keynote speakers: Nguyen Ngoc Hoa, chairman of the HCMC Union of Business Associations, and Tran Tue Tri, member of the AVSE Global Executive Board and advisor for Vietnam Brand Purpose.

The second session, themed “Building A Sustainable Brand: From Concept to Reality,” will have two keynote speakers: Pham Ngoc Phu Trai, founder and chairman of GIBC, and former chairman and CEO of PepsiCo Indochina, and Tran Hoang, chairman of the Vietnam Marketing Association.

During the two discussion sessions, experts and representatives of businesses will provide information about brand development in Vietnam and around the world, corroborated by specific examples and evidence. It is expected to support businesses in planning and implementing brand development activities in the near future.

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