Minister of Industry and Trade Nguyen Hong Dien held a working session with US Secretary of Commerce Gina Raimondo in New York recently, on the occasion of a working trip to attend the 78th session of the United Nations General Assembly and bilateral activities.

Both sides underscored the need for broader and deeper cooperation between the management agencies of both countries, and between the Vietnamese Ministry of Industry and Trade (MoIT) and the US Department of Commerce (DOC) in particular, in order to actualise the vision of the two countries' leaders and to set development goals that match the bilateral comprehensive strategic partnership.

Reiterating the importance of the recognition of Vietnam's market economy status, Dien suggested the DOC make drastic directions to expedite and complete the Changed Circumstances Review (CCR) process this year, in line with the spirit of the Joint Statement on September 11 and the Action Plan agreed by the two countries’ leaders.

The MoIT, in its role as the Chair of the Vietnam Sub-Committee on Trade and Investment of the Vietnam-US Trade and Investment Framework Agreement (TIFA) Council, pledges to continue actively working with relevant US regulatory agencies to fully address the concerns of both countries, thereby maintaining a stable trade relationship toward a balanced, sustainable and mutually beneficial trade balance, he said.

About the discussions within the Indo -Pacific Economic Framework for Prosperity (IPEF), Dien welcomed the results achieved by IPEF member countries in basically concluding negotiations on Pillar II - Supply Chains, affirming that as an active and responsible member of both multilateral and regional cooperation frameworks, Vietnam consistently supports and stays ready to engage in discussions with other member countries to contribute to building practical contents that suit development conditions of each member.

At the same time, the minister expressed serious concerns over the increasing frequency of trade remedy investigations on Vietnamese exports to the US, particularly industrial products, and proposed that the DOC carefully consider Vietnam's opinions on each specific case to ensure trade liberalisation, fairness, objectivity and transparency in two-way trade.

Raimondo acknowledged that Vietnam has formally asked the DOC to initiate a CCR to consider granting market economy status to the country within the framework of specific cases. She said there would be direct guidance to expedite the review process towards the early recognition of Vietnam's market economy.

Expressing a high level of interest in the progress of the IPEF negotiations, she wished to quickly conclude the remaining pillars of the talks by the end of this year.

At the end of the working session, both ministers agreed that the two sides should keep fostering strategic trust, enhance discussions and deepen cooperation in core areas for the future such as energy, aviation, rare earth and essential minerals, workforce training, energy transition, digital economy and green production. They also committed to finding ways to boost joint work to deliver on the commitments by their leaders.

US investment funds appreciate potential of Vietnam

Prime Minister Pham Minh Chinh, who is in the US for the high-level week of the UN General Assembly’s 78th session, had a seminar and a working dinner with leaders of multinational businesses and leading US investment funds in New York on September 21 (local time).

At the seminar, leaders of businesses and investment funds as well as Vietnamese State management agencies discussed measures and orientations to attract more financial resources for socio-economic development, especially the building and development of financial centres in Vietnam.

Leaders of US investment funds held that amid fluctuations in the world geo-political and economic situation, Vietnam has been evaluated by international organisations as a bright spot in investment attraction with many favourable factors for the development of a modern financial market towards the formation of a financial centre capable of linking with financial centres in the region and around the world.

They pointed to Vietnam’s advantages in stable macro-economy and political situation, favourable location, improved investment and business environment, extensive international economic integration, fast digital economic development and innovation, and expanding economic scale and financial market.

They advised Vietnam to learn from international experience while choosing the model and method of building its financial centre which is compatible with international practices and suits the country’s real conditions.

Addressing the event, PM Chinh said that the elevation of the Vietnam-US relations to a comprehensive strategic partnership during US President Joe Biden’s visit to Vietnam has opened up new trade and investment opportunities between the two countries.

He said that in the time to come, Vietnam will focus on promoting green, digital and circular economy and science-technology and innovation development to engage more deeply into the global investment structure, trade order and supply chain, while continuing to open its market, attracting high-quality foreign investment, supporting businesses in science-technology development, strengthening investment in infrastructure system, and focusing on high-quality human resources training.

The process requires the companion and resources sharing from international friends, multinational businesses and leading investment funds in the world and the US in particular, he stated.

The Vietnamese Government leader asked for experience sharing and political consultations from global firms and investment funds in mobilising financial resources and building of the financial centre in Ho Chi Minh City, as well as in developing other markets such as land-use rights, science and labour markets.

Vietnam hopes to receive their suggestions to enhance the governance capacity for Vietnamese public and private sectors, heading to a high level of transparency, efficiency and sustainable development, he added.

He pledged that Vietnam will continue to improve its business environment, ensuring the legal and legitimate rights and interests of investors, and creating optimal conditions for investors to operate effectively and sustainably in the country.

Vietjet Aviation Academy join IATA’s training network

Vietjet Air and the International Air Transport Association (IATA) have just signed a training agreement, under which Vietjet Aviation Academy is appointed as IATA’s latest Regional Training Partner (RTP) in Vietnam.

Under the agreement, the academy will offer IATA training courses designed by industry experts. These courses are internationally recognized training programmes and are updated frequently to keep pace with the latest regulatory procedures, new standards, and the fast-changing demands of the aviation industry.

At the signing ceremony, Vietjet Vice President and Chairman of Vietjet Aviation Academy Luong The Phuc said human resources are the focus of Vietjet’s development plans, and the aviation industry at large, adding the academy provides trainees with the best learning environment where they attend IATA courses, receive IATA certificates, and access the most modern training equipment.

Meanwhile, Regional Vice President for Asia-Pacific of IATA Philip Goh said that the cooperation between the two sides will support aviation human resources development in Vietnam and in the region.

Local firms seek to boost trade ties with Thai businesses

A conference to promote trade exchanges between businesses in the north-central region of Vietnam and those in Khon Kaen and Ubon Ratchathani provinces in the northeastern region of Thailand was held in Thailand on September 18-20.      

As part of the national programme on trade promotion, the event was jointly organised by the Vietnamese Consulate General in Khon Kaen, the Investment, Trade and Tourism Promotion Centre of the central province of Quang Tri, and the authorities of Khon Kaen and Ubon Ratchathani provinces.

Vietnamese Consul General Chu Duc Dung stressed that there remains great potential for Vietnamese goods to penetrate the Thai market because this country is home to a large community of overseas Vietnamese, with many of whom own supermarkets, distribution and supply stores.

He affirmed that the Consulate General is always ready to accompany Vietnamese and Thai businesses in promoting trade cooperation in the spirit of harmonising benefits, contributing to promoting stable development in both nations.

Tran Phi Tuong, deputy director of the Investment, Trade and Tourism Promotion Centre of Quang Tri province, head of the Vietnamese delegation, said that businesses joining the delegation want to promote products and set up partnership, and sign memorandum of understanding (MoU) and contracts in production, business and consumption of products with Thai companies.

Tuong expressed his hope that Thai businesses will share information related to the market, and guide Vietnamese businesses to participate in the supply chain in their supermarket and retail systems.

Leaders of Khon Kaen and Ubon Rachathani provinces briefed on the Thai localities’ geography, population, and socio-economic situation.

Khon Kaen's Deputy Governor Suthep Maneechote said that businesses, which are the major economic drivers of Khon Kaen, are operating in important industries such as renewable energy, bio fuel and solar power.

Meanwhile, Songluk Woraphai, deputy governor of Ubon Ratchathani, said that the province has a strategy to focus on promoting potential in trade and investment, and cross-border commerce in order to increase competitiveness.

The conference offered a good opportunity for the local authorities and businesses of the two sides to connect and expand trade links, thus strengthening trade ties between the two countries in the future, she said.

During their trip, Vietnamese businesses signed 14 MoUs on cooperation with Thai firms. They also had working sessions with Vietnamese associations, joined business matching activities and trade fairs, and visit a number of supermarkets and large distributors in Khon Kaen and Ubon Ratchathani.

Moody’s launches Vietnam-based credit rating agency

On September 19, Moody’s Corporation announced that it had launched its credit rating agency in Vietnam in a collaboration with local financial institutions.
 
Vietnam Investors Service and Credit Rating Agency JSC (VIS Rating) was established by the Vietnam Bond Market Association, and received an operating licence from the Ministry of Finance on September 18.

With a 49 per cent holding, Moody's is the majority shareholder in VIS Rating. Along with Moody's, ACB Securities Company, Dragon Capital Finance Ltd., Nam A Bank Asset Management Co., Ltd., VNDIRECT Securities Corporation, and VPS Securities JSC are also founding stockholders. VIS Rating operates independently of Moody’s.

Michael West, president of Moody’s Investors Service said, “Moody’s recognises the vital role that the local debt capital market plays in driving Vietnam’s economic growth. As a global leader in credit ratings, research, and risk analysis, our international presence and local experience will position VIS Rating as the agency of choice in Vietnam.”

Wendy Cheong, managing director and regional head of Asia-Pacific at Moody’s Investors Service and member of the VIS Rating Board of Management added, “VIS Rating broadens Moody’s network of domestic partners in Asia-Pacific and complements our cross-border coverage in Vietnam. We are committed to providing global best practices, as well as technical support to bolster VIS Rating’s capabilities.”

The value of Vietnam’s outstanding corporate bonds stood at around 13 per cent of GDP as of August, pointing to robust growth potential in its debt capital market.

As the domestic bond market develops, credit ratings and research will play a significant role by helping companies access new capital, formulate funding strategies, signal transparency, and maintain investor confidence during times of market stress.

Winners of Qualcomm Vietnam innovation challenge announced

Qualcomm Technologies Inc., a subsidiary of Qualcomm Incorporated, has revealed the top three finalists of the third Qualcomm Vietnam Innovation Challenge (QVIC), a program dedicated to supporting startups in promising new technology sectors.

RYNAN Technologies JSC., with its smart insect monitoring system, claimed the first prize. XB Technology Company Limited secured the second position with its drone delivery system based on cellular network connectivity. The third-place winner was Benkon Corp., a company specializing in energy-saving solutions for air conditioners.

The program awarded US$100,000 to the winner, US$75,000 to the runner-up, and US$50,000 to the second runner-up.

Throughout the program, these finalists, along with seven other shortlisted companies, engaged in a competitive process aimed at enhancing their technology innovations and product offerings. This process unfolded over several stages of the QVIC program, including the application phase, shortlist announcement, incubation period, and grand finale.

This year’s program received the highest number of applicants in its history, with 141 companies from across the nation applying online between October 2022 and January 2023.

Upon completing the program, QVIC participants will become members of Qualcomm Technologies’ global network and gain opportunities to participate in trade shows, customer meetings, and other events.

During the incubation period, Qualcomm Technologies provided shortlisted companies with workshops and training in intellectual property, as well as entrepreneurship skill development. The activities covered a broad range of topics such as customer discovery, business modeling, financial planning and budgeting, fundraising, branding, and pitching skills.

Participants also received technical support related to their innovations submitted for consideration in QVIC 2023, including access to Qualcomm Vietnam’s lab in Hanoi and consulting on product development during the incubation period.

In addition, shortlisted startups received grants of up to US$10,000 to support their product development during QVIC 2023, along with reimbursements of up to US$5,000 for filing a maximum of two patent applications.

First launched in 2019, QVIC aims to encourage the development of the emerging technology ecosystem in Vietnam with the support of the Ministry of Science and Technology.

Utilizing Qualcomm Technologies’ cutting-edge mobile platforms and technologies, the program identifies and nurtures innovative small and medium-sized companies operating in key technology areas such as 5G, Internet of Things (IoT), robotics and drones, artificial intelligence (AI), smart cities, wearable devices, and multimedia technologies.

Transimex to issue 36.5 million shares to pay dividend

Thanh Cong Textile Garment Investment Trading JSC (Transimex) has announced a decision to issue 36.5 million shares to pay a dividend of 30% for 2021 and 2022.

Shareholders will receive 30 new shares for every 100 shares held. The ex-dividend date is October 4.

Funding for this distribution will be sourced from the undistributed after-tax profits of the company shown in its 2022 audited consolidated financial statement.

In January, Transimex distributed shares to its shareholders at 15%, meaning that for every 100 shares held, shareholders got 15 new shares.

In related news, on September 11, New Asia Investment Corporation, a major shareholder of Transimex, sold 906,000 shares, reducing its ownership from 8.07% to 7.33%.

On the same day, Viet Culture Services Corporation purchased the same number of shares, increasing its stake in Transimex to 10.07%.

In its recent semi-annual financial statement, Transimex reported VND987 billion in revenue and VND78 billion in profit after tax, plummeting 57.8% and 81.6% over the same period last year.

Meta to ramp up investment in Vietnam

Facebook-owner Meta has expressed its intention to boost investment and resume manufacturing metaverse equipment in Vietnam.

During Prime Minister Pham Minh Chinh’s trip to the U.S., he visited the headquarters of Meta and met with its leaders on the evening of September 18 (local time).

Joel Kaplan, Vice President for U.S. Public Policy at Meta, said that the social network giant began producing metaverse equipment in Vietnam several years ago, but the production was temporarily halted due to the Covid-19 pandemic.

“Currently, Meta want to expand investment in Vietnam, including the production of metaverse equipment,” he said.

Meta also affirmed its commitment to continuing various collaborative activities aimed at supporting small, medium, and micro-sized businesses in Vietnam. These initiatives include helping them reach customers and providing digital transformation training for their workforce.

Kaplan said that Meta had worked with the Ministry of Planning and Investment to recognize 12 outstanding innovative solutions for promoting digital transformation ahead of U.S. President Joe Biden’s State visit to Vietnam.

Meta signed a memorandum of understanding with Vietnam’s National Innovation Center to enhance digital transformation efforts and partnered with the Vietnamese Government Portal, achieving the distinction of having the most successful government page in the region with 4.2 million followers.

During the meeting, Prime Minister Chinh appreciated Meta’s ongoing commitment to strengthening cooperation with Vietnam. He believed that cooperation between U.S. and Vietnamese companies would play a crucial role in making the most of the comprehensive strategic partnership between the two nations.

The Vietnamese PM proposed expanding cooperation in areas such as training, cybersecurity, and the dissemination of accurate information on social media.

Prime Minister Chinh also had the opportunity to experience Meta’s virtual reality technology at the Meta headquarters during this visit.

VNDIRECT announces leadership reshuffle

VNDIRECT Securities Corporation, which trades its VND shares on the Hochiminh Stock Exchange, has announced a top leadership reshuffle, effective from September 18.

Nguyen Vu Long, who previously served as the firm’s board chairman, has been picked as new general director, swapping roles with General Director Pham Minh Huong, who now chairs the board of directors at VNDIRECT.

Huong has a career spanning nearly 30 years in the financial sector. She used to work for Citibank as director of Currency Trading and Financial Markets and served as general director of Saigon Securities Inc. (now known as SSI Securities Corporation).

She first joined VNDIRECT as chair of the board in 2006 and moved to the role of general director in April 2023.

Nguyen Vu Long, who earned a Master’s degree in Economics at the University of New South Wales, has been with VNDIRECT for 8 years. At the company he has assumed different roles including head of currency trading, and director of capital resources.

Long was appointed acting general director in November 2021 and became a board member in April 2022. He assumed the post of chairman in April 2023 before this recent appointment as general director.

Fruit exports to China surge

Vietnam’s fruit exports to China have surged at the land and railway border gates in the northern province of Lang Son, according to the authorities of the Dong Dang-Lang Son border gate’s economic zone.

On September 15, the land border gates of Lang Son processed customs clearance procedures for 521 container trucks carrying export cargo to China, with 421 of them loaded with fruits.

In the previous week, from September 8 to 14, a total of 8,698 container trucks passed through the provincial border gates, up by 18.4% compared to the preceding week.

Among these, 3,247 trucks transported Vietnam’s exports to China, a 23% rise over the previous week, while 5,451 container trucks brought imports to Vietnam, a 16% increase.

Total trade revenue reached US$1.13 billion during that week.

Lang Son has six border gates for customs clearance of import and export transactions with China.

Since the beginning of this month, imports and exports between Vietnam and China have grown over previous months, with around 1,000 container trucks cleared by the customs a day. Nearly 500 of these container trucks have transported exports to China, primarily consisting of fruits from Vietnam’s southern provinces, including dragon fruit, durian and banana.

According to the General Department of Vietnam Customs, the export of fruits and vegetables to China continues robust growth.

In August, exports to the neighboring market surged by 186.3% in value versus the same period last year, reaching US$266.3 million.

In the first eight months of the year, the export value to China reached US$2.3 billion, up by a staggering 134% over the previous year.

Organic farming area accounts for 0.5 percent of total agricultural land

On Sep 19, the Vietnam Organic Agriculture Association, in collaboration with the Department of Agriculture and Rural Development of Ho Chi Minh City, hosted the 4th "Vietnam Organic Day" to promote the growth of organic agriculture in the region.

On the morning of September 19, the Vietnam Organic Agriculture Association, in collaboration with the Department of Agriculture and Rural Development of Ho Chi Minh City, hosted the 4th "Vietnam Organic Day" to promote the growth of organic agriculture in the region.

According to the Vietnam Organic Agriculture Association, the total area of organic agriculture production in 2021 was 119,105 hectares, accounting for 0.5 percent of the total agricultural land area. Vietnam ranks 7th in Asia in terms of organic agricultural land area and 3rd among ASEAN countries. Currently, the country has 7,310 farmers involved in organic production, along with 60 business and distribution units engaged in exporting organic agricultural products.

Mr. Ha Phuc Mich, Chairman of the Vietnam Organic Agriculture Association, pointed out that Vietnam's export turnover of organic agricultural products remains fairly low, at just over US$335 million annually, while the global organic market value in 2022 reaches approximately $183 billion. The Organic Agriculture Development Plan for the 2020-2030 period, endorsed by the Prime Minister in Decision No. 885/QD-TTg/2020, aims to allocate 2.5-3 percent of agricultural land for organic production and strives for an added value of organic products to be 1.5-1.8 times that of conventional products. It can be concluded that the current period presents a favorable opportunity for organic agriculture development.
 
According to Mr. Dinh Minh Hiep, Director of the HCMC Department of Agriculture and Rural Development, the development of organic agricultural production in the city links to the goal of environmental protection, biodiversity enhancement, and the contribution to the growth of tourism and services. The city is also a significant consumer of organic agricultural products.

The city is focusing on key strategies, including training, workshops, and the promotion of organic products. It is also conducting surveys and evaluating the conditions for organic agricultural production while identifying suitable organic agricultural products. Additionally, efforts are being made to incorporate science and technology into organic agriculture, implement supportive policies for its development, and propose specific policy recommendations.

In the coming time, HCMC intends to encourage businesses to expand the organic farming area and offer support to those investing in this sector.

Hanoi removes barriers to applying high tech to farming

The Hanoi government has adopted many solutions to remove barriers to developing high-tech agriculture.

Accordingly, the city has funded enterprises, cooperatives, cooperative groups, farms, and households to process and preserve high-tech agricultural products.

Under the restructuring plan of Hanoi's agricultural sector, the city has spent over VND204 billion (US$8.8 million) to support the high-tech agriculture program and VND233 billion (US$10 million) for enterprises investing in agriculture and rural development. 

At the same time, the city has encouraged the application of high technology in the cultivation, breeding, processing, and trading of agricultural products because the application of high-tech in agriculture is inevitable for the capital's agricultural sector, especially in the face of the industrial revolution 4.0, which has a strong impact on socio-economic life.

Many agricultural models with high technology in Hanoi have achieved good economic value in line with the actual production situation. Duong Thi Thu Hue, Director of Kinoko Thanh Cao Import-Export Co., Ltd (Doc Tin Commune, My Duc District), said the company has 3,000 square meters of land for mushroom cultivation. The company has adopted Japanese technology and packaging production processes. It produces three tons of all kinds of mushrooms every day, supplying supermarkets and grocery stores all over the country with high annual sales.

Director of Lac Hoa Limited Company Truong Cao Son said that 70% of his investment in high-tech agriculture combined with the ecotourism business model in Tien Xuan Commune (Thach That District) came from a preferential loan of the city's agricultural extension fund. The money was used to build water supply canals and drainage systems.

Meanwhile, Le Van Lanh, Director of the Nam Phuong Tien Agricultural Cooperative (Nam Phuong Tien Commune, Chuong My District), received an 80% subsidy on the cost of seeds to grow organic pomelo with technology application in production.

Vu Thi Huong, Director of the Hanoi Agricultural Extension Center, said there are currently 164 models of high-tech agricultural production in the city. "The application of science and technology in agricultural production has created products that ensure quality, food safety, clear origin, high economic efficiency, and contribute to improving people's lives," Huong added.

Commenting on the support policies, Ta Van Tuong, Deputy Director of the Hanoi Department of Agriculture and Rural Development, said that despite the shortcomings, the policies have initially helped businesses overcome their capital shortage.

He suggested that businesses can seek support from the Vietnamese government with a VND100 trillion (US$4.3 billion) loan package for high-tech agriculture.

He noted that the city has issued a series of policies to promote agricultural development, including a one-time support of the loan interest rate for three years following the loan contract. This is an opportunity for cooperatives and enterprises to access policies when investing in high-tech agriculture.

In a broader move, Hanoi's agricultural sector continues to coordinate with localities to strengthen human resources training for high-tech agricultural development, create a driving force to attract enterprises to invest in the agricultural sector, and ensure farmers' livelihoods, Tuong stressed.

Petrol prices forecast to rise nearly 4% in upcoming adjustment: VPI

The artificial intelligence (AI) and machine learning (ML) algorithms of the Vietnam Petroleum Institute (VPI) under the Vietnam Oil and Gas Group (Petrovietnam) forecast that the retail prices of petrol will rise by nearly 4% in the upcoming adjustment on September 21.

Accordingly, the price of E5 RON92 and RON95 will increase by 867 - 977 VND per litre to 24,337 VND and 25,847 VND per litre, respectively.

Meanwhile, the retail price of oil is likely to increase by over 3%.

The prices of diesel may rise by 750 VND to 23,800 VND per litre, while kerosene is predicted to increase by 779 VND to 23,959 VND per litre. The price of mazut oil is likely to go up by 503 VND to 18,202 VND per litre.

Vietnamese firms seek to boost trade ties with businesses in Thailand's northeastern region

A conference to promote trade exchanges between businesses in the north-central region of Vietnam and those in Khon Kaen and Ubon Ratchathani provinces in the northeastern region of Thailand was held in Thailand on September 18-20.

As part of the national programme on trade promotion, the event was jointly organised by the Vietnamese Consulate General in Khon Kaen, the Investment, Trade and Tourism Promotion Centre of the central province of Quang Tri, and the authorities of Khon Kaen and Ubon Ratchathani provinces.

Vietnamese Consul General Chu Duc Dung stressed that there remains great potential for Vietnamese goods to penetrate the Thai market because this country is home to a large community of overseas Vietnamese, with many of whom own supermarkets, distribution and supply stores.

He affirmed that the Consulate General is always ready to accompany Vietnamese and Thai businesses in promoting trade cooperation in the spirit of harmonising benefits, contributing to promoting stable development in both nations.

Tran Phi Tuong, Deputy Director of the Investment, Trade and Tourism Promotion Centre of Quang Tri province, Head of the Vietnamese delegation, said that businesses joining the delegation want to promote products and set up partnership, and sign memorandum of understanding (MoU) and contracts in production, business and consumption of products with Thai companies.

Tuong expressed his hope that Thai businesses will share information related to the market, and guide Vietnamese businesses to participate in the supply chain in their supermarket and retail systems.

Leaders of Khon Kaen and Ubon Rachathani provinces briefed on the Thai localities’ geography, population, and socio-economic situation.
Khon Kaen's Deputy Governor Suthep Maneechote said that businesses, which are the major economic drivers of Khon Kaen, are operating in important industries such as renewable energy, bio fuel and solar power.

Meanwhile, Songluk Woraphai, Deputy Governor of Ubon Ratchathani, said that the province has a strategy to focus on promoting potential in trade and investment, and cross-border commerce in order to increase competitiveness.

The conference offered a good opportunity for the local authorities and businesses of the two sides to connect and expand trade links, thus strengthening trade ties between the two countries in the future, she said.

During their trip, Vietnamese businesses signed 14 MoUs on cooperation with Thai firms. They also had working sessions with Vietnamese associations, joined business matching activities and trade fairs, and visit a number of supermarkets and large distributors in Khon Kaen and Ubon Ratchathani.

Exhibition on innovative fabrics opens in HCM City

Vietnam Texfuture 2023 Fall Winter, an international innovative fabric exhibition, opened in Ho Chi Minh City on September 20.

It has the theme "Going recycling - Going circular,” and has attracted more than 15 brands and 200 Vietnamese and foreign exhibitors who are showcasing recycled, functional, natural, and synthetic fabrics, innovative technologies and solutions, textile accessories, eco-friendly fashion, and digital transformation solutions.

The event also includes business matching activities, forums where industry experts will speak about new ideas to drive a more sustainable textile industry, and tours to leading garment and textile factories.

Speaking at the opening ceremony, Tran Ngoc Liem, Director of the Vietnam Chamber of Commerce and Industry’s HCM City branch, said the garment and textile industry has faced difficulties this year, causing exports to fall by 14.4% in the first eight months to 22.5 billion USD.

But there are clear signs of recovery with exports increasing steadily for the last four months, he said.

“US President Joe Biden's visit to Vietnam this month and the elevation of bilateral relations to a comprehensive strategic partnership is conducive for the export of Vietnamese goods, especially garment and textiles,” he said.

Organised by the VCCI, Sustainable Textile Solutions and Tengda Exhibition, the exhibition at the Thisky Hall convention centre in HCM City’s Thu Duc City will go on until September 22 and is expected to attract over 2,500 visitors.

Vietnam not subject to Indonesia's self-defence duties on imported evaporators, rolling papers

Vietnam has been excluded from countries subject to self-defence duties on evaporators or condensers imported into Indonesia from September 5, as it is on the list of developing countries with insignificant exports to Indonesia, reported the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam.

Accordingly, the Indonesia Safeguards Committee (KPPI) has decided to apply the extension of self-defence taxes globally from September 5, 2023 to September 4, 2026.

Evaporators or condensers with HS code 8418.99.10, part of the refrigerators, freezers or other refrigeration/freezing equipment, will be subject to a self-defence tax rate of 12.5% in the first year from September 5 – September 4, 2024, and 11% in the second year from September 5, 2024 to September 4, 2025, and 9.5% in the third year from September 5, 2025 to September 4, 2026.

The KPPI has also issued a notice to extend the application of self-defence duties on several rolling paper products imported into Indonesia from November 30, 2023, including cigarette rolling paper, whether or not cut to size or in small booklets or pre-rolled into tubes with HS codes 4813.20.21, 4813.20.23, 4813.20.31, 4813.20.32, 4813.90 .11, 4813.90.19, 4813.90.91 and 4813.90.99.

GL Cables, Panasonic cooperate to develop smart lighting products

GL Cables Co., Ltd. and Panasonic Vietnam Co., Ltd. signed a strategic cooperation agreement to develop smart lighting products at a September 20 ceremony in Chau Duc Industrial Park in the southern province of Ba Ria - Vung Tau.

Speaking at the signing ceremony,  Ho Thanh Tung, Chairman of the Board of Directors of GL Cables said strategic cooperation between the two companies aims to promote market development, and diversify products to meet the demand of consumers.

GL Cables specialises in producing high-tech cable products such as control cables, signal cables, fireproof cables, audio cables and cables for robot systems, Tung said, noting that the firms is set to produce cables for the electric vehicles and automobile industries in order to diversify the company's products.

Representing Panasonic Vietnam, Ryu Yasuda said that with the goal of improving the quality of life of consumers, Panasonic always considers reliability, safety and high quality as the most important values for its all products and services.

The cooperation with GL Cables is the beginning of providing Panasonic lighting products to the Southeast and Central Highlands regions, he added.

GL Cables was established in 2008. Its products are manufactured in accordance with a closed production process meeting Vietnamese and international standards such as IEC (Europe) JIS (Japan), CNS (China), and achieving ISO 9001:2008, QCVN, TCVN 9618 (IEC 60331) certifications.

Shipping firms eye rosier future

Vietnam's import-export sector is showing signs of improvement amid rising demand from major markets such as the United States and Europe. Since early July, world markets have witnessed a recovery in sea freight prices, a signal to many that the shipping industry has overcome the challenging times of the previous eighteen months.

Furthermore, the Vietnam Maritime Administration recently announced a draft to replace the Ministry of Transport’s Circular No.54 concerning the pricing of container handling and other associated services at Vietnamese seaports.

The draft proposes a 10 per cent increase in the price of container handling services effective from January 1, 2024 in various ports including Haiphong, Ho Chi Minh City and the Cai Mep-Thi Vai seaport complex in the southern province of Ba Ria-Vung Tau.

In addition, the draft proposes terminals able to receive ships capable of transporting more than 160,000DWT can impose a 10 per cent additional increase for loading and unloading services, meaning that those terminals could increase fees by as much as 20 per cent.

As a result of these developments, shipping stocks have been actively traded on the stock exchange of late, with several firms witnessing steady increases in share prices in recent trading sessions.

Hanoi-based securities firm VNDIRECT JSC has predicted that Hai An Transport and Stevedoring JSC, trading under the ticker symbol HAH, will improve, particularly as we head into 2024. In the first half of this year, Hai An achieved revenue amounting to $53.4 million with a post-tax profit of $9.1 million, down 19 and 50 per cent respectively on-year.

VNDIRECT's forecast suggests that Hai An's 2023 profit would fall 25 per cent on-year, before posting a 25 per cent jump in 2024, and its post-tax profit would total $19 million this year, increasing to $21.7 million next year.

The company currently operates 11 container ships, with a total carrying capacity of approximately 16,000TEUs, accounting for nearly 40 per cent of the carrying capacity of Vietnam’s entire shipping container industry. The company plans to receive four new container ships of 1,800TEUs each over the next 12 months, bringing the capacity of their fleet to more than 23,000TEUs.

Gemadept Corporation, under the ticker GMD, saw $76.5 million in consolidated revenue in the first half of 2023, down 2 per cent on-year, and $83.2 million in post-tax profit, a three-fold increase for the same period last year. The strong profit growth came as the shipper registered more than $78.6 million in financial income from a capital transfer deal at Nam Hai Dinh Vu Port in the first six months of the year.

SSI Securities expects Gemadept to handle 1.4 million TEUs of containers in the second half of 2023, up 9.5 per cent compared to the first half. Its total weight load for the year is estimated to be 2.9 million TEUs, down just 6 per cent on year. In 2024, the figure is expected to reach 3.5 million TEUs, a jump of 22 per cent.

On September 6, the GMD ticker reached an historic peak of VND63,900 ($2.7), showing a 46.2 per cent jump since the start of the year.

Vietnam Ocean Shipping JSC, trading under the VOS ticker, earned $67.2 million in revenue in the first half of 2023, an increase of more than $16.5 million on-year. However, its post-tax profit, fell $10.1 million for the same period to just $3.12.

An Binh Securities in Hanoi has suggested that the demand from major export markets in the United States, Europe, and China will bottom out in the second half of 2023 and then gradually start to recover.

BIS pledges support for Vietnam in banking infrastructure development, digital transformation

The Bank for International Settlements (BIS) will continue to accompany and support the State Bank of Vietnam (SBV) in investing in payment and financial infrastructure development and promoting digital transformation, contributing to improving risk management in the local banking sector, stated BIS General Manager Agustin Carstens.

Carstens made the statement at a meeting with Politburo member and Chairman of the Party Central Committee’s Economic Commission Tran Tuan Anh in Hanoi on September 21.

Welcoming Carstens on his first visit to Vietnam as BIS General Manager, Tuan Anh thanked the organisation for its support for the SBV in joining and familiarising itself with BIS cooperation mechanisms. After three years of membership, the SBV has proactively participated in BIS activities and implemented its recommendations in the banking sector.

He proposed that BIS continue to enhance its role in developing payment and financial infrastructure in the Asian region, including Vietnam, which will help countries involved quickly access new technologies, ensure smooth payments between nations and territories, and safeguard the global cybersecurity and financial system.

Agreeing with his host’s proposals, Carstens commended Vietnam’s effective economic management and inflation control given global challenges. He also hailed the Vietnamese Party and State for their policies in stabilising the macro economy, enhancing international integration, and promoting digital transformation and innovation.

The general manager expressed his wish to strengthen cooperation between BIS and Vietnamese agencies in general and the Economic Commission in particular.

Population database key to improving banking security

Allowing banks access to Vietnam’s population database has set the foundation for the banking sector to expand and provide digital services to more customers, as well as improve security, prevent fraud and identity theft, according to the State Bank of Vietnam's (SBV) Deputy Governor Pham Tien Dung.

The central bank has already given the green light to commercial banks to roll out remote account opening using e-KYC, short for Electronic Know Your Customer, making many traditional banking services such as making deposits, loans and payments available digitally.

"Customer authentication and security are among the sector's most important priorities. Having access to the national database will allow credit institutes to verify and assess customers' credit rating, speeding up the lending process," he said.

Le Hoang Chinh Quang, deputy director of the SBV's IT Department, said the Ministry of Public Security (MPS) has started a campaign to tidy up and cross-reference 42 million customer profiles out of a total of 54 million registered.

The sector has been working in close collaboration with the ministry to expand the scope and depth of customer authentication solutions, using chip-embedded citizen ID cards and the VNeID app.

For example, more than 40 credit institutes have started the process to implement electronic identification and authentication using the ID cards while 10 have started with the app.

Quang said, however, that the process will likely take time as there are technical and administrative procedures to be resolved before a full implementation.

Electronic authentication and identification using citizen ID could save time for both banks and their customers while minimising the risk of document tampering and fraud, said industry experts.

Senior Lieutenant Colonel Cao Viet Hung from the MPS said the banking system has been a popular target for cybercriminals, who constantly try to seek and exploit security weaknesses and loopholes within the system in recent years.

For example, they could claim to be law enforcement officers from the police, the tax department and social insurance agencies to request victims to install dubious applications on their phones. Once ownership of their bank accounts was compromised, criminals could take over or steal their assets. Criminals could also create fake websites, and impersonate bank employees to swindle people.

In addition, there has been a surge of cases in which AI deepfakes were employed to mimic faces and voices of family members or friends to request money transfers in recent times. 

Hung said cybercriminals will likely continue to use more advanced technologies in the future to commit fraud.

He advised the sector to step up cooperation with the MPS, the SBV and payment companies to establish a coordinated procedure aimed at limiting unauthorised access to bank accounts and e-wallets, as well as to prevent the flow of funds in a timely manner.

The colonel stressed the importance of enhancing the sector's IT security. He said banks must take the initiative to clean up ghost accounts, often used for illegal activities, and severely sanction the buying and selling of customer data.

Sunny Group to build $150-million factory in Nghe An

China's Sunny Group has received an investment certificate to develop a $150-million factory in the central province of Nghe An.
 
The new Sunny Automotive Optech Vina project will be developed over 43 hectares in WHA Industrial Zone 1 in Nghe An. The factory will specialise in producing cameras for both mobile phones and vehicles, as well as other electronic devices.

The factory is slated to go into operation in the fourth quarter of 2025, and once completed, is expected to generate jobs for 20,000 people.

Sunny Group has been researching and exploring the investment site in Nghe An since July 2023. After two months, the Chinese group decided to make an investment in the locality.

In March 2023, Sunny shared its plan to invest up to $2.5 billion in the northern province of Thai Nguyen, which is expected to generate $5 billion in annual revenue and create jobs for 15,000 local people.

Excluding the latest investment in Nghe An, Sunny Group has already invested $130 million in four projects in Vietnam, namely Sunny Opotech, Sunny Automotive, Sunny Infrared, and Sunny Opotec.

These projects produce infrared lenses for cars, mobile phone camera modules, and surveillance cameras in industrial parks in Thai Nguyen, Vinh Phuc, and Hanoi.

Sunny Group was established in 1984 and produces integrated optical components for phones, computers, robots, medical equipment, and industrial machinery.

As of present, Nghe An has lured nearly $1.3 billion in foreign direct investment capital, rising to the eighth position nationwide in this regard, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Vietnam’s first local currency sustainability-linked bonds aim to boost economy

The International Finance Corporation (IFC) is investing around $150 million in local currency sustainability-linked bonds (SLBs) to be issued by BIM Land JSC and its subsidiary Thanh Xuan JSC.
 
As the first local currency SLBs in Vietnam, they aim to help issuers expand their businesses while creating jobs, boosting competitiveness, and supporting the country’s low-carbon growth model.

IFC’s investment comprises two elements, with about $100 million to be issued by BIM Land – a tourism and property developer in Vietnam – and approximately $50 million to be issued by Thanh Xuan JSC. Both the issuers are subsidiaries of BIM Group, a multi-sector corporation in Vietnam.

The proceeds will be used to develop the Thanh Xuan Valley project in Vinh Phuc province, including an eco-friendly and unique residential community alongside a hotel complex (under the InterContinental brand), as well as other relevant services and infrastructure.

IFC’s funding will also help the developers implement water- and energy-saving solutions at two BIM Land hotels – InterContinental and Regent – on Phu Quoc island.

An innovative financing tool to support global sustainable development, these SLBs will provide financial incentives for both BIM Land and Thanh Xuan JSC to improve water conservation and energy efficiency in three of their hospitality assets that hope to be accredited by EDGE – IFC’s green building certification system.

This is expected to avoid an estimated 4,000 metric tonnes of CO2 annually – equivalent to greenhouse gas emissions from 890 gasoline-powered passenger vehicles driven for a year.

Doan Quoc Huy, BIM Group’s vice chairman and CEO said, “Sustainability is a critical part of our strategy to position BIM Land as a leading property developer and operator in Asia with a long-term vision. We hope to attract international investors as we develop high-quality, green tourism infrastructure across the country.”

“Most importantly, IFC’s financing and advice will help catalyse our green transition in line with the industry’s best practices and global climate goals,” he added.

IFC has also helped BIM Land develop its sustainability-linked financing framework with tailor-made performance targets.

Thomas Jacobs, IFC country manager for Vietnam, Cambodia, and Laos stated, "Private capital is key to Vietnam’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."

“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 the sustainable tourism sector,” Jacobs continued.

In line with the government’s twin goals of becoming a high-income country by 2045 and achieving net-zero by 2050, climate and sustainability have become stronger focus areas for the IFC engagements in Vietnam.

To date, IFC has allocated over $900 million in long-term finance to support climate-related projects in the country. IFC’s commitments in Vietnam reached close to $1.9 billion in fiscal year 2023, helping local companies recover and navigate the challenging environment.

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