Cement firms across the country continue to face tough times with dwindling consumption amidst the stagnant real estate market, reduced residential project deployment, and shrinking exports.

In Nghe An province, several cement plants have had to temporarily cease the operation of their kilns or significantly reduce capacity.

Having come on stream in early 2020 with an annual capacity of two million tonnes, the Tan Thang Cement plant, based in Quynh Luu district, has been running well below capacity for most of this year.

Meanwhile, Vicem Hoang Mai, a member of the state-owned conglomerate Vietnam Cement Industry Corporation (Vicem), has only been able to sell around one million tonnes of cement over the year to date, down 15 per cent on-year.

This came as the Philippines – the company’s major export market – offered a lower price. Several cement plants in other localities have offered products with more competitive pricing, making a dent in the company’s sales.

Nghe An is home to four cement plants with a combined designed capacity of 7.8 million tonnes per year.

In the neighbouring Thanh Hoa province, cement production and consumption also face considerable pressure.

Amidst the gloomy consumer market this year, many building material production and trading units have seen their consumption fall by as much as 30 per cent on-year.

Thanh Hoa is home to several sizable cement plants, including Long Son Cement with four production lines and a combined capacity surpassing 10 million tonnes, Vicem Bim Son with a capacity of 5.3 million tonnes, and Cong Thanh Cement 6 million tonnes.

In Ninh Binh and Ha Nam provinces, the situation has been similar, with the limited consumption being unable to offset the supply capacity.

The lacklustre real estate market and modest pace of public investment disbursement are deemed to have cast a shadow on domestic cement consumption, causing production and trading plans to fall short of projections.

Q4 is generally the peak season for cement consumption, yet with the current market outlook, many firms predict the diminishing demand to prevail for the rest of this year.

Nguyen Ngoc Tinh, deputy CEO at Vicem Hoang Mai said, "Capacity reduction is inevitable in the face of the slow consumption and oversupply."

Even if demand surges for the remainder of the year, it is unlikely that Vicem Hoang Mai will reach its 2023 projections.

At the end of Q2, Vicem Hoang Mai posted $34.1 million in sales revenue and $26,250 in post-tax profit, down 22.8 per cent and 94.6 per cent on-year respectively.

The export channel also saw its second straight year of decline. In the first eight months of this year, the sector counted $927 million from exporting 21.4 million tonnes of cement and clinker, down 3.6 per cent in volume and 5.3 per cent in value on-year.

In 2022, the sector exported 30.65 million tonnes, down 15 million tonnes (33 per cent) on-year. This generated $1.36 billion in the export value, down $398 million compared to 2021.

The Vietnam Cement Association forecasts that the sector’s cement consumption this year will approximate 100 million tonnes, of which 62-65 million tonnes will come from domestic consumption, and 30 million from exports.

Most cement firms anticipate that the slow consumption will continue to challenge both the revenue and profit targets of firms for the rest of 2023 and into Q1/2024.

Vietnam attends 59th meeting of Governing Board of ASOSAI in RoK

A delegation from the State Audit Office of Vietnam (SAV), led by Deputy Auditor General Nguyen Tuan Anh, attended the 59th meeting of the Governing Board of the Asian Organisation of Supreme Audit Institutions (ASOSAI) in Busan city, the Republic of Korea (RoK) from September 19-22.

The event was co-chaired by the State Audit Office (SAO) of Thailand as the Chair of ASOSAI and the National Audit Office of China as the Secretary General of ASOSAI. The SAV attended the event in its capacity as a member of the ASOSAI Governing Board for the 2021-2024 tenure.

In his opening speech, President of SAO Thailand Chanathap Indamra affirmed that the meeting will serve as a common platform for ASOSAI members to reach a consensus on the most critical issues of the ASOSAI community.

Jaehae Choe, President of the Board of Audit and Inspection (BAI) of the RoK, stressed that it has been the first in-person meeting since the end of the public health emergency caused by COVID-19 so it holds significance to revitalising friendly cooperation among ASOSAI member countries, as well as resuming discussions on ASOSAI's activities, plans and development directions.

At the event, the member SAIs reached a consensus on the 28 agenda items of the meeting. In particular, the Governing Board agreed to extend the term of the ASOSAI Secretary-General for the 2024-2027 period. The Audit Board of Indonesia was selected as the candidate for hosting the 26th Congress of the International Organisation of Supreme Audit Institutions (INTOSAI) in 2028 while the General Auditing Bureau of Saudi Arabia was chosen to host the 17th ASOSAI Assembly in 2027.

Earlier, the Vietnamese delegation held a bilateral meeting with the Korean BAI and sideline meetings with 14 SAIs delegations at the meeting to ask for their support of the SAV’s candidacy for a seat in the ASOSAI Audit Committee for the 2024-2027 tenure.

The SAIs unanimously supported the SAV’s candidacy for the ASOSAI Audit Committee and suggested that the SAV send a formal letter of campaign to them in the near future so that they could provide an official response.

Conference seeks mechanisms for seaport development

The annual conference of the Vietnam Seaports Association (VPA) took place in Vung Tau city, the southern province of Ba Ria-Vung Tau, on September 21 with the participation of representatives from ministries, sectors, and 82 seaports across the country.

Addressing the event, Director General of the Vietnam Maritime Administration Le Do Muoi asked the VPA to closely cooperate with seaports to study and promptly suggest solutions and mechanisms serving the timely issuance of policies serving the sustainable and eco-friendly development of the nation’s seaport system.

VPA Vice Chairman Tran Khanh Hoang held that there is a need to quickly digitise the system and build green ports to meet current and future demands. Many domestic IT firms can provide digital solutions for the management, operation, online payment, and building of logistics ecosystems. Meanwhile, the digitalisation of Vietnamese seaports has made significant progress in recent times, but there are still many challenges ahead.

Nguyen Van Ban, Deputy General Director of Dong Nai Port JSC, suggested increasing investment in seaport infrastructure and implementing measures to simplify customs procedures and cargo handling procedures to enhance flexibility and reduce delivery times.

Cao Hong Phong, a member of the VPA’s executive board, proposed adding mandatory requirements to the cargo handling contracts between ports and shipping companies, including a deposit on each container or a bank guarantee, to ensure the responsibilities of the shipping companies and help the seaports tackle unsuitable cargo transported to Vietnam.

According to VPA Chairman Le Cong Minh, the volume of goods and containers passing through seaports last year increased by approximately 6-8% compared to 2021, which was slower than previous growth rates. Container traffic may still decrease this year but not by more than 8% compared to 2022, as growth in the final months is showing positive signs.

Italian wood products, new technologies introduced in HCM City

The Italian Trade Commission (ICE) in Vietnam and Italia’s National Association of Italian Manufacturers of Footwear, Leathergoods and Tanning Technologies (ASSOMAC) opened a pavilion to introduce the latest wood products and technologies.

The pavilion is part of the 15th Vietnam International Woodworking Industry Fair (VietnamWood 2023) and the Vietnam International Furniture Accessories, Hardware & Tools Exhibition (Furnitec 2023) that opened in Ho Chi Minh City on September 20 and will run until September 23.

ICE Director Fabio De Cillis said that his office supports Italian enterprises in seeking Vietnamese partners who have the potential to import wood processing machines and equipment from Italy.

ICE also strives to build cooperative relationships with organisations and agencies to better connect the business communities of the two countries.

The Italian and Vietnamese economies are both similar and complementary. Vietnam is currently Italy's largest trading partner in the Association of Southeast Asian Nations (ASEAN) and Italy is Vietnam's 4th largest trading partner in the EU. Those create a strong motivation for the development of industries in Vietnam and Italy in general and the woodworking sectors in particular.

Vietnam's real estate market is closely associated with the wood industry, particularly the furniture manufacturing industry. Therefore, Italian businesses expect to provide Vietnamese partners with technology to meet the requirements of production and business, he said.

In addition, Italy is famous for heritage restoration and jewelry while Vietnam is paying more and more attention to those fields to preserve its important cultural and historical values.

Moreover, Italian enterprises also have strengths in the green economy, and circular economy, particularly in infrastructure development, energy, and electrical vehicles.

VietnamWood 2023 attracted 320 exhibitors from 28 countries and territories. They showcase comprehensive automatic production lines and wood system integration with a focus on digital transformation.

It also featured eight pavilions from Austria, Canada, France, Germany, Italy, Russia, the US, and Taiwan.

Petrol prices revised up in latest adjustment

The retail price of petrol rose in the latest adjustment on September 21 by the Ministry of Industry and Trade and the Ministry of Finance.

Accordingly, the price of E5RON92 went up 726 VND to 24,197 VND (1 USD) per litre, while that of RON95-III was raised by 877 VND to no more than 25,748 VND.

Diesel oil, kerosene have been sold at the maximum levels of 23,594 VND and 23,816 VND, up 539 VND and 628 VND, respectively.

Meanwhile, the ceiling price of mazut 180CST 3.5S increased 143 VND to 17,847 VND per kilogramme.

With this price adjustment, the ministries decided not to use the petrol and oil price stabilisation fund.

From the outset of this year, petrol prices have been revised up 16 times and down seven, and kept unchanged four.

Vietnam opens arms wide to Latin American friends: Mexican journal

Mexico’s magazine Voces Del Periodista (Voice of Mexican journalists) has run a story spotlighting the traditional ties between Vietnam and Latin America in general and Brazil in particular, on the occasion of Vietnamese Prime Minister Pham Minh Chinh’s official visit to Brazil from September 23-26.

The article, entitled "Vietnam opens its arms of friendship to Latin American countries", highlighted the image of a Vietnamese nation with increasing integration in all fields with friends all over the world, becoming an important factor in the Indo-Pacific region.

Vietnam’s glorious history of national defence has inspired millions of peace-loving people around the world, it said, underlining that the country has risen from the ashes of war into a strong country playing a prominent role in the region and the world, it noted, adding that it has become the fourth largest economy in ASEAN and the 40th in the world, entering the global top 20 economies in terms of international trade scale in 2022.

Last year, US magazine US News & World Report listed Vietnam among the world's top 30 powerful countries basing on five factors of leadership capacity, economic influence, political influence, strong international alliance and strong military, the article noted.

Regarding the Vietnam-Latin America relations, the article clarified that this is an extremely close and long-term relationship, while reviewing major milestones of the ties. It noted that so far, Vietnam has set up diplomatic relations with all 33 Latin American countries.

In terms of economic-trade partnership, the article said that two-way trade has increased strongly from 14.2 billion USD in 2018 to 23 billion USD in 2022.

In investment, Vietnam has invested in a number of important projects in the Latin American region with hundreds of millions of USD, including telecommunications projects by Viettel in Peru and Haiti, as well as those by Viglacera Corporation and Thai Binh company in Cuba. Meanwhile, investors from 21 Latin American countries are running 114 projects in Vietnam with a combined capital of about 671 million USD.

Vietnam and Latin American partners are effectively implementing trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to which Vietnam, Mexico, Chile, and Peru are members, as well as the Vietnam-Chile FTA and Vietnam-Cuba FTA.

The article underlined that the Vietnamese PM’s visit to Brazil will open up new cooperation opportunities for the two countries in many fields, especially on the threshold of the 35th anniversary of the bilateral diplomatic relations in 2024.

After elevating their ties to a comprehensive partnership in 2007, Vietnam and Brazil have enjoyed a deep and substantial partnership. The two sides have signed and implemented 16 cooperation agreements, protocols and deals in the fields of science-technology, maritime transport, civil aviation, agriculture, health care, trade, tourism, State and people-to-people diplomacy as well as locality-to-locality collaboration.

They have also maintained the Joint Committee mechanism between the two governments and political consultations between the two Foreign Ministries. Vietnam supported Brazil to run for a seat at the UN Security Council, while Brazil also assisted Vietnam to become a non-permanent member of the council in the 2020-2021 tenure.

At the same time, Brazil is one of the largest trade partner of Vietnam in Latin America, while Vietnam is the biggest trade partner of Brazil in Southeast Asia and the fifth in Asia.

According to Voces Del Periodista, there is plenty of room for Vietnam and Brazil to promote their trade relations as their structure of goods is complementary to each other, especially in the context of Vietnam and other members of the Southern Common Market (MERCOSUR) are conducting research on the possibility of negotiating a MERCOSUR - Vietnam Free Trade Agreement.

Vietjet offers 0 VND tickets during Mid-Autumn Festival

During this year’s Mid-Autumn Festival, Vietjet flights are full of joy with reunion and endless love for passengers.

Many 0 VND tickets, excluding taxes and fees, will be available from September 22-29, 2023 on the website www.vietjetair.com and Vietjet Air mobile app will bring you to explore Mid-Autumn Festival across Asia, and receive surprised gifts from Vietjet at the height of 10,000 meters.

Accordingly, Vietjet offers promotion tickets from only 0 VND (excluding taxes and fees) throughout the golden week from September 22-29 on the website www.vietjetair.com and Vietjet Air mobile app, applying to all domestic and international flights with flexible flight schedule from October 9, 2023 to October 31, 2024. To receive the Mid-Autumn Festival 2023 promotion, let’s book the tickets to enjoy the stunning scenery throughout Vietnam, Australia, India, the Republic of Korea, Japan, Hong Kong (China), Taiwan (China), Singapore, Malaysia, Thailand, etc...

Agencies promote anti-money laundering in cryptocurrency transactions

The Vietnam Banks Association (VNBA) and Vietnam Blockchain Association on September 20 jointly organised a conference to promote legal regulations on anti-money laundering in cryptocurrency transactions. 

Addressing the conference, Nguyen Quoc Hung, Vice President and General Secretary of the Vietnam Banks Association (VNBA), said the Law on Anti-Money Laundering was passed by the National Assembly and has taken effect since March 2023. The Government and the State Bank of Vietnam also issued Decree 19/2023/NĐ-CP and Circular No. 09/2023/TT-NHNN to guide the implementation of the law.

According to Hung, the law, decree and circular were issued with many contents suitable to practice so that relevant organisations and individuals can implement them effectively.

However, Hung said, under the context of increasingly deep integration and the explosion of information technology, Vietnam has to face many forms, methods, and tricks of increasingly complicated money laundering criminals, especially in digital currency and cryptocurrency where the legal corridor is not fully complete.

In recent years, cryptocurrency has been used for payment, but money laundering through transactions of this currency cannot be ruled out. Therefore, Hung expected State management agencies, credit institutions, international organisations, and experts to continue to share experiences to further deploy effective anti-money laundering activities.

According to Nguyen Doan Hung, Vice President of the Vietnam Blockchain Association, money laundering is a criminal act defined as the legalisation of assets obtained through crime. According to the United Nations Office on Drugs and Crime (UNODC), the total value of money laundering activities globally each year can be equal to 2-5% of world GDP, equivalent to US$800 billion to US$2 trillion.

In particular, money laundering is often related to illegal arms trading, terrorist financing, human trafficking, embezzlement, insider trading, gambling or cross-border prostitution rings that are implemented by large-scale criminal organisations. Therefore, anti-money laundering is a priority for all countries in the world, including Việt Nam.

Currently, only a few countries and territories have promptly issued legal regulations to prevent financial crimes using high and blockchain technologies, such as the European Union with the Markets in Crypto-Assets Regulation (MiCA) that will officially take effect in 2024.

Other dynamic economies such as the US, the Republic of Korea, Hong Kong (China), and the United Arab Emirates have also issued many regulations to increase transparency, ensure legal compliance and safety for users, and at the same time fulfil the obligations of anti-money laundering and anti-terrorist financing.

In Vietnam, due to the lack of a specific legal framework and a lack of high-quality personnel in cryptocurrency and digital assets, credit institutions and State management agencies are still confused about handling acts related to this new type of assets even though the Law on Anti-Money Laundering has taken effect since March 2023.

Faced with the shortcomings, the Vietnam Blockchain Association early this year announced an anti-fraud project called ChainTracer. ChainTracer's mission is to provide solutions to track onchain and offchain blockchain data to detect signs of fraud in digital assets. The purpose of ChainTracer is to promote transparency and openness of projects in Vietnam and internationally, contributing to the prevention of high-tech crimes related to blockchain activities.

Nghi Son Refinery and Petrochemical on schedule

Nghi Son Refinery and Petrochemical LLC has successfully reached 70 per cent of its planned turnaround progress as of September 18.

In the petrochemical industry, the turnaround process involves taking the entire plant offline while remedial work is undertaken.

“We are pleased to announce that we have reached 70 per cent progress in the first turnaround,” said So Hasegawa, general director of Nghi Son Refinery and Petrochemical LLC's (NSRP).

"This is a testament to the hard work and dedication of our employees and general mechanical contractors (GMCs). We are on track to complete the turnaround safely and on time, and are committed to ensuring that our refinery continues to operate safely and reliably for many years to come," Hasegawa added.

Over 3,300 pieces of equipment have been examined, and are being maintained, repaired, and replaced according to the procedural and technical requirements. Over 5,000 skilled personnel, including foreign and local experts, engineers, and staff from the GMCs, together with 1,000 employees from NSRP, have been mobilised to conduct the first turnaround.

“We are grateful for the hard work and dedication of our employees and GMCs during the turnaround. We are also thankful for the strong support of the Thanh Hoa provincial authorities, local leaders, and the community,” continued Hasegawa.

The NSRP project is a joint-venture sponsored by Vietnam Oil and Gas Group, Kuwait Petroleum Europe B.V., Idemitsu Kosan Co., Ltd., and Mitsui Chemical Inc. from Japan.

The NSRP complex is located 260km from Hanoi in Nghi Son Economic Zone in Thanh Hoa. The total investment in the project stands at approximately $9 billion.

Hundreds of CJ Vina Agri pig farms in Dong Nai must be shut down

The Dong Nai authorities have mandated that CJ Vina Agri and three other foreign-invested enterprises must temporarily suspend their collaborations with 328 outsourcing farms that have yet to complete environmental procedures.
 
On September 20, Dong Nai Department of Natural Resources and Environment sent a document to four foreign-invested enterprises (FIEs) requiring them to temporarily suspend their outsourcing contracts with 328 farms that have yet to complete the necessary environmental procedures.

The department, in coordination with other local authorities, is inspecting the environmental protection compliance at nearly 10,000 livestock and poultry breeding farms in the southern province.

After four months of inspections, they discovered 328 pig and chicken farms that have outsourcing contracts with four FIEs. However, the firms are yet to have their environmental procedures approved. The affected FIEs include C.P. Vietnam, Japfa Comfeed Vietnam, CJ Vina Agri, and Sunjin Vina.

Of these, CJ Vina Argi has the most farming contracts with 250, followed by C.P. Vietnam with 46, Sunjin Vina with 19, and Japfa Comfeed Vietnam with 13.

Dong Nai Department of Natural Resources and Environment has requested that the FIEs temporarily suspend livestock outsourcing at these farms.

The farms in question will be able to return to breeding if they supplement their environmental procedures and are granted a licence to confirm their environmental compliance.

Moreover, the department asked the four FIEs to coordinate with the local authorities to review the legal regulations on environmental conditions for livestock farming. If farms do not meet the required standards for licensing, outsourcing contracts will be shut down.

Dong Nai is considered the country's farming region, with a total herd of more than 2.5 million pigs and a chicken population of more than 26 million. There are nearly 1,500 large facilities and more than 22,200 small-scale farms.

Japan at fore of experience in agriculture

High-tech agricultural development is set to be intensified between Vietnam and Japan.

At last week’s seminar on Vietnam-Japan cooperation on green growth in Hanoi, a representative of the Ministry of Agriculture and Rural Development (MARD), said that Vietnam-Japan cooperation in agriculture could double or even triple in the coming decades.

Nguyen Do Anh Tuan, general director of the MARD’s International Cooperation Department, highlighted some key areas for Vietnam, including improving plant varieties, high-tech production and processing, forest protection, capital investment and mitigating the effects of natural disasters.

Some localities in the country have shown great interest in adopting Japan’s high school agriculture education model, which aims to provide agriculture knowledge to students along with high school-level general education. The model, which has been piloted in the northern province of Nam Dinh, has proven popular with students from across the country.

Vuong Thi Minh Hieu, deputy head of the Department of Economic Zones Management under the Ministry of Planning and Investment, said, “The model is in line with Vietnam’s focus on developing and improving the quality of human resources in rural areas, and on attracting foreign investment in agriculture.”

According to Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri, over the last few years, Japan has been paying more attention to Vietnam’s agriculture sector with $240 million covering 42 projects, ranking sixth among investors pouring into agriculture in Vietnam.

Some of their projects cost almost $80 million. Bilateral cooperation between Vietnam and Japan will create many promising lands for cooperation in areas that both sides need and being strengths of Japan, like green agriculture, digital transformation, and green growth.

“Japan has a lot of experience in developing safe, sustainable, and natural agricultural ecosystem, so Japan’s cooperation and support is significant in implementing Vietnam’s agricultural and rural development strategy,” Tri emphasised.

In 2021, the prime minister approved the National Strategy for Green Growth for this decade and beyond, setting a framework for sustainable development on a nationwide scale with clear objectives, including a harmonious relationship between economic activities and preserving the environment, and leveraging advanced technologies and human resources towards a green economy.

To realise these objectives, Vietnam has recognised Japan as a key partner, as the advanced East-Asian economy possesses the technologies, experience and capital investment required.

Meanwhile, Nguyen Van De, Deputy Chairman of Nghe An People’s Committee, pointed out some difficulties in securing investment capital, advanced technologies and inadequate skilled labour resources for Vietnam to implement its national strategy.

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

“Foreign investors, especially Japanese investors and businesses, can play an important role in addressing these issues,” De said.

Pham Quang Hieu, Ambassador of Vietnam to Japan, said in the medium- and long-term, both countries have significant potential for more cooperation in green technology, energy transition and bilateral research collaboration in applying Japanese technology that aligns with Vietnam’s needs and transition roadmap.

“There is still a lot of potential for future cooperation between Vietnam and Japan, especially in green economy and energy transition,” Hieu said.

According to the Japan External Trade Organization (JETRO) in Vietnam, focusing on green growth will help tackle some of the most pressing issues faced by the country in the coming decades, such as water quality, air pollution, waste treatment, recycling, energy saving and carbon emissions.

“Japanese businesses are setting eyes and looking for some opportunities in Vietnam’s policies on green growth to pour money in confidently,” said Takeo Nakajima, JETRO chief representative.

A JETRO survey showed that 60 per cent of Japanese companies planned to expand in Vietnam, higher than the average in ASEAN. However, greenhouse effects in Vietnam are greater than in other countries, and its environmental performance index is worse than Singapore, China, and Bangladesh.

“These are certain challenges in economic growth, and we are asking Vietnam to soon have solutions and take drastic actions,” Nakajima said.

He also advised the Vietnamese government to implement stricter environmental protection regulations, extend manufacturers’ environmental responsibilities, especially in waste treatment and recycling, and speed up the country’s transition to renewable energies including solar, wind, biomass and hydro, as well as upgrade the national power grid to reduce power loss.

As of August 20, Japan had over 5,160 active projects in Vietnam, with the total registered investment capital of more than $71 billion. Japan currently ranks third among 143 countries and territories investing in Vietnam.

Ho Chi Minh City urged to double down on green goals

Feasible solutions to promote green transformation and related business opportunities were offered at a major forum last week.

Deputy Prime Minister Le Minh Khai said at the Ho Chi Minh City Economic Forum 2023 that green transformation and green growth may create many new opportunities but also require large resources for relevant technologies, efficiency, and to minimise production and waste treatment costs.

Highly qualified human resources, both in terms of knowledge and skills, are also a key factor for businesses to implement green economic initiatives and solutions.

“In addition to the role of banks and financial institutions, Vietnam needs the participation and cooperation of international financial organisations in mobilising green finance,” Khai said.

The move towards renewable energy sources, green transportation, and a supply chain of green goods from production to consumption are creating many attractive cooperation opportunities for both domestic and foreign businesses, he added.

Although Vietnam’s national strategy on green growth was approved in 2022, Khai noted that simple political effort or determination is not enough to fulfill international commitments as well as effectively implement major policies on sustainable development. What is needed, he said, is creativity and the strong participation of the business and local community, as well as enormous resources from both domestic and foreign financial institutions.

“This is the best opportunity for businesses to re-perceive traditional business models, approach new business opportunities, cooperate and mobilise resources to gradually transform their business models, and aim for long-term effectiveness. Delays in conversion will cause businesses to fall further behind in meeting the different needs for green growth that have become increasingly popular around the world,” Khai added.

Secretary of Ho Chi Minh City Party Committee Nguyen Van Nen said that the metropolis is clearly aware that the traditional economic growth model is no longer the optimal choice. Therefore, the city has changed direction and created a new greener growth journey with a vision for a sustainable future.

The city is urgently completing its green development strategic framework for 2030 with a vision to 2050. The framework identifies people as the centre of digital transformation, promoting regional connectivity and international cooperation to implement green resource development and green infrastructure, while identifying pioneering industries and fields.

Yasuo Takahashi, former Deputy Minister of Environment in Japan and executive director of the Institute for Global Environmental Strategies, stated that reducing net emissions to zero in both nations is a long-term game.

“Reducing the increase in global temperature is not only important for the region but for the whole world. This requires many changes in financial policy, technological advances, and offers great opportunities for promoting innovation and improving communication’s health,” Takahashi said.

“Japan sets many scenarios for net emission reduction, including a scenario where about 80 per cent of CO2 is eliminated, but people meanwhile still need to use other types of energy which can affect the environment,” he continued.

Jan Jambon, Minister-President of the Belgian region of Flanders, emphasised that over the past 50 years, the relationship between Vietnam and Belgium has been continuously strengthened and developed strongly in both quantity and quality and also in the green transition process.

“Flanders has a large petrochemical industry, and Belgium also faces environmental pressures. However, we spend a large amount of GDP on technological innovation and environmental protection, especially in the application of AI,” Jambon said.

“Through technology, we are gradually solving problems such as recycling nearly half of all types of waste discharged into the environment. Above all, factors including sustainable policies and mechanisms will help the process of reducing net emissions and promoting a circular economy gradually become effective,” Jambon added.

Ho Chi Minh City contributes about one-fifth of the nation’s GDP each year, more than one-quarter of national budget revenue, and leads the country in attracting foreign direct investment and import-export turnover, with around 30 per cent of operating businesses of the whole country.

However, it also pumps out the most greenhouse gas emissions at more than 57.6 million tonnes, accounting for over 23 per cent of the country’s total.

Development banks extend role in green-related loans

Major investment banking institutions are seeking opportunities to provide more green loans for Vietnam to support its net-zero transition.

European Investment Bank (EIB) vice president Kris Peeters told VIR when he visited Vietnam last week that the non-profit credit institution and lending arm of the EU is eager to meet with partners in Vietnam to provide more green loans for environmentally friendly projects in various sectors from transport, water treatment, and smart urban development to renewable energy and infrastructure.

“We have been providing loans for seven projects in Vietnam with total loans of €561 million ($602.8 million), and we hope the figure will double in the coming time,” Peeters said.

Last year, the EIB invested over €70 billion ($75.2 billion) in many green projects worldwide.

“We want to increase our investment portfolio and Vietnam is also on our priority list, as the country’s economy is going green, meaning the growing need for relevant projects in many sectors,” Peeters said. “Vietnam is an important market for the EIB. It is in critical need of huge investment in infrastructure and is witnessing rapid economic growth, which has been resulting in overloaded infrastructure and lack of energy in the context of a fast-growing population.”

The EIB and Vietnam’s’ Ministry of Finance (MoF) have agreed on a framework loan of €500 million ($536.3 million) for Vietnam to implement goals related to the Just Energy Transition Partnership (JETP). A deal on the loan is expected to be signed in October in Brussels.

“Both sides are working together to complete necessary procedures and specific projects proposed by Vietnam before the signing,” Peeters said.

One of the key purposes for the EIB to come to Vietnam to provide green loans is that Vietnam is now implementing commitments on achieving net-zero emissions by 2050, and is formulating its own resource mobilisation plan to carry out JETP commitments.

Last December, leaders from Vietnam and the International Partners Group (IPG) agreed on the JETP, worth $15.5 billion for Vietnam. Also at that time, Prime Minister Pham Minh Chinh and Minister of Finance Ho Duc Phoc visited the EIB headquarters in Luxembourg to find out what the bank can do to make Vietnam’s ambitions in green investments a reality.

Vietnam is required to publish a JETP plan by November to identify new investment requirements and opportunities in areas like wind, solar, transmission, energy efficiency, storage, electric vehicles, training, and vocational support among others, as well as measures to facilitate the deployment of investment towards delivering Vietnam’s just energy transition.

Currently, the EIB, together with the French Development Agency, the Japan International Cooperation Agency, and KfW, are financing the 1.2GW Bac Ai pumped storage hydropower project under construction in the south-central province of Ninh Thuan.

The project is being developed in two phases by Vietnam Electricity (EVN) with an estimated investment of $909.7 million. Construction commenced in 2020 and the facility is expected to be completed by 2028.

Late last year, Peeters and EVN inked an MoU on cooperation to enable the direct financing of power projects in Vietnam and strengthen partnerships in electricity generation, storage, transmission, distribution and sales, and also covers the energy transition towards decarbonisation. The EIB is also providing loans for Vietnam’s metro line 2 in Ho Chi Minh City and metro line 3 in Hanoi .

Meanwhile, the Asian Development Bank (ADB) and GreenYellow Smart Solutions Vietnam Co., Ltd. last week signed a loan agreement of $13.8 million for rooftop photovoltaic (PV) solar systems to help increase the supply of clean and affordable energy for commercial and industrial consumers in Vietnam.

The financing package comprises a $3 million A loan from ADB’s ordinary capital resources and $10.8 million parallel loans from FMO, responsAbility Fund, and Société Générale, with the ADB as mandated lead arranger.

“The ADB is increasingly focused on mobilising private capital to finance renewable energy projects that the region urgently needs,” said Suzanne Gaboury, ADB director-general for private sector operations. “Solar PV rooftop offers an efficient way for Vietnam to deploy substantial amounts of additional renewable energy capacity while providing reliable, low-cost energy to consumers, which helps to attract and retain business and enhance Vietnam’s global competitiveness.”

Rooftop solar is an emerging form of renewable energy supply in Vietnam, and its adoption in this sector has been hindered by high upfront costs and limited financing channels. With a planned total installed capacity of up to 32.3MW at its peak, this project is set to increase clean energy supply to the sector by at least 31.5 gigawatt-hours annually, reducing over 15,000 tonnes of carbon emissions by 2025.

The ADB said that it is discussing with the IPG on its role within the JETP framework in Vietnam, including contribution through the energy transition mechanism, which is a programme aimed at helping confront the issue of climate change by reducing greenhouse gas emissions in Asia-Pacific.

SpaceX targets $500 million investment in Vietnam

SpaceX is gearing up for a significant foray into Vietnam, announcing a proposed $500 million investment with aspirations to roll out its Starlink services in the country.
 
During the 78th UN General Assembly High-Level Week in New York, Vietnamese Prime Minister Pham Minh Chinh met with top executives from global giants, including the space exploration tech firm SpaceX on September 20.

In a notable discussion, PM Chinh met with Tim Hughes, senior vice president in charge of Global Business and Government Affairs at SpaceX.

During their conversation, Hughes said, "SpaceX is planning an investment of approximately $500 million in Vietnam, and we're keen on obtaining a licence to introduce our Starlink services in the country."

Chinh warmly welcomed SpaceX's proactive investment proposal and encouraged the company to "coordinate with Vietnamese agencies and relevant entities to expedite the project's deployment."

Additionally, it's essential to consider competitive pricing to align with Vietnam's developmental objectives and legal framework," Chinh said.

The PM emphasised the need for SpaceX to collaborate with Vietnam's Ministry of Planning and Investment.

"This collaboration will forge stronger ties with potential Vietnamese partners in the IT sector, drive innovation, and promote research with Original Equipment Manufacturer partners to consider the establishment of telecommunication equipment production plants in Vietnam," the PM said.

In a gesture underscoring the significance of this partnership, PM Chinh extended an invitation to SpaceX's CEO, Elon Musk, to attend the International Technology Exhibition in Vietnam later this year.

Chinh expressed his hope that Musk's presence would "inspire Vietnamese youth in the realms of innovation and drive increased usage of SpaceX's offerings."

Thai experts assist Ben Tre in community-based tourism development

A delegation of experts from Thailand visited the Mekong Delta province of Ben Tre on September 20 - 21 to prepare for the implementation of a project on sustainably developing coastal communities based on ecotourism and applying the philosophy of sufficiency economy.

The delegation included representatives of the Thai Consulate General in Ho Chi Minh City, the International Cooperation Agency at the Thai Ministry of Foreign Affairs, international colleges of Thailand, the Burapha University, and the Thailand Community-based Tourism Institute.

They visited the districts of Binh Dai, Ba Tri, Thanh Phu, and Cho Lach to experience tourism activities linked with the mangrove forest ecosystem, those typical for the water-connected culture in the Mekong Delta, and the ornamental flower village of Cho Lach. Through the trip, they assessed the capacity and learned the wishes of local households to help with sustainable development of community-based tourism.

A representative of the Thai Consulate General in HCM City said the project in Ben Tre will help improve the capacity of both local tourism manpower and people engaging in community-based tourism. It will also assist them to improve skills in developing a community-based tourism ecosystem, managing community-based tourism supply and demand, and increasing the value of the products and services imbued with local communities’ identities.

Nguyen Thi Ngoc Dung, Deputy Director of the Ben Tre Department of Culture, Sports and Tourism, said the province boasts considerable potential and advantages for community-based tourism development. This type of tourism has been promoted to meet tourists’ demand, boost economic restructuring, provide jobs for locals, improve people’s life quality, and popularise the province’s images to Vietnamese and foreign visitors.

Ben Tre targets that by 2025, tourism will have become an important economic sector while the province will have established itself as one of the leading ecological and cultural tourism destinations in the Mekong Delta for international visitors, and also a leading destination in this region for short-term holidays of domestic tourists.

By 2025, tourism revenue is expected to reach 2.3 - 3.2 trillion VND (94.6 - 131.6 million USD) while the sector’s annual growth rate is projected at 22 - 25% and its direct contribution to the province’s gross regional domestic product (GRDP) at at least 6%. 

Meanwhile, tourism is hoped to become a truly spearhead sector securing sustainable development and boosting the development of others by 2030. Tourism revenue is targeted at 3.8 - 6 trillion VND, the sector’s annual growth rate at 24 - 25%, and direct contribution to the GRDP 10% by that time.

Yen Bai province, India bolster cooperation in rare earth mining

A delegation headed by Indian Ambassador to Vietnam Sandeep Arya paid a working visit to the northern province of Yen Bai on September 21.

During the meeting, Chairman of the provincial People’s Committee Tran Huy Tuan briefed the guests on the local potential and strengths, particularly in rare earth mining and processing, to Indian enterprises.

He said the province has granted investment certificates for six Indian enterprises with a total investment capital reaching over 28 million USD. These enterprises posted 35-40 million USD in combined annual revenue and contributed 7 million USD to the State budget every year.

The local leader expressed his hope that more Indian investors will come to explore investment cooperation opportunities in the locality, transfer technology in rare earth and mineral exploitation and processing for export. He also proposed the ambassador support the province in trade promotion activities to introduce more Yen Bai products to the Indian market.

For his part, the ambassador spoke highly at Yen Bai’s effective investment attraction activities, the province has created the best possible favourable conditions for enterprises investing in the locality.

Regarding rare earths, the ambassador hoped the two sides will have detailed cooperation orientations. India will select and bring acclaimed enterprises in the field to Yen Bai to survey local rare earth potential.

He also proposed the province organise investment and trade promotion conferences  in India to introduce the province’s tourism products, bolster collaboration in digital transformation, cultural exchanges, among others, in an attempt to further strengthen relations and solidarity between Vietnam and India.

FPT IS debuts R&D centre in Đà Nẵng

The FPT Information System company (FPT IS), a member of the FPT Group, has debuted its Research and Development (R&D) centre at Massada Industrial Park, underscoring a commitment to innovation, digital transformation, and technological solutions in the city and the global market.

The introduction of the R&D and representative office will help forge a link in co-operation between domestic and international businesses in clean and renewable energy, carbon index accreditation, positioning Đà Nẵng as an international centre for innovation and advanced technological solutions providers.

Chairman of FPT IS Trần Đăng Hòa said the company has developed 60 key technological solutions, including semiconductor chips, an automation akBot, electronic contract FPT.eContract, smart healthcare, and digital government, serving domestic and international customers.

The IT company posted a Compound Annual Growth Rate (CAGR) of 25 per cent annually for four consecutive years, and it expects to attain a revenue of VNĐ1 trillion (US$40 million) in 2023.

“Đà Nẵng is an ideal destination for innovation, and we aim to establish the city as the premier ‘Silicon Valley’ design of Việt Nam. The launch of the R&D in Đà Nẵng will help introduce more new technological products and encourage the relocation of industrial production centres from Hà Nội and HCM City, as well as other R&D centres from international partners to Đà Nẵng,” Khoa said.

FPT Group alone has invested VNĐ2.5 trillion (US$108 million) in Đà Nẵng over the past 20 years, contributing a fifth to the city’s information technology and communication (ICT) revenue and a 20 per cent growth in software exports.

Đà Nẵng and the FPT Group agreed on digital transformation for 2021-25, accelerating the ‘smart city’ project and aiming to place the city on the ASEAN smart city network list by 2030.

FPT also assisted Đà Nẵng in developing the 10,000-Bridge Software Engineer programme to boost the Japanese market and established an IT service centre and urban development, the FPT City Complex.

The FPT Complex, developed over 5.9ha by the FPT Group, was recognised as a centralised information technology (CIT) zone by the Government, providing a workspace for 10,000 IT engineers by 2024. 

Dragon Capital raises stake in FPT Retail

Dragon Capital has increased its ownership in FPT Digital Retail Joint Stock Company, whose FRT shares are listed on the Hochiminh Stock Exchange, from 7.91% to 8.04%.

Hanoi Investments Holdings Limited, a member of Dragon Capital, purchased 175,200 FRT shares on September 14. This transaction made Dragon Capital a major shareholder of FPT Retail JSC.

In related news, FPT Retail incurred a loss of VND212.68 billion in the first half of this year, according to its semi-annual consolidated financial report.

FPT Retail set a target of achieving VND34 trillion in revenue and VND240 billion in before-tax profit for 2023. With the poor business performance in the first half of 2023, the company is significantly far from its profit target for the full year.

Securities stocks plunge after extended period of growth

The securities stock group experienced a nosedive after a prolonged period of growth in previous months, causing the VN-Index to give back almost all of the gains from the previous session.
 
The Vietnamese stock market's trading session on September 21 was a derivatives maturity session that led to significant volatility in the indices, with the VN30 Index dropping by nearly 16 points. Many large-cap stocks suffered sharp drops, having a substantial impact on the VN-Index.

Specifically, the securities stock group faced a significant downturn, with a series of leading stocks plummeting. For instance, BSI hit the floor, SSI sank 4.66 percent, VCI dumped 4.16 percent, HCM went down 3.12 percent, VCI plunged by 5.62 percent, FTS fell by 5.05 percent, CTS reduced 5.18 percent, AGR shrank by 4.68 percent, and TVS cut by 4.09 percent.

The banking stock group was also flooded in red, with several stocks in the VN30-Index basket declining by over 1 percent. For instance, STB dropped by 2.71 percent, VIB decreased by 1.67 percent, MBM devalued by 1.3 percent, VCB retreated by 1.14 percent, and BID slid by 1.09 percent.

While the real estate stock group showed some variations, it mostly trended in the negative direction. Several large-cap stocks posted steep drops, with VIC down 2.43 percent, NVL down 1.62 percent, KBC down 1.24 percent, KDH down 1.97 percent, PDR down 2.78 percent, DIG down 2.83 percent, and DXG down 3.46 percent. However, a few managed to stay in the positive territory, with TCH up 4.32 percent, IDC up 1.82 percent, and BCG up 2.58 percent.

Additionally, other sectors, such as energy, aviation, and retail, also joined the overall market trend.

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