Sustainable investment capital in Việt Nam is not currently developing as strongly as in other countries, but  Việt Nam has great potential in attracting capital. Photo ocb.com.vn

Though the green fund market is still in the early stages in Việt Nam, it has begun to attract attention and promises to become an important part of the country’s green financial system.

In 2017 the Ho Chi Minh City Stock Exchange (HoSE) officially introduced the Vietnam Sustainability Index (VNSI), with the aim of determining sustainable development standards for listed companies and supporting institutional and individual investors in identifying businesses with green characteristics for investment.

However, the investment fund market in Việt Nam currently does not have specialised funds that track the Vietnam Sustainability Index (VNSI index) or funds that focus entirely on green investment.

The United Vietnam ESG Equity Fund (UVEEF) of UOB Asset Management Vietnam (UOBAM Vietnam) is currently the first and only open-ended fund in the Vietnamese financial market that applies ESG standards to select investment stocks.

The fund, which was established in November 2022, selects stocks based on high ESG practice standards according to its own rating, along with fundamental factors and good business prospects. The fund does not invest in stocks in some industries, such as coal mining or coal-fired power, which have negative impacts on the environment.

Director of UOBAM Vietnam’s ESG division that manages the UVEEF, Trương Minh Hùng, said as of April 2024, the net asset value of the UVEEF increased five and half times compared to the time of establishment in November 2022.

In 2023 - a year with many challenges for the economy as well as the Vietnamese stock market - the investment performance of the UVEEF was quite good compared to the market. The net asset value per fund certificate surged by 17.7 per cent, 5.5 per cent higher than the increase of the VN-Index. This growth rate put it in the top ten stock funds with impressive achievements in 2023, according to statistics from the open-ended fund distribution platform Fmarket. Hùng added that this is a positive signal that Vietnamese investors are increasingly paying attention to ESG factors and are interested in sustainable investment products.

A survey by Vietnam Plus also reports that stocks in the VNSI basket also appeared frequently in the investment portfolios of foreign funds investing in the Vietnamese stock market. It shows that the common point in the investment taste of the funds is gradually moving towards sustainable development, which will open up prospects for the development of specialised green investment funds in the future.

According to Hùng, though sustainable investment capital in Việt Nam currently does not develop as strongly as in other countries, Việt Nam has great potential to attract capital, thanks to a number of important factors.

Firstly, Hùng said, the Vietnamese Government has made a strong commitment to promoting green transformation and investing in renewable energy, with the goal of achieving net zero emissions by 2050.

Secondly, awareness and interest in sustainable investment among consumers and investors are increasing, especially as Vietnamese businesses must meet high ESG standards set by international importers and markets.

In addition, Việt Nam has received financial commitments from international organisations, such as the Just Energy Transition Partnership (JETP) agreement with the G7 that will finance US$15.8 billion to support the transition to a green economy and reduce greenhouse gas emissions.

Experts say that although green funds in Việt Nam have many favourable factors for growth, it is necessary for the domestic business community to participate in implementing ESG strategies and green growth goals to help the funds develop and promote their role as a driver of green capital.

According to representatives of UOB Vietnam, the main challenge when investing in ESG in the Vietnamese market is that many companies in the stock market are not fully aware of the importance of applying good ESG practices in business operations, so they have not allocated resources properly.

This results in limited information and data on ESG published by companies. Currently, companies are still not open in sharing information related to ESG, making it difficult to collect the necessary information.

Moreover, Việt Nam still lacks independent assessment organisations to ensure the transparency and reliability of ESG reports. 

South Korean port facilitates high-end furniture exports to Việt Nam

The Incheon Port Authority (IPA) announced on Sunday that exports of high-end South Korean furniture to Việt Nam have gained positive achievements.

To date, eight TEUs (one TEU is equivalent to a 20-foot container) have been shipped to Việt Nam from South Korea. IPA started exporting furniture to HCM City from April 2024. 

The export volume is expected to continue to increase as the high-end office furniture market in Việt Nam expands, according to IPA. 

Statista, a global market research company, predicts that the furniture market in Việt Nam will grow at a high average annual rate of 8.7 per cent until 2027.

In particular, as the economy has improved, interest in the quality and design of Korean furniture in the Vietnamese market is increasing. As banks, law firms, and many Korean companies are expanding their penetration into the Vietnamese market, the demand for high-end Korean office furniture is also rising.

To keep up with this trend, IPA plans to prepare support measures to reduce logistics costs, such as offering incentives on cargo volume.

In addition to increasing exports, IPA is also seeking cooperation with Vietnamese companies such as shipping, logistics, and import-export companies.

Previously, the IPA office in HCM City had supported 15 Korean small and medium-sized enterprises to export products through Incheon Port and distribute them on Vietnamese e-commerce platforms such as Shopee and Lazada, creating an export volume of up to 30 TEU. 

Stock market benefits from supportive policies and foreign capital inflow

The stock market had a positive trading week, boosted by optimistic investor sentiment.

Following a slight adjustment earlier in the week, the market rebounded with strong gains over the next three consecutive sessions, pushing the VN-Index closer to the 1,300-point level.

Additionally, robust capital inflow into the market reflected investor optimism driven by several favourable macroeconomic factors.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed the week at 1,290.92 points, while on the Hà Nội Stock Exchange (HNX), the HNX-Index ended at 235.71 points.

Both indices experienced weekly gains, with the VN-Index rising by 1.48 per cent and the HNX-Index increasing by 0.6 per cent.

Market liquidity also improved as investor sentiment turned more positive. The total average trading value per session for the week reached VNĐ21.498 trillion, a 19.3 per cent increase from the previous week. Notably, trading volume surged across all three exchanges, with some sessions surpassing the billion-dollar mark.

Foreign investors were more active during the week, increasing their trading volume. Although they sold a net total of VNĐ499 billion, this was primarily due to a significant one-off sale of VIB shares (-VNĐ2.7 trillion). Excluding this transaction, foreign investors showed a strong net buying trend throughout the week.

Phan Tấn Nhật, Head of Analysis at Saigon-Hanoi Securities (SHS), commented that the stock market received various positive macroeconomic news during the week, serving as an "inspiration" for the capital inflow into the market.

Noteworthy developments included General Secretary and President Tô Lâm meeting with leading US businesses, the State Bank of Việt Nam significantly increasing the scale of open market operations (OMO) to support liquidity in the banking system, and the People’s Bank of China (PBoC) announcing a 0.5 percentage point cut in the reserve requirement ratio, a reduction in key policy rates, and an injection of approximately RMB1 trillion (US$141.7 billion) in long-term liquidity into the financial markets.

Regarding the outlook for the coming week, Nhật said that after surpassing the highest levels of 2023 with substantial macroeconomic support, the VN-Index continued to show a relatively positive upward trend.

However, the VN-Index is facing strong resistance around the 1,300-point mark, which has been a peak for several months. Meanwhile, the VN30-Index rose over 2 per cent, closing at 1,352.57 points, breaking through the highest level of June at 1,340 points, but now facing significant resistance between 1,360-1,370 points, marking the connection to the highest price levels of 2023 and 2024.

In the short term, Nhật forecast that the VN-Index would continue its growth trajectory with the nearest support around 1,280 points, aiming for the resistance zone representing the highest price levels since the beginning of 2024, as well as the peak of August 2022.

At this psychological resistance level of 1,300 points, the market is exhibiting significant divergence, making it an unsuitable level for disbursement and offering no certainty of a further breakout.

Nhật said: “The market will conclude Q3 and commence Q4 amidst the release of business results. Therefore, investors should maintain a balanced portfolio and consider expanding or adding to their holdings, focusing on stocks that have not yet seen much recovery and are priced similarly to when the VN-Index was at 1,250 points.”

The analysis team at VCBS suggested that the market trading strategy remains in a stable phase without clear signals. Specifically, the Vietnamese stock market is on an upward trend, supported by multiple positive factors. However, investors should remain cautious, plan their investments wisely, and closely monitor market developments and influencing factors to make effective investment decisions. 

Rubber industry implements green growth to promote exports

Green growth and sustainable development are now inevitable trends for Vietnamese rubber enterprises to increase exports and competitiveness in export markets.

Those markets, especially in Europe and America, now have many requirements related to environmental protection for Việt Nam's rubber export products.

In addition to the green growth strategies within rubber processing and exporting enterprises, they also take responsibility for guiding smallholders to also carry out green development.

The Việt Nam Rubber Group has launched a green growth strategy, applied from rubber plantations to processing factories, for the group's member enterprises.

To secure long-term export contracts, Phước Hòa Rubber JSC must plant and process rubber according to specific procedures to maintain product quality, according to general director Nguyễn Văn Tước.

In addition, the company prints QR codes on its products to help customers trace the origin and verify the green raw materials of rubber plantations. The company also supports rubber smallholders in implementing green production.

Phước Hòa Rubber has also set green production criteria for rubber smallholders to develop a sustainable production chain. The company will support funding for smallholders to meet these green criteria.

By 2050, the company will aim to complete its green development strategy.

Phú Riềng Rubber Co, Ltd in Bình Phước Province, has also approached the criteria for sustainable forest development, according to Phú Riềng Rubber chairman Lê Văn Doanh.

As of 2023, ten out of 12 of the company's rubber farms achieved sustainable forest certification while the company continues to implement green production regulations, significantly improving the quality of its rubber products.

For companies involved in producing rubber products, sustainable development is the top criterion to expand export markets, particularly to demanding markets such as Europe, the US and the UK.

In these export markets, raw materials must ensure traceability and be produced and managed according to international standards.

In addition, operating a rubber latex processing factory or a rubber wood processing factory requires a large amount of energy, so the companies are being encouraged to reuse treated water and use solar energy.

Nguyễn Danh Khương, deputy general director of Đồng Phú Technical Rubber JSC, said that in recent years, Đồng Phú has been producing green products using power from a rooftop solar system.

In Nam Tân Uyên and Bắc Đồng Phú industrial parks, processing plants have been invested and managed by rubber companies, with strict implementation of environmental criteria. They are specifically re-using water, so called brown water, after it has being treated, for secondary activities in the factory and workshops.

Meanwhile, general director of Thuận An Wood Processing JSC Lê Thị Xuyến said that to ensure export, products must meet requirements related to labour safety and the working environment.

Every year, European customers require the company to evaluate and report on compliance with standards related to labour safety and working environment.

The rubber industry's synchronised development of green growth and sustainable development strategies has brought greater benefits in production and business of this industry, Xuyến said.

Investing in modern equipment helps reduce manual work and increase productivity. At the same time, it increases product value and promotes consumption in both domestic market and traditional export markets, she said. 

Vietnamese firms urged to focus on high-quality tea products

Domestic companies are being encouraged to produce high-quality tea products, such as specialty teas, to serve local consumption and service demand for exports.

In the 2018-23 period, Việt Nam exported between 125,000 and 140,000 tonnes of tea each year, bringing in a turnover of US$220-240 million per each, according to the Vietnam Tea Association. 

During the period, some enterprises had provided high-end tea products with prices ranging from $15,000 to over $50,000 per tonne, much higher than the average export price of Vietnamese tea at only $1,700-1,800 per tonne. However, the ratio of these quality tea products remained low. 

General Director of IGV JSC which owns Thạch Cổ Trà brand, Nguyễn Đăng Bền, said that the revenue of the Vietnamese tea industry mainly comes from green tea and black tea, which are low-value tea products, so the industry's revenue is low and producers do not have high profits.

Bền told Người lao động (Labourer) newspaper that he has chosen to invest in the specialty tea of ​​ancient trees of the primaeval forest. These tea products are processed within five hours of harvesting. Thanks to the fermentation method, the longer the tea products are stored, the more value they will have, he said. 

According to Bền, China has been very successful with Pu'er tea and the Chinese specialty tea market is worth up to $35 billion each year. He added that Pu'er tea is a tea product that bring higher profits than others, as it is also bought for collecting and investment purposes. 

The founder of Thạch Cổ Trà - a unique fermented tea product that can maintain its flavour for centuries - said he believed that the Vietnamese specialty tea market could reach a scale of $3.5 billion each year based on a population of 100 million people, with many similarities to that of China.

Specialty tea can also be exported to bring in large amounts of foreign currencies, Bền said, adding that to do this, it is necessary to protect, care for and preserve the unique primaeval tea forests, which are only in five countries in the world, Việt Nam, China, Laos, Myanmar and Thailand. 

Chairman of Tây Bắc Tea and Special Food Co, Phạm Vũ Khánh, which owns the Shanam tea brand, said that Việt Nam is home to about 20,000ha of ancient tea trees, considered the largest in the world. 

Ancient tea has high economic value thanks to its many valuable medicinal properties, with selling prices reaching from VNĐ2.5 million to VNĐ25 million per kilo. 

After gaining success in the north, Khánh said, his company is penetrating into the south, tapping into the high-end gift segment.

The company does not just sell tea products but it has teamed up with tourism companies to provide travellers with tour packages to ancient tea growing areas, in an attempt to improving the livelihoods of people in these areas, Khánh told the paper. 

Earlier, the Ministry of Agriculture and Rural Development identified tea as one of the six key industrial crops by 2030, covering an area of ​​about 120,000-150,000ha.

Over the past eight months of this year, Việt Nam shipped 92,280 tonnes of tea for over $162 million, up 30 per cent in both volume and value. Among some export markets that saw a sudden growth were Iran, up 2,720 per cent, and China, up 240 per cent. 

A study by Research and Markets showed that the global tea market is expected to reach $37.5 billion in 2025, up from $24.3 billion in 2016.

Drone pesticide spraying takes off at training session

Agriculture officials and experts learned all about using umanned aerial vehicles (UAVs or drones) to spray pesticides -- and even had a chance to do it themselves -- at a recent training session in Hà Nội.

Applying pesticides using drones ensures equivalent or even higher efficacy when compared to manual spraying with a backpack sprayer, said Huỳnh Tấn Đạt, Director of the Plant Protection Department, Ministry of Agriculture and Rural Development (MARD).

He made this statement during the training course, which was attended by 30 officials from 14 organisations nationwide and was organised by the Plant Protection Department in collaboration with CropLife Vietnam and AgriDrone Vietnam Joint Stock Company on September 27.

This is the first training and certification programme for officials conducting pesticide trials.

Participants received updates on new regulations regarding pesticide trials using drones, as well as basic knowledge about the operating principles of aerial devices in agriculture.

They also had the first-hand opportunity to operate the drone for pesticide spraying in rice fields located in Thụy Lâm Commune, Đông Anh District, Hà Nội.

The training programme involved the participation and technical support of AgriDrone Vietnam Joint Stock Company, management officials from the Plant Protection Department and technical experts from CropLife Vietnam.

According to Đạt, UAVs are among the important tools for pesticide spraying, fertilisation and seed sowing. The adoption of UAVs in agriculture is in line with government policy and MARD's agricultural production goals, especially applying technology to enhance agricultural efficiency, reduce input costs and increase the value of agricultural products.

Drones are being applied in agriculture in many countries around the world. Some common applications include mapping, inspecting and monitoring crops, pesticide spraying, irrigation monitoring and livestock management.

"The use of this tool in pesticide spraying has yielded significant results, greatly enhancing the awareness of officials directly involved in pesticide trials. Moreover, these officials will also become instructors or guides for their colleagues in the future, helping them to use drones optimally," Đạt noted.

According to the director, the precision of drone applications provides numerous benefits for farmers, helping to save input costs, improve human health and enhance the quality of agricultural products for both consumption and export.

“Drone pesticide application reduces water usage by over 90 per cent, cuts costs by about 50 per cent and sprays 30 times faster than traditional methods,” he said.

In early 2023, the Plant Protection Department issued the Standard on 'Field Trials of Pesticides for Controlling Agricultural Pests Using Drones.' This is considered an important legal and technical foundation for organisations conducting trials to develop procedures and use drones for pesticide spraying.

The use of pesticides has therefore been expanded and made more effective and safer for farmers. This first collaboration between the Plant Protection Department, CropLife Vietnam and various partners is seen as a foundation for building a high-quality workforce. In the future, farmers hope to also be able to operate drones for pesticide spraying.

According to Đặng Văn Bảo, Chairman of CropLife Vietnam, like all other agricultural tools and solutions, the use of drones must comply with existing regulations on pesticide application as well as specific safety standards.

“With this training activity and future initiatives, CropLife Vietnam will continue to collaborate with the Plant Protection Department and partners to develop standardised operating guidelines and improve the registration process to maximise the effectiveness and benefits of this technology for farmers,” he said.

Mai Anh Tuấn, Chairman of the Board of Directors of AgriDrone Vietnam Joint Stock Company, stated that the key to effectively leveraging this technological advancement is collaboration.

The driving force behind the application of drones for pesticides nationwide comes from the active involvement, investment and cooperation between regulatory agencies and businesses. This enhances comprehensive reforms, optimises productivity and ensures safety for farmers, moving toward smart and sustainable agriculture, he added.

At the event, the Plant Protection Department and CropLife Vietnam also announced a technical document on Safety Guidelines for Pesticide Spraying Using UAVs, which aims to promote and instruct on safety principles when applying drones for pesticide spraying.

Agricultural, forestry and fishery trade turnover reaches nearly $70 billion

Since the beginning of the year to mid-September, Việt Nam's agricultural, forestry, and fishery trade turnover reached approximately US$69.84 billion, according to the General Department of Customs.

The country currently boasts a trade surplus of nearly $12.4 billion in these sectors.

In the first half of September 2024, the trade turnover of key agricultural, forestry, and fishery products was estimated at $1.48 billion, with exports reaching $1.03 billion and imports totalling $448 million.

From the beginning of the year to 15 September, the export turnover of key agricultural, forestry, and fishery products stood at approximately $41.11 billion, while imports amounted to $28.72 billion.

Statistics from the Ministry of Agriculture and Rural Development indicate that by the end of August 2024, the export turnover growth rate of key agricultural, forestry, and fishery products had reached 18.6 per cent year-on-year, while import turnover had increased by around 5.6 per cent.

Among export items, wood and forest products took the lead with a turnover of nearly $10.9 billion, followed by seafood at approximately $6.68 billion. Fruit and vegetables, coffee, and rice also recorded significant turnovers, amounting to $5.18 billion, $4.13 billion, and $4.06 billion, respectively. Cashew nuts and rubber also contributed notably, with export turnovers of nearly $3 billion and $2 billion, respectively.

On the import side, animal feed and raw materials were the largest imports, totalling $3.45 billion, followed by cashew nuts at around $2.55 billion. Additionally, Vietnamese enterprises spent roughly $1.75 billion on seafood imports and $1.54 billion on fruit and vegetables.

The Ministry of Agriculture and Rural Development noted that, given the current export turnover growth rate, many agricultural, forestry, and fishery products are likely to see a breakthrough in growth in the coming months as the year-end harvest season approaches. Therefore, the target of achieving $55 billion in export turnover for agricultural, forestry, and fishery products in 2024 is expected to be met soon. 

Deli stationery factory with a total investment of $270 million breaks ground

China’s Deli Group broke ground for its new stationery manufacturing plant at the Đại An Expanded Industrial Park in Hải Dương Province on 28 September, with a total investment of US$270 million (VNĐ6.49 trillion).

The factory, covering an area of 21.248 hectares, is set to operate for 50 years. Once completed, it is expected to produce over 104 million stationery and household items made from paper and plastic annually.

Additionally, the plant will manufacture more than 2.4 million electronic products, including personal computers, photocopiers, and shredders, as well as 22.5 million rubber products such as balls, sticks, and mats.

The anticipated revenue is estimated at around US$5 million per year.

Founded in 1981, Deli Group is headquartered in China and has research and innovation centres in Germany and the United States. Deli is currently a leading enterprise with a diverse and high-quality product portfolio, popular in 140 countries and regions, including the United States, Europe, South America, the Middle East, and Southeast Asia.

Speaking at the groundbreaking ceremony, Deputy Prime Minister and Minister of Finance Hồ Đức Phớc praised the thorough preparation and close coordination between Hải Dương Province's departments and the investor. He emphasised that this is a significant foreign direct investment (FDI) project, funded by one of China's leading companies, and expressed confidence that it will contribute positively to the province's development in the coming period.

Deputy Prime Minister Hồ Đức Phớc also reiterated that the Vietnamese Government prioritises digital transformation and green transition as core strategies for restructuring the economy and promoting sustainable growth. He urged the investor to utilise modern technologies and green materials to create environmentally friendly products.

He assured that Việt Nam will continue to improve its legal framework, foster a fair and favourable business environment, listen to and promptly address difficulties to support investors and businesses in achieving sustainable development. He also requested Hải Dương Province to accompany and assist the investor during construction and operation, ensuring compliance with legal regulations.

Lê Ngọc Châu, Chairman of Hải Dương Provincial People’s Committee, stated that the province is fully prepared to welcome both domestic and foreign investors. The provincial authorities are committed to providing every favourable condition to ensure that projects are implemented on schedule and achieve high efficiency.

To date, Hải Dương has attracted 584 foreign investment projects from 27 countries and territories, with a total capital of over US$10.5 billion. The province also hosts 1,761 domestic investment projects, totalling nearly VNĐ113 trillion, ranking fourth in the Red River Delta region and eleventh nationwide. According to the plan up to 2030, Hải Dương will have 32 industrial parks with a total area of 5,661 hectares.

At the groundbreaking ceremony, Chairman Lê Ngọc Châu presented the investment certificate to Deli Group. On this occasion, Deli Group also donated VNĐ2.5 billion, including VNĐ2 billion in cash and 30,000 sets of school supplies, to the Việt Nam Fatherland Front in Hải Dương Province to support recovery efforts following the impact of Typhoon Yagi. 

South Africa launches anti-dumping investigation on car and bus tyres from Việt Nam

The Trade Remedies Authority of Việt Nam (under the Ministry of Industry and Trade) has announced that South Africa has officially initiated an investigation into alleged tax avoidance and anti-dumping practices on car, bus, and truck tyres imported from Việt Nam, Thailand, and Cambodia.

The move is based on allegations that these products are avoiding anti-dumping taxes that South Africa has already imposed on similar goods from China.

The products under investigation include car, bus, and truck tyres classified under the following South African import codes: 4011.10.01, 4011.10.03, 4011.10.05, 4011.10.07, 4011.10.09, 4011.20.16, 4011.20.18, and 4011.20.26. The plaintiff in this case is the South African Tyre Manufacturers Conference, which initiated the investigation on 20 September 2024, alleging a dumping margin of up to 84 per cent for Việt Nam.

The anti-dumping investigation period is set from 1 November 2023 to 31 May 2024. Meanwhile, the anti-circumvention investigation covers four phases: from 1 March 2022 to 30 September 2022, from 1 October 2022 to 30 April 2023, from 1 April 2023 to 31 October 2023, and from 1 November 2023 to 31 May 2024.

Earlier, in May 2023, the International Trade Administration Commission of South Africa (ITAC) imposed anti-dumping duties on car, bus, and truck tyres originating from China, with a tax rate ranging from 7.18 per cent to 43.60 per cent.

According to the Trade Remedies Authority, relevant documents, including a public version of the investigation application, the notice of initiation, and the investigation questionnaire, will be sent by ITAC to relevant Vietnamese manufacturers and exporters within seven days of the initiation date, specifically on 27 September 2024.

Involved enterprises are required to submit their responses to the questionnaire by 15:00 on 28 October 2024 (South African time) via postal mail to: The Senior Manager, Trade Remedies II, Private Bag X753, Pretoria, 0001, South Africa. In the event of any arguments or comments related to the case, companies may also send their submissions to the aforementioned address.

ITAC will carry out subsequent steps, including issuing preliminary and final conclusions, conducting on-site verification, and holding hearings to verify the information. This will facilitate a decision regarding the alleged tax avoidance, damage to the domestic industry, and the causal relationship.

The Trade Remedies Authority recommends that associations and relevant producers and exporters thoroughly review the investigation application, the initiation notice, and the guidelines and regulations provided by South Africa. Moreover, full cooperation in responding to the questionnaire and providing information as requested by ITAC is crucial.

In addition, businesses should consider diversifying their export markets, as if South Africa imposes anti-dumping duties, other member countries of the Southern African Customs Union (including Botswana, Lesotho, Namibia, South Africa, and Eswatini) might take similar actions. Regular communication with the Trade Remedies Authority will ensure timely support and the latest information. 

Việt Nam seeks to address pharmaceutical industry woes

The pharmaceutical industry has seen impressive growth over the past three decades, with per capita drug expenditure skyrocketing from US$0.5 to $75, according to former Minister of Health Lê Văn Truyền.

Truyền was speaking at the seminar 'Innovation-The Development Pillar for the Pharmaceutical Industry' on Wednesday.

Despite the growth, the former Minister underlined several challenges for the industry, the first being limited technical infrastructure, which has hindered the digitalisation pace of the sector.

The second is the lack of human resources capable of conducting R&D. While the industry is shifting towards biological drugs, Việt Nam's manufacturing capabilities primarily focus on chemical drugs and this gap poses a challenge for domestic companies to adapt and follow the trend.

The third lies in the decentralised nature of R&D facilities and the lack of large-scale, national-level R&D centres. Most companies have small, understaffed research departments and the mechanisms for transferring R&D results are underdeveloped.

The fourth centres around the constrained financial resources of domestic pharmaceutical companies. The low level of R&D investment makes it difficult to achieve significant breakthroughs.

Additionally, the uncertainties surrounding the return on investment, such as cost recovery and market penetration, discourages them from making substantial R&D commitments.

"There is a glimmer of hope as these issues have been identified in the Pharmaceutical Industry Development Strategy for 2030," said Truyền.

"The ongoing revisions to pharmaceutical regulations indicate a strategic approach to addressing these issues, promising improvements by 2030 and 2045."

Highlighting the progress made in addressing shortcomings and revising the Pharmaceutical Law, Tạ Mạnh Hùng, Deputy Director of the Ministry of Health's Drug Administration, noted that the industry has seen remarkable growth since 2016.

It has transitioned from being predominantly state-owned to one characterised by over 200 private companies. This transformation has effectively addressed the previous drug shortages, ensuring healthcare services be adequately supplied.

"However, through the eight years of implementing the Law, the need for amendments has become apparent," said Hùng.

"The current draft amendment to the Law encompasses five major measures."

The first measure involves boosting the supply of quality medicines to meet people's needs. The second is to guarantee the supply of medicines to meet the demands of disaster relief, national security, and disease control.

The sector also needs to raise the bar on imported and exported drugs and pharmaceutical ingredients in line with international practices.

It also needs to accelerate growth, focusing on R&D, technology transfer and the production of innovative and advanced drugs, biological drugs/ingredients and standardised herbal medicines.

Finally the industry needs to restructure and reorganise the pharmaceutical raw material distribution system to align with international norms.

"We seek to improve drug availability but only for products that meet the highest standards. We want to avoid a rush to expand the industry without adequate safeguards," said Hùng.

Cà Mau to spend more than $34 million to upgrade its airport

The Mekong Delta province of Cà Mau plans to spend about VNĐ860 billion (US$34.4 million) from its budget for land clearance and to expand and upgrade Cà Mau Airport.

The provincial director of the Department of Planning and Investment, Nguyễn Đức Thánh, said that the project will start this year and be completed next year. It is expected that the province will reclaim about 105 hectares of land in Ward 6 and Tân Thành Ward in Cà Mau City to implement the airport upgrade project.

The province estimates that there will be five organisations and about 742 households and individuals affected.

From now to the end of the year, the department will develop a plan for compensation and resettlement support, and hand over part of the site to Airports Corporation of Vietnam (ACV) to begin construction.

The province will continue to carry out compensation and resettlement support, striving to hand over the entire remaining construction site to ACV in early 2025.

To achieve that goal, the provincial People's Committee has directed relevant agencies to promptly and fully implement compensation policies and resettlement support for affected organisations and individuals.

Along with that, the Department of Natural Resources and Environment will advise and propose to the committee on a land clearance plan with criteria of creating favourable conditions for affected households to have a better life.

In addition, the province will also ensure adequate supply of construction materials to keep the project on schedule.

In recent times, the shortage of sand and stone supply has greatly affected the investment cost and construction progress of investment and construction projects in Cà Mau Province.

According to the People's Committee, this project will need about 1.8 million cubic meters of various types of sand.

The current capacity of Cà Mau Airport is 200,000 passengers per year. It is expected that from now until 2030, Cà Mau will increase airport capacity to 1 million passengers per year.

Currently, this airport only operates one flight route, Cà Mau - HCM City and vice versa, with a frequency of four flights per week. 

HCM City sets ambitious target for high-tech sector to constitute 40% of GRDP

HCM City has established an ambitious target for high-tech industries to comprise 40 per cent of its gross regional domestic product (GRDP) by 2030, a city official said.

Speaking at the recent Friendship Dialogue 2024, Phan Văn Mãi, chairman of HCM City People’s Committee, said it was vital to transition from traditional industries to high-tech and value-added sectors. 

“Industrial transformation is not merely an option; it is an urgent necessity for HCM City and cities worldwide,” he noted.

High-tech industries currently account for only 23 per cent of the city’s GRDP, he said, adding that by increasing the percentage, the city wants to maintain its economic prominence both nationally and regionally.

In response to the global shift towards sustainable production, the city has embraced a dual strategy that merges green transformation with digitalisation in order to foster sustainable and inclusive growth.

The city will increase investments in high-tech industries, with a focus on automation, smart factories, and advanced manufacturing technologies to enhance its value chain.

The city grew 6.46 per cent in the first half of the year, the highest level since 2020, which included a 5.55 per cent increase in the industrial and construction sectors, according to the city’s Statistics Office.

The industrial production index (IIP) rose by 5.6 per cent, representing the highest increase in three years, contributing to an export turnover of $20.6 billion during this period.

Experts have advocated for global collaboration among governments, businesses, and citizens to drive industrial transformation through technology transfer, green infrastructure investment, and high-tech partnerships. 

They emphasise sustainability, innovation, and inclusivity, agreeing to share knowledge and advance projects that promote green and digital economies to enhance urban ecosystems.

Mãi, chairman of HCM City’s People’s Committee, said that international cooperation is vital for maximising industrial transformation benefits while minimising negative impacts. 

Federico Penino from Montevideo highlighted the city’s focus on attracting investment in biotechnology, agriculture, and tourism. 

Mark Chandler from San Francisco underscored the need for education, training, and robust infrastructure to attract skilled workers and investors.

Key strategies for transformation include investing in research and development, cultivating skills, offering tax incentives, and fostering collaboration. 

The International Labor Organization (ILO) expected a 30 per cent increase in labour productivity over the next decade due to automation and technological advancements. 

The Friendship Dialogue 2024 seminar themed “Industrial Transformation: Experiences and Priorities in Development Cooperation,” was attended by leaders from HCM City and 37 international cities with friendship ties. 

India officially lifts rice export ban

India has officially lifted its ban on the export of non-basmati white rice with the floor price being applied at US$$490 per tonne, according to the Vietnam Food Association (VFA).

Simultaneously, the South Asian country also moved to reduce the export duty placed on basmati rice from 20% to 10%.

The removal of the rice export ban is likely to make countries such as Pakistan, Thailand, and Vietnam adjust prices for competition, which in turn will cool down rice prices in the global market.

At present, the Vietnamese export price of 5% broken rice stood at US$560 per tonne, down US$20 compared to last week.

Similarly, the export price of Thai rice has also dropped to US$550 per tonne, the lowest level recorded in more than a year. In addition, India's return to the market will exert further pressure on popular rice varieties such as 5% and 25% broken rice from the nation.

However, insiders have pointed out that Vietnamese rice prices are unlikely to fall below US$500 per tonne due to an insufficient domestic supply source, especially when this year's autumn-winter crop have been affected by climate change, which in turn will lead to a reduction in productivity.

India's rice export ban was initially implemented from July, 2023 with the aim of controlling domestic rice prices amid dry weather due to the impact of the El Nino weather phenomenon, thereby raising concerns about rice supply shortages.

According to information given by the General Department of Vietnam Customs, by mid-September, Vietnam’s rice export volume reached nearly 6.5 million tonnes with a value of over US$4 billion, up 6.2% in volume and 21.2% in value against the same period from last year.

With this result, the country has completed more than 80% of the annual export plan and is expected to fulfill this year's target of 7.6 million tonnes of rice.

Vietnam grosses over US$162 million from tea exports

Vietnam earned over US$162 million, equal to VND4,000 billion, from exporting 92,800 tonnes of tea during the opening eight months of the year, exceeding the turnover from the entirety of last year, according to the General Department of Vietnam Customs.

Pakistan continued to represent the largest importer of Vietnamese tea, with turnover reaching US$62.3 million, up 11.3% against the same period from last year.

China spent nearly US$13.2 million on purchasing Vietnamese tea, thereby doubling the figure from the same period last year, while tea exports to the United States also increased sharply to reach nearly US$8 million.

The average tea export prices in the Pakistani market stood at above US$2,000 per tonne, while the price in other markets fluctuated between US$1,600 and US$1,800 per tonne.

Most notably, in the Chinese market, despite the purchasing output witnessing a three-fold rise, the average tea price stood at only US$1,458 per tonne, down nearly 40%.

Insiders pointed out that this year will see positive signs ahead for tea exports, with several markets increasing their purchases from 50% to 230%.

Tea exports in the remaining months of the year are anticipated to hit a record figure, duly surpassing the US$229 million mark seen back in 2011.

Despite a wealth of opportunities for expanding markets, the tea industry is required to focus on product quality, diversify products, promote organic tea production, and apply modern production procedures. Last year, Vietnam fetched about US$157 million from exporting approximately 85,000 tonnes of tea, thereby making the nation the world's fifth largest tea exporter.

Cruise ship brings 2,000 foreign tourists to Ha Long Bay

Italian-flagged passenger cruise ship the Costa Serena docked at Ha Long International Cruise Port in the northern province of Quang Ninh on September 30.

The five-star cruise ship brought with it a total of 3,000 passengers, mainly from China and other Chinese-speaking countries, along with over 1,000 crew members.

During the course of their stay, the tourists will visit Ha Long Bay and go on city tours to explore local culture and cuisine. At 18:00 p.m. on the same day they departed Ha Long Bay as they continued with their journey.

According to the schedule, the cruise ship will continue to bring tourists to Ha Long City on October 14, October 18, November 4, and November 8.

By the end of this month, the northern city will welcome 60 to 70 foreign cruise ships from renowned firms such as Royal Caribbean Cruise Line, Azamara, and Mein Schiff 5, bringing with them roughly 70,000 passengers from the United States, Canada, the UK, and Australia.

Most notably, Ha Long City will welcome American-flagged cruise ship The World, carrying with it 170 millionaires and billionaires, mainly from the US and Europe. They will stay in the city for four days.

Vietnam Card Day 2024 to be held early next month

The fourth Vietnam Card Day 2024 is set to take place in Hanoi between October 5 and 6 with the theme Open Banking, aiming to reach students and young people aged 15 to 40 who require convenient digital payment solutions and online transaction options.

The annual event is jointly organised by Tien Phong (Vanguard) newspaper and the National Payment Corporation of Vietnam (NAPAS) under the instruction of the State Bank of Vietnam (SBV).

At the Vietnam Card Day 2024 event, the concept of Open Banking will be highlighted amid the banking industry’s comprehensive digital revolution. This approach involves banks sharing data with third parties to enhance customer experiences significantly. Open Banking is emerging as a key trend and catalyst for transformation, promising to revolutionise the delivery of banking products and services.

The event specifically targets students and young people aged 15 to 40 who are looking to use digital payment methods and online banking services. This includes internet banking, mobile banking and integrated services offered through third-party platforms, such as online public services, e-commerce and travel bookings.

As of now, approximately 77.41% of Vietnamese adults have bank accounts, with over 35 million active payment accounts and around 14.9 million cards issued using the eKYC electronic method.

The future of banking is firmly rooted in digital technology, featuring innovative payment methods such as Tap to Pay, Tap to Phone, QR code payments, e-wallets and mobile payments. Advancements like eKYC are also paving the way for a more streamlined banking experience.

Vietnam Card Day 2024 will highlight the commitment of young people to embrace new technologies and foster a spirit of development and adaptability.

At a press conference in Hanoi held last week, Pham Anh Tuan, SBV’s Director of the Payment Department, said, "Credit institutions are increasingly transitioning from traditional banking models to open banking frameworks. This shift enhances connectivity and technology integration across various sectors, positioning banks as vital conduits for information exchange between financial institutions and businesses. As a result, we are making significant strides in promoting non-cash payments among consumers and enterprises alike."

To foster the digitalisation of banking and promote non-cash payment methods, including card payments, financial education and communication play a crucial role. Recently, the banking sector has continually innovated its communication strategies, producing engaging content and utilising diverse formats. By leveraging modern technology, these efforts aim to enhance outreach and ensure that the information is easily understood, memorable, and actionable for the public.

Nguyen Quang Hung, Chairman of the Board of Directors of NAPAS said that Vietnam Card Day 2024 will provide a platform for the banking industry to showcase the latest trends in digital banking, along with modern banking products and services. This event offers young people an opportunity to explore and learn about these innovations while also enhancing their skills in using banking services safely and effectively.

Vietnam Card Day 2024 will feature six key activities: a press conference announcing the series of events; a Megasale Online Campaign from September 30 to October 26; a seminar on October 2; a career orientation seminar at the National Economics University on October 4; and the Vietnam Card Day 2024 Song Festival at Bach Khoa Stadium from October 5 to 6.

The event will also feature the participation of 26 commercial banks and merchants. 

Incheon int'l port creates export channel for Korean office furniture to Vietnam

The export of Korean office furniture to Vietnam via the Incheon internation port since April this year has witnessed initial results, according to the port authority.

The Incheon International Port Authority (IPA) on September 29 reported that eight TEUs (twenty-foot equivalent units) have been exported from the Republic of Korea (RoK) to Ho Chi Minh City.

The export volume is expected to continue to increase as the high-end office furniture market in Vietnam expands, it said.

Statista, a global market research company, predicts that the size of the furniture market in Vietnam will grow at an average annual rate of 8.7% until 2027. In particular, as the economic level improves, interest in the quality and design of Korean furniture in the Vietnamese market is increasing. As Korean banks, law firms, and companies are increasingly entering into the Vietnamese market, demand for high-end Korean office furniture is also higher.

To catch up with this trend, IPA plans to prepare support measures to reduce logistics costs, such as offering incentives on cargo volume.

To increase exports, IPA is also seeking cooperation with Vietnamese companies such as shipping, logistics, and import-export companies. Previously, the IPA office in Ho Chi Minh City supported 15 Korean small- and medium-sized enterprises to export products through Incheon port and distribute them on Vietnamese e-commerce platforms such as Shopee and Lazada, resulting in an export volume of up to 30 TEUs.

IPA Vice President of Port Operations Kim Sang-ki said the port strives to become a major export channel for office furniture. It pledged to support import-export companies by reducing logistics costs and resolving their difficulties./.

Vietnam, Mongolia seek to boost trade cooperation

The State visit to Mongolia by Party General Secretary and State President To Lam is expected to open up new avenues for businesses in both countries to expand their partnerships and explore investment opportunities.

Vietnam was the first Southeast Asian nation to establish diplomatic relations with Mongolia, on November 17, 1954. Over the past seven decades, their traditional friendship has flourished, achieving notable progress across various sectors.

Experts highlighted that Mongolia places importance on Vietnam's rising role and status. In discussions with Vietnamese leaders, the Mongolian side consistently affirmed Vietnam is a key partner in its foreign policy within Southeast Asia and a vital gateway to the 700-million-strong ASEAN market.

Their first trade agreement was signed in 1958. Vietnam’s Ministry of Industry and Trade has since sealed a memorandum of understanding (MoU) on economic and trade cooperation with Mongolia's Ministry of Foreign Affairs (initially signed in 2008 and renewed in August 2021) as well as a 2023 MoU on sustainable rice trade with Mongolia's Ministry of Food, Agriculture, and Light Industry. These latter aims to establish a comprehensive cooperation mechanism to ensure food supply and stabilise rice markets in both nations.

Yet bilateral trade remains modest, primarily due to Mongolia's small market size and geographical challenges. Vietnam mainly exports to the market grain products, LCD and LED screens, and rice, while importing tungsten ore and a few other products.

Experts noted that Mongolia's vast territory and rich mineral resources present significant potential for stronger collaboration between the sides, especially in mining, rare earth metals, and critical materials for electric vehicle production, green economy initiatives, climate change mitigation, and pollution reduction.

Vietnam's strengths are seen in its market of over 100 million people, which is experiencing rapid growth in its middle class. Entering the market, Mongolian businesses have chances to leverage its extensive network of over 17 free trade agreements (FTAs), including new-generation ones like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam FTA.

Vietnamese Ambassador to Mongolia Nguyen Tuan Thanh stressed the growing economic and trade cooperation and noted that bilateral trade exceeded 130 million USD last year. While the trade volume remains modest, there is strong potential for growth, particularly in the export of farm produce, food, and consumer goods from Vietnam. Additionally, Vietnam could serve as a market for Mongolian agricultural products and raw materials.

Experts asserted that their trade structures are complementary rather than competitive. So, both sides should continue to promote import-export, ensure mutual market access, and meet each other's standards and needs, toward doubling bilateral trade in the near future./.

VNA//VNS/VOV/SGGP/VGP