Prime Minister Pham Minh Chinh will lead a high-ranking delegation of Vietnam to attend the 42nd ASEAN Summit in Labuan Bajo, Indonesia, from May 9-11.

PM Chinh’s attendance at the event will be made at the invitation of the Indonesian President and Chairman of the 42nd ASEAN Summit, Joko Widodo, according to an announcement released by the Vietnamese Ministry of Foreign Affairs on May 5.

Luxembourg Prime Minister concludes official visit to Vietnam

Prime Minister Xavier Bettel and a high-ranking delegation of Luxembourg left Vietnam, successfully concluding their official visit to Vietnam from May 3-5 at the invitation of Prime Minister Pham Minh Chinh.

During his stay in Vietnam, Bettel held talks with his Vietnamese counterpart Chinh, witnessed the signing of cooperation documents in finance, including an agreement on strategic partnership in green finance between the two countries’ finance ministries, met with the press on outcomes of the talks, had a meeting with National Assembly Chairman Vuong Dinh Hue, and visited the Temple of Literature and the Vietnam Fine Arts Museum.

The PM also visited Ho Chi Minh City, attended and delivered a speech at the Vietnam-Luxembourg Business Forum, visited the Ho Chi Minh Stock Exchange and the War Remnants Museum, and scoped out climate change impacts in the area along Sai Gon River.

During the meetings, the two sides affirmed their wish and determination to advance the bilateral relationship to a new development period, making it more intensive, extensive and substantive.

They agreed on measures to enhance the political trust and deepen the friendship and multi-faceted cooperation between the two countries such as increasing all-level delegation exchanges, effectively implementing bilateral cooperation mechanisms and establishing new ones, and pushing ahead with the construction of logistics centres.

The Luxembourg PM consented to effectively and fully materialising the EU-Vietnam Free Trade Agreement (EVFTA) in order to boost bilateral trade, and to urge other EU countries to soon ratify the EU-Vietnam Investment Protection Agreement (EVIPA).

The leader also noted his support for EU-Vietnam cooperation in sustainable fishery, and the EC to remove its '”yellow card” warning on Vietnamese seafood at an early date.

Apart from green finance, the two sides concurred to step up collaboration in culture, science-technology, information-communications, people-to-people exchange, tourism, and climate change response.

Regarding regional and international issues of shared concern, they affirmed their further coordination and mutual support at multilateral forums and international organisations such as ASEAN-EU cooperation, the Asia-Europe Meeting (ASEM) and the United Nations, especially at the time when both countries are members of the UN Human Rights Council, contributing to peace, stability, cooperation and development in the region and the world.

On the East Sea issue, they reiterated the importance of ensuring peace, stability, security, safety and freedom of navigation and aviation in the East Sea, neither using force nor threatening to use force, and settling disputes by peaceful measures in line with international law, particularly the 1982 UN Convention on the Law of the Sea (UNCLOS).

The two sides expressed their support for the early approval of a substantive, effective Code of Conduct in the East Sea (COC) in accordance with international law.

Following the visit to Luxembourg by PM Chinh in December 2022, PM Bettel’s official visit to Vietnam demonstrates the two countries’ resolve to work together in elevating the bilateral cooperation to a new height.

State President meets Singaporean counterpart in UK

State President Vo Van Thuong said he highly appreciates the establishment of the digital and green economic partnership between Vietnam and Singapore, which aims to bring the cooperative relationship to a new and sustainable stage.

He was speaking on May 5 at a meeting with Singaporean President Halimah Yacob in London on his trip to attend the coronation of King Charles III at the invitation of the Royal Family of the UK. 

Thuong expressed his pleasure at the recent developments in the Vietnam-Singapore relations in all fields.

He said this year marks the 50th anniversary of the establishment of the diplomatic relations and the 10th anniversary of the establishment of the Vietnam-Singapore strategic partnership, so both countries needed to continue to take effective measures to elevate the relationship to new heights.

The two sides need to maintain exchanges at all levels, especially at high levels, and strengthen cooperation in investment, trade, education and training, tourism, and people-to-people exchanges.

He expressed his hope that both countries will continue to enhance their exchanges and closely coordinate in international and multilateral forums, particularly at the United Nations and ASEAN.

The Singaporean President expressed her desire for the two countries to cooperate even more closely through successful platforms such as the Vietnam - Singapore industrial parks and in new areas of cooperation such as renewable energy, digital transformation, and carbon credit markets.

She agreed with Thuong's proposal to strengthen cooperation in training personnel as well as in innovative fields.

The two leaders exchanged views and agreed on the importance of promoting the strategic partnership between the two countries, with a focus on enhancing political trust and expanding cooperation in the areas of economy, trade, security, cultural exchange, education, and people-to-people exchange.

Both sides emphasised the importance of building a united, self-reliant ASEAN community which plays a central role in the shaping of the regional structure, maintaining a peaceful and stable environment, resolving disputes peacefully, and fully implementing the Declaration on the Conduct of Parties in the East Sea (DOC) and concluding effective and substantive negotiations on the Code of Conduct (COC) that are in line with international law.

PM welcomes Chairman of Japan - Vietnam Parliamentary Friendship Alliance

Prime Minister Pham Minh Chinh welcomed Chairman of the Japan - Vietnam Parliamentary Friendship Alliance Nikai Toshihiro, its leadership, parliamentarians and leaders of Japanese localities who are on a visit to Vietnam on the occasion of the 50th founding anniversary of diplomatic ties this year.

At a reception for the Japanese guests in Hanoi on May 5, PM Chinh affirmed that Vietnam is determined to build an independent and self-reliant economy that actively integrates into the world, with priority given to three strategic breakthroughs, namely institutional reform, infrastructure construction and improvement, and enhancing the quality of human resources.

He suggested Toshihiro prompt the Japanese Government to continue providing new-generation ODA for Vietnam in strategic infrastructure construction, and wished that Japanese investors would increase their investment in Vietnam in the spirit of getting mutual benefits, sharing risks and harmonising interests.

The PM proposed Japan assists Vietnam in increasing the value chain of agricultural products through investment and technology transfer, seed selection and processing, preservation; promoting the import of Vietnamese agricultural products, opening the market for fruits such as green-skin pomelo in Japan.

Toshihiro, for his part, said his visit will contribute to promoting economic, agricultural, labour cooperation and people-to-people exchanges between the two countries.

Agreeing with Toshihiro and his delegation’s idea to boost educational tourism, PM Chinh suggested the guest urge the Japanese Government soon announce a fund to support educational tourism for Vietnamese students.

The host and guest agreed to further comprehensively enhance bilateral exchanges and cooperation, especially between the two legislatures, parliamentarians and people. They also vowed to continue reinforcing economic, trade, investment and tourism cooperation, locality-to-locality and people-to-people exchanges, particularly between young generations, as well as work closely together at multilateral forums, and on global and regional issues of shared concern.

Receiving the Japanese delegation in the afternoon of the same day, Truong Thi Mai, Politburo member, permanent member of the Party Central Committee’s Secretariat and Chairwoman of its Organisation Commission and Chairwoman of the Vietnam-Japan Friendship Parliamentarians’ Group, affirmed that the Vietnamese National Assembly will continue working closely with the National Diet of Japan to fine-tune laws, create a favourable environment for businesses of both countries to enhance economic, trade, and investment relations in a manner commensurate with the good political relationship, as directed by leaders of the two countries.

Mai wished that Japan would continue supporting the increase of exchanges between legislators of the two countries, encourage Japanese firms to invest more in Vietnam, especially in new areas such as green economy, digital transformation, climate change adaptation, and environmental protection.

In addition, she urged active exchanges and cooperation between localities in important areas of mutual interest such as trade, tourism, labour, high technology, agriculture and fisheries, especially through direct investment, thereby bringing benefits to the people of both nations.

The official also welcomed the organisation of festivals in both countries to enhance mutual understanding and solidarity between the people of Vietnam and Japan.

Toshihiro expected that effective and practical activities will be held to enhance cooperation in many fields, especially in culture, tourism, agriculture, commerce and investment.

In the near future, the two countries should step up people-to-people exchange activities, especially among young generations, thereby contributing to developing their friendly cooperation, he said.

Following the reception, the host and guests planted Japan’s Oga lotus seeds in Vietnam, demonstrating the desire to further strengthen the friendship and cooperation between the two countries.

HCM City eyes cooperation with Luxembourg in different fields

Ho Chi Minh City wishes to learn from Luxembourg’s experience and cooperate with the European country in science-technology and green finance, towards building a financial centre in the time ahead, a municipal official said on May 5.  

At a reception for Prime Minister of Luxembourg Xavier Bettel, Chairman of the HCM City People’s Committee Phan Van Mai stressed that PM Bettel’s visit will contribute to boosting cooperation activities between the city and the European nation.

The official noted that HCM City stands ready to cooperate with Luxembourg partners in the fields of high-tech, digital transformation, renewable energy and green energy.

Mai used this occasion to thank Luxembourg for its financial support to HCM City in the rollout of climate adaptation projects, and called on the PM to continue connecting the city with Luxembourg partners.

HCM City always welcomes foreign partners and enterprises, including those from Luxembourg, to operate in the city, he affirmed, adding that HCM City wants to strengthen cooperation with businesses of Luxembourg in the areas in which the southern largest economic hub has potential and demand like agricultural product processing, high-tech agriculture and manufacturing.

For his part, PM Bettel held that HCM City and Luxembourg hold substantial cooperation opportunities, and that Luxembourg’s enterprises will be sustainable, reliable partners of local firms, helping them expand connections with the European market.

The two countries should create more favourable conditions for their businesses to operate in the respective markets, he continued.

Sharing Mai’s view, the PM said finance, especially green finance, will offer good cooperation opportunities to Luxembourg and HCM City, stressing that Luxembourg is committed to assisting Vietnam and HCM City in particular in this field, as well as sustainable development.

He said cooperation in traditional spheres like education, environmental protection, climate change response, renewable energy and green energy will be maintained.

While in HCM City, PM Bettel attended and delivered a speech at a Vietnam - Luxembourg business forum, visited the Ho Chi Minh Stock Exchange, and the War Remnants Museum, and found out about climate change impacts in the area along Sai Gon River.

Deputy PM receives leaders of Chinese, Japanese companies

Deputy Prime Minister Tran Hong Ha hosted a reception in Hanoi on May 5 for Wang Chuanfu, Chairman of China’s BYD Co. Ltd., which holds high competitive edge in the field of new technology.

With the selection of Vietnam’s northern Phu Tho province for its investment, the Deputy PM believed that the BYD Co. Ltd. will reap success.

Committing all possible support for the company, he hoped that its idea of cooperation to shift from electronics to automobile production will go smoothly, and BYD will create competitive products in international markets, targeting those with high standards. On back of Vietnam's advantages within the framework of new-generation free trade agreements, he wished that the company would contribute to driving the development of supporting industries in Vietnam.

Wang, for his part, spoke highly of Vietnam’s business environment, especially in Phu Tho province where the company plans to invest in a factory specialising in tablet computer production. BYD vows to keep renewing its technology for sustainable development in the future, he said.

As BYD will expand investment into electric automobile production and assembly with the best technology to supply the Vietnamese market and export to the Southeast Asian region, he wished for favourable conditions to complete investment procedures and quickly put the electric car production and assembling project into operation. Along with that, BYD will establish a chain of supporting industrial enterprises for the electric car project, he added.

On the same day, while receiving Honna Hitoshi, President and Representative Director of Japan’s Erex Co. Ltd., the Deputy PM hailed Erex’s decision to invest in biomass power in Vietnam, noting that biomass power has been included in Power Development Plan VIII as a fundamental renewable energy source for various projects.

He suggested Erex engage in treating solid waste and by-products in agriculture and forestry, and promoting environmental protection, afforestation and environmental treatment.

Hitoshi said Vietnam holds great potential to develop biomass power thanks to a large amount of unused agricultural and forestry by-products. In addition, biomass power also contributes to reducing emissions from coal-fired power plants with co-firing options, he said.

In the coming time, Erex will fully consider suggestions by the Deputy PM to launch projects on biomass fuel and building biomass power plants in Vietnam, he said.

Vice President meets ruler of Emirate of Ras Al Khaimah

Vice President Vo Thi Anh Xuan met with ruler of the Emirate of Ras Al Khaimah Sheikh Saud bin Saqr Al Qasimi as part of her trip to the United Arab Emirates (UAE) on May 5.

Sheikh Saud bin Saqr Al Qasimi congratulated Vietnam on its development achievements, and expressed his hope for stronger cooperation between the Emirate and Vietnam.

The host said he will assign agencies of Ras Al Khaimah to step up cooperation with Vietnam in all fields, pledging to facilitate the operations of Vietnamese investors, especially in the Emirate’s special economic zones.

Xuan said Vietnam and the UAE boast potential to strengthen their collaboration in the time ahead.

The two sides agreed to consider establishing cooperative ties between Ras Al Khaimah and Vietnamese localities, coordinate in organising cultural activities and people-to-people exchanges, step up tourism promotion, share experience in preserving historical relic sites, and cooperate in education.

The Vice President suggested relevant agencies of the two sides continue completing important legal frameworks and mechanisms such as the comprehensive economic partnership agreement (CEPA), and soon establish a Vietnam-UAE business council to enhance links between Vietnamese enterprises and those of the UEA and Ras Al Khaimah in particular.

On May 4, Xuan had a meeting with the UAE’s Minister of Economy Abdulla Bin Touq Al Marri, who spoke highly of the Vietnamese Vice President’s speech at the Global Summit of Women 2023, which took place in Dubai earlier the same day.

The UAE always keeps a close watch on developments of the Vietnamese economy, the minister said, informing that the UAE will soon send a delegation to Vietnam to seek cooperation opportunities in the Southeast Asian nation.

He also urged the two sides to push ahead with negotiations of the CEPA to create breakthroughs for their economic cooperation.

Xuan affirmed that Vietnam stands ready to create favourable conditions for foreign firms, including those from the UAE, to seek investment opportunities in the country.

She suggested the two sides soon organise the fifth meeting of the Vietnam-UAE Inter-Governmental Committee.

During her stay in the UAE, Xuan also met with the President and CEO of Dubai Chambers, one of the largest economic development arms in Dubai, and CEO of Elite Agro – the UEA’s leading company in agriculture.

JETRO suggested to help Japanese firms invest more in Vietnam

Prime Minister Pham Minh Chinh has suggested the Japan External Trade Organisation (JETRO) help Japanese firms further expand their operations in Vietnam, especially in green and digital transformation, circular and knowledge-based economy, climate change adaptation, supporting industries, innovation and technology transfer, particularly advanced, green and clean technologies.

At a reception in Hanoi on May 5 for JETRO Chairman Ishiguro Norihiko, PM Chinh thanked and highly valued JETRO’s practical and effective contributions to promoting trade and investment ties between the two countries.

According to the PM, the Vietnam - Japan extensive strategic partnership has been growing in various areas, with high political trust and closer connections between the two economies and people. Japan has continued to hold the position of Vietnam's top economic partner, the biggest partner in official development assistance (ODA), the second biggest partner in labour, the third largest partner in investment and tourism, and the fourth biggest partner in trade. Japan is also embarking on a new-generation ODA programme for Vietnam to help the country recover its economy following the COVID-19 pandemic.

As there remains huge room for bilateral economic, trade, and investment cooperation, the government leader suggested Japan and JETRO continue assisting Vietnam in building an independent and self-reliant economy that actively and effectively integrates into the world, contributing to elevating the Vietnam-Japan relationship to a new height.

He also proposed JETRO continue working with Vietnamese agencies to popularise Vietnam’s images, potential, business opportunities and incentives to major Japanese firms; train workforce and share management experience, and call on Japanese investors to join and multiply the model of "public leadership, private administration" in industrial parks.

Highlighting cultural similarities and closeness between Vietnam and Japan, the PM proposed both sides step up people-to-people exchanges and labour cooperation, particularly in vocational training and IT workforce.

As the two countries are celebrating the 50th founding anniversary of bilateral diplomatic relations this year, he asked JETRO to work closely with Vietnamese ministries and agencies to hold trade and investment promotion activities effectively and practically.

The Vietnamese Government always accompanies and offers all possible support to the business community, continues holding dialogues to listen to investors, reform administrative procedures, and deal with difficulties and obstacles faced by them, PM Chinh said, adding that political and social stability will be maintained to help investors do business for a long term in the spirit of harmonising interests and sharing risks.

Norihiko, for his part, expressed his high expectation for Vietnam’s development and the relationship between the two countries, especially in green growth and digital transformation.

JETRO highly appreciates the Prime Minister's dialogues to listen to opinions of foreign investors, including Japanese businesses, which have helped to resolve their difficulties and obstacles.

Vietnam is the only country in ASEAN where JETRO has two representative offices in Hanoi and Ho Chi Minh City, he said, adding that these are also the busiest offices of JETRO in the world, demonstrating that Vietnam is a highly attractive investment destination, especially in the context of recent disruptions in the global supply chain.

Norihiko also hoped to strengthen cooperation with Vietnam in the events celebrating the 50th anniversary of bilateral diplomatic ties and pledged to make every effort to contribute to the increasingly developing Japan-Vietnam relationship.

Tightening management of purchase and sale of e-invoices to evade taxes

In order to prevent fraud and the illegal use of e-invoices, the General Department of Taxation (GDT) has coordinated with relevant authorities to strictly handle organisations and individuals using illegal invoices.

These organisations aim to legitimise costs to reduce the amount of tax payable or to legalise purchased goods on the market to evade taxes.

Vu Manh Cuong, director of the GDT’s Tax Audit and Inspection Department, said that offenders set up many enterprises at the same time, or acquire enterprises that have been operating for a while, then registered or changed the information of the legal representative to issue invoices for a short time and stop working to avoid inspections.

"During the operation, these enterprises change their addresses continuously, when they know that the tax authorities have included them in the inspection and examination plan, they carry out procedures to temporarily suspend their operation," Cuong told Voice of Viet Nam (VOV) online newspaper.

Le Thi Duyen Hai, director of the Tax Declaration and Refund Department, said that in the process of monitoring the management of business registration and tax registration, cases which were handled by police agencies, tax agencies, and other agencies revealed that there were businesses established not for business purposes, but only for the purpose of selling invoices for profit.

GDT would urge and speed up the implementation of electronic invoices with the tax agency's code initiated from cash registers nationwide, said Pham Quang Toan, head of the GDT's IT Department.

It would also continue to support tax departments to organise the selection of lucky invoices to encourage and raise the awareness of buyers when using e-invoices in commercial transactions, he added.

At the same time, the department will upgrade the application of e-invoices to meet the decentralisation and exploitation of e-invoice data of tax authorities; upgrade and deploy risk analysis application to meet invoice risk management criteria according to GDT’s Decision No 78/QD-TCT dated February 2 this year on promulgating a set of evaluation criteria indicators, identifying taxpayers showing signs of risk in the management and use of invoices.

GDT would deploy an application to compare e-invoice data with value-added declarations in May; install configuration, and manage technical infrastructure for risk analysis according to new technology of the Risk Management Board to perform risk analysis according to artificial intelligence technology, Toan added.

Director of the GDT’s Tax Audit and Inspection Department Vu Manh Cuong affirmed that the tax agency would closely cooperate with the police investigation agency and relevant authorities such as customs and banks to strictly handle violations; as well as proactively coordinate with the police agency in investigating or transferring the dossier for handling according to regulations for taxpayers who commit violations on invoices.

High interest rate makes social home loans unattractive

The high interest rate discourages eligible individuals from taking out loans to buy social homes, according to a recent survey of HCMC residents.

Four major State-owned commercial banks – Agribank, BIDV, Vietcombank and VietinBank – have been entrusted by the central bank SBV to make soft loans available for social housing developers and buyers. However, eligible residents have shown little interest in those loans as the interest rate is 8.2% a year.

Earlier, the Government has approved a credit program worth VND120,000 billion for developing at least one million homes for the poor and workers in 2021-2030. The credit line is also meant for the renovation and construction of aging apartment buildings, available for borrowers from the beginning of April, according to the Vietnam News Agency.

The credit package is unattractive to average income earners in HCMC as the 8.2% interest rate is preventively high for them.

The interest rate for homebuyers is 1.5-2 percentage points lower than that for mid and long-term commercial loans but may change every six months depending on commercial loan rate movements. Therefore, homebuyers may face risks if commercial loan rates edge up. Moreover, the duration in which buyers of social homes enjoy such an interest rate is five years maximum.

According to the HCMC Real Estate Association (HoREA), lender banks and homebuyers would have to negotiate a new interest rate after the five-year period and this is the main reason for residents’ reluctance to borrow.

HoREA proposed the Ministry of Construction study a preferential credit package offering social home buyers an interest rate of 4.8-5% per year with a maximum term of 25 years.

Optimism rises for stellar EU investment across Vietnam

The future of EU investment in Vietnam looks promising, with many opportunities in digitalisation, renewable energy, and sustainable development.

April was a busy time for European businesses seeking new business in Vietnam, with a host of delegations searching for investment opportunities across the country.

A group of French businesses met with Phan Van Mai, Chairman of Ho Chi Minh City People’s Committee, on April 19 to seek business and investment opportunities in smart urban development and green growth.

Members of the European Chamber of Commerce in Vietnam (EuroCham), the German Business Association in Vietnam, and the Nordic Chamber of Commerce in Vietnam also gathered at a meeting with authorities in the central city of Danang to learn about investment activities in the high-tech industry on April 21.

According to Gabor Fluit, chairman of EuroCham, European investment in Vietnam is on the rise.

European companies are increasingly shifting their operations from China to Vietnam, with 42 per cent of respondents reporting such a move. This demonstrates Vietnam’s attractiveness as a top investment destination, with 35 per cent of respondents ranking it in their top five international investment destinations.

In late April, EuroCham was among business associations at a meeting with Prime Minister Pham Minh Chinh to discuss challenges faced by foreign businesses in Vietnam, with green energy transition, circular economy, and digital transformation topping the agenda. The event was held amid global economic turmoil, which has affected European enterprises and Vietnam’s investment environment.

Fluit said the conference provided them a precious opportunity to brainstorm and devise strategies to empower Vietnam to unlock its enormous potential.

Danish-backed Lego’s $1 billion investment in Vietnam is one European-invested project reflecting this trend. The company is constructing a brand-new factory in the southern province of Binh Duong that will be the first of its kind for Lego Group.

Not only will the facility incorporate cutting-edge technology and provide advanced training to employees, but it will also be the first carbon-neutral factory in the company’s history.

For member companies of the British Chamber of Commerce in Vietnam (BritCham), in addition to the traditional sectors such as financial and professional services and insurance, bilateral ties have been expanded and now take in pharmaceuticals, technology, digital transformation, climate change, and green growth.

BritCham chairman Kenneth Atkinson said, “I expect to see more investment from UK companies into renewable energy, particularly wind and solar, and a significant increase in financing through green bonds and loans, to help Vietnam on its journey net-zero by 2050.”

Meanwhile, Techtronic Industries, a multi-billion-dollar German-Hong Kong producer of power tools, has decided to invest $650 million in Saigon High-tech Park to establish a manufacturing plant and research and development centre.

Elsewhere, Messer is supplying gases to local customers such as Hoa Phat Group from its main production hubs in the northern province of Hai Duong and the south-central province of Quang Ngai. Messer boasts a charter capital amount of $228 million and more than 700 employees.

Similarly Tesa, a German company manufacturing adhesive products, has laid the foundation stone for a new plant in the northern port city of Haiphong with an investment of €55 million ($60.8 million) to create new production capacities for Asia, one of its fastest growing markets.

Other German companies investing in Vietnam include Magnetec, a producer of electric spare parts, cleaning technology firm Kärcher, and climate solutions provider Viessmann.

Elmar Dutt, co-chairman of the German Business Association, said, “Our companies will continue or expand their investment in Vietnam, as they see the country as a stable and attractive market with a large population, a young workforce, a competitive cost structure and a favourable business environment.”

The bond between Europe and Vietnam has flourished in recent years, and strong partnerships have yielded exciting success stories.

For example, EuroCham member DEEP C is a top figure in the Vietnamese industrial development scene. By establishing a massive industrial zone cluster across 3,400 hectares, it has helped turn northern Vietnam into a hub for new market entries, providing an enormous boost to the country’s economy. DEEP C’s achievements have generated countless jobs for Vietnamese citizens and have enabled the nation to thrive.

Bosch, a global supplier of technology and services, has invested more than $500 million in Vietnam since 2008, operating two manufacturing plants and one research and development centre. The company employs more than 4,000 associates in Vietnam and produces automotive components, power tools, security systems, and terotechnology products for both domestic and export markets.

Elsewhere, Adidas has been sourcing from Vietnam since 1995, making it one of its key production hubs in Asia. The company works with more than 40 suppliers in Vietnam, producing footwear, apparel, and accessories for both local and international markets. Adidas supports its suppliers to improve their social and environmental standards through various initiatives such as the Better Work, Green Company, and Fair Play programmes.

According to Vietnam’s Ministry of Planning and Investment, Vietnam attracted about $8.9 billion worth of foreign investment in the first four months of this year, down 17.9 per cent on-year. European countries invested $1.02 billion.

Raw material processors on the march

The support of major enterprises in food processing is contributing to improving the value of Vietnam’s raw material food industry, and paving the way for export activities.

Nguyen Van Thang, living in Tan Trung commune of the Mekong Delta province of Ben Tre, is part of some local households participating in an organic coconut growing project from ASIA Coconut Processing (ACP) under Asia Ingredients Group (AIG).

With a large coconut growing area, his family earns a stable income of more than VND700 million ($29,800) per year from organic coconut cultivation.

Thang said that since cooperating with ACP through a cooperative, he and the other households participating have been supported by the company with fertilisers and technical training programmes. ACP also buys coconuts at a higher price than the market, making them feel more secure.

The whole Tan Trung commune currently boasts over 2,400 coconut-growing households across 1,160 hectares. The economic value brought from coconut trees have convinced farmers to switch crops and expand production area, which means that the raw material area of ACP is also increasingly expanding.

According to Le Nguyen Doan Duy, director of Business Development at AIG, the raw material area plays an essential role in deciding the quality of the company’s products because only sustainable and high-quality raw material areas can create good products.

ACP’s coconut-based products such as coconut water, coconut milk powder, and desiccated coconut are now widely exported to markets in Europe, the US, South Korea, Japan, Australia, and more.

Vietnam is considered one of the top five food baskets in the world with a rich source of food ingredients, of which the spice industry alone has a market size of about $1.4 billion, according to data from the Ministry of Industry and Trade.

On average, each year, Vietnam exports over $1 billion of cassava and cassava-based products, and about $4 billion of fruit and vegetable products, of which 70 per cent are fresh fruits to make concentrated juices. In addition, the export turnover of coffee and cashew have reached $4 billion and $3.6 billion per year respectively. Pepper and other condiments also reach more than $1.4 billion per year.

The attractiveness of the spice market in particular has attracted the participation of many international corporations such as Unilever, Ajinomoto, and Nestlé, and created fierce competition between domestic and foreign enterprises.

By the end of 2022, there were more than 8,500 industrial-scale agricultural product processing enterprises with a total capacity of about 120 million tonnes of raw materials per year. However, not all enterprises have the capacity and experience to process for export without consulting and support from international projects.

Son Ha Spice & Flavourings is such a business. A representative of the company said that it had faced a series of challenges including increasing demands from buyers on sustainable standards that respect the environment and biodiversity.

Son Ha did not previously have experience in new standards such as Union for Ethical BioTrade (UEBT) and Rainforest Alliance (RA), and in developing a biodiversity action plan.

Over the past two years, however, with support from a UEBT project funded by the Swiss government, the company achieved a record export of UEBT-certified cinnamon worth $25 million and diversified customers in the US, EU, and Australian markets. Son Ha was also the first spice company in Vietnam to obtain UEBT/RA certification for the cinnamon value chain in the provinces of Yen Bai and Lao Cai in 2021.

More Vietnamese register to work in South Korea

Up to 23,500 Vietnamese people have registered to work in South Korea through the Employment Permit System (EPS), double the figure of last year and the highest for a decade, according to the Ministry of Labour, Invalids and Social Affairs' Department of Overseas Labour.

South Korea’s EPS needs to recruit 12,000 Vietnamese workers this year, but up to 23,500 Vietnamese people have registered.

Of the figure, 19,200 people have registered for manufacturing, followed by fisheries with 2,600 and the agricultural sector with 1,300.

The recruitment contest under EPS is scheduled in Danang from May 8 to June 10.

To be eligible for employment, people must pass two rounds of testing, including a language proficiency test and a vocational skills test. Those who tested positive for Covid-19 will not be allowed to take part in the competition.

South Korea has been a market for Vietnamese labour since 1992. Over 90 percent of Vietnamese workers were sent to the country via the EPS.

Vietnam sent roughly 9,900 Vietnamese workers to South Korea for guest work last year, with more than 8,900 people under the EPS programme.

Pilot suspended for suspected use of banned substance

An airline of Vietnam has suspended a pilot testing positive for ketamine, Deputy Director of the Civil Aviation Authority of Vietnam Ho Minh Tan said on May 5.

Talking to the Vietnam News Agency, Tan said the pilot was suspended so that the airline can take the next steps, noting an in-depth medical check is needed since an initial positive testing result could become negative later, or the person examined may use some types of medication containing certain substances subject to testing.

If this pilot used any banned substance, his license will be revoked permanently as in line with current regulations, he added.

The official went on to say that medical examination of the staff of airlines, especially pilots, is a regular activity. The CAAV also ordered increasing check-ups during major holidays or anniversaries, when the passenger volume often rises strongly.

Luxembourg media positive of Vietnam-Luxembourg cooperation potential

Over the past few days, many Luxembourg news channels have reported on the official visit to Vietnam by Luxembourg Prime Minister Xavier Bettel from May 3-5, assessing that it will contribute to further strengthening the bilateral relationship in the coming time.

The website of the Luxembourg Government - gouvernement.lu - announced that Prime Minister Bettel's official visit is conducted at the invitation of Vietnamese Prime Minister Pham Minh Chinh on the occasion of the 50th anniversary of bilateral diplomatic relations and in response to PM Chinh's visit to Luxembourg in December 2022.

Tageblatt.lu - a daily newspaper in Luxembourg - ran an article saying that Vietnam has become an attractive trade partner globally. Under the leadership of the Communist Party of Vietnam, the Southeast Asian nation has opened up to the world under reform orientation since late 1980s and has become an important economy not only in the region but also in the world.

According to the article, in terms of foreign policy, Vietnam wants to have friendly relations with all countries, while in terms of foreign relations, Vietnam relies on independence, and supports bilateral partnerships and multilateralism. Due to geopolitical uncertainties in the world, Vietnam is increasingly sought by Western companies as a new partner, including Luxembourg. The European Union-Vietnam Free Trade Agreement (EVFTA) has brought many new opportunities for Luxembourgish businesses that operate in the service and financial sectors. Currently, many Luxembourg enterprises are operating in Vietnam.

The article also highlights positive trade relations between Luxembourg and Vietnam in recent years including bilateral trade reaching more than 160 million euros (about 179 million USD) in 2022, up from 120 million euros in 2020.

In another article published by the newspaper, it is said that during Prime Minister Bettel's visit to Vietnam, the two sides signed many bilateral cooperation agreements, including those on aviation cooperation, the extension of an agreement to avoid double taxation, and cooperation against climate change through green funds. Luxembourg Agency for Development Cooperation (LuxDev) will launch two projects worth 2 million euros in Vietnam. Luxembourg-based airline Cargolux will soon receive a license to fly to Ho Chi Minh City besides Hanoi.

The article quotes Prime Minister Bettel as expressing optimism about the possibility that Luxembourg tourists in the future can enter Vietnam without a visa when the National Assembly of Vietnam considers extending the visa-free policy at its meeting late this month.

Luxembourg's online newspaper virgule.lu has just published an article about the prospect of Vietnamese electric vehicles entering the country's market. The article said Prime Minister Bettel and Minister for Small and Medium-Sized Enterprises and Minister for Tourism Lex Delles visited Vinfast's facility and experienced test driving its electric vehicles.

Other Luxembourg newspapers such as Today.RTL.lu, diegrenzgaenger.lu also reported on Bettel’s visit to Vietnam.

Vietnam, Japan cooperate in addressing human resources issues

Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung and Japan’s Minister of Health, Labour and Welfare Kato Katsunobu compared notes on labour-related issues during their working session in Hanoi on May 5.

Dung suggested Japan amend legal regulations to create a more favourable work environment for both local residents and foreigners, with their rights to income, insurance and social welfare ensured.

The minister expressed his hope that the two sides will actively prepare for professional skill and foreign language exams for interns and employees under Japan's “specified skilled workers” programme.

He called on the Japanese side to offer more incentives to Vietnamese nurses and caregivers who work in the country under the Vietnam-Japan Economic Partnership Agreement (VJEPA).

For his part, Katsunobu said Japan is working on amendments to current legal regulations relating to the programme receiving foreign trainees and workers, during which more attention has been paid to technical transfer and quality personnel training.

Host and guest agreed to regularly exchange experience during cooperation between the two ministries, and work together in handling human resources development issues in the time ahead.

Vice President addresses Global Summit of Women 2023

Vietnamese Vice President Vo Thi Anh Xuan attended and addressed the opening of the Global Summit of Women 2023 themed “Women: Leading a New Climate of Change” in Dubai, the United Arab Emirates (UAE) on May 4.

In her speech, Xuan lauded the theme of this year's event, saying it contributes to encouraging women around the world to unleash their potential, grasp trends, proactively learn to succeed, and contribute to the society in the context of major changes in the world due to global challenges intertwined with strong changes towards sustainable development, green and inclusive growth, and digital transformation.

She suggested focusing efforts on and creating favourable conditions for women to bring into play their potential and contribute to the society, particularly emphasising the need to ensure a global environment of peace, stability, and cooperation for development, enhancing multi-level cooperation among countries, organisations, and businesses in empowering women economically.

The Vietnamese leader also highlighted the development of education and training in science-technology, engineering, and maths as a fundamental factor to promote women's participation and readiness in the era of digital transformation and knowledge-based economy. At the same time, it is necessary to integrate gender issues and empower women in building and implementing socio-economic development policies, she stressed.

Sharing Vietnam’s important achievements in gender equality and women empowerment, Xuan said the proportion of female deputies in the National Assembly is 30.3% while the rate of women-owned businesses reaches 29.8%, ranking sixth among countries with the highest proportion of female entrepreneurs. Vietnamese women are also contributing to addressing global challenges, with female officers and soldiers participating in the UN peacekeeping missions, she said.

Vietnam's policies have been creating favourable conditions for women to do business, encouraging them to join in fields such as science, technology, engineering to unleash their strengths and entrepreneurial spirit, the Vice President said.

During the summit from May 4-6, the Vietnamese delegation will actively join in plenary and thematic sessions covering various practical topics, including assessing new challenges and trends in different regions and the world, gender equality in the workplace, the role of women in addressing climate change, digital transformation, and ensuring gender equality metrics.

Established in 1990, the Global Summit of Women has become a major annual international forum on gender equality. It brings together politicians and business leaders from all over the world to share ideas and promote initiatives aimed at encouraging women's contributions and enhancing their roles in all aspects of social life, particularly in economy.

2023 policy forum for youth employment held online

The 2023 policy forum on youth employment was held via videoconference on May 5, linking with 67 locations nationwide, on the occasion of the Workers’ Month 2023.

The event was co-organised by the National Youth Committee of Vietnam, the National Assembly’s Culture and Education Committee, the Ministry of Labour, Invalids and Social Affairs (MoLISA) and the Central Committee of the Ho Chi Minh Communist Youth Union (HCYU).

Speaking at the opening ceremony, MoLISA Deputy Minister Le Van Thanh said the Government and Prime Minister have issued a number of mechanisms and policies in support of employment for youths.

As a result, there are around 10.8 million young workers, accounting for 21.4% of the country's workforce at present. Over 29.3% of them have received training and hold degrees or certificates. The young labour structure continues to shift in a positive direction, with 69.2% of young people working in the industrial and service sectors.

However, Thanh also admitted the shortage of specific employment policies for disadvantaged and vulnerable young people while the resources for youth employment support projects remain limited.

The unemployment rate among youths, especially the 15-24 age group, continues to be a challenge for Vietnam's economy (7.61% in Q1/2023 - 3.38 times higher than the overall unemployment rate of the country, 2.25%). On average, one in ten young people is unemployed. The number of young workers currently employed is three times more likely to lose their jobs than older age groups, he added.

First Secretary of the HCYU Central Committee Bui Quang Huy said dealing with employment issues for workers and youths in particular is one of the top priorities of Vietnam during its socio-economic development.

Delegates at the event discussed the Party and State’s policies and guidelines on youth employment, employment policies for rural and urban young people, the disabled and ethnic minority groups, as well as relevant suggestions amid post-COVID-19 context and the fourth industrial revolution, among others.

Vietnam, India look to enhance defence cooperation

Deputy Defence Minister Sen. Lieut. Gen. Hoang Xuan Chien on May 5 hosted a reception in Hanoi for the Indian Defence Attache, Col. Dheeraj Kotwal.

He said that on the basis of traditional friendship and comprehensive strategic partnership, the Vietnam-India defence cooperation has been steadily consolidated and strengthened, achieving practical results.

The Vietnamese military chief praised the effective coordination between the relevant agencies of both sides in realising cooperation contents on the ground of signed documents and agreements, Chien noted.

Exchange activities and cooperation mechanisms are developed in a flexible manner, achieving concrete and outstanding results in various fields such as human resources training, effective implementation of aid packages, and credit from the Indian government to the Vietnam Ministry of National Defence. Cooperation between combat forces, collaboration in defence industry and United Nations peacekeeping, and mutual support in multilateral forums are also part of the planned activities between the two countries.

The official expressed his belief that Col Kotwal will closely coordinate with relevant agencies of the Vietnamese Ministry of National Defence to effectively implement the cooperation contents that have been agreed upon by the leaders of the defence ministries. This falls in line with the Joint Vision Statement on defence partnership towards 2030, which focuses on such activities as cooperation in defence industry, UN peacekeeping, cyber security, maritime security and transfer of used boats.

The Indian Defence Attache emphasised that bilateral defence cooperation is one of the bright spots in the relationship between the two countries.

Col. Kotwal affirmed that in his position, he will make important contributions to promoting the development of the traditional friendship and comprehensive strategic partnership between the two countries in general, and defence cooperation in particular.

Vietnamese, Cambodian Deputy PMs meet ahead of SEA Games 32 opening

Deputy Prime Minister Tran Luu Quang, who is in Phnom Penh for the opening ceremony of the 32nd Southeast Asian Games (SEA Games 32), paid a courtesy call to Cambodian Deputy Prime Minister and Minister of Defence Samdech Tea Banh on May 5.
Quang congratulated Cambodia on the achievements that the country has gained so far, expressing his belief that the country will continue to attain new successes during its national construction.

Showing his impression at the rapid changes of Phnom Penh, Quang said he believes the SEA Games 32 and the 12th ASEAN Para Games, slated for June, will be a success, contributing to enhancing the role and position of Cambodia in the region and the world and building an ASEAN Community of peace, stability, solidarity and prosperity.

He said that by sending a sports delegation with a record number of over 1,000 to compete in 30 out of 36 sports at the SEA Games 32, Vietnam shows a high sense of responsibility and strong support to Cambodia in particular and ASEAN in general.

For his part, Cambodian Deputy PM Samdech Tea Banh, who is also President of the Cambodia SEA Games Organising Committee (CAMSOC), spoke highly of the Vietnamese Deputy PM’s attendance at the SEA Games 32’s opening ceremony on May 5 as well as Vietnam’s enthusiastic participation in the biggest regional sports event. He said that Cambodia hopes to leave a historical imprint on the SEA Games after 60 years of its development.

Recalling the success of Vietnam as host of the SEA Games 31 and highly valuing Vietnam’s experience sharing with and positive support to Cambodia during the organisation of this year's event, Samdech Tea Banh affirmed that Cambodia will provide best conditions for the sport delegations from Vietnam and other countries, including free accommodation and meals for all delegations and broadcasting rights.

Sharing pleasure at the sound neighbourliness, traditional friendship, comprehensive and sustainable partnership between the two countries, the two Deputy PMs said they believe that the two sides will effectively implement agreements reached among ministries, sectors and localities.

They agreed to continue maintaining political exchange, while strengthening cooperation in economy and trade as well as other areas such as people-to-people exchange, especially through tourism and sports activities, thus contributing to reinforcing the traditional friendship between the two countries and promoting solidarity among ASEAN countries.

The two sides also concurred to continue strengthening collaboration and mutual support at regional and international forums, thus enhancing ASEAN's solidarity and central role.

State leader commemorates late President Ho Chi Minh in London

President Vo Van Thuong and a high-ranking delegation of Vietnam laid a wreath at a plaque commemorating late President Ho Chi Minh at New Zealand House on Haymarket street in London on May 5 morning (local time) as part of his trip to the UK to attend the coronation of King Charles III.

The delegation expressed gratitude to President Ho Chi Minh and reviewed his overseas journey for national salvation. Though his stay in the UK was not long, it helped form his political thought.

Vietnamese Ambassador to the UK Nguyen Hoang Long said President Ho Chi Minh’s stay in the UK laid a foundation for the friendship between the two countries. The historical relic site at the New Zealand House and some other places linked with him in London are important to helping British and international friends learn about the history and the struggle for national liberation of Vietnam and also promote the two countries’ friendship.

Long also described the late leader’s patriotism during the national salvation journey as a great example for young Vietnamese in the UK to follow.

The 19-storey New Zealand House on Haymarket, located at the centre of London, was built on the ground of Carlton Hotel, a luxury hotel operating from 1899 to 1940, where the late leader of Vietnam worked as a kitchenhand.

The facade of this building is attached with a blue plaque of the UK - Vietnam Friendship Association reading: “Ho Chi Minh (1890 - 1969), founder of modern Vietnam, worked in 1913 at the Calton Hotel which stood on this site.”

Many other places in London were also associated with President Ho Chi Minh during that time, including Drayton Court Hotel, Soho Square, and Marx Memorial Library.

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