Experts from top real estate consulting companies in Vietnam have expressed optimism about development prospects of the real estate market, particularly regarding the office and industrial segments.

According to Savills Vietnam, despite numerous challenges, the interest of foreign investors in the Vietnamese market in general and real estate in particular continues to expand. Fitch Ratings recently upgraded the country’s long-term national credit rating from BB to BB , with a "stable" outlook. In 2024, Vietnam's GDP growth rate is expected to reach 6-6.5%, thanks to stable foreign direct investment (FDI) and the Government’s efforts to address real estate challenges, increase public investment, and implement growth stimulation policies in a timely manner.

About 85% of the rapidly growing companies in Vietnam are committed to the environmental, social, and corporate governance (ESG) standard, creating an increase in demand for green-standard office space in the market. By 2026, Ho Chi Minh City is expected to provide 300,000 more square meters of new Grade A office space, such as The Nexus project or VP Bank Saigon Tower. Moreover, over 80% of the future Grade A and Grade B office supply in the southern economic hub will meet green standards.

Meanwhile, between now and 2026, Hanoi will see 15 new projects offering over 389,770 square meters of working space, with Grade A offices expected to account for 86% of the future supply. Green space is projected to constitute 18% of the future office floor area in the capital.

In recent times, many legal regulations have been passed, such as the amended real estate business law, amended housing law, and amended land law.

The head of the Hanoi and Danang offices at Savills Vietnam, Matthew Powell, described the passage of these laws as a positive signal for investment in the real estate market this year, boosting investor confidence.

Managing Director at Knight Frank Vietnam Alex Crane also called the amended land law a step forward for the market in the long term that contributes to the improvement of related legal regulations.

Highlighting the bright future prospects of the industrial real estate, Crane noted that the supply of ready-built factory space for lease has tripled since 2016.

Domestic, international experts review Vietnam’s 30-year development

Domestic and international scholars and economists on February 22 attended a discussion in Hanoi to review the socio-economic development of Vietnam in the last 30 years and propose measures for the country to respond to new challenges in the coming time.

The event was held by the National Economics University (NEU) and Japan’s National Graduate Institute for Policy Studies (GRIPS).

At the event, domestic and international speakers presented their views on Vietnam's development situation over the past 30 years and analysed the shortcomings and problems of the economy.

They also examined Vietnam's development policies, shared the experiences of countries in the region in building and implementing development policies, and suggested policies for the Government, and the Vietnamese business community to respond to new challenges.

According to participants, 2024 – 2030 is a decisive period for Vietnam to transform itself into an industrialised country following Vietnam's economic and social development strategy for the 2021 – 2030 period. Development opportunities are opening up for Vietnam, especially under the impacts of globalisation, international economic integration, and the fourth industrial revolution.

NEU Rector Professor Dr. Pham Hong Chuong said that to become a developed country with high income by 2045, Vietnam’s economy must achieve an average growth rate of 7% yearly over the next 20 years.

According to him, the country’s future is shaped by several major trends including the 4.0 Industrial Revolution, digital technology, and Artificial Intelligence. They bring both advantages and challenges for the country, he said, adding that political instabilities and conflicts in parts of the world also pose unprecedented challenges and can hinder the development process of the world and Vietnam as well in the coming time.

Professor Kenichi Ohno from the GRIPS assessed that Vietnam's labour productivity is at a moderate level, without a breakthrough in productivity. Moreover, many foreign-invested enterprises consider Vietnam a place to carry out simple processes rather than high-tech design and production, which makes Vietnam heavily dependent on FDI to export and transform its economic structure, he said, suggesting that Vietnam needs to improve its leadership capacity and further promote technology and innovation.

Vietnam becomes Singapore’s 10th largest trading partner

Vietnam became the 10th largest trading partner of Singapore in January, with two-way trade turnover reaching over 2.9 billion SGD (2.16 billion USD), up 18.08% over the same period last year, according to the Vietnam Trade Office in the island nation.

In particular, Vietnam was Singapore's 8th export market with a turnover of 2.23 billion SGD, an increase of 14.79% year-on-year. It was the 17th largest import partner of Singapore with a turnover of 678.8 million SGD, up 30.34%.

According to the trade office, most of Vietnam's exports to Singapore enjoyed growth in January. Among them, iron and steel increased more than 30 times while salt, sulfur, soil and stone, lime and cement rose by 1.22 times; and animal-vegetable oils and fats by 85.32%. The group with the largest export turnover was machinery, equipment, mobile phones, components and spare parts, which expanded by 50.62% to 255.2 million SGD.

Among Vietnam's imports from Singapore, the group with the largest import turnover was machinery, equipment, mobile phones, components and spare parts, which reported a year-on-year surge of 19.82%. The remaining groups saw a growth of over 20%.

To promote exports to Singapore, the office will continue to update the policies and import-export situation of the island nation, facilitate trade connections between companies of both countries as well as assist Singaporean firms in exploring sources of goods and investing in Vietnam.

Vietnam promotes economic, trade, investment cooperation with Central Asian countries

The Ministry of Industry and Trade (MoIT) will take measures to promote economic, trade and investment cooperation between Vietnam and five Central Asian countries (C5) of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

According to the ministry, those countries have good traditional friendship relations with Vietnam and leaders of the two sides have paid much attention to promoting their cooperation. However, Vietnam-C5 economic, trade, and investment cooperation are still modest despite their great potential.

Meanwhile, C5 is emerging as a region of geopolitical and geo-economic importance in the world and many large economies such as the US, China, Russia, Turkey, and the EU are promoting their cooperation with it.

Building and implementing comprehensive solutions to promote economic trade and investment cooperation between Vietnam and C5 countries is essential, the ministry said.

In a recent notice, the ministry asked relevant departments and agencies to implement measures including perfecting the legal framework for economic-trade cooperation between Vietnam and C5 countries, developing a project on economic and trade promotion, holding meetings at ministerial and deputy ministerial levels, and enhancing the work of the intergovernmental committee mechanisms with Kazakhstan and Uzbekistan.

For Kyrgyzstan, Tajikistan, and Turkmenistan that currently do not have an intergovernmental committee mechanism with Vietnam, it is necessary to study an economic and trade consultation mechanism to agree on cooperation frameworks between the two sides. 

The MoIT will coordinate with the Ministry of Agriculture and Rural Development and relevant establishments to work towards conclusion of agreements in the field of plant and animal inspection, and mutual recognition of product quality certificates to support Vietnam's export activities to C5 countries.

The ministry will provide information on C5 countries to Vietnamese businesses and assist in seeking suitable and safe payment methods for trading with partners in this region.

In addition, the Department of Trade Promotion under the MoIt was asked to preside over and coordinate with research units to annually organise trade and investment promotion delegations to attend large and prestigious fairs, exhibitions, and seminars held in C5 countries. Vietnam will boost promotions for Vietnamese industries, brands, and products to C5 businesses and consumers.

MoMo remains most popular e-wallet in Vietnam

MoMo has solidified its position as the most popular e-wallet in Vietnam for two consecutive years, according the Fintech Industry Rankings 2023 announced by Viettel’s information monitoring and analysis system on the network environment (Reputa).

Following its impressive performance in 2022, MoMo continued to take the lead in the rankings with a total score of 138.23, or 2.5 times higher than VTCPay, which came second in the list.

Although MoMo's total score showed a slight drop compared to 2022, but the brand has become more popular among Vietnamese consumers seeking convenient and secure digital transactions.

Nguyen Ba Diep, co-founder of MoMo, attributed the success to the continuous efforts made by the company to improve its user interface and expand and enhance the features and utilities of its super app platform.

Alongside its commitment to cashless payments, MoMo has been at the forefront of providing investment, accumulation, and savings services, catering to the personal financial needs of the Vietnamese population, he said.

Following MoMo were VTC Pay, VNPay, ZaloPay and Viettel Money. Meanwhile, the five most popular e-banks were Vietcombank, Timo, MB, Techcombank, and Vietinbank.

Moreover, as Vietnam embraces the digital revolution, a fascinating trend has emerged with the rapid rise of QR-code based payments, e-wallets, and digital banking applications, igniting a cashless revolution across the nation.

Numerous users have voiced their preference for e-wallet payments, citing the alluring discounts and vouchers they receive as key factors.

Companies increase deposit amounts to maximise interest earnings

Due to challenging business conditions and high deposit interest rates earlier this year, many companies were quick to increase their deposit amounts to earn interest.

As of the end of 2023, Mobile World Investment Corporation (MWG) held 24.3 trillion VND (990.4 million USD) in cash and cash equivalents.

MWG increased its cash holdings amid difficulties faced by its retail chains, The Gioi Di Dong and Dien May Xanh, due to weak consumer demand and fierce competition. This strategy contributed to the company's financial revenue reaching 2.16 trillion VND for the whole year of 2023, a 65% increase compared to 2022. After deducting financial costs of 1.55 trillion VND, MWG achieved a net profit of over 600 billion VND from this segment, which helped the company escape losses.

Petrovietnam Gas JSC (GAS) owned the largest cash amount on the stock market as of December 31, 2023, reaching 40.7 trillion VND (approximately 1.7 billion USD). This figure increased by over 6 trillion VND since the beginning of the year and continued to rise by more than 700 billion VND compared to the end of the third quarter of 2023. With such a massive cash reserve, PV Gas earned 2 trillion VND in interest from deposits in the past year, a 67% increase compared to the previous year. This translates to a daily interest income of 5.5 billion VND from bank deposits. Meanwhile, the company's interest expenses for the entire year amounted to only 340 billion VND.

Over the past year, Binh Sơn Refining and Petrochemical Company Limited (BSR) also recorded a significant increase of 52% in financial revenue compared to the same period, reaching 2.66 trillion VND. This was mainly due to nearly 1.6 trillion VND in interest from deposits and over 1.05 trillion VND in exchange rate differences. BSR held a cash balance of 38.12 trillion VND at the end of the year, an increase of approximately 13.1 trillion VND compared to the beginning of the year.

After divesting from PGBank, Vietnam National Petroleum Group (PLX) experienced a strong 60% increase in cash compared to the beginning of the year, reaching nearly 30 trillion VND. The company generated 2.74 trillion VND in financial revenue in 2023, a 27% increase compared to the same period. This included 1.17 trillion VND in interest from deposits and loans, a 35% increase. Conversely, interest expenses also rose sharply by 40% compared to the same period, reaching over 900 billion VND.

The Airports Corporation of Vietnam (ACV) reported a cash balance of nearly 28.8 trillion VND, a decrease of over 4 trillion VND compared to the beginning of the year. The company earned more than 1.6 trillion VND in deposit interest throughout 2023, the same as in 2022. The interest expense was only about 67 billion VND as ACV had minimal short-term borrowings (410 billion VND). The long-term debt of over 10 trillion VND mainly came from ODA sources with low-interest rates.

FPT Corporation (FPT) recorded a cash balance of 24.38 trillion VND at the end of 2023, an increase of nearly 4.9 trillion VND over the year. Deposit interest income in 2023 amounted to over 1.64 trillion VND, a 22% increase compared to the previous year. The interest expense was 832 billion VND.

The Vietnam Dairy Products Joint Stock Company (Vinamilk or VNM) held over 23 trillion VND in cash. The company earned over 1.5 trillion VND in deposit interest in 2023, a 28% increase compared to 2022. Meanwhile, the interest expense amounted to only 354 billion VND.

The Viettel Global Investment Joint Stock Company (Viettel Global or VGI) also had over 23 trillion VND in cash, an increase of more than 6 trillion VND since the beginning of the year. The company earned over 1.2 trillion VND in deposit interest in 2023, a 38% increase compared to the same period. Conversely, interest paid on loans was only 375 billion VND.

Saigon Beer-Alcohol-Beverage Corporation (Sabeco or SAB) reported 22.8 trillion VND in cash, a 3% decrease compared to the beginning of the year. With a significant deposit amount, Sabeco earned nearly 1.4 trillion VND in deposit interest in 2023, a nearly 36% increase compared to 2022. The interest expense was only 50 billion VND as the total debt was only 700 billion VND.

Phone and component exports surge during Tet

Phone and components recorded the largest export value of US$282.8 million during the first days of Lunar New Year, known locally as Tet, according to statistics compiled by the General Department of Vietnam Customs.      

Specifically, from February 8 to February 14, Vietnam saw more than 1,000 Vietnamese enterprises get involved in the import and export of goods.

In line with this, total trade turnover reached US$1.41 billion, of which export and import value hit US$0.73 billion and US$0.68 billion, respectively.

Phone and components took the lead with turnover reaching US$282.8 million; followed by computers, electronics, and components with US$263.6 million; and machinery and equipment products at US$54.4 million.

During Tet, Vietnamese goods have made a presence in 77 countries and territories around the world, of which the US has become the largest consumer with a turnover of US$220.7 million, duly accounting for more than 30% of the total export value, followed by China with US$186.9 million, and the Republic of Korea with US$71.2 million.

Statistics indicate that from January 1 to February 14, the country’s total trade turnover surged by 17.1% to reach US$82.56 billion compared to the same period last year.

Of the figure, exports soared by 21.6% to nearly US$43.83 billion, while imports edged up by 12.4% to US$38.73 billion. Since the beginning of the year to the end of February 14, the nation enjoyed a trade surplus of US$5.1 billion.

With these positive outcomes, the nation is anticipated to increase export turnover by 6% this year. The Ministry of Industry and Trade revealed that it will continue to boost trade promotion activities, support businesses in diversifying markets, and speed up the completion of procedures to sign free trade agreements like the Comprehensive Economic Partnership Agreement (CEPA), the ASEAN Trade in Goods Agreement  (ATIGA), and the ASEAN-Canada Free Trade Agreement  (ACAFTA) over the coming time.

OCOP products bring about dual benefits

The One Commune One Product (OCOP) Programme has no longer been a pure poverty reduction measure for rural areas, but an important boost for Vietnamese agricultural products, connecting other industries for mutual development, thus bringing dual benefits for rural areas, according to experts.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that OCOP products have contributed to shifting thinking from agricultural production to production associated with business, especially linking agricultural development with economic, service and tourism development of localities.

According to statistics of the Ministry of Agriculture and Rural Development, the country has over 10,800 OCOP products rated three stars or higher from over 5,600 OCOP entities, of which 37.9% are cooperatives, 24% are enterprises, 35.2% are production establishments/business households, and the remainder are cooperative groups.

The Mekong Delta region has more than 2,000 three-to-five-star OCOP products, led by Dong Thap province with 357 products.

Localities in the region have had many strategies linking OCOP products with tourism to create a dual economic advantage based on their specific characteristics.

Chairman of the People’s Committee of Dong Thap province Pham Thien Nghia said that local OCOP products have gradually entered modern distribution channels such as supermarkets or shopping centres. Dong Thap is also promoting community-based tourism products and OCOP products, craft village ones, and cultural festivals to create a highlight to attract tourists.

Tourism models combined with agriculture are operating quite effectively, helping to lengthen the value chain, increase the value of agricultural products, create more jobs in rural areas, and bring stable income to farmers.

Similarly, Can Tho city also considers the OCOP programme as one of the major agricultural and rural economic programmes that clearly demonstrates the role of multi-value integration in the agricultural sector. Currently, the city has 92 three- and four-star OCOP products.

To create favourable conditions for these products to develop, the city has brought them into tourist attractions, hotels, restaurants to make them closer to tourists.

Cashew harvest begins in Bình Phước Province

The early days of lunar year mark the beginning of cashew harvest in the south-eastern province of Bình Phước.

Bình Phước Province is known as the capital of cashews, and has fertile red basalt soil that helps cashew plants grow well and have delicious quality.

In the border district of Bù Gia Mập, which has a large area under the crop in the province, the harvest has begun.

Điểu Thân of Phú Nghĩa Commune said his family's cashew farm already had ripe fruits before the Tết holidays, and after harvesting his family also helped pick on other farms to earn an extra income.

Hùng Lộc's family in Đức Hạnh Commune has been harvesting its cashew farm since February 15.

It owns over four hectares of cashew trees aged 15-25 years and another hectare of grafted cashew trees aged five years old, both ready for harvest.

Hùng said: "Since this is the beginning of the season, there are relatively few fruits. If the weather remains favorable in early March, most of the cashew will ripen."

But cashew prices are lower than in previous years.

According to Điểu Hồng Khanh, another farmer in Đức Hạnh, his family harvested over 200kg of fresh cashew nuts but only managed to sell them for around VNĐ24,500 (US$1) per kilogramme compared to over VNĐ26,000 last year.

Binh Phước has over 152,000ha under cashew, or nearly 50 per cent of the country’s total area.

It also has over1,400 cashew processing facilities that provide regular employment to more than 50,000 local and non-local workers.

Cashew farming is concentrated in the districts of Bù Đăng, Bù Gia Mập, Phú Riềng, and Đồng Phú. 

Businesses lukewarm towards new annual land use payment option

Business communities have shown tepid reception towards yearly lease payments for land use to the State, a notable change in the recently revised Land Law, said industry insiders and economists.

The scope of the amendment covers economic organisations, individuals, overseas Vietnamese and foreign-invested companies currently leasing land with a one-time payment for the entire lease period.

Previously, businesses had only one option: a one-time payment for the entire lease period. The amended law now allows businesses to pay annually. Those who already made their one-time payments for the lease are offered the option to switch to the new system.

For reference, Việt Nam's 2013 Land Law permitted businesses and individuals to switch from annual land lease payments to a one-time payment for the entire lease period while the reverse conversion from a one-time payment to annual payments was not made available.

Economists supporting the amendment said the provision better supports businesses and adjusts revenue to favour long-term benefits from land use. Paying annual land-use fees can help investors ease financial burdens during the initial project implementation phase.

In addition, it provides an opportunity to adjust property prices and enhance the quality of completed products.

A representative from the Vietnam Real Estate Brokers Association (VARS) said there is potential for increased revenue for the State through the added value of land over time, instead of relying on one-time payments. However, the timing of land-use fee adjustments and a reasonable calculation method should be put in place to convince businesses to make the switch.

Nguyễn Anh Quế, chairman of G6 Group, a property developer based in Hà Nội, said while the new option may benefit struggling businesses that cannot afford a one-time land-use payment, those who already paid using one-time payment method see few reasons to hop on the annual payment method.

He said businesses won't be getting refunds for the amount paid. Instead, it will be deducted from the lease term. In addition, as land use fees almost certainly will increase over the years, the amount paid under the annual method will be higher than the one-time method.

Phạm Đức Toàn, CEO of EZ Property, an office space broker in Hà Nội, said the new option essentially offers something most businesses do not want as most businesses prefer and request the one-time payment method.

Toàn said the value of land is significantly lower when paid annually compared to a one-time payment. For example, when a business made a one-time payment, the land was accounted for as fixed assets, eligible for bank collateral. However, with annual payments, only the assets owned by the business on the land can be mortgaged. Additionally, annual land lease payments, which tend to increase, will introduce additional financial risks to business operations.

Economist Đinh Trọng Thịnh said if annual land lease fees increased significantly, it could disrupt the financial and business plans of companies. In addition, businesses may worry about the restrictions imposed on the land when paying annually compared to a one-time payment.

He urged the Government to carefully study and review the pros and cons of implementing the new method, which will be essential in establishing reasonable legal policies that ensure sustainable and stable economic development.

The Land Law (revised) has 16 chapters and 260 articles. It will be effective from January 1, 2025, except for some particular articles.

Notably, it removes regulations on the Government's land price framework while stipulating principles, foundations, and methods of land pricing. Under the revised law, a land price list will be made on an annual basis. The land price list will be first announced and applied from January 1, 2026, and will be adjusted and supplemented from January 1 of the following year.

Meanwhile, the authority of land pricing will be given to the heads of the People’s Committees at the district level, according to the law. 

Hà Nội continues to support businesses to exploit new markets

The capital Hà Nội will continue to support businesses to exploit new markets by taking advantage of FTA agreements, and support businesses to complete official export documents to the Chinese market.

Data by the Hà Nội Department of Industry and Trade showed that despite many difficulties, Hà Nội's export turnover increased dramatically last year.

Total import and export turnover of goods reached over US$54.4 billion, of which exports reached $16.7 billion.

The city’s enterprises have affirmed their strong growth by playing a key role in export activities, gradually reducing dependence on FDI enterprises as export turnover reached $9.5 billion last year, accounting for a proportion of 57 per cent, up 3.7 per cent.

The foreign investment sector reached $7.2 billion, accounting for 43 per cent, down 9.6 per cent.

Accordingly, businesses strive to implement new export methods such as online trade promotion, exporting through large e-commerce platforms or foreign retail groups such as AEON, Central Retail or MM Mega Market, at the same time, promoting trade connections between Vietnamese businesses and key export markets such as the US, Japan and the EU.

Export activities through e-commerce platforms such as Amazon and Alibaba are a direction that many businesses are increasingly implementing because this helps reduce costs and shipping time, while profits can grow three times compared to traditional exports.

The Pháp luật và Xã hội (Law and Society) online newspaper quoted Trần Thị Phương Lan, acting director of the Hà Nội Department of Industry and Trade, as saying that recently, to support businesses, the department had regularly updated and published information of customs clearance situation of import and export goods at border gates, new regulations, directives and administrative documents related to export and import activities for businesses.

The city has also supported export and import businesses in the area to participate in trade promotion activities, said Lan.

The industry and trade sector would also focus on supporting craft villages to export products directly, emphasised Lan.

At the same time, the city would choose to develop a number of industries with competitive advantages and the ability to deeply participate in the global value chain.

It will also focus on developing supporting industries to become suppliers for domestic and foreign customers.

The Hà Nội Industry and Trade Department aims to raise export turnover by about 4-5 this year.

President approves disbursement extension for infrastructure project in central provinces

President Vo Van Thuong on February 20 signed a decision approving the extension of the disbursement deadline of a project on basic infrastructure for comprehensive development of four central provinces of Nghe An, Ha Tinh, Quang Binh and Quang Tri, using loans from the Asian Development Bank (ADB).

Under the decision, Agreement No.3634-VIE and Agreement No.3635-VIE (COL) related to the project will be amended on the basis of the Government’s request to extend the implementation time to September 30, 2025.

The ADB had committed to providing loans of 52 million USD (Agreement No.3634-VIE) and 97 million USD (Agreement No.3635-VIE (COL) for the project.

The extension of the disbursement deadline allows management agencies to continue to use the ADB's concessional loans, promoting socio-economic development in the target localities.

Experts optimistic about Vietnam’s economic outlook in 2024: British journal

The UK’s magazine The Banker has run an article highlighting optimistic opinions of experts on Vietnam’s economic outlook in 2024.

Vietnam saw gross domestic product growth of 5.1% in 2023, which is forecast to rise 6–6.5% in 2024, making Vietnam one of the strongest growth environments in Southeast Asia, the article noted.

The article quoted Khanh Vu, Deputy Managing Director at VinaCapital Fund Management as saying that the pick-up in GDP growth will be driven by rising exports and manufacturing, tourism, and a modest recovery in domestic consumption and consumer sentiment. Economic growth has also been supported by a favourable interest rate environment, he added.

Helmi Arman, economist at Citi, a US-based financial service company, said that after a freeze in early 2023, activity in the real estate sector has picked up in the second half of the year. The government is pushing through structural reforms that lay the foundation for a more sustainable recovery in the real estate sector.

The article underlined that for international investors, Vietnam’s manufacturing sector remains the most appealing, specifically in the smartphone supply chain and for consumer electronics. For domestic investors, garment, footwear, and furniture exports are gaining the most interest.

Both Vu and Kenglin Tan, senior portfolio manager, equities at Manulife Investment Management, showed optimism about Vietnam’s export prospects thanks to signs of stabilisation.

There was some trepidation that Vietnam’s decision to implement the global minimum tax rate would impact investment flows, but this has not transpired, Tan said, adding that from a foreign investor perspective, whether they invest in Vietnam or other countries in the agreement like Mexico or Thailand, they are impacted by the same policy. It can be seen from FDI flows in December 2023 after the policy was announced, that investors have not been deterred at all, she underscored.

There has also been a surge in interest in the FDI space. Vu noted that the Republic of Korea has pledged its support in investing in Vietnam, stating plans to exceed 100 billion USD in total investment by 2025. To date, the country has invested 84 billion USD into Vietnam. The focus is on manufacturing, with 62 billion USD invested into more than 4,600 projects, with large manufacturers including Samsung, LG and SK. A major project benefiting from FDI support is Long Thanh International Airport, being constructed close to Ho Chi Minh City, the expert stated, underlining that FDI support for the project has come from the US, Japan, France, Turkey, and the Netherlands. 

To further extend the potential for international investment, Vietnam is opening up its stock market settlements by allowing domestic brokers to vouch for foreign investors, enabling them to purchase shares. Arman says allowing greater levels of foreign ownership could mitigate against future shocks.

In the field of tourism, the experts noted that the sector is at 70% of pre-COVID-19 levels, but domestic tourism is booming. Chinese tourists were 30% of their pre-COVID-19 levels last year.

The article cited a report from data company Vietnam Report JSC finding 66% of respondents in the tourism and hotel sector expressing confidence for 2024. Of the respondents, 93% stated the new visa rules would be a lever for the country’s tourism growth trajectory, according to the report.

Thai property developer Central Pattana sets up new subsidiary in Vietnam

Central Pattana, a member of Thailand's leading multi-industry corporation Central Group, has officially established a new subsidiary in Vietnam to take advantage of business opportunities in the local market.      

The CPN Global Vietnam has a charter capital of VND20 billion with 100% of shares being held by CPN Global which operates in the field of real estate management.

Chanavat Uahwatanasakul has been appointed director of the CPN Global Vietnam.  

According to the company’s website, Central Pattana is Thailand's leading retail property developer that has listed shares on the Stock Exchange of Thailand (SET) since 1995. Currently, it owns and manages nearly 40 high-end shopping malls, 10 office buildings, and five hotels with a total rental area exceeding 2.3 million square metres, as well as 28 apartment buildings.

The company is a subsidiary of Central Group which is owned by the Thai billionaire family Chirathivat.

Vietnam works on Brazilian halt to Tilapia imports

The Vietnam National Authority for Agro-Forestry-Fishery Quality, Processing and Market Development (NAFIQPM) has taken the first step after Brazil decided to suspend importing Tilapia from Vietnam.

NAFIQPM said it had received a notice dated February 14, 2024 from the Brazilian Ministry of Agriculture, Livestock and Food Supply (MAPA), saying Brazil has suspended tilapia imports from Vietnam as from February 14 due to health risk concerns.

MAPA says it is concerned about the potential introduction of the TILV virus and the use of polyphosphate to artificially increase the weight of fish fillets.

In response, NAFIQPM requested that seafood processing facilities eligible for exports to Brazil stop exporting Tilapia to the Brazilian market on MAPA’s request as from February 14, 2024.

It also asked the businesses to proactively update, examine and properly implement regulations with regard to fish farming and processing for export to the Brazilian market.

HCMC invites bids for operating 17 bus lines to Metro Line 1

HCMC is inviting tenders for the operation of 17 non-subsidized bus lines that will connect to Metro Line No. 1.

The HCMC Management Center of Public Transport has categorized the 17 bus lines into four packages. The contracts will be valid from July 1, 2024 to June 30, 2026.

This bidding aligns with the city’s investment policy to enhance accessibility and connectivity of public transportation with the stations of Metro Line No. 1, which is expected to be put into commercial service in July this year.

The city plans to develop technical infrastructure to facilitate passenger transportation between bus stops and the 11 stations of the metro line between Ben Thanh Market in District 1 and Suoi Tien Theme Park in Thu Duc City. This development requires over VND93 billion, funded by the local budget.

Metro Line No. 1 is now 97.5% complete.

Bids invited for key packages of Long Thanh airport project

The Airports Corporation of Vietnam (ACV) is inviting tenders for some key contract packages of the Long Thanh International Airport project.

The packages open for bidding in the first and second quarters of this year include various components, including the construction of aircraft landing facilities, internal roads and jet fuel supply infrastructure.

Package 4.7 on construction and installation of equipment for aircraft landing and other associated facilities has already received approval for technical design and is currently in the contractor selection process. ACV plans to start work on this package in April this year, with completion scheduled within two years.

Package 4.8, which involves the construction, installation, and preparation of drawings for internal roads and technical infrastructure, is awaiting approval for drawings and in the contractor selection process. The timeline for this package aligns with that of the previous one.

Bidding invitations will also be extended for Package 4.9, which entails the construction and installation of equipment for fuel supply, within the initial months of the year.

The construction and installation of equipment for cargo terminal 1 and its associated projects, known as Package 7.8, will call for tenders in the first and second quarters of the year. Work on this project is set to commence in June and be completed by May 2026.

Another package involves the construction of a parking lot, expected to commence in June this year and be completed within two years.

The Long Thanh airport project requires an estimated VND336,630 billion and will be developed in three phases.

SPS VN works with German partner in providing food safety information for local firms
 
The Office of the Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (SPS Vietnam) on February 22 signed a memorandum of understanding (MoU) with the Tentamus Innovation Hub of Germany’s Tentamus Group, under which the two sides will cooperate in providing technical expertise on food safety control for Vietnamese exporters.

Accordingly, the two sides will support and coordinate with each other to effectively notify contents related to hygiene, epidemiology and plant and animal quarantine to Vietnamese manufacturers and exporters, while answering their questions in order to support Vietnamese products to meet technical standards and enable them to enter markets that require high technical standards.

The SPS Vietnam Office will launch a software system to provide notifications on contents and regulations related to hygiene, epidemiology and plant and animal quarantine from WTO members, along with information on the names of active ingredients whose residue levels often exceed the maximum allowable levels of some export markets to businesses.

It will also supply consulting services to businesses to help them get better understanding and meet the requirements of import markets.

Meanwhile, the Tentamus Group will provide a software system transferring information about drafts and notices of the Vietnam SPS Office from WTO member countries to Vietnamese exporters/manufacturers in an efficient manner. The group will also participate in seminars and conferences to provide information and share solutions related to issues of food safety and animal and plant quarantine.

Tentamus Group General Director Jochen Peter Zoller said that the firm aims to help supermarkets in the EU as well as retail chains around the world find safe products from Southeast Asia, including Vietnam.

He said that the group has developed a software system to update information on pesticide residue levels in markets to Vietnamese agricultural product exporters, thus helping them meet the requirements from these markets.

SPS Vietnam Director Le Thanh Hoa said that Vietnam, as a leading manufacturer and exporter of many agricultural products such as peppercorn, rice and coffee, has high potential to export fruits and vegetables to markets around the world.

However, the lack of information about food safety, and animal and plant quarantine measures as well as technical standards of importing countries have caused  difficulties for Vietnamese producers and exporters, Hoa said, stressing that the partnership will assist domestic firms to adjust their strategies and activities in the field effectively.

Tentamus is a global testing company with presence in Europe, the UK, Israel, China, Japan, India and the US. The Tentamus Group is accredited and licensed to test, evaluate and consult on all human-related products.

VinFast to supply 600 EVs to three Indonesian businesses
 
VinFast, Vietnam’s first electric vehicle (EV) manufacturer, on February 22 announced that it has just signed a memorandum of understanding (MoU) with three Indonesian business clients to provide 600 EVs for their corporate fleets.

The MoU, which was signed at the Indonesia International Motor Show (IIMS) 2024, where VinFast had earlier introduced a complete line-up of right-hand drive electric vehicles, opens up an avenue for the Vietnamese EV maker to tap into the strong potential of the local market, and promote the green transportation development in the region.

Accordingly, VinFast will provide 600 EVs for three Jakarta-based companies, namely PT. Energi Mandiri Bumi Pertiwi, PT. Sumber Amarta Jaya and PT. Teknologi Karya Digital Nusa Tbk.

The first two EV models in A & B-SUV segments, that are opened for order, and soon to be launched on the Indonesian market, will serve the companies’ goal of expanding their respective corporate fleets, and cultivate the growth potential of the local green mobility industry.

At the IIMS 2024, VinFast captured the interest of thousands of visitors and received hundreds of reservations from individual consumers. Following its market debut, the orders from corporate clients strongly demonstrate VinFast's credibility in the Indonesian market.

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