The Trade Remedies Authority of Vietnam (TRAV) under the Ministry of Industry and Trade said that this agency has just received information about the Directorate General of Trade Remedies of India (DGTR) issuing an anti-dumping investigation questionnaire on textured tempered coated and uncoated glass products originating or imported from Vietnam.

A representative of the TRAV stated that in the anti-dumping case, Vietnamese manufacturing and exporting enterprises represent the parties involved in the case and must therefore engage in comprehensive co-operation efforts in order to prove that they are not dumping or dumping at low levels (if any).

Furthermore, in a bid to promptly respond to the case, the TRAV recommends that relevant parties carefully study the questionnaire and instructions given by the DGTR, while also preparing information and documents as required and co-operating both fully and comprehensively with the DGTR throughout the entire case process.

The TRAV also underlines the need to regularly monitor the DGTR website in order to stay updated on the scope of products under investigation, product management codes, and deadlines for submitting Questionnaire Response and case status.

In case of necessity, relevant parties can directly contact the DGTR to request clarification of the content required, especially regarding the deadline for submitting the Questionnaire Response.

An Giang rice targets US$325 million export turnover in 2024

Rice from the Mekong Delta province of An Giang has so far made its presence in 60 different markets around the world, with the locality aiming for this year's rice export turnover to reach US$325 million.       

According to a report released by the Department of Industry and Trade of An Giang province, the average annual rice cultivation area stands at about 630 thousand hectares, with the output being over four million tonnes per year, with high quality rice varieties accounting for 80% to 90% and making up roughly 10% of the country's annual rice output.

The locality has seen 14 out of 167 enterprises granted certificates of eligibility for rice export business, with an actual milling capacity of over 3.2 million tonnes per year. Currently, rice products are present and have created a positive reputation in major markets around the world.

Last year saw the province's export turnover stand at an estimated US$1.179 billion, up 2.75% over the same period from the previous year and exceeding 0.3% compared to the overall plan.

As for rice, local enterprises have exported to 60 different markets around the world with nearly 580 thousand tonnes, equivalent to US$339 million, an increase of over 9% in output and nearly 16% in turnover compared to the same period from last year.

The highlight of An Giang's rice exports in 2023 was Loc Troi Joint Stock Company, which received an order for up to 400,000 tonnes of rice exported to the EU market.

An Giang rice is promoting exports to the Indonesian and Chinese markets which have seen an increase in demand for rice. Besides, An Giang rice is also exported to the Philippines, Malaysia, Australia, Russia, and Bangladesh.

In order to achieve these results, businesses in An Giang province have proactively built raw material areas, whilst also enhancing connectivity with farmers and supporting them in improving the quality of commercial rice in order to meet the requirements of demanding markets.

To support rice export activities, Nguyen Thanh Huan, deputy head of the provincial Department of Industry and Trade, proposed that ministries and relevant agencies establish quick information channels on rice import needs of countries.

Currently, the An Giang administration working in co-ordination with provincial businesses is carrying out a project aimed at building and developing the locality’s rice brand until 2025 with a vision towards 2030.

After having branded rice products, Thanh Huan is set to ask the Ministry of Industry and Trade to support An Giang as it strives to promote both advertising and consumption as a way of increasing the overall value of the province's rice products in the coming time.

Construction starts on first railway project using RoK’s ODA

A kick-off ceremony for the construction of the Khe Net pass railway rehabilitation project was held on March 22 by the Ministry of Construction, the People’s Committee of central Quang Binh province, and the Republic of Korea (RoK)’s Economic Development Cooperation Fund (EDCF).

This is the first such project in Vietnam to be implemented with official development assistance (ODA) loans from the EDCF and counterpart capital from the Vietnamese Government with a total investment of more than 2 trillion VND (80.6 million USD). It is implemented by a consortium of Vietnamese construction giant Deo Ca Group and the RoK’s IlSung Vietnam Co., Ltd.

The project includes two packages, in which the first is to build two railway tunnels whose total length is 935m, and the second is to construct and restore bridges and around 7km of railway.

Ngo Truong Nam, General Director of Deo Ca Group, said that the Khe Net pass project is identified as a "bottleneck" in the North - South railway line. Once completed, it will improve the railway infrastructure, boost the speed, and shorten the travel time on the Hanoi - Ho Chi Minh City railway in the coming years.

Deputy Minister of Construction Nguyen Danh Huy said that the project will become a symbol of cooperation between Vietnam and the RoK in the field of transportation infrastructure in general and railways in particular, contributing to the development of diplomatic relations in commensuration with the comprehensive strategic partnership of the two countries./.

Workshop spotlights external challenges’ impacts on Vietnam’s development

An international workshop was held by the Institute of World Economics and Politics (IWEP) under the Vietnam Academy of Social Sciences in Hanoi on March 22 to look into impacts of external challenges on Vietnam’s integration into the world.

In his opening remarks, Acting Director of the IWEP Dr. Phi Vinh Tuong said facing the COVID-19 pandemic, Vietnam exerted efforts to respond to this health crisis, possibly the biggest non-traditional security issue in decades, to reverse its negative impacts. After that, armed conflicts erupted in different regions around the globe, forcing the world to deal with other non-traditional security challenges like energy, food, and navigation security.

Pointing out such challenges’ substantial impacts on economic, political, and social aspects of countries, regions, and the whole world, he considered the identification of those impacts, especially the direct ones on Vietnam, as essential for policymakers to devise countermeasures as part of the country’s efforts to pursue its development targets.

Deputy Director of the IWEP Dr. Pham Anh Tuan mentioned certain global economic uncertainties, including the economic downturn, geo-political tensions, monetary policy tightening, high inflation, and financial volatility.

In 2023, the Vietnamese economy encountered an array of difficulties and challenges. Though the financial - monetary system properly coped with shocks, there were still many risks, particularly in terms of the real estate market and financial institutions. The economy tended to become more dependent on external factors.

The economic growth rate stood at 5.05% last year, lower than the target of 6.5%. Businesses faced a shortage of orders. Exports and imports respectively dropped 4.4% and 8.9% compared to 2022, he noted.

Tuan predicted a more positive outlook for the economy in the latter half of 2024 as businesses are witnessing a rebound in export orders.

At the workshop, domestic and international experts and scholars analysed some critical issues like traditional and non-traditional security issues in the region and the world that directly affect Vietnam, along with impacts of powerful countries’ strategies and policies on Vietnam.

They also suggested several measures for Vietnam to achieve its development targets to 2030 and 2045./.

Southern province warns investors over delayed tourism projects

Numerous tourism projects in the southern province of Ninh Thuận have been lagging behind schedule, according to the latest report by the province's Department of Planning and Investment.

As of early 2024, the province reported a total of 56 approved projects with an investment amount of VNĐ52.5 trillion (US$2.1 billion). Of these, only 23 have commenced operation, 20 are under construction and 13 are in the final stages of investment procedures.

Some major projects that have been falling behind included the 5-star Aminia Luxury Resort - Ninh Chu by Aminia Ninh Chữ Trading and Services Limited Liability Company, and the Ninh Chữ Sailing Bay by Ninh Chữ Bay Joint Stock Company. Both projects received a deadline extension back in June 2020 but little progress has been made since then.

The department stressed the severity of the sluggish progress, saying investors face fines and potential suspension under the country's Investment Law.

Meanwhile, eight other projects under construction experiencing delays have called on the provincial authority for greater support in land clearance. 

5% VAT on fertilisers to create fairer market: domestic producers

Domestic fertiliser producers expect that the amended Law on Value Added Tax (VAT) scheduled to be voted on in October will make fertilisers subject to a 5 per cent VAT rate to create a fairer market.

The absence of VAT on fertilisers for many years has prevented domestic producers from declaring and deducting input VAT, which leads to higher cost of domestically produced fertilisers, by an estimated 5-8 per cent, and makes them vulnerable in competition from imported fertilisers.

Việt Nam imports a significant amount of fertiliser every year, mostly from countries which impose VAT on fertiliser. This means that exporters will get input VAT tax refund when exporting to Việt Nam, allowing them to lower prices for competition.

Statistics of the General Department of Customs showed that Việt Nam imported nearly 4.12 million tonnes of fertilisers in 2023, worth US$1.41 billion, representing a rise of 21.3 per cent in volume but a fall of 12.8 per cent in value from 2022. Average import fertiliser price was at $342.9 per tonne in 2023, 28 per cent lower than a year ago.

Việt Nam imports fertiliser mainly from China and Russia, which together account for 60 per cent of the country’s import value.

Fertilisers are subject to 11 per cent VAT in China, which is proposed to be reduced to 9 per cent, and 20 per cent in Russia.

The Ministry of Finance said that with the imposition of VAT on fertilisers by exporting countries, exporters to Việt Nam will be refunded input VAT, allowing them to lower prices in Việt Nam.

Meanwhile, the current VAT law of Việt Nam does not impose VAT on fertilisers, meaning exporters don’t have to pay VAT and domestic producers cannot deduct input VAT.

This results in higher prices of domestically produced fertilisers than imported.

According to Lâm Thao Supe Chemical Company, the input VAT which cannot be deducted is included into production cost, accounting for around 2-3.4 per cent and increasing prices of the company’s products by 5-8.4 per cent, undermining their competitiveness in the domestic market.

The soaring fertiliser import forces domestic producers to narrow their scale, meaning that Việt Nam will be more dependent on imports. If global fertiliser prices increase, it will be a problem.

DAP No 2 – Vinachem said that as input VAT is not deducted, the company’s production cost increases by around VNĐ100 billion to VNĐ200 billion a year, which is included in the selling prices of products.

The company’s input VAT which is not deducted is estimated to total VNĐ808 billion from 2015 to the end of 2023.

In the latest draft of the amended Law on VAT, a 5 per cent VAT rate is proposed for fertilisers.

The law is scheduled to be passed at the eighth meeting of the National Assembly in October.

While struggling to compete with imported fertilisers, domestic producers are seeking to expand export of many types which are in surplus such as urea nitrogen and super phosphate.

According to Phùng Hà, General Secretary of the Fertiliser Association of Việt Nam, the urea nitrogen production capacity of four plants is estimated at 3 million tonnes per year, while the domestic demand is only 1.6-1.8 million tonnes.

With super phosphate, the demand is at around 1 million tonnes per year, while the production capacity reaches more than 2 million tonnes.

It is necessary to promote export of these products to help producers avoid narrowing down their production, he said.

The association proposed export tax on urea be reduced from the current 5 per cent to zero to boost exports.

New law expected to boost financial leasing

Experts say the amended Law on Credit Institutions will open up many opportunities for financial leasing companies.

The law, which will take effect from July 1 this year, allows financial leasing companies to establish subsidiaries to handle and exploit bad debt assets. It also states that small financial leasing deals with a value under VNĐ100 million do not need to control the purpose of capital use.

Phạm Xuân Hòe, general secretary of the Vietnam Financial Leasing Association (VILEA), expects the State Bank of Vietnam (SBV) will soon issue a decree to guide financial leasing activities under the framework of the Law on Credit Institutions so that enterprises in this industry can seize opportunities.

Besides, Hòe also expects ministries and sectors to soon resolve other problems to remove difficulties for financial leasing companies.

Circular 24/2023/TT-BCA of the Ministry of Public Security on granting revocation and registration of motor vehicle licence plates creates additional legal barriers that increase costs and reduce opportunities to promote loans in the financial leasing industry, Hòe added.

VILEA's statistics showed outstanding loans for car rentals last year totalled VNĐ6.6 trillion, an increase of 17.3 per cent against 2022. According to preliminary statistics from four VILEA member companies, the total value of contracts that could not be implemented due to Circular 24/2023/TT-BCA was more than VNĐ400 billion in 2023.

In addition, VILEA also believes that the SBV needs to reduce the risk safety ratio regulation for financial leasing companies, because the current rate of 20 per cent is too high.

Medium- and long-term capital needs of the Vietnamese economy are estimated at between VNĐ700 trillion to VNĐ1 quadrillion yearly, of which only a very small part comes from financial leasing, and most come from bank credit.

The market share of financial leasing in Việt Nam is still very small while financial leasing is a popular medium- and long-term capital supply channel in many developed countries.

According to VILEA’s data, the ratio of outstanding financial lease debt-to GDP in Việt Nam is very low, less than 0.4 per cent, while the rate in the United States and China is 22 per cent and 18 per cent, respectively.

Hòe said the outstanding financial lease debt in Việt Nam is still very small and cannot share the burden of providing medium- and long-term capital with banking and corporate bond channels.

According to experts, financial leasing is a good form of medium- and long-term credit as it helps enterprises easily access capital without collateral. However, in Việt Nam, small- and medium-sized enterprises do not know much about financial leasing.

In 2023, the outstanding loan of the financial company group increased by 13.75 per cent to VNĐ37.2 trillion. In 2024, the loan is expected to rise by about 20 per cent to VNĐ45 trillion.

Though the Law on Credit Institutions will open a vast market for the financial leasing industry, Hòe said financial leasing companies must take measures so that when enterprises need long-term capital, they must think about financial leasing, instead of just thinking about issuing bonds or borrowing money from banks. 

Cargo owners lament increased fees and surcharges

Cargo firms have called on the Vietnam Maritime Administration to step up efforts in monitoring fees and surcharges collected by international shipping companies, which has been said to cut into their profit unfairly.

Phan Thông, secretary-general of the Vietnam Shippers Council (VNSC), said container handling service fees have increased by about 10 per cent since last month. In addition, many shipping companies have increased their terminal handling charges (THC) at ports, resulting in losses for Vietnamese cargo owners, who claimed the increases were not communicated clearly and fairly. 

Phạm Quốc Long, vice-chairman of the Vietnam Shipowners' Association (VSA), said: "Terminal handling charges are a source of revenue for shipping lines, sometimes the main source because some shipping routes are highly competitive, and freight rates may be negative. Therefore, charges like THC, imbalance charges and fuel surcharges become the main revenue for shipping lines."

Long said according to international practices, THC fees are intended to allocate 80 per cent for port handling fees. However, in Việt Nam only 40 per cent of THC fees go to port operators

Lê Quang Trung, deputy director-general of the Vietnam Maritime Corporation (VIMC), said nearly all of Việt Nam's import-export cargo volume is transported by 10 international shipping companies. Trung said there are many reasons for shipping companies to increase their charges, including having to change routes due to heightened geopolitical tension in regions around the world. 

He said communications regarding such an increase must be transparent and clear. He recommends the authority to hold such communications to the same standards set in Việt Nam's current laws and regulations, as well as international practices. 

According to industry experts, Vietnamese cargo owners are often small, putting them in a disadvantaged position in negotiation with international shipping companies, which hurt them economically. 

According to representatives of the Vietnam Ship Agents, Brokers, and Maritime Services Providers Association, international shipping companies have imposed 10 types of surcharges such as documentation fees, fuel surcharges, container sanitation fees, sulphur reduction fees, and container balance fees, among others. To make matters worse, the prices and types of surcharges were decided by themselves without negotiating with customers.

Lê Đỗ Mười, director of the Vietnam Maritime Administration, said fees and surcharges are determined by the market and shipping companies' operations. He advised them to conduct reviews and where applicable, make adjustments to support the rights and interests of cargo owners. Mười called on shipping companies to keep surcharges to the minimum to help protect the profitability of the entire shipping lines. 

Meanwhile, according to the administration, the Vietnamese government has been working around the clock to find ways to reduce logistics costs. Increases in surcharges are considered counter-productive to the government's efforts. 

"In the future, the administration will take measures to reconcile the related parties and address the difficulties and obstacles faced by businesses," Mười said.

In an earlier development, the Ministry of Transport proposed that surcharges on top of container shipping prices by sea should be declared in full, which has received initial support from the Ministry of Finance. 

Green Entrepreneurship Contest 2024 begins

The Center for Business Studies and Assistance and the Business Association of High Quality Vietnamese Goods launched the 2024 Green Entrepreneurship Contest in HCM City on March 21.

Running until the end of October, the 10th edition of the contest is open to individuals, collectives, enterprises, and co-operatives nationwide in the fields of agriculture, forestry and fishery, food processing technology, biotechnology, and agricultural and community tourism, or those operating climate smart livelihood models, circular economy and social impact business models or projects that preserve and add value to local resources.

The contest is divided into two groups. Group A is for individuals/teams that have launched sample products on the market and have been operating for less than one year, while Group B is for individuals and teams from cooperatives and companies that have commercialised their products and services and have been operating for more than one year but less than five years.

From now until July 26, the organisers will bring in leading experts in technology, local resources, marketing and other areas to provide training on various topics to discover and support potential contestants to complete their business plans so they can participate in the contest.

Training will also be provided to contestants entering the semi-final and final rounds of the contest.

The semi-final round will be held in September in the three places with the largest number of contestants, and the final in October in HCM City.

The contest has total prizes worth VNĐ760 million (US$30,691), including VNĐ210 million in cash.

Vũ Kim Hạnh, director of the BSA Center and chairwoman of the Business Association of High Quality Vietnamese Goods, said the contest this year would also organise seminars and workshops to share knowledge, experiences, and market opportunities to start-ups.

The Green Entrepreneurship Programme is designed to support young people to develop their business capabilities in the agricultural and food sectors, strengthening a class of entrepreneurs towards green economy and sustainable development and encouraging innovation among them, according to Hạnh.

After nearly 11 years, the programme has built a start-up ecosystem throughout the country, with nearly 1,000 start-up models.

It has created a generation of young agri-preneurs who effectively exploit indigenous resources, develop prominent products that are good for health, protect the environment, and make a significant contribution to creating jobs in rural, urban and remote areas.

These entrepreneurs have always fostered innovation and creativity towards developing sustainable agriculture and focused on implementing good agricultural practice standards to stand firm in the market and attract investment. 

Businesses must start taking protective measures against volatile exchange rate

Businesses must start taking measures to protect themselves from highly volatile exchange rate fluctuations, approaching the VNĐ25,000/US$1 mark since the beginning of the year, said economists and business experts.

Economist Đinh Trọng Thịnh said the increase in the exchange rate is due to a rise in demand for foreign currency, which is needed for increased import-export activities in the first quarter of the year. In addition, the global market has seen a surge in gold prices, sending people to seek refuge in the US dollar, which has sent rates to over VNĐ25,700/$1, significantly higher than those offered by commercial banks.

Thân Đức Việt, CEO of Garment Corporation 10, one of Việt Nam's largest textile companies, said while higher exchange rates benefit the corporation's revenue, they have to pay more to import equipment, machinery and raw materials. He said that sharp fluctuations in foreign exchange rates will exert increased pressure on the country's import-export activities and the stability of the VNĐ.

Nguyễn Văn Kết, director of SKD Vietnam Mechanical Company, said strong fluctuations in the exchange rate were expected during the beginning months of the year. As the appreciation of the US dollar negatively impacts businesses that rely heavily on the greenback for imports or loans, leading to increased costs. However, he said that a 2-3 per cent devaluation of the VNĐ is within acceptable range.

As exchange rate fluctuations raise import costs for businesses that trade in the US dollar, they also tend to benefit from the revenue in VNĐ of export-oriented businesses. Financial expert Nguyễn Trí Hiếu said, however, a prolonged period of depreciation of the VNĐ against the US dollar may harm export activities and risk importing inflation, as Vietnamese producers, both for export and domestic consumption, are heavily dependent on imported input materials and this would likely hurt their bottom lines in the long run.

He said the State Bank of Vietnam (SBV) has shown in the past that it has sufficient tools and expertise to intervene to ensure stability in the exchange rate. Recently, the central bank has started an increment of treasury bills to help alleviate pressure on the exchange rate, import-export stability and production. While the risk of major downturns remains low, businesses must make it a habit to be more proactive in planning their payment currencies and diversifying their import-export markets to reduce reliance on the US dollar. He said forecasts by experts and international organisations see the USD/VNĐ exchange rate cooling down to VNĐ23,600 in the third quarter of this year and VNĐ23,500 by the fourth.

Lê Quốc Phương, former deputy director of the Industrial and Commercial Information Centre under the Ministry of Industry and Trade, said businesses need better forecasting models and risk prevention tools related to exchange rates. For example, using financial derivatives and diversifying payment currencies may help minimise risks and even bring benefit from currency fluctuations.

In its reports, the State Bank of Vietnam has consistently emphasised its flexible exchange rate management, which is appropriate to domestic and international situations, helping absorb external shocks, stabilise the foreign exchange market, and limit short-term exchange rate fluctuations, thus maintaining currency value stability and ensuring smooth liquidity, fully meeting lawful foreign currency demands.

The central bank has been consistent in a flexible approach to managing the exchange rate while maintaining stability, liquidity and legal international commitments. While the informal exchange rate appears higher than its official counterpart, its trading volume remains a fraction in comparison to Việt Nam's overall forex market activity, as almost all transactions by individuals and entities are serviced through banks. 

Vĩnh Long calls for investment

The Cửu Long (Mekong) Delta Province of Vĩnh Long will host an investment promotion conference on Saturday.

During the upcoming event, the province will advertise its potential and development orientation while seeking large-scale investments from domestic and foreign businesses to promote its socio-economic development.

The locality will also unveil its development plan from now to 2023 with a vision to 2050 approved by the Prime Minister late last year.

Vĩnh Long strives to attract significant investments across key sectors, including hi-tech industries, agriculture, environmental sustainability, urban development, trade and services, and tourism in 2024, under its investment promotion programme for this year.

In the industrial sector, the province is inviting investments in the construction and operation of infrastructure projects, including the Mỹ Lợi and Tân Bình industrial clusters, with estimated investments of VNĐ325 billion ($13.2 million) and VNĐ410 billion ($16.6 million), respectively.

The province is also seeking investments in high-tech agricultural zones, with projects in Long Hồ and Trà Ôn districts, boasting investments of approximately VNĐ1.8 trillion and VNĐ700 billion, respectively.

Urban development projects include the 178.97ha Vĩnh Long administrative centre, expected to cost VNĐ14 trillion, and an urban, trade, and entertainment area on Cồn Chim Island, worth VNĐ8.6 trillion.

With intensified investment promotion activities in 2023, the province attracted interest from nearly 40 investors, including 15 foreign entities, showcasing the growing appeal of the region for international investment.

Last year, it granted investment certificates to 21 new and capital-added projects with a combined investment capital of over $69 million. Most of these projects came towards real estate, the processing industry, transport and warehouse, trade, and services.

Over the past two months of this year, the locality licensed two new projects worth $8.7 million. 

MoIT launches plan to implement coal industry development strategy

The Ministry of Industry and Trade (MoIT) has released a plan to implement the development strategy of the coal industry to 2030 with a vision to 2045.

According to the Decision No 543/QĐ-BCT signed by Minister of Industry and Trade Nguyễn Hồng Diễn on March 18, the plan focuses on developing and deploying the industry and trade industry's solutions to realise the coal industry development strategy.

Based on this plan, units under the ministry will review, develop and adjust their plans and action programmes on carrying out the coal industry's development strategy.

They also have inspection, supervision and evaluation for the implementation of the coal industry development strategy. Then, the ministry will report these issues to the Prime Minister to have adjustment for this strategy if necessary.

On January 17, 2024, Deputy Prime Minister Trần Hồng Hà signed the Decision No 55/QĐ-TTg to approve the development strategy of the coal industry to 2030 with a vision to 2045.

Accordingly, coal output is expected to be between 45 and 50 million tonnes by 2030, and between 38 and 40 million tonnes in 2031-2045.

Under the strategy, the industry will focus on exploration for upgrading existing coal resources along with new coal mines.

A goal set by the strategy is to start pilot exploitation in the Red River coal basin before 2040 so as to proceed with industrial-scale mining before 2050 if the trial is successful.

A coal market with many sellers and many buyers will be formed, while coal sources and suppliers will be diversified towards operating a fully competitive coal market after 2030.

The export and import of coal will be conducted in accordance with market demand and following the Government's direction to meet domestic coal demand, especially for electricity generation. 

Sustainable development presents opportunities and challenges for businesses

A forum was held in Hà Nội yesterday afternoon (March 21) with an aim to bring together experts and enterprises to discuss the objectives and explore ways to achieve sustainable transformation in Việt Nam

The forum was co-held by the Agency for Enterprise Development (AED), and the United States Agency for International Development (USAID), the initiative seeks to leverage the expertise and resources of various stakeholders to drive sustainable growth in the country.

With an expectation of promoting sustainable growth led by the private economic sector, increasing competitive advantages for businesses and contributing to the implementation of Việt Nam's Green Growth Strategy for the period 2021-2030 and the Decision 167/QĐ-TTg 2022 of the Prime Minister on the Programme to support sustainable private sector enterprises, the Agency for Enterprise Development and USAID announced the Vietnam ESG Initiative.

Speaking at the event, Nguyễn Thị Bích Thủy, the Deputy Head of Small and Medium Enterprises Department under the AED emphasised that businesses in Việt Nam were facing challenges in meeting the requirements for green and sustainable development, which came from various stakeholders such as investors, partners, international markets, and consumers. As Việt Nam integrated further into the global economy, there was a growing demand for businesses to adopt environmentally friendly practices and pursue sustainable development.

Mark Birnbaum, the Director of the USAID Project on Strengthening the Competitiveness of Vietnam's Private Sector (USAID IPSC), added that green transformation was not just a future requirement but an ongoing process that was already happening. With this transformation, the business community faced even greater challenges.

He stated that the traditional measure of evaluating business performance solely based on financial profits was no longer sufficient. Instead, a more comprehensive approach is necessary, which includes the consideration of environmental, governance, and social factors alongside conventional indicators.

Mark said that businesses that prioritise environmentally sustainable development, implement social responsibility, and actively apply corporate governance measures can have more opportunities to achieve sustainable success.

He noted that businesses with higher ESG ratings achieve better financial performance, aligns with a growing body of research supporting the link between ESG and financial outcomes. Several studies have found a positive correlation between strong ESG performance and indicators such as profitability, return on equity, and stock market performance.

According to Mark, integrating ESG principles acts as a catalyst, enabling businesses to minimize risks, enhance resilience, and gain competitive advantages in a dynamically changing global environment. Vietnamese businesses are encouraged to understand and embrace ESG principles. By prioritizing the application of ESG practices, businesses can align their operations with sustainable development goals and contribute to a more environmentally and socially responsible future.

Also, at the event, Phạm Thị Ngọc Thủy, the Director of the Office of the Private Economic Development Research Board emphasised the importance of ESG practices for businesses noting that ESG practices represented a set of standards that guide businesses to operate sustainably and add value to their production and business activities.

According Thủy, ESG practices not only contribute to sustainable development but also serve as a channel for businesses to identify risks and opportunities that can impact their long-term value creation.

In the context of businesses exporting to the European Union (EU), Thủy highlighted that within a short period of two years, failure to make progress in implementing ESG practices could result in the elimination of many businesses in the supply chain to Europe. This elimination would pose a significant financial risk to these businesses. Thủy specifically mentioned that the market side, represented by the letter "E" in ESG, was related to the environment.

Regarding the letter “S” in ESG, Germany has implemented a law related to the German supply chain, specifically addressing various criteria related to labour, female workers, and the working environment. This law aims to ensure that companies operating within the German supply chain adhere to certain standards and regulations. She noted that it was important for businesses that were or wanted to be part of the German supply chain to familiarise themselves with the specific requirements outlined in this law.

Thủy's statement also underscored the importance of understanding and adapting to the evolving landscape of corporate governance. By recognising the different levels of management progress, enhancing management capacity, and ensuring compliance with policy developments, businesses can mitigate risks and foster a culture of effective governance.

Thủy highlighted the escalating issue of climate change, energy crises, and geopolitical conflicts. She noted that addressing these issues would require international cooperation, innovative solutions, and sustainable policies to ensure a more stable and resilient future.

She concluded that technology and digital transformation, along with sustainable development, were reshaping the business landscape. Proactive businesses that embrace digital and green capabilities can gain a competitive advantage, while those slow to adapt face risks. Sustainable development represents both an opportunity for innovation and growth, as well as a pressure to meet evolving expectations. 

Can Tho, Italy seek collaboration in climate-resilient agriculture

Vice Chairman of the People's Committee of the Mekong Delta city of Can Tho Nguyen Thuc Hien held a working session with Italian Consul General in Ho Chi Minh City Enrico Padula on March 22 to discuss all-around cooperation opportunities, with a focus on climate-resilient agriculture.

Hien outlined Can Tho's agricultural development plan, aiming for 2.5-3% annual growth by 2030, an increase of 5.5-6% in agricultural labour productivity, over 70% of skilled workers in the field and a three-fold rise in the income of rural residents compared to 2020.

To such end, Can Tho is actively developing high-tech agriculture by establishing specialised zones and breeding farms, which will also partially cater to eco-tourism, he said, adding that the city is also increasing investment in technical infrastructure and expanding research partnerships with domestic and international institutes, towards forming a hi-tech agriculture centre for the Mekong Delta and the country as a whole.

According to the official, environmental protection, climate change and sustainable development are top priorities for the Mekong Delta and Can Tho in particular.

He urged Padula to act as a bridge popularising Can Tho's investment environment to Italian firms and investors while promoting investment through seminars, trade fairs and exhibitions in Can Tho and Italy.

Padula, for his part, acknowledged Can Tho as a crucial partner of Italy. He announced that a delegation of Italian firms will visit Can Tho later this year to explore potential in high-tech agriculture and industrial machinery.

Informing the host about his attendance at a seminar on the sustainable development of the Mekong Delta earlier the same day, he affirmed Italy’s commitments to Can Tho and regional provinces via specific activities to adapt agricultural products to climate change and align them with the European Union market, ultimately increasing profits for this sector.

Last year, Can Tho exported 3.2 million USD worth of goods to Italy, mostly rice, aquatic products, garments, farm produce and processed agricultural products. Its imports totalled 0.21 million USD, primarily pharmaceutical materials./.

“Meet Indonesia” Conference 2024 held in Khanh Hoa

The “Meet Indonesia” Conference 2024 took place in Nha Trang city, the south central province of Khanh Hoa on March 22.

Co-hosted by the Vietnamese Ministry of Foreign Affairs, the provincial People’s Committee and the Indonesian Embassy in Vietnam, the event gathered 150 Indonesian and 200 Vietnamese delegates to explore economic cooperation opportunities.

In her opening speech, Deputy Minister of Foreign Affairs Nguyen Minh Hang said the event took place at a time when Vietnam and Indonesia recently celebrated the 10th anniversary of bilateral strategic partnership last year and are looking toward the 70th anniversary of diplomatic ties in 2025.

Meanwhile, Chairman of the provincial People’s Committee Nguyen Tan Tuan said Khanh Hoa expects to collaborate with Indonesia in the priority areas of tourism, hi-tech mechanical engineering (with a focus on shipbuilding), clean and renewable energy, oil and gas processing, electronics and semiconductor, biotechnology, vaccine production and marine pharmaceuticals, thereby further leveraging its potential and strengths.

Indonesian Ambassador to Vietnam Denny Abdi pointed to the significant two-way trade of 13.8 billion USD achieved in 2023. He echoed the leaders' commitment, made during President Joko Widodo's January visit, to work toward becoming high-income nations by 2045.

This vision, he said, could be achieved through enhanced economic competitiveness, a healthy investment climate, joint research and development, and cooperation in developing value-added products.

The event featured three discussion sessions covering hi-tech agriculture and aquaculture, digital economy and tourism, and renewable energy and hi-tech collaboration. Delegates showcased their respective countries' strengths in these sectors, and shared policies, development strategies and experience.

A shared focus on prioritising modern and eco-friendly technology, digital transformation, and cooperation/investment in agriculture, aquaculture, digital economy, renewable energy and hi-tech industries also emerged.

On the occasion, the Khanh Hoa - Indonesia meeting, a Memorandum of Understanding signing ceremony between authorities of Phu Yen province and the Indonesian Ministry of Marine Affairs and Fisheries, field surveys and bilateral connectivity activities between Vietnamese localities and businesses and their Indonesian partners were also held./.

Indian enterprises explore cooperation opportunities in Binh Phuoc

A Vietnam-India business and investment conference was held in the southern province of Binh Phuoc on March 22 by the provincial People's Committee.

Speaking at the event, Director of the provincial Centre for Investment, Trade and Tourism Promotion Tran Quoc Duy expressed his confidence that the combination of Binh Phuoc's advantages and Indian firms’ experience, financial capacity, and business management skills will yield tangible benefits for both sides. He pledged to provide support and favourable conditions for investment, production and business activities and implementation of projects by enterprises.

In his remarks, Consul General of India in Ho Chi Minh City Madan Mohan Sethi highly lauded the province’s potential in industries, agriculture and exports as well as its investment attraction policies targeting domestic and foreign enterprises.

Noting that many Indian businesses have shown interest in and conducted research on the destination, the diplomat expressed his hope that there will be exchanges and collaboration between them and Binh Phuoc to further strengthen the Vietnam-India relations in the time to come.

The southern province holds a strategic position in the East-West economic corridor, serving as the Southeastern region’s gateway to the Central Highlands, deep-water ports, international airports, and to Cambodia, Laos, and Thailand.

Currently, Binh Phuoc has 13 industrial parks covering a total area of 6,061 ha, with an occupancy rate of nearly 70%. Between 2021 and 2030, it plans to expand its industrial land by 10,400 ha./.

Vietnam earns 160 million USD from rubber exports in Feb

Vietnam shipped 110,000 tonnes of rubber abroad last month, earning more than 160 million USD, according to the Ministry of Agriculture and Rural Development (MARD).

The February figure brought the country’s total rubber exports in the first two months of 2024 to 320,000 tonnes, worth 458 million USD.

China remained Vietnam’s largest rubber buyer, importing 227,000 tonnes for 317 million USD, an increase of 10.1% in volume and 14.4% in value compared to the same period last year.

Meanwhile, the Southeast Asian country's rubber exports to major international markets, including the Republic of Korea, the US, Germany, Russia, Italy, Brazil, Spain and Turkey, have all increased.

Vietnamese rubber fetched 1,481 USD per tonne in international markets, an increase of 5% compared to January.

Industry experts said there are several contributing factors to the rise in rubber prices, with the largest factor being the booming car sales in China. As a result, demand for tyres for new cars in China has increased by 30%, boosting demand for natural rubber, and this trend will likely continue in the coming months./.

Binh Duong records high economic expansion in Q1

The southern industrial hub of Binh Duong is likely to record a 16.2% rise year on year in exports of nearly 8 billion USD in the first quarter of 2024 thanks to the strong recovery of local firms.

In the first three months of this year, the province’s index of industrial production is estimated to grow 3.87% year on year.

According to Director of the Management Board of Binh Duong Industrial Parks Nguyen Trung Tin, in the period, businesses in local industrial parks enjoy 10.3 billion USD in revenue, contributing 5.9 billion USD to the province’s total exports.

Tin said that 965 million USD has been disbursed by foreign-invested projects in local industrial parks.

Thanks to the recovery in production and good economic growth, Binh Duong has collected 18.41 trillion VND (743.23 million USD) of State budget so far this year, fulfilling 26% of the yearly target.

In order to continue promoting economic growth, Chairman of the provincial People’s Committee Vo Van Minh has asked departments, sectors, and localities across the province to focus on removing difficulties and obstacles facing real estate projects, while speeding up public investment disbursement.

Binh Duong will continue to create favourable conditions for local businesses and people to access credit, he pledged./.

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