The Vietnamese manufacturing sector in October started to recover from the effects of September's Typhoon Yagi, recording renewed increases in both output and new orders, according to S&P Global.

However, some disruption to supply chains and production remains, October data show.

The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) posted 51.2 in October, up from 47.3 in September and back above the 50.0 no-change mark following the disruption caused to the sector by Typhoon Yagi in the previous month.

Business conditions have now strengthened in six of the past seven months, although the improvement in October was only modest.

Central to the renewed strengthening of the health of the sector were returns to growth of both output and new orders as the recovery from the typhoon got underway. However, rates of expansion were softer than in the months leading up to September as some firms continued to face disruption following the storm and associated flooding.

Alongside the rise in total new business, new export orders also increased in October. That said, the rate of expansion was only marginal amid some reports of subdued international demand, S&P Global noted.

Manufacturers continued to use stocks of finished goods to help fulfil orders at a time when production was partly hampered. Post-production inventories decreased at the fastest pace in three months. Meanwhile, employment ticked down, reversing the rise seen in the previous month. Some firms reported that resignations had caused a drop in their staffing levels.

Suppliers' delivery times lengthened for the second month running in October as storm-triggered disruption continued to affect transportation. However, lead times lengthened to a lesser extent than in September.

Purchasing activity returned to growth amid higher new orders and expected increases in production in the months ahead. However, the rate of expansion was only marginal as some firms reported that they had sufficient holdings of inputs.

Stocks of purchases continued to fall as inputs were used to support growth of production. The rate of depletion was much weaker than the near-record seen in the previous survey period.

Manufacturers reported a rise in input costs amid currency weakness and higher prices for oil, metals and transportation. In turn, firms increased their own selling prices. However, the rate of charge inflation was only slight, as some respondents indicated that competitive pressures had led them to offer discounts.

Rising sales, hopes for stable market conditions, and business expansion plans all contributed to positive expectations regarding manufacturing production over the coming year. Optimism dipped to a nine-month low and was weaker than the series average. Some firms indicated that uncertainty around the US Presidential Election had dampened confidence, according to S&P Global.

Andrew Harker, Economics Director at S&P Global Market Intelligence, said: "October data showed that the recovery from the disruption caused by Typhoon Yagi got underway during the month, with firms seeing a rise in new orders and being able to expand their production.”

“Some companies are still suffering from the effects of the storm, however, limiting rates of expansion. We should hopefully therefore see growth pick-up as more manufacturers get back up to full capacity towards the year end," he added./.

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.

The Vietnam Association of Seafood Exporters and Producers (VASEP) reported that as of the end of September, seafood exports were estimated at 7.7 billion USD, mostly shrimps and tra fish.

VASEP Deputy General Secretary Nguyen Hoai Nam said that in the remaining months of the year, seafood exports will rise thanks to increased demand in import markets.

However, he said that the fisheries industry is facing many challenges, including a lack of raw materials for shrimp processing, and competition from Ecuador which boasts a strong shrimp industry.

Alongside, fierce competition also comes from China which is providing 60% of the total aquatic products to the world.According to experts, along with objective difficulties, Vietnam's fisheries sector is also facing internal barriers.

To date, regulations on tuna size for exploitation have not been resolved, making it difficult for exporters to buy enough materials for processing and exporting.

The Ministry of Agriculture and Rural Development has set a target of 10 billion USD in seafood exports for this year.However, the VASEP representative asserted that the sector still enjoys many advantages.

Many exporters have managed to grasp opportunities from emerging markets such as South America and the Middle East to balance market demand, while promoting the domestic market.

Highlighting the great potential of the domestic market, VASEP Chairwoman Nguyen Thi Thu Sac said that in order to balance supply and demand and reduce dependence on export markets, seafood enterprises need to focus on developing the domestic market, bringing products for export to Vietnamese consumers.

Vu Minh Duc, HR Director of Minh Phu Hau Giang Seafood Corp, said the fact that businesses have still received contracts is a good sign.

Duc said that to promote sales of Minh Phu shrimp products, together with increasing shrimp quality, the company has applied a strategy of reducing prices according to the allowed profit margin, thus enabling it to compete with foreign shrimp products and promote sales in the domestic market in retail channels such as supermarkets at the same time.

To balance the advantages and disadvantages, experts advised businesses to stay vigilant even amid high market demand, while proactively improving their competitiveness, making the most of their advantages, and increasing the production and export of high value-added products, thus creating a driving force to maintain the growth momentum for the industry./.

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.

The office said that in the first nine months of this year, import-export turnover between the two countries neared 6.5 billion USD, a rise of over 20% year on year, with Vietnam’s exports increasing 20.7%.

Among the 35 products Vietnam exported to the Philippines, 20 recorded a growth in the first nine months of this year, including rice at 53.3%, coffee 120.7%, peppercorn 37.6%, fertilisers 21.6%, steel products 71.2%, telephones and components 42.8%, and cameras, camcorders and components 64.6%.

Meanwhile, products with export decrease were aquatic products at 21.2%, animal feed and raw materials 15.6%, paper and paper products 19.3%, ceramic products 17.2%, and clinker and cement 15.7%.

Particularly, rice - Vietnam's main export item to the Philippine market - has maintained its high growth momentum, hitting 1.98 billion USD in the first nine months of this year, accounting for 42.86% of country's total export turnover to the Philippines in the period.

In the remaining months of 2024, the Philippines' rice import is forecast to continue increasing due to stronger domestic consumption demand while the Philippines' year-end crop has been damaged by natural disasters./.

HCM City to host Vietnam - EU Cooperation Forum 2024

The European-American Market Department under the Ministry of Industry and Trade (MoIT) will host the "Vietnam-EU Cooperation Forum 2024” in Ho Chi Minh City next month.

The forum is anticipated to foster a meaningful communication between government agencies and the business communities of both sides through policy dialogue, market information updates, and support for business partnership.

It will bring together leaders from the MoIT, representatives of the EU Delegation to Vietnam, the European Chamber of Commerce in Vietnam (EuroCham Vietnam), experts, businesses, and representatives of localities.

The forum will comprise of two parts, according to the event’s organising board. At the first session, EuroCham leaders will discuss cooperation opportunities in green and energy transition in Vietnam from a European business perspective, along with market expectations. It will be followed by a presentation from the Energy Efficiency and Sustainable Development under the MoIT, focusing on Vietnam's policies and orientations for sustainable production, emission reduction, potential partnerships with the EU, and recommendations for businesses.

Representatives of localities will highlight priorities and strategies to attract EU investment in green and circular economy fields. Additionally, businesses will discuss market demands in response to the EU's evolving green and sustainable development standards and the sourcing criteria for European companies.

According to the MoIT, the panel discussion will address topics such as navigating challenges posed by non-tariff barriers and trade protectionism, sharing notable cases and advice for businesses, EU trade defence policies, and practical support measures for business adaptation and response. It will also provide updates on key EU policy adjustments, roadmap for implementing new EU regulations and standards on climate/environment, sustainable development such as the Carbon Border Adjustment Mechanism (CBAM), EU Deforestation Regulation (EUDR), the Corporate Sustainability Due Diligence Directive (CS3D), the Ecodesign for Sustainable Products Regulation (ESPR) with insights on their impacts on trade and investment.

The forum will further evaluate business readiness and adaptability, offering essential guidance on compliance with new requirements, emission reduction practices, and environmental and social responsibility within business development strategies. Success stories, as well as opportunities to attract investment, technology transfer, and capacity-building projects from EU partners, will also be shared./.

Petrol prices down, oil prices up in latest adjustment

The retail prices of petrol were revised down, while that of oil products increased on October 31 in the latest adjustment by the Ministry of Industry and Trade and the Ministry of Finance.

Specifically, the retail prices of E5 RON 92 and RON 95-III were cut by 284 VND and 391 VND to 19,408 VND (0.77 USD) and 20,503 VND per litre, respectively.

Meanwhile, the price of 0.05S diesel oil was capped at 18,148 VND per litre, up 91 VND per litre from the previous adjustment, and the ceiling prices of kerosene and mazut, up 263 VND and 232 VND to 18,833 VND and 16,461 VND per litre, respectively.

The ministries decided not to use the petrol and oil price stabilisation fund./.

Project approved to strengthen private sector competitiveness in An Giang

The Ministry of Planning and Investment’s Agency for Enterprise Development (AED) and the US Agency for International Development (USAID) approved the Improving Private Sector Competitiveness (IPSC) project in the Mekong Delta province of An Giang on October 31.

On the occasion, the provincial Department of Planning and Investment and the provincial Business Association hosted a training workshop regarding comprehensive financial management strategies for cost optimisation and effective capital access. The event attracted nearly 130 local manufacturing facilities and small- and medium-sized enterprises (SMEs).

Experts introduced the participants to business and financial strategies, corporate financial health assessment, financial and cash flow management tools, and fundraising processes and skills, among others.

Speaking at the event, AED Deputy Director Trinh Thi Huong highlighted that micro-, small-, and medium-sized enterprises (MSMEs) account for approximately 98% of all active businesses in Vietnam, generating 36% of total jobs and contributing over 40% to the country’s GDP. However, these businesses face numerous challenges, particularly in financial management and capital access.

According to Huong, many MSMEs originate from small production groups or family-run establishments so their owners mostly manage their businesses based on intuition and personal relationships. Additionally, the ability of these businesses to mobilise capital is severely limited, primarily relying on personal funds, which typically account for about 50-70% of their capital, followed by borrowing from friends, family, and credit institutions. With limited financial resources and financial management expertise, they struggle to gain the trust of investors and seldom engage in financial markets such as stock market or leasing services.

The official expressed a hope that MSME managers in An Giang would acquire comprehensive financial management skills and knowledge, enabling them to enhance their capabilities and competitiveness./.

US not impose anti-dumping duties on aluminum extrusions from Vietnam

The US Department of Commerce (DOC) will not impose anti-dumping duties on aluminum extrusions imported from 14 countries and territories, including Vietnam, according to the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade.

This came after the US International Trade Commission (ITC) on October 30 released its final decision on an anti-dumping investigation concerning aluminum extrusions imported from China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, the Republic of Korea, Taiwan (China), Thailand, Turkey, the United Arab Emirates and Vietnam.

Accordingly, the ITC determined that the US industry was not significantly injured by aluminum extrusions imported from the 14 countries and territories under investigation, although the DOC had previously concluded that their extruded aluminum was dumped or subsidised.

The investigation was initiated by the DOC on October 24, 2023 at the request of the US United Steel, Paper & Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service Workers International Union, in which Vietnam was only investigated for anti-dumping./.

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.

Speaking at the Vietnam Logistics Summit 2024 organised by Dau tu (Investment) Newspaper, its editor-in-chief Le Trong Minh said that logistics is one of Vietnam’s fastest-growing sectors, with a 16% annual growth rate.

The sector currently contributes 4-5% to national GDP and employs over one million people, and ranking among the top five in ASEAN, he added.

Vietnam’s logistics market is valued at around 40 billion USD in 2023, with expected growth of 14-15% by 2025.

Factors such as free trade agreements, Vietnam’s strategic location, and a favourable investment climate are driving this growth, aided by a recovery in trade post-pandemic, he said.

Moreover, the Government’s focus on major infrastructure projects and dual transitions in digital and green initiatives presents significant opportunities for Vietnam’s logistics sector, he added.

According to a report by Precedence Research, the global logistics market is expected to reach $21.91 trillion by 2033, growing at 9.35% annually.

Experts have, however, warned that the global logistics sector is facing numerous challenges, including economic uncertainty, geopolitical tensions, supply chain disruptions, declining consumer demand, and the impact of natural disasters such as Typhoon Yagi.

For Vietnam’s logistics industry to thrive, it cannot rely solely on its current advantages, they noted.

Ranked 43rd globally in the Logistics Performance Index, Vietnam must improve amidst a rapidly changing environment, they noted.

Deputy Minister of Planning and Investment Do Thanh Trung pointed out that the logistics sector is facing insufficient and incoherent policies, as well as a fragmented legal framework.

The country’s logistics infrastructure, including warehouses and transport networks, is limited and poorly coordinated, hindering seamless multimodal transport, he added.

There is also a shortage of strategically located logistics centres and a lack of skilled personnel in the industry, many of whom operate as subcontractors for foreign firms.

The challenges have been serious, particularly as the global landscape evolves with shifts in security, geopolitics, and rapid technological advancements in areas such as Big Data and AI.

Despite the challenges, the context presents an opportunity for firms to expedite their transformation, becoming more agile and robust, according to Trung.

“Companies that effectively leverage emerging technologies will gain a competitive edge in the market,” he said.

Vietnamese logistics companies, mostly small to medium-sized enterprises, must optimise practices, accelerate digital transformation, and invest in new technologies to enhance competitiveness, he recommended.

The conference also addressed other topics such as data security, cyberattacks, and cargo safety, focusing on preventive measures and response strategies in the logistics sector.

As part of the event, an exhibition showcased innovative technologies and solutions in logistics.

Themed “Transform to Breakthrough,” the conference discussed key industry challenges, including logistics infrastructure modernisation, supply chain efficiency, digital transformation, and new business models.

Over 300 attendees participated in the event, including State officials, industry experts, logistics providers, manufacturers, and consultants.

It was also streamed on platforms such as Facebook and YouTube./.

Int’l organisations, experts remain optimistic about Vietnam's economic outlook

International organisations and experts have made positive comments on the Vietnamese economy, affirming their optimism about Vietnam's economic outlook.

In its East Asia and Pacific (EAP) Economic Update released in October, the World Bank (WB) predicted that developing economies in the EAP region will continue to grow faster than the rest of the world in 2024, but still slower than before the outbreak of the COVID-19 pandemic.

World Bank East Asia and Pacific Chief Economist Aaditya Mattoo pointed to three factors that may impact regional growth in the coming period - shifts in trade and investment, China's slowing growth trend, and increased uncertainty in global policy.

Amidst the difficult global economic context, HSBC still forecast that Vietnam's economy will grow 7% in 2024, becoming the fastest growing economy in ASEAN and producing as much new additional GDP as the Netherlands.

Tim Evans, CEO of HSBC Vietnam, said that Vietnam is now also among the world’s 40 largest economies in terms of GDP, and in the top 20 in terms of trade. This progress has led to an increase in per capita income that has risen 43 times to 4,300 USD from 100 USD since the early days of the “Doi moi” (Renewal) cause.

Pointing to two major game-changers that are impacting the world - technological advancements and climate change, Evans said that Vietnam has a strong appetite for digital consumption. Demographic tailwinds include a population of over 100 million and a work force that is 70% of the total population. The rapid rise in internet users also helps drive the adoption of the digital market. Almost 80% of Vietnam’s population now use the internet, thanks to smartphone ownership that has doubled from a decade ago, he noted.

He added that climate change, which is a severe challenge to Vietnam, also represents a huge opportunity for the country and its corporate sector. Vietnam's renewable energy potential is huge given its conducive conditions and the government's pledge to achieve net zero by 2050, said the expert.

Meanwhile, in its latest economic update on Vietnam, Standard Chartered raised its 2024 GDP growth forecast for Vietnam to 6.8% from 6% thanks to better-than-expected third-quarter GDP results.

The bank’s economists said Vietnam’s economic growth momentum has been relatively strong, with improvement recorded in multiple sectors, such as imports-exports, retail sales, real estate, tourism, construction, and manufacturing. Trade recovery and increased business activities and foreign investment will be the main boosters for 2025 and beyond, they added./.

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.

Tien said that in the first ten months of this year, the sector’s export revenue reached 51.74 billion USD, an increase of 20.2% compared to the same period of last year. With this growth momentum, the country's agro-forestry-aquatic product exports will see a new record in 2024, he said.

The official said that typhoon Yagi and its circulation caused damage of about 30.8 trillion VND to Vietnam's agricultural production. However, drastic measures were taken quickly to recover agricultural production in storm-hit localities and speed up production at localities that were not affected.

During the January-October period, export values of many product groups surged, for examples, aquatic products up 12%, forestry products up nearly 20%, and agricultural products up nearly 26%. Thus, the target of 54-55 billion USD in agro-forestry-aquatic product exports is surely exceeded. There are two months left, and if the country rakes in 5.5 billion USD from agro-forestry-aquatic product exports each month, the whole year's earnings will reach 62 billion USD - the highest amount so far, according to the Deputy Minister.

Regarding Vietnam’s efforts in expanding market, Tien said that Vietnam has signed three more protocols on exporting frozen durian, fresh coconut and crocodile to China.

Meanwhile, Vietnam also eyed to promote exports to Halal markets. Halal markets are very demanding ones and countries do not recognise each other's Halal certifications, which poses difficulties for Vietnam. Recently, Vietnam has had many products exported to Halal markets, including veterinary medicine, vaccines, and chicken.

Vietnam will gradually conquer the markets with high requirements and great potential like Halal markets, which expectedly push export values.

Regarding rice exports, the official said that in 2023, Vietnam exported 8.13 million tonnes of rice. In the first ten months of this year, Vietnam exported nearly 7.8 million tonnes. With the export growth and domestic production capacity, rice exports will reach over 8 million tonnes for the whole year.

Recently, India has resumed its export of 5% broken rice, which had a certain impact on Vietnam’s rice exports. However, in the supply chain of high-quality rice, Vietnamese rice still maintains relatively good export prices./.

Vietnamese tech company introduces new product in US market

Vietnam’s Xelex Group JSC on October 30 (local time) introduced its Latimer laptop/tablet at Practical Technologies Inc. in the US’s Maryland state.

The 2-in-1 product, featuring effective security measures to ensure user safety, has received a warm reception from domestic businesses.

It is produced with the collaboration between US and Vietnamese innovators, reflecting Vietnam's increasingly advanced capabilities in the technology sector.

Nguyen Ai Huu, Chairman and CEO of Xelex Group, stated that this product was launched after nearly five years of research. In the coming time, Xelex will introduce its Latimer brand to schools in Maryland, aiming to integrate artificial intelligence (AI) into its products and gain a firm foothold in challenging markets like the US./.

Vietnamese AI firms have many chances of development

Demand in the domestic market along with a series of new regulations and policies are supporting for the Vietnamese AI start-up community to develop.

According to data from many reports, the number of Vietnamese AI start-ups is increasing rapidly, even the GenAI Fund predicts that with the current growth in scale and number of AI businesses, Vietnam can surpass Singapore in AI start-up market share in the Southeast Asian region.

“Vietnam is forecast to lead the ASEAN region in the number of AI businesses. Organisations and businesses in many fields such as education, healthcare, and especially e-commerce, are increasing the application of AI to reduce workload and improve efficiency," Prof. Dr. Chu Duc Trinh, Rector of the University of Engineering and Technology, under the Vietnam National University told Thoi bao Kinh te Vietnam (Vietnam Economic Times).

According to MarketsandMarkets research, the global artificial intelligence market is expected to grow from 214.6 billion USD in 2024 to more than 1.3 trillion USD by 2030, with an annual growth rate (CAGR) of 35.7% during the forecast period.

Rapid digital transformation across various industries, such as healthcare, finance, manufacturing and retail, needs AI applications to improve efficiency and customer experience.

A report conducted by Google and Temasek said that Vietnam's digital economy is expected to reach 45 billion USD by 2025 with AI technology playing a major role in this growth.

These figures show a wide market at home and abroad for the Vietnamese AI start-up community to explore and affirm their capabilities.

Many AI start-ups in Vietnam agree that developed technology research will be the premise for creating innovative businesses, including in the field of artificial intelligence. This means that development needs to start from research institutes, universities and technology organisations.

So far, Vietnam has had about 50 universities specialising in information technology, more than 20 organisations having certificates of registration for scientific and technological activities granted by the Ministry of Science and Technology, and hundreds of other technology communities and associations. The growth of them has created a strong AI ecosystem.

In addition, Vietnam has recently signed many important economic cooperation agreements with many countries. This has brought opportunities to cooperate with leading international companies, and expand their operations to foreign markets.

Meanwhile, in the domestic market, the demand for AI applications is also exploding.

According to the report “AI at work is here. Now comes the hard part” published by Microsoft, 88% of people surveyed in Vietnam said they used AI at work, higher than the world level.

Microsoft also noticed a trend of workers in Vietnam equipping themselves with AI tools to use, instead of waiting for deployment from companies and organisations.

Trinh believed that along with the advantage of a young population loving technology, Vietnamese businesses are also gradually recognising the benefits of integrating technology, including AI, into innovation in production and business activities. So, they are willing to put investment in technology to optimise processes and save costs.

Demand from the domestic market is constantly increasing and seen as a 'delicious cake' that Vietnamese AI companies have competitive advantages to exploit.

Nguyen Van Khanh, Director of Information Technology of the Data Science Joint Stock Company, a business operating in the field of artificial intelligence in Vietnam, said that the Government has made great strides in supporting and promoting the development of AI enterprises in Vietnam.

"These companies are benefiting a lot from the Government's policies, including tax incentives and paperwork support," Khanh said.

However, to accelerate the development of the Vietnamese start-up ecosystem, including start-ups in the field of AI, the Government needs to add new financial support mechanisms, such as venture capital funds or preferential loan programmes for high-tech start-ups. These mechanisms will create favourable conditions for the AI companies to develop further./.

Da Nang to invest additional $16 million into software park

The People's Council of Da Nang city has approved the adjusted pre-feasibility study report for the development of Software Park No 2, proposed by the municipal People's Committee.

Accordingly, the city will provide an additional 414 billion VND (16.4 million USD) to build three more buildings in the park, which are the ICT (20 floors), the ICT1 (eight floors) and the ICT2 (eight floors).

The park was built in October 2020 at a total cost of 986 billion VND (39 million USD), which was covered by the city’s budget.

With the new buildings, to date, the actual costs to develop the park and its infrastructure have reached over 1.4 trillion VND (55.4 million USD).

The development of the software park is among the key projects of the city during the 2021-2025 period.

The project was approved to attract domestic and foreign investment to the city, especially in the field of information technology.

When going into operation, the park will serve as a bridge between businesses and the State, helping them to access State support, incubate new start-ups and expand the technology industry./.

Binh Duong leaders hold dialogue with RoK enterprises

The People's Committee of the southern province of Binh Duong held a dialogue with representatives of Korean businesses operating in the locality on November 1.

The dialogue saw the participation of Vice Chairman of the provincial People’s Committee Mai Hung Dung, Consul General of the Republic of Korea (RoK) in Ho Chi Minh City Shin Choong Il, and Vice Chairman of the RoK Business Association in Binh Duong Lee Bong Hee along with over 100 representatives from Korean businesses.

At the event, Korean enterprises proposed expanding the support services of the Business Support Centre under the provincial Department of Planning and Investment.

Representatives of local departments and agencies clarified many issues of concern of Korean enterprises including procedures for value-added tax (VAT) refunds, granting work permits to foreigners, construction licensing procedures, investment incentives, issues related to fire prevention and fighting regulations, and environmental protection.

Vice chairman Dung emphasised that Binh Duong will keep improving its investment environment through publicising administrative procedures and optimising procedure processing. The province is also committed to further investing in infrastructure, expanding and building new industrial parks, creating clean land funds, training high-quality labour, building social housing for workers and developing high-quality services.

Binh Duong is currently home to 4,356 projects from 65 countries and territories with a total registered capital of over 42 billion USD.

The RoK is the fifth largest investor of the province with 775 projects and a total investment capital of over 3.4 billion USD./.

Binh Duong leaders hold dialogue with RoK enterprises

The People's Committee of the southern province of Binh Duong held a dialogue with representatives of Korean businesses operating in the locality on November 1.

The dialogue saw the participation of Vice Chairman of the provincial People’s Committee Mai Hung Dung, Consul General of the Republic of Korea (RoK) in Ho Chi Minh City Shin Choong Il, and Vice Chairman of the RoK Business Association in Binh Duong Lee Bong Hee along with over 100 representatives from Korean businesses.

At the event, Korean enterprises proposed expanding the support services of the Business Support Centre under the provincial Department of Planning and Investment.

Representatives of local departments and agencies clarified many issues of concern of Korean enterprises including procedures for value-added tax (VAT) refunds, granting work permits to foreigners, construction licensing procedures, investment incentives, issues related to fire prevention and fighting regulations, and environmental protection.

Vice chairman Dung emphasised that Binh Duong will keep improving its investment environment through publicising administrative procedures and optimising procedure processing. The province is also committed to further investing in infrastructure, expanding and building new industrial parks, creating clean land funds, training high-quality labour, building social housing for workers and developing high-quality services.

Binh Duong is currently home to 4,356 projects from 65 countries and territories with a total registered capital of over 42 billion USD.

The RoK is the fifth largest investor of the province with 775 projects and a total investment capital of over 3.4 billion USD./.

Vietnam International Agriculture Fair 2024 kicks off with 400 booths

The Vietnam International Agriculture Fair 2024 opened in the Mekong Delta city of Can Tho on November 1 with 400 booths of exhibitors from 20 provinces and cities of Vietnam as well as other countries and territories.

On display at the event were agricultural machinery, production lines, fertilisers, pesticides, high-tech agricultural support technology, solutions to promote agricultural linkages and post-harvest preservation techniques.

Nguyen Thuc Hien, Vice Chairman of the municipal People's Committee, said the fair, an annual event organised by Can Tho since 1997, has contributed to promoting trade, enhancing business connectivity, supporting high-tech agricultural development, creating a venue for enterprises to promote their brands, expand their markets, showcase their agricultural, forestry, and fishery products, and highlight scientific advances and new achievements in agricultural production.

The fair also offers an opportunity to present the potential and strengths of the Mekong Delta region's agricultural sector to businesses and investors from domestic and international markets.

The Mekong Delta currently has many agricultural products that posted export revenue of over 1 billion USD including fruits, rice, and seafood. The region accounts for about 31% of the GDP of the entire agricultural sector, 50% of the total unhusked rice output, 95% of rice exports, 60% of fish exports and approximately 70% of fruits of all kinds, statistics showed.

During the five-day event, a ceremony will be held for the signing of a memorandum of understanding (MoU) on promoting trade and investment ties among three Mekong Delta localities, namely Can Tho, An Giang province, and Dong Thap province.

A range of activities will be held within the framework of the fair such as a workshop introducing Ecobiznet's microbial products for agricultural use and the Can Tho 2024 Technology and Agricultural Equipment Market - TechAgri Can Tho 2024./.

Banking sector prioritises support for import-export firms

Affordable bank credit has supported businesses in key sectors that drive the country’s economic growth, Nguyen Duc Lenh, deputy director of the State Bank of Vietnam’s Ho Chi Minh City office, told a conference on October 31.

The Investment and Trade Promotion Centre of HCM City, in collaboration with the SBV’s HCM City office, organised the conference between businesses and the city government to help solve difficulties in accessing bank loans, while linking up export firms with banks to facilitate lending.

Lenh noted that exports are one of the five priority sectors that benefit from a preferential short-term credit programme in Vietnamese dong with an interest rate capped at 4% per annum, which creates favourable conditions for firms to expand their production and business activities, contributing to the sector’s development.

He highlighted that in Ho Chi Minh City alone, total loans outstanding in dong to export enterprises is more than 105.3 trillion VND (4.2 billion USD), accounting for 6.21% of total loans outstanding for the five priority sectors (small and medium-sized enterprises, export, agriculture and rural areas, supporting industries, and high-tech enterprises).

Furthermore, the SBV’s use of effective exchange rate and interest rate management tools and its flexible exchange rate policy have not only ensured the stability of the national currency and curbed inflation but also kept the foreign exchange market steady. This stability is crucial for the operations of enterprises, especially those involved in the import-export sector, driving their growth and development, he said.

At the conference, businesses expressed that the current low-interest-rate environment is great support for them to acquire affordable loans for production and business. However, many import-export enterprises said they have not yet accessed preferential loan packages from banks and wanted the banking sector to provide specific instructions to enable them to secure loans with interest rates of 3-4% per annum.

The conference also included a credit signing ceremony between Vietcombank’s HCM City branch and 20 export businesses in the city. This initiative aims to strengthen connections between banks and businesses, support enterprises in enhancing export capacity and upgrading technology, and meet their capital demand in the final months of the year./.

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), which became effective three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.

Vu Viet Thanh from the Department of European-American Market under the Ministry of Industry and Trade said that the UKVFTA has become an important driving force for promoting economic, trade and investment cooperation between the two sides. Vietnam's increasing exports to the UK is clear evidence, he said.

Thanh noted that two-way trade has expanded 8.9% per year in the past three years, of which Vietnam's exports to the UK grew by an average of 9.4% per year. Vietnam's trade surplus with the UK in the past nine months also rose 24% year on year to 5.1 billion USD.

Meanwhile, the UKVFTA with its comprehensive tariff removal also contributes significantly to increasing the market share of some of Vietnam's strong product groups in the UK market.

According to data from ITC's Trade Map, some important export products of Vietnam are holding the top position in the UK market, including pepper, shelled cashew nuts, footwear, and coffee. Meanwhile, Vietnamese seafood is fifth place and garment in sixth place in terms of market share.

Last year, many additional agricultural products of Vietnam were allowed to officially sold in the UK, such as orange, pomelo, lychee and durian. Nguyen Hoai Nam, Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP) said that thanks to preferential tax rate in the British market, so far, shrimp products account for 70% of the total turnover of Vietnamese seafood exported to the UK, followed by tra fish products at 20%.

Nguyen Canh Cuong, former Minister Counsellor to the UK said that businesses need support from authorities in order to improve the effectiveness of the market approach strategy as well as increase business access to market information.

Thanh affirmed that in the coming time, his department will continue to increase the provision of market information, while working to raise awareness of sustainable development, green production and trademark building.

It will continue to work with trade partners to remove trade barriers, and strengthen trade promotion to bring more Vietnamese products to distribution chains and world's leading purchasing groups./.

RoK, Da Nang partners to promote investment in industrial parks

A business agreement on the development of industrial parks and urban zones has been inked by local industrial property developer - the Sai Gon Da Nang JSC (SGD) and the Korea CEO Summit organisation, aiming at attracting yet more foreign direct investment projects to the central city of Da Nang.

SGD General Director Mai Cong Ho said the business deal will focus on funding for SGD’s projects and restructuring and designing of urban and industrial park real estate projects in Da Nang city.

He said the two partners also agreed to draw more FDI flow to industrial parks and business promotions in the city.

Ho said SGD has been developing four residential urban and two industrial park projects, of which Lien Chieu and the expanded Hoa Khanh amount to 67 projects worth 850 million USD in FDI and 20 trillion VND in domestic investment, creating 9,000 jobs.

SGD, a member of Sai Gon Investment Group, also plans to join investment in new parks in Hoa Ninh and Hoa Nhon in Hoa Vang district, as well as mega projects of the Free Trade Zone, Lien Chieu deep-sea port and international logistics centre in Da Nang.

According to the city’s Hi-Tech park and the Industrial Zones Authority (DHPIZA), a supportive industries park across a 58.5ha site is looking for investment from domestic and foreign businesses.

Korean giant investor Samsung debuted the Samsung Innovation Campus (SIC) at the city’s Duy Tan Private University and is supporting two businesses – Trung Nam Group and Tan Long Paper and Package Company – in building the first smart factories in the city.

The Republic of Korea’s LG Electronics also introduced its R&D centre – the second in Vietnam – in Da Nang.

RoK investors have poured 371 million USD across a total of 378 projects, in IT and communications, hi-tech industries, automation, workforce training in the semiconductor sector and AI, in the city./.

Tien Giang works to green up agricultural sector

The Mekong Delta province of Tien Giang has taken solid steps to green up its agricultural sector towards the goal of protecting the environment and enhancing the quality, economic value and competitiveness of local farm produce.

Identifying the development of green agricultural production as an inevitable trend in sustainable agriculture, in recent years, the local agricultural sector has intensified efforts to encourage businesses, cooperatives, and farmers to engage in sustainable agricultural practices, minimizing environmental pollution and ensuring safety for both producers and consumers. Support policies and projects to promote agricultural production towards VietGAP standards have been implemented in 181 farming facilities covering 2,456 hectares.

According to Tran Hoang Nhat Nam, Vice Director of the provincial Department of Agriculture and Rural Development, the application of good agricultural practices has had a strong impact on people's awareness and responsibility in production, limiting the use of fertilisers and pesticides in the cultivation process as well as the use of banned substances in livestock farming and aquaculture, thus contributing significantly to reducing the rate of residues of pesticides, chemicals, and banned antibiotics on agricultural products.

Responding to the province’s policy, local agricultural cooperatives have constantly made efforts to change towards green production.

Tran Thanh Phong, Director of My Phong Cooperative in My Tho city, said that her facility has 66 hectares of green-skinned pomelo, including 30 VietGAP certified hectares that produce 35 tonnes per hectare for export to the Republic of Korea.

Tran Van Buong, Director of Tan Dong Safe Vegetable Cooperative, said that thanks to applying green farming process, the firm has provided 1.5-2 tonnes of vegetables to the domestic market each day, and more than 4 tonnes to Japan and the RoK each week.

Despite its achievements in the field, Tien Giang has still worked hard to further green up its agricultural sector, paving the way for sustainable development and enhancing competitiveness in the international market.

Nam said that his department has implemented many projects to shape the development of green, organic, and circular agriculture, high-tech agriculture, safe production towards GAP standards, and reduction of greenhouse gas emissions following the one-million-hectare low emission rice project of the Ministry of Agriculture and Rural Development, while popularising VietGAP standards and good farming practices in aquaculture, and tracing the origin of aquaculture products.

Tien Giang currently has more than 394 hectares of aquaculture area certified with VietGAP and ASC standards.

The province has also encouraged local enterprises to produce and process products that adapt to the green criteria of the market.

Vo Van Lap, Director of the Tien Giang Rural Development Sub-Department, said that the One Commune One Product (OCOP) programme launched by the Ministry of Agriculture and Rural Development is a foundation for the local agricultural sector to develop green production.

The programme has supported the development of the rural economy, focusing on developing regional specialty products associated with promoting advantages in production conditions, raw material areas and traditional culture, helping to increase product value and enhance product reputation, brand and competitiveness in the market, he said.

To date, Tien Giang has had 299 OCOP products, including 97 4-star and 202 3-star products by 26 cooperatives, 48 enterprises and 72 business households.

Lap said that in the coming time, Tien Giang will continue follow the green production direction, aiming to achieve modern, clean, and sustainable organic agriculture, improving quality, added value and competitiveness of local agricultural products./.

Int'l electronics, smart appliances expo opens in Hanoi

The Vietnam International Electronics and Smart Appliances Expo (IEAE) 2024 opened in Hanoi on October 30.

Covering 6,000 sq.m, the IEAE exhibition brought together over 260 exhibitors from China and Vietnam, presenting advanced technologies and innovative products. The expo will include consumer electronics, mobile devices, smart wearables, computers, smart home appliances, and electronic components.

The exhibition, running until November 1, is expected to draw more than 10,000 visitors and industry experts.

Speaking at the opening ceremony, Deputy Director of the Department of Asian-African Markets under the Ministry of Industry and Trade (MoIT) To Ngoc Son said that Vietnam has become an important link in the production and supply chains in the region and the world in the fields of electronics, household appliances and smart devices.

In 2023, Vietnam's export and import turnover of computers, electronic products and components reached 57.3 billion USD and 88 billion USD, respectively, accounting for more than 16% of Vietnam's total export turnover and more than 26% of Vietnam's total import turnover.

In the first nine months of 2024, the export and import turnover of these groups of goods reached 52.8 billion USD and 79.1 billion USD, respectively, accounting for nearly 18% of Vietnam's total export earnings and more than 28% of Vietnam's total import turnover.

Vietnam, recognised as a rising economic star in Southeast Asia, has experienced rapid growth, particularly in the electronics and household appliance sectors. Its strategic location, abundant labour force, and favourable investment environment have attracted international companies to establish factories and invest in the country.

According to the MoIT, the Vietnamese electronics industry has shown steady expansion, with a market size that continues to grow. By hosting the IEAE exhibition, Vietnam aims to further energise its electronics market, driving growth in this dynamic field.

As one of Southeast Asia's most influential electronics and home appliance exhibitions, the IEAE has drawn the participation of prominent companies and brands such as Bear Electric Co., Ltd (BEAR), Foshan Shunde Stelang Electric Appliance Co., Ltd, and Cixi Beilian Electrical Appliance Co., Ltd./.

Ninh Thuan’s southern key economic zone drives regional growth

In just three years since its inception, the southern key economic zone in the south-central province of Ninh Thuan has become a powerhouse, attracting major investments and propelling local development.

The fledgling economic zone, formed under Resolution 15-NQ/TU of the provincial Party Committee on January 11, 2022, is divided into four sub-areas dedicated to industry-energy-seaports, tourism-supporting services, hi-tech agriculture, and biodiversity conservation and forestry development, respectively.

Chairman of the provincial People's Committee Tran Quoc Nam said between 2021 and 2023, the zone boasted an average annual growth rate of 13.3%, eclipsing the provincial average of 9.29%. It accounted for over 22.5% of Ninh Thuan's gross regional development product (GRDP).

Notably, it has become a magnet for renewable energy enterprises, with 33 projects generating a combined capacity of 1,935 MW, or over 40% of the province's total operational energy capacity. Industrial parks, coastal tourism areas, and new urban developments are also taking shape, transforming the zone into a coordinated hub of activity.

Nam said local authorities are expediting ongoing construction projects and enhancing supervision to address challenges, with the ultimate goal of establishing the province as a national energy and renewable energy hub.

In a call for energy self-sufficiency, Le Chi Hiep, former chair of the interdisciplinary council on environment, resources, and energy at Vietnam National University-Ho Chi Minh City, has underscored the vital importance of a skilled domestic workforce. His message is clear: to reduce dependence on imported energy, Vietnam must ensure it has the capability to operate home-grown projects.

A well-trained domestic workforce will not only drive the development of supporting industries but also foster a sustainable supply chain. This includes equipment manufacturing, component production, and maintenance services, allowing local businesses to delve deeper into the renewable energy sector and contribute significantly to the localisation process.

The National Power Development Plan VIII champions the development of domestic renewable energy projects. However, for these initiatives to thrive, a highly skilled local workforce is indispensable. From effective implementation and construction to seamless operation, Vietnamese experts must be at the helm.

The plan also identifies renewable energy as a cornerstone of Vietnam's national energy independence strategy.

The province is already witnessing the fruits of its labor. As of September, it is home to 11 wind power plants and 35 solar energy projects, boasting total capacities of 667MW and 2,466MW, respectively. All these projects are now commercially operational, demonstrating the tangible progress made in the renewable energy sector.

Efforts are also underway to diversify tourism services, create high-end coastal destinations, and advance hi-tech agriculture. The province is also embracing digital transformation, smart urban planning, and administrative reforms to improve service quality and efficiency for citizens and businesses.

With these concerted efforts, Ninh Thuan aims to achieve an annual average growth of 25-26% during the 2024-2025 period. The economic structure is set to shift, with industry and construction contributing 57-58%, tourism and services 18-19%, and agriculture and fisheries accounting for 24-25%.

By 2025, the zone is expected to contribute 28-29% of the province's GRDP, cementing its status as the driving force behind Ninh Thuan's economic development./.

Digital transactions at many banks reach up to 98%: workshop

Digital transactions at many commercial banks have reached a rate of 97-98%, with the banking sector maintaining annual double-digit increases in both transaction volume and value, said Deputy Governor of the State Bank of Vietnam Pham Tien Dung at a recent workshop.

At the Smart Banking 2024 workshop and exhibition held in Hanoi on October 29, Dung noted that a legal framework has been in place to facilitate the industry’s technological adoption. Notably, from October 1, banks allow account openings using chip-enabled citizen ID cards and fully implement online lending and guarantees. This legal foundation is crucial for the technological integration of the banking sector, he said.

Nguyen Quoc Hung, Vice Chairman and General Secretary of the Vietnam Banks’ Association (VNBA), said the sector’s digital transformation is being driven by technologies such as big data, artificial intelligence, machine learning, augmented reality, and open banking platforms.

While accelerating digital transformation, ensuring operational safety and information security is a priority, he underscored. Hung pointed out that the Information Technology Development Strategy and the Digital Transformation Plan for the Banking Industry, along with regulatory frameworks like the Law on Credit Institutions 2024, the Decree on Non-Cash Payments and various circulars governing electronic account opening, guarantees, lending and information security, have collectively driven significant advancements in the sector's digital transformation efforts.

The surge in digital transactions reflects the effectiveness of these efforts, with some banks now conducting over 90% of transactions through digital channels. More than 80% of adults in Vietnam hold payment accounts.

Notably, the credit institution system has amassed around 200 million customer records, including 46.7 million biometric-verified accounts. The financial switching and clearing system processes over 20 million transactions daily, while the interbank electronic payment system handles an average daily transaction value exceeding 830 trillion VND (approximately 32.5 billion USD), showcasing an impressive annual growth rate of 23.5%.

The Smart Banking event aimed to connect top finance-banking leaders and experts, providing deep insights into the latest technologies and identifying breakthrough strategies for building a safe and sustainable digital future for the banking industry.

Highlighting the importance of safety measures and sustainable development strategies in the sector within the digital space, it featured specialised sessions, practical cybersecurity drills, and a 27-booth international exhibition./.

VNA/VNN/VNS/VOV