Businesses a motive to develop Vietnam – US ties: Deputy PM | Business | Vietnam+ (10/31/23)

TNT:

Harambe:  Businesses a motive to develop Vietnam – US ties: Deputy PM | Business | Vietnam+ (10/31/23)

Hanoi (VNA) – The ties binding Vietnam and the US will be further strengthened as both sides hold huge potential for economic, trade and investment collaboration following the upgrade of the bilateral relations to a Comprehensive Strategic Partnership in September, Deputy Prime Minister Tran Luu Quang said on October 31. 

Attending the US – Vietnam Business Summit 2023 in Hanoi, Quang laid a stress on the quantum leap in the bilateral ties with 10 cooperation pillars, and expressed his wish that businesses from both sides will boost economic-trade cooperation, enhance the trade of products of each other strengths, support each other to engage in the new value chain, and strive to raise the two-way trade revenue to 200 billion USD in the coming time.

With the hope that the US will enter the list of the top 10 largest investors in Vietnam, Quang recommended US businesses branch out larger-scale projects, helping Vietnam get access to investment sources as well as green and sustainable financial funds. 

He also asked firms of both sides to contribute their voice in the call for the recognition of Vietnam’s market economy status, which he called as important to bolstering the economic-trade-investment relations between the two nations into an effective, equal, healthy and sustainable fashion.

The official stressed that they create a source of strength to further develop the bilateral Comprehensive Strategic Partnership.

He also spoke highly of the initiatives to facilitate the operation of foreign businesses in Vietnam, including those from the US, and affirmed that the Vietnamese Government will continue dialogues with the enterprises so as to promote the sound relations between the two nations. 

Meanwhile, Chairman of the American Chamber of Commerce in Vietnam (AmCham Vietnam) John Rockhold stressed the recent upgrade of the bilateral ties provided a wonderful opportunity for the bilateral cooperation to complete policies and business environment to attract new investors for development.

Cooperation progress in key areas mentioned at the summit will help fine-tune business environment and enhance the role of the private sector, helping ensure socio-economic development and foster prosperity in Vietnam, he added.

Senior Director of AmCham’s Southeast Asia John Goyer underscored that the business associations of both sides are responsible for elevating the robust economic ties into a new height and joining hands with the two Governments to overcome existing challenges.

The US – Vietnam Business Summit 2023 sharpened focus on Vietnam’s development priorities, including removing barriers to mobilising resources for business and production, promoting transition to clean and renewable energy, and enhancing sustainable investment .

In the morning the same day, Quang hosted a reception for representatives from several US firms, including AES, Apple, Intel, Mastercard, KKR, J.P Morgan, and Asia Group advisor, during which he hailed the US business association’s contributions to Vietnam’s development, and affirmed that Vietnam always rolls out a red carpet for US firms.

US is currently the second largest trade partner of Vietnam, while Vietnam has become one of the 10 biggest trade partners of the US and an important link in the US’s global supply chain.

Nearly 30 years after the establishment of diplomatic relations, bilateral trade increased 300 folds to 124 billion USD, making the US the biggest importer of Vietnam. 

The US is injecting 11.8 billion USD in 1,306 valid projects in Vietnam, ranking 11th among the foreign investors in the Southeast Asian country.

https://en.vietnamplus.vn/businesses-a-motive-to-develop-vietnam-us-ties-deputy-pm/270479.vnp

Vietnam"s next phase of growth on horizon | VIR (10/31/23)

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Harambe:  Vietnam"s next phase of growth on horizon | VIR (10/31/23)

Vietnam is expected to enter a new phase of growth as the country is looking to unlock its tremendous potential and capitalise on the growing interest of international business leaders and investors.

Within the framework of Vietnam Venture Summit 2023 on October 30, the Vietnam National Innovation Centre (NIC) and Golden Gate Ventures launched a report outlining the country’s growth trajectory. “Road to Greatness: Rewriting Vietnam’s Growth Playbook” pulls back the curtain on Vietnam’s economic resilience and examines what is under the hood of Vietnam’s growth in the next few years.

Unlike many other growth markets around the world and particularly in Asia, Vietnam has written its own playbook for success, capitalising on both a long-term view of growth and an agility to move with the changing economic environment to create a resilience that has withstood the challenges of 2023.

Since 2018, global manufacturers have increasingly shifted production to Vietnam due to escalating global politics, with the momentum building across 2021 all through 2023. This was buoyed by Vietnam’s focus on creating an increasingly supportive business environment, its well-educated workforce, low labour costs and favourable global trade agreements. This five-year track record has positioned Vietnam as the natural answer to emerging global supply chain issues. As the global supply chain shift continues with manufacturing as a key driver, Southeast Asia will be the standout winner, with Vietnam leading its neighbours.

2023 has also marked a new phase in Vietnam’s position as a global economic powerhouse as it strengthened strategic global partnerships with Israel, China, the Philippines and Singapore. Most recently, it elevated its relations with the United States to a Comprehensive Strategic Partnership, marking a new era of enhanced bilateral cooperation. Taken in totality, these trade agreements create a long-term runway for Vietnam not only as a leading manufacturing hub but as a centre for high-value foreign direct investment.

“In a year that has proven challenging for most economies, Vietnam has shifted its economic development into high gear, cementing itself as the new epicentre of Asia’s growth. With a firm hold on the global supply chain, continued investment from multi-nationals, and a thriving startup ecosystem that is feeding the world’s appetite for innovation, Vietnam finds itself in a unique position of writing a new playbook for growth that other markets will follow,” said Vinnie Lauria, founding partner at Golden Gate Ventures.

A testament to Vietnam’s steady rise as an economic power is the country’s biggest line-up of international listings. On the heels of the international listings of Vinfast and Society Pass in 2023, the next 18 months will be dominated by anticipated listings of VNG, TIKI and CrownX.

“Vietnam has swiftly risen to prominence in Asia and continues to be a key area of focus for the NYSE,” said Delano Musafer, Head of Asia-Pacific Capital Markets at the New York Stock Exchange. “I am excited by the number of Vietnamese companies showcasing continued innovation, growth and scalability.”

According to the report, five key sectors are predicted to dominate Vietnam’s growth, including healthtech, fintech, tech-enabled logistics, green economy and edtech. Healthcare spending per capita in Vietnam has tripled over the last five years with the rising consumer class and influx of expatriates into the country. The transaction value of the fintech sector is set to grow at an aggressive 15 per cent CAGR over the next four years to address 70 per cent of the population that still remains unbanked.

Meanwhile, in the tech-enabled logistics segment, asset-light models have become the game-changer. On the green economy front, Vietnam is leading Southeast Asia’s clean energy drive with wind and solar power innovations, while edtech is a natural growth sector with the increased attention that Vietnam has gained as an investment hub.

https://vir.com.vn/vietnams-next-phase-of-growth-on-horizon-106491.html

Iran and Vietnam News Posted by TNT Members 9-11-2023

TNT:

Harambe:  Iran Intends To Replace Dollar With Local Currencies For Travelers | IranIntl (9/10/23)

The Central Bank of Iran intends to offer regional currencies to citizens traveling to neighboring countries, instead of selling them US dollars.

Iran this year provided Iraqi dinars, instead of US dollars, to hundreds of thousands of pilgrims who visited Iraq at the end of August and early September for Shiite religious ceremonies. Now it intends to use the same tactic for providing foreign currency to travelers visiting regional countries.

The Iraqi dinars became available to the cash-strapped Iranian government when the United States in June allowed Baghdad to repay the equivalent of $2.7 billion from accrued energy import debts. It was reported at the time that part of funds will be for Iran to spend on Muslim pilgrimages to Saudi Arabia and Iraq. Apparently, a portion of the released funds were in Iraqi dinars.

Iran is critically short of hard currencies despite much higher oil exports in recent months in the face of US sanctions. 

The chairman of the central bank Mohammad-Reza Farzin told local media on Saturday that Iran intends to use the Turkish lira or the UAE dirham for regular tourism based on the model it employed with the recent pilgrimage to Iraq.

The US dollar and other top currencies are near all-time highs in Tehran’s free market, while the government could sell regional currencies to tourists, possibly at more advantageous rates, converting regional currencies it earns from trade into Iranian rials for government expenses.

Farzin added that the central bank is in the process of expert analysis and planning for the move.

https://www.iranintl.com/en/202309106271

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Harambe:  Biden Showcases Boeing, Chip Deals as US and Vietnam Draw Closer |  Bloomberg (9/11/23)

US President Joe Biden announced a series of semiconductor, aerospace and infrastructure deals with business leaders in Vietnam, part of a push by the White House to deepen economic integration with Indo-Pacific nations that can provide a bulwark to China.

Biden touted a “new stage” in the ties between the two countries to a meeting of officials and with executives from Vietnam and top US firms including Boeing Co., Intel Corp. and Marvell Technology Inc. in Hanoi. “My message today is quite simple: Let’s keep it up,” he said.

The announcements are intended to solidify Vietnam’s decision a day earlier to upgrade its relationship with the US to a “comprehensive strategic partnership,” the same designation it uses for China and India. The hope in Washington is that by boosting ties with nations in Southeast Asia, the US can increase its influence in a region that sometimes chafes at Beijing’s assertiveness. 

Headlining the deal announcements was a memorandum of understanding between Vietnam Airlines JSC and Boeing to purchase 50 737-MAX aircraft, a tentative agreement that would be valued around $7.88 billion and allow the carrier to eventually replace aging Airbus AE-A321 planes. Any delivery could be years off, however, as Boeing has sold out most of its production slots through the end of the decade. 

Read more: Vietnam Air, Boeing Near $10 Billion Deal for 737 Max Jets

Vietnam had previously announced plans by US-based Amkor Technology Inc. to build a $1.6 billion factory in Bac Ninh province, while Synopsis Inc. and Marvell Technology are both working to establish semiconductor design centers in Vietnam. 

The Biden Administration has prioritized improving the semiconductor supply chain over concern the US has become too closely reliant on Taiwan’s semiconductor industry.

Technology firms including Microsoft Corp. and Nvidia Corp. announced new programs to make emerging artificial intelligence programs more accessible to Vietnamese businesses, while Meta Platforms Inc. unveiled a new effort to help small and medium businesses in the country use digital tools. Apple Inc. has also expanded its footprint in Vietnam as it diversifies its supply chain beyond China. 

Other announcements focused on traditional infrastructure. The US president has increasingly sought to promote US financing for projects in the developing world to counter China’s Belt and Road Initiative, including a new rail, natural gas and fiber corridor announced earlier this week at the G-20 summit in New Delhi that would link India to Europe through the Middle East.

In Vietnam, SSA Marine Inc. announced it would partner with Vietnam’s Gemadept Corp. on a proposal for a $6.7 billion port and logistics center in southern Vietnam. Massachusetts-based Australis Aquaculture LLC signed a memorandum of understanding to spend $100 million to expand its operations in Van Phong Bay.

And one announcement was focused on the future of Vietnamese money – literally.

Crane NXT Co. announced its plans to partner with Vietnam’s Hi-Tech Polymer Co. Ltd. to develop the next generation of bank notes for the State Bank of Vietnam.

Future commercial deals with Vietnam may become even more possible after the US pledged to review Vietnam’s formal request to review its market economy status. A favorable review by US authorities could decrease duties on some imports from Vietnam.

https://www.bloomberg.com/news/articles/2023-09-11/biden-showcases-boeing-chip-deals-as-us-and-vietnam-draw-closer

Tishwash:  Factbox: US, Vietnam reach deals on planes, tech and human rights as Biden visits

The United States and Vietnam announced new deals and partnerships as U.S. President Joe Biden visited Hanoi on Sunday including billions of dollars in plane orders, heightened human rights discussions, digital economy education and semiconductor design centers.

Here are the highlights:

BOEING AND VIETNAM AIR

Vietnam Airlines (HVN.HM) has agreed to buy about 50 Boeing (BA.N) 737 Max jets in a deal valued at about $7.5 billion. The deal will support "over 33,000 direct and indirect jobs" in the U.S., the White House said in a statement.

AMKOR, MARVELL, SYNOPSIS INVEST IN VIETNAM

Arizona's Amkor Technology (AMKR.O) will start operations at a new $1.6 billion factory in Bac Ninh Province in October, the White House said. Delaware's Marvell Technology (MRVL.O) and California's Synopsys (SNPS.O), will invest in semiconductor design and incubation centers in Ho Chi Minh City and Saigon, respectively.

AI FOR EMERGING MARKETS

Microsoft (MSFT.O) will make a "generative AI-based solution tailored for Vietnam and emerging markets," the White House said, while NVIDIA (NVDA.O) will partner with Vietnam's FPT (FPT.HM), Viettel and Vingroup (VIC.HM) on AI in the country.

HUMAN RIGHTS

The two countries have an "enhanced commitment" to talking about human rights, the U.S. said, building on the decades-old U.S.-Vietnam Human Rights Dialogue, an annual meeting.

The United States and the United Nations recently criticized Vietnam's detention of members of an environmental group as part of a wider trend of Vietnamese authorities targeting free speech.

ILLEGAL FISHING

The U.S. is helping to "build Vietnamese capacity to fight regional and international transnational crime," the White House said, including "illegal, unreported and unregulated fishing."

China and Vietnam have a long-simmering dispute about fishing and other rights in the South China Sea; Beijing claims the waters almost entirely, ignoring other nations' exclusive economic zones.

US WAR LEGACY

The U.S. will expand its efforts to address lingering damage from the Vietnam war, which ended in 1975, including increasing funding from $183 million to $300 million for a dioxin remediation project in the Bien Hoa Air Base area.

Dioxin is a component of “agent orange” toxic herbicides sprayed by the U.S. during the war.

The U.S. will also provide an additional $25 million to clear unexploded ordnances in Vietnam; these efforts have totaled more than $230 million since 1993, the White House said.  link

Vietnam and Indonesia News Posted by Harambe at TNT 9-4-2023

TNT:

Harambe:  Vietnam PM meets with IMF Managing Director in Indonesia  | Vietnam+ (9/4/23)

Prime Minister Pham Minh Chinh met with Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva on the sidelines of the 43rd ASEAN Summit and Related Meetings in Jakarta, Indonesia, on September 4.

Georgieva highlighted the Association of Southeast Asian Nations (ASEAN)’s and Vietnam’s positive economic growth, which, she said, has significantly contributed to spurring the sustainable growth of the global economy.

For his part, Chinh thanked the IMF and the Managing Director for their support to Vietnam in consultancy and policy making, helping the country stabilise the macro-economy and finance-monetary sector, and recover the national economy.

Lauding the fund’s role in promoting economic recovery after the COVID-19 pandemic and setting forth major orientations to remove difficulties and challenges, the PM said Vietnam stays ready to work together with the IMF to implement the agenda, focusing on the three pillars of stabilising the macro economy, supporting vulnerable countries and spurring growth.

Regarding the global economic situation, Georgieva pointed to a range of difficulties and challenges, which have also affected Vietnam.

Chinh also noted that the world economy is being impacted by many factors, including the lingering effects of the COVID-19 pandemic, the conflict in Ukraine, monetary tightening by many economies, supply – demand decline, and production and business stagnation.

To overcome the current difficulties and challenges, the PM and IMF Managing Directoragreed on the need for comprehensive solutions to ensure peace and stability.

They emphasised the importance of strengthening international solidarity, promoting multilateralism and continuing to boost international integration.

They shared the view that countries need to join hands to find new drivers for growth including green growth, circular economy, and sharing economy as well as the need to mobilse resources to expand production and business, create more jobs, promote innovation and start-ups, and not to politicise economic and scientific and technological issues.

The two sides agreed to strengthen the signing and negotiation of free trade agreements, remove trade barriers to facilitate the global circulation of goods; handle issues peacefully and cooperatively; promote the mobilisation of resources for development through public-private partnership.

The PM emphasised that in the context of complex global economic developments and potential risks, Vietnam will continue to implement the above mentioned groups of solutions to maintain macroeconomic stability, control inflation, maintain growth momentum, ensure major balances of the economy, and control public debt.

Vietnam will continue to implement flexible and effective monetary policy and fiscal policy with key focuses, promote both domestic and foreign investment, especially investment from the state sector. Vietnam will also coordinate and call on major economic hubs including ASEAN, to join hands in implementing the solutions.

The IMF Managing Director said that in the coming time, the IMF will continue to have solutions to help member economies increase their resilience against future shocks.

In the current trend of fragmentation in the world economy, the IMF hope that ASEAN in general and Vietnam in particular, on the basis of economic growth achievements,will promote its role in connecting economies and have a stronger voice in promoting global cooperation.

Chinh affirmed that Vietnam is ready to join hands with the IMF to implement measures to promote economic recovery.

Vietnam hopes that the IMF will continue to support Vietnam in policy consulting and making, technical support so that Vietnam can achieve its set development goals.

On this occasion, Chinh invited Georgieva to visit Vietnam soon and the latter happily accepted the invitation.

https://en.vietnamplus.vn/pm-meets-with-imf-managing-director-in-indonesia/267351.vnp

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Harambe:  Vietnam, Indonesia eye comprehensive strategic partnership  | Vietnam+ (9/4/23)

Vietnamese Prime Minister Pham Minh Chinh met with Indonesian President Joko Widodo in Jakarta on September 4 on the sidelines of the 43rd ASEAN Summit and Related Meetings.

Both leaders spoke highly of the positive development in the strategic partnership between Vietnam and Indonesian since their meeting in Labuan Bajo in May.

They affirmed that the two countries will step up all-level delegation exchanges in the time ahead, setting milestones for the 10th anniversary of the strategic partnership in 2023 and looking towards the 70th founding anniversary of the bilateral diplomatic relations and the 80th anniversary of Vietnam’s National Day and Indonesia’s Independence Day in 2025.

The two sides agreed to effectively optimise bilateral cooperation mechanisms and coordinate to well implement signed agreements, including bringing the signed document on maritime cooperation into effect soon, creating momentum to elevate the strategic partnership to a new height, towards a comprehensive strategic partnership in the near future.

PM Chinh suggested the two countries maintain their trade ties in a more balanced way, striving to raise the bilateral trade revenue to 15 billion USD by 2028, and suggested the two governments encourage businesses of the two countries to increase investment, especially in such new areas as digital economy, green economy, energy transition and e-vehicle ecosystem development.

He also called on Indonesia ease the application of trade remedy measures against Vietnamese goods, thus facilitating the access of farm produce and Halal products originating from Vietnam to the Indonesian market.

The two countries should cooperate in new, strategic supply chains and enhance cooperation in the areas in which both sides are interested, he said.

The PM suggested Indonesia recognise Vietnam’s efforts in monitoring the operations of fishing boats, and minimising illegal, unreported, and unregulated (IUU) fishing activities.

President Widodo welcomed PM Chinh to Indonesia to attend the 43rd ASEAN Summit and related meetings.
He thanked and highly appreciated Vietnam's support for and active assistance to Indonesia's ASEAN Chairmanship in 2023.

President Widodo welcomed Vietnamese businesses, including VinFast, to invest in Indonesia and promote cooperation in the development of renewable energy and electric vehicle ecosystem.

The President suggested the two countries strengthen marine cooperation, and sustainable fishery cooperation and soon sign a Memorandum of Understanding on fishery cooperation.

Talking about regional and international issues, PM Chinh affirmed that Vietnam supports and works closely with Indonesia to ensure the success of the 43rd ASEAN Summit and the ASEAN Chairmanship Year 2023, contributing to strengthening solidarity, unity, and centrality of ASEAN and maintaining peace, stability, cooperation, and common development in the region.

Regarding the East Sea issue, the two leaders reaffirmed their support for maintaining ASEAN's solidarity and agreed principles in the East Sea issue, especially the early  finalisation of an effective Code of Conduct in the East Sea (COC) between ASEAN and China

In line with international law and the 1982 United Nations Convention on the Law of the Sea (UNCLOS). PM Chinh conveyed the invitations of Party General Secretary Nguyen Phu Trong and President Vo Van Thuong to President Widodo to visit Vietnam soon. President Widodo accepted the invitations with pleasure.

https://en.vietnamplus.vn/vietnam-indonesia-eye-comprehensive-strategic-partnership/267350.vnp

Harambe:  Vietnam central bank governor earns 'A+' in Global Finance report - VnExpress (9/4/23)

Hong, 55, is one of only three central bank governors in the world that was rated A+ by the U.S.-based magazine.

The other two were the Reserve Bank of India Governor Shaktikanta Das and Thomas J Jordan, Chairman of the Governing Board of the Swiss National Bank.

Hong became Governor of the State Bank of Vietnam (SBV), appointed by the legislative National Assembly, in November 2020.

She holds a master's degree in Developmental Economics and started working at SBV in 1991, where she held several management positions.

The Central Banker Report Cards, published annually by Global Finance since 1994, grade the central bank governors of 101 key countries, territories, and districts, including the European Union, the Eastern Caribbean Central Bank, the Bank of Central African States, and the Central Bank of West African States.

Grades are based on a scale from A to F for success in inflation control, economic growth goals, currency stability and interest rate management, with an "A" representing an excellent performance down through an "F" for outright failure, according to a Global Finance press release.

The full Central Banker Report Cards 2023 report and grade list will appear in Global Finance's October issue print editions, as well as online at GFMag.com.

"Fighting inflation, which has been fueled by pent-up demand and disrupted supply chains, has everyone turning to their central bankers for help," said Global Finance founder and editorial director Joseph Giarraputo.

Governors that earned an A grade included Brazil's Roberto Campos Neto, Israel's Amir Yaron, Harvesh Kumar Seegolam of Mauritius, New Zealand's Adrian Orr, Paraguay's Jose Cantero Sienra, Julio Velarde of Peru, Chin-Long Yang of Taiwan, and Uruguay's Diego Labat.

https://e.vnexpress.net/news/business/economy/vietnam-central-bank-governor-earns-a-in-global-finance-report-4648918.html

Vietnam and Iran News Posted by Harambe at TNT 9-3-2023

TNT:

Harambe:  New e-visa policy to help lure more foreign visitors | Vietnam+ (9/3/23)

. The e-visa policy, which took effect from August 15, is expected to help Vietnam attract a hike in the number of international visitors right in the autumn-winter tourist seasonof 2023, said Do Van Hao, Deputy Chief of Police at Tan Son Nhat International Airport in Ho Chi Minh City.

According to Hao, the resolution issued by the Government on August 14 on granting e-visas to citizens of all countries and territories represents a breakthrough and reaffirms the Vietnamese Government's commitment to continuing the policy of openness to foreigners, creating favourable conditions in terms of visa, entry and exit procedures for them, especially those visiting Vietnam for the purposes of working, investment, and tourism.

The number of foreign visitors, especially those from Europe and the Americas, is projected to increase sharply after the Autumn-Winter tourist season starts (from late September to early October), Hao said.

Tan Son Nhat International Airport put automatic entry systems (Autogate) into operation in early August, helping reduce the time for security check to about 30-40 seconds per passenger, the official noted.

However, Director of the municipal Department of Tourism Nguyen Thi Anh Hoa said a survey conducted by the agency at travel agencies found that there hasn't been a significant change in tourist numbers to Vietnam following the implementation of the new e-visa policy.

Statistics reported by local hotels show that the number of room reservations for September reached around 70% of the total capacity.

Strong growth is expected in both international and domestic visitors during September and towards the end of the year, Hoa said.

Sharing Hoa’s opinion, General Director of Viet Tourism Communication JSC Pham Phuong Anh predicted that the new e-visa policy may increase the number of international tourism arrivals to Vietnam served by the company by 2-25% per year.

According to the Government’s decision, foreigners using e-visas are permitted to enter or exit Vietnam via 13 air border gates, 16 land border gates, and 13 sea border gates

https://en.vietnamplus.vn/new-evisa-policy-to-help-lure-more-foreign-visitors-official/267245.vnp

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Harambe:  Vietnam to host Biden visit and elevate US links amid rising China assertiveness in South-East Asia | Brisbane Times (9/2/23)

The United States and Vietnam are poised to significantly enhance their economic and technological ties, bringing the former wartime foes closer at a time of increased Chinese assertiveness in South-East Asia.

The deal, expected to be announced when US President Joe Biden makes a state visit to Vietnam next weekend, is the latest step by his administration to deepen relations in Asia.

For Hanoi, the closer relationship with Washington serves as a counterweight to Beijing’s influence.

The establishment of a “comprehensive strategic partnership” will give the United States a diplomatic status that Vietnam has so far reserved for only a handful of other countries: China, Russia, India and South Korea. The deal was confirmed by a senior Biden administration official and two people in Hanoi familiar with the matter.

Tightening the American relationship shows Hanoi is willing to risk angering Beijing but sees the move toward Washington as necessary given how aggressively China is flexing its military muscle in the region, analysts said.

“If you have the United States on the same pedestal as China, that is saying a lot to Beijing, but also to the rest of the region and the world,” said Derek Grossman, a senior defence analyst at Rand Corporation and a former US intelligence officer.

“That’s saying the US-Vietnam relationship has come a long way since 1995”, when the two countries normalised relations.

The agreement, proposed by the Biden administration in recent months, flows from a US strategy to build economic and security partnerships in the Indo-Pacific that can serve as a bulwark against Chinese economic and military coercion.

For Vietnam, it “serves both symbolic and substantive purposes”, said Le Hong Hiep, a senior fellow at the Singapore-based ISEAS-Yusof Ishak Institute.

The agreement is expected to lead to greater economic activity between the two countries, as the United States seeks to diversify its manufacturing supply chains away from China, and as Vietnam aspires to develop advanced technologies. American semiconductor firms have expressed “a willingness to support them in that ambition”, said a senior Biden administration official, speaking on the condition of anonymity because the agreement has not yet been announced.

The United States is now the top destination for exports from Vietnam, which has made a dramatic economic transformation over the past two decades.

VinFast, the country’s leading electric vehicle manufacturer, is now selling its sleek SUVs in California and recently held an initial public offering of its stock on Nasdaq.

American companies have likewise shown a willingness to do business: Apple and Google suppliers have invested heavily in new factories in Vietnam, and a major announcement is expected from Boeing, which said earlier this year that it intends to expand its footprint in the country.

 https://www.smh.com.au/world/asia/with-wary-eye-on-china-vietnam-to-host-biden-and-elevate-us-links-20230902-p5e1ht.html

Harambe:  Iran shopping gold as dedollarization trend accelerates - Mehr News Agency (9/3/23)

According to the data from the Islamic Republic of Iran Customs Administration, gold, worth over $265 million, accounted for more than one percent of all Iranian imports during the five month period. Iran has been quietly ramping up its foreign purchases of gold, adding over 4.1 tons of standard gold ingots to the country’s coffers in the first five months of the Iranian calendar year (March 21-August 22).

Both the Iranian state and private citizens appear to have been turning to gold recently, with the World Gold Council reporting in May that demand for gold coins and bars by Iranians had jumped dramatically, with investment soaring to 13 tons over the first months of 2023 – 26 percent more than the 10 ton five-year quarterly average, as citizens searched for solid stores of values amid inflation and sanctions-related pressures.

Iranian Trade Promotion Organization chief Mehdi Zeighami indicated that the bump in gold imports was related to eased regulations by the state late last year related to the return of export proceeds, which has led companies engaging in exports to import gold to pay their hard currency liabilities to Iran’s Central Bank.

“Imports of gold ingot are economical for businesses and we have tried to diversify methods used for repatriation of hard currency,” Zeighami explained, Sputnik reported.

The measures are a boon to the Iranian state, which has worked carefully to build up gold reserves and expand domestic extraction activities. This week, Ministry of Industry, Mines and Trade Department of Exploration Affairs director general Ebrahim Ali Molabeigi announced that the country discovered some 79 tons of untapped gold reserves worth $355 million in 2022 alone.

Iran has successfully used gold to deal with sanctions, using it in trade to avoid using dollars or becoming ensnared in Western financial institutions subjected to US and European sanctions and secondary restrictions. The country now has an estimated 340 tons in proven gold reserves, although exact data on gold held by the Central Bank are unknown.

Gold’s attractiveness as a store of value has climbed steadily over the decades, reaching close to $2,000 an ounce in public trading this week, amid inflation and uncertainty about the value of the dollar and other paper money, and the growing popularity of gold in countries’ international reserves after witnessing how reserves held in Western currencies can be frozen or transformed from a financial instrument into a weapon.

Speculation about the possible use of a gold-backed token of exchange by the BRICS bloc has served to further pique investor and government interest in the precious metal.

Earlier this year, Russian officials revealed that Moscow and Tehran were considering the use of a gold-backed ‘Persian Gulf token’ stablecoin. Financial experts said that idea, if realized could cause a potential “tectonic shift” in international finance, with serious implications not only for the dollar but for other fiat currencies around the world, since they could serve as “a very appealing safe haven alternative that cannot be weaponized against the owners and users of such tokens.”

https://en.mehrnews.com/news/205554/Iran-shopping-gold-as-dedollarization-trend-accelerates

"Vietnam News" Posted by ToyVP at KTFA 8-18-2023

KTFA:

Toyvp:  Central bank tells lenders to cut credit interest rates

By Dat Nguyen   August 15, 2023 | 10:00 pm PT

The State Bank of Vietnam has instructed banks to lower their lending interest rates by 1.5-2 percentage points to support economic recovery.

They are required have to report their interest reduction plans by Aug. 25, and the results must be reported by Jan. 8 next year, it said.

The central bank has cut its policy rates three times since the beginning of the year to bring down loan interest rates amid economic challenges.

Following that, banks have cut their deposit interest rates from more than 10% to around 7.5% now.

Loan interest rates too have come down by 1-2 percentage points so far this year.

https://e.vnexpress.net/news/business/economy/central-bank-tells-lenders-to-cut-credit-interest-rates-4642337.html

ToyVP:  Nghi Sơn and Bình Sơn refineries forge extensive cooperation for efficiency

August 16, 2023 - 15:51

The joint initiatives between NSRP and BSR encompass resource sharing, expertise exchange, technical and maintenance services, collaboration in raw material and oil product exchange.

HÀ NỘI — Nghi Sơn Refinery and Petrochemical LLC (NSRP) and Bình Sơn Refining and Petrochemical Joint Stock Company (BSR) on Tuesday signed a Memorandum of Understanding (MoU) for comprehensive cooperation with the aim of enhancing the operational efficiency of Việt Nam's two largest oil refineries.

The MoU outlines joint initiatives between NSRP and BSR, encompassing resource sharing, expertise exchange, technical and maintenance services, collaboration in raw material and oil product exchange, as well as jointly exploring business development prospects.

The collaboration between NSRP and BSR dates back to 2013, with successful undertakings during the construction and operation phases of the Nghi Sơn petrochemical refinery. Notable aspects of their partnership include professional training for new staff, resource sharing in operation and production, personnel provision, and laboratory support.

The MoU signing event reaffirms the long-standing cooperation between NSRP and BSR, bolstering their close relationship and operational efficiency in managing and running the refineries.

So Hasegawa, NSRP's General Director, lauded BSR's unwavering support and foresaw even stronger collaboration through the MoU's implementation.

The partnership of Nghi Sơn and Bình Sơn refineries, two leading entities in Việt Nam's petroleum industry, promises sustainable growth. Amidst the volatile global petroleum market, their cooperation is pivotal in achieving stable and optimized operations, particularly in meeting the growing energy demand, especially for gasoline oil.

BSR, primarily owned by Vietnam Oil and Gas Group (Petrovietnam) with a 92 per cent stake, manages Dung Quất Oil Refinery in Quảng Ngãi Province. Established in 2009, it jointly supplies 70 per cent to 75 per cent of the nation's petroleum product needs alongside NSRP.

NSRP, located in Nghi Sơn Economic Zone in Thanh Hóa Province, is a joint venture involving PetroVietnam, Kuwait Petroleum Europe, Idemitsu Kosan and Mitsui Chemicals. With a capacity of 200,000 barrels of crude oil/day, NSRP is a significant provider of petroleum products within Việt Nam and exports certain petrochemical goods to neighbouring nations. — VNS  LINK

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ToyVP:  PM proposes Vietnam & Israel boost cooperation in innovation and high-tech

Vân Nguyễn - August 17, 2023 | 08:30 GMT+7

Visiting Israeli Minister of Economy and Industry welcomed by PM in Hanoi on August 16.

Prime Minister Pham Minh Chinh receives Israeli Minister of Economy and Industry Nir Barkat in Hanoi on August 16. Photo: VGP

Prime Minister Pham Minh Chinh recommended that Vietnam and Israel further boost their cooperation in the fields of innovation and high technology while receiving Israeli Minister of Economy and Industry Nir Barkat in Hanoi on August 16, the Government News reported.

He also proposed that the two countries coordinate in organizing trade promotion and exchange activities and increase the export of products that are strengths of Vietnam, such as agricultural and seafood products, fruit and vegetables, processed food, and household appliances, to Israel.

The Prime Minister suggested that the two countries enhance the effective implementation of cooperative mechanisms, quickly implement the Vietnam-Israel Free Trade Agreement, and initiate negotiations for the signing of cooperative agreements in industry.

Minister Barkat said Israel is working to coordinate with Vietnam to quickly complete relevant procedures so that the Vietnam-Israel Free Trade Agreement can soon take effect.

He agreed with promoting connections between businesses in the two countries and fostering cooperation in the fields of high technology, medicine, the fight against desertification, marine development and aquaculture, and, especially, innovation.

https://en.vneconomy.vn/pm-proposes-vietnam-israel-boost-cooperation-in-innovation-and-high-tech.htm       Vietnam Today

ToyVP:  Shares volatile on higher liquidity

August 18, 2023 - 03:38

Việt Nam's stock market was experiencing a notably volatile phase on Thursday with continuous fluctuations in the indexes.

HÀ NỘI — Việt Nam's stock market was experiencing a notably volatile phase on Thursday with continuous fluctuations in the indexes.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index concluded on a bearish note, losing nearly 0.79 per cent to close at 1,233.48 points.

Market breadth was negative with 150 gainers and 320 losers.

Liquidity increased with more than one billion shares worth VNĐ25.6 trillion (US$18 million) being traded, up 18 per cent in volume and 22 per cent in value over Wednesday’s levels.

Similarly, the VN30 Index which tracks the top 30 shares by market cap and liquidity saw a decline of 0.73 per cent, closing at 1,247.82 points.

In the VN-30 basket, 10 stock roses and 19 stocks experienced a drop.

Among the major industry groups, retail, particularly in technology goods, holds significant prominence. Several gainers in this sector, such as Mobile World Investment Group (MWG), FPT Corporation (FPT), stood out with growth of 0.2 per cent and 1.1 per cent, respectively.

In addition, the electricity and food & beverage industries also displayed a relatively balanced correlation between increases and decreases. However, the real estate, construction, iron and steel, securities, oil and gas, and banking sectors were all in the red, indicating significant declines.

Banking group performed poorly with many losers such as Military Bank (MBB), Asia Commercial Bank (ACB), Bank for Investment and Development of Vietnam (BID), VPBank (VPB), Sacombank (STB), Tiên Phong Bank (TPB), Techcombank (TCB).

Petroleum stocks also suffered with losers such as Việt Nam National Petroleum Group (PLX), PVPower (POW), PetroVietnam Gas JSC (GAS), PetroVietnam Drilling & Well Services Corporation (PVD), PV OIL (OIL), Bình Sơn Refinery (BSR) and PetroVietnam Technical Services Corporation (PVS).

On the Hà Nội Stock Exchange, the HNX-Index was down 1.03 per cent to end at 249.97 points.

More than 137 million shares worth VNĐ2.4 trillion were exchanged here. — VNS LINK

ToyVP:  IMO More liquidity is a good sign. 

From Investopedia: 

"Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself …The more liquid an asset is, the easier and more efficient it is to turn it back into cash. Less liquid assets take more time and may have a higher cost."

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ToyVP:  Derivatives market sees remarkable growth in last 6 years

August 17, 2023 - 08:50

In the last six years, the average growth of VN30 index futures contract transactions was 27.46 per cent.

HÀ NỘI — The derivatives market has experienced stable growth with dynamic trading activities and more investors after six years of operation, according to the Hà Nội Stock Exchange (HNX).

August 10 marked the opening of the derivatives market and its first product of the VN30 index futures contract.

The exchange said that the derivatives market has gradually become a risk-hedging tool for investors, which is partly reflected in the increases in trading volume on the market when the primary market fluctuates strongly.

It also helps ease the selling pressure on the primary market, stabilising investor sentiment, balancing the market and capping losses of the primary market's benchmark index.

For example, when the market tumbled due to the impact of the COVID-19 pandemic in 2022, the liquidity of the derivatives market soared by 43.8 per cent over the previous year. This was consistent with the general movements of the global derivatives market, when the global primary markets entered the downtrend, leading to the cash inflow into the derivatives market as demand for safe-haven increased.

According to HNX, the market size and liquidity of the VN30 index futures contract grew strongly at an average of 38.65 per cent during 2018-22. Particularly, 2020 witnessed the highest growth rate of 79.9 per cent over 2019, followed by the growth speed in 2022, up 43.8 per cent on-year.

In the first seven months of 2023, the average trading volume reached 225,178 contracts per session, down 17.41 per cent year-on-year, but still the second-highest average annual transaction, only after the record set in 2022.

In the last six years, the average growth of VN30 index futures contracts was 27.46 per cent.

The derivatives market is also a profitable investment channel for investors. With two-way trading and being able to buy and sell continuously during the session, investors can make profits even when the primary market plummets.

As a result, the number of derivatives trading accounts has continuously risen. As of the end of July, there were more than 1,3 accounts on the market, 546 times higher than the beginning period, said HNX.

The derivatives market is an effective solution to hold cash flow in the stock market, avoiding investors fleeing from the market when the primary market declines.

Moreover, the strong growth of the derivatives market has attracted the attention of foreign investors. Transactions of foreign investors on the market edge higher every year, with the amount of the next year usually increasing by 2-3 times the previous year.

In July, foreign investors' transactions accounted for 3.47 per cent of the total trading volume in the whole market compared to 0.1 per cent at the end of 2017.

HNX said that the derivatives market plays an increasingly important role in promoting the development of the country's stock market, contributing to perfecting the stock market structure, and meeting one of the mandatory conditions for the stock market to be considered for an upgrade from frontier market to emerging market in the near future.

To further promote the role of the defensive status as well as an effective investment channel, and to meet the diverse needs of investors, the derivatives market needs to introduce more new derivative products such as futures contracts on the VN100 index, HNX said. — VNS LINK

"Vietnam News" Posted by Henig at KTFA Thursday 7-13-2023

KTFA: Vietnam

Henig:  US state governor leads delegation to Việt Nam to promote trade

July 12, 2023 - 16:31

A visiting delegation from the US’s Nebraska state led by Governor Jim Pillen visited MM Mega Market in HCM City’s Thủ Đức City on July 11 to learn about what Vietnamese customers look for at the grocery store and distribution networks in Việt Nam.

HCM CITY — A visiting delegation from the US’s Nebraska state led by Governor Jim Pillen visited MM Mega Market in HCM City’s Thủ Đức City on July 11 to learn about what Vietnamese customers look for at the grocery store and distribution networks in Việt Nam.

Other members of the team include Nebraska Department of Agriculture Director Sherry Vinton, Chancellor Joanne Li of the University of Nebraska – Omaha and agribusiness executives, academics, and government representatives.

Bruno Jousselin, managing director of MM Mega Market Vietnam, and his staff shed light on the requirements of Vietnamese people and the prices they are willing to pay.

The delegation also had the opportunity to try some agricultural products, including durian, and was quite interested in the taste of Vietnamese fruits.

They also attended a food demonstration by MM chef brand ambassador Steven Long mainly with ingredients from Nebraska.

Pillen said: “We are in the centre of the United States and agriculture drives our entire economy.”

“Our objective is to help Nebraska businesses and companies make connections in the Vietnamese market. Nebraska has been able to cultivate some great relationships with quality Vietnamese businesses in the last several years, and we are hoping to expand upon that.

“Getting to visit MM Mega Market is a real treat. It is very informative to learn about what the Vietnamese customers are looking for at the grocery store and for us to see how our products are displayed. Understanding the two will allow us to cater more specifically to the desires of the Vietnamese consumers.”

The delegation has a goal of growing trade with a country that already buys goods worth almost US$1 billion from Nebraska.

"We hope to highlight beef from Nebraska, corn gluten, soybean meal and other quality agricultural products. Additionally, we will be promoting efforts to bring high-quality grain storage infrastructure from expert companies located in Nebraska to Việt Nam's fertile agricultural areas.

"Further, we have representatives from our University of Nebraska system that are looking to make connections at the Vietnam National University of Agriculture'" he said.

Nebraska is one of the biggest producers of cattle, pork, dairy, corn and soybeans in the US. — VNS    LINK

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Henig:  Google works with NIC and US Mission in Vietnam launch Google for Startups Accelerator

July 12, 2023 - 12:33

Việt Nam is becoming one of South East Asia's rising startup hubs as its online economy is forecasted to grow to US$50 billion by 2025.

HÀ NỘI — Google will continue its partnership with the Vietnam National Innovation Center (NIC) and the US Mission in Việt Nam.

The announcement came on Tuesday in Hà Nội as part of the programme "Google for Startups Accelerator".

The programme was conducted following the success of the ‘Google for Startups, Startup Academy-Vietnam’ programme last year.

It aims to extend support for the national digital transformation effort by providing intensive training, resources and mentoring networks for local startups to hasten their business development.

Việt Nam is becoming one of South East Asia's rising startup hubs as its online economy is forecasted to grow to US$50 billion by 2025, according to the "eConomy SEA report 2022".

Việt Nam is home to four unicorns to date and a total of 3,400 tech-savvy startups that are well-poised to develop sophisticated digital products and solutions.

The programme this year is built on the success of the Startup Academy that was first launched and implemented across the country in 2022 for 50 selected local companies from 16 key industries.

This year, the programme will zoom in on six key industries: education, retail, agriculture, fintech, healthcare and smart cities.

The ‘Google for Startups Accelerator, Southeast Asia’ is a three-month programme that starts with a five-day BootCamp followed by five follow-up online workshops leading to Graduation and Demo Day.

The cohort will receive mentoring from Google and leading industry figures throughout the period. Given the intensity, only 20 startups will be selected across the country to participate in the in-person boot camp to ensure Google and NIC will be able to provide in-depth support throughout.

The selected startups will also be inducted into Google’s global alumni network consisting of more than 1,000 startups from various regions.

To ensure more will be able to benefit from the content of the programme, Google and NIC will co-design open-access online workshops and will be accepting up to 200 additional startups.

Speaking at the event, Trần Duy Đông, Vice Minister of Investment and Planning said "The accelerator is solid proof of Việt Nam’s commitment to supporting the innovation and startup ecosystem which is shared by Google’s mission to raise up the startup community in emerging markets.

"By providing startups with essential resources to grow and succeed, we are nurturing the next entrepreneurial generation who would join hands to accelerate economic growth and make the country a global success.

"On top of that, the selected startups will be a part of the inventive startup community working towards a common goal to connect, collaborate and learn from each other.”

Thye Yeow, Bok, Head of Startup Ecosystem SEA said: “The launch of Google for Startups Accelerator today continues our long-term commitment to support this country's economic growth by fast-tracking local startup’s development through intensive training, mentorship, and networking opportunities for Việt Nam’s entrepreneurs.

"We are extremely excited to continue our partnership with NIC and the US Mission in Việt Nam to pool our resources together to help accelerate them to the next level, and eventually expand globally.

"While the accelerator is only accepting 20 startups, we will co-design and make available some of the group training sessions to the startup community. Up to 200 startups can apply to attend the online workshops. Collectively, Google, NIC and the US Mission in Việt Nam hope this will benefit the wider ecosystem.”

Last year's Google Startups Academy successfully wrapped up after 15 workshops and 283 hours of mentoring with experts and renowned mentors. One of the startups that joined the programme last year, Momby has scaled up its app with 35,000 users, while another, BenKon, successfully closed a seed round with their energy-saving solution.

Trương Minh Đạt, CEO and Co-founder of BenKon said after participating in the programme, they successfully secured their seed round with the participation of a venture capitalist.

Nguyễn Hồng Ngọc, CEO of Momby said Google for Startups was not just a leadership programme, it also provided startups with new knowledge and the latest technologies. They have the opportunity to become a part of a dynamic startup community where everyone is willing to collaborate for collective growth and success. — VNS    LINK

Henig:  Việt Nam contributes to global food security: MARD Deputy Minister

July 12, 2023 - 11:24

The target to reach US$10 billion from exports of vegetables and fruits can be fulfilled in the future despite a downtrend in the area due to industrialisation, urbanisation and other factors.

 HÀ NỘI — Việt Nam is contributing to ensuring food security not only for its own people but also for the wider region and the world, according to Deputy Minister of Agriculture and Rural Development Phùng Đức Tiến.

The agriculture deputy minister made this statement at a press conference this week in Hà Nội, acknowledging the agricultural sector as the "firm foundation" of the national economy.

The Ministry of Agriculture and Rural Development (MARD) held the press conference to release official information about the country's agricultural production and exports in the first six months of the year.

Tiến said the agricultural sector implemented a plan for the first six months of 2023 to address challenges, of which, the export market for agro-forestry-fishery products, mainly for wood and aquatic products, was a particular difficulty. 

He said the country still has much potential in agricultural exports and MARD will undertake flexible solutions to boost management, adapting to the new context and meeting the demands of the world market.

While ASEAN countries and the agriculture industry around the world is currently concerned about food security, Việt Nam has achieved impressive results in ensuring food security for its 100 million population while maintaining its standing in the global rice export market. 

"People often believe that over time, rice yield will decrease, but this year the situation did not happen because the MARD has learned from previous experience and promptly provided technical support for farmers," said the agriculture deputy minister.

Nguyễn Như Cường, Director of the MARD's Department of Crop Production identified current development trends, especially the migration of the workforce to urban environments, industrialisation and exploration in different crops, as causing negative impacts on rice production.

However, with the application of scientific and technological advances in seed and seedling cultivation, along with a timely respond to climate change, the country's agricultural sector is fully operational over the next six months of the year and in the next two years, ensuring both exports and domestic consumption. 

A report from MARD shows rice and other crop production in the first six months of the year achieved good results.

The whole country planted about 4.98 million ha of rice with an average yield of 67 quintals/ha, an increase of 1.8 quintals/ha, with output reaching 22.8 million tonnes.

Rice exports in the first six months reached 4.2 million tonnes, earning $2.32 billion, including $300 million in June. The average export price of rice in the first five months of 2023 was estimated at $517 per tonne, up 5.8 per cent over the same period in 2022.

Meanwhile, VNDirect expects the export price of rice to continue to increase in 2023 thanks to the increased demand for food reserves in many countries, and Việt Nam is also focusing on exporting high-quality, good-priced rice.

According to data from the General Department of Customs, in 2022, Việt Nam's rice exports were recovering from the impact of the COVID-19 pandemic, totalling 7.1 million tonnes, equivalent to $3.5 billion.

In the agricultural sector report, VNDirect said that rice demand will remain high in 2023 as political and economic uncertainties push up the demand for rice reserves. Besides this, climate change is still affecting rice supply in many countries, especially the Philippines, due to floods, and China, due to drought.

Analysts also expect rice export prices to continue to increase in 2023 thanks to increased demand for food reserves in many countries.

Việt Nam is focusing on producing high-quality rice to match global consumption trends since many rice-growing areas have switched to other more profitable crops.

MARD reported the area of agricultural land used for the 2022-2023 crop year in the country has decreased by 3 per cent compared to the previous crop.

Cường said although Việt Nam's cultivation area is not large but agricultural export value is not inferior to that of many other countries, with its agricultural products present in all countries and territories in the world.

In the first half of 2023, fruit and vegetable export turnover was estimated at $2.8 billion, including $950 million in June, up 2.6 times compared to June 2022.

The fruit growing area was about 1.22 million ha, up 2.7 per cent with an increase in output of many items such as mango, oranges, rambutan and lychee while the area used for industrial crops expanded to 2.2 million ha, up 0.3 per cent with output raising in pepper, rubber, cashew, and tea cultivation.

"The target to reach US$10 billion from exports of vegetables and fruits can be fulfilled in the future despite a downtrend in the area due to industrialisation, urbanisation and other factors," he said.

Tiến emphasised that fruit and vegetable exports have never been as high as they are now. "According to this growth momentum, it is certain that in 2023, the country's fruit and vegetable exports will reach over US$5 billion and if investment is more focussed on deep processing and market expansion, the figure of US$10 billion from will likely be achieved," he said. — VNS   LINK

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Henig:  Credit institutions expect positive demand for banking services

July 11, 2023 - 17:21

According to credit institutions, the liquidity of the banking system in the second quarter of 2023 remained solid and was more abundant than in the first quarter.

 HÀ NỘI — Credit institutions forecast the demand for banking services will be buoyant in the remaining months of this year, of which credit growth will reach about 4.4 per cent in the third quarter of 2023 and 12.5 per cent for the whole year, according to a survey of the State Bank of Vietnam (SBV).

SBV’s latest survey on business trends of credit institutions in the third quarter of 2023 released late last week showed the business situation of the banking system in the second quarter of 2023 improved much slower than the previous quarter while pre-tax profits grew slightly but also lower than expected.

According to the assessment of credit institutions, the demand for loans, payment services and cards, and deposits improved in the second quarter of 2023, but the number of credit institutions that saw the improvement was lower than the SBV’s previous survey.

Credit institutions forecast customers' demand for banking services will grow positively in the third quarter of 2023, but the rise will be at a slower rate compared to 2022. The demand for loans is expected to increase more than that of deposits.

Capital mobilisation of the whole credit institution system is expected to increase by an average of 3.2 per cent in the third quarter of 2023 and by 10.6 per cent in 2023.

Outstanding loans of the banking system are expected to increase by 4.4 per cent in the third quarter of 2023 and by 12.5 per cent in 2023, down by 0.6 per cent compared to the 13.7 per cent forecast of the previous survey.

According to credit institutions, the liquidity of the banking system in the second quarter of 2023 remained solid and was more abundant than in the first quarter. Credit institutions forecast the liquidity situation in the third quarter and the whole year will continue to be abundant compared to 2022.

Credit institutions also expect the average deposit and lending interest rates of the whole banking system to decrease by 0.31 and 0.42 percentage points in the third quarter, respectively; and decrease by 0.91 and 0.79 percentage points, for the whole year, respectively.

In the survey, they said the overall customer risk in the second quarter increased faster than the first, with 34.2 per cent of credit institutions identifying the overall customer risk currently being at a high level. A total of 48.2 per cent forecast the customer risk will increase in 2023 compared to last year.

According to the assessment, the ratio of bad debt to outstanding loans of the banking system showed a slight increase in the second quarter, but the rate is expected to decrease in the third.

Regarding the labour and employment situation of the finance and banking industry in the second quarter, although improving compared to the previous quarter, it did not reach the expected level. However, credit institutions expect the labour situation will be more positive in the third quarter of 2023 and the whole year. — VNS        LINK

"Vietnam News" Posted by Henig at KTFA Wednesday 7-12-2023

KTFA:

Henig:  Vietnam:  Shares move higher as cash flow spurs market

July 11, 2023 - 17:17

HÀ NỘI — Vietnamese markets ended Tuesday higher as the injection of cash flow supported the market and outweighed the sell-off pressure.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) rose 0.24 per cent, to close the day at 1,151.77 points.

The breadth of the market was in positive territory, with 236 stocks up and 197 trading lower.

During the session, investors poured more than VNĐ19.1 trillion (US$803.4 million) into the southern market, equivalent to a trading volume of 936.9 million shares.

The VN30-Index also closed higher at 1,146.67 points, up 0.31 per cent. Sixteen stocks of the VN30 basket climbed, while 12 went down.

The VN-30 group performed positively and bolstered the market.

In the basket, banking stocks gained slightly, including Military Bank (MBB), Saigon-Hanoi Commercial JS Bank (SHB), Vietcombank (VCB), VietinBank (CTG), Tiên Phong Bank (TPB) and Vietinbank (CTG).

However, VPBank (VPB), Techcombank (TCB), and BIDV (BID) were still hit by selling forces, down 0.7 per cent, 0.2 per cent and 0.9 per cent, respectively.

The Vin family trio of Vingroup (VIC), Vinhomes (VHM) and Vincom Retail (VRE) - saw differences. VIC lost 0.2 per cent but VHM and VRE gained 0.2 per cent and 1.3 per cent, respectively.

“The market maintained momentum from the previous session and surpassed the resistance zone of 1,140 - 1,145 points of the VN-Index thanks to the low supply pressure in this area,” said Việt Dragon Securities Co.

“However, the bullish candles surpassing the resistance zone are still not really strong. Still, with this signal, it is likely that the market will maintain an uptrend in the near future but the movement will be slow and there will be a state of contention between supply and demand.

Therefore, investors still need to observe market movements to assess the cash flow. Currently, it is possible to hold or exploit short-term opportunities in stocks that are showing good technical signals from the accumulation base. However, for stocks that are still under selling pressure and have not performed well recently, it is still advisable to consider taking profits or reducing the weight to rebalance the portfolio.

On the Hà Nội Stock Exchange (HNX), the HNX-Index closed the trading day at 229.22 points, down 0.37 per cent. — VNS    LINK

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Henig:  Quảng Ninh Province exceeds investment capital goals six months early

July 11, 2023 - 10:42

Quảng Ninh Province demonstrated its ability to attract both domestic and foreign capital in the first half of this year, solidifying its position as a prominent economic development hub in the northern region.

HÀ NỘI — Quảng Ninh Province has achieved impressive results in both domestic and foreign investment attraction in the first six months of this year, solidifying its position as a prominent economic development hub in the northern region.

The province attracted VNĐ44 trillion (US$1.9 billion) worth of domestic capital, exceeding its target for the whole year by 2.4 per cent right in the first six months. This number also represented an increase of 29.8 per cent year-on-year.

Some notable projects include the Stavian Quảng Yên Petrochemical Plant, situated in the Quảng Yên Coastal Economic Zone, with a total expected investment capital of VNĐ36 trillion ($1.5 billion), and the construction investment project of Yên Hưng Liquid Cargo Port worth VNĐ792 billion.

Apart from domestic investment, Quảng Ninh has also successfully attracted $894 million in foreign direct investment (FDI), reaching 89 per cent of the target set by the provincial Party Committee's Resolution (minimum of $1 billion) and 74.5 per cent of the plan set by the provincial People's Committee ($1.2 billion).

The province has granted nine new FDI projects and planned to issue five additional projects with a total capital of nearly $800 million. Many of these projects belong to the "new generation" category, focusing on environmentally friendly processing and manufacturing industries that aim to reduce resource consumption.

Among the recent FDI projects is the approval of two factories by Foxconn Group in Sông Khoái Industrial Park, valued at $250 million. These projects are expected to create employment opportunities for nearly 2,000 local workers.

Hoàng Trung Kiên, head of the Management Board of Quảng Ninh Economic Zone, has expressed confidence in achieving the target of $1.2 billion from FDI projects.

In addition to traditional investors from mainland China, Hong Kong, Singapore and Japan, the province has attracted investment from Swedish investors for the first time. Autoliv Vietnam Company, with a total investment of $154 million, is establishing a project in Sông Khoái Industrial Park to manufacture safety products for export, with a capacity of 10 million products per year.

In recent years, Quảng Ninh has actively collaborated with ministries and regional leaders to promote investment activities and achieved remarkable results. The province has already implemented its Investment Promotion Programme for 2023 and is working on a scheme to attract prominent FDI investors to the region, with a particular focus on key industrial parks and economic zones such as Quảng Yên Coastal and Móng Cái Border Gate. The province prioritises eco-friendly manufacturing and processing industries.

Quảng Ninh is a leading coastal economic hub in the North. The province ranked fourth nationwide in terms of economic growth during the first half, with its economic growth rate (GRDP) reaching 9.46 per cent. — VNS    LINK

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Henig:  Carriers prepare to broadcast 5G to the masses

July 11, 2023 - 10:13

Viettel noted that it is on schedule to complete the mass 5G rollout. It has completed the construction of 282 stations, of which 265 are fully deployed.

HÀ NỘI — The Military Industry-Telecoms Group (Viettel) said it will broadcast 5G services on a large scale in the third quarter of this year.

Viettel has reportedly achieved revenue of VNĐ81 trillion (US$), equivalent to 101.2 per cent of its six-month plan.

Its profit reached VNĐ24.1 trillion, or approximately 102 per cent of the plan, and paid VNĐ21.6 trillion to the State budget.

Viettel has actively shifted 2G and 3G subscribers to 4G, bringing the ratio of 4G subscribers to nearly 78 per cent. It has also tested 5G services in 55 provinces and cities.

Viettel noted that it is on schedule to complete the mass 5G rollout. It has completed the construction of 282 stations, of which 265 are fully deployed.

Viettel is currently testing 5G capacity and is expected to broadcast to a wide area in the third quarter of this year.

VNPT, a major competitor of the military's own telecoms company, had a total consolidated revenue estimated at VNĐ26.32 trillion ($1.1 billion), of which the parent company's revenue is VNĐ18.6 trillion ($782 million) equaling 47.1 per cent of the year's plan.

VNPT's consolidated profit before tax was estimated at VNĐ2.2 trillion ($92 million) in the first six months of this year, of which the parent company's pre-tax profit reached VNĐ1.38 trillion ($58 million), equaling 49.7 per cent of the year plan.

MobiFone, another major player in the telecoms industry, saw revenue estimated at VNĐ13.5 trillion ($568 million) in the first six months of this year, reaching 89.3 per cent of the same period last year.

Its profit before tax was VNĐ1.56 trillion ($65 million), with contributions to the State budget estimated at VNĐ1.35 trillion ($56 million).

However, the two carriers have not given information about their 5G development plans for the last six months of the year. — VNS     LINK

Henig:  Hanoi’s economy on path to recovery

13:00 | 09/06/2023 Metropolis

In the first months of this year, Hanoi has focused on removing difficulties to and facilitating industrial production, export-import, public investment, and foreign investment attraction, according to a local official.

Such efforts paid off as the city’s index of industrial production (IIP) expanded 2.1% year-on-year in the first five months of this year. Processing and manufacturing went up 1.7%, electricity production and distribution was up 4.1%, and water supply and waste water treatment rose 8.3%, said Vice Chairman of the municipal People’s Committee Nguyen Manh Quyen.

Some sectors like beverage, tobacco and drug production, wood processing, and metal product manufacturing experienced significant year-on-year increases in the five-month period.

More than 13,000 enterprises were established in the city between January and May with a total registered capital of 125.9 trillion VND (5.35 billion USD), up 8% in number and 17% in capital.

Meanwhile, 1,500 businesses registered for dissolution, down 5%, and 12,600 others registered for temporary suspension, up 22%. Some 4,600 firms resumed their operations, a drop of 22%.

Despite the global economic crisis that has affected foreign investment attraction in general, Hanoi still lured nearly 156.4 million USD in May, with 43 new FDI projects worth 13.2 million USD, and 21 others adjusting their capital by 108 million USD. Foreign investment capital contribution and share purchases were valued at 35.2 million USD.

In the five months, the city attracted 1.86 billion USD in foreign investment, with 146 new projects valued at 48 million USD, and 71 others that had their capital adjusted by 200 million USD. A total of 114 foreign investors contributed capital and purchased shares worth 1.61 billion USD.

Notably, Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) has completed a 1.5 billion USD deal to purchase a 15% stake in Vietnam’s VPBank in the biggest acquisition ever recorded in Vietnam’s banking industry.

Hanoi sees tourism as an economic spearhead. Therefore, it has rolled out various tourism stimulation programmes and built new tours and products, luring both domestic and foreign visitors. At the same time, it has stepped up the communications work to promote local tourism.

The capital city welcomed 1.71 million foreign tourists in the five months, nearly 10 times higher than that recorded in the same period last year, and 8.4 million domestic arrivals, a rise of 31.3% as compared with the same period last year. Total revenues from tourism were estimated at over 37 trillion VND, up 92.4% year on year.

Regarding employment, Hanoi generated jobs for 85,800 labourers, fulfilling 52.9% of the target, but down 11.5% year-on-year. The city decided to provide unemployment insurance for 30,400 people with funding of 855 billion VND.

The municipal People’s Committee is rolling out solutions with priority to the implementation of key projects and public investment disbursement.

Hanoi has urged investors, contractors, departments, agencies and districts to quickly handle obstacles in procedures and site clearance, considering those the leading criteria to evaluate the capacity of officials and performance of agencies and localities.

It has also resolved to decentralize administrative procedures, in an attempt to improve investor confidence.

Source: VNA   LINK

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Henig:  Vietnam’s economic locomotive begins to gather pace again

The business situation in HCMC is steadily becoming brighter, a senior executive at the Co.opmart supermarket chain says.

Nguyen Ngoc Thang, director of Co.opmart’s operations division, says he was not surprised the city’s economy grew by only 0.7% in the first quarter after seeing very weak sales at Co.opmart.

But it forced the Ho Chi Minh City Union of Trading Cooperatives (Saigon Co.op), which runs them, to act more vigorously.

Efforts to spur demand since April saw second quarter revenues rise by 6-7% year-on-year and 1-2% from the previous quarter.

The average spending by a shopper in May was VND500,000, nearly 30% higher than a year earlier.

"Promotions were launched at weekends, helping the average invoice value increase to VND0.8-1 million," Thang says.

When retailers such as Saigon Co.op saw sales improve, Ta Chu Van, director of Sen Ta Development & Service Trading Company, which produces and exports agricultural products, breathed a sigh of relief.

His sales to supermarkets in HCMC have improved in the past two months.

"We have run promotions and added many new and unusual products to meet market trends and demands," he says.

The weak global economy notwithstanding, Pham Quang Anh, founder and CEO of Dony Garment Company says, his firm has sustained its operations.

He says: "Our domestic orders have increased since it is the school uniform season. Foreign orders from existing customers have also increased.

Many businesses say they have seen a lot of hope in public investment disbursement, the city’s growth engine.

"There has never been a national-level project in the city that has moved so fast," Luong Minh Phuc, director of the HCMC Traffic Construction Investment Project Management Board, which is building Ring Road No.3, says.

Site clearance for the road is progressing rapidly, and work is ahead of schedule, he says.

The manager of an infrastructure investment company says the city is making great efforts to solicit investment in projects in the form of public-private partnerships.

"The pace of work is getting significantly faster."

These indicate that the city’s economy has basically recovered.

Retail sales of consumer goods and services were worth VND298 trillion (US$12.6 billion) in the second quarter, up 13% and 9% from the previous quarter and a year earlier.

Public spending in the second quarter was estimated at VND10.26 trillion, an 89% increase from the first quarter and 44% higher than in the same period of last year.

The spending in the first half of the year was up 44% year-on-year at VND15.7 trillion.

Thanks to all this, the city’s economy grew at 5.87% in the second quarter, taking the first half growth to 3.55%.

According to economist Tran Du Lich, this is spectacular growth, and higher than the national rate.

Online sales too have prospered in recent months, according to Nguyen Khac Hoang, director of the HCMC Statistics Office.

Thang says Saigon Co.op’s sales through its website rose sharply in both volume and value terms in the first half.

According to analysts, people spent more thanks to two main reasons, decreasing inflation and demand stimulus efforts by businesses and city authorities.

The city’s inflation was just 0.17% in June. The price rise has in fact been easing since the beginning of this year.

In recent months the city has organized a number of trade fairs, linking up with various provinces and cities to sell their goods.

With prices generally being steady, demand stimulus measures have proven effective.

Meanwhile, the services sector has been the largest contributor to growth in the first half, accounting for 86%, as it expanded by 4.96% year-on-year, according to the HCMC Statistics Office.

The city’s tourism revenues were the highest in the country: VND80.8 trillion, up 163% from the same period in 2019, the year before Covid broke out.

Over 18 million visitors came to the city, a year-on-year increase of 48% and 5% higher than in 2019.

"The growth partly came from the synchronicity between the city’s promotion programs," Tran Thi Bao Thu, head of marketing and communications at tourism company Vietluxtour, says.

A study by the General Statistics Office found that for every 1% increase in public spending, there is a 0.06 percentage point increase in GDP.

But in HCMC, the impact could be even greater.

After the economy hit rock bottom in the first quarter, Phan Van Mai, chairman of the city People’s Committee, decided that during difficult times the city has to focus on speeding up public spending.

So priority was given to public spending on key infrastructure projects such as Ring Road No. 3, metro lines 1 (Ben Thanh - Suoi Tien) and 2 (Ben Thanh - Tham Luong), the An Phu intersection, renovation of the Tham Luong - Ben Cat - Nuoc Len canal network, and widening of National Highway 50.

The city also added to its medium-term development plans some other projects such as sections 1 and 2 of Ring Road 2, renovation of the Xuyen Tam Canal, and construction of the Moc Bai - HCMC Highway.

The entire administration has become involved, many working groups have been set up and meetings are held every week to identify and remove obstacles.

These efforts paid off.

Spending in the first quarter had been only 4% of the year’s outlay of more than VND70 trillion. But by June 29 it had risen to 21% and was expected to rise to 23% the next day.

"Though we did not hit the target of 35%, we managed to spend more than VND14 trillion as against less than VND6 trillion in the same period last year," Mai said at a meeting held on June 29 to assess the city’s economic situation.

Along with the increase in public spending, efforts to revive the property market over the past few months have also had a positive effect.

The industry only accounts for 3.7% of the city’s economy, but has spillover effects.

When it is in good health, it has a positive impact on 40 other industries, and drives economic growth, according to the HCMC Real Estate Association.

Some property businesses in HCMC are on the path to recovery after the slump of the last year or so.

"Overcoming difficulties," Nguyen Van Dat, chairman of Phat Dat Real Estate Development Corp., said about the company’s situation at its annual general meeting on June 30.

He said during the difficult period at the end of 2022, facing pressure to redeem corporate bonds it had issued, it decided to sell assets worth VND3 trillion for just VND2 trillion.

Dat himself sold or mortgaged personal assets to raise money to help the company out of its difficulties.

But from now through next year its health would gradually improve because legal issues related to projects and short-term debts would be resolved, he assured.

The same holds true for many other property businesses, which are gradually getting out of the crisis that had engulfed them.

At a recent city government meeting, Mai said the real estate and bond markets had gradually recovered though there was a long way to go.

Fewer orders, weaker exports

Though its economy is recovering, HCMC still has some weaknesses.

The HCMC Institute for Development Studies had predicted that imports and exports would decline from May, and it has come true.

In the first half the city’s trade balance was negative, with both exports and imports decreasing year-on-year.

"Never before have we had such difficulty getting orders as now," the manager of a wood products company laments.

"We spared no efforts but only managed to get a few small orders."

Current production is mainly to meet old orders as global demand remains weak, he adds.

Analysts and business executives agree the city economy is likely to remain troubled since the world’s major economies, which are also its key trading partners, have seen recessionary pressures since the beginning of May.

Differences in monetary policy responses by major economies are causing exchange rate volatility, affecting the city’s trade.

Orders for many industries have decreased by 30-50%, even 70% in some cases. Only a few such as heavy engineering have sufficient orders.

"Orders have dwindled, there are few jobs, workers’ incomes have fallen, life has been difficult," Mai said on June 28 at a meeting with voters in the city’s District 4.

"All of these have put pressure on the city’s social security system."

The lack of exports has caused many workers to lose jobs or be furloughed.

Taiwanese shoemaker Pouyuen Vietnam, the city’s largest employer, said it was preparing to terminate the contracts of nearly 5,700 workers in June and July.

Anh at Dony says it is necessary to retain existing customers while waiting for the global economy to improve.

To achieve this, his company is forced to offer discounts of 5-7% to customers.

"At a good time an export order can fetch a profit of 5-7%. Now it is only 3%, even zero [on occasions], because input prices, transport costs and interest rates remain high."

A recent survey by the HCMC Union of Business Associations found some 95% of businesses faced losses and large inventories.

To achieve growth, companies have had to make tradeoffs.

To achieve its revenue targets this year Co.opmart has had to spend 15-25% more on stimulus programs.

Van at Sen Ta says: "Investment costs have skyrocketed, and so profits are not as expected."

Restaurant chain King Cua’s CEO Doan Thi Anh Thu says there is more footfall now than before, but revenues have not increased because the restaurants are offering new dishes at low prices "for us to sustain the prospects of expanding the chain and reaching the masses."

The city’s business environment is improving month after month, with the number of businesses pulling out of the market being lower than that of new ones since March.

However, in the first half, of every 10 enterprises in the market, six have suspended operations or quit altogether. This rate is high, according to Chu Thanh Tuan of RMIT University Vietnam.

Many businesses have had to settle for lower profit margins, down even to merely breaking even, to get orders or attract consumers. But it is surely not a long-term solution.

Measures and recommendations

According to experts, what need to be done immediately are to stabilize the bond market and help businesses get loans on easy terms.

Nguyen Phuoc Hung, vice chairman of the HCMC Union of Business Associations, suggests that bank lending interest rates should be reduced to below 8% from the unaffordable rates of over 10% now.

To continue to support businesses and sustain the recovery momentum amid the difficult export markets, the HCMC Institute for Development Studies says the city needs to focus on tapping the domestic market with promotions and linkages to stimulate demand and by combining trade and tourism and expanding consumer credit.

Lawmaker Tran Hoang Ngan says: "Stimulating the domestic market is extremely important at this time."

It is necessary to support businesses through a mechanism for linking them with banks and faster processing of tax, customs and fire prevention procedures by authorities.

Acceleration of public spending is also a good measure in the context that the city’s production and exports largely depend on overseas demand.

Nguyen Khac Hoang, director of the HCMC Statistics Office, says it is necessary to further quickly complete new works and projects, especially key ones for regional connectivity and with high spillover effects such as Metro No. 1, Metro No. 2, Ring Road 3, and the HCMC-Moc Bai Expressway.

"The city is actively disbursing public spending monies and soliciting investment. The whole apparatus is running at full speed."

At the meeting on June 29, Mai said if conditions are favorable and HCMC increases public spending, stimulates trade and tourism demand, facilitates exports, and resolves businesses’ problems in the second half of this year, its economy is likely to grow at 7%.

He points out that new policies rolled out by authorities will need time to have an impact, and so the city will have a good foundation to bounce back in the long term by making decisions now.

He wants the city to speed up key programs and projects such as Can Gio Port, the innovation center for startups, finalization of the plan to convert five industrial parks, and the VND10 trillion anti-flood project.

Though difficulties remain, HCMC has opportunities for growth, he adds.

Tuan of RMIT says HCMC should become the country’s economic locomotive by focusing on knowledge, new technologies and sustainable development.

A key to realizing that vision the National Assembly’s recent Resolution 98 on developing the city comprising more than 40 specific mechanisms and policies.

Ngan says these mechanisms will help the city have greater autonomy.

The entire political system is racing to implement Resolution 98 to aid the city’s economy, he adds.

At the meeting on June 29 Mai instructed departments and the city’s various districts to lay the groundwork for the implementation so that they could act immediately when the resolution takes effect on August 1.

Ngan adds: "HCMC contributes more than 25% of Vietnam’s budget, and so its recovery will have an impact on the entire country."

Story by Vien Thong, Duc Minh, Thi Ha
Graphics by Tat Dat    LINK

Henig:  Vietnam, France step up financial cooperation

09:39 | 12/07/2023 Vietnam and EU

Vietnamese Deputy Minister of Finance Vo Thanh Hung held a working session with French Minister Delegate for Industry Roland Lescure in Paris on July 10.

At the event, Hung said the Vietnamese Ministry of Finance (MoF) highly evaluated the French ministry’s role in providing the French Government’s official development assistance (ODA) for Vietnam's socio-economic development.

France is now the biggest bilateral donor in Europe for Vietnam while Vietnam is the second largest recipient of French ODA capital. From 1993-2022, France committed to supplying around 18.4 billion USD in ODA loans to Vietnam through the French Treasury and the French Development Agency (AFD), with a focus on transportation (railway), water supply and drainage, climate change, energy and green growth.

Hung wished to learn from France's experience in the State budget settlement and State financial report making. He believed that the French ministry will work together with the MoF to successfully hold technical support activities for 2023-2024, and France will assist Vietnam in strengthening its capacity and gradually bringing Vietnam's public financial management closer to international practices.

Lescure, for his part, also shared major reforms that France is making, including pension reform (raising the retirement age to 64 by 2030) to ensure a more sustainable pension system for the country and to draw more people to the workforce for economic growth.

He affirmed that Hung’s visit will contribute to further reinforcing close ties between Vietnam and France.

In the afternoon of the same day, Hung paid a working trip to the headquarters of the AFD’s Expertise France.

Receiving the Vietnamese official, AFD Director Philippe Orliange recalled the content of a meeting between the Vietnamese Finance Minister and the French Ambassador in Hanoi last November, which included a proposal related to France's support for the ministry in establishing a green budget.

Orliange pledged to assist Vietnam in the project, considering it a priority of the AFD, and believed that the project will help the ministry with its modernisation efforts to meet the goal of achieving net zero emissions by 2050.

CEO of Expertise France Jérémie Pellet said Vietnam is the only country in Southeast Asia where Expertise France has established an office.

About Vietnam's concerns over challenges in green finance initiatives such as building a carbon market, proper use of public and private funding, and enhancing the Government's action capacity, Pellet said Expertise France is ready to share France’s experience and urge the European Commission (EC) to assist Vietnam in this field, and introduce Vietnam's model to other countries in Southeast Asia.

He expressed the readiness to cooperate with Vietnam in this green finance project and hoped that it will meet the expectation of the MoF for sustainable development.

Hung believed that Expertise France, together with the MoF, will successfully hold technical support activities in 2023-2024, and help the Vietnamese side enhance the capacity of developing green finance policies, thus contributing to delivering on Vietnam's international commitments.

On the occasion, Hung and Orliange signed an agreement on enhancing the capacity of building green finance policies. Accordingly, the two sides will partner in areas such as strengthening the capacity of evaluating green tax policies, supporting the improvement of legal frameworks, improving the capacity of issuing green government bonds in the financial market, and improving research capacity in managing revenue from the carbon market.

During his visit from July 10-14, Hung is also scheduled to hold working sessions with the General Directorate of Public Finances, the French Treasury, the Finance Department of Montreuil city and lay a wreath at President Ho Chi Minh’s statue in Montreau park.

Source: VNA LINK

Vietnam Treasures Relations With US -Party Official

TNT:

Harambe:  Vietnam treasures relations with US: Party official | Vietnam+ (7/3/23) 

Washington D.C (VNA) - Vietnam attaches importance to relations with the US and wants to continue developing the ties for the benefit of their people, and for peace, friendship, cooperation, and development in the region and the world, Chairman of the Party Central Committee’s Commission for Foreign Affairs Le Hoai Trung has said. 

Trung made the statement at meetings with US officials during his working visit to the US from June 28  to July 2 at the invitation of the US Department of State.

In Washington D.C, the Vietnamese delegation had working sessions with US Secretary of State Antony Blinken, US National Security Advisor Jake Sullivan, Administrator of the United States Agency for International Development (USAID) Samantha Power, Assistant Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink, Deputy Under Secretary of Defence for Policy Sasha Baker, President & Chief Executive Officer (CEO) of the US-ASEAN Business Council (US-ABC). They also met with former US officials and senators who support the development of Vietnam - US relations.

In New York, the delegation worked with UN Under-Secretary-General for Policy Guy Ryder, and had an online discussion with US Special Presidential Envoy for Climate John Kerry. They also had meetings with long-standing friends of Vietnam in the US, and representatives of the US Communist Party.

During the meetings, both sides agreed that the Vietnam – US Comprehensive Partnership has witnessed robust, positive, and comprehensive development across fields in recent years.

The US officials affirmed that the US considers Vietnam one of its key partners in the region, agreeing that the bilateral relations have enjoyed support from both the Democratic Party and Republican Party. They highly valued the recent contacts and meetings between the two sides, particularly the high-level phone talks between General Secretary of the Communist Party of Vietnam Nguyen Phu Trong and President Joe Biden in March 2023.

They emphasised the desire to maintain exchanges and meetings at all levels, especially at the high-level, during the year marking the 10th founding anniversary of the Comprehensive Partnership; and deepen the bilateral relations, especially in terms of economic cooperation, climate change response, green energy, education - training, tackling war consequences, people-to-people exchanges, and addressing global issues.

Meanwhile, the UN official acknowledged and applauded Vietnam's successful development, cooperation, and contributions within the framework of the UN, hoping that Vietnam will further enhance its important role in addressing global issues.

The US friends and representatives of the Communist Party of the US showed their pleasure with Vietnam’s renewal achievements and the path to socialism in the Southeast Asian nation, affirming that they always support Vietnam and the development of the Vietnam-US relationship.

For his part, Trung suggested the two sides continue promoting high-level exchanges and meetings, improving the efficiency of cooperation via the Party, state and people-to-people diplomacy channels in line with the results of the phone talks between General Secretary Nguyen Phu Trong and President Joe Biden.

The Vietnamese official affirmed that Vietnam treasures the role played by the UN and will continue to actively and responsibly contribute to the organisation’s activities.

Trung also expressed his gratitude to US friends who have always supported Vietnam in the struggles for national liberation in the past. He also proposed directions to strengthen cooperation with the US Communist Party and socio-political organisations between the two sides in the coming time.

https://en.vietnamplus.vn/vietnam-treasures-relations-with-us-party-official/255632.vnp

Billions of US dollars from RoK expected to head to Vietnam

TNT:

Harambe:  Billions of US dollars from RoK expected to head to Vietnam | Vietnam+ (7/1/23)

Investment from the Republic of Korea (RoK) in Vietnam is expected to accelerate in the near future, including many large-scale projects worth up to billions of US dollars as a series of memorandums of understanding (MoUs) on cooperation between the two countries' ministries, sectors, and businesses was signed at the Vietnam - RoK Business Forum that took place last weekend within the framerwork of the state visit to Vietnam by the RoK’s President Yoon Suk Yeo.

Up to 205 Korean businesses including major corporations like Samsung, LG, SK, Hyundai Motor, and Lotte, accompanied President Yoon during the Vietnam visit.

Speaking at the forum, Director of the Foreign Investment Department under the Ministry of Planning and Investment Do Nhat Hoang highlighted that the RoK's investment in Vietnam has seen breakthroughs in the past six or seven years. RoK is now the largest foreign investor in Vietnam, with a total registered capital of 82 billion USD.

Although in the first five months of this year, RoK’s investment in Vietnam slowed down due to the general trend of global investment flows, a bright future is ahead, Hoang said, adding that the agency has received dozens of investment project proposals with some worth hundreds of millions of US dollars or even billions of US dollars.

Large corporations are still looking to Vietnam and consider the country the number one investment destination, said Hoang.

Chairman of the Hyosung Group Cho Hyun Joo said his firm considered Vietnam a strategic market. Hyosung has developed production facilities in many localities throughout the country, such as Ho Chi Minh City, Dong Nai, and Ba Ria-Vung Tau provinces.

He told baodautu.vn that Hyosung would not only want to expand the scale but also to turn the country into a sustainable investment destination for the group.

Another Korean firm, Doosan Group, said it was looking to expand eco-friendly energy investment in Vietnam as one of the future strategies that it is aiming at the potential clean energy market in the Southeast Asian country.

The Doosan Enerbility company had signed agreements with three companies operating thermal power plants in Vietnam to promote an environmentally friendly fuel conversion project.

The RoK’s firm and the Nghi Son 2 Power Limited Liability Company have signed a memorandum of understanding (MoU) on energy collaboration to research the application of carbon reduction solutions in electricity production, coal consumption, and greenhouse gas emissions.

LG Group Chairman Koo Kwang Mo affirmed that LG chooses Vietnam as its production base. LG currently invests 7.5 billion USD in the country and is planning to invest another 5 billion USD shortly.

Similarly, the SK Group is planning to add 1.3 billion USD for investment in the renewable energy sector.

Meanwhile, at a recent meeting with Minister of Planning and Investment Nguyen Chi Dung, Chairman of the CJ Group Kyung Shik Sohn said that CJ has invested about 1 billion USD in a series of companies in Vietnam and it plans to build a logistics centre, expand to other areas such as veterinary medicine, biotechnology, and join renewable energy-using projects.

In his speech at the Vietnam-RoK Business Forum, Prime Minister Pham Minh Chinh said Vietnam is giving priority to three strategic breakthroughs regarding institutional reforms, infrastructure, and human resources.

The country is also stepping up economic restructuring, industrialisation, and modernisation based on sci-tech and innovation, including sustainable growth drivers such as the digital economy, digital transformation, green growth, and circular economy in line with the country’s green growth strategy.

In such a process, Vietnam welcomes foreign investors, especially those from the RoK, particularly in innovation, digital transformation, biotechnology, electronics, semiconductors, clean energy, green economy, smart city development, and hi-tech agriculture, he stressed.

He wished for their further investment in the cultural and entertainment industries.

For his part, RoK’s President Yoon Suk Yeo urged Korean businesses to invest in Vietnam. He called Vietnam "the centre of the restructuring of the global supply chain".

The investment market in Vietnam has therefore been upgraded.

A new opportunity is opening up for RoK, more than any other country, which has a close connection with Vietnam, President Yoon said, adding that the solution for the current crisis can be found in Vietnam.

https://en.vietnamplus.vn/billions-of-us-dollars-from-rok-expected-to-head-to-vietnam/255571.vnp

Some "Vietamese News" Posted by Henig at KTFA Tuesday 2-28-2023

KTFA:  Vietnam:

Henig:  January surplus signals good foreign trade year

06:00 | 27/02/2023

(VEN) - Vietnam’s total import-export value in January 2023 was estimated at US$46.56 billion, with imports reaching US$25.08 billion, and exports US$21.48 billion, yielding a trade surplus of US$3.6 billion.

Vibrant foreign trade

Positive signs of import, export activities in the first month of the year promise satisfactory results of foreign trade throughout 2023.

The border crossings with China in Quang Ninh, Lao Cai and Lang Son provinces have resumed busy operations after the week-long Lunar New Year (Tet) holiday (January 20-26). On the morning of January 28, 120 trucks carrying import, export goods passed Bac Luan 2 Bridge and pontoon bridge Km3+4 Hai Yen of the Mong Cai International Border Crossing in Quang Ninh Province.

A representative of the Customs Division of the Lao Cai Border Crossing said that during the seven-day Lunar New Year holiday, some 285 customs clearance declarations were received at the Kim Thanh Border Crossing. Given these positive signs and easing of China’s COVID-19 prevention policy, import-export activities through the Lao Cai crossings are expected to thrive in 2023.

On January 28, China resumed customs clearance for import-export activities through five Lang Son Province border crossings: Huu Nghi, Tan Thanh, Chi Ma, Dong Dang, and Coc Nam.

Business confidence

In terms of business activities after the Lunar New Year holiday, the Hoa Phat Group Joint Stock Company, for example, received orders for exports to the US, Canada, Mexico, Puerto Rico, Australia, Belgium, Malaysia, Hong Kong (China), and Cambodia.

Businesses have set export targets for 2023. Vu Duc Giang, President of the Vietnam Textile and Apparel Association, said the textile and garment sector expects its export value to reach US$47-48 billion. According to him, this target is based on the following factors: 1) businesses have begun to shift production from knitting to shuttle weaving; 2) businesses are seeking small orders with quick delivery; and 3) export markets have been diversified, including those in the former Soviet Union, Africa, and the Middle East. China is also a major export market of Vietnamese textiles and garments.

Do Ha Nam, Vice President of the Vietnam Food Association (VFA), said rice exports are forecast to yield satisfactory results in 2023, especially in the winter-spring crop.

However, experts are urging farm produce exporters to tighten controls and use suitable preservation technology to ensure product quality and origin traceability, and to harvest and transport fresh farm produce to processing factories during the shortest possible time.

The Ministry of Industry and Trade is prioritizing major exports with significant competitive advantages, such as electronics, textiles, garments, leather, footwear, and wood products, along with diversifying and improving product quality.

Phuong Lan    LINK

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Henig:  EU manufacturers eye offshore wind turbine plants in Vietnam

09:28 | 28/02/2023

European manufacturers are considering investing hundreds of millions of dollars in Vietnam to build wind turbine plants as the country gears up to exploit its large untapped potential in offshore wind, Reuters cited sources familiar with the situation as reporting.

According to the World Bank Group, Vietnam is seen as a potential major player in the sector because of its strong winds in shallow waters near coastal, densely populated areas.

Three industry sources, who declined to be named because the matter was confidential, named Danish turbine maker Vestas as one of the potential investors. The companies were looking for sites near ports but talks with local authorities and industrial parks were still preliminary as investors were waiting for the country to approve clear rules on offshore wind farms.

"We expect important investments to be decided this year by major global players in the offshore wind sector for the manufacturing of wind turbine components and Vietnam stands a good chance to welcome these," said Bruno Jaspaert, director of DeepC, an industrial zone in northern Vietnam.

Speaking on the sidelines of a wind conference in Hanoi on February 23, Erik Kjaer of the Danish Energy Agency said Vietnam has a strong steel output, therefore it would make sense to invest in the country as steel is key to making turbines.

Source: VNA     LINK

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Henig:  Vietnam, Belgium step up scientific-technological cooperation

06:00 | 28/02/2023

Vietnam wants to step up cooperation with countries that have strengths in science-technology like Belgium, Minister of Planning and Investment Nguyen Chi Dung has said.

Vietnam wants to step up cooperation with countries that have strengths in science-technology like Belgium, Minister of Planning and Investment Nguyen Chi Dung has said.

At working sessions with Belgian partners, including Hub.Brussels, Interuniversity Microelectronics Centre (IMEC) and John Cockerill Group in Brussels on February 20, Dung said Belgium has substantial potential to cooperate and support Vietnam in new technologies and renewable energy, especially circuit manufacturing.

Dung led a delegation from ministries, innovation centres, research institutes and universities to Belgium from February 18-21, aiming to concretise the outcomes of Prime Minister Pham Minh Chinh's visit to the European country in December 2022 regarding innovation cooperation.

Hub.Brussels, the Brussels Agency for Business Support, offers a wide range of free advice, services and tools to help projects be successful.

Dung lauded cooperation between the agency and the Vietnam National Innovation Centre (NIC), which have agreed on experience exchange in order to raise innovation and startup capacity of Vietnam and the European Union (EU).

He suggested Hub.Brussels help NIC in operations, and opened its representative office at NIC Hoa Lac to step up the bilateral cooperation in innovative startup ecosystem development.

The minister assigned NIC and the Vietnam Innovation Network in Europe (VINEU) to partner with Hub.Brussels in devising an exchange programme for Vietnamese startups this year.

Annelore Isaac, Deputy Chief Executive Officer at Hub.Brussels, expressed her belief in cooperation between the two sides, which would cover health care and construction, and affirmed that the agency stands ready to support Vietnamese startups.

On this occasion, Hub.Brussels, NIC and VINEU signed a memorandum of understanding on cooperation in innovation and startup.

At another working session with IMEC, a leading R&D and innovation hub in Europe in nanoelectronics and digital technologies, Dung stressed that his ministry wants to promote cooperation between IMEC with Vietnamese organisations and enterprises, especially in the semiconductor R&D, thus helping Vietnam join the global semiconductor supply chain.

He suggested IMEC join hand with NIC and Vietnamese educational institutions to organise cooperation programmes for students and engineers in the semiconductor industry.

A MoU on collaboration in the semiconductor industry was also inked by IMEC and NIC on this occasion, under which IMEC will consider building an R&D centre in the Southeast Asian nation.

Driven since 1817 by the entrepreneurial spirit and passion for innovation of its founder, the John Cockerill Group developed large-scale technological solutions to meet the needs of its time.

Meeting with John Cockerill representatives, Dung emphasised that Vietnam hopes for comprehensive cooperation with the group in energy, saying it should become Vietnam’s strategic partner through cooperation programmes as well as R&D and investment projects.

John Cockerill's leaders said the group wants to make comprehensive and strategic investment in Vietnam, thus further serving the Southeast Asian and Northeast Asian markets.

The group expects to focus on solutions regarding energy transition, including biomass, hydrogen and low-carbon ones, they noted.

John Cockerill and NIC reached a MoU on this occasion, under which the Belgian group would invest in green hydrogen R&D at the Vietnamese centre and labs for biomass fuel products, and develop products relating to cooling technology in power plants and industries.

Source: VNA     LINK

Henig:  Q1 economic growth drivers

06:00 | 28/02/2023

(VEN) - Investment, domestic consumption and foreign trade were the three drivers of Vietnam’s economic growth in February and the first quarter of 2023. The Government, ministries, sectors and localities are taking action to promote these forces.

Opportunities and challenges

According to the Ministry of Planning and Investment (MPI), by the end of January 2023, the Vietnamese economy continued to show positive signs with the macroeconomic situation remaining stable. Specifically, the consumer price index (CPI) grew 0.52 percent compared with December 2022 and 4.89 percent year-on-year; in the monetary market, credit grew 0.65 percent by January 17 compared with the end of 2022; the banking system’s liquidity was ensured.

In January, State budget revenue reached 11.3 percent of yearly projection, foreign direct investment reached US$1.2 billion, triple the result of January 2022, and trade surplus was estimated at US$3.6 billion.

Production and trade continued recovering thanks to high consumer demand during the Lunar New Year holiday (late January). Agricultural production remains stable. Total retail sales of consumer goods and services grew 20 percent year-on-year. The supply of goods is abundant with almost no major price changes.

However, due to the week-long Lunar New Year holiday and the impact of the global economic uncertainty, industrial production and import-export activities faced numerous difficulties. The January index of industrial production (IIP) equaled 92 percent of that in January 2022, while total foreign trade value was lower compared with December and January 2022.

Three growth drivers

According to the MPI, given the increasing difficulties challenging Vietnam’s efforts to control inflation and maintain macroeconomic stability, Vietnam should focus on promoting investment, domestic consumption and foreign trade.

To promote investment, the prime minister has ordered the acceleration of major national projects and the improvement of the investment and business environment to create a new space for socioeconomic development. At the same time, the Government has applied fiscal policies to provide businesses with support, helping them reduce input costs and output prices in order to control inflation. Appropriate monetary policies are helping manage credit and keeping interest at a reasonable level to facilitate investment in production and trade. The disbursement of public investment capital will also be accelerated.

To promote domestic consumption and foreign trade, the industry and trade sector will facilitate business access to capital and credit, and strengthen domestic purchasing power through effective implementation of trade promotion programs. The distribution of goods on digital platforms and e-commerce will be expanded to boost domestic sales.

At the same time, the Ministry of Industry and Trade will accelerate negotiations on bilateral and multilateral cooperation mechanisms, bring into play the role of overseas Vietnamese trade offices, and support localities, associations and businesses in taking advantage of free trade agreements to increase exports. Technical barriers will be removed to facilitate business access to new markets.

Digital transformation in the field of trade promotion will be accelerated to connect supply and demand, as well as to build and develop Vietnamese brands in foreign markets. Attention will also be paid to logistics services, e-commerce, and especially cross-border trade.

Nguyen Hoa     LINK

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Henig:  Bond issuers seek solutions to delay bond debt payment

February, 28/2023 - 09:06

The volume of mature bonds of businesses will peak in the period of 2023 - 2024 and bond issuers are taking different actions to proactively remove difficulties.

HÀ NỘI — The volume of mature bonds of businesses will peak in 2023 - 2024 and bond issuers are taking different actions to proactively remove difficulties.

NoVa Real Estate Investment Group Joint Stock Company (Novaland, HOSE: NVL) has just announced that it has reached an agreement with its "bondholder" Dallas Vietnam Gamma Ltd. The companies have negotiated and reached an agreement to reduce the number of outstanding bonds and warrants through a swap agreement.

Accordingly, Dallas Vietnam Gamma Ltd will receive a portion of shares in two member companies of Novaland, namely Thành Nhơn Real Estate Investment Company Limited and Mũi Né General Investment Joint Stock Company in exchange for the cancellation of a corresponding number of bonds and warrants.

Previously, in mid-2022, Dallas Vietnam Gamma Ltd bought 4,435 convertible bonds and 185 warrant-linked bonds from Novaland. Novaland's consolidated financial statements for the fourth quarter of 2022 showed that Dallas Vietnam Gamma is Novaland's bondholder with a long-term debt of VNĐ4.62 trillion (US$193 billion) as of December 31, 2022.

BCG Energy Joint Stock Company – a member of Bamboo Capital Group Joint Stock Company (HOSE: BCG) also recently said that it had reached an agreement with investor Hanwa Energy Corporation Singapore Pte Ltd on changing the bond payment term.

According to BCG Energy, considering changes in market conditions, the two parties have negotiated to convert part of the bonds into debt with the final payment term being changed to June 30, 2023, instead of September 4, 2022.

As of December 31, 2022, BCG Energy had paid all the interest and VNĐ45 billion of the principal to Hanwa Energy Corporation Singapore Pte. The remaining principal debt, equivalent to $3 million, has been agreed by BCG Energy and Hanwha Energy to be settled under a joint agreement of both parties. Previously, on September 4, 2019, BCG Energy privately issued a convertible bond package to Hanwa Energy Corporation Singapore with a value of VNĐ115.75 billion.

In addition to actively negotiating with lending partners, some businesses also actively increased coupon rates for bond lots to stabilise investor sentiment. In addition, many businesses also plan to repurchase the issued bonds before maturity.

According to a recent report by Vietcombank Securities Company (VCBS), by January 2023, out of VNĐ1.19 quadrillion of corporate bond outstanding loans, the largest amount of outstanding loans belonged to the real estate industry which is accounting for 37 per cent, followed by banks making up 32 per cent.

VCBS also added that the volume of corporate bonds maturing in 2023 is estimated at over VNĐ250 trillion, a significant decrease compared to the third quarter of 2022 due to the proactive repurchase by issuers before maturity. The acquisition value of the banking and real estate industries in the fourth quarter of 2022 reached VNĐ35 trillion and VNĐ24 trillion, respectively.

Experts from VNDirect Securities Joint Stock Company said that in the context of tightened monetary policy and increasing financial costs, some bond issuers have few opportunities to access capital for financial restructuring and meeting short-term debt obligations. Liquidity risk is concentrated in a number of volatile sectors such as real estate.

Cấn Văn Lực, a member of the National Financial Monetary Policy Advisory Council, said that businesses need to step up negotiations with investors to extend the debt payment maturity.

The Ministry of Finance (MoF) has also recently proposed that the Government consider allowing enterprises to pay principal and interest on bonds in shares and real estate products.

According to the ministry, if an enterprise cannot pay the bond principal and interest in cash, they can negotiate with investors to use other assets on the principle of complying with the provisions of civil law. This payment method must be approved by the bondholders and the enterprise must disclose information and take responsibility for the legal status of the assets used to pay the principal and interest of the bonds.

To assist enterprises in mobilising capital for production and business activities and debt restructuring, the Ministry of Finance shall propose to the Government to allow previously issued bonds with an outstanding balance to be changed in expiration term, the maximum time is two years.

— VNS     LINK

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Henig:   Door wide open for processed, manufactured products to enter UAE

February, 28/2023 - 10:31

Dubai is stepping up urbanisation and infrastructure development, leading to higher demand for electricity and energy in industrial and trade sectors. The development of smart grids and upgrade of transmission lines will also boost the UAE’s electrical cable market.

 HÀ NỘI — Products of the processing and manufacturing industry of Việt Nam now have great chances to enjoy stronger export to the UAE, which has high demand for imports.

Dubai is stepping up urbanisation and infrastructure development, leading to higher demand for electricity and energy in industrial and trade sectors. The development of smart grids and upgrade of transmission lines will also boost the UAE’s electrical cable market.

The UAE’s electrical cable market was valued at US$192.48 billion in 2021 and is forecast to grow by some 4.2 per cent on average between 2022 and 2030. Therefore, electrical cables are a highly potential product for Vietnamese enterprises to invest in and export to the middle eastern country, said Trương Xuân Trung, an official of Việt Nam’s Trade Office in the UAE, as cited by the Công Thương (Industry & Trade) newspaper.

Among other processed and manufactured products, Việt Nam can also boost the shipment of handbags, suitcases, and wallets, he suggested.

In 2022, footwear exports to the UAE brought home $185 million, rising nearly 50 per cent from a year earlier; textiles and garments $132 million; timber and wood products $27 million, statistics show.

The Handicraft and Wood Industry Association of HCM City has registered to take part in a woodworking fair in the UAE in 2023. This event, which will gather many international exporters and importers, will be a good chance for Vietnamese firms to seek partners, Trung said.

In addition, some agricultural and fishery products of Việt Nam are holding a big market share in the UAE and can be exported more to this market.

Data in 2022 show that fishery exports to the UAE increased by over 18 per cent year on year. Việt Nam is currently the biggest exporter of frozen tra fish fillet there, with an over 50 per cent market share. Such fruits as dragon fruit, watermelon, and seedless lime from the Southeast Asian country are also dominating this market.

However, the UAE is a market with fierce competition in terms of prices and quality, the official noted, adding that the Islamic country requires food and beverage imports to have Halal certificates, and also imposes high import tariffs, up to 50 per cent, on sugar-sweetened beverages.

Despite considerable challenges, Trung held that the UAE is attractive enough for Vietnamese firms to capitalise on since it is a highly open market, has few tariff barriers, and serves as a point of transit for goods to reach the Middle East, Africa, and Southern Europe.

Besides, the UAE is a party to the Gulf Cooperation Council (GCC), whose members share a common customs law system, so when Vietnamese goods are exported to this market, they can enter other GCC members without having to pay more taxes.

The UAE has asked Việt Nam to consider the early signing of a bilateral comprehensive economic partnership agreement so as to further facilitate Vietnamese products’ entry into the Middle Eastern country, according to Trung.

— VNS     LINK