Day: October 1, 2022

Vietnam’s industrial real estate in Vietnam has the potential to grow as demand continues to rise due to a shift in supply chain to the country, according to Savills Vietnam.

 

As many as 406 industrial parks (IPs) have been set up nationwide so far, but this figure still needs to be improved to meet the demand, the real estate company said.

 

Data from Savills Vietnam shows that the occupancy rate in IPs now stands at 70.9%, equivalent to the rate recorded at the end of 2020.

 

Pham Huu Thang, former Director of the Foreign Investment Agency at the Ministry of Planning and Investment, said most industrial land has been zoned for production while logistics and support facilities need more space to develop.

 

Therefore, new IPs are expected to have more detailed planning and provide more space for logistics, commercial and service functions, data centres. The Government is also striving to improve the process for handling investment procedures to facilitate the development of new IP projects, he added.

 

John Campbell, head of industrial services at Savills Vietnam, said many IPs in industrialised economies are switching to a more environmentally friendly model, so IPs in Vietnam will also develop in this direction sooner or later.

 

Taking Deep C in Hai Phong as an example, he noted it is one of the first IPs in Vietnam to adopt the model to attract foreign manufacturers.

 

The specialist also highlighted that no other countries in Southeast Asia have joined as many free trade agreements as Vietnam, which also helps enhance global producers’ trust in the country. Another advantage is a young and dynamic workforce and a growing middle class in the country.

 

In terms of IPs’ value growth potential, Campbell held that compared to other markets in Asia and Southeast Asia, profit and output in Vietnam proves attractive to foreign investors.

 

However, he also pointed out certain challenges to IP development, including surging land prices and compensation costs, a shortage of skilled workers, and infrastructure that has yet to meet demand.

 

Campbell recommended the Government set up proper orientations to ensure the quantity and quality of workers, with the need to improve transport infrastructure, especially in the southern region./.

 

Source: Vietnam News Agency

Vietnam has a “golden chance” to attract a new wave of foreign investment, especially to economic zones (EZs) and industrial parks (IPs), according to Deputy Minister of Planning and Investment Tran Quoc Phuong.

 

Annual foreign direct investment (FDI) poured into IPs and EZs is making up 35% – 40% of the total FDI capital inflows. The rate reaches even 70% – 80% in the processing and manufacturing industry, according to the Ministry of Planning and Investment (MPI).

 

The MPI said Vietnam is currently home to 403 IPs, 18 coastal EZs, and 26 border gate EZs, which have become key magnets for domestic and foreign investments. Many of them are accommodating large foreign enterprises such as Samsung, Canon, LG, Sumitomo, Foxconn, and VSIP.

 

Explaining why Vietnam holds this chance to attract new investment, especially in IPs and EZs, experts and international organisations said at a recent forum that aside from political stability, the economy is bouncing back quickly after the COVID-19 pandemic, with one of the fastest growth rates in the region, ensured major balances, and curbed inflation.

 

Many free trade agreements have also been signed and taken effect, creating optimum conditions for international investment and trading activities. Besides, thanks to the State’s attention to building infrastructure, especially expressways, and large businesses’ engagement in the work, infrastructure conditions for industrial development nationwide have been improved considerably.

 

Vietnam has “golden chance” to welcome new FDI wave hinh anh 2

 

Workers at the factory of the Korean-invested Youngbag Vietnam Co. Ltd in the Binh Xuyen Industrial Park, Vinh Phuc province (Photo: VNA)

 

However, Nguyen Anh Tuan, editor-in-chief of Nha dau tu (Investor) magazine, also pointed out certain challenges to investment attraction to IPs and EZs, including complex administrative procedures, lengthy site clearance for new IPs, issues related to law and policy enforcement, especially investment incentives and tax refunding, the shortage of high-quality manpower, and housing and social welfare for workers in IPs and EZs.

 

Economists said to welcome more investment, IPs and EZs need not only good infrastructure and excellent services but also assistance for investors. To do that, they in turn also need support from the Government.

 

Favourable conditions provided for IPs by the Government will facilitate investors, and difficulties facing IPs could also directly or indirectly affect investors, experts noted.

 

Deputy Minister Phuong said as the advisory body for the State management of IPs and EZs, the MPI will work with other ministries, sectors, and localities to continue overhauling mechanisms and policies and assisting investors to create an increasingly transparent and favourable business environment in IPs and EZs./.

 

Source: Vietnam News Agency

 

Vietnam’s maritime sector is striving to upgrade its international merchant fleet in order to reduce the country’s dependency on foreign-owned vessels in export-import activities.

 

A report of the Vietnam Maritime Administration (VinaMarine) showed that along with an average annual growth of 12 percent of  export-import turnover in the 2016-21, the cargo throughput of the country’s seaports saw stable increase in the period. In the first seven months of this year, the throughput growth slowed down but still showed a year-on-year rise of 2 percent, reaching about 63 million tonnes.

 

The country’s ports in recent years have been developed and are now able to accommodate the world’s largest ships.

 

However, containers imported and exported to and from Vietnam are mainly handled by foreign shipping lines, especially on long-distance sea routes to developed countries such as Europe and the US.

 

The domestic fleet currently mainly operates on domestic and short international routes in Asia, VinaMarine Deputy Director General Hoang Hong Giang said.

 

Vietnam looks to upgrade int’l merchant fleet hinh anh 2

 

Unloading container cargos at Cat Lai Port (Photo: VNA)

 

The country has 10 container shipping companies owning 48 container vessels capable of carrying 39,520 TEUs and only 17 of them are able to sail on Asian waters. There is a lack of container ships and large tonnage ships operating on international routes. Experts say the fleet’s irrational structure with mostly low capacity ships is limiting its competitiveness.

 

Vietnam’s merchant fleet ranks third among ASEAN nations and 28th in the world. A Vietnamese firm has invested in a 320,000-DWT oil tanker and over-1,000-DWT bunkers. The move serves as a foundation for the domestic fleet to move step by step in line with the global trend and optimise shipping costs.

 

VinaMarine has consulted the Ministry of Transport on a project on the development of Vietnam’s international merchant fleet between 2022 and 2030, towards the goal of maintaining its foothold in the domestic market and gradually bolster its presence and competitiveness on the global market.

 

Deputy Minister of Transport Nguyen Xuan Sang underlined that the development of an international merchant fleet under the project requires efforts from relevant State management agencies, firms and associations.

 

About 1.5 billion USD will be needed to add more vessels to the fleet in the first phase of the project running until 2026.

 

It is also crucial to improve the quality of crew members and adopt incentives designated to support seafarers./.

 

Source: Vietnam News Agency

 

National Assembly (NA) Chairman Vuong Dinh Hue attended a ceremony on October 1 in the southeastern province of Binh Phuoc to announce the establishment of Chon Thanh town in the province.

 

Under Resolution 570/NQ-UBTVQH15 dated August 11, 2022 of the NA Standing Committee, Chon Thanh town is formed comprising all 390.34 sq.km of natural area and a population of 121,083 of Chon Thanh district.

 

Chon Thanh district is home to several big industrial parks attracting many investors, such as Minh Hung-RoK, Minh Hung III, Chon Thanh I and II, and the Becamex Binh Phuoc industrial-urban complex.

 

Addressing the ceremony, the NA Chairman said Binh Phuoc province and Chon Thanh town should make the best use of their advantage of a strategic location and a transport hub connecting the southeastern, southwestern and Central Highlands regions to develop stronger and become a dynamic socio-economic and cultural centre as well as a transport hub in the region.

 

The same day, NA Chairman Hue visited and presented gifts to Vietnam Heroic Mother Nguyen Thi Ngung who lives in Chon Thanh town, and toured the DongWha MDF wood company./.

 

Source: Vietnam News Agency

 

The northwestern province of Dien Bien is hosting a Vietnam-Laos cultural, sport and tourism festival from October 1-3.

 

The festival, the third of its kind so far, has attracted the participation of ethnic artisans, artists and amateur athletes from 10 Vietnamese provinces bordering Laos, and 10 art troupes from Laos.

 

Activities during the event include demonstrations of festivals and ethic cultural practices, shows of ethnic costumes, displays of socio-economic achievements and cultural and tourism products of participating localities, folk art performances, and traditional sport competitions.

 

Field trips to survey tourism attractions in Dien Bien will also be held for delegations from Vietnamese and Lao localities.

 

Deputy head of the festival’s organising board Nguyen Thi Hai Nhung said the festival is intended to praise the special Vietnam-Laos relationship and introduce the potential and strength in culture, sport and tourism of ethnic groups in areas along the Vietnam-Laos border.

 

It also testifies to the consistent policy of the Vietnamese Party, State and people on strengthening and developing the close bonds between the two Parties, States and peoples of Vietnam and Laos, she said./.

 

Source: Vietnam News Agency

The National Figure Skating Championship started on October 1 at Royal City Ice Rink in Hanoi, marking a return of the event after two years.

 

For the first time, the competition will be organised under international standards supervised by five international experts from the Republic of Korea, Thailand,  Indonesia and Malaysia along with seven local judges with certificates from the International Skating Union.

 

The two-day tournament will see 17 athletes including four who just competed at the Junior Grand Prix of Figure Skating events held in Europe last month.

 

Participants will compete in nine categories including Basic Novice, Advanced Novice, Adult Skating and Ice Dance for different age groups ranging from eight to under-21.

 

“It is an important tournament of Vietnam sport in general and the Skating Federation of Vietnam (SFV) in particular,” said Nguyen Trong Kien, Vice President of the SFV.

 

“It marks the return of figure skating after a long delay because of the pandemic. Athletes have been excited to perform again. SFV will seek new talented athletes to the national team to compete internationally,” he said, hoping that the event would inspire more people, especially the young, to join the skating movement in Vietnam./.

 

Source: Vietnam News Agency

Prime Minister Pham Minh Chinh has ordered stronger efforts to achieve the best possible socio-economic development results in 2022 and create momentum for next year.

 

He made the request while addressing the Government’s teleconference with the 63 provinces and cities nationwide and the Cabinet’s regular meeting for September on October 1.

 

The Ministry of Planning and Investment reported that positive signs were seen in most socio-economic aspects in the first nine months of the year. The macro-economy remained stable, inflation was under control, major balances ensured, and monetary and fiscal policies implemented in a proactive, flexible, and effective manner.

 

Year-on-year GDP growth was estimated at 13.67% in the third quarter and 8.83% in the first nine months, the fastest nine-month pace during 2011 – 2022. Production and business activities have gradually regained momentum. The Government’s socio-economic recovery and development policy has proved effective.

 

The consumer price index (CPI) posted a year-on-year increase of 3.32% in Q3 and 2.73% in nine months, while the core inflation rose 1.88%.

 

Between January and September, State budget collection reached 94% of the target, up 22% from a year earlier; total social investment topped 2.1 quadrillion VND (nearly 88 billion USD), up 12.5%; and foreign trade turnover reached 558.52 billion USD, up 15.1%, with a trade surplus of about 6.52 billion USD. Implemented foreign direct investment grew 16.3% to 15.43 billion USD, the highest nine-month figure over the last five years, statistics show.

 

Cultural, social and environmental issues, along with natural disaster and climate change response, have also received due attention, the ministry said.

 

PM Chinh said despite considerable, fast, complex, and unpredictable changes in the global situation, thanks to efforts by the entire political system, people, and businesses, Vietnam has managed to obtain encouraging socio-economic results. International organisations also made positive assessments of the country’s socio-economic situation and issued optimistic forecasts for its economic growth, which is expected to be among the highest in Southeast Asian in 2022 and 2023.

 

However, he also pointed out latent risks to macro-economic stability and inflation control; sluggish implementation of the national target programmes and public investment disbursement; high input costs for production and business activities; the shortage of medicine and medical supplies in some hospitals and localities; the complex COVID-19 situation and slow vaccination; difficulties facing certain groups of people, especially in remote and ethnic minority areas; and increasing damage caused by natural disasters.

 

The PM underlined the importance of the last quarter, which is the time to “sprint” toward the “finishing line”, requiring the Government, sectors, and all-level authorities to show stronger determination and efforts to carry out the tasks identified by the Party, National Assembly and Government to achieve the best possible socio-economic results for 2022 and create a driving force for next year.

 

He ordered the COVID-19 prevention and control programme be pushed ahead, with vaccination to be sped up, and the shortage of medicine and medical supplies be addressed.

 

He asked for persistence in the target of sustaining macro-economic stability, controlling inflation, promoting growth, and ensuring major economic balances. Besides, it is also necessary to tighten management of prices of essential goods and services, keep a close watch on the regional and international situation while boosting analysis and forecasting in order to take timely and appropriate actions.

 

The Government leader highlighted the need to continue perfecting regulations, step up administrative reforms, ramp up the fight against corruption and negative phenomena, train high-quality human resources, and encourage scientific and technological application, innovation, digital transformation, green and circular economy development, and energy transition, which he said will create foundation for improving the economy’s productivity, quality, efficiency, competitiveness, and sustainable development.

 

He also told ministries, sectors, and localities to pay due attention to cultural, social and environmental issues, natural disaster and climate change response, defence and security safeguarding, diplomacy, and communications to promote consensus in the public and refute wrong and hostile viewpoints./.

 

Source: Vietnam News Agency

 

A delegation of the Ministry of Culture, Sports and Tourism led by Minister Nguyen Van Hung joined more than 2,500 delegates from 161 countries and territories at the UNESCO World Conference on Cultural Policies and Sustainable Development (MONDIACULT) 2022 held in Mexico from September 28-30.

 

During a thematic session entitled “Culture for sustainable development”, Hung shared Vietnam’s experience and recommendation on identifying and fully assessing the role and contributions of culture for sustainable development, as well as the building and development of cultural policies in the coming time.

 

Vietnam is fully aware of the role of culture as a driving force for sustainable development and commits to carrying out and achieving the 2030 Agenda, the minister underlined.

 

To capitalise on the country’s diverse cultural heritage and young and creative human resources, the Vietnamese Government has exerted efforts in building strategies, particularly the one for the development of cultural industries by 2030, he said, adding that Vietnam is also among the first countries to pilot the culture index to review cultural databases, policy frameworks and development programmes.

 

The culture sector currently accounts for 3.6% of Vietnam’s GDP, Hung said, adding that improving working conditions and welfare of cultural workers will be a priority in policies of Vietnam and the world in the time to come.

 

Meeting with UNESCO Chairperson of the Executive Board Tamara Rastovac Siamashvili, Hung expressed his hope that UNESCO will continue to support Vietnam in heritage conservation and the revision of the Law on Cultural Heritage.

 

For her part, Siamashvili spoke highly of Vietnam’s responsible participation in and contributions to UNESCO.

 

The minister also met Mexican Secretary of Culture Alejandra Frausto Guerrero to discuss measures to strengthen bilateral cultural cooperation, during which the sides affirmed the special role of culture for both countries, shared their priorities in the building and implementation of cultural policies and measures for socio-economic development and the realisation of sustainable development goals.

 

They agreed that culture and art exchange will serve as a driving force for the Vietnam-Mexico ties, and foster solidarity, friendship and mutual understanding between peoples of the countries.

 

The Mexican government and Secretariat of Culture wants to boost ties with Vietnam in culture-art and particular fields such as cinematography, exhibitions and archaeology, Frausto Guerrero stressed.

 

The two ministers consented to sign a cooperation agreement as soon as possible in sectors of mutual concern, as the two countries are looking forward to bringing the relations to a comprehensive partnership in the coming time.

 

Meeting with the head of the culture and cinematography committee of Mexican Chamber of Deputies, Carlos Francisco Ortiz Tejeda, Hung proposed the Mexican side uphold cultural values of President Ho Chi Minh in Mexican localities where the late President’s statues are placed, and increase cultural exchange through holding film weeks and annual exhibitions of Vietnam and Mexico.

 

He welcomed Mexican filmmakers to Vietnam for filming, and invited Mexico to send films to attend the sixth Hanoi International Film Festival slated for November./.

 

Source: Vietnam News Agency