Ample room remains for Vietnam-Singapore cooperation in digital economy: expert

Vietnam and Singapore hold substantial potential for cooperation in digital economy, science-technology and green economy, Dr. Pham Duc Minh from the Agency for Science, Technology and Research under the Singaporean Government has said.

In an interview granted to the Vietnam News Agency on the occasion of the official visit to Singapore by Prime Minister Pham Minh Chinh from February 8-10, Minh said Singapore, the pioneer in Southeast Asia as well as Asia-Pacific in this regard, wants to expand cooperation with other countries in the region in the fields.

Given limitations in the domestic market, Singaporean firms and others based in the country are in need of such cooperation, the expert explained.

Ample room remains for Vietnam-Singapore cooperation in digital economy: expert hinh anh 2

Illustrative image (Source: danviet.vn)

For Vietnam, he added, digital economy, science-technology and green economy have been facilitated in terms of policy, finance and infrastructure.

According to Minh, PM Chinh’s visit aims to celebrate the 50th anniversary of the bilateral diplomatic ties and the 10th anniversary of the strategic partnership between the two countries, and looks towards stronger collaboration in these spheres.

The cooperation would help Vietnamese businesses access cutting-edge technologies as well as the Singaporean market, he said, adding that Singapore would be a gateway for them to expand their reach in the region.

The expert stressed that Singapore was one of the first investors in Vietnam, and it remains a leading investor in the country. He also suggested the two sides apply lessons drawn from their previous cooperation models to collaboration in digital economy and science-technology, with suitable adjustments./.

Source: Vietnam News Agency

Argentina-Vietnam Friendship Parliamentarians’ Group debuts

The Argentina-Vietnam Friendship Parliamentarians’ Group made its debut at the Argentine Chamber of Deputies’ headquarters in Buenos Aires on February 7.

President of the nine-member group Maria Rosa Martinez affirmed that it will actively contribute to strengthening political, economic and trade ties as well as cooperation and solidarity between the two countries’ legislative bodies and peoples.

Vietnamese Ambassador Duong Quoc Thanh said that the establishment of the group demonstrates the attention by the Argentine National Congress to promoting cooperation between the two countries. He stressed the significance of this event on the occasion of the 50th anniversary of the bilateral diplomatic relations.

The diplomat pledged to cooperate closely with the group as well as the National Congress in organising more meaningful activities in order to bring the bilateral relationship to a new height.

At the first meeting of the group, Martinez presented the group’s orientations of action in the coming time to serve as a bridge contributing to deepening the solidarity, friendship and cooperation between the two legislative bodies. Its members also contributed ideas to bring the two countries.

They also expressed their wish to exchange experience with Vietnam in socio-economic development, poverty reduction, sustainable economic growth, as well as in areas in which the two sides can complement each other for mutual development./.

Source: Vietnam News Agency

Vietnamese fruits hold lion’s share in Australian market

Vietnamese fresh fruits under code HS 081090, including tamarind, jackfruit, lychee, plum, passion fruit and starfruit, have earned a lion’s share in the Australian market.

According to the International Trade Centre (ITC), in the first 11 months of 2022, Australia imported 8.2 million USD worth of fruits under HS 081090 code, up 3.1% against the same period in 2021.

Of the figures, products from Vietnam accounted for 4.4 million USD, an increase of 22.3% year-on-year.

Vietnam was also the sole country providing fresh lychee to Australia.

During 2017-2021, Australia’s imports of fruits coded HS 08109 enjoyed an annual average growth of 11.6%, averaging 7.7 million USD a year. The value for 2021 was 8.8 million USD./.

Source: Vietnam News Agency

Appropriate foreign ownership limit at banks expected to attract investment

Foreign ownership limits at credit institutions were expected to be raised to an appropriate level to attract foreign investment, which plays an important role in improving operational efficiency and accelerating the banking sector’s restructuring.

The State Bank of Vietnam is drafting a decree to amend several points of the Government’s Decree No 01/2004/ND-CP dated January 3, 2014, about foreign investors purchasing stakes at Vietnam’s credit institutions.

An amendment proposal which attracted attention was that banks which received the forced transfer of weak credit institutions could extend the foreign ownership limit from 30% to 49%.

Nguyen The Minh from Yuanta Securities Vietnam said that to attract big foreign investors, the foreign ownership limit must be attractive enough to ensure their rights.

Increasing the foreign ownership limit to 49% might create a “magnet” for foreign investors, he said, adding that this would also help foreign investors to have large enough stakes to participate in the governance and management to improve operational efficiency and accelerate the restructuring process.

According to Yuanta, among banks which were participating in the process of restructuring weak credit institutions, except for Vietcombank, which has a State stake of more than 50%, the remaining three banks, including MBBank, HDBank and VPBank, would have the opportunity to increase the room for foreign ownership.

The foreign stake at MBBank is currently at 23.24%, HDBank 18% and VPBank 17.6%, much lower than the proposed limit of 49%.

If the foreign ownership limit at credit institutions is raised to 49%, there would be significant room for banks to raise capital from international financial institutions to restructure weak banks transferred to them.

Under the EU – Vietnam Free Trade Agreement, within five years of the agreement’s effective date, Vietnam would consider allowing two European credit institutions to own up to 49% of the charter capital of two Vietnamese banks (except for the Big 4 group).

This meant that up to five banks could have a foreign ownership limit of 49%.

According to Vietnam Securities Depository, as of January 3, among 30 listed commercial banks, 16 of them had at least 15% in foreign stakes.

Despite the proposal to increase foreign ownership limits, it is not easy to attract foreign investment.

While some banks are running out of room for more foreign ownership, others failed to attract foreign investments to the limit of 30%.

According to General Director of the Banking Association Nguyen Quoc Hung it is necessary to improve the legal framework in a way that is more in line with international practices and ensures long-term stability and consistency.

Hung Hùng said that increasing the foreign ownership limit was necessary, but it must ensure the harmonisation of benefits between investors and State management requirements, stressing that clear and consistent policies from the beginning would greatly support commercial banks in accelerating the restructuring and integration process.

With a cautious viewpoint, expert Vo Tri Thanh said that there should be different foreign ownership limits for different groups of banks, depending on the assessment of the State Bank of Vietnam.

For example, commercial joint stock banks which completed Basel II and were underway to implement Basel III could be allowed to increase their foreign ownership limit to more than 30%.

However, Vietnam needed to study more carefully the benefits of increasing the foreign ownership limit, Tran Thi Hong Minh, Director of the Centre Institute for Economic Management, said.

She added that the increase of foreign ownership limit should be considered along with other policies and proposals about developing international financial hubs, fintech and payment intermediaries.

Promote securities market

In June 2022, once again, Vietnam was not included in the list of Morgan Stanley Capital International (MSCI) for consideration of upgrading from a frontier market to an emerging market. Out of 17 ranking criteria, MSCI assessed that Vietnam did not meet nine criteria, one of which was “foreign ownership limit”.

Financial expert Duong Anh Vu said it was necessary to increase the foreign ownership limit at listed banks early.

Many other markets in the region with T transactions and similar securities market infrastructure and technical conditions were upgraded to emerging markets while Vietnam remained at frontier status. The only difference was that foreign ownership in Vietnam was limited, Vu pointed out.

According to Minh, foreign ownership was the core factor in upgrading to an emerging market.

“We must create a fair playing ground for every investor,” he stressed.

In other words, if foreign ownership at banks was still limited at 30%, the road to emerging markets was far away, Minh said, adding that banking stocks were the group with the highest market capitalisation on the stock market./.

Source: Vietnam News Agency

January payment transactions via national public service portal valued at 11.8 mln USD

Over 644,000 payment transactions with a total value of more than 279 billion VND (over 11.8 million USD) were processed through the National Public Service Portal in January, according to the Ministry of Information and Communications.

Over 338,000 accounts were registered, while over 7.2 million records were synchronised with the portal in the month.

Since its debut in December 2019, the portal provided 4,377 public services online with over 4.3 million registered accounts.

The portal has so far attracted over 1.1 billion visits, and processed over 8.5 million records online and over 4.6 million online payment transactions worth over 3.8 trillion VND.

To improve the business environment and national competitiveness in 2023, the Government has requested the ministries, sectors and localities to soon complete national databases and effectively implement the project on developing the application of population database, e-identification, and e-authentication for national digital transformation in the 2022-2025 period, with a vision to 2030.

The national public service portal provides 14 groups of online payment services, with eight for people and the rest for businesses./.

Source: Vietnam News Agency

Businesses increasingly embrace sustainability

Nguyen Thi Lien, deputy general director of PPJ Group, a leading textile and garment manufacturer and exporter, said green consumption has become a trend in the global market, and manufacturers such as her company have made drastic changes to fall in line.

The company has a sustainability programme based on the 4Rs (reduce water, energy and chemical; reuse water and energy; recycle raw material; and respect ethical labour practices), she said.

“By using the latest technological advances in the production chain, not using harmful chemicals, implementing energy saving programmes, and reducing emissions, we are able to make products that are sustainable and consumer- and environment-friendly.

“In the past the company had to use 40 litres of water to produce a pair of jeans. Today, with modern machinery and technology, we need only 4% of that to make a similar product.”

Sustainable production also enables her company to “create a better working environment for employees, meet the rising demand of and gain credibility with customers, especially high-end brands, improve competitiveness and get more orders,’’ she said.

In 2022, though the textile and garment industry was mired in difficulties due to a lack of export orders, PPJ achieved growth of 20%, she added.

Dairy giant Vinamilk has invested more than 3 trillion VND (128 million USD) in its three ecological dairy farm chain, Green Farm, which has embraced the circular economy, regenerative agriculture and technologies to minimise its environmental footprint and emissions.

Vinamilk has said it plans to make its 13 other farms also green in the near future.

Other businesses are starting to deploy circular economic value chains for their products.

Thanh Binh Co., Ltd. in Dong Thap province, for instance, uses the straw left after harvesting rice to grow straw mushrooms, rice husk to make pellets to be used as fuel for export and rice bran to make cooking oil and animal feed.

The fisheries sector too had seen many sustainable programmes, Truong Ðình Hòe, general secretary of the Vietnam Association of Seafood Exporters and Producers, said.

Kien Giang province has approved a sustainable fisheries development project in Hon Dat district on an area of around 5,500ha to be implemented over the next three years.

Businesses in Ca Mau Province are promoting high-value aquaculture using the shrimp-forest farming model, which does not use drugs or chemicals, and helps protect forests.

The province has more than 27,500ha of shrimp-mangrove forests, of which 19,000ha meet international quality standards (Naturland, EU Organic, Canada Organic, Selva Shrimp, ASC, BAP…).

“Their products are popular in many markets,” Hoe said.

But certain issues are preventing many firms from going green.

Lien listed the high cost of investment in technology and equipment and need for qualified technical personnel hurdles to achieving sustainability.

But Hoe said: “The development of agricultural production towards green economy is an inevitable trend that must be followed sooner or later. Therefore, we must convince and mobilise farmers and enterprises to embrace the green economy.”

Inevitable trend

Speaking at the Vietnam Export Promotion Forum late last year, Minister of Industry and Trade Nguyen Hong Dien said green growth and circular economy were becoming global trends as part of efforts to reduce greenhouse gas emissions and achieve carbon neutrality.

Major import markets were imposing high taxes on products with large “carbon footprints” and many developed economies had set strict environmental regulations for imports, he said.

So exporting countries like Vietnam needed to change their mindset and pay more attention to the “greenness” of their supply chain and trade, he added.

Jean-Jacques Bouflet , vice chairman of the European Chamber of Commerce in Vietnam, said Vietnam had taken advantage of free trade agreements to diversify and increase exports.

The trade deals, especially the EU-Vietnam FTA, have commitments both in terms of trade and social responsibility for sustainability, including the creation of environment-friendly products, he said.

“Consumers around the world, particularly in Europe, are focusing more and more on values that go beyond product quality such as green and sustainable manufacturing processes,” he said.

Therefore, Vietnam’s exporters would have to restructure to meet the social responsibility and environmental standards, he said.

Bartosz Cieleszynski, deputy head of the trade section, EU Delegation to Vietnam, said: “The results of the EVFTA are already very significant. With widespread coverage of full dismantling of nearly all tariffs for 71% of Vietnamese exports to the EU and 65% of the EU’s exports to Vietnam, the advantage of market access is unquestionable.”

“On one hand, such tariff elimination promotes two-way trade. On the other, and more importantly, the full elimination of tariffs together with commitments in the chapter of Trade and Sustainable Development should enable stronger trade flows of green products.”

Assoc Prof Dr Nguyen Hong Quan, director of the Institute for Circular Economy Development at the Vietnam National University – HCM City, said a survey done by McKinsey found that 63% of consumers consider the sustainability of brands when making purchase decisions.

According to a Nielsen market report, the global market for “green” products is growing faster and more profitable than its “brown” counterparts, he said./.

Source: Vietnam News Agency

Indonesia strengthens measures to prevent violence in education environment

Indonesia’s Education, Culture, Research, and Technology Ministry has strengthened the capacity of the Inspectorate General (Itjen) in violence prevention and handling in the education environment.

Speaking in a conference on enhancing education quality in Jakarta on February 6, Education, Culture, Research and Technology Minister Nadiem Anwar Makarim said surveys have indicated a high level of violence faced by Indonesian students.

Makarim noted the ministry has issued a regulation on sexual violence prevention and handling in universities and another on violence in education unit environment prevention and handling.

The minister affirmed that the two regulations offer the necessary impetus to improve service quality in eradicating three major problems in education, specifically sexual violence.

He stressed that the Itjen have a major responsibility of handling cases of violence, specifically sexual violence, in a more transparent and systematic manner in accordance with the procedure.

He reminded Itjen of their responsibility of taking care of the victims’ security and secrecy as well as paying attention to their needs./.

Source: Vietnam News Agency