June 3, 2023 – Vietnam Newswire

June 3, 2023

Focusing on export, investment, consumption to boost growth: PM

Prime Minister Pham Minh Chinh on June 3 asked ministries, agencies and localities to push the three engines of export, investment and consumption in order to spur the country's economic growth in the time ahead.

Speaking at an online regular meeting between the Government and localities, the leader stressed the need to remove obstacles to production and business, and help enterprises in administrative procedures, interest rates and market expansion.

He also urged localities to accelerate the disbursement of public investment capital and the implementation of the socio-economic recovery and development programme as well as national target programmes, and focus on site clearance and material preparations for key projects.

Apart from promoting domestic consumption, it is necessary to expand export markets, the PM said, highlighting other tasks such as effectively optimising free trade agreements, materialising the National Power Development Plan VIII which has been approved recently, ensuring food for domestic consumption and exports, having the European Commission (EC)'s “yellow card” warning against Vietnam's seafood exports lifted, and dealing with the shortage of medicines, vaccines and medical equipment, among others.

The move is to maintain the macro-economic stability, control inflation, boost growth and ensure major economic balances, PM Chinh emphasised.

According to the leader, over the past five months, thanks to joint efforts by the Government, ministries, agencies and localities, progress has been made in production, business, export, foreign direct investment (FDI) attraction and the real estate market.

The socio-cultural and sport fields have also recorded development, he continued, adding that people’s lives have remained stable, social order and safety and national defence and security have been ensured, and external affairs and international integration have been stepped up.

The participating Deputy PMs, and representatives of ministries, agencies and localities shared the view on the drastic, close instruction and the flexible, effective management of the Government and the PM over the past time, leading to positive changes in the socio-economic situation despite a range of difficulties and challenges.

They also pointed to the huge growth pressure in the remaining months of this year, saying the growth rate must be higher than that recorded in the previous period.

To that end, they raised proposals regarding the implementation of big investment and construction projects, credit and tax policies, work permit and visa, and wage, among others./.

Source: Vietnam News Agency

June 3, 2023

Vietnam emerges as a major motorcycle market and manufacturing hub

Vietnam's motorcycle market has been among some of the fastest-growing markets in the world in the last decades despite setbacks brought by the COVID-19 global pandemic, according to the Vietnam Association of Motorcycle Manufacturers (VAMM).

Currently, there are more than 70 million registered motorcycles in the Southeast Asian country with the figure projected to grow even larger in the future. In the first four months of 2023 alone, the country produced more than 1 million new motorcycles.

Five major manufacturers: Honda, Yamaha, Suzuki, Piaggio, and SYM hold over 90% of the market share in Vietnam, manufacturers also export fully assembled models to international markets.

VAMM said the stage has been set for Vietnam to become an attractive destination for motorcycle manufacturers in the Asia-Pacific region.

Due to supply chain difficulties and rising trade tension between the US and China, manufacturers have been shifting their investments to smaller markets in Asia to minimise risks. For example, the Japanese government has allocated a 2.2 billion USD fund in support of Japanese businesses relocating from China while the US government has been calling for US businesses to either return to the US or relocate to another country.

Against this backdrop, Vietnam has emerged as a promising new destination for many motorcycle manufacturers.

Honda Vietnam currently owns and operates three factories in the country with a production capacity of 2.5 million motorcycles a year. Yamaha Motor Vietnam owns and operates two factories. Piaggio Vietnam owns and operates two factories with a production capacity of 250,000-400,000 motorcycles a year.

However, the market is not without its challenges.

Vietnam's motorcycle market in recent years has shown signs of saturation. While annual motorcycle production continued to rise, demand and purchasing power have largely failed to keep up. This has forced manufacturers to start investing more in product diversification, particularly in the premium segment, as well as seeking ways to boost exports of fully assembled models, and spare parts to international markets.

For instance, Yamaha Motor Vietnam has been exporting models to supplement the Indonesian market since 2019. Last year, the company became the first foreign factory to produce and export the NEO'S electric motorcycle to European markets.

In May this year, Yamaha Motor Vietnam officially inaugurated its fourth assembly line, specifically for engine assembly for exports. This move demonstrated the Japanese company's confidence and commitment to Vietnam.

According to the company, the new line will produce engines for export to Thailand during Phase 1 with a localisation rate of up to 95%. Over the next three years, the company is to expand its exports to other markets including the Philippines, Indonesia, and Malaysia, with an expected export volume of around 200,000 units.

Similarly, Honda Vietnam has been pushing the export of fully assembled models and spare parts. Last year, the company exported 207,000 motorcycles with a total export turnover of over 462 million USD, a 25% increase in revenue over 2021, according to VAMM. The company said this year it has set a target to export nearly a quarter of a million models or a 9% increase over 2022.

According to industry experts, in order to maintain growth in the Vietnamese market companies must start investing in the development of new product lines to cater to customers' evolving preferences.

New trends include prioritising energy-efficient models, compact design and hassle-free operation.

According to MotorCycles Data, a website specialised in the motorcycles market data and forecast, Vietnam's electric bike segment has maintained a steady growth rate at 5.6% during the first quarter of 2023 in comparison to a contracted internal combustion segment./.

Source: Vietnam News Agency

June 3, 2023

Tokyo conference calls for Japanese investment in Vietnamese localities

An investment promotion conference was held in Tokyo on June 2 to call for Japanese investment in localities of Vietnam.

The event drew the participation of leaders of the Vietnamese Ministry of Foreign Affairs, Embassy of Vietnam in Japan, representatives of four localities, namely Can Tho city, and Kon Tum, Bac Lieu and Thua Thien-Hue provinces, and businesses of the two countries. It was part of the activities to mark the 50th founding anniversary of Vietnam-Japan diplomatic ties.

Addressing the opening ceremony, Vietnamese Deputy Minister of Foreign Affairs Le Thi Thu Hang said ample room remains for the development of bilateral cooperation in general and cooperation between Vietnamese and Japanese localities, contributing to the enhancement of their relations and bringing benefits to the people of the two countries.

According to Tsukada Manabu, Senior Director for Global Strategy (Southeast Asia) at the Japan External Trade Organisation (JETRO), Vietnam plays an increasingly prominent role in the Association of Southeast Asian Nations (ASEAN) on attracting investment from Japanese enterprises.

The result of a recent survey conducted by JETRO showed that up to 60% of Japanese enterprises said they will expand their investment in Vietnam, while only 47% of businesses said they will expand their investment in Southeast Asia in general. This fact shows that Vietnam is appreciated by Japanese businesses more than ASEAN in terms of cooperation potential and market resilience.

Nguyen Huu Thap, Vice Chairman of the Kon Tum Provincial People's Committee, said that since 2017, the province has sent eight business delegations to Japan and welcomed 31 delegations of Japanese experts, scientists and representative agencies.

According to the official, there are 33 official development assistance (ODA) projects funded by the Japanese Government in Kon Tum province to improve socio-economic infrastructure with a total investment of 16 million USD. It has also received more than 2.17 million USD from Japanese organisations for the implementation of 14 projects, focusing on healthcare, rural infrastructure construction and education-training.

Kon Tum province prioritises attracting investment in the fields of high-tech agriculture, renewable energy, urban development, eco-tourism and community, Thap added.

Meanwhile, Nguyen Ngoc He, Vice Chairman of the Can Tho City People's Committee, said it intends to offer favourable conditions for investors to push up the locality’s development in a sustainable manner. Accordingly, domestic and foreign businesses will enjoy preferential policies on customs procedures, corporate income tax and land rent exemption for the long term.

Within the framework of the conference, participants witnessed the granting of an investment certificate of Thua Thien-Hue province to Okura Industrial Company of Japan and the exchange of contracts between Saigon - Hue Investment Joint Stock Company and the Okura Industrial Company./.

Source: Vietnam News Agency

June 3, 2023

Vietnam-UNDP: 45 years of cooperation for sustainable development

The 45th anniversary of the Vietnam-United Nations Development Programme (UNDP) partnership for sustainable development was held on June 2 evening in Hanoi.

The ceremony, co-organised by the Ministry of Planning and Investment and UNDP, marked an important milestone in the two sides’ cooperation.

Speaking at the ceremony, Deputy Minister of Planning and Investment Tran Quoc Phuong said that since UNDP opened a representative office in Hanoi in May 1978, UNDP has always worked side by side with Vietnam.

From a poor country which was devastated by war to a middle-income country, now Vietnam is taking the lead in taking measures towards poverty reduction and economic growth.

“With joint efforts contributing to the 2030 Agenda for Sustainable Development, leaving no one behind, the Vietnamese Government always considers UNDP as one of its most important, long-term partners. We cooperate for the common interests of Vietnamese people, for peace and prosperity in the region and in the world," said Phuong.

UNDP Representative in Vietnam Ramla Khalidi said that three factors contribute to the success of the UNDP-Vietnam partnership: trust, shared values and openness.

She said that Vietnam and UNDP have worked together to promote sustainable growth.

Over the years, the trust has expanded the two sides’ partnership into new areas including trade, climate affairs and public governance.

As Vietnam aspires to achieve advanced country status and net zero emissions by 2050, the full support of UNDP is still needed, she said.

Since 1978, cooperation between UNDP and Vietnam has flourished with invaluable support during economic hardship.

UNDP quickly responded to Vietnam's needs, focusing on efforts to rebuild the country while establishing systems, technologies, and fundamental capacities, of which, humans are considered the centre of sustainability.

A typical example of UNDP's effective support for Vietnam is the Law on Enterprises formulation, marking a breakthrough in establishing a fair business environment and healthy competition for enterprises.

Enacted in 2000, the law played a key role in promoting the rapid growth of private enterprises, creating more than one million jobs in only three years.

From the Millennium Development Goals (2000-2015) to the Sustainable Development Goals (2015-2030), UNDP has worked closely with Vietnam's other partners to ensure everyone has equal access to the opportunity to reach their full potential./.

Source: Vietnam News Agency

June 3, 2023

Vietnam attends 20th Shangri-La Dialogue in Singapore

A delegation of the Vietnamese Ministry of National Defence led by Deputy Minister Sen. Lieut. Gen. Hoang Xuan Chien is attending the 20th Shangri-La Dialogue that officially opened in Singapore on June 3.

Organised by the International Institute for Strategic Studies (IISS), the dialogue has brought together more than 550 delegates who are defence and security officers and scholars from 41 countries.

The event, lasting until June 4, features seven plenary sessions and six special sessions that touch upon various issues like security in cyberspace competition, challenges to developing military capacity in Asia-Pacific, nuclear threats and challenges to regional security, and defence cooperation trends in Indo-Pacific.

On the sidelines of the dialogue, Chien met with leaders of defence ministries and delegation heads of some participating countries, including Chinese Minister of National Defence Sen. Lieut. Gen. Li Shangfu.

Chien and Li shared the view that the Vietnam-China defence cooperation has received attention of all-level leaders of both sides, saying it is growing practically and becomes an important pillar of the bilateral comprehensive strategic cooperative partnership.

Li stressed that the defence cooperation has been further implemented in line with the common perceptions reached by high-ranking leaders of the two countries, especially after the official visit to China by General Secretary of the Communist Party of Vietnam (CPV) Central Committee Nguyen Phu Trong.

Chien suggested the two sides continue with delegation exchanges and other collaboration activities in border and sea management and defence, and soon organise the eighth Border Defence Friendship Exchange, and the defence strategic dialogue.

At a meeting with Australian Deputy Prime Minister and Minister for Defence Richard Donald Marles, the two officials noted that the bilateral defence ties have made new strides in all fields, from delegation exchange to training and maritime security, especially UN peacekeeping operations.

They consented to maintain cooperation in the agreed areas, firstly accelerating the signing of an agreement on the partnership in peacekeeping, and upgrading the Joint Vision for Enhancing Defence Cooperation.

Chien used this occasion to thank Australia for its support in transporting Vietnam’s level-2 field hospitals to UN peacekeeping missions.

In this regard, Marles affirmed that Australia will help the Southeast Asian nation transport its level-2 field hospital rotation 5 to South Sudan later this month.

Meeting with Japanese Vice Minister of Defence Masami Oka, Chien called on the Japanese side to further assist Vietnam in peacekeeping operations in terms of training and experience sharing.

On this occasion, the Vietnamese officer also had meetings with representatives of the Singaporean Ministry of Defence, and Assistant Deputy Minister of Canada Peter Hammerschmidt./.

Source: Vietnam News Agency

June 3, 2023

Friendship parliamentarians’ group contributes to Vietnam-Japan multi-faceted cooperation

The Vietnam - Japan Friendship Parliamentarians' Group convened its third meeting in the northern province of Lao Cai on June 3 under the chair of its President Truong Thi Mai.

The participants listened to a report reviewing the group’s activities since the beginning of this year, and approved an action plan for the remaining months. They also learnt about Lao Cai’s socio-economic situation and investment cooperation opportunities between the two countries.

The group will continue coordinating with relevant agencies of Vietnam and Japan in organising activities to celebrate the 50th anniversary of the bilateral diplomatic ties in the second half of this year, heard the meeting.

It will also further partner with the Japan - Vietnam Parliamentary Friendship Alliance and Japanese parliamentarians in promoting collaboration between the two countries in different areas like development cooperation, trade, investment, health care and education, while enhancing people-to-people exchanges and cooperation between localities.

Speaking at the meeting, Japanese Ambassador to Vietnam Yamada Takio expressed his hope that the relations between Japan and Vietnam in general and Lao Cai in particular will be elevated to a new height.

In her remarks, Mai, who is a Politburo member, Permanent member of the Party Central Committee’s Secretariat, and head of the committee’s Organisation Commission, affirmed that Vietnam attaches importance to the extensive strategic partnership with Japan, and always regards the East Asian nation as a leading important, long-term partner.

The bilateral relationship is at its best since the establishment of the diplomatic ties, with high political trust, she said.

The official also noted her hope for more effective cooperation between the Vietnam - Japan Friendship Parliamentarians' Group and the Japan - Vietnam Parliamentary Friendship Alliance, as well as between the legislatures of the two countries./.

Source: Vietnam News Agency

June 3, 2023

Cambodian newspaper highlights Vietnam’s priority investment in Khmer-inhabited areas

Rasmei Kampuchea, a newspaper with the largest readership in Cambodia, ran an article on June 2 highlighting Vietnam’s investment priority policy for ethnic groups in the country in general and the Mekong Delta in particular, including the Khmer ethnic people.

The article cited presentations at the seminar "Solutions for sustainable socio-economic development for ethnic groups in the Mekong Delta" that took place in Can Tho city in mid-May, saying that the Mekong Delta has a population of 17.3 million people. Of which, there are more than 1.3 million ethnic minority people, accounting for nearly 7.6% of the region’s population, with the Khmer people make up the largest number with over 1.1 million.

According to the article, ethnic minority groups in Vietnam in general and the Khmer people in particular have their own cultural identity, traditional religion, customs and script and language, contributing to the creation of unity in diversity of Vietnamese culture.

Along with investing in building infrastructure systems in ethnic-inhabited areas through many priority programmes and projects over the years, the Party and Government of Vietnam have paid attention to creating favourable conditions for the Khmer people to maintain their religious practice and traditional festivals. The region boasts 446 Khmer Theravada Buddhist temples, the article wrote.

In addition to pouring capital into economic development and improving the lives of the Khmer ethnic people, due attention has also been paid to policies on education, training, and fostering human resources for the Khmer ethnic community, it said.

The Mekong Delta region currently has 34 boarding schools for ethnic minorities with more than 11,600 students, mainly children of Khmer people.

Regarding sustainable livelihoods for ethnic minorities in the Mekong Delta in general, and the Khmer community in Vietnam in particular, the Party and State of Vietnam have identified views, goals and solutions for the development of ethnic minority areas by 2030, with a vision to 2045, which underlining the need to generate sustainable livelihoods on the basis of preserving and promoting the traditional cultural identity of the nation, the article wrote.

Relevant agencies and departments of Vietnam at all levels have been focusing on carrying out three national target programmes, including the national target programme on socio-economic development in ethnic minority and mountainous areas for the 2021-2030 period, which has been approved by the Government of Vietnam with a total investment of over 137.66 trillion VND (5.86 billion USD), it said.

For localities in the Mekong Delta, the implementation of this programme is considered as fundamental solutions for socio-economic development, creating sustainable livelihoods associated with preserving and promoting cultural traditions in ethnic minority-inhabited areas in general and the Khmer ethnic minority group in particular, according to the article./.

Source: Vietnam News Agency

June 3, 2023

Vietnamese leaders send condolences to India over deadly train crash

President Vo Van Thuong on June 3 sent a message of condolences to his Indian counterpart Droupadi Murmu over the deadly train crash which left many people dead and injured in India’s Odisha state a day earlier.

Prime Minister Pham Minh Chinh also extended his condolences to Indian PM Narendra Modi.

The same day, Minister of Foreign Affairs Bui Thanh Son also sent a message of condolences to his Indian counterpart Subrahmanyam Jaishankar over the accident.

Local media reported that the Odisha train crash killed at least 280 people and injured more than 900 others./.

Source: Vietnam News Agency