Day: March 12, 2024

Hanoi: The newly elevated relationship between Vietnam and the US to the comprehensive strategic partnership not only deepens the two countries' diplomatic relations but translates as an opportunity for Washington to upgrade Vietnam's recognition as a market economy, said James Borton - a non-resident senior fellow at the Foreign Policy Institute (FPI) of the Johns Hopkins University's Paul H. Nitze School of Advanced International Studies (SAIS). In an article published on geopoliticalmonitor.com on March 11, Borton said the market status recognition will bring many economic benefits to both countries. He wrote that with the burgeoning trade flows between the two countries and the White House's push for the establishment of the partnership agreement on the Indo-Pacific Economic Framework for Prosperity (IPEF), market status recognition would help Vietnam expand its trade and investment with the US. The bilateral benefits for US companies derived from recognition of Vietnam as a market economy include mark et access and export opportunities, namely in agriculture, machinery, aircraft, and pharmaceutical products, all of which contribute to the development of a supply chain that suits the US's interests. Market-status recognition would also contribute to a reduction in trade barriers, making it easier and cheaper for US businesses to export goods and services to Vietnam, according to Borton. Furthermore, the US's recognition of Vietnam as a market economy could further incentivise US companies to diversity their supply chains. Additionally, lower import prices and improved market access could enable US companies to increase their output and production in Vietnam. This offers the potential to generate increased sales revenues and profitability for American companies operating in Vietnam According to Borton, telecommunications, information technology, power generation, transportation infrastructure construction, environmental project management, and technology will continue to offer promising opportunities for US companies. Vietnam's efforts in creating favourable business environment and equality for international investors are also mentioned in the writing. The author cited the World Bank's 'Doing Business 2020' report which placed Vietnam at the commendable rank of 70th out of 190 economies, reflecting its commitment to nurturing favourable conditions for business operations. Furthermore, US News and World Report ranked Vietnam seventh among 78 countries in which to start a business in 2021, up 5 spots from a year earlier. A total of 72 countries have recognised Vietnam as a market economy including the UK, Canada, Australia, and Japan./. Source: Vietnam News Agency

Hanoi: The fleets of some Vietnamese airlines are likely to shrink in 2024 and 2025, thus subsequently affecting their transportation capacity on domestic and international routes, said the Civil Aviation Authority of Vietnam (CAAV). Giving several reasons for the fleet contraction, the CAAV said that in September 2023, engine manufacturer Pratt and Whitney announced the recall of PW1100 engines, which may affect 600 - 700 engines of this type used for aircraft around the world, to conduct in-depth examinations and repairs. In Vietnam, this type of engines is being used on some A321NEOs of Vietnam Airlines and VietJet Air. The recall will force those aircraft to cease operating in 2024 and 2025, starting January this year. Besides, the CAAV noted, Bamboo Airways has also halted using three Embraer E190s along with the routes using these planes, namely Hanoi - Hue/Dong Hoi/Con Dao and Ho Chi Minh City - Dong Hoi/Con Dao, to carry out restructuring, reduce expenses, and improve performance efficiency. Its flights on the Hanoi - Con Dao route will stop on April 1. Facing that fact, the CAAV has asked the carriers to make aircraft supplementation plans, including renting aircraft and crew for peak periods and optimising the operations of available vehicles. It also demanded them to update the lists of rescheduled flights on their websites or other means of media so that passengers can proactively arrange their trips, seriously fulfill carriers' obligations towards passengers, and prevent illegal hikes of ticket prices. The authority also recommended those using air transport services to select suitable means of transport, book tickets early, and buy tickets via official offices of airlines to have their rights guaranteed. During the Lunar New Year holiday, Vietnamese airlines rented 15 aircraft with crew. Up to 7.2 million seats were supplied during this peak period, up 16% from the 2023 holiday and 26% from the current normal period, statistics showed./. Source: Vietnam News Agency

Hanoi: Deputy Prime Minister Tran Luu Quang on March 12 said that there remains ample room for the cooperation between Vietnam and Nordic countries as they have advantages to support and complement each other in many fields. Speaking at a conference of leaders of Nordic businesses that are investing in Vietnam, Quang expressed his hope that big corporations and companies from the Nordic region, with their experience, strengths, and reputation, will continue to support and accompany the Vietnamese Government and enterprises. He expected that they will have breakthrough, creative, modern solutions, seize opportunities, and expand investment cooperation in areas where both sides have strengths and potential. Quang also hoped that Nordic investors will help the Vietnamese Government to continue perfecting institutions, mechanisms, and policies to encourage businesses to apply sustainable business models, develop new industries, as well as digital, green, and circular economy. The Deputy PM also asked Nordic co rporations and businesses to promote cooperation directions that they have strengths in and that Vietnam has needs such as finance - banking, green industries, education and training, and healthcare. In the spirit of 'harmonising benefits and sharing risks', the Vietnamese Government will always accompany, support, and create favourable conditions for the business community in general and foreign investors in particular, including those from the Nordic region, to do successful, sustainable and long-term business in Vietnam, Quang affirmed. On this occasion, Quang clarified issues that Nordic corporations and businesses are concerned about relating to administrative reforms, electricity supply, agricultural development, human resource training, and Vietnam's diplomatic relations./. Source: Vietnam News Agency

Hanoi: The Vietnamese economy is forecast to expand at 5.5% in the first quarter of the year as manufacturing and trade regain momentum, according to the United Overseas Bank Limited (UOB). Suan Teck Kin, Head of UOB's Research, Executive Director, Global Economics and Markets Research, was quoted by vneconomy.vn as saying that the manufacturing sector and international trade are showing signs of recovery. 'We expect this pace to be sustained, especially in the second half of 2024, as the recovery in the semiconductor industry is firmer and global central banks are starting to operate more appropriate interest rate policies. The drops in industrial production and export in February were because Tet holidays fell in the early days of the month. Production and business are returning to normal operation. In the first two months, export totalled 58 billion USD, up 17.6% against the same period last year. Import was up 17.7% to reach 54.4 billion USD. Industrial production grew by 5.7%, very positive, while th e same period of last year saw a drop of 2.2%. Notably, the electronic components rose by 10.1%, compared to 0.7% a year ago. The Manufacturing Purchasing Managers' Index remains above the 50.0 no change mark with both output and new orders up for the second month straight. UOB forecast the Vietnamese economy would expand at 6% in 2024, meeting the target set at 6-6.5%. Inflation is projected at 3.8%. Regarding interest rate polices, UOB said that after a period of continuous rate cuts in 2023 with the economic recovery, the possibility of further interest rate cuts has decreased. It is likely that the State Bank of Vietnam will keep the refinancing rate at the current level of 4.5%./. Source: Vietnam News Agency

Buenos Aires: Vietnam is the most important market of Argentina in the Association of Southeast Asian Nations (ASEAN), said the Secretary of Agriculture, Livestock and Fisheries of Argentina, Fernando Vilella. Speaking to a Vietnam News Agency reporter on the sidelines of the 2024 Argentina Agricultural Exhibition Expoagro in Buenos Aires, the official said that Vietnam is also a key market in Argentina's trade development strategy. He emphasised that Vietnam is an important trade partner and a major customer of Argentina's agricultural industry as Vietnam is one of the leading soybeans/corn importers of Argentina. He also expressed his wish for stronger trade cooperation between Argentina and Vietnam, including the exchange of high-quality products and the import of Vietnamese goods. Meanwhile, agricultural engineer Mariano Winograd said he is participating in a project on cooperation between Vietnam and Argentina in aquaculture, adding that a group of Vietnamese agricultural experts will arrive in Argen tina next month to implement a cooperation project with the northern province of Misiones in growing dragon fruit, citrus, and guava. Eduardo Larocreus, a member of the bioeconomy advisory board under the Ministry of Economy of Argentina, expressed his desire to exchange experiences, knowledge and technology for peri-urban bioeconomy development with Vietnam, towards sustainable development and environmental protection. Argentina is one of Vietnam's leading partners in the Americas. In the 2007 - 2022 period, bilateral trade increased nearly 13 times, from 378 million USD to 4.88 billion USD, making Argentina the 5th largest trading partner of Vietnam in the Americas. Meanwhile, Vietnam is Argentina's 6th largest trading partner. Argentina is currently one of the leading suppliers of corn and animal feed to Vietnam. Agricultural products make up 92% of Vietnam's import value from Argentina. Vietnam's main exports to Argentina include phones and components; computers, electronic products and components; foo twear; machinery, equipment, spare parts; raw materials and accessories for garment-textiles and footwear./. Source: Vietnam News Agency

Binh Phuoc: The southern province of Binh Phuoc introduced its potential and incentives to invite European investors to invest in industry, trade, and high-tech agriculture in the province at a business forum held in Dong Xoai city on March 12. Giving a brief introduction of Binh Phuoc, Chairwoman of the provincial People's Committee Tran Tue Hien said her province, about 110km from Ho Chi Minh City, is a rubber and cashew production hub. It owns an abundant land reserve for developing industrial parks, trade, service and urban areas, and high-tech agricultural projects. The province is home to comprehensive and gradually modernised infrastructure, along with 13 industrial parks that cover 4,686 ha and has an occupancy rate of 69%. She went on to say that there are 413 foreign direct investment (FDI) projects worth 4.25 billion USD in Binh Phuoc at present. They include 17 projects with combined capital of 523 million USD from Europe, accounting for 12.3% of the total. With good infrastructure, good human resources, good policies, and good public services, Binh Phuoc will serve and satisfy investors, including members of the European Chamber of Commerce in Vietnam (EuroCham), at its best, Hien stated. The official pledged that her province will always stand side by side with businesses and are ready to create the best possible conditions for foreign investors, including European ones. Gabor Fluit, Chairman of EuroCham Vietnam and CEO of De Heus Asia, said Binh Phuoc holds a strategic location in the southern key economic region and acts as an important gateway connecting Vietnam with Cambodia and other regional countries. With an abundant land resource, it offers attractive investment chances in agriculture, aquaculture, food processing, and large-scaled production. Besides, favourable climate conditions also make it an ideal candidate for large renewable energy projects. Thanks to the EU - Vietnam Free Trade Agreement (EVFTA), under which nearly 99% of tariffs will be eliminated and reduced in the next dec ade, Binh Phuoc is well-positioned to benefit from the expanded access to the EU market with 500 million people, he said. Deputy Minister of Agriculture and Rural Development Phung Duc Tien said EuroCham businesses are not only technologically strong but also financially capable while the EU is a highly potential market for Vietnam's agricultural sector. Therefore, the presence of European businesses will not only help Binh Phuoc sustainably develop agriculture but also contribute to local socio-economic development./. Source: Vietnam News Agency