EdTech startup raises 6 million USD in Series A funding round
VUIHOC, an educational technology (EdTech) start-up, on July 31 announced a 6 million USD investment in a Series A funding round led by TNB Aura, reported Dau tu (Investment) Newspaper.
The round was also saw the participation of TKG Taekwang, IBK-STIC Pioneer Fund, Do Ventures, BAce Capital and Vulpes Ventures.
Founded in 2019, the online education platform provides interactive classes for over 1.1 million students from kindergarten to 12th grade. The platform offers a library of over 500,000 learning resources, including video, livestream and one-on-one tutoring that align with the national curriculum.
With the recent funding, VUIHOC is committed to continue developing more products and utilised AI technology to customise learning experiences that cater to each student’s needs, said CEO Do Ngoc Lam.
Charles Wong, Co-founder and CEO of TNB Aura, confirmed that VUIHOC possesses a strong technological infrastructure that empowers the company to execute a large-scale online teaching approach. This also enables the company to attract teachers from over the country, thus creating new opportunities for students to improve their learning experience and enhance their future prospects.
The Vietnam Innovation & Tech Investment Report 2023 showed that Vietnam’s EdTech startups have continued to draw significant investments. In the first half of this year, the total investment in this field has already surpassed last year’s value of 30 million USD.
Vietnamese Canadian ginseng processing firm benefits from CPTPP
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to which both Vietnam and Canada are members, has brought about benefits to businesses of the two nations.
Canadian Vita, a ginseng processing firm founded in 2017 by Vietnamese Canadian Tran Hieu, is an example of enterprises enjoying opportunities from the pact.
Hieu said that since the CPTPP came into effect five years ago, his company has thrived thanks to the implementation of tax exemption policy between the two countries, thereby enabling his firm to promote ginseng exports to Vietnam.
Canadian Vita is currently running a 20-hectare farm with an output of 150 tonnes of dried ginseng each year, earning approximately US$9 million, 60% of which is from the Vietnamese market.
Canadian Vita is not the only firm benefiting from the pact which comprises of 11 members from three continents of Asia, America, and Oceania.
Tran Thu Quynh, Vietnamese Trade Counsellor in Canada, stated that Canadian Vita’s success is evidence of the effective efforts made by Vietnamese and Canadian trade representative agencies on the basis of making full use of the CPTPP.
Currently, many Vietnamese companies are showing a keen interest in importing materials from Canada, including ginseng for medicine, cosmetic, and supplementary food production.
Canada makes up one of the four leading ginseng production hubs in the world. The CPTPP has helped Canadian ginseng to become more popular thanks to a wider market.
Hieu said that his company is confident in its development strategy, which is based on its strengths and strong market development.
Currently, Canadian Vita is managing more than 200 retail shops worldwide, including two based in Vietnam. It is destined to open one in each Vietnamese localities, whilst continuing to expand its network to other CPTPP members in a bid to optimise benefits from the deal.
Hanoi’s seven-month CPI rises almost 1%
The consumer price index (CPI) of Hanoi went up 0.99% in the first seven months of 2023 compared to the same period last year, the municipal Statistics Office reported.
During the period, eight of the 11 categories of goods and services saw price hikes, namely food and restaurant services up 3.8%; beverages and cigarettes 3.47%; culture, entertainment and tourism 3.24%; apparel, head wear and footwear 1.68%; family equipment and appliances 1.19%; housing, electricity, water, fire fuel and construction materials 0.53%; medicine and health services 0.35%; and other goods and services 3.46%.
Prices declined in three categories – education was down 4.66%, transport 4.2%, and postal and telecommunications services 0.4%.
Meanwhile, the July CPI inched up 0.44% from the previous month and 0.51% from December 2022, but fell 0.4% from the same period of 2022.
In July, Hanoi welcomed 388,000 tourist arrivals, rising 4% month on month and 52.6% year on year. That contributed to the seven-month figure of over 2.6 million, surging 2.3-fold from a year earlier, data shows.
Thua Thien-Hue – Seoul direct air route launched
The first direct flight between Vietnam’s central province of Thua Thien-Hue and Seoul city of the Republic of Korea (RoK) was launched on August 1.
A welcome ceremony for the flight, operated by budget carrier Vietjet Air from Incheon International Airport in Seoul to Phu Bai International Airport in Thua Thien-Hue with 151 passengers aboard, was held on the day.
The Korean passengers will spend four days and three nights in Hue imperial citadel, a UNESCO World Heritage Site, to learn about Vietnamese cultural heritage, explore local cuisine and visit landscapes there.
The first direct flight is expected to contribute to popularising Vietnamese tourism in the RoK market, and lead to the launch of more charter flights from the East Asian nation to Thua Thien-Hue, while maintaining the RoK’s position as a leading source of holidaymakers for the province, said Director of the provincial Department of Tourism Nguyen Van Phuc.
He added that the event will also help attract more international tourist to Thua Thien-Hue, thus spurring local tourism development.
On early August 1, a charter flight departed from the Phu Bai airport to the RoK, carrying 228 passengers, including a working delegation led by Permanent Vice Chairman of the provincial People’s Committee Nguyen Thanh Binh, who come to promote Thua Thien-Hue’s tourism in the country.
Saigon Co.op opens more food outlets
Saigon Co.op opened four Co.op Food stores in the southern largest economic hub of Ho Chi Minh City, Bien Hoa city in southern Dong Nai province and Thanh Hoa city in the north-central province of the same name last week.
They were among 13 stores the retailer opened in July, taking the total number of Co.op Food stores to 571.
The four new stores sell 4,000-6,000 items, including fresh and processed foods, cosmetics, household utensils, and fruits and vegetables, with clear origins and sourced from reputed suppliers with food safety certification such as VietGAP and GlobalGAP.
Nguyen Ngoc Thang, Saigon Co.op’s marketing director and Co.opmart’s operations director, said Saigon Co.op is speeding up the expansion of convenience store chains such as Co.op Food, Co.op. Smile, and Cheers to diversify its eco-system to facilitate its e-commerce development, and perfect the online to offline and offline to online structures to improve operational efficiency.
To mark their opening, the stores are offering discounts of 30 – 50% on many products and reward points to members.
They have also set up charitable “zero dong stalls” and gave gifts to disadvantaged local families.
Opportunities for Vietnam to boost rice exports: official
Rice export curbs by some countries like India, Russia and the United Arab Emirates (UAE) will offer opportunities to both Vietnamese exporters and farmers, heard a regular press conference held by the Ministry of Agriculture and Rural Development (MARD) in Hanoi on August 1.
Deputy Minister of Agriculture and Rural Development Phung Duc Tien said the ministry proposed the Prime Minister issue a directive on enhancing rice exports in the present context, which should identify tasks of ministries, agencies, localities and businesses.
After the issuance, ministries, agencies and localities will focus on removing obstacles to traders and farmers in order to optimise the opportunities to boost exports, he added.
The ministry reported that Vietnam shipped abroad 4.84 million tonnes of rice valued at 2.58 billion USD in the first seven months of this year, up 29.6% from the corresponding time last year.
The national rice output is expected to reach from 43.2-43.4 million tonnes this year, up 1.8-2% from 2022, the ministry said, noting that with the current production situation, the country is likely to meet domestic consumption and export from 7-7.5 million tonnes.
As of mid-July, localities had harvested over 24.1 million tonnes, up 0.4% year-on-year, with rice prices in the Mekong Delta – the country’s rice bowl – increasing in the month.
Nguyen Nhu Cuong, Director of the MARD’s Department of Crop Production, said given the hiking rice prices, the department has worked to raise the rice farming area for the autumn-winter crop in the Mekong Delta from 650,000 hectares to 700,000 hectares.
To reach the rice output target of 43 million tonnes, the department is coordinating with MARD’s relevant agencies and localities in setting out cultivation plans and rolling out technical solutions, he said.
Cuong also noted that El Nino could hit rice production, especially the winter-spring crop in the Mekong Delta, saying although its impacts in Vietnam might be less severe than in other countries, vigilance should be maintained.
Regarding India’s ban on de-oiled rice bran export, Deputy Director of the MARD’s Department of Livestock Production Pham Kim Dang, told the press that Vietnam’s demand for de-oiled rice bran is not big as the country needs about 4.7 million tonnes of de-oiled rice bran each year, of which only 0.7 million tonnes is imported.
Rice bran can be replaced with wheat bran, he said, stressing that the ban is not a concern for the domestic husbandry sector.
Under the MARD’s rice export proposal to the PM, the ministry said it will supervise production in localities, instruct plant quarantine agencies to facilitate rice production and keep a close watch on market developments in order to achieve the target.
The ministry also suggested what should be done by other relevant ministries and agencies like the Ministry of Industry and Trade, and the Ministry of Foreign Affairs, and the People’s Committees of centrally-run cities and provinces.
Agriculture business association needed for Vietnam, UAE: Official
An agriculture business association between Vietnam and the United Arab Emirates (UAE) needs to be established to facilitate bilateral cooperation in this field, Deputy Minister of Agriculture and Rural Development Phung Duc Tien told at a regular press conference held by the ministry on August 1.
According to Tien, implementing a Prime Minister dispatch on supporting businesses in exporting black pepper, cinnamon, anise, and cashew nuts to the UAE market, the Ministry of Agriculture and Rural Development (MARD) will hold discussions with relevant ministries and agencies to set up an association that links Vietnamese farm produce exporters with importers and distributors in the UAE to facilitate information exchange, prevent fraudulent activities, and address trade disputes.
Nguyen Nhu Cuong, Director of the Plant Cultivation Department under the MARD, also stated that the establishment of such an association is needed for the development of various industries, especially those in special markets.
The ministry will collaborate with industry associations to provide support in terms of information and legal matters, enabling them to leverage their strength, truly becoming bridges between producers, traders and exporters, he said.
Industry associations serve as an “extended arm” of the state management agencies, acting as a liaison between the authorities and the relevant industries, Cuong said.
It also plays a critical role in providing feedback on mechanisms and policies to the state management agencies, Cuong added.
Previously, the Vietnam Pepper Association (VPA) informed that five containers of black pepper, anise, and cashew nuts worth 517,000 USD exported to the UAE were suspected of being involved in fraudulent and deceptive trade practices.
Four containers out of the shipment were removed from the port without payment and the other, which was planned to arrive at an UAE port on July 26, is facing problems as the original documents have been stolen.
Three years into EVFTA: Vietnam’s agricultural exports grow impressively
Since the EU-Vietnam Free Trade Agreement (EVFTA) took effect in August 2020, most commitments in the agreement have been implemented and left positive impacts on business activities, especially trade, said Do Viet Ha of the Trade Office of the Vietnamese Embassy in Germany.
She cited statistics from the General Department of Vietnam Customs which showed Vietnam’s total export turnover to 27 member countries of the European Union (EU) in the period 2020-2022 recorded good growth.
Specifically, in 2022, total value of Vietnam’s export to the EU reached 46.83 billion USD, marking a year-on-year increase of 16.7%, and accounting for 12.6% of Vietnam’s total export turnover. Particularly, exports to Germany totalled 8.97 billion USD, up 23.1% compared to 2021.
Meanwhile, data from the German Federal Statistical Office (Destatis) showed Germany’s import turnover from Vietnam reached 15.4 billion USD, up 21% compared to 2021, Ha said, explained that the difference between the figures is due to statistical methods and different rules of origin applied.
She listed some Vietnamese export items that recorded impressive growth to Germany, which were cameras, camcorders, and components, up 265.9%; toys and sports equipment up 126%; footwear 53.8%; textiles 37%.
The export of some agricultural and aquatic products grew steadily, with aquatic products increasing by 26.1%; vegetables by 8%; coffee by 13.1%; tea by 14.6%.
The EU is Vietnam’s third-largest trading partner and an import market for agricultural products with strong growth after the EVFTA came into effect. Vietnam’s agricultural sector is considered one of the biggest beneficiaries of the EVFTA.
Vietnam’s key agricultural products exported to the EU are seafood, rice, and vegetables, which all enjoy preferential tax rates right after the EVFTA comes into effect, while rules on origin and protection of geographical indications give Vietnamese agricultural and aquatic products opportunities to enhance their brands and product value on the EU market.
The official noted that rice is not a key item in export to the EU, but its export turnover in this market has increased steadily in recent years. This shows that EVFTA has actively supported Vietnam’s exports. Businesses also make the most of the rice quotas to enjoy the 0% tax rate that the EU gives Vietnam.
Last year, rice exports to the EU market increased sharply, reaching 94,510 tonnes and exceeding the annual quota of 80,000 tonnes set in the EVFTA. Rice exports to some EU markets posted strong growth such as the Netherlands (44%), Poland (68%), Spain (89%), and Belgium (149%).
Regarding the benefits of the agreement for EU countries, Ha said that Vietnam has made a strong commitment to cutting taxes under the EVFTA, thereby offsetting the high transport costs from EU to Vietnam and increasing EU products’ competitiveness.
Products from Germany/EU enjoy tariff reduction under EVFTA including vehicles, electrical machinery and equipment, plastic products, iron and steel, mineral oil, meat and poultry, sausages, milk, and dairy products.
In addition, Vietnam’s commitments related to customs reform and trade facilitation, food hygiene and safety, animal and plant quarantine, technical measures for trade, and trade remedies make it easier for EU goods to access the Vietnamese market.
However, when entering the EU market, Vietnamese goods still face difficulties, particularly in meeting the rules of origin to enjoy preferential tariffs, and the risk of increasing trade remedies, Ha said.
To overcome these difficulties and maximise benefits from the EVFTA, the official said that businesses need to proactively study the guidelines of the agreement, the standards of goods exported to the EU market, as well as the EU market, people’s tastes and consumption need, with a view to suitably improving product quality and design.
According to Ha, the government needs to develop an overall strategy to provide orientations and roadmaps for ministries, sectors, and localities to fully and promptly implement the commitments of the EVFTA; develop mechanisms to facilitate the development of domestic enterprises, prepare solutions to support industries under great competitive pressure when implementing the agreement.
More policies are also needed to attract foreign investment from the EU to Vietnam, she said.
Vietnam wishes to strengthen ties with International Trade Centre: ambassador
A Vietnamese diplomat has highlighted the country’s wish to enhance cooperation with the Geneva-based International Trade Centre (ITC) while addressing the recent 57th session of the ITC’s Joint Advisory Group.
In her remarks, Ambassador Le Thi Tuyet Mai, Permanent Representative of Vietnam to the United Nations, the World Trade Organisation (WTO) and other international organisations in Geneva, highly valued the ITC’s assistance for micro, small and medium-sized enterprises (MSMEs) over the past years, especially for their digital transformation, green transition and access to foreign markets, along with its trade facilitation.
Vietnam hopes to strengthen ties with the ITC in the time ahead on the basis of its trade and development achievements obtained during the transformation from an underdeveloped country into a lower-middle-income one, she went on.
The country is working hard to implement the climate change response strategy and shift to a circular economy, she said, noting that green growth is not only an inevitable choice but also an opportunity for Vietnam to keep up with the global development trend and reach the target of net zero emissions by 2050.
Therefore, Vietnam and some other countries’ participation in the new ITC project of “Climate competitiveness: Building opportunities in the green economy for emerging and developing countries”, funded by the European Union for 2023 – 2026, will create favourable conditions for them to capitalise on assistance during the adjustment of policies and trade practices in adaptation to climate change, and discuss trade and environmental issues at WTO to boost trade and sustainable development.
As an active ITC member since 2007, Vietnam sincerely appreciates contributions by the ITC and other sponsors to the technical support and capacity building projects for its MSMEs, Mai noted, applauding the development of the Vietnam – ITC partnership as seen in some pilot projects of the centre.
The hybrid 57th session of the ITC’s Joint Advisory Group reviewed the centre’s performance in 2022 and gave recommendations for its activities in the time ahead.
ITC Executive Director Pamela Coke-Hamilton said the centre disbursed more than 150 million USD for projects in 130 countries last year, the highest-ever sum. ITC-funded projects helped over 27,000 small businesses, including 10,000 women-led ones, improve their competitiveness.
Ambassador Le Thi Tuyet Mai (third from right) and ITC Executive Director Pamela Coke-Hamilton at a meeting on July 14 (Photo: VNA)
At a meeting with Ambassador Mai prior to the session, Coke-Hamilton described Vietnam as an excellent partner of the ITC during the implementation of this centre’s projects in Southeast Asia.
The country is accessing some ITC-financed programmes and projects to improve export competitiveness and trade promotion capacity of MSMEs. In Vietnam, the centre is running nine projects, the biggest among ASEAN members.
Binh Duong enjoys seven-month trade surplus of 5 billion USD
The southern province of Binh Duong maintained a trade surplus in the first seven months of this year, surpassing 5 billion USD, according to the municipal People’s Committee.
In the period, the locality’s export turnover reached 17.8 billion USD, down 16.5% year-on-year, while its imports were valued at 12.7 billion USD, down 13.8% year-on-year.
The index of industrial production (IIP) rose by 3% against the same period last year, while the revenue from trade and services reached 174.8 trillion VND (7.36 billion USD), up 12.4% year-on-year.
Chief of the Office of the provincial People’s Committee Vo Anh Tuan said that in the January-July period, agricultural production was stabilised, goods supply met locals’ needs, the consumer price index was put under control.
Total social development investment increased by 10.3% year-on-year. Disbursement rate of public investment was similar to that of the same period last year, but disbursed capital was 2.5 times higher.
In order to achieve the set economic development targets, Binh Duong province has directed departments, agencies and sectors to continue working directly with each association, enterprise, and project to promptly remove difficulties and shortcomings; seek more measures to stimulate consumption demand; focus on regulating and ensuring stable power sources for production and daily life; and speed up the expansion of industrial parks and invest in new industrial clusters as planned.
Enterprises should explore niche markets amid export decline: ministry
Enterprises should look for niche markets to better cope with declines in exports in major markets, said the Ministry of Industry and Trade.
At a meeting with trade counselors on July 31, the ministry said Vietnam’s exports to most major markets saw declines so far this year due to falling consumption around the world.
Key industries such as garments and textiles, footwear, wood, machinery, phones and components saw double-digit decreases in exports to major markets such as the US and the EU.
Deputy Minister of Industry and Trade Do Thang Hai said that enhancing trade promotion played an important role in creating growth through market expansion and exports.
Truong Van Cam, Deputy President of the Vietnam Textile and Apparel Association, said that 85% of production capacity from textile and garment firms was for export, and needed accurate market information to develop their strategies.
Phan Thi Thanh Xuan, General Secretary of the Vietnam Leather Footwear and Handbag Association, said that new regulations in markets like the EU and the US are causing domestic producers and exporters headaches. They are in dire need of support to get the most up-to-date information regarding trade policies and regulations to deal with difficulties in export markets.
The wood industry is expected to face a slump in exports this year after 15 years of rapid expansion. Ngo Sy Hoang, Deputy President of the Vietnam Timber and Forest Products Association, said that in order to regain export growth, the wood industry needs support to expand into new markets and convey the message that Vietnam strongly implements its commitments to legal timber.
According to Tran Ngoc Quan at the Vietnam Trade Office in Belgium, the EU is preparing to issue new regulations related to the environment, sustainable development, carbon emissions, the right to repair and recycle, human rights, and anti-deforestation acts.
These regulations pose a concern as it would be difficult for Vietnamese enterprises to export under their own brands because the EU requires a chain for purchasing and processing products for recycling.
The EU–Vietnam Free Trade Agreement (EVFTA) provided opportunities to increase exports to the EU, he said. On the other hand, the EU is shifting strongly to a circular economy, Quan said, urging domestic enterprises to take action for conversion because when the regulations come into force, they will strongly affect exports.
Do Manh Quyen, head of the Houston Branch of the Vietnam Trade Office in the US, said that major export products of Vietnam saw significant drops in the US recently. Enterprises need to redefine their production and business strategies and increase the understanding of regulations to promote exports to the US, together with improving product quality and renovating production technologies.
Quyen also urged businesses to find niche markets to cope with the disruptions caused by falling demand. Trade promotion should also be enhanced to find opportunities to settle inventories.
Hai urged Vietnamese trade counselors to strengthen market and policy studies to provide consultancy regarding market development strategies and trade exchanges.
Focus should be placed on researching and analysing policies and markets to promptly propose solutions to remove obstacles of technical and non-tariff barriers to exports, he said.
He urged cooperation among relevant agencies to be enhanced to grow exports to major markets and create conditions for enterprises to participate in global supply chains.
Enterprises must strictly comply with the requirements of key export markets in terms of origin traceability and production procedures to be able to expand exports, Hai said.
Singaporean entrepreneurs highly value cooperation potential with Vietnam
Economic and investment cooperation between Vietnam and Singapore continues to be a bright spot in bilateral relations, especially in potential areas such as sustainable development, renewable energy, green economy, and digital economy, according to the Singaporean business community.
Investment from Singapore into Vietnam has recorded remarkable growth, hitting 73.453 billion USD with 3,273 valid projects, surging by 67% in five years. Notably, since 2020, Singapore has always been the largest foreign investor in Vietnam.
Vietnam is seen as one of the top priority markets for Singaporean investors because of its potential for strong growth in the fields of digitalisation and renewable energy.
According to Cindy Lim, CEO of Kepple Infrastructure Holdings Pte Ltd, Vietnam and Singapore have strong connections, including data and air connections.
She also underlined the necessity for the two sides to expand energy connectivity, such as unlocking the potential of electricity export or connecting the regional power grid, saying that this will help accelerate the renewable energy development progress in ASEAN.
According to Lim, the Vietnamese Government has announced National Power Development Plan VIII which guides the development of power plants and power grids between 2021 and 2030, with a vision until 2050. This is the right time for investors to participate in the energy transformation in the country.
Lim emphasised that Kepple Infrastructure Holdings is ready to double its investment in renewable energy development in Vietnam in the coming time.
Meanwhile, Ronald Tay, CEO of CapitaLand Development in Vietnam, said that Vietnam is an important market for many Singaporean companies as it is one of the markets of long-term potential.
He expressed his hope that Singaporean businesses will continue to receive strong support from the Vietnamese Government and relevant agencies.
What foreign investors are looking for is a level playing field, so Vietnam needs to maintain an open and transparent policy, thus promoting the long-term development of its economy, he stressed.
EVFTA opens door wider for Vietnamese goods to EU
The implementation of the EU-Vietnam Free Trade Agreement (EVFTA), which went into force on August 1, 2020, plays a key role in bringing Vietnamese agro-fishery products into the European market, Trade Counselor in Belgium and the EU Tran Ngoc Quan has told the Vietnam News Agency.
The diplomat noted that for agricultural products, the tariffs of many items were reduced to 0% immediately when the trade pact took effect or will gradually decrease to the point over a period of 3-5 years, adding this is a significant advantage for Vietnam’s farm produce in entering the EU.
About rice, which Vietnam exported 97,000 tonnes to the bloc last year, up 65% from 2021, Quan said the EU imports between 1.7 and 2 million tonnes of the grain on an average annually. The competition in the market is fierce because of the quota and tariff issues.
For Vietnam, it is among the commodities enjoying an EVFTA-induced 0% tariff rate, he stressed.
Quan said the sides’ two-way trade has also grown, signaling a positive development. Exports from the EU to Vietnam in the years 2021-2022 increased by between 20% and 25%. European goods are of high quality and sustainable, thereby helping enhance the value standards of Vietnamese products.
On the EU’s stricter requirements of commodity quality, sustainability, and safety, the diplomat recommended that Vietnam shift from producing a large quantity for reasonable cost to focusing on sustainable products with value added to better meet EU standards.
According to Quan, his office has continuously updated and disseminated information on the bloc’s regulations to businesses, adding that without immediate preparation, Vietnam could easily miss the opportunities, as it’s a competition of not only market access but also quality serving strict standards.
Quang Ninh striving to attract 1 billion USD in FDI
The goal of attracting 1 billion USD in foreign direct investment (FDI) to industrial parks, economic zones in 2023 of the coastal province of Quang Ninh is quite positive, provincial leaders have said.
For the year, the province has chosen the theme of “improving investment attraction efficiency and people’s life quality” with priorities to luring investors from countries and territories such as Japan, the Republic of Korea, China, and the EU, among others, to ensure socio-economic development orientation, particularly in the fields of the processing, manufacturing and hi-tech industries.
Head of the Quang Ninh provincial economic zone management board Hoang Dinh Kien said as the end of June 2023, the province had attracted more than 832 million USD, reaching 69.3% of the target of the provincial People’s Committee.
Kien noted that in the first half of this year, the province granted investment registration certificates for 17 FDI projects, 2.5 times higher than the same period in 2022, mainly in the areas of processing and manufacturing industries. At the same time, the province is continuing to support investors in administrative procedures.
Most of the FDI projects belong to the “new-generation” category, focusing on environmentally friendly processing and manufacturing industries that aim to reduce resource consumption with spillover socio-economic effects that prove Quang Ninh is on the right track in promoting the green development strategy, he cited.
In addition to continuing to draw FDI capital from traditional markets, the province has diversified investor partnership. So far, investors from 20 countries and territories have invested in the province.
In February, Quang Ninh granted investment certificate to Swedish investor Autoliv Vietnam to build a 3.773 trillion VND (154 million USD) automobile safety component factory in Song Khoai industrial park.
Recently, the province granted investment certificates to two factories by Foxconn Singapore PTE LTD in Song Khoai Industrial Park with a total investment of 250 million USD. Notably, the two projects were approved within 12 working hours.
The province has also developed solutions and investment promotion strategies for big and prestigious economic groups.
Over the recent years, Quang 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.
In 2022, the province topped the country’s provincial competitiveness rankings (PCI) for the sixth consecutive year, ranking first for the second time (2020 and 2022) in four indicators of Provincial Competiveness Index (PCI), Provincial Governance and Public Administration Performance Index (PAPI), Public Administration Reform Index (PAR INDEX) and Satisfaction index of public administrative services (SIPAS), and for the 10 consecutive year in the group of five provinces and cities with the best quality of economic governance in the country.
Agro-forestry-aquatic product exports post trade surplus of nearly 6 billion USD
Vietnam’s agro-forestry-aquatic product exports raked in 29.13 billion USD in the first seven months of 2023, while its imports reached 23.25 billion USD, resulting in a trade surplus of 5.88 billion USD, up 3.4% year-on-year, the Ministry of Agriculture and Rural Development (MARD) reported.
The export and import values in the seven-month period went down 9.1% and 11.8%, respectively, from the same period last year, the ministry said.
In July alone, the country earned 4.62 billion USD from agro-forestry-aquatic product exports, a year-on-year rise of 5.3%.
Between January and July, the export revenue of aquatic products declined to 4.95 billion USD, a drop of 25.4%, and that of forestry products dropped 25.5% to 7.79 billion USD.
Notably, agricultural product exports brought home nearly 14.99 billion USD, up 13.2%, mainly thanks to vegetables and fruits, rice, cashew nuts, coffee and animal husbandry products, according to the ministry.
However, some major agricultural products saw decreases in exports like rubber, tea, pepper, cassava and cassava products.
In the seven months, the agro-forestry-aquatic product export values to Asia and Africa increased 2.3% and 14.1% to reach 14.06 billion USD and 573 million USD, respectively. Meanwhile, the exports to America, Europe and Oceania fell 29.2%, 13.3% and 25.6%.
China, the US, and Japan remained three largest importers of Vietnam’s agro-forestry-aquatic products, making up 21.9%, 20.4% and 7.6% of the total figure.
The ministry said it will continue pushing for domestic consumption and export, and focus on handling market-related issues to facilitate the export, especially to China, the US, the EU, and the Eurasian Economic Union.
The sector will also optimise free trade agreements to boost the shipment of key items, support businesses in seeking new orders, and coordinate in protecting brand names and geographical indications for potential products, it added.
Reducing costs – Vietnamese businesses’ top priority: UOB study
Reducing costs is a top priority for Vietnamese businesses as high inflation has affected 94 per cent of businesses surveyed in 2022, according to a new study by the Singapore-based United Overseas Bank (UOB).
Between December 2022 to January 2023, the bank’s Business Outlook Study 2023 (SME & Large Enterprises) surveyed more than 4,000 businesses in Asia, including 505 in Việt Nam, mostly located in HCM City and Hà Nội.
The survey found that while remaining positive on the 2023 outlook, the top priorities for surveyed Vietnamese companies are reducing costs, tapping new customers, diversifying supply chains, re-skilling/up-skilling existing talent and developing sources of revenue.
It showed that 57 per cent of the surveyed businesses have seen an increase in the cost of materials and 56 per cent of the businesses have seen an increase in the cost of operations. To mitigate inflation, over one in every two businesses in Việt Nam focus on improving productivity and 45 per cent of businesses surveyed said that they apply cost cutting on company activities.
The study found that a majority of businesses in Việt Nam have seen an impact on their supply chains. More than half of the respondents said that their supply chain has been impacted by geo-political issues and find rising supply costs the main challenge in managing their supply chain.
Top support measures for supply chain management include tax incentives or rebates, easier access to funding or grants, and opportunities to collaborate with industry, government-linked or large businesses, the study suggested.
Particularly, digitalisation can play a key role in helping businesses improve productivity to mitigate the impact of inflation on their business.
The study finds that nearly nine in every ten businesses in Việt Nam have adopted digitalisation in at least one department. As many as 86 per cent of businesses plan to spend more on digitalisation in 2023. Digitalisation creates a better impact for companies by improving productivity to mitigate the impact of inflation on their business, helping them become more customer-centric by enabling their customer outreach efforts and improving customer experience.
According to UOB, about nine in every ten businesses in Việt Nam are looking to expand overseas in the next three years. The interest in overseas expansion is leading to higher interest in cross-border digital trade platforms. Over six in ten businesses are ‘Very interested’ in using such platforms.
More than half of the surveyed businesses said that they are motivated to expand overseas to grow their revenue, improve profitability and build a reputation as an international business.
As many as 72 per cent of businesses in Việt Nam eyes Southeast Asia for their future expansion plans and Thailand, Singapore and Malaysia are preferred.
Vincom Retail posts positive results in Q2
Vincom Retail JSC has recently reported a net revenue of over VNĐ2.17 trillion (US$91.7 million) in the second quarter this year, a 17.3 per cent increase over the same period last year.
Revenue from commercial business was more than VNĐ1.9 trillion, up 7 per cent year-on-year. The company’s cost of goods sold climbed by 24.7 per cent to more than VNĐ983.4 billion.
As a result, its gross profit increased by 12 per cent to nearly VNĐ1.2 trillion.
During the period, financial income was 2.7 times higher than the same period last year, totalling over VNĐ278 billion. The sources of the income were from deposits interest, and loans.
Meanwhile, expenses also fell by 9 per cent to VNĐ80 billion, which mostly was interest expense. Other expenses, including sales and general and administrative expenses, were also reduced over last year.
After subtracting expenses, Vincom Retail’s net profit was VNĐ1 trillion, an increase of 29 per cent on-year.
Singaporean entrepreneurs appreciative of co-operation potential with Vietnam
Economic and investment co-operation between the nation and Singapore continues to be a bright spot in bilateral relations, especially with regard to potential areas such as sustainable development, renewable energy, green economy, and the digital economy, according to the Singaporean business community.
Investment from Singapore into the country has recorded remarkable growth, hitting US$73.453 billion with 3,273 valid projects, surging by 67% over five years. Most notably, since 2020 Singapore has always been the largest foreign investor in the Vietnamese market.
The nation is therefore seen as one of the top priority markets for Singaporean investors because of its potential for strong growth in the fields of digitalization and renewable energy.
According to Cindy Lim, CEO of Kepple Infrastructure Holdings Pte Ltd, both sides boast strong connections, including data and air connections.
She also underlined the necessity for the two sides to continue expanding energy connectivity, such as unlocking the potential that exists for electricity export or connecting the regional power grid, stating that this will help to accelerate the renewable energy development progress in ASEAN.
According to Lim, the Vietnamese Government has announced National Power Development Plan VIII which seeks to guides the development of power plants and power grids between 2021 and 2030, with a vision towards 2050. This is the right time for investors as they become more involved in the energy transformation in the country.
Lim emphazised that Kepple Infrastructure Holdings is ready to double its investment in renewable energy development in Vietnam moving forward.
Meanwhile, Ronald Tay, CEO of CapitaLand Development in Vietnam, highlighted the nation as an important market for many Singaporean companies as it boasts long-term potential.
He therefore expressed his hope that Singaporean businesses will continue to receive strong support from the Vietnamese Government and relevant agencies.
What foreign investors are looking for is a level playing field, meaning Vietnam needs to maintain an open and transparent policy, thus boosting the long-term development of its economy, he stressed.
South Korea-backed AMPT Vietnam to invest $5 billion in Vietnam
AMPT Vietnam plans to invest $5 billion in Vietnam, particularly in Danang, for essential infrastructure and healthcare projects, with the company set to establish an office in the city soon.
In a recent engagement in late July, Le Trung Chinh, Chairman of Danang People’s Committee, presided over a meeting with the delegation from AMPT Vietnam JSC, led by Lee Yun Cheol, its CEO. The purpose of the visit was to investigate potential investment opportunities and foster collaboration in Danang.
Lee revealed that AMPT Vietnam International JSC was established in 2022 as a subsidiary of South Korean-based AMPT International JSC. Its core objective is to elevate living standards, enhance community health, and invest in infrastructure and business ventures in Vietnam. The company has already forged joint ventures with notable entities such as Diamond Corporation, Qlila, and The World Group.
Empowered by investment funds, the company intends to allocate approximately $5 billion in Vietnam, primarily focusing on projects with strong social welfare implications. Notably, the company is keen on establishing multidisciplinary international hospitals offering Proton therapy coupled with eco-resort facilities.
Furthermore, the company actively seeks new investment prospects and endeavours to collaborate with local companies and organisations in Vietnam for the realisation of transportation infrastructure, seaports, resorts, and agricultural processing plants.
According to Lee, AMPT Vietnam’s investment strategy revolves around the construction of state-of-the-art international hospitals that prioritise advanced treatment methods. This, in turn, is anticipated to fuel the development of residential enclaves and resorts, effectively attracting affluent patients seeking medical treatment and leisure experiences.
During their comprehensive assessment of investment avenues in Vietnam, the company identified Danang as a city of immense potential and considerable allure to foreign enterprises, particularly in the thriving tourism and resort sectors.
To capitalise on these opportunities, the company is actively considering establishing an office in Danang, underscoring its commitment to thoroughly exploring viable projects with the goal of achieving efficient and successful investments in the city.
Chinh highlighted the sectors of healthcare, seaports, and new urban areas as areas of particular interest to AMPT Vietnam, aligning with the city’s proactive efforts in inviting investments.
Presently, Danang is in the process of presenting its investment proposal for the shared infrastructure of the Lien Chieu Port project to the government. Upon obtaining the necessary approvals, the city will proceed with the requisite procedures for investment solicitation, adhering to legal regulations.
Concerning healthcare projects like international hospitals and nursing homes, the city is presently conducting auctions. AMPT Vietnam may express its interest by duly submitting auction documents as per stipulated guidelines. Additionally, ongoing planning and evaluation for new urban areas are slated for completion by the conclusion of 2023, paving the way for investor selection in accordance with legal provisions.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
