Malaysia News Gazette

Hanoi: Vietnam has solidified its position as the most attractive investment destination for Taiwanese companies in Southeast Asia and globally, Deputy Minister of Planning and Investment Tran Duy Dong told the Vietnam-Taiwan business forum in Hanoi on April 8.

Investment from Taiwan (China) in Vietnam surged in 2023, reaching 2.2 billion USD, a fourfold increase from the previous year. This impressive growth placed Taiwan as the fourth largest investor in Vietnam, out of 105 countries and territories, with nearly 3,200 projects valued at over 39.5 billion USD. Additionally, Taiwan has become Vietnam’s fifth largest trading partner.

Dong commended Taiwanese enterprises for their contributions to Vietnam’s economic development. He highlighted their role in fostering technology transfer, increasing the use of locally-produced materials, and upskilling the Vietnamese workforce. These efforts, he noted, contribute significantly to the establishment of robust global supply chains.

Pham Tan Cong, Chairman of the
Vietnam Chamber of Commerce and Industry (VCCI) and Chairman of the Taiwan Affairs Committee, pointed out the extensive presence of major Taiwanese electronics conglomerates like Foxconn, Wistron, Qisda, Pegatron, Compal and Quanta in Vietnam, saying that this is a promising signal for cooperation between the two sides.

On the occasion, the Vietnam-Taiwan (China) 2024 international investment and trade promotion exhibition kicked off on April 8 and runs until April 9. The event, co-organised by DVL IPT Investment and Trade Promotion JSC and the World Taiwanese Chambers of Commerce (WTCC), provides a platform for networking and collaboration among businesses across various sectors.

Nguyen Hong Chung, General Director of the DVL IPT Investment and Trade Promotion JSC, said the event takes place during a pivotal year – Vietnam marks its 35th anniversary of attracting foreign investment. Over the past three and a half decades, Taiwan (China) has emerged as a key partner, ranking fourth in foreign direct investm
ent (FDI) with nearly 40 billion USD, and fifth in overall trade, with two-way trade of almost 25 billion USD./.

Source: Vietnam News Agency

Beijing: Chairman of the National Assembly (NA) Vuong Dinh Hue hosted separate receptions for several leaders of Chinese corporations operating in transport and energy on April 8 as part of his official trip to China.

Receiving Chairman of the Board of Directors of China Railway Construction Corporation (CRCC) Dai Hegen, and other leaders of the corporation, NA Chairman Hue recalled the visit to Vietnam in 2023 by General Secretary of the Communist Party of China Central Committee and President of China Xi Jinping, during which both sides issued a joint statement on deepening and elevating the Vietnam – China Comprehensive Strategic Cooperative Partnership, and building the Vietnam – China community with a share future.

He took the occasion to thank the CRCC for supporting Vietnam during the struggle for national independence, and spoke highly of the corporation’s capacity and operation scale across the globe.

Hue said the the joint statement in 2023 has opened up a chapter of sound collaboration for both
nations. The two sides agreed to promote cross-border standard-gaud railway connection via Lao Cai – Hanoi – Hai Phong, Dong Dang – Hanoi, and Mong Cai – Ha Long – Hai Phong routes.

Seeing the infrastructure important to bolstering the bilateral economic and trade cooperation, he suggested the CRCC study and make recommendations to engage in projects in the field.

Dai, for his part, highlighted Vietnam is currently one of the most significant markets in Asia of the CRCC, adding the group, the 42nd in Fortune Global 500 list and the 12th among 500 leading firms in China, stands ready to make contributions to Vietnam’s infrastructure development, including survey and design of the railway system.

Welcoming Chairman of the China Communications Construction Company (CCCC) Wang Tongzhou, Hue hailed the CCCC’s operation amidst the global headwinds.

Vietnam is branching out its infrastructure system on the principle of promoting public-private partnership, he said, highlighting Vietnam is striving to complete th
e North-South expressway, Lao Cai – Hanoi – Hai Phong railway and Hanoi – HCM City railway.

He expressed his hope that the corporation will make recommendations and give technical support to Vietnam, stressing Vietnam encourages prestigious enterprises from China to join bidding for road and railway development projects in the country.

‘The Vietnamese National Assembly is completing legal system, mechanisms and policies to create favourable conditions for all economic sectors to engage in transport infrastructure development in the country, comprising Chinese firms’, he underscored.

The CCCC is a comprehensive service provider of ultra-large infrastructure, mainly engaging in the investment, construction and operation of transport infrastructure, equipment manufacturing, real estate and urban development. Earning a revenue of 130.6 billion USD, it was ranked 60th in the Fortune Global 500 list in 2022.

Since 1996, the company has carried out more than 20 projects in Vietnam in the fields of infrastructure
development and energy such as a part of the Hanoi – Hai Phong highway, Cai Mep – Thi Vai port, and a wind power in Soc Trang province.

The same morning, Hue received Vice Chairman of Energy China and Chairman of China International Energy Group Lu Zexiang, and leaders of member companies.

Commending the group’s effective and sustainable investment and business across the globe as well as in Vietnam, Hue welcomed its recommendations to support Vietnam in building policies and master plans on power network.

Under its national power development plan for 2021-2030 with a vision to 2050, Vietnam eyes strong energy transition from fossil fuels to renewable energy to realise its net-zero target by 2050, he said, asking the group’s leader to continue coordination with Vietnamese ministries, sectors and localities for detailed instructions.

He went on to say that the Vietnamese NA is taking bold steps in building and amending relevant policies to meet the country’s development requirements, and recognised the Ene
rgy China’s suggestions on enhancing cooperation in renewable energy and liquefied natural gas (LNG) development, and solutions to green development and carbon emission reduction.

Hue asked the Energy China to give specific recommendations to cooperate with Vietnamese firms, stressing the Vietnamese NA always accompanies the Government and competent agencies to facilitate investments of foreign firms, ensuring they do effective, successful and sustainable business in Vietnam.

In the afternoon, Hue and his entourage visited the R and D centre of Huawei, a leading global provider of ICT infrastructure and smart devices, during which he expressed his impression on the group’s development with standout inventions and patents as well as state-of-the-art technologies.

Having operated in Vietnam for more than 25 years, Huawei has made significant contributions to promoting digital transformation in the country, and begun to join in its human resources training in the hi-tech sector.

Vietnam has developed its IT
enterprises while luring large foreign corporations like Huawei with a view to building a digital economy, a digital society and digital citizens, underlining the country prioritises projects with advanced, new and environmentally-friendly technologies.

The legal environment in Vietnam is becoming more complete to create the best conditions for both domestic and foreign firms, he stressed.

For his part, Huawei Chairman Liang Hua held that Vietnam has various programmes for digital transformation, and Huawei is willing to work closely with Vietnam in the areas of 5G network building and IT human resources development./.

Source: Vietnam News Agency

Hanoi: After declining in the first two months of this year, credit of the banking industry in March increased by 0.26% compared to the end of 2023 to about 13.6 quadrillion VND, the State Bank of Vietnam (SBV) reported.

According to the SBV, the credit of the banking system in the first two months this year decreased by 0.72% compared to the end of last year. Low credit growth in the first months of a year is common. The average credit growth in the first two months in the 2013-23 period was 0.56%. Credit declines in the first two months were also seen, in 2014, 2018 and 2024.

However, experts say the credit decrease in the first two months of 2024 was more serious because this year’s conditions are different from the previous years, as the SBV this year assigned the entire credit growth quota of 15% for commercial banks right in the first month instead of only allocating a part of the quota at the beginning of the year as previously.

Therefore, the SBV in February had to send an official dispatch to cred
it institutions stating that despite the application of supporting policies to boost credit from the beginning of the year, credit growth this year was still quite low compared to recent years.

To boost credit growth, the SBV has requested credit institutions to firmly implement effective credit growth solutions since early February. Accordingly, credit institutions must review to simplify lending procedures with an aim to increase people’s ability to access capital.

Besides, they must focus on strengthening digital transformation in the credit process to increase access to capital and more widely popularise banking credit activities.

In addition, the SBV said it was necessary to improve the operational efficiency of funds such as the credit insurance fund for small- and medium-sized enterprises (SMEs), and the development fund for SMEs, to enhance SMEs’ ability to access credit.

The SBV also noted credit must focus on production, business and the Government’s priority sectors, as those are the country’s
economic growth drivers. Banks also need to strictly control credit for potentially risky sectors to ensure safe and effective operations.

On the borrower side, the SBV has also encouraged enterprises to actively implement solutions to restructure operations; have more feasible investment, production and business projects; prove the feasibility of the projects; and strengthen transparency and financial capacity so that credit institutions can appraise and provide loan services to borrowers conveniently in the coming time./.

Source: Vietnam News Agency

Hanoi: The Land Law (revised), which expands land use rights for overseas Vietnamese (OV) and Vietnamese citizens residing abroad, meets the aspirations of OVs and contributes to mobilising investment resources to Vietnam at the same time, said Nguyen Duc Hieu, standing member of the National Assembly (NA) Economic Committee.

Hieu cited statistics from the State Committee for OV Affairs showing that Vietnam currently has about 6 million people living, residing and studying in 130 countries and territories, mostly developed, with about 600,000 people holding university degrees or higher.

Article 4 of the law includes the group of the Vietnamese origin residing abroad but without the Vietnamese nationality (also known as overseas Vietnamese) as land users, providing them with full rights to land use and housing like domestic citizens and Vietnamese residing abroad who have the Vietnamese nationality, the official noted.

Article 28 also clarifies that people of the Vietnamese origin residing abroad who are pe
rmitted to enter Vietnam are allowed to buy and rent houses associated with residential land use rights, and receive residential land use rights in housing development projects, inherit the right to use residential land and other types of land in the same plot of land with houses, he said, adding that these regulations are not included in the current version.

Deputy Managing Director of Savills Vietnam Troy Griffiths commented that this change will bring more investment opportunities to real estate buyers being OVs, while creating great potential for the market thanks to direct investment capital from OVs.

He held that OVs are potential real estate investors, as many of them wish to return to the homeland or own land use rights at home.

According to the State Committee for OV Affairs, the amount of remittances to Vietnam from 1993 (the first year of remittance statistics) to the end of 2022 topped 190 billion USD, nearly equal to the amount of FDI disbursed in the same period.

Statistics from the Central
Institute for Economic Management showed that in 2016, about 15-20% of that amount was invested directly in real estate, which was equal to about 10,000 apartments per year.

Doan Van Binh, Vice President of the Vietnam National Real Estate Association and Chairman of CEO Group, said that Vietnam should act to improve the investment environment to be ready to welcome foreigners seeking opportunities in the country.

He stressed the need for Vietnam to apply stronger measures to attract foreign investment flows to the domestic real estate market./.

Source: Vietnam News Agency

Bac Giang: The northern province of Bac Giang continued to lead the nation in economic growth in the first quarter, with an estimated expansion of 14.18%, reported Vice Chairman of the provincial People’s Committee Mai Son.

All production sectors showed robust growth, including agro-forestry-fisheries up 2.14%, industry-construction 18%, services 6.32% and product taxes 4.48%.

The province now boasts 10 industrial parks with a total planned area of over 2,250ha. As of March 15, it had drawn nearly 624.26 million USD in registered investment capital. There were 310 newly-established enterprises, marking an 18% increase, with a registered capital of nearly 2.6 trillion VND (over 108 million USD).

In March, its industrial production index went up 20.6% monthly and 16.7% annually, pushing up the three-month figure to 23.89%. The sustained production expansion and stable operation of several large enterprises, particularly since the latter part of the third quarter of 2023, were credited for this achievement.

Looking toward the second quarter, Son outlined Bac Giang’s plans to proactively attract foreign investment, particularly high-quality sources with advanced technologies. This will involve preparing the necessary infrastructure, developing a skilled workforce, and ensuring land availability.

The province also aims to enhance the effectiveness of trade promotion activities, particularly for its key agricultural products such as lychee. To promote domestic brands, Bac Giang will host a “National Brand Week” in conjunction with the “Vietnamese Brand Day” on April 20 while upgrading agricultural production processes to meet VietGAP, GlobalGAP, and high organic standards, he added./.

Source: Vietnam News Agency

HCM City: Vietjet Aviation Joint Stock Company (HOSE: VJC) has released its audited financial statements for 2023, showing robust growth over the year.

The audited separate air transport revenue and consolidated revenue were reported at 53.7 trillion VND (approx. 2.16 billion USD) and 58.3 trillion VND (approx. 2.35 billion USD) respectively, increasing by 62% and 45% year-on-year in the order given. Notably, the company recorded a turnaround of pre-tax air transport profit and consolidated profit at 471 billion VND (approx. 18.98 million USD) and 606 billion VND (approx. 24.42 million USD) respectively.

Ancillary and cargo revenue amounted to nearly 21 trillion VND (approx. 846.6 million USD), higher than the compiled financial statements’ and increasing by more than 60% YoY. It accounted for 39% of the total air transport revenue.

As of December 31, 2023, Vietjet’s total assets totaled more than 86.9 trillion VND (approx. 3.5 billion USD). The company’s debt-to-equity ratio was 2, well below the typical
global range of between 3 and 5. Vietjet’s liquidity ratio stood at 1.3 which was within good range of the aviation industry. The cash and cash equivalents balance as of December 31, 2023 was reported at 5.051 trillion VND (approx. 203.62 million USD), ensuring the airline’s financial capacity.

The airline was also among those with best credit ratings according to guidelines by the Ministry of Finance. It has received the highest credit rating (VnBBB-) among Vietnamese corporations.

In 2023, Vietjet paid approximately 5.2 trillion VND (approx. 209.63 million USD) of direct and indirect taxes and fees.

Leading international expansion

Striving to maintain and grow domestic network while focusing efforts on expanding international routes, Vietjet in 2023 safely operated 133,000 flights with 25.3 million passengers onboard – a surge of 183% YoY, of whom more than 7.6 million were flying internationally.

Vietjet launched 33 new domestic and international routes, bringing the total number of routes to 125, inc
luding 80 international and 45 domestic routes.

Notable routes included Ho Chi Minh City – Shanghai, Ho Chi Minh City – Vientiane, Hanoi – Siem Reap, Hanoi – Hong Kong, Phu Quoc – Taipei, Phu Quoc – and Ho Chi Minh City/ Hanoi – Jakarta, etc.

Vietjet is also now the largest operator of flights connecting Vietnam to India and Australia, helping promote trade and tourism with the two countries of high potentials.

The airline since early 2024 has further opened a direct route between Hanoi and Sydney, lifting the total number of Vietnam-Australia routes to seven.

It has also commenced flights from Hanoi to Hiroshima (Japan) and Ho Chi Minh City to Chengdu (China), bringing about opportunities to strengthen bilateral tourism and trade. Domestically, Vietjet has inaugurated the new route Hanoi – Dien Bien to take travelers to the historic destination of Dien Bien Phu.

The airline’s average load factor rate reached 87% and the technical reliability rate 99.72%.

Developing safe, modern, eco-friendly fleet

Sus
tainable development (ESG), which will continue to be the airline’s long-term strategic goal, is vital to the airline’s success as it helps to optimise resources, save fuel and reduce CO2 emissions with a new and modern fleet of aircraft.

To meet operational demands, Vietjet continued to invest in a modern, safe and eco-friendly fleet. As of December 31, 2023, Vietjet’s fleet consisted of 105 aircraft, including the wide-body A330s.

Having embarked on its journey to reduce carbon emissions over 10 years ago, by 2023, Vietjet’s fleet has grown significantly, contributing significantly to the company’s success by optimising resources, saving up to 15-20% of fuel, and particularly focusing on environmental protection, sustainable development, and researches on green technologies.

Regarding safety as the utmost priority, the airline last year organized numerous conferences, training courses, and simulations on safety and security, such as the Quality and Safety Conference, ISAGO (International Standard for Gro
und Operations) safety training, and emergency response simulations to proactively ensure security and absolute safety for flight operations.

Vietjet was again honored one of the safest low-cost airlines in the world by AirlineRatings.

Vietjet’s ground services center has operated efficiently, enhancing the quality of ground services while reducing operational costs at the airport. In addition to the ground handling services, Vietjet has also taken a proactive approach to aircraft maintenance work. In 2023, it launched an Aircraft Maintenance Center of International standards in cooperation with Lao Airlines in Vientiane.

Realising its strategy and vision to develop and build a workforce of international standards, the Vietjet Aviation Academy (VJAA) has become a training partner of the International Air Transport Association (IATA).

In 2023, VJAA trained over 97,000 students through 6,300 courses, actively providing training for pilots and aircraft maintenance staff (CRS). The academy also installed its
third flight simulator, becoming a top-notch pilot training center in the region.

Vietjet last year achieved a significant milestone for a comprehensive development with an ever-expanding international network of medium-haul flights. The company is ready to meet the demand for domestic travelling while continuing plans to further grow the international network./.

Source: Vietnam News Agency

Hanoi: The Vietnam International Trade Fair (Vietnam Expo 2024), one of the leading international trade exhibitions in Vietnam, kicked off in Hanoi on April 3, attracting 480 enterprises from 15 countries and territories worldwide.

The 33rd event of this kind features nearly 600 pavilions, up 20% compared to the figure last year.

Besides traditional promotion activities, product showcases, and trade connections, the 4-day expo promotes business-to-business (B2B) matching through an online platform to attract both domestic and international commercial organisations and enterprises.

Exhibitors can upload information, images, and videos related to their businesses onto digital platforms and engage in direct interactions with visitors throughout the entire 365 days of the year.

Prominent among the countries and territories exhibiting products and services at the event are India, the Republic of Korea, Russia, and China, demonstrating the attractiveness of the Vietnamese market in drawing investment and foster
ing sustainable foreign trade development cooperation.

As a highlight at the expo, the Hanoi Promotion Agency on Investment, Trade and Tourism (HPA)’s pavilion serves as a venue to promote the strengths, potential, and investment policies of Hanoi, and exports and capabilities of Hanoi’s enterprises.

High-quality commodities for export and OCOP (One Commune One Product) products are being placed on display at the event.

Within the framework of the expo, specialised events will be designed, including supply-demand connection events, seminars, conferences, and forums with various debate sessions.

The event is expected to attract 20,000 visitors./.

Source: Vietnam News Agency