Malaysia News Gazette

HCM City: The European Chamber of Commerce Vietnam (EuroCham) on April 8 released the Business Confidence Index (BCI) for the first quarter of 2024, saying that the index reached 52.8 points – the highest level since 2022.

The index shows that Vietnam’s economic growth boosts the optimism of European businesses. It is also evidence of increased strong confidence in the Vietnamese economy among European businesses operating in the Southeast Asian country.

‘This positive trend underscores the European business community’s view of Vietnam as a dynamic market with promising growth prospects,’ said EuroCham Chairman Dominik Meichle.

According to him, the index once again rising above the 50 threshold reaffirms the country’s growing appeal. Continued efforts to enhance stability and predictability will further strengthen Vietnam’s global competitiveness and unlock its full potential, he said.

Meanwhile, Thue Quist Thomasen, CEO of Decision Lab – the unit that conducted the BCI survey, said the hard data from th
e BCI paints a clear picture – investor optimism is steadily improving. Vietnam certainly has the capacity to become the region’s preeminent investment destination. Proactive and investor-focused policies will further accelerate its rise, he said.

European businesses express optimism about Vietnam’s economy, both in the near and long term. While a third of businesses feel optimistic about their individual Q2 outlooks, nearly 40% are neutral, over half of respondents anticipate higher orders and revenues in Q2, the index indicates.

Looking to the long term, this optimism strengthens, with 71% of businesses feeling positive about their long-term prospects in Vietnam over the next five years.

Vietnam’s skilled workforce is a major draw for European investors, with 75% of EuroCham members hiring 76% or more of their staff locally, according to the report.

The quarterly BCI serves as a vital tool for understanding the perceptions of European and Europe-related companies and investors in the Vietnamese market.
Conducted since 2011, the BCI collects feedback from EuroCham Vietnam’s extensive network of 1,400 members across a diverse range of sectors. This survey provides valuable insights into the current business landscape in Vietnam and offers a glimpse into future expectations./.

Source: Vietnam News Agency

Hanoi: Vietnam Airlines is scheduled to launch direct flights from Hanoi and Ho Chi Minh City to Manila, the Philippines, from June 17.

The Hanoi-Manila route will have three flights per week – on Tuesdays, Thursdays, and Saturdays. Meanwhile, there will be four flights a week linking HCM City with Manila on Mondays, Wednesdays, Fridays, and Sundays. All will use wide-body aircraft.

The national flag carrier said it is the first domestic airline to open direct flights to Manila. The new routes mark a milestone in its international flight network development strategy as they connect Manila, Hanoi and HCM City – three leading economic hubs of Southeast Asia.

The opening of direct air routes to Manila will also help promote economic, cultural and tourism exchanges between Vietnam and the Philippines as well as in the Southeast Asia region, the firm added.

On this occasion, Vietnam Airlines is offering various promotions such as round-trip tickets priced from 141 USD, including taxes and fees. This promotion
is applied to customers who buy tickets between April 8 – June 23 for the flights departing from June 17 to June 23 this year.

Tickets for the routes are now available on Vietnam Airlines’ website, mobile app, and official ticket offices and agents nationwide./.

Source: Vietnam News Agency

Hanoi: Minister of Industry and Trade Nguyen Hong Dien and Lao Minister of Industry and Commerce Malaithong Kommasith signed a new Vietnam-Laos trade agreement following their talks in Vientiane, Laos, on April 8.

At the talks, Minister Dien described industry and trade ties as a pillar of bilateral relationship. In the first three months of this year, two-way trade between Vietnam and Laos hit 417.8 million USD, down 1.8% annually. Vietnam mostly exported petroleum products, iron and steel, machinery and equipment to Laos while importing rubber, wood, ore and minerals from the neighbouring country.

Dien acknowledged Laos’s growing production capacity, evidenced by its transition from a trade deficit to a surplus with Vietnam in recent years. He also underscored Laos’s increasing importance as one of the important suppliers of raw materials for Vietnam’s manufacturing within ASEAN.

According to him, Vietnam has a significant demand for imported raw materials and electricity, including those from Laos.

Die
n affirmed the Vietnamese Ministry of Industry and Trade’s readiness to help Laos secure a stable supply of petroleum products.

Both sides agreed to hold more trade promotion activities such as business forums, networking conferences, trade fairs and market information seminars; as well as develop border trade infrastructure.

They called for effectively implementing the Memorandum of Understanding on the development and connectivity of Vietnam-Laos border trade infrastructure signed in January 2024 while reviewing to amend and supplement the 2007 Hanoi Agreement and the Vietnam-Laos Border Trade Agreement to align with the current realities.

Following the talks, the two ministers signed the new Vietnam-Laos trade agreement, and witnessed the signing of a Memorandum of Understanding (MoU) between the General Department of Market Surveillance (GDMS) and the Department of Business Competition and Trade Inspection under the Lao Ministry of Industry and Commerce, and another MoU between the GP Holdings – the Na
tional Research Institute of Mechanical Engineering and Phonesack Group on building warehouses and conveyor belts for coal transportation.

Under the MoU between the GDMS and the Department of Business Competition and Trade Inspection, both sides will update each other about respective policies and laws, offer support in market management training for officials, share the best practices in enforcing administrative penalties on business and trade violations while combating cross-border smuggling, commercial fraud and illegal transportation of goods between the two countries.

Specific cooperation plans will be determined annually or periodically, taking into account each country’s legal frameworks and strategic priorities./.

Source: Vietnam News Agency

Hanoi: Forty-five provinces and centrally-run cities have issued logistics service development plans up to this point, while 47 provinces and cities have reported on the implementation of logistics activities over the last year.

Nine provinces and cities have held conferences to promote investment and develop provincial logistics services, and five provinces and cities have organised logistics knowledge training for local officials.

The Agency of Foreign Trade (AFT) under the Ministry of Industry and Trade (MoIT) held a meeting with municipal and provincial departments of industry and trade concerning State management of the logistics sector in Hanoi last week.

Speaking at the opening of the meeting, AFT Director Nguyen Anh Son said that with a special geopolitical location in a dynamic development area of the world, along with increasingly deep integration with the global economy, Vietnam’s growth rate of import-export and e-commerce was always in the double digits.

Vietnam was becoming an attractive des
tination for logistics activities in the Asia-Pacific region, added Son.

The World Bank’s report published last year showed that Vietnam ranked 43rd in the logistics efficiency index ranking, in the top five of ASEAN after Singapore, Malaysia and Thailand, and the same position as the Philippines.

Along with that, the average annual growth rate of Vietnam’s logistics was from 14 – 16%, making an important contribution in bringing Vietnam’s total export and import turnover to 638 billion USD last year.

Vietnam’s logistics services not only contributed significantly to the country’s economic development but also played an important role in creating an effective transportation network, connecting domestic trade with international markets, he said.

Sharing at the meeting, Vu Bich Hao, Deputy Director of the Department of Industry and Trade of Ba Ria – Vung Tau province, emphasised that logistics services in the province were quite diverse, including transportation, warehousing and other support services.

The
province currently has a total of more than 300 businesses providing goods transportation services and logistics warehousing services, according to the official.

Regarding seaport logistics infrastructure, Ba Ria – Vung Tau has 69 planned ports. Of which, there are 50 projects in operation with a total wharf length of 17,735 metres and a total design capacity of 180 million tonnes per year; and eight container ports with capacity of 8.3 million TEUs per year.

Cai Mep – Thi Vai Port cluster is the main port cluster of Ba Ria – Vung Tau seaport. There are currently 24 projects in operation with wharf length of 10,988 metres and total design capacity of 155 million tonnes per year.

It had the potential to be an important gateway not only for Vietnam but also for Southeast Asia, said Hao.

To improve competitiveness and develop the logistics industry, she proposed the MoIT continue to improve policies and laws on logistics services; especially detailed guidance on State management in the field of logistics to
serve as a legal basis for localities to deploy and implement./.

Source: Vietnam News Agency

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