Malaysia News Gazette

Hanoi: Vietnam’s exports to the US have steadily rebounded since late last year, experiencing robust growth in export value during the first two months of 2024.

Increased consumption in the US has led to a revival in orders, lifting Vietnam’s export value to this market to 17.4 billion USD in the first two months of the year, marking a notable 34% surge compared to the corresponding period in 2023.

More than half of Vietnam’s export value to the US was from high-tech products (consumer electronics, smartphones), garments and footwear. The rest came from other products such as furniture and agricultural products.

For many consecutive years, the US has been an important destination for Vietnamese goods.

In 2023, Vietnam exported nearly 97 billion USD worth of goods to the US, despite many impacts from economic recession, inflation and people tightening their spending.

With an export value at nearly 110 billion USD in 2022, the US became the first export market of Vietnam reaching 100 billion USD a year. Th
is market maintained its position as Vietnam’s largest export market in 2023.

Dau tu (Investment) newspaper quoted Ta Hoang Linh, Director of the European – American Market Department under the Ministry of Industry and Trade, as saying that the US continues to promote the strategy of diversifying suppliers, targeting ASEAN markets. That brings chances for Vietnam to become an important production and export centre in the global value chain.

Bilateral trade between Vietnam and the US has increased strongly from 450 million USD in 1995 to 124 billion USD in 2022.

The recent upgrade of the Vietnam – US relations to a Comprehensive Strategic Partnership is opening considerable opportunities for both sides to soon reach 200 billion USD in bilateral trade value.

According to the US-ASEAN Business Council (USABC), an annual delegation of 50 leading US companies will have a trip to explore investment opportunities in Vietnam from March 18-21, 2024. They operate in different fields such as technology, energy, aero
space and defence, manufacturing, agriculture and food, financial services, healthcare and investment funds./.

Source: Vietnam News Agency

Hanoi: Vietnam is ready to provide favourable conditions for APM Terminals to pilot green port projects along with a mechanism for direct electricity trading from renewable energy projects in Vietnam, said Deputy Prime Minister Tran Hong Ha while hosting the Danish company’s CEO Keith Svendsen in Hanoi on March 18.

Ha said the traditional friendship and the newly-established green strategic partnership between Vietnam and Denmark have created chances for Danish businesses to invest in Vietnam, especially in the fields of green economy, renewable energy and seaport infrastructure.

The Deputy PM said that during the process of planning the seaport system, Vietnam is striving to both ensure the optimality of international trade transport routes and meet the development requirements of industries, especially manufacturing-processing with a scale and model consistent with the green and smart port trend.

Ha highly valued APM Terminals’ plan to develop a green fleet and green seaports amid increasing strict techn
ical barriers and environmental and greenhouse gas emission standards for the sea transport and seaport industry.

For his part, Svendsen hailed the achievements that Vietnam has gained in improving the business environment and creating favourable conditions for foreign investors, as well as Vietnam’s efforts in digital transformation and green transition towards sustainable development.

The commitment to net-zero emissions that Vietnam delivered at the 26th UN Climate Change Conference (COP26) fits APM Terminals’ orientation to develop a green fleet and green seaports in the coming years, he said.

Svendsen underlined that his company hopes to explore investment opportunities to build the largest and modern deep-water container seaports in Vietnam through digital, lean and green initiatives, and expressed a hope to receive support from the Government of Vietnam in the coming time./.

Source: Vietnam News Agency

Hanoi: Hanoi’s concentrated promotion programme will kick off on April 30, featuring 100 booths with promotion from 30-100%, according to the city Department of Industry and Trade.

The department said that major activities of the programme will be organised in May, July, and November, with discount of up to 100%. The programme expects the engagement of 1,000-2,000 businesses from all economic sectors.

It said that along with meeting shopping demands of locals, the programme aims to provide chances for businesses to sell their products and reduce inventories, thus promoting production and business activities, contributing to boosting the city’s socio-economic development.

In November, the programme will take place in all localities across the capital city, with about 800-1,000 venues. Various events have been planned within the programme’s framework, including a Hanoi shopping festival and Hanoi Mega Sale events.

The highlight of the programme in November is the Hanoi Midnight Sales 2024 and Black Friday e
vents from November 29-30 with the involvement of 200 businesses, trade centres, supermarkets, and business facilities.

The programme is expected to connect supply and demand, promote domestic consumption and boost sales revenue for businesses, thus increasing the retail sales of products and revenue./.

Source: Vietnam News Agency

Dien Bien: Deputy Prime Minister Tran Hong Ha said that the newly approved master plan for the northwestern province of Dien Bien will create a solid foundation for its development while he handed over the approval decision to local authorities at a ceremony on March 17.

Ha asked the local authorities to prioritise resources to invest in infrastructure projects for regional and global connection, creating a connection axis between Vietnam and other Southeast Asian countries and China.

The province must concentrate on developing traffic connection systems, connecting energy infrastructure, digital infrastructure, health care, and education, he said, urging the province to implement mechanisms and regulations to attract large investors, citing Dien Bien’s numerous advantages in tourism development.

To produce distinctive, high-value agricultural goods, the province must continue to highlight its agricultural strengths and soil advantages, focus on the forestry industry, and expand afforestation.

According t
o him, Dien Bien also benefits from hydropower, solar energy, and wind energy – renewable energy sources that require consideration, funding, and utilisation.

After the master plan was announced, the official urged the province to step up investment promotion activities and ask for help from scientists and investors to ensure the area develops diversely and sustainably.

He said the province needs to promote the digital economy, IT application, and administrative procedure reforms in all fields.

According to its master plan for the 2021-2030 period with a vision towards 2050, Dien Bien strives to become a tourism and service hub of the northern midlands and mountainous region by 2030.

The plan states that by 2030, Dien will become a province with a medium level of development, focusing on high-tech, high-quality forestry and agriculture, as well as processing and tourism.

The master plan places a significant emphasis on the digital economy. The area will rise to prominence internationally and serve as a h
ub for historical, cultural, and ecological tourism in the country, according to the plan.

The province outlines specific goals including exceeding 10.51% of the annual economic growth rate for the 2021-30 period. By 2030, the average per capita GRDP is expected to surpass 113 million VND (4,570 USD). Over 2.65 million tourists are expected to visit the province in 2030.

The province has chosen three innovations: refining rules and regulations to boost productivity; completing the socioeconomic infrastructure system in a timely and contemporary manner, emphasising transportation infrastructure investments to spur innovation and development; and applying science and technology, strengthening innovation for human resource development.

It identifies a driving economic axis along Highway 279, the Dien Bien – Son La – Hanoi expressway, associated with Dien Bien airport. It is considered the main and important driving force of the entire region.

The province will develop an economic axis along National Highway
12, National Highway 6 and National Highway 4H, connecting with its western part. Dien Bien identifies four growth poles namely Dien Bien Phu city, Muong Lay township, Tuan Giao town, and Muong Nhe town./.

Source: Vietnam News Agency

Hanoi: This year, Binh Duong province plans to attract 130-140 investment projects to industrial parks (IP), securing 1.2-1.3 billion USD from foreign capital and 1.1-1.2 trillion VND (about 48.535 million USD) from domestic investors.

The plan includes a total construction investment capital of 5.7 trillion VND, with the provision of leasing or subleasing 100-150 hectares of land. The objective is to attract 15,000 workers and achieve a total revenue of 35-40 billion USD.

The management board of Binh Duong province’s industrial parks reported that there are currently 28 operational IPs in this area, with an impressive occupancy rate of over 93%.

This makes Binh Duong the locality with the highest IP occupancy rate in the entire country.

To date, Binh Duong’s IPs have attracted 3,080 active projects. Among them are 2,400 foreign-invested projects with a registered capital of nearly 29 billion USD and 680 domestic projects with a registered capital of nearly 93.6 trillion VND.

For 2026-2030, the plan expa
nds to 19 IPs, with a total land area of around 5,537 hectares. This includes the completion of the ongoing development of the IPs from the 2023-2025 period, covering an area of about 2,063 hectares, and the addition of nine new IPs, spanning 3,474 hectares.

These IPs will follow the “3-in-1” model, combining IPs, urban areas, and service areas. They will feature comprehensive and modern technical and social infrastructure.

The investment attraction for these IPs will be more focused and selective, emphasising specialisation, ecological considerations and smart developments./.

Source: Vietnam News Agency

Hanoi: The Vietnam Chamber of Commerce and Industry (VCCI) has proposed a zero-value added tax (VAT) rate to be maintained for exported services, over worries that tax hikes would undermine the competitiveness of Vietnamese providers against foreign rivals.

The Ministry of Finance is drafting amendments to the Law on Value Added Tax which will be proposed to the National Assembly for consideration in the 7th meeting in May this year.

In the draft, the ministry wants to impose VAT on most exported services, instead of the zero rate as currently.

Specifically, only international transportation and vehicle rental outside Vietnam and some related services are proposed to be maintained at zero tax rates, while others will be subject to VAT rate, commonly at 10%.

The reason for the amendment is that tax authorities found it difficult to distinguish between revenues from exported services and from domestically consumed.

VCCI said that the imposition of 10% VAT rate when exporting will make it difficult for Viet
namese services providers to compete with foreign rivals.

International trade of services increased strongly in the global market during the past two decades and is forecast to remain robust in coming years, along with the vibrant development of Internet and remote work solutions, VCCI said, citing statistics of the World Bank that global export of services jumped from 400 billion USD in 1980s to more than 7.2 trillion USD in 2022, with an average annual growth rate of 6.5% from 2003 to date.

The international transportation service accounts for a significant proportion but it is dropping, from 30% in 1982 to 17% in 2020, while telecommunications and IT services are rising.

Statistics showed that global telecommunications and IT services export is expanding at 12.3% annually on average from 2004. The rate has been rising more rapidly since the COVID-19 pandemic.

According to the VCCI services export has huge potential for development. Vietnam’s export of services reached 20 billion USD in 2023 with an ave
rage annual growth rate of 11%, higher than the country’s gross domestic growth rate. Vietnam is running a trade deficit of services worth more than 10 billion USD each year.

Providing exported services does not require huge capital like investing in manufacturing and processing industry, which is appropriate in a capital-shortage economy like Vietnam.

In addition, Internet-based services export helps promote the country’s image and increase ‘soft power’, VCCI said.

Vietnam is an export-oriented economy with export being an important growth driver with an average annual growth rate of nearly 15%, VCCI said, emphasising that zero VAT on exported services plays a significant role.

According to VCCI, most countries around the world are imposing zero VAT on exported services and allow tax refunds on inputs.

Thus, VAT on exported services should be kept at zero, VCCI said.

Major exporting services of Vietnam include manufacturing outsource, maintenance and repairing, tourism and transportation, insurance, fi
nancial services, IT and information services./.

Source: Vietnam News Agency

Hanoi: Although Vietnam holds huge potential to boost rice export in 2024 as the world is forecast to face a shortage of about 5 million tonnes of the grain, limitations in linkage chain must be tackled for the industry to move forward.

According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, a stronger linkage chain will enable risk sharing and harmonised benefits, helping the rice sector develop sustainably.

Production linkage has an important role to play in agricultural production since it will help prevent the situation that bumper crops drag down rice prices.

Since the rice linkage remains weak, the agricultural ministry has penned a project to develop rice production chain, with the participation of 14 provinces across the nation, Tien said, adding hi-tech farming models deployed in the chain so as to improve the competitiveness of the sector, making it better integrate in the global supply chain.

The US Department of Agriculture forecast that the global rice supply is no l
onger abundant in 2024 when rice output of India, accounting for more than 40% of world rice export, would decline by around 4 million tonnes to 132 million tonnes.

Other major exporters such as the Philippines, Indonesia, Thailand and Cambodia are also predicted to see dropping rice output due to the impacts of El Nino and climate change.

The Ministry of Industry and Trade said that Vietnam will enjoy a robust year of rice export due to great demand from Indonesia, the Philippines, Malaysia, China and several African countries for fear of El Nino which could linger till mid-2024.

Right in January, Indonesia opened a tender to import 500,000 tonnes of rice to bolster the country’s food reserve, with Vietnamese companies winning contracts to supply nearly 400,000 tonnes. This signals a positive outlook for a successful year for the rice sector.

Statistics from the agricultural industry showed that Vietnam exported 1.02 million tonnes of rice for 708 million USD in the first two months of this year, up 49.8
% in value year-on-year.

The country aims to ship some 6.5 million tonnes of rice abroad this year./.

Source: Vietnam News Agency