Malaysia News Gazette

Moscow: The Vietnamese Embassy in Russia organised a seminar on April 19 on prospects for Vietnam-Russia digital economic cooperation, attracting over 100 delegates representing ministries, sectors, research institutes, and business associations of the two countries.

The function focused on opportunities and solutions to further promote cooperation between the two nations in this promising field.

In recent years, Vietnam’s digital economy has experienced remarkable development. According to the Ministry of Information and Communications, the proportion of the digital economy in Vietnam’s GDP reached 16.5% in 2023, with an average annual growth rate of 20%, which is three times the GDP growth rate.

According to assessments from international organisations, the scale of Vietnam’s Internet economy in 2023 reached approximately 30 billion USD, up 19% compared to the figure in 2022. Vietnamese digital technology companies have also been gradually strengthening their international cooperation efforts. Last year,
Vietnam had over 1,500 digital technology enterprises with revenue from foreign markets totaling an estimated 7.5 billion USD, up 4% year-on-year.

Meanwhile, the strongest growth in Russia’s Internet economy is observed in the e-commerce sector, with total revenue reaching 15.4 trillion rubles (over 164 billion USD) in 2023. Russia also leads in the field of smart cities and e-government, with cities like Moscow and St. Petersburg being at the forefront of IT application worldwide.

Delegates said that the current context presents tremendous opportunities for cooperation between the two countries in general and between their respective businesses in particular. Several digital economic cooperation projects are already underway between Vietnam and Russia, particularly in such areas as cybersecurity, smart cities, digital banking, and digital business solutions.

In addition to the aforementioned projects, participants also highlighted numerous other promising areas for digital economic cooperation, such as fi
nance, health care, agriculture, transportation, energy, environment, and manufacturing.

They put forward recommendations and solutions to further expand cooperation in the digital economy sector from the perspectives of policymakers, researchers, and businesses, including intensifying the trade promotion in information technology products of the two countries, and boosting collaboration in researching and developing digital platforms and products.

Ambassador Dang Minh Khoi emphasised the significance of the event, saying Russia’s experiences in developing its digital ruble is highly beneficial, expressing Vietnam’s interest in participating in the testing process of Russia’s digital ruble by the Central Bank of Russia.

Delegates agreed that if utilised effectively, this could be a significant driver for economic cooperation between the two countries in the coming time./.

Source: Vietnam News Agency

Many banks have reported positive business indicators, especially credit growth, in the first quarter of this year.

SeABank’s pre-tax profit in the first quarter of 2024 reached more than 1.5 trillion VND, an increase of nearly 41% over the same period in 2023. The bank’s total operating income also surged by 19.54% to 2.7 trillion VND and its total revenue increased by 4.6% to nearly 6.44 trillion VND. At the same time, SeABank’s net non-interest income (NOII) also recorded an impressive growth of nearly 51% over the same period last year to 705 billion VND.

As of March 31 this year, SeABank’s total assets were more than 271.6 trillion VND, an increase of 2.06% compared to December 31, 2023.

Chairman of ACB Tran Hung Huy said at the end of the first quarter, credit growth at ACB reached 3.7%, double the growth rate of the whole banking industry and also better than the same period last year. The bank’s raised capital also grew by 2.1%, of which non-term deposits increased by 6.4%.

ACB’s profit was estim
ated at 4.9 trillion VND, close to the bank’s plans.

Dang Khac Vy, Chairman of VIB, said the bank’s credit growth was about 1% in the first quarter of this year. VIB’s profit reached more than 2.6 trillion VND, equivalent to the same period last year.

Nguyen Dinh Tung, General Director of OCB, said by the end of the first quarter of 2024, OCB’s credit growth reached about 4.6% and capital mobilisation increased by about 5%. The bank’s pre-tax profit in the first quarter of 2024 was about 1.2 trillion VND.

In a recent report, MB Securities Company (MBS) forecasts profit of the banking industry will increase by 20% in the first quarter of 2024.

According to experts, the prosperity of the banking industry in the period came from many supporting factors, including favourable policies to credit growth.

Credit of the banking industry as of March 25, 2024 increased by 0.26% compared to the end of 2023 to about 13.6 quadrillion VND, the State Bank of Vietnam (SBV) reported. In March alone, credit rose by 0.98%.

T
o 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./.

Source: Vietnam News Agency

The Department of Science and Technology of the northern port city of Hai Phong is organising the International Techfest Connect 5+, a science and technology festival to promote connectivity in the northern coastal region, from April 15-16.

The event attracts representatives of the Departments of Science and Technology of provinces and cities in the Red River Delta, leaders of Cheongju city in the Republic of Korea (RoK)’s North Chungcheong province, the North Chungcheong Technology Park, and organisations and businesses of the RoK’s innovation ecosystem.

Director of the Hai Phong Department of Science and Technology Tran Quang Tuan said that this Techfest will contribute to improving the quantity and quality of connection and promotion events between the city’s businesses and those in the region, and the country and around the world.

Pham Hong Quat, Director of the Market Development Department under the Ministry of Science and Technology, stated that the event will help localities and businesses find op
timal solutions to local development problems, especially those related to green transformation, digital transformation, and circular economy. This is also an opportunity for Vietnamese enterprises to cooperate with international ones and gradually master some value chains in semiconductor technology and green technology.

Speaking at the event, Cheongju Mayor Lee Beom-seog expressed his belief that cooperation between businesses and localities will open up opportunities for the parties to expand collaboration, and jointly enhance global competitiveness based on technology.

During this Techfest, various activities are being held, including the display of 40 booths introducing innovation products and technologies, the signing of cooperation deals between Vietnamese and Korean firms, and the sharing of experiences in seeking ways to boost the sale of products of startups./.

Source: Vietnam News Agency

The State Bank of Vietnam (SBV) will resume gold bar bidding after 11 years, aiming to increase the supply of gold to the market, promptly and immediately settle the high difference in domestic and international gold prices, thus ensuring the gold market operates in a safe and stable, healthy, open, transparent and effective manner in accordance with the Prime Minister’s direction.

The SBV said that it will release a notice one day prior to the bidding. After the floor price is announced, credit institutions and gold businesses will have 30 minutes to decide the purchase volume and price. One hour after closing the bid, the bank will announce the results. Businesses will have to make a deposit to participate in the bidding no later than 5pm on the day of receiving the bidding notice.

So far, 26 units, including commercial banks and gold businesses have set up a gold bar trading relationship with the SBV. Of which, 15 have been eligible for bidding. The type of gold offered for bidding is SJC gold bars.

Th
e first gold bidding session was held on March 28, 2013. In that year, the SBV organised 76 bidding sessions, during which 1,819,900 out of the 1,932,000 taels of gold bullion were sold.

SBV Deputy Governor Pham Thanh Ha said that the move is part of the bank’s efforts to deal with the high difference in domestic and international gold bar prices. The official added that the bank will continue to roll out various measures to stabilise gold prices.

Since the beginning of this year, domestic gold prices have increased strongly, recently setting new records and widening the gap with the global prices.

At 1:30pm on April 15, the Saigon Gems and Gold One Member Limited Liability Company listed SJC gold prices at 83.3 million VND per tael for buying and 85.52 million VND per tael for selling, an increase of 3 million VND per tael for buying and 2.6 million VND per tael for selling compared to the previous trading session./.

Source: Vietnam News Agency

The Vietnamese garment and textile sector is carrying out various measures to bolster production and business activities amidst formidable challenges posed by falling demand, high inventory, and geopolitical instability in several countries, according to insiders.

Enterprises have received more export orders but seen no improvement in prices while several contracts even plunge 30-50% in value, they said.

Furthermore, cotton prices are expected to soar in the coming time due to speculation and logistics difficulties. In the meantime, it could be hard for Vietnamese firms to compete in the Chinese market where tax incentive and support policies on transport costs and electricity have been rolled out to back up domestic production.

Against this backdrop, General Director of the Vietnam National Textile and Garment Group (Vinatex) Cao Huu Hieu said that firms need to capitalise on all opportunities, make rational forecast, and get updated with the situation so as to take timely measures.

Besides, they should
drastically restructure their organisations, apply advanced management solutions, and push ahead projects that help improve productivity, he added.

Vinatex Chairman Le Tien Truong stressed that besides challenges, there is ample room for development for those with sound business strategies, diverse products, deep engagement in supply chain, and rational steps towards digital economy and green economy.

The group will keep a close watch on the market and operation of its members so as to pen flexible and breakthrough measures to develop products and seek new markets to ensure business efficiency, he said.

Meanwhile, Chairman of Hung Yen Garment Corporation Joint Stock Company Nguyen Xuan Duong held that high input cost and workforce transition to such markets as the Republic of Korea and Japan have placed a burden on the company.

Along with global demand falling by 5-10%, large fashion brands teetering on the brink of bankruptcy is another challenge that makes it hard for Vietnamese firms to recover tens of
millions of USD, he said.

Duong suggested competent ministries and sectors to issue suitable policies to help enterprises get access to capital to strengthen investment and bolster production, adding workers also need assistance to improve their livelihoods.

During January – March, the garment and textile sector’s export turnover grew nearly 10% year-on-year to some 10 billion USD, a locomotive for enterprises to fulfill the set target of 44 billion USD for the whole year./.

Source: Vietnam News Agency

The real estate market has witnessed positive developments, with a slew of projects, including billion-dollar projects, being announced and called for investment in the first quarter of 2024.

This information was revealed at a conference held on April 15 by the Vietnam Association of Realtors (VARS) to announce a report on Vietnam’s real estate market in the first quarter, and the forecast for the second quarter.

According to Tran Van Binh, Vice Chairman and General Secretary of VARS, the Vietnamese economy has shown signs of vitality in the last quarter, and likely to maintain a positive growth trajectory. The Government, ministries and sectors have demonstrated high determination in promoting the real estate market, particularly in ensuring the safe and healthy development of the housing segment.

VARS’s observations indicated that after a prolonged period of cautious monitoring of market developments, customers and investors are beginning to clearly show their interest in real estate, Binh said.

Accord
ing to VARS’s survey, up to 70% of customers and investors are willing to purchase real estate in 2024 if they find suitable products. Land plots and low-rise properties are the two segments receiving the most attention.

In the first quarter of 2024, a total of 20,541 products were supplied, including 4,300 new products. Notably, a series of billion-dollar real estate projects have simultaneously been commenced, ready to supply abundant sources to the market.

Le Dinh Chung, CEO of SGO Homes, remarked on the supply structure, saying that 1,250 affordable housing units were offered for sale in the first quarter, a growth rate of over 70% compared to the fourth quarter of 2023. Notably, 100% of the supply source came from social housing projects in many localities.

Furthermore, the absorption rate of projects continued to improve, reaching nearly 31%, up 5% compared to the fourth quarter of 2023, and 19% higher than the same period last year.

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According to Pham Thi Mien, Deputy Head of Market Research and
Investment Promotion at VARS, the proportion of transactions in the affordable apartment segment is trending downward due to a beginning scarcity in the supply. However, the proportion of transactions in the low-rise segment and land plots has improved compared to the previous period.

Currently, primary selling prices continue to maintain a stable trend, with an increase of about 2-3% compared to the previous quarter. New low-rise projects and land plots are priced quite reasonably.

Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association and Chairman of VARS, emphasised that the real estate market currently possesses sufficient elements ready to serve as a springboard for the recovery process./.

Source: Vietnam News Agency

The Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) opened the Vietnam National Brand Week 2024 in Hanoi on April 16.

In his opening remarks, Deputy Minister Nguyen Sinh Nhat Tan, who is also Vice Chairman of the Vietnam Value Programme Council, hailed the Vietnamese business community’s efforts to promote the growth of the Vietnam National Brand amidst geopolitical volatility that has negatively impacted the domestic production, trade, and investment.

The Vietnam National Brand skyrocketed 102% during 2019-2023, valued at 498.13 billion USD in 2023, he said, citing a report by the UK’s brand evaluation consultancy Brand Finance.

The Southeast Asian country ranked 33rd out of the 121 countries and territories in terms of brand value last year, which affirms its prestige and better position in the international arena and demonstrates its stature in the international integration.

Vietnam National Brand Week 2024 opens hinh anh 2

At the awarding ceremony in 2022 (Photo: VNA)

Over th
e past 20 years, the Vietnam National Brand programme has supported localities, associations, and enterprises to develop their brands, and raised public awareness of the strong connection between the national brand, and product and business brands to improve national competitive edge, he stressed.

An international forum on Vietnam National Brand, themed ‘elevating the core values’, was held in the framework of the week, serving as a venue for management agencies, experts, and domestic and foreign organisations to discuss measures to build and develop brands./.

Source: Vietnam News Agency