Category: Socialist Republic of Vietnam

Source: Socialist Republic of Vietnam

Of the total, export revenue accounts for 228.17 billion USD, down 9.8%, while import revenue is at 208.27 billion USD, down 15.9% from the same period in 2022.

In August alone, Vietnam’s total import and export revenue was reported at 62.08 billion USD, a rise of 8.8% over the previous month, equivalent to 5.01 billion USD.

In addition, Vietnam enjoyed a trade surplus of 3.44 billion USD in August, raising the total trade surplus in eight months to 19.9 billion USD.

During the eight-month period, budget revenue from import and export activities was estimated at nearly 240.4 trillion VND (9.9 billion USD), down 19.2% from the corresponding period last year.

Source: Socialist Republic of Vietnam

The improvement of the Vietnamese economy becomes more visible as many sectors of the economy continue to maintain a more positive trend, compared to the previous month and the same period last year. In addition, the Vietnam Manufacturing Purchasing Managers’ Index (PMI) also expanded again in August, to surpass the 50.0 mark for the first time in six months, while businesses began to see increases in the number of new orders, after months of decline.

Overcoming obstacles

The industrial production in August 2023 advanced compared to the previous month and the same period last year, in which some key industries soared sharply, such as metal production; production of beds, cabinets, tables, and chairs; production of products from prefabricated metal; food production; and beverage production.

Commercial and service activities maintained a high increase, with total retail sales of goods and services expanding by 10%, over the same period in 2022. The country was estimated to have a trade surplus of more than 20.19 billion USD in the first eight months of this year, while that number was 5.26 billion USD during the same period in 2022.

The economy also witnessed a rising number of newly registered businesses, as well as an expansion in registered capital and workers.

Moreover, foreign direct investment (FDI) posted encouraging results amid the difficult context of the world and regional economy. Total FDI capital hit 18.15 billion USD in the first eight months of this year, up 8.2% over the same period last year, showing the confidence of foreign investors in Vietnam’s economy.

World Bank Lead Economist for Vietnam Andrea Coppola said at the Vietnam Business Forum 2023, that the global slowdown is affecting Vietnam’s main trading partners such as the US, the Eurozone and China, creating pressure on and risks to the Vietnamese economy due to the declines in exports.

Personal consumption has decelerated after a period of bouncing back, due to strong compression during the COVID-19 epidemic. Private investment has also dropped sharply. Thus, the plunge in external demand, combined with weaker domestic demand, are the causes of Vietnam’s economic slowdown, during the first half of 2023.

A positive sign seen during these past months, is the regaining of import and export activities, raising expectations for the recovery prospects of businesses. Notably, the disbursement of public investment capital has been improved, compared to the first half of the year, contributing to supporting growth.

According to Coppola, Vietnam’s economic growth in the last months of the year will mainly rely on domestic consumption and public investment. The economy is overcoming obstacles and is forecast to gradually recoup from early 2024 and thrive more robustly from 2025.

Managing Director of Mizuho Bank Hanoi Motokatsu Ban also shared the same view with Coppola. The expert said that Vietnam’s economic growth has recently slowed down, but the Government has had policies to support people and businesses to maintain economic growth and continue to attract FDI inflows.

Global economic developments are still detrimental to the domestic situation, but Vietnam’s economy has a solid foundation and prospect to speed up in the coming years when adverse external factors are reduced.

Effective solutions in the short term needed

According to economic experts, it is hard to come up with solutions to reverse the situation in the second half of 2023, but slowing economic growth requires the Government to take effective policy actions in the short term, helping to boost recovery from early 2024.

The World Bank warns that monetary policy does not have much room to reduce interest rates, nor can it bring about much effect because the current demand for credit is not high.

Therefore, there should be solutions to assist people and businesses through fiscal policy and the effective implementation of the Government Programme on supporting socio-economic recovery and development.

In addition, structural reforms are needed to recuperate the economy in the medium and long term, through investment policies for the energy sector, handling bad debts, and efforts to combat global climate change.

According to Deputy Minister of Planning and Investment Tran Quoc Phuong, although the economy still faces many challenges in the coming time, there will be many opportunities for the main growth drivers, including exports, consumption, public investment and FDI. The Government and the Prime Minister are implementing many solutions to foster and create a breakthrough for economic growth.

Several main driving forces, especially public investment, are being promoted to free up resources, creating opportunities for production development, in addition to consumption stimulation solutions, to facilitate businesses to get access to credit, tax and land rent exemption.

In particular, the Government has drastically directed ministries, sectors and localities to focus on hastening the disbursement of public investment. As a result, the disbursement of public investment in eight months of 2023 was higher than the same period last year. Therefore, there is a basis to believe that 95% of public investment will likely be disbursed in 2023.

To achieve the highest socio-economic development results in the remaining months of 2023, the General Statistics Office recommends that the Government concentrate on implementing the fiscal and monetary policies passed by the National Assembly, maintain macroeconomic stability and implement proactive and flexible monetary policy, in line with fiscal policy and other macro policies.

It is also advisable to stimulate domestic production and consumption and have solutions for several industries and fields, that are adversely affected by the decline in world market demand, such as footwear, textiles, and wood production and processing.

Source: Socialist Republic of Vietnam

The debate on September 13 was part of the 54th regular session of the UN Human Rights Council (UNHRC).

Mai, who is Permanent Representative of Vietnam to the UN, the World Trade Organisation (WTO) and other international organisations in Geneva, spoke highly of the active role of and efforts by the High Commissioner in stepping up the UNHRC’s activities, affirming the country’s support for activities of the High Commissioner Office to promote and protect human rights for all.

She emphasised Vietnam’s policy on promoting and protecting all people’s enjoyment of human rights, along with its development policy that centres on the people and views the people as the main stakeholder, goal, and momentum of development.

Vietnam perceives that it is necessary to promote initiatives and actions at national, regional, and international levels to resolve adverse impacts of global challenges such as climate change and food insecurity, which are threatening the enjoyment of human rights by people around the world, especially vulnerable groups, as well as the possibility of obtaining the Sustainable Development Goals, she noted.

The ambassador also underscored the need to settle political divisions and differences, and foster cooperation and trust building, through activities of the UNHRC as one of the measures, to ensure that people worldwide can fully enjoy human rights.

Mai added that Vietnam is committed to boosting substantive dialogue and effective cooperation with all member states and human rights mechanisms of the UN. It supports the fundamental principles of universality, equality, objectivity, impartiality, and non-intervention into countries’ internal affairs.

The country holds that dialogue, substantive cooperation, and adherence to the above-mentioned principles form the most effective way for promoting and protecting human rights for the sake of sustainable development.

During the UNHRC’s 54th session in Geneva from September 11 to October 13, Vietnam has been enhancing its participation as a UNHRC member in the 2023 – 2025 tenure.

A focus Vietnam has promoted during the session is the right to health. The country has contributed to a joint speech at the discussion on the promotion of human rights via immunisation, and held an international seminar on this topic.

The 54th session, organised in a hybrid format, is the last regular session of the UNHRC this year.

Source: Socialist Republic of Vietnam

Within the framework of her visit, Xuan is expected to hold talks with her South African counterpart and both will witness the signing of several cooperation agreements.

She plans to meet with the General Secretaries of the ruling African National Congress (ANC) and the Communist Party of South Africa, receive the President of the South African Chamber of Commerce and Industry and leaders of several localities and businesses.

She will cut the ribbon to launch the Vietnamese Culture Space, and attend a ceremony to mark Vietnam’s 78th National Day, and the 30th founding anniversary of bilateral diplomatic ties.

Xuan’s trip is hoped to hold great significance, helping further intensify the traditional friendship and create more momentum for both sides to foster substantive and effective cooperation.

Source: Socialist Republic of Vietnam

Between now and the year’s end, the figure could reach roughly 6 billion USD.

Since early this year, the export of wood and wooden furniture has been dull, with a shortage of orders common in most businesses. In the past eight months, the export turnover neared 8.3 billion USD, down around 26% annually, Phuong said.

Since May this year, the Vietnamese firms have been importing a significant amount of raw wood materials which rise by 5-10% per month. This is a sign that they are actively preparing for end-of-year orders, he added.

Citing data from the International Trade Centre (ITC), Phuong revealed that the Vietnamese wood enterprises are also importing a substantial amount of machinery and equipment, totaling approximately 240 million USD, mostly from China, Europe, the Republic of Korea and Japan, among others.

According to him, the 2023 Vietnam International Woodworking Industry Fair (VietnamWood 2023) and the Vietnam International Furniture Accessories, Hardware & Tools Exhibition (Furnitec 2023) will be concurrently held in Ho Chi Minh City from September 20-23.

Organised by the Vietnam National Trade Fair & Advertising Company, Yorkers Trade & Marketing Service Co and HAWA, the events will also feature livestream sessions to introduce new technologies and a series of wood technology seminars with topics such as proactive production – simplified operations, green factories with a focus on carbon neutrality, equipment health and smart maintenance, among others.

Source: Socialist Republic of Vietnam

According to experts, the participation and collaboration of the private sector will play a vital role in the implementation of the Vietnamese government’s Power Development Plan VIII with priority to be given to the development of renewable energy.

They also said that the plan is an opportunity for business communities both home and abroad to introduce their expertise and competitive advantages, particularly technology. Specifically, Norwegian energy firms boast strengths in offshore wind power, clean hydro, carbon storage, and liquefied natural gas (LNG).

Deputy Ambassador Mette Møglestue said Norway and Vietnam share a determination to become countries with low carbon by 2050. Energy transition is an inevitable process and all countries on the globe must take efforts to achieve this goal.

Ngo Thuy Quynh, Deputy Director General of Oil, Gas and Coal Department said the Vietnamese Government has always paid attention and set goals for energy development to ensure socio-economic development. The sector has seen strong growth, however it still faces challenges on energy supply and transition.

She shared that success transition to clean energy, greenhouse gas emission reduction, climate change response while ensuring energy security requires great efforts from Vietnam and the support of the international community. Therefore, collaboration between Vietnam and Norway in energy transition, updating clean energy technology measures suitable for the Southeast Asian country’s conditions are essential in the energy transition goal.

The business communities of both sides at the event updated information about the industry such as hiking energy prices, energy security and global warming, among others.

The National Power Development Plan VIII is considered a breakthrough in the energy sector as it shows Vietnam’s determination to gradually eliminate coal-fueled and gas-fired power generation and promote renewable energy to achieve the target of net zero emissions by 2050.

Under the plan for the 2021 – 2030 period with a vision to 2050, only the coal-fired power projects listed in the adjusted Plan VII and those currently under construction will be continued, and there will be no new coal-fired power projects after 2030.

Vietnam targets that by 2050, coal will no longer be used for power generation but biomass and ammoniac instead. Coal-fired power plants aged over 40 years will be closed if they are unable to switch to other fuels.

Meanwhile, renewable energy will receive special priority, expected to account for some 70% of all electricity generation by 2050. Rooftop solar power for self-use will also be facilitated to cover 50% of the roofs of office buildings and civil houses.

To date, almost all Southeast Asian nations have announced net zero emissions pledges, including Laos, Malaysian and Vietnam by 2050; Indonesia by 2060; Thailand by 2065.

Source: Socialist Republic of Vietnam

The opening ceremony was attended by representatives of the Ministry of National Defence, the embassies and military attachés of the ADMM-Plus countries in Vietnam, the ASEAN Secretariat, and 18 delegations of the ADMM-Plus countries (Australia, Brunei, Cambodia, China, India, Indonesia, Laos, Malaysia, Myanmar, New Zealand, the Philippines, the Republic of Korea, Russia, Singapore, Thailand, the US, Vietnam, and Japan).

Addressing the event, Sen. Lt. Gen. Phung Si Tan, Deputy Chief of the General Staff of the Vietnam People’s Army, said the programme drew the participation of nearly 300 experts, trainees, and observers from ADMM-Plus members. It is the last activity of the ADMM-Plus Experts’ Working Group on Peacekeeping Operations Cycle 4 (2021 – 2023) under the co-chairmanship of Vietnam and Japan.

This is the first time Vietnam has hosted such a large-scale multilateral activity on UN peacekeeping operations, helping affirm the country’s role, stature, and contributions to multilateral cooperation mechanisms on UN peacekeeping operations in the region and within the ADMM-Plus framework, he emphasised.

Co-chairing the Experts’ Working Group on Peacekeeping Operations Cycle 4, Col. Nguyen Nhu Canh, Deputy Director of the Vietnam Department of Peacekeeping Operations under the Ministry of National Defence, and Matsuzawa Tomoko, Director for Defence Cooperation in the Indo-Pacific region at the Japanese Ministry of Defence and head of the Japanese experts’ working group, affirmed that the two sides have coordinated closely and obtained targets of the events they jointly organised, including the CEPPP.

The CEPPP closing ceremony is slated for September 21.

Source: Socialist Republic of Vietnam

It is expected to help localities increase productivity and the efficiency of the local agricultural supply chain, strengthen linkage among various economic development models, especially in the private sector while improving the livelihoods of locals.

Kubo Yoshitomo said there is also a collaboration with the Ministry of Natural Resources and Environment to launch activities that support carbon emission reduction in Vietnam, with a focus on water resource management and application of modern technologies to mitigate the impact of climate change and natural disasters.

He expected that these plans will bring about new development opportunities, providing small and micro-sized enterprises with the motivation and confidence to continue their recovery process and propel the economy out of its current challenges.

As of August 2023, Japan has 5,168 active projects with a total registered investment of over 71 billion USD. Japan currently ranks third among 143 countries and territories investing in Vietnam.

Source: Socialist Republic of Vietnam

During the reception, Cai spoke highly of the development of cooperative ties between the two Parties and countries in all fields in the spirit of comprehensive strategic cooperative partnership under the 16-word motto of “friendly neighbourliness, comprehensive cooperation, long-lasting stability and looking towards to the future” and the “four-good” spirit of good neighbours, good friends, good comrades, good partners.

Lam, for his part, said Vietnam is delighted at great achievements that China has attained in recent years, particularly the successful organisation of the 20th National Congress of the CPC in October 2022 and the first session of the 14th National People’s Congress in March 2023.

He said in the near future, the Vietnamese Ministry of Public Security and Chinese security and legal enforcement agencies will actively follow signed agreements and plans, maximise the effectiveness of mechanisms such as ministerial conferences on crime prevention and control, strategic security dialogue at the deputy ministerial level; coordinate effectively in combating transnational crimes such as drug and human trafficking, cyber fraud, and illegal immigration activities.

They will also work closely together to ensure the security and safety of important political events, high-level visits, and the citizens, businesses and representative agencies of each country in the other’s territory. Both sides will protect the legitimate rights and interests of their citizens, offer mutual support in personnel training in areas of their strength, he added.

The same day, Minister Lam together with Chinese State Councillor and Minister of Public Security Wang Xiaohong co-chaired the eighth ministerial conference on crime prevention and control.

Concluding the event, they signed the minutes of the conference and a Memorandum of Understanding on prevention and control of trans-national gambling between the two ministries. On the occasion, Wang presented the Golden Great Wall insignia to Minister Lam.

Also the same day, Minister Lam met with Commander of the People’s Armed Police Wang Chunning who suggested several orientations to bilateral collaboration to ensure social safety and order in each country, as well as contribute to peace and stability in the region and the world. The Vietnamese minister agreed with the host’s proposals, including the facilitation of the exchange of all-level delegations, exploring the signing of cooperation agreements in areas of similar functions to create a legal framework for specific joint activities, sharing information and experience and providing support in training in counter-terrorism, anti-riots, rescue and relief, and ensuring the security of national key works.

Source: Socialist Republic of Vietnam

The robust Vietnam – US relations bring benefits to both nations, the diplomat said, stressing the US want to stand side by side with Vietnam in the latter’s efforts to have a digital economy by 2030, become a high-income nation by 2045, and realise its net-zero target by 2050.

Environmental protection and climate change response will be among key cooperation fields between the two nations, he said, given Vietnam’s bold commitment to creating a greener and cleaner economy.

As the Southeast Asian country has an increasingly important role in the global value chain, the two countries have agreed to step up collaboration across the fields of science-technology, semi-conductor, education, and training of high-tech workforce Vietnam needs to meet the opportunities and challenges of the 21st century, he stressed.

Ambassador Knapper described President Biden’s meetings with Party General Secretary Nguyen Phu Trong, President Vo Van Thuong, Prime Minister Pham Minh Chinh, and Chairman of the National Assembly Vuong Dinh Hue “particularly moving”.

A small ceremony was held following the meeting with Vietnamese top legislator Hue, he said, during which war memorabilia were handed over between the two sides.

“Just a really powerful moment in which you had veterans from both sides meeting in the presence of our President and the presence of the head of the National Assembly. I don’t know, just for me – I mean, my father is a veteran; he fought here too – and so for me personally it was just very moving to see individuals from both sides doing this in the spirit of reconciliation, in the spirit of growing our partnership even more going into the future”, he said.

The US diplomat also recalled the special moment when President Joe Biden and Special Presidential Envoy for Climate John Kerry visit the monument of late Senator John McCain, who had special influence on promoting the Vietnam – US relations, at Truc Bach Lake.

Regarding post-war recovery, the ambassador said the US profoundly grateful for Vietnam’s humanitarian effort, which helped bring home remains of more than 730 US servicemen.

The State visit by President Biden is not only an opportunity for both sides to further efforts to recover the war legacy, which is a pillar in the bilateral cooperation, but also an opportunity to expand cooperation in other fields.

Efforts towards reconciliation and cooperation in high technology do capture the full spectrum and breadth of the Vietnam – US ties, he said, adding both sides are working towards strengthening their friendship, deepening the existing areas of cooperation, and looking for new areas of cooperation.

“Our two countries are moving together into the future. And it was really just an extraordinary visit.”, he said.