Closed door vs open door policy

Accelerated government spending is expected to boost demand in the remaining months of the year. ADB’s Principal Country Economist Nguyen Ba Hung shared his thoughts on Vietnam’s economic performance and its prospects for 2023 with The Hanoi Times. ADB’s Principal Country Economist Nguyen Ba Hung. What is the primary obstacle confronting Vietnam's economy for the remainder of the year? In the first half of 2023, Vietnam experienced a slowdown in GDP growth, with growth projected at only 3.7% compared to the positive momentum seen last year, when GDP grew 6.5% in the first half and 9.5% in the second half, resulting in an annual growth rate of 8% for the whole of 2022. One factor contributing to GDP growth in recent years has been public investment's sustained and steady growth. However, significant internal challenges have emerged during the Covid-19 pandemic. Vietnam's economy heavily relies on exports and foreign direct investment (FDI) … [Read more...] about Public investment as catalyst for Vietnam’s economic recovery in 2023: ADB

The opening plenum of the eighth session of the 13th-tenure Party Central Committee in Hanoi on October 2. (Photo: VNA) Hanoi (VNA) – Party General Secretary Nguyen Phu Trong put forth requests for members of the 13th-tenure Party Central Committee while opening the committee’s eighth session in Hanoi on October 2 morning. In his speech, the Party chief stressed that this time’s session, lasting until October 8, will consider and make decisions about many big, complex, and sensitive issues highly important to the fulfillment of the 13th Party Central Committee’s political tasks from now until the end of the tenure. Socio-economic and state budget issues for 2023 - 2024 will be discussed amid the continuation of fast, complicated, unpredictable and unprecedented developments in the world, along with the appearance of more difficulties and challenges, which have negatively and seriously affected the performance of socio-economic tasks and targets. He asked the Party … [Read more...] about Major issues to be debated at eighth session of Party Central Committee

Do Thanh Trung, Deputy Minister of Planning and Investment Although SOEs account for a small proportion of the economy, they hold significant resources for the nation’s socioeconomic development, playing a core and vital role in building and safeguarding our homeland in a new context. The significant growth of SOEs contributes to socioeconomic development and serves as an effective tool for macroeconomic regulation, price stabilisation, social security, national security, and sovereignty, especially in border and island areas. SOEs are vital in building and developing essential economic infrastructure and leading industries to drive economic growth, especially in a context where the private sector has not yet fully grown and lacks the capability to perform better. Despite the positive results achieved, the activities of SOEs, especially investment activities, still have some existing limitations. Firstly, SOEs are slow to adapt to the new era, and their roles in … [Read more...] about Defining SOE priorities vital

Lower-than-expected growth in advanced economies and China could reduce external demand for Vietnamese exports. Vietnam's economic growth for 2023 is set to hit 4.7%, primarily influenced by weak domestic and external demand . Production of aircraft components at MHI Aerospace Vietnam. Photo: Pham Hung/The Hanoi Times The World Bank released the forecast in its latest East Asia and Pacific October 2023 Economic Update. However, there's optimism for a recovery in the following years, with growth expected to reach 5.5% in 2024 and 6.0% in 2025. The main driver of this growth will be domestic demand, although at a slower pace than in previous years. In terms of inflation, the Consumer Price Index (CPI) is projected to average 3.5% this year, largely due to scheduled increases in civil servant salaries. In the following years, assuming stable energy and commodity prices, inflation is expected to decline to 3.0% in both 2024 and 2025. On the fiscal side, … [Read more...] about Vietnam’s GDP growth forecast to expand by 4.7% in 2023: WB

The event was jointly organized by the National Children's Hospital (NCH), the Vietnam Pediatrics Association (VPA), the Vietnam Nutrition Association, the Japan International Cooperation Agency (JICA), Asahi Group Foods JSC and the Japanese Embassy in Vietnam. It offered a venue for policy makers, nutrition experts, and scientists from Vietnam and Japan to provide more scientific and practical grounds to improve malnutrition in Vietnamese children. The workshop was also part of activities celebrating the 50th founding anniversary of the Vietnam - Japan diplomatic ties, thus tightening the friendship through cooperation in terms of healthcare and scientific research. In his opening speech, Assoc. Prof., Dr. Tran Minh Dien, President of the VPA and Director of NCH emphasized the important role played by nutrition in children's development. He mentioned policy efforts related to health care and nutrition for children made by the Government and the Ministry of Health, as well as … [Read more...] about Vietnam – Japan workshop seeks to improve nutrition among mothers, children

How can the logistics industry adopt global best practices offered by SLP? SLP is part of GLP, a global entity engaged in the creation, ownership, development, and operation of logistics real estate, spanning 17 countries across the globe. We emphasise the continuous pursuit of learning and investment to foster growth and enhance the efficiency of the logistics industry. Edwin Chee, COO of SLP Vietnam SLP excels in providing modern pre-built logistics facilities strategically positioned at key hubs. These state-of-the-art facilities, designed to meet the specific demands of various industry from manufacturing to retail and e-commerce enterprises, adhere to high standards and offer adaptable layouts that can expand as needed, optimising supply chain efficiency and seamless goods circulation. Furthermore, SLP’s commitment to custom-tailored solutions ensures that each tenant’s unique operational needs are met through facilities custom-designed and constructed to … [Read more...] about Applying global practices to Vietnam

Ba Huan has pioneered the application of FPT's modern and comprehensive digital technology system to transform its purely agricultural model. Thanks to this digital transformation, Ba Huan is aiming to keep pace with development trends globally and become a leading food solution provider in Vietnam. The digital transformation platform, developed by FPT applications with an SAP core system, is designed to help Ba Huan's board of directors manage in real-time and create a seamless management process with strict oversight over every stage. FPT's successful deployment of its closed management feed-farm-food system for Ba Huan includes the in-depth RISE with SAP solution set for the agricultural industry, with three sets of packaging solutions on the SAP platform, and three made by FPT applications. They are being applied across the entire Ba Huan network, including at its headquarters, factories, and subsidiaries located in Ho Chi Minh City, Binh Duong, Long An, and Hanoi. … [Read more...] about Ba Huan runs on real-time data thanks to SAP and FPT

There are currently around 300 green buildings certified by standards such as Lotus, Edge, LEED, or Green Mark, Photo: shutterstock According to Douglas Lee Snyder, executive director of the Vietnam Green Building Council, from a legal perspective, realising both financial and non-financial incentives in Vietnam is a challenge. “Maybe we need to make inter-ministerial cooperation efforts to achieve the goals set by the government of Vietnam. For example, while public green buildings often lead the market in other countries, in Vietnam, cost norms per square metre regulated by the Ministry of Finance alone are not enough for one construction, but it needs collaboration from other related ministries,” Snyder told VIR. Meanwhile, Angus Liew, chairman of Gamuda Land Vietnam, said that the barriers involve technology, equipment, and even perceptions. “In addition, Vietnam’s government has become well aware of the repercussions and understands the importance of transforming its … [Read more...] about Task obvious for Vietnam’s green building development

Vinacomin cleared its short-term loan balances by the end of last year For the first half of this year, the group (Vinacomin) reportedly produced 20 million tonnes of raw coal, 25 million tonnes of commercial clean coal, and unloaded 64 million cubic metres of rock and soil, consuming 25.3 million tonnes of coal. In the same period, the group provided more than 21 million tonnes of coal for electricity production, reaching 55 per cent of the plan; increased by 16 per cent, equivalent to an increase of 3 million tonnes compared to the same period in 2022. The first 6-month revenue of the group is estimated to have reached nearly $3.7 billion. With contracts signed for the rest of the year, the amount of coal supplied is about 18.75 million tonnes and the whole year is expected to reach 39.7 million tonnes, an increase of about 1.2 million tonnes compared to the previous year. This is mainly due to the increase in volume of build-operate-transfer thermal power plants and … [Read more...] about Vinacomin navigating to ensure efficiency

The EU official began implementing the transition period of the Carbon Border Adjustment Mechanism ( CBAM ) from October 1. As a result, iron and steel, cement, and fertiliser manufacturers in Vietnam are required to report total verified greenhouse gas (GHG) emissions embedded in goods exported to the EU. At an event on green steel production at the end of September, Nghiem Xuan Da, chairman of the Vietnam Steel Association, said that the country is taking the first steps to build a carbon-neutral roadmap for the steel industry. "Towards 2025, the steel industry aims to reduce GHG emissions by 10-30 per cent by optimising processes, energy, raw materials, and technology. In 2025-2030, the industry will use low-carbon materials and increase the amount of hydrogen gas in steel factories by 30 per cent," Da explained. Despite the ambition to reduce GHG emissions, the CBAM will pose a major challenge for Vietnamese steel exporters, according to Da. In the first six months of 2023, … [Read more...] about CBAM heralds new journey for sustainable energy use