Low carbon products in demand despite challenging economic climate

PM Pham Minh Chinh (R) and UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi at the meeting in Hanoi on June 5. (Photo: VNA) Hanoi (VNA) - Prime Minister Pham Minh Chinh received Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi of the United Arab Emirates (UAE) in Hanoi on June 5, calling on the UAE to work closely with the Vietnamese Ministry of Industry and Trade to soon finalise talks on the bilateral Comprehensive Economic Partnership Agreement (CEPA). The host leader hailed the two sides’ efforts to promote negotiations on the CEPA, especially when the two countries are celebrating the 30th founding anniversary of bilateral diplomatic relations in 2023. He affirmed Vietnam’s consistent foreign policy of independence, self-reliance, diversification and multilateralisation of external relations, and being a good friend, trustworthy partner, and responsible member of the international community. The country is also working to develop an … [Read more...] about PM calls for early finalisation of Comprehensive Economic Partnership Agreement with UAE

The fifth plenary session of the 15th National Assembly has discussed and approved a number of important draft bills, including three new amendments to regulations that have significant impacts on the tourism industry in Vietnam. These policies are expected to boost the recovery and development of the tourism sector. Martin Koerner - Chairman EuroCham Vietnam’s Tourism and Hospitality Sector Committee The first law is to extend the visa exemption duration from the current 15 days to 45 days for citizens of countries that currently can travel to Vietnam visa exempt, including France, Germany, Italy, Spain, the UK, Japan, South Korea, Norway, Finland, Denmark, and Sweden. This law aims to attract more tourists from these key markets and encourage them to stay longer and spend more here. The second law is to expand the list of countries eligible for e-visa from 46 to 80, including markets such as India, Brazil, Mexico, and Argentina. The e-visa allows visitors to apply … [Read more...] about The future of tourism in Vietnam new visa policies and beyond

Illustrative image (Photo: laodong.vn) Hanoi (VNA) - Although the aquaculture industry have been facing many challenges, it continues to receive support from the Government, Director in charge of communications of the Vietnam Association of Seafood Exporters and Producers ( VASEP ) Le Hang told Lao dong newspaper. According to Hang, the Prime Minister has demanded the State Bank of Vietnam effectively manage credit operations to ensure the suitable provision of credit capital, and continue to reduce interest rates to support businesses, especially those in aquatic export . The bank has been required to implement supportive and preferential policies, including proposing a credit package worth 10,000 billion VND (over 425.4 million USD) to support businesses operating in forestry and aquatic production and processing industries. Credit programmes should be prioritised for the fisheries sector, towards creating favourable conditions for businesses involved in the … [Read more...] about Government support helps aquaculture industry weather difficulties

The most effective competitive advantage for Vietnam's economy is creating a favorable business investment environment free of legal barriers. Prime Minister Pham Minh Chinh has signed a decree to urge ministries and provinces/cities to boost administrative reforms and improve the investment environment to support local enterprises. Electronics production at Katolec Vietnam in Quang Minh Industrial Park, Hanoi. Photo: Pham Hung/The Hanoi Times "A conducive investment environment is a fundamental platform helping businesses operate smoothly and drive growth. This, in turn, promotes job creation and contributes to overall socio-economic development," said the decree. Vietnam has been trying to cut administrative regulations and compliance costs as part of its national digital transformation effort. As of May 2023, the country's total number of administrative procedures was 6,422, 376 fewer than the same period in 2020. This is expected to improve the … [Read more...] about PM urges greater efforts to accelerate administrative reforms

A view of Nam Cau Kien Eco-Industrial Park in Hai Phong. — VNA/VNS Photo Tran Viet The development of eco-industrial parks is considered an effective solution to contribute to completing the net zero emission target by 2050 in Viet Nam. However, there are still many problems with the mechanism. In a report on the development of industrial parks and economic zones conducted by the Ministry of Planning and Investment, by 2030, 40-50 per cent of localities will have plans to convert existing industrial parks to eco-industrial parks, and 8-10 per cent of localities have orientations to build new ecological industrial parks. This will contribute to the concretisation of the net zero commitment by 2050. However, many experts and businesses believe that it is necessary to have the determination of the businesses to achieve this goal, along with preferential policies and mechanisms. Now, Viet Nam has more than 400 industrial parks, but few of those industrial parks have strategies to … [Read more...] about Eco-industrial park development targets net zero emissions

"The pandemic years are behind us and borders are open as normal," Willie Walsh, head of the International Air Transport Association (IATA), told IATA's annual summit of some 300 carriers. IATA boosted its industry profit forecast to $9.8 billion from $4.7 billion cheered by strong travel demand and an easing in oil prices. Revenue is expected to grow by 9.7% to $803 billion, inching closer to 2019's pre-pandemic level of $838 billion. But slender profit margins of 1.2% mean repairing damaged balance sheets and offering sustainable returns on investments will continue to be a headache for some airlines, Walsh said. He said airlines on average make $2.25 per passenger, "which is less than the price of a cup of coffee, a subway ticket". The profit forecast, raised from one given in December, reflected a boost in Europe, despite a wave of strikes. Airlines have in recent months reported strong results as they prepare for a busy summer season, with travel demand … [Read more...] about Global airlines more than double 2023 profit outlook

The domestic garment and textile sector has been hardest hit in the on-going wave of layoffs due to the economic downturn, according to the Ministry of Labour, Invalids and Social Affairs (MoLisa) report. The Molisa report showed that in the first half of this year, a total of 510,000 people had their job affected. Among those, 280,000 stopped working or were fired, mostly in industrial parks and economic zones in Binh Duong, Dong Nai, HCM City, Bac Ninh, Hai Duong and Hanoi. Roughly 195,039 workers had their working hours cut during the first half of the year. Up to 8,644 companies had to cut their workforce due to the order shortage. The garment and textile industry were hardest hit as up to 68,782 workers stopped their job or were fired. Meanwhile, 66,600 others in this sector had their working hours reduced. It was followed by the electronic component and product sector with 45,075 people and the footwear industry with 31,653 people quitting their work or … [Read more...] about Garment and textile sector hardest hit in layoff wave

Asia’s increased borrowing in recent decades has augmented the region’s exposure to rising interest rates and heightened market volatility, said the International Monetary Fund (IMF). According to the IMF’s latest report on May 25, over 18 per cent of Vietnamese enterprises were found to have an interest coverage ratio (ICR) below one, indicating a high risk of default as of June 2022. Additionally, 18.32 per cent of companies had an ICR between 1-4, making them vulnerable to increased borrowing costs, while 63.36 per cent had an ICR of four, signalling a good debt repayment capacity. The report attributes the heightened risks to the rising cost of borrowing, as central banks tighten monetary policies and increase interest rates to combat inflation. Despite maintaining growth rates, companies face significant pressure due to higher borrowing costs, reducing their ability to repay debts. As of mid-2022, 17 per cent of Asia’s corporate debt was held by firms with interest … [Read more...] about IMF highlights rising debt risks for Asian companies

The northern region of Vietnam is in the midst of a scorching heatwave. A representative from EVN stated that electricity consumption, both nationally and in Hanoi in particular, has steadily increased recently as a result of widespread and prolonged hot weather. According to EVN's statistics, the average daily electricity consumption in the city was 58,336 million kWh in March, 61,542 million kWh in April, and 75,406 million kWh in May. Consequently, average electricity consumption in May increased by more than 22.5 per cent compared to April. Deputy Minister of Industry and Trade (MoIT) Do Thang Hai, speaking on June 3, said, "Some areas currently lack sufficient electricity for production and daily, but the situation will soon be rectified." The power disruption in Hanoi and other areas will only last for a limited duration. According to Hai, hydropower, one of the primary sources of electricity in the north, is being mobilised at a low level due to the lack of sufficient … [Read more...] about Northern Vietnam lacking sufficient electrical power