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| Loading containers at Cai Mep port in Ba Ria-Vung Tau province (Photo: VNA) |
Vietnam saw gross domestic product growth of 5.1% in 2023, which is forecast to rise 6–6.5% in 2024, making Vietnam one of the strongest growth environments in Southeast Asia, the article noted.
The article quoted Khanh Vu, Deputy Managing Director at VinaCapital Fund Management as saying that the pick-up in GDP growth will be driven by rising exports and manufacturing, tourism, and a modest recovery in domestic consumption and consumer sentiment. Economic growth has also been supported by a favourable interest rate environment, he added.
Helmi Arman, economist at Citi, a US-based financial service company, said that after a freeze in early 2023, activity in the real estate sector has picked up in the second half of the year. The government is pushing through structural reforms that lay the foundation for a more sustainable recovery in the real estate sector.
The article underlined that for international investors, Vietnam’s manufacturing sector remains the most appealing, specifically in the smartphone supply chain and for consumer electronics. For domestic investors, garment, footwear, and furniture exports are gaining the most interest.
Both Vu and Kenglin Tan, senior portfolio manager, equities at Manulife Investment Management, showed optimism about Vietnam’s export prospects thanks to signs of stabilisation.
There was some trepidation that Vietnam’s decision to implement the global minimum tax rate would impact investment flows, but this has not transpired, Tan said, adding that from a foreign investor perspective, whether they invest in Vietnam or other countries in the agreement like Mexico or Thailand, they are impacted by the same policy. It can be seen from FDI flows in December 2023 after the policy was announced, that investors have not been deterred at all, she underscored.
There has also been a surge in interest in the FDI space. Vu noted that the Republic of Korea has pledged its support in investing in Vietnam, stating plans to exceed 100 billion USD in total investment by 2025. To date, the country has invested 84 billion USD into Vietnam. The focus is on manufacturing, with 62 billion USD invested into more than 4,600 projects, with large manufacturers including Samsung, LG and SK. A major project benefiting from FDI support is Long Thanh International Airport, being constructed close to Ho Chi Minh City, the expert stated, underlining that FDI support for the project has come from the US, Japan, France, Turkey, and the Netherlands.
To further extend the potential for international investment, Vietnam is opening up its stock market settlements by allowing domestic brokers to vouch for foreign investors, enabling them to purchase shares. Arman says allowing greater levels of foreign ownership could mitigate against future shocks.
In the field of tourism, the experts noted that the sector is at 70% of pre-COVID-19 levels, but domestic tourism is booming. Chinese tourists were 30% of their pre-COVID-19 levels last year.
The article cited a report from data company Vietnam Report JSC finding 66% of respondents in the tourism and hotel sector expressing confidence for 2024. Of the respondents, 93% stated the new visa rules would be a lever for the country’s tourism growth trajectory, according to the report.
Quang Ninh’s beauty introduced to Clipper Round World Yacht Race’s sailing teams
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| The Vietnamese sailing team named "Ha Long Bay, Viet Nam" (Photo: baoquangninh.vn) |
Members of sailing teams competing in the 2023-2024 Clipper Round the World Yacht Race, have joined numerous sightseeing activities and cultural exchanges in Ha Long Bay of Quang Ninh province after docking at Ha Long International Cruise Port on February 18-19, reported Vietnam News Agency.
Addressing a ceremony to welcome members on February 21, Vice Director of the provincial Department of Tourism Nguyen Thuy Yen said the Clipper Race is a special event, offering an opportunity for the locality to promote the image of Ha Long Bay and local destinations.
Quang Ninh is famous for its unique nature and culture and friendly people, and Ha Long Bay – a UNESCO-recognised World Natural Heritage, she said.
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| Leaders of Quang Ninh province and members of the Vietnamese sailing team pose for a group. (Photo: VNA) |
Yen expressed her hope that ship crews will experience wonderful moments in Ha Long, thus introducing the beauty of Ha Long to places they visit.
Through this race, Quang Ninh wishes to introduce and promote its tourism potential and destinations, as well as opportunities and investment projects in the province to potential investors, she added.
The Clipper Race was first organised in 1996 in the UK. Since then, almost 6,000 race crew from diverse backgrounds representing more than 60 nations have undergone training and taken part in the competition.
The race, drawing nearly 400 sailors aboard 11 sailing yachts, is divided into eight legs and 16 separate races, including six ocean crossings. They can choose to either complete the full circumnavigation or opt for one or multiple legs.
Ha Long Bay is on the fifth leg within the Asia-Pacific Challenge where sailors will take part in the race and different activities during the 10-day event. Before arriving at the Vietnamese destination, the boats departed from Coral Sea Marina Resort (Airlie Beach in Whitsunday, Australia's Queensland state).
As scheduled, the boats will leave Ha Long Bay on March 2, continuing their journey to Jiuzhou Port (Zhuhai city in China’s Guangdong province).
RoK's firm penetrates LPG market in Vietnam
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| RoK's E1 and Vietnam's Venus Gas plan to build an LPG terminal in Bac Tien Phong industrial complex in Quang Ninh (Photo:e1.co.kr) |
E1, an importer and distributor of liquefied petroleum gas (LPG) under the Republic of Korea’s LS Group. announced on February 21 that it has signed a joint contract with Venus Gas, the largest LPG importer in northern Vietnam, to build an LPG terminal in Bac Tien Phong industrial complex in Vietnam's northern coastal province of Quang Ninh, reported Vietnam News Agency.
The facility will have a capacity of 50,000 tonnes of propane and 30,000 tonnes of butane. Construction on the project is expected to kick off in the first half of this year for the warehouse to be put into operate commercially in 2025. E1 plans to supply more than 1 million tonnes of LPG annually to the Vietnamese market.
Previously, the Korean company bought 50% stake of Yen Hung Petrochemical Joint Venture in September 2022 to prepare for the construction of the Bac Tien Phong LPG gas storage facility.
E1 has also announced a decision to grant a new debt guarantee worth about 256.7 billion KRW (over 192.3 million USD) to Yen Hung Petrochemical Joint Stock Company. This equates to 16.99% of equity. Debt guarantee facilitates the raising of capital by allowing the parent company to assist when the subsidiary encounters difficulties in repaying debts.
Recently, the Vietnamese government has announced plans to expand crude oil and petroleum product storage capacity nationwide to stabilise commercial oil infrastructure. This is expected to increase the demand for LPG imports.
An executive from E1 said that the Southeast Asia region has a huge demand for LPG but it lacks large-scale storage terminals. Therefore, E1 will apply its expertise and know-how accumulated in its four decades of experience to carry out this project.
Hanoi helps over 500 businesses join overseas distribution networks
The Hanoi People’s Committee has just planned to implement the project of promoting Vietnamese enterprises to directly participate in foreign distribution networks until 2030.
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| Promoting businesses to directly participate in foreign distribution networks. Photo: hanoimoi.vn |
The project focuses on developing export and import markets, ensuring long-term sustainable growth.
Accordingly, in 2024, the city will support market information for more than 500 businesses; support training and consulting for more than 100 businesses to improve their competitiveness and supply capacity to gradually participate in the global value chain; support over 100 businesses to build capacity to participate in cross-border e-commerce; organize more than 100 connections and transactions with foreign distribution networks; and support more than 80 products for direct export to foreign distribution networks.
The city People’s Committee will synchronously implement 8 groups of tasks and solutions. In particular, seminars will be organized to connect trade between manufacturing and exporting enterprises and foreign distributors. It will organize the Vietnamese Goods Week Program at foreign distribution networks; and help domestic businesses bring goods to display and introduce at Vietnamese Goods Week programs.
The city will actively send manufacturing and export businesses to survey markets in other countries to grasp market requirements and deal with distributors.
At the same time, the city will organize communication activities about the benefits of participating in the project, contributing to changing awareness and improving businesses' understanding of the model of direct participation in foreign distribution networks.
In addition, the city also researches and builds policy mechanisms to encourage Hanoi businesses to proactively develop distribution systems in foreign markets./.