Henig: Swiss daily: Vietnam becomes a new destination for foreign companies
13:15 | 25/02/2023
Swiss daily Tribune de Gèneve has recently published an article hailing Vietnam as a new destination for foreign companies.
The article said two-way trade between Switzerland and Vietnam hit about 3.2 billion USD in 2020. Switzerland is well-positioned to leverage advantages brought about by the Vietnamese economy.
Hundreds of Swiss companies have been among the most important European investors present in Vietnam. In particular, the Swiss industrial equipment sector should fully tap the growing trend of “Made in Vietnam” products.
According to the article, the industrial boom in Vietnam could be clearly felt when entering the Van Trung Industrial Park, which is an hour’s drive to the north of Hanoi. Early in the morning, many people were lining up in front of recruitment office of Foxconn – the most famous subcontractor for Apple. In front of a large dormitory for workers, there is also a large poster with a notice that Foxconn is recruiting 10,000 employees with favourable working conditions.
Foxconn is not the only factory hiring a large number of workers. Not far away, LuxShare, a competitor, is announcing that it will recruit 13,000 new employees. An automobile supplier is seeking 700 eligible positions while a solar panel manufacturer is announcing the recruitment of 6,000 positions.
Large industrial zones are being built and taken over by advanced electronics manufacturers, said the article.
The Republic of Korea’s electronics conglomerate Samsung inaugurated a brand new research and development centre in Hanoi in December 2022. It also plans to invest around 3.2 billion USD to produce semiconductors in a neighbouring province. The US’s semiconductor equipment company Amkor Technology will soon open a factory near the airport. And Pegatron of Taiwan (China) that produces components for electric carmaker Tesla and assembles iPhones, has recently begun operations near Ha Long Bay.
The article attributed Vietnam’s above-said attraction to various factors such as a stable investment environment, 15 free trade agreements, including one signed in 2020 with the European Union (EU), helping Vietnam become a hub of industrial production at affordable costs.
Vietnam is being rated by foreign investors as a top priority for investment. Therefore, the country will continue to witness the emergence of super factories in the future, it concluded.
Source: VNA LINK
Henig: Falling interest rates facilitate production and business sectors
06:05 | 25/02/2023
Many banks have just launched credit packages with preferential lending interest rates that decreased by between 0.5-3% per year for customers in the fields of business and production, including real estate.
Most recently, the Vietnam Bank for Agriculture and Rural Development (Agribank), one of the largest banks in Vietnam, announced that as of January 31, the interest rates for real estate business is likely to be reduced by up to 3% per year from the interest rates that are being applied. The adjusted interest rates will be applied from January 31, 2023 to December 31, 2014.
Agribank said it will also spend more than 100 trillion VND in 2023 on preferential loans for businesses, import – export firms, and those operating in the healthcare and education sectors; and reduce interest rates for enterprises meeting difficulties in production and business.
Previously, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Joint Stock Commercial Bank for Industry and Trade (VietinBank) also launched incentive credit packages to support business and production firms.
The wave of reducing lending interest rates has been also recorded in many other commercial banks such the Viet Capital Commercial Joint Stock Bank (Viet Capital Bank), Orient Commercial Joint Stock Bank (OCB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), and Southeast Asia Commercial Joint Stock Bank (SeABank).
According to Nguyen Huu Trung, Acting General Director of the Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank), the capital demand of businesses still remains high, so banks need to have appropriate policies to support their customers.
Banks continued to lower deposit interest rates early this month, thus cutting lending rates in general, and those for the real estate sector in particular.
According to a report of Bao Viet Securities (BVSC), the deposit interest rates have showed signs of dropping since late January 2023, raising the hope of a fall in lending rates.
Source: VNA LINK
Henig: Vietnam to have 16 more railway lines by 2030
08:00 | 25/02/2023
Vietnam’s railway network planning expects to have 16 new national lines with a total length of about 4,802km by 2030.
According to the Ministry of Transport, the planning for 2021-2030 will also upgrade seven existing lines, whose total length amounts to 2,440km.
By 2050, the number of new rail lines will be 25, which together are 6,354km long.
The completely upgraded and expanded network following the planning will connect strategic economic areas and corridors, urban centres, international sea ports, border gates, and airports nationwide, said a leader of the ministry.
Rail transport boasts several advantages. It requires less land areas, leaves little impact on the environment, and carries a large amount of goods and passengers. It is also fast, safe, and low cost.
However, the railway investment budget is enormous, while the State budget resources are limited. Due to the low financial efficiency of railway investment, it is difficult for the sector to attract capital from society.
Source: VNA LINK
HCM City gains considerable achievements in sci-tech development
06:30 | 25/02/2023
Ho Chi Minh City has recorded significant achievements in scientific and technology between 2012 and 2021, greatly contributing to the local economy, the municipal Party Committee said.
The HCM City Party Committee held a conference on February 16 to review the 10-year implementation of the 11th-tenure Party Central Committee’s Resolution 20-NQ/TW, issued on November 1, 2012 on the development of science and technology toward international integration. The resolution was issued in service of industrialisation and modernisation amid the socialist-oriented market economy.
It reported that over the last 10 years, the southern metropolis has strongly applied science and technology to public administration, especially using information technology in public services. The technological level of industrial production businesses has also been improved gradually.
The general speed of technological and equipment reform in the city was about 18.85% annually during 2016 – 2020, an increase from the 15% before 2016. Meanwhile, total spending on machinery and equipment averaged 20.6 trillion VND (870.3 million USD at the current exchange rate) each year.
This could be seen in the high total factor productivity (TFP), 35.62% on average, with science and technology contributing to 74% of the TFP growth. Between 2011 and 2021, the social labour productivity in HCM City was 2.7 times higher and the productivity growth was 1.7 times higher than the nationwide figures.
However, Vice Secretary of the municipal Party Committee Nguyen Ho Hai pointed out that there remain many challenges to the development of science and technology, which has yet to meet socio-economic development and urban management demand or truly become momentum toward development.
Deputy Minister of Science and Technology Le Xuan Dinh said HCM City is home to thousands of startups that account for about half of the total in Vietnam. Meanwhile, total investment in science, technology and innovation needs to make up at least 2% of the local GRDP, but it is hard for the state budget to cover the rate.
Therefore, HCM City should pay attention to attracting investment from venture funds to startups and innovation, he suggested.
The municipal Party Committee said in the coming time, HCM City will focus on reforming the system of science and technology organisations, and enhance connectivity with businesses in developing and reforming technology. They will also work to train manpower, offer preferential treatment to attract science and technology personnel. The committee plans to expand cooperation with international partners, and attract overseas Vietnamese scientists and technological experts.
Source: VNA LINK