An impressively successful event

Receiving the movement of FDI inflow

May 11, 2020 by en.nhandan.org.vn

According to the Ministry of Planning and Investment (MPI), newly registered capital, supplemented capital and capital contributions of foreign investors in the first four months of 2020 reached a total of US$12.33 billion, equivalent to 84.5% of the figure for the same period in 2019.

The decrease in FDI pledges in the four-month period was also less than the decrease in the three-month period. This is an indication that the decline of FDI inflow will soon end and it is expected to increase sharply in the near future.

According to economic experts, Vietnam’s successful control of the COVID-19 pandemic will be the driving force to lure FDI inflow into Vietnam in the near future. Not only FDI, Vietnam has the opportunity to attract investors who wish to relocate their projects.

American, Japanese, and European enterprises who intended to move their production out of China due to increasing labour prices and the impacts of the US-China trade war will accelerate this process amid the pressure from the COVID-19 pandemic. Moreover, the transition process will also receive support from their own countries.

Specifically, Japan will spend approximately US$2.2 billion to support Japanese enterprises in relocating their factories to Japan or to diversify production facilities by moving to the Southeast Asia region.

According to Dr. Nguyen Dinh Cung, a member of the Prime Minister’s Economic Advisory Group, before the outbreak of the COVID-19 pandemic, the shift of production chains out of China appeared mainly due to the need to diversify the supply chain and to reduce risks of over-reliance on a single market, the increasing labour costs in China and especially the effect of the US-China trade war.

Amid the development of the pandemic, the trend has become more visible. The production in China has been recovering but production and transportation costs have become more expensive. The COVID-19 pandemic has promoted the shift of investment out of China, the restructuring of the value chain and the trend of bringing production closer to the consumer market.

When the US-China trade war began, Vietnam was forecast to be an attractive location for many foreign investors that may receive a wave of investment movement from China. However, Vietnam has yet to see benefits as expected.

Dr. Nguyen Dinh Cung said that, from the perspective of globalisation, where has better financial efficiency and cheaper costs will attract more investment capital. China became the “factory of the world” because it met the conditions of investors. It means that if Vietnam wants to attract production chains, it needs to meet the above conditions, and even exceed them.

Regarding industry, it is necessary to revise the industrialisation strategy with specific plans for the 2021-2030 period, with a vision to 2045, including solutions to help Vietnamese enterprises to participate in the global supply chain.

The “2019 Supplier Day” event, held for the first time by the US Agency for International Development (USAID) and the American Chamber of Commerce (Amcham) in Hanoi on April 25, 2019, attracted more than 60 Vietnamese suppliers and more than 300 businessmen, including representatives from large US enterprises. The event marked an important development step in the quality and scale of the programme on connecting global value chains in Vietnam.

According to US enterprises, Vietnam is one of the fastest growing economies in the world, particularly in the past two decades. American businesses have looked forward to doing business with Vietnam businesses, helping Vietnamese businesses to participate in global value chains. This was also the clearest evidence of the attractiveness of the Vietnamese market and the most specific opportunity that Vietnamese businesses need to seize.

In fact, there is a wave of enterprises moving away from China and looking to Vietnam, but about 90% of Vietnamese enterprises are currently not ready to provide services for international businesses.

On the other hand, Vietnam needs to have young and high-quality human resources. But Vietnam currently has an aging population and the supply of labour will only be able to meet the demand of the manufacturing and assembly industries in the next 10 years. This is a problem that Vietnam should have a solution for in the near future.

According to Dr. Tran Toan Thang from the National Centre for Socio-Economic Information and Forecast (Ministry of Planning and Investment), FDI attraction is very important but keeping investors, especially large enterprises, is more important. Incentives regarding tax, land, natural resources, and cheap labour can only attract foreign investors but it is difficult to keep them.

If Vietnam wants to keep foreign investors, besides open and transparent business environment, modern and synchronous transport infrastructure, and stable law systems, the country must have high-quality human resources, a large enough domestic market and a system of domestic enterprises capable of providing supporting industry products for FDI enterprises.

Hùng Kings Festival 2021 to exclude festivities

February 25, 2021 by vietnamnews.vn

Visitors to the Hùng Temple Relic are asked to wear masks and keep their distance from others. — VNA/VNS Photo Trung Kiên

HÀ NỘI — The Hùng Kings Festival, which pays tribute to the founders and first kings of the nation, will be held similarly to last year, with ceremonial activities but no festivities.

The plans for the national major festival were decided at a meeting of the People’s Committee of the northern province of Phú Thọ where it is held annually.

The ceremonies will be conducted with the death anniversary of the great father of the nation Lạc Long Quân and the incense offering to commemorate great mother of the nation Âu Cơ on April 17 and incense offering ceremony to commemorate the Hùng Kings and the flower offering ceremony on April 21.

Speaking at the meeting, vice chairman of the Provincial People’s Committee Hồ Đại Dũng said the event would take place in a respectful atmosphere, while strictly abiding by measures to prevent COVID-19 from spreading under the guidance of the Ministry of Health.

This is the second year the Hùng Kings Festival will include only ceremonial activities and no festivities.

According to Lê Trường Giang, director of the Hùng Kings Temple Relic Management Board, the temple received more than 20,000 visitors on the occasion of Tết (Lunar New Year).

“The measures to prevent the spread of the COVID-19 pandemic have been taken seriously at the historical site. At the same time, the visitors’ awareness has been much improved this year,” he said.

The Hùng Kings Temple Relic Complex covers more than 1,000ha, more than half of which is forest. The complex is scattered with dozens of temples dedicated to the legendary kings.

There are some 300 temples dedicated to the Hùng Kings and other figures from the Hồng Bàng dynasty (2879 to 258 BC) in Phú Thọ, and nearly 1,500 sites dedicated to the kings throughout the country.

UNESCO placed the “Worship of Hùng kings in Phú Thọ” on the Representative List of the Intangible Cultural Heritage of Humanity on December 6, 2012,

The Hùng Kings Festival is held annually from the 8th to the 11th day of the third lunar month, which falls on April 19 to April 22 this year, as a tribute to the Hùng Kings who are credited with establishing the nation.

The main festival day, which is also a public holiday in Việt Nam, is on the 10th day or April 21. — VNS

Vietnam concerned about use of force in international relations

February 25, 2021 by en.vietnamplus.vn

Ambassador Dang Dinh Quy , Permanent Representative of Vietnam to the UN (Photo: VNA)

New York (VNA) – Vietnam is concerned about cases of using or threatening to use force in international relations, which go against the UN Charter and harm international peace and security, Ambassador Dang Dinh Quy, Permanent Representative of Vietnam to the UN, has said.

Quy was addressing an UN Security Council (UNSC)’s videoconference Arria-formula meeting on February 24 themed “Upholding the collective security system of the UN Charter: the use of force in international law, non-state actors and legitimate self-defense” with the participants of nearly 30 member countries of the UN Security Council and the UN.

He stressed that all countries are obliged to build friendship relations and form a culture of upholding the UN Charter and international law as well as abiding by principles in sovereignty and territorial integrity, not interfering into internal affairs of other states, not using or threatening to use force, and dealing with disputes peacefully.

The diplomat said that the UNSC should work to enhance the observance of international law and promote the role of international law and UN Charter as a vital tool in maintaining international peace and security, while increasing its coordination with regional organisations and international legal agencies in coping with disputes, maintaining peace and preventing conflicts.

He underlined the need to avoid the abuse and re-explanation of the UN Charter, suggesting the UNSC continue to creating favourable conditions for countries to get access to affairs and documents of the council to promote open and transparent discussions in the field.

Noting that this topic has been mostly discussed among scholars, Naz Modirzadeh, Director of the Harvard Law School Programme on International Law and Armed Conflict, said that all countries are authorised and responsible in building international law, including the responsibility in protecting the principle of not using force.

She proposed that all countries should actively engage in open discussions on the theory of the rights to self-defence and improve the capacity to get access to announcements and discussions at the UNSC in the field.

Participants at the event underlined the principle of not using or threatening to use force, which is a foundation for the collective security system in line with the UN Charter and the UNSC’s function in maintaining international peace and security.

They affirmed that the only exception is the case that is allowed by the UNSC or to implement the right to self-defence. They called for the upholding of the UN Charter in maintaining international peace and stability, while exchanging ideas on the explanation and application of Article 51 of the UN Charter on the legal basis for the use of force as a means of self-defence, as well as on the situation in specific countries and regions./.

VNA

MoIT sets export growth target of up to 5% despite COVID-19 challenges

February 25, 2021 by vov.vn

Between the beginning of the year and mid-February, the country’s export turnover recorded an impressive surge of 36% to US$38 billion compared to the same period from last year, while imports also increased by approximately 25%, according to the Ministry of Industry and Trade (MoIT).

Hai emphasized that this year’s export target of between 4% and 5% remains reasonable due to the COVID-19 pandemic not being brought under complete control across the world, especially in major Vietnamese export markets.

Following the signing of three FTAs, including the EU-Vietnam Free Trade Agreement (EVFTA), the Regional Comprehensive Economic Partnership (RCEP), and the UK-Vietnam Free Trade Agreement (UKVFTA), they are anticipated to give fresh impetus to the nation’s import and export activities.

After coming into force last year, each of the FTAs, especially the EVFTA and RCEP, represent large-scale agreements that the nation can benefit from, Hai noted.

He elaborated that when the EVFTA first came into effect on August 1, 2020, the number of certificate of origin (C/O) forms of EUR.1 for Vietnamese exports to the EU market increased dramatically. The move indicates that local businesses have immediately maximised the benefits brought about by the trade pact.

Furthermore, despite the range of adverse impacts caused by the COVID-19 pandemic on the EU market last year, Vietnamese exports to the fastidious market witnessed robust growth in terms of traditional goods and new commodity groups, especially wooden products.

Hai therefore pointed out that with these agreements being implemented in a comprehensive manner and the pandemic gradually being brought under control, Vietnamese production and export activities will witness stronger growth moving forward.

US companies continue to see tremendous investment opportunities in Vietnam

July 11, 2020 by hanoitimes.vn

The Hanoitimes – On the occasion of the 25th anniversary of the US-Vietnam diplomatic relations, US companies shared with Hanoitimes their expectations about opportunities for their investment expansions in Vietnam.

Dr. Mason Cobb, chairman of Victoria Healthcare International Clinics

After Vietnam achieved the middle income status and ODA decreased, the Vietnamese government became more accommodating for investment and that continues to this day.

Dr. Mason Cobb, chairman of Victoria Healthcare International Clinics

However, it is still not a truly level playing field with local companies. The attitude and perception, and spirit of cooperation has become much warmer and more understanding than during that difficult middle period.

More importantly, the company’s mission in healthcare as primarily helping Vietnam build a world-class healthcare system. To that end, the company brings Vietnamese to the US and bring educational and other assets to Vietnam to help increase understanding and skills.

AmCham Healthcare Committee Mission has stated: “We are a key strategic partner for promoting health and wellness and shaping the healthcare industry in Vietnam.”

Regarding the healthcare sector, I think there are still regulatory hurdles that could dampen investment atmosphere. For example, the Ministry of Health has proposed that all foreign doctors must speak fluent Vietnamese. In effect, there would be an exodus of international healthcare and its standards. This will inhibit achieving a truly international standard for healthcare here by essentially expelling international influences.

Vietnam is quite unique in its “healthcare consumer”: several attempts from highly developed countries have floundered for not understanding the Vietnamese patient’s unique perceptions. In the best of conditions this must be carefully considered by foreign healthcare investors.

Vietnam has shown itself to be best in the world at handling the Covid-19 pandemic. This has spawned a motivation to make the Vietnamese healthcare system world-class. Individual patient healthcare is quite different, however, and Vietnam will at once be both motivated but headstrong with a tendency to both court foreign investment and discount their contribution.

In fact, continuing a cooperative and supportive relationship with the international medical community is the shortest and surest path to the goal of world-class healthcare.

Decreasing the regulatory burden and reinforcing fair application of rules. Easy access to decision makers in the Vietnamese government is also key.

We will continue to grow and develop our reach and technical skills. We will also invest in human capital with input from the US. We can really contribute to healthcare in Vietnam through a more integrated system, incorporating retail pharmacy, insurance, education, and patient care as a seamless system that is both very efficient and patient-friendly.

Nguyen Ba Luan, country president of Cargill Vietnam

The Vietnamese government should be commended for transforming the country over many years from a centrally planned into a market economy. This transformation has dramatically increased US foreign investment in Vietnam.

Nguyen Ba Luan, country president of Cargill Vietnam

The approach by the Vietnamese government to attract foreign investment and encourage open and free global trade has benefitted the Vietnamese economy and its agricultural and food sector. It has enabled more foreign investment and Cargill has invested heavily in Vietnam since 1995, after the significant event of the normalization of the diplomatic relationship between Vietnam and the US.

The transformation of Vietnam economy by the government has enabled Cargill to grow its business significantly in the country over the past 25 years and now has over 1,500 employees working across 23 locations. Cargill remains committed to conducting its business in the country with the highest level of integrity, accountability and responsibility.

US companies in Vietnam, who can demonstrate social tangible benefits by not only growing the Vietnamese economy but have a strong local Corporate Social Responsibility program improve the relationship between the two countries.

Cargill also enhanced diplomacy between the two countries by acting as a conduction between the US and Vietnam agricultural and food sector by bringing best practices to the Vietnamese sector and working through two-way trade issues as they arise.

While the Vietnamese government is to be congratulated for its on-going efforts in attracting foreign investment, further supporting incentives in the form of tax schemes will encourage more foreign investment.

Further reform of its legal framework relating to business and foreign investment is encouraged and the continuation of aligning the country with international food, export and import standards and practices will give US companies more confidence to grow and invest in Vietnam.

The continuation of building an advanced and integrated transport infrastructure will not only greatly improve the Vietnamese economy but will attract further investment from US companies especially in the Food & Agricultural sector.

Further alignment of policies with international standards, expansion of tax investment schemes and improvements to legal business framework and regulations and policies will go a long way in making Vietnam a for attractive destination for US companies looking to invest.

Also, continuation of dialogue between the Vietnamese government and US companies in Vietnam on policy reform, global best practices and any regulation, legal or policy obstacles will continue to attract further foreign investment by US companies.

Vietnam is important to Cargill globally. We continue to see tremendous opportunity in Vietnam and we intend to keep investing in and growing our business here, both in terms of capacity and capabilities, talents and communities as we fulfill our purpose of nourishing the world.

PAN congratulates doctors on Vietnamese Doctors’ Day

February 25, 2021 by en.qdnd.vn

The units were Vietnam Military Medical University, Military Hospital 103, Le Huu Trac National Institute of Burns under the Military Medical University, Military Institute of Traditional Medicine, and the Military Institute of Medical Radiology and Oncology (Military Medicine Department under the General Department of Logistics).

During the visits, Senior Colonel Tuan congratulated the troops, doctors, and medical staff of these units on the Vietnamese Doctors’ Day, applauding that they have fulfilled their assigned missions, especially in COVID-19 prevention and control, contributing to raising troops’ and people’s health.

He also hoped that in the coming time, the units would promote coordination with the PAN in dissemination work, contributing to raising the quality of healthcare as well as promoting the beautiful images of Uncle Ho’s soldiers.

These are some images during the event.

Translated by Khanh Ngan