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Pham Hong Quat, director general, NATEC and Leon Cai, regional director (Ho Chi Minh City), Enterprise Singapore

The Vietnamese agency (NATEC) and Enterprise Singapore (ESG) have renewed their cooperation for another two years. What will be the focuses in the next stage? How will it benefit the innovation landscape for Singapore and Vietnam?

Pham Hong Quat: Singapore is considered to be the hub of innovation as well as a “paradise” for startups, with startup-friendly policies including subsidies and a range of incubation schemes. With its advanced IT infrastructure, strong government support, intellectual property laws, and deep tech talent pools, Singapore has become a world-leading technology innovation centre.

Thus, the cooperation between NATEC and ESG will provide an open space for best practices and know-how sharing, particularly on the crafting and execution of startup and innovation supporting policies, as well as building and operating startup hubs.

Through market access programmes and joint events, Vietnamese startups will have a chance to experience and benefit from peer-to-peer learning with their counterparts. Operating in the world’s leading and most vibrant ecosystem, Singaporean startup founders and teams have admirable skills and qualities, for example, creative thinking; entrepreneurship and management skills; fundraising and management; as well as research and development (R&D). Moreover, there will be a high chance that our startups can find great partners or clients in a new market.

One of the biggest concerns for Vietnamese startups might be how to get funding from venture capital funds or angel investors and how to manage them wisely, especially during the crisis. Thus, what they need to focus on is acquiring valuable know-how and skills from their counterparts and taking any opportunity to interact and learn from experienced investors and mentors.

Leon Cai: The renewed MoU will build on existing partnerships between Vietnam and Singapore to facilitate collaborations for startups, ecosystem builders, and the tertiary institutions of both countries, especially in strengthening the global innovation communities’ access to Vietnam’s startup landscape, connecting startups from Vietnam to major technology hubs, and facilitating venture capital activities. In addition, the renewal will have an additional focus on leveraging existing open innovation initiatives such as the Singapore Open Innovation Network to crowd-source solutions for corporates in Vietnam. ESG will also share best practices with NATEC to develop similar open innovation platforms for Vietnam, among other initiatives.

Trade and business links between Vietnam and Singapore have been robust ever since the countries established bilateral diplomatic relations back in 1973. In recent years, we have observed growing interest from Singaporean companies in Vietnam’s technology and innovation sector. With this renewed memorandum, we hope to build a vibrant ecosystem, leveraging the strengths of different innovation players from both countries to create an environment that enables startup and corporate partnerships, and catalyses business transformation and economic growth.

How important s Vietnam’s startup and innovation scene to the rest of ASEAN, the world, and to Singapore? Has there been any changes over the past five years in this regard?

Pham Hong Quat: The Vietnamese government started to pay attention and set up initiatives to build and support the startup ecosystem since 2016 with the National Programme to Support Innovative Startup Ecosystem in Vietnam until 2025, also known as National Programme 844. Since 2017, Vietnam has emerged as a hub for startups, closely competing with Indonesia and Singapore. In the first half of 2019 for instance, Vietnamese startups raised $246 million with startups such as Tiki, VNPay, and VNG capturing 63 per cent of these deals. The first half of 2020 witnessed a 22 per cent reduction in deals compared to the same period in 2019, owing mainly to the economic impact of COVID-19. However, fundraising by Vietnamese startups has shown signs of recovery in the second half of 2020.

To encourage entrepreneurship, the Vietnamese government has established a number of funds at state and provincial/city level to support startups.

Our ecosystem is booming and emerging and in only two years Vietnam jumped from the second-least-active startup ecosystem among the six largest ASEAN countries (Indonesia, Vietnam, Thailand, Malaysia, Singapore, the Philippines) into the third rank, trailing behind only Indonesia and Singapore, according to Southeast Asia-focused venture capital firm Cento Ventures.

Vietnam, driven by its growing internet penetration, smartphone adoption, and young demographics, offers huge potential for startups, especially ones focusing on fintech, e-commerce, and enterprise solutions. These sectors have attracted significant portions of funding in the last year. Other emerging sectors include education technology, agri-tech, and logistics.

Leon Cai: In the past five years, from 2015 to 2020, there has been an exponential increase in deal counts and investments into Vietnam, compared to the five years before then. Regulatory changes, too, have been passed in Vietnam to make it easier for startups to access tech from aboard. National agencies such as NATEC and innovation centres across Vietnam have been established to champion innovation. These are indicators that venture capitalists welcome and boost confidence among investors. Vietnam has risen significantly in 2019’s Global Innovation Index rankings.

Within ASEAN, Vietnam is one of the top three innovative nations, together with Indonesia and Singapore. As a whole, Southeast Asia has built a strong reputation in the innovation scene, with 13 unicorns groomed here. The region has also been attracting a significant number of global investors. According to DealStreetAsia , one of the biggest funds that closed this year in the region is global venture capital firm B Capital Group with more than $700 million that focuses on Southeast Asia.

What lessons should Vietnam learn from Singapore to develop its startup and innovation ecosystem? Which best practices will ESG share with NATEC to develop similar open innovation platforms for Vietnam?

Leon Cai: ESG has been working with public and private partners in Singapore to grow our open innovation ecosystem. As open innovation involves a “win-win” partnership between larger corporates and innovative startups and SMEs, these efforts include setting up the Singapore Open Innovation Network , which is a national gateway to aggregate all open innovation challenges out of Singapore, and the Startup SG Network featuring local startups and ecosystem partners. Most of the innovation calls are open to global solution providers and startups to apply. ESG also collaborates with foreign partners on international co-innovation programmes such as the EUREKA GlobalStars-Singapore call and the recently-launched inaugural Southeast Asia Open Innovation Challenge.

Under the renewed MoU, we look forward to more opportunities to work with NATEC to facilitate exchanges between startups, corporates, investors, and other ecosystem players from Vietnam and Singapore, leveraging on existing initiatives such as the Singapore Open Innovation Network or through new collaborations like the Southeast Asia Open Innovation Challenge.

Pham Hong Quat: Business-incubating infrastructure, tax incentives, cash grants, or financing schemes are outstanding government support initiatives from Singapore that push the ecosystem to the next level and those best practices are what we desire to learn.

Most importantly, we are impressed by the way they form public and private partnerships in open innovation – a global phenomenon and our focus in the past few years. We believe that this is an appropriate approach to build up sustainable ecosystem as government funding and supports are limited while there are a lot of opportunities from the private sector. By creating an open innovation platform where the government plays a role as facilitator, we can draw private resources into startup support activities on a sustainable win-win basis.

We are positive that the renewed MoU will bring more impacts and benefits to the startup ecosystem of the two countries via a number of detailed activities such as market access and exchange, joint pitching sessions, capacity building, and open innovation platform.

What successful tie-ups have there been between startups and corporations under the MoU? What are your future expectations?

Leon Cai: ESG and NATEC signed the MOU at the sidelines of TechFest 2018 in Danang, Vietnam on November 30, 2018 to facilitate collaborations for startups, ecosystem builders and tertiary institutions between both countries.

Over the past two years, the MoU has supported a number of initiatives:

1. Strengthening the global innovation communities’ access to Vietnam’s startup landscape. NUS Enterprise, the entrepreneurial arm of the National University of Singapore (NUS), partnered Becamex IDC Corporation to launch ecosystem builder BLOCK71 Saigon in October 2020. As an entrepreneur enclave of startups, venture capitalists, and incubators, BLOCK71 Saigon connects Vietnam’s innovation players with a network of mentors, global tech talents, and resources from corporates and government agencies;

1. Connecting startups to major technology hubs. BLOCK 71 augments the efforts of Enterprise Singapore’s Global Innovation Alliance (GIA) in Ho Chi Minh City, a partnership with Saigon Innovation Hub (SIHUB) and Singapore-based venture fund Quest Ventures that was launched in 2019. GIA is a network of global innovation hubs which Vietnam’s ecosystem players can tap on to access the latest R&D efforts, whilst familiarising the global startup community with market demands unique to Vietnam. More than 10 Singapore-based startups from various sectors participated in the first run of the GIA HCMC market immersion programme, which concluded recently with a number of participating startups in discussion for partnerships or pilot projects with Vietnamese partners; and

1. Facilitating Venture capital activities. We have observed more fund raising activities from Singapore-based venture capital firms looking to invest in Vietnam’s fund and startups. Sea Group and Vertex Holdings invested in the recently launched Do Ventures fund, targeting Vietnamese startups. Other noteworthy fund-raising activities include Singapore companies, Insignia Ventures Partners, and TRIVE investments into Vietnamese technology companies Logivan and CoderSchool, respectively. Singaporean edtech startup Kalpha also raised seed funding from Vietnam-based VC Nest Tech VN.

Moving forward, we hope to facilitate more co-innovation partnerships between startups and corporates. One example is the ongoing Southeast Asia Open Innovation Challenge that was launched at the Singapore Week of Innovation and TeCHnology in December last year. VNG Cloud launched its call to source for partners to co-innovate complementary technologies to support its eKnow Your Customer (eKYC) solution which enables digital banking for banks and financial institutions. The Open Innovation Challenge also saw participation from a number of other regional corporates including Central Group (Thailand), Hong Leong Holdings (Malaysia), Emtek (Indonesia), and Sunway (Malaysia), aiming to leverage Singapore’s business friendly environment, strong infrastructure and proximity to Southeast Asia to co-develop and scale new innovative solutions.

The Vietnamese government has a number of supporting policies for startups. Do you think they are enough to facilitate startup development and lure Singaporean startup and venture funds?

Leon Cai: Policies to support innovation has been remarkable in the last 10 years. At the enterprise level, MoUs such as those between ESG and NATEC further strengthen the role of the business sector in Vietnam’s innovation landscape. Our MoU encourages private and public partnerships, enterprise investments in science and technology initiatives, and expands public support for R&D at firm level by linking Vietnamese enterprises with research institutions.

Efforts to strengthen training and knowledge transfers between research centres, academia, and foreign companies and national science and technology networks will also assure more domestic firms can access the latest technologies and build capabilities to improve on productivity and quality benchmarks.

These efforts make Vietnam an attractive investment for Singaporean companies.

HCM City (VNA) – The Ministry of Agriculture and Rural Development (MARD) has urged localities to adopt drastic measures to fight irregular, unreported and unregulated (IUU) fishing.

All Vietnamese fishermen, businesses, and local authorities must consider this an important and urgent task to affirm the prestige of Vietnam’s fisheries sector in the world and among countries it shares territorial waters with, and be resolved to meet the standards set by the European Commission (EC).

Since the EC gave a “yellow card” warning to Vietnam’s fisheries and seafood in the European market in October 2017, the entire sector has suffered marked losses.

Tran Dinh Luan, head of the ministry’s Directorate of Fisheries, said it is necessary to prevent, deter, and eliminate IUU fishing in order to remove the “yellow card” warning, develop fisheries responsibly, and integrate into the world.

This is also the guideline of the Party and State, as reflected through the Law on Fisheries.

Since the imposition of the EC warning, Vietnam’s fishery export value to Europe has fallen by between 6 and 10 percent annually.

From being the second-largest importer of Vietnam’s seafood, with value representing 17-20 percent of Vietnam’s total export revenue, the EU now ranks fifth, after Japan, the US, the Republic of Korea (RoK), and ASEAN.

The Government and the National Steering Committee on IUU Fishing Prevention have issued a range of documents instructing ministries, agencies, and People’s Committees in 28 coastal cities and provinces to drastically take preventive measures. The MARD has conducted regular inspections in localities.

The EC has highly valued Vietnam’s political determination to implement its recommendations in this regard.

Vietnam has openly and transparently announced the results of inspections of seafood exports to the EU and has completed a legal framework that serves as a foundation to materialise relevant tasks, including the enforcement of the Law on Fisheries, two decrees adopted by the Government, a decision by the Prime Minister, and a circular from the MARD.

The country has joined and realised the Food and Agriculture Organisation (FAO)’s Agreement on Port State Measures, whose main objective is to prevent, deter, and eliminate IUU fishing, and also the UN Fish Stocks Agreement.

The EC has lauded Vietnam’s efforts in installing fishing vessel monitoring equipment and enhancing the management of seafood exploitation.

One of 28 coastal localities in Vietnam, the Mekong Delta province of Soc Trang has posted significant achievements in fighting IUU fishing.

With 366 fishing vessels of 15 metres in length or more operating at sea, the province has stepped up communications work so that captains, sailors, and ship-owners seriously observe relevant regulations.

According to Duong Tan Truong, head of the provincial Department of Fisheries, Soc Trang has developed a plan to conduct tasks in fighting IUU fishing and established a working group to lead the fight.

It carried out 10 patrols at sea last year and inspected 146 fishing vessels inside and outside of the province.

Soc Trang also granted 381 seafood certificates to 11 processing and export firms in the locality during 2020, with more than 6,000 tonnes of seafood, according to Truong.

Southernmost Ca Mau province, meanwhile, has also made substantial efforts in disseminating relevant legal documents to raise public awareness about IUU fishing, and enhancing coordination between relevant agencies.

The province will work harder in the time ahead to prevent fishing vessels that deliberately operate in foreign waters./.

VNA

The Hanoitimes – Vietnam’s airlines have added more flights to Danang to airlift tourists out of the city, totaling about 130 flights from the city since July 26.

Some 80,000 tourists are stuck in Danang and find ways to return home, each province and city is taking their own preventive measures while awaiting the prime minister’s instructions.

Each locality including Danang city is empowered to adopt their own measures to combat Covid-19. Photo: Zing

As of July 26, flights from Danang to the provinces were still considered as regular flights. On the morning of July 27, flights to and from the city were still allowed. From 12am of July 28, six districts with around one million people in Danang have been put under lockdown and transport is banned to and from the city.

On July 26, the medical quarantine unit of Danang airport requested air passengers leaving the city to make medical declaration before boarding. All airlines are required to provide the contact of passengers on each flight to the medical quarantine unit for checking.

Vietjet requested passengers on flights departing from Danang during this period to make paper or electronic medical declaration at the airport.

Vietnam Airlines, which operates 10 air routes from Danang to different localities, said the airplanes are thoroughly disinfected every day. Pre-boarding health check is conducted. Passengers are provided with face masks, gloves and antiseptic towels.

Passengers are also required to wear face masks during the whole flight. All members of the flight crew have to wear medical protective gear. Passengers are applied safety measures and their health status is monitored after landing.

On July 26, there were eight ferry flights (without passengers) taking off from Noi Bai airport to Danang to airlift passengers.

Although no direction from the government has been issued, Noi Bai airport’s authorities have proactively arranged a special area to welcome passengers returning from Danang. All passengers are required to wear face masks when landing at the airport. Antiseptic solution is also available.

Some provinces such as Bac Giang, Hai Phong and Nghe An have requested people returning from Danang to take self-isolation for 14 days.

Thanh Hoa, Can Tho, Quang Ngai and Ho Chi Minh City also decided to strengthen health monitoring for people returning from Danang.

The Ho Chi Minh City government has required those returning from Danang in recent weeks to make medical declaration and put them on home observation within 14 days. People showing suspected symptoms related to Covid-19 within 14 days after leaving Danang would be hospitalized, isolated and tested for SARS-CoV-2.

The Hanoitimes – As of December 31, 2020, the total value of G-bonds reached more than VND1,350 trillion (US$58.55 billion), up 17.39% year-on-year.

The State Treasury of Vietnam raised nearly VND324 trillion (US$14.04 billion) through Government bonds (G-bonds) auctions at the Hanoi Stock Exchange (HNX) in 2020, 8% above the year’s plan.

Vietnam strives to have its government bond included in global recognized bond indices in 2021. Photo: Pham Hung.

Last December, the HNX organized 25 government bonds auctions and received VND53 trillion (US$2.3 billion), up 43.6% month-on-month.

Successful bidders for G-bonds from 10 to 30-year term, however, would have to settle with interest rates of 0.1 – 0.2 percentage points lower than in previous month.

On the secondary market, the total volume of G-bonds sold by the outright method reached over 1.93 billion worth VND213.7 trillion (US$9.26 billion), up 30.38% in value from a month earlier.

Trading volume through repurchase agreements (repos) was more than one billion bonds valued at VND109 trillion ($4.72 billion), increasing 43.66% in value from November and accounting for 33.76% of total transaction value in the market.

Foreign investors did not participate in repos transaction last month, but bought more than VND3.62 trillion ($157 million) worth of G-bonds via outright and sold of VND2.41 trillion ($104.5 million). This resulted in foreign investors being net buyer of VND1.21 trillion ($52.47 million), the largest amount in 2020.

As a result, foreign investors net bought VND3.95 trillion ($171.28 million) of G-bonds in 2020.

The average transaction amount in the G-bond market in 2020 rose by 13.73% year-on-year to VND10.27 trillion ($445.42 million), showcasing “improvements in size and liquidity of the market,” noted the HNX.

As of December 31, 2020, the total value of G-bonds reached more than VND1,350 trillion ($58.55 billion), up 17.39% year-on-year.

Vietnamese G-bond among global recognized bond indices

Head of the Department of Banking and Financial Institutions under the Ministry of Finance (MoF) Phan Thi Thu Hien said for the country’s next five years of 2021-25, Vietnam will need huge capital for development, in which the G-bond is an essential part for the development of bond and financial markets.

“In 2021, Vietnam strives to have its G-bond included in global recognized bond indices such as JP Morgan, Bloomberg Barclays, Citi World Government, aiming to attract foreign investors to Vietnam’s bond market,” Mrs. Hien said.

Under the bond market development roadmap during 2017-20, with vision toward 2030, Vietnam aims for the average increase of trading volume of G-bonds, government-guaranteed bonds and municipal bonds per session at 1% and 2% of the outstanding balance of listed bonds by 2020 and 2030, respectively.

The outstanding balance of the bond market will reach around 65% of GDP by 2030, with the outstanding balance of the market of government bonds, government-guaranteed bonds and municipal bonds to reach about 45% of GDP by 2030, and that of the market of corporate bonds to reach about 20% of GDP by 2030.

The detection and settlement of wildlife crimes in Vietnam have recoded strides over the last five years, according to Deputy Director of the Education for Nature Vietnam (ENV) Bui Thi Ha.