In the manufacturing sector

The Hanoitimes – It is vital for Vietnam to further boost the development of private sector and public investment funds, in turn contributing to economic growth and creating the foundation for long-term development.

Vietnam would speed up socio-economic recovery to realize the growth target of 6.5% for this year.

Prime Minister Nguyen Xuan Phuc at the meeting. Photo: Quang Hieu

Prime Minister Nguyen Xuan Phuc stressed the view at a monthly government meeting on March 2, which were attended by government leaders and representatives of ministries and sectors.

Among measures to boost growth, the PM stressed the importance of enhancing greater efficiency in global integration to boost exports and attract high quality   foreign direct investment (FDI).

“The current situation presents huge opportunity for Vietnam to attract investment capital,” stressed Phuc, adding a favorable investment environment is a must to keep capital inflow from growing.

In addition to the role of state-owned corporations, Phuc said it is vital for Vietnam to further boost the development of private sector and public investment funds, in turn contributing to economic growth and creating the foundation for long-term development.

According to Phuc, disbursement of public funds is a major mission, for which the Government Office is tasked with inspecting efficiency in disbursing public funds and ODA-funded projects.

Phuc stressed the importance of reviewing current supporting programs and proposing new ones to assist businesses and people affected by the pandemic.

“Nurturing economic growth drivers and creating long-term revenue sources are the objective for monetary and fiscal policies,” said Phuc.

The PM requested major economic hubs to play a greater role in aiding economic growth, especially Hanoi, Ho Chi Minh City, Vung Tau, Danang, and Can Tho.

For economic sectors that are struggling with the Covid-19 impacts, including those in fields of aviation, services, and tourism, Phuc called for substantial measures to address their concern and difficulties.

Expansionary fiscal, monetary policies to boost growth

At the meeting, Minister of Planning and Investment Nguyen Chi Dung said Vietnam remains steadfast in pursuing expansionary fiscal and monetary policies to boost economic growth and control inflation rate.

Dung referred to a forecast that the Covid-19 pandemic would continue to exert its impacts on the global economy until at least the first half of 2021 or when Covid-19 vaccines are rolled out worldwide, as such, “keeping expansionary fiscal and monetary policies are necessary,” he added.

“It is important to enhance efficiency in the combination of fiscal and monetary policies to aid economic recovery and keep inflation under control,” Dung asserted.

“Government agencies and provinces/cities should closely monitor the market situation to timely propose supporting policies for people and businesses affected by the pandemic, especially for those operating in services, tourism and transportation sectors,” stressed Dung.

Meanwhile, the minister urged to stay alert against the Covid-19 pandemic as the country aims to ensure the realization of the dual target of both containing the pandemic and boosting economic recovery.

Amid the Covid-19 outbreak, Dung requested related agencies to soon issue a uniform safety procedure during the production and distribution of farm produce from Covid-19 zones to other localities.

While the world is still struggling with the Covid-19 impacts, “the domestic market remains a priority,” asserted Dung.

Dung also highlighted the importance of applying hi-tech and accelerating the digital transformation process and promoting e-commerce, in which local authorities should provide more support for enterprises to shift their operation online and apply e-payment methods.

“Vietnam would step up efforts in diversifying trade markets depending on the actual Covid-19 situation globally, while taking this opportunity to restructure the country’s export-import activities to reduce its reliance on a single market,” noted Dung.

With foreign direct investment (FDI) as a key source for economic growth, Dung called for a more selective approach in attracting such capital inflow, including a thoroughly review of M&A activities related to enterprises operating in national core and strategic business fields with high socio-economic impacts.

“The move is necessary to ensure favorable conditions for FDI attraction, protect domestic enterprises and prevent tax evasion through investment activities,” Dung concluded.

The Hanoitimes – Vietnam said it ensures budget for inoculation to as much locals as possible.

Vietnam’s Prime Minister Nguyen Xuan Phuc said Tuesday morning that the government will ensure sufficient funding to administer Covid-19 vaccine to local people.

Vietnam’s Prime Minister Nguyen Xuan Phuc at a meeting on March 2. Photo: Quang Hieu/VGP

“We make sure that there’s enough funding, even direct support to vaccinate as many people in Vietnam as possible with the target to all,” Phuc said at a government meeting on March 2.

“This is an urgent task requiring the healthcare system at grassroots level to implement the vaccination program in the shortest time,” he noted in a statement.

Accordingly, Phuc asked the Ministry of Health to conduct first shots within this week.

“The Ministry of Health right this week needs to take first shots to groups of people in the priority list, mostly the poor, social beneficiaries, and people at high risk of infection,” Phuc stressed.

The first doses of vaccine arrived in Vietnam on February 24, likely being injected to health workers and frontline forces (members of the steering committee for Covid-19 prevention at all levels, people working in quarantine centers, contact tracers, volunteers, reporters, among others; army officers and policemen).

Others who are subject to the inoculation include (2) Vietnamese diplomats abroad; customs and state officials working in immigration service; (3) essential providers in aviation, transportation, tourism, clean water, electricity, among others; (4) teachers and employees in education sector; people working in administration agencies having frequent contact with others; (5) people with underlying diseases and those above 65 years of age; (6) people in the pandemic-hit areas; (7) the poor and social beneficiaries; (8) people in overseas mission; (9) other people decided by the Ministry of Health basing on the requirements of the pandemic control.

It’s reported that only 117,000 doses of AstraZeneca Covid-19 vaccine have so far arrived in the country of nearly 100 million people. Other batches totaling dozens of million doses are scheduled to be delivered within this year.

The Hanoitimes – The purchase confirms that Russia is the biggest arms supplier of Vietnam.

Vietnam signed a US$350 million deal in 2019 to buy a dozen of combat training aircraft from Russia, the Vedomosti business daily reported on January 28.

The purchase deal covers at least 12 Yak-130 combat training jets, Vedomosti cited two unnamed Russian defense industry executives as saying, giving no details about the delivery time.

A Vietnamese Kilo-class submarine bought from Russia. Photo: AFP

Yak-130 jet is designed for training pilots of advanced fighter aircraft. It can also be equipped with air-to-surface weapons including guided missiles and bombs.

According to Vedomosti, Vietnam would be the sixth country to import the Yak-130, following Algeria, Bangladesh, Myanmar, Laos, and Belarus.

The contract paves the way for the purchase of more advanced jets from Russia, including the Su-30SM and the Su-35, military expert and Arms Exports magazine editor-in-chief Andrei Frolov was cited as saying.

Russia is the biggest arms supplier to Vietnam and Southeast Asia. In 2018, Vietnam ordered a fleet of Russian-made fighter jets, surface ships, and submarines worth more than US$1 billion, according to the state-run TASS news agency.

Earlier, Vietnam bought six Kilo-class submarines worth more than US$2 billion.

Vietnam has been one of the world’s most active arms importers in recent years, according to Reuters.

Hanoi stepped up its imports amid China’s increasingly aggressive territorial claims in the South China Sea, where the neighbors have long-standing rival claims.

Vietnam is ranked 23th out of 137 countries and second in Southeast Asia after Indonesia in the military strength ranking 2019 of US-based Global Firepower.

The rating is based on 55 parameters, including military resources, diversity of weapon systems, natural resources, geographical features, finances and available manpower.

The military strength is formed by three main sectors namely airpower, land strength and naval strength.

The Hanoitimes – The two sides consider inter-parliamentary cooperation an important component of the strategic partnership between the two countries.

The first Vietnam-Russia inter-parliament meeting has opened up new areas of cooperation that are poised to foster the comprehensive strategic partnership.

Vietnam’s National Assembly Chairwoman Nguyen Thi Kim Ngan and Chairman of the State Duma of Russia Vyacheslav V. Volodin. Photo: VNA

Vietnam’s National Assembly (NA) Chairwoman Nguyen Thi Kim Ngan and Chairman of the State Duma of Russia Vyacheslav V. Volodin co-chaired the meeting in Moscow last week.

“It would be right for us to work more intensively in the economic sphere, developing both foreign economic relations and goods circulation. It is clearly insufficient for the level of our relations. […] For our part, we must do everything to develop cooperation more effectively than today,” the State Duma quoted Viacheslav Volodin.

“When we talk about the work of our inter-parliament commission, it should do everything to ensure more dynamical development of foreign economic relations,” he said at the meeting.

Viacheslav Volodin supported the idea of creating working groups and said that the adoption of legislative decisions would entail a more active development of relations.

Meanwhile, Nguyen Thi Kim Ngan said “We will do our best to develop cooperation between our countries, trade and economic relations better. To ensure that these results correspond to good political relations between our countries.”

Vietnam’s National Assembly Chairwoman Nguyen Thi Kim Ngan and Chairman of the State Duma of Russia Vyacheslav V. Volodin at the first inter-parliament meeting in Moscow. Photo: Duma.org.ru

Economic in focus, oil and gas remain among key pillars

Both sides agreed to focus on economic ties.

Ngan said that it is necessary to discuss issues of cooperation in the oil and gas sector, agriculture, and tourism. She proposed having separate working groups for each field.

Vietnam expected to continue cooperation with Russia in power projects, especially one in the Center for Nuclear Science and Technology.

Viacheslav Volodin said the two countries need to do everything to develop more actively foreign economic relations and goods circulation so that Russian companies can more actively participate in the development of these relations, implementing investment projects.

He noted “It is extremely important to create all conditions for business development and implementation of investment projects both in Russia and Vietnam on the principles of developing bilateral cooperation.”

“If we reach US$10 billion (turnover), this will give an additional impetus to our countries. This will develop the economies of our countries and increase their prosperity,” said the chairman of the State Duma.

The leaders stressed the importance of more than 70 years of diplomatic relations and 25 years since the signing of the treaty on the principles of friendly relations between Vietnam and Russia, and the two parties.

They affirmed the parliament’s significant role in strengthening the legal basis for the bilateral relations and close coordination between the two sides at international parliamentary organizations, such as the Inter-Parliamentary Union, the Asia-Pacific Parliamentary Forum, meetings with dialogue partners at the ASEAN Inter-Parliamentary Assembly, the Meeting of Speakers of Eurasian Countries’ Parliaments, and the International Forum “Development of Parliamentarism”.

The Hanoitimes – Activities including trade expos are expected to tighten economic ties between the two countries which will celebrate the 70th anniversary of diplomatic ties next year.

Two-way trade between Vietnam and Russia is of great potential and Vietnamese authorities will create more favorable conditions for the investment and operations of Russian firms, Vietnamese Deputy Prime Minister Trinh Dinh Dung has said.

Vietnam’s Deputy Prime Minister Trinh Dinh Dung. Photo: Linh Pham

Vietnam and Russia trade will greatly depend on vision and determination from the both sides, especially the business communities, Dung said at the Expo-Russia Vietnam 2019 taking place in Hanoi on November 14-16.

Being a member of 13 free trade agreements (FTAs), 12 of which are already effective, Vietnam has been committed to international regulations requiring high standards for goods and trade activities, Dung said, adding that FTAs will encourage foreign companies to enter Vietnam, ASEAN, and Asia as well.

Russian Ambassador to Vietnam Konstantin Vnukov. Photo: VTC News

The enforcement of the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA) is a strong boost for the Vietnam-Russia trade, he noted.

Accordingly, Vietnam expects its leather and footwear, agro-forestry-fisheries, electronics and consumer goods to further penetrate into Russia and other markets in the Russia-led Eurasian Economic Union (EAEU).

Vu Tien Loc, president of the Vietnam Chamber of Commerce and Industry. Photo: Linh Pham

Meanwhile, Vietnam welcomes Russian goods like farm produce, pharmaceuticals, health, industrial equipment, automobile spare parts, devices, mine extraction, materials, high-tech products, energy, and oil.

Sergey Anatolievich Tsyb, first deputy minister of Russian Ministry of Industry and Trade, said at the expo that Vietnam ranks among Russia’s top 10 Asian biggest trade partners and the biggest trade partner in ASEAN.

Health and pharmaceuticals are among sectors posting the strongest growth in the bilateral economic ties and Russian companies are finding opportunities to cooperate in these sectors as Vietnam has a strong health industry.

Russian companies are ready to supply the best materials which are highlighted in this expo for Vietnamese partners, he emphasized.

Senior Russian offcials attend the expo. Photo: Linh Pham

Expo-Russia Vietnam 2019 is one of the main activities celebrating Vietnam Year in Russia and Russia Year in Vietnam 2019.

The expo will open up opportunities to exchange goods and find out new collaborative ways that will support companies and facilitate short-term trade between the two countries, Russia’s Ambassador to Hanoi Konstantin Vnukov said at the event.

Sergey Anatolievich Tsyb (1st from left), first deputy minister of Russian Ministry of Industry and Trade. Photo: Ha An

Russian Foreign Minister Sergei Lavrov said in a letter sent to the expo that the event is necessary for information exchange and partnership for enhanced economic ties, of which Vietnam has contributed tremendously to the substantive cooperation.

The expo showcases booths of nearly 200 Russian companies and localities in Vietnam. More than 300 exchange meetings have been held during the three-day event.

Vision

Vietnam-Russia trade value in 2014-2020. Source: General Department of Vietnam Customs. Chart: Linh Pham

The bilateral economic ties have significantly increased since the enforcement of the free trade agreement between Vietnam and the Russia-led Eurasian Economic Union (EAEU).

As a result of the launch of this mechanism, Vietnam will obtain a privileged access to the large and lucrative common market of five countries namely Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan with the total volume of gross domestic product of around US$2.2 trillion and with almost 183 million consumers.

In exchange, the five Eurasian countries will be able to promote their products in Vietnam with a population of over 95 million people.

Two-way trade rose from US$2.6 billion in 2014, US$3.9 billion in 2015, US$5.2 billion in 2017, US$6.1 billion in 2018 and is estimated to reach US$10 billion by 2020, according to the General Department of Vietnam Customs.