Obstacles to economic development in developing countries

The Ho Chi Minh City Party Committee held the fifth conference in the 11th tenure on April 13 to discuss a draft report on socio-economic and budget performance in the first quarter, and key tasks and goals for the second quarter.

They also mulled over a draft action programme to realise the Resolution of the 11th municipal Party Congress on mass mobilisation.

Chairing the event, Politburo member and Secretary of the municipal Party Committee Nguyen Van Nen said the fight against COVID-19 remains the top priority in the second quarter and the coming time.

He required that the city will continue raising public awareness of following the 5K message, tightening immigration management, while putting in place a plan to implement “vaccine passport” pending its approval to promote tourism and economic development.

The official took note of clear signs of recovery of the city’s socio-economy situation in the first quarter with the GRDP up 4.58 percent, compared to a 0.42 percent increase in the same period last year.

The city basically achieved the dual goal of containing COVID-19 while maintaining socio-economic development and ensuring national defence-security.

About preparations for the elections of deputies to the 15th National Assembly and People’s Councils at all levels for the 2021-2026 tenure, he urged the steering committee, election committee and sub-committees involved to enhance inspection, especially personnel work, as well as promptly discover and handle acts that distort information related to the effort.

Nen also wanted work to early start to implement the master plans of HCM City and Thu Duc city.

He said more efforts should be made to improve business climate and competitiveness, first of all to tackle difficulties faced by businesses, push forward with administrative reform and assist people and enterprises in restoring production and business.

Source: VNA

Participants in the ceremony bathe the Buddha statue, a ritual of the traditional New Year festival of Cambodia, Laos, Myanmar, and Thailand (Photo: VNA)

HCM City (VNA) – A ceremony was held at Pho Minh Pagoda in Ho Chi Minh City on April 14 to celebrate the traditional New Year of Cambodia , Laos, Myanmar, and Thailand.

Organised by the HCM City Union of Friendship Organisations (HUFO) and the city’s committee of the Vietnam Buddhist Sangha (VBS), the ceremony saw the presence of representatives from the consulates-general of the four countries in HCM City, the municipal Vietnam Fatherland Front Committee, the municipal Committee for Overseas Vietnamese, and the countries’ entrepreneurs and students.

The traditional New Year festival is known as Chol Chnam Thmay in Cambodia, Bunpimay in Laos, Thingyan in Myanmar , and Songkran in Thailand.

Addressing the celebrations, HUFO Vice Chairwoman Tran Hoang Khanh Van said the ceremony aims to further promote mutual understanding, cultural exchange, and multifaceted cooperation between Vietnam, including HCM City, and the four neighbouring countries.

She noted that Vietnam, Cambodia, Laos, Myanmar, and Thailand are ASEAN members and have cooperated and assisted one another over many years. Their peoples have stood side-by-side in fighting for national independence, developing their countries, and building an ASEAN Community of peace, stability, cooperation, and prosperous development.

Most Venerable Thich Thien Tam addresses the ceremony held at Pho Minh Pagoda on April 14 (Photo: VNA)

Most Venerable Thich Thien Tam, Vice President of the Executive Council of the Central VBS Committee and deputy head of the HCM City VBS Committee’s executive board, said the traditional New Year of Cambodia, Laos , Myanmar, and Thailand reflects the similarities in culture and religious practices among the countries, adding that it is helpful in strengthening the five nations’ solidarity in their development efforts and in ASEAN Community building.

Echoing that view, Ratiwan Bonprakhong, Chief Representative of the Tourism Authority of Thailand’s HCM City Office, held that the ceremony helps bring the five countries’ people closer together and also demonstrates their solidarity and unity./.

The leather-footwear industry is among the key export sectors attracting M&As in recent years (Photo: VNA)

HCM City (VNA) – Several of Vietnam’s key export sectors, such as textile-garment, leather-footwear, and electronics have become magnets for merger and acquisition (M&As) activities, posing a risk of leading enterprises in those sectors being purchased by foreign investors.

An advantage of Vietnam’s textile-garment industry is low labour costs, and it was also identified as one of six sectors on a list of supporting industry products prioritised for development.

The country has become the “footwear factory” of the world, while the domestic market boasts a population of more than 96 million.

Vietnam is also establishing itself as the world’s electronic manufacturing hub, with FDI continuing to flow into the sector over recent years.

Tran Phuong Lan, an official from the Vietnam Competition and Consumer Authority at the Ministry of Industry and Trade (MoIT), said that apart from existing development potential, opportunities created by bilateral and multilateral free trade agreements (FTAs) have also fuelled those industries’ development.

For example, she noted, under the EU-Vietnam FTA that took effect on August 1, 2020, 42.5 percent of import tariffs on textile-garment products were immediately eliminated, while those on leather-footwear items will be gradually cut to zero percent. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into force on December 30, 2018, abolished tariffs on Vietnam’s textile-garment products exported to other member countries.

A recent study of COVID-19’s impact on certain main industries in Vietnam noted that there have been signs of M&As surging in the textile-garment, footwear, and electronics sectors over the last three years.

In 2018, Japan’s Itochu Corporation spent 47 million USD on purchasing nearly 10 percent of shares in the Vietnam National Textile and Garment Group (Vinatex), raising its stake to almost 15 percent and becoming the second-largest shareholder, after MoIT.

Notable M&A deals last year included the one between the Taekwang MTC Vietnam Co. Ltd and the Jin Heoung Vina JSC in the leather-footwear industry, and the one between the Zenith Electronics LLC and Luxoft USA Inc. in the electronics industry.

Investors from the Republic of Korea, who have continually conducted large-scale M&A deals in Vietnam, also tend to select sectors with potential, like textile-garment, leather-footwear, and electronics.

Economic experts cited the experience of other countries as showing that to ensure effective M&A activities and protect the interests of all sides involved it is necessary to perfect related legal regulations, especially those on information transparency, and set up a regular consultative mechanism between the MoIT and the Ministry of Planning and Investment to develop an M&A database for key industries like textile-garment, leather-footwear, and electronics.

Vietnamese enterprises should proactively diversify technical solutions to keep information transparent, identify their targets in M&A deals, and analyse partners to avoid risks during negotiations.

In particular, experts noted, in M&As involving foreign firms, businesses should have a good grasp of market information and carefully assess foreign investors regardless of the deal’s value.

Nguyen Thi Tong, former Vice Chairwoman and former Secretary-General of the Vietnam Leather, Footwear and Handbag Association, recommended that as the leather-footwear and handbag sector is one of Vietnam’s five key export industries, businesses should make proactive moves to boost their capacity and cooperation via M&As within their sector, to secure sustainable development./.

Chinese State Councillor and Foreign Minister Wang Yi (Photo: Xinhua)

Hanoi (VNA) – China will work with Mekong countries to continue to promote the development of the Lancang-Mekong Cooperation (LMC) towards creating a new model of regional cooperation, and building a new highland of development and prosperity, Chinese State Councillor and Foreign Minister Wang Yi was quoted as saying on April 13 by Xinhua News Agency.

Xinhua News Agency also quoted the Chinese official as saying that the LMC mechanism had brought tangible benefits to the people of all LMC countries.

The six LMC countries absorbed resources from all sides, focused on pragmatic cooperation and reached fruitful results. They also did a lot to benefit the people and carried out regional governance and maintained peace and stability of the region.

Wang said that China is speeding up efforts to foster a new development paradigm, and the LMC is facing new opportunities.

The six LMC countries should adhere to the spirit of partnership to jointly seek ways for development; adhere to interconnection to build an engine for development; adhere to innovation to foster momentum for development; and put people’s livelihood first to consolidate the foundation for development, he said.

Xinhua also quoted Myo Thant Pe, Myanmar Ambassador to China, as saying that all countries would continue to cooperate closely with China, push forward mechanism construction and deepen pragmatic cooperation to better benefit all the people./.