Vietnam News Today (Apr. 27): Big Room for Vietnam, Uruguay to Expand Trade Ties

OECD forecasts Vietnamese economy to grow by 6.5% this year

The Vietnamese economy will record steady growth of 6.5% this year and 6.6% in 2024, according to a report released on April 26 by the Organization for Economic Co-operation and Development (OECD).

During the launching ceremony of the report, Vincent Koen, acting deputy director of the OECD’s Economic Country Studies Branch, said the country’s strong economic growth has led to remarkable social progress made over recent years, whilst its economy has been resilient to shocks.

Further reforms aimed at improving the business climate, spurring on competition, and expanding the pension and welfare system can be seen as necessary for the nation to continue on its path of economic and social progress and to fully benefit from its deep integration in global trade, he added.

Photo: VOV

The report outlines that the country is one of the few places in Southeast Asia to have avoided a recession caused by COVID-19 thanks to its capable management of the crisis coupled with sound economic policies. It is important now to work on reforms aimed at ensuring continued economic and social progress whilst keeping the economy resilient to both external and domestic challenges.

It notes that despite an increase, inflation remains well below levels recorded in many OECD countries, standing at 4.3% over the year to February for headline consumer price inflation, against 8.8% on average in OECD countries. At the same time, the openness of the national economy leaves it exposed to geopolitical uncertainties and potential supply chain disruptions.

The report highlights that the country has seen a dramatic reduction in poverty over the past three decades, bringing down its poverty rate from 80% in 1992 to 7% just before the COVID-19 crisis. Per capita GDP relative to the OECD average more than doubled over the past two decades, approaching 25%, cited VOV.

Nevertheless, for the years ahead it is likely that a rapidly aging population will start to weigh on economic growth and public finances, particularly as the nation will need to expand its low public pension coverage.

To continue lifting living standards it will be necessary to raise tax revenues to fund growing spending needs, including greater social protection coverage, while simultaneously boosting labor productivity and business dynamism and reducing labor market informality, according to the report.

Experts assessed that digital transition is also crucial to Vietnamese future prosperity. Digital innovations can be transformative for emerging markets as they can be applied and diffused more quickly than advances made in more traditional sectors. The Vietnamese Government aims to expand the digital economy to account for 30% of GDP by 2030, compared to approximately 7% of GDP at present, by improving quality infrastructure, e-government, and accessibility to 5G services.

Think Thanks underscored the importance of investing more in technical and vocational education to improve workers’ digital skills and opening telecommunications markets to foreign investors, in particular by accelerating the adoption and implementation of new legislation to reduce barriers to foreign entry and easing restrictions faced by foreign ownership.

The report, produced in conjunction with the Asian Development Bank, says reform priorities should also include easing administrative burdens on firms in a bid to improve competition and level the playing field between state-owned enterprises and private businesses.

Economists emphasized that the country should also seek to take bolder policy action aimed at achieving net zero emissions, through stronger investment in renewables and energy efficiency.

Big room for Vietnam, Uruguay to expand trade ties

National Assembly Chairman Vuong Dinh Hue’s visit to Uruguay is expected to open up opportunities for stronger economic and trade ties, and win-win cooperation between Vietnam and the Latin American country.

According to Deputy Minister of Industry and Trade Do Thang Hai, Uruguay is one of Vietnam's potential trade partners in Latin America. However, trade cooperation between the two countries remains modest and has yet to be commensurate with their potential.

According to the Europe-American Market Department under the Ministry of Industry and Trade (MoIT), two-way trade between Vietnam and Uruguay hit 190.5 million USD in 2022, up 106.5% year-on-year. Vietnam earned 102.9 million USD from exports to Uruguay while spending 87.6 million USD on imports from the Latin American nation, up 76.7% and 157.2%, respectively.

Uruguay's data showed that Vietnam's exports to the country in January 2023 reached more than 5.7 million USD, up 2.4% over the same period in 2022. Meanwhile, Uruguay's imports from Vietnam totaled over 1.6 million USD, down 48.17% year-on-year.

High per capita income, the development of the service industry, and the frequent shopping habits of Uruguayan people are considered as favorable factors for Vietnam's exports.

Notably, during the third meeting of the Joint Committee for Economic, Trade and Investment Cooperation of Vietnam and Uruguay on April 14 this year, the two sides agreed on many practical solutions to solve obstacles in bilateral trade and investment relations and proposed trade promotion measures to facilitate activities of the two countries’ businesses.

Deputy Minister of Industry and Trade Do Thang Hai and Uruguayan Deputy Minister of Foreign Affairs Nicolás Albertoni agreed to continue working closely to effectively implement the contents agreed upon at the meeting, towards the 30th founding anniversary of diplomatic relations between the two countries.

Uruguay is a potential market and one of its important partners of Vietnam in the region, Hai said, adding that the country has an important voice in Latin America as it is one of the founding members of the Southern Common Market (Mercosur - including Brazil, Argentina, Uruguay, and Paraguay), according to VNA.

The Joint Committee for Economic, Trade and Investment Cooperation of Vietnam and Uruguay on April 14. (Photo: the MoIT)

Hai said the two sides should further step cooperation within bilateral and multilateral frameworks; and focus on diversifying the structure of import and export products, promoting trade promotion activities, and supporting the business community in exploring the market and seeking business opportunities, thus further strengthening the bilateral trade.

At the meeting, the two sides also proposed new cooperation areas, including food safety, customs, science and technology, software, wood exploitation and processing.

To boost exports to the Uruguayan market, the MoIT advised Vietnamese businesses to actively seek market information and update economic-trade-investment policies of both countries through the MoIT, the Vietnamese Embassy in Argentina which is also in charge of Uruguay and Paraguay, the Embassies of Argentina and Uruguay in Vietnam, and trade promotion centers of provinces and centrally-run cities.

They should also actively participate in market survey activities, and face-to-face and online trade-investment promotion events with Uruguayan partners to seek business opportunities; pay heed to improving the quality and competitiveness of products and developing new products.

The MoIT, relevant ministries and sectors, and the Vietnam Trade Office in Argentina, Uruguay and Paraguay will provide market information, serve as a bridge connecting the Vietnamese business community with partners in these markets, and help address difficulties facing Vietnamese firms in making inroads into the countries.

Venezuelan FM greatly appreciates the comprehensive partnership with Vietnam

Vietnamese Ambassador to Venezuela Vu Trung My on April 25 presented a copy of the Credential Letter from President Vo Van Thuong to Venezuelan Foreign Minister Yván Gil Pinto.

Speaking during the Credential Letter presentation ceremony, Ambassador My respectfully conveyed greetings from Foreign Minister Bui Thanh Son to his Venezuelan counterpart Foreign Minister Pinto, affirming his best efforts in order to contribute to strengthening the time-honored and sound relations between the two nations for the benefit of the two peoples.

Vietnamese Ambassador to Venezuela Vu Trung My (L) and Venezuelan Foreign Minister Yván Gil Pinto (Photo: VNA)

Furthermore, Ambassador My proposed a score of measures aimed at promoting bilateral ties, especially political, economic, and trade links amid the two countries looking forward to the 35th anniversary of diplomatic relations ahead in 2024.

Upon receiving the copy of the Credential Letter, FM Pinto expressed great appreciation for the comprehensive partnership between both sides, as well as the socio-economic development achievements that Vietnam has recorded over recent years.

The Venezuelan FM suggested that the two sides continue to co-ordinate and agree on specific measures aimed at stepping up linkages across a variety of fields, especially economics, trade, and investment on a par with the traditional friendship between the two countries for the mutual benefit of the two peoples, VOV reported.

At the ceremony, FM Pinto congratulated and welcomed Ambassador My, saying that he will create all the best possible conditions for the Vietnamese diplomat to fulfill his tasks as a contribution to deepening the comprehensive partnership between two countries.

NA Chairman’s visit forms a new milestone in Vietnam - Cuba ties: former Cuban Ambassador

The official visit to Cuba by Vietnamese National Assembly (NA) Chairman Vuong Dinh Hue was a new milestone in the two countries’ fraternal relations and solidarity and also a contributor to the reinforcement of the bilateral friendship, said former Cuban Ambassador to Vietnam Fredesmán Turró González.

Talking to the Vietnam News Agency (VNA)'s resident correspondent in Havana after Chairman Hue’s visit, former Ambassador González, who is also Vice Chairman of Cuba - Vietnam Friendship Association, spoke highly of the trip’s outcomes, noting that the Vietnamese delegation’s activities have created conditions for the two countries’ agencies, sectors, and localities to share information and experience in not only parliamentary but also economic affairs.

NA Chairman Vuong Dinh Hue meets First Secretary of the Communist Party of Cuba and President of Cuba Miguel Díaz-Canel. (Photo: VNA)

The former Ambassador, who spent more than 20 years studying and working in Vietnam, emphasized that the two countries boast long-standing friendship, solidarity, cooperation, and mutual support in all political and economic aspects. The highest-ranking delegations of the Cuban and Vietnamese Parties, Governments, NAs, and organizations have frequently exchanged information and experience, which matches the level of relations, mutual sentiments, and mutual admiration between the two peoples.

Stressing the special significance of Chairman Hue’s visit, he considered it as well as the demonstration of the Vietnamese Party, NA, and people’s solidarity during the trip as a great source of support for the Cuban leaders and people in the process of national construction and safeguarding.

He noted the visit took place at a time when the two countries are celebrating the 60th founding anniversary of the Cuban Committee for Solidarity with South Vietnam and 50 years since late Cuban Commander-in-chief Fidel Castro visited Vietnam and the liberated zone in Quang Tri. Fidel Castro was the first and only foreign head of state to do so during wartime.

Former Ambassador González also underscored the importance of the agreements signed during the freshly concluded visit, adding that the most noteworthy deals were the one on increasing information and experience exchanges between the two parliaments and those on Vietnam’s engagement in helping Cuba guarantee food security, boost goods production, and change the energy structure.

Vietnam approves first traditional medicine to treat COVID-19

Vietnam has approved the first traditional medicine for treating respiratory tract viral infections, including flu and mild COVID-19.

Sunkovir, licensed by the Ministry of Health on April 12, was announced as the first to treat COVID-19 at the seminar on the effectiveness of traditional medicine products in preventing and treating COVID-19 and seasonal flu in Ho Chi Minh City on April 25.

Dr. Truong Thi Ngoc Lan, Deputy Director of the HCM City Traditional Medicine Institute and the research team’s member, said within three days of using Sunkovir, all patients experienced a rapid reduction in symptoms without any worsening.

None of the study's 1,115 COVID-19 patients who used Sunkovir experienced severe symptoms, VNA reported.

The research team on Sunkovir, the first traditional medicine to be licensed for treating respiratory tract viral infections in Vietnam. (Photo: VNA)

Moreover, Sunkovir significantly reduced the severity of symptoms such as coughs, shortness of breath, loss of smell and taste, nosebleeds, body aches, sore throat, runny nose, headache, fatigue, chest pain, sneezing, chills, sweating, and insomnia from the third day.

On average, patients recovered from all symptoms within seven days.

The medicine also reduced the need for corticosteroids, anticoagulants, antipyretics, cough suppressants, expectorants, antihistamines, antivirals, and gastrointestinal drugs.

Lan said Sunkovir is recommended for respiratory viral infections such as flu and mild COVID-19 in the early stages to reduce symptoms quickly. It can be combined with modern medical treatment regimes such as antipyretics, anti-inflammatories, pain relievers, cough suppressants, and antibiotics if necessary.

Dr. Huynh Nguyen Loc, Director of the HCM City Traditional Medicine Institute, said at the seminar that Sunkovir is the first and only traditional medicine to be licensed by the Ministry of Health in Vietnam.

This achievement results from the research team's efforts to demonstrate the safety and effectiveness of Vietnamese herbal products in the fight against COVID-19, with the determination of hundreds of Vietnamese doctors and pharmacists.

In addition to Sunkovir's effectiveness, the seminar updated the research results on the effectiveness of traditional medicine products in preventing and treating COVID-19 and seasonal flu.

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