Director of the Ministry of Industry and Trade’s Asian-African Market Department Tran Quang Huy speaks at the event. (Photo: VNA)

Vietnam, UAE advised to tap logistics cooperation potential

Effective logistics cooperation with the UAE will play a significant role in promoting Vietnam's trade exchange with the Middle East and other regions around the world, Director of the Ministry of Industry and Trade’s Asian-African Market Department Tran Quang Huy said at a workshop in Hanoi on August 14.

The workshop on exploring the potential for such collaboration between the two countries was co-organized by the ministry and the World Logistics Passport (WLP) – a global initiative led by Dubai – amidst the sides’ celebration of their 30th anniversary of diplomatic relations.

At the event, UAE Ambassador to Vietnam Bader Abdulla Al Matrooshi highlighted that the UAE is Vietnam's largest export market in the Middle East, while Vietnam ranks among the top 10 largest import partners of the UAE globally. Between 2018 and 2022, their bilateral trade was kept at 5 billion USD annually, accounting for about 25% of the total import-export turnover between Vietnam and the Middle East.

Manager of the WLP Global Hubs and Partners Abdulla Alsuwaidi assessed that Vietnam, strategically positioned as a transit and production centre in Southeast Asia, will be an important Hub within the WLP network. The WLP has added the nation to its list of logistics and trade hubs in the region, referred to as Hubs.

The workshop saw the signing of cooperation agreements between the WLP and nine Vietnamese business partners, cited VNA.

Huy expressed his hope that through collaboration activities with the WLP, Vietnamese firms and organizations will gain significant benefits in cargo transport and logistics and expand operations, serving better competitiveness of Vietnam's import-export goods and services.

The WLP is a global, private sector-led, initiative designed to smooth the flow of global trade, unlock market access through the creation of new trade routes and provide economic efficiencies to members. To date, 29 countries have registered to participate in the network.

New visa policies and extended stays promise high hopes for peak tourism season

With more lenient visa regulations and extended stays for international visitors, promising prospects emerge for the impending peak tourism season of tourism in Vietnam.

Starting from August 15, the updated laws for Vietnamese citizens' exit and entry, as well as for foreigners' entry, exit, transit, and stay in Vietnam, will bring important changes to the rules for visas and how long visitors can stay.

One key change is that tourists with electronic visas (e-visas) will now be allowed to stay for up to 90 days, instead of the previous 30 days. This means they can enter and leave Vietnam multiple times within those 90 days, without needing to apply for a new visa each time. Also, citizens from countries that Vietnam allows to enter without visas will now be allowed to stay for up to 45 days, up from the previous 15 days. The rules for issuing and extending visas will follow the established guidelines.

Vietnam's National Tourism Administration, part of the Ministry of Culture, Sports, and Tourism, together with experts in tourism, believe that these positive changes will greatly help the growth of Vietnam's tourism. More visitors from other countries are expected to arrive, which could lead to exciting investment opportunities.

In the first seven months of 2023, almost 6.6 million tourists visited Vietnam, close to the goal of 8 million for the whole year. More growth is expected during the busy year-end season, according to VNS.

International tourists in Phan Thiet City. Photo: VNS

A spokesperson from Agoda, an online travel platform, reported a substantial surge of 33 per cent in searches for information about Vietnam's visa renewal policy among international visitors during the two weeks following the National Assembly's approval of the new regulations.

Leading this surge, visitors from France have shown remarkable enthusiasm, driving a 72 per cent increase in demand for accommodations in Vietnam compared to two weeks ago. Likewise, tourists from the Netherlands, New Zealand, Germany, and the United States have exhibited a notable rise of 38-45 per cent in their interest towards Vietnamese tourism.

Nguyen Thanh Son, Deputy Director of Benthanh Tourist International Centre, said that the company had reached out to several partners in key markets such as Romania, the Netherlands, Germany, France, and the US to inform them about Vietnam's new visa policy.

All partners had received this news with great enthusiasm, he said.

However, Son said tourist companies were all waiting for detailed guidelines before collaborating with their partners to devise new travel itineraries, rejuvenate our offerings, and embark on marketing initiatives to attract tourists.

Cao Tri Dung, Chairman of the Board of Directors at Vietnam TravelMart Joint Stock Company said that the new visa policy endorsed by the National Assembly would bring about a fundamental transformation in the profile of guests and the service infrastructure within the tourism sector.

The trend would exert an influence on the service system, necessitating adjustments to align with the novel policy. The policy, in turn, would create favourable circumstances to enhance the overall competitiveness of Vietnamese tourism, as well as localities, in tapping into international visitors.

According to Nguyen Trung Khanh, Director of the Vietnam National Tourism Administration, while the more lenient visa policy is important, it alone cannot fully enhance Vietnam's appeal to tourists, improve its competitiveness, and captivate international markets. Achieving these goals requires a coordinated approach involving a range of complementary solutions.

The industry as a whole should prioritise crafting unique and appealing tourism products, complemented by robust marketing and promotional initiatives targeted at key markets.

Employing systematic and professional strategies to harness substantial potential is essential. Ensuring effective destination management, particularly in terms of security and safety, plays a pivotal role in delivering a positive experience to travelers exploring the country.

Concurrently, collective efforts are necessary to train tourism personnel, aligning with the demands for both quantity and quality, thereby elevating service standards to cater to diverse visitor needs. Furthermore, the widespread integration of digital transformation and information technology within tourism operations must be advanced in a harmonized manner.

Careful attention should be given to all policies that contribute to enhancing the overall travel experience in Vietnam.

Considering the current rate of growth, the tourism industry necessitates an annual infusion of 40,000 fresh employees, in addition to retraining 25,000 individuals. However, educational institutions presently only graduate 20,000 students per year.

The proportion of proficiently trained personnel within the tourism sector remains inadequate, encompassing merely 43 per cent of the total workforce, with almost half displaying a lack of competence in foreign languages.

Conversely, the skill level of tourism workers in Vietnam lags behind that of other nations. Notably, hotels in Vietnam exhibit significantly lower productivity than their counterparts in destinations such as Singapore, Japan, and Malaysia. This discrepancy may impede the ability of local workers to compete, especially given the considerable number of skilled tourism professionals from the Philippines, Thailand, Indonesia, and Singapore seeking opportunities in Vietnam.

Addressing this issue mandates a resolute commitment to enhancing the competencies and proficiencies of Vietnam's tourism workforce in the upcoming years.

Vietnam expects stronger FDI inflows with large-scale projects

Foreign direct investment (FDI) inflows into Vietnam have gradually recovered with many large-scale investment projects following the COVID-19 pandemic as well as political and economic uncertainties in the world.

Several days ago, the south-central province of Binh Thuan granted an investment license to a series of gas and electricity projects using liquefied natural gas (LNG), enabling the implementation of four large-scale projects invested by Vietnamese and foreign businesses.

Accordingly, Son My electricity centre project, including Son My 1 and Son My 2 power plants, will have a total investment of US$4 billion, while Son My LNG Terminal project will be implemented at a cost of nearly US$1.34 billion.

Meanwhile, Secretary of the Party Committee of Bac Ninh Nguyen Anh Tuan has had a working session with Chen Tao, Chairman of China’s Victory Giant Technology Group - a producer of electronic components and semiconductors - on the firm’s plan to construct a factory in the northern province.

According to Chen, his company has chosen Vietnam-Singapore Industrial Park (VSIP) Bac Ninh as the location for its 400-million-USD factory, which is designed to produce about US$1 billion worth of products each year.

After a project valuing more than US$1.6 billion of Amkor Group that is scheduled to be put into operation later this year, Bac Ninh is welcoming another large-scale project in the field of semiconductors, reported VNA.

Production at Foster Electric Bac Ninh Co., Ltd at VSIP Bac Ninh.(Photo: baodautu.vn)

Other localities across the country are also working hard to call for FDI. The central province of Nghe An has recently granted an investment licence to Innovation Precision Vietnam Ltd. of China to implement a 165-million-USD project on aluminum alloys for consumer electronics manufacturing and green energy, which will become operational in November 2024.

Presenting a report in the Government's recent meeting, Minister of Planning and Investment Nguyen Chi Dung said that FDI inflows into Vietnam have gradually recovered.

He noted that in July, Vietnam received over US$2.8 billion of FDI, a rise of nearly 9% year on year, raising the total amount in the first seven months of this year to US$16.24 billion, up 4.5%. Of the total, US$11.58 billion had been disbursed, a rise of 0.8% over the same period last year.

Director of the Foreign Investment Agency under the Ministry of Planning and Investment Do Nhat Hoang said that the situation will be even better in the time to come.

A report released by HSBC in mid-July showed that FDI has still been poured into Asia, including Vietnam. The majority of investment projects are in the fields of manufacturing, it said.

However, EuroCham's Business Climate Index (BCI) for Vietnam in the second quarter of this year pointed to challenges that European investors in Vietnam are facing, including those from the infrastructure system and administrative procedures. It said that investors are also worried about the implementation of the global minimum tax rate.

It also underlined that the transition of production activities from China to Vietnam is slowing down, requiring the country to make timely response.

Minister Dung said that Vietnam will continue to complete mechanisms and policies to give non-tax support and incentives to foreign investors in the context of the global minimum tax rate application, thus creating competitive advantages to attract more large-scale projects using high technologies.

Tourism market heating up ahead of four-day national holiday

Vietnamese people will enjoy four days off work during the upcoming national holiday period which is set to start on September 1, offering families and groups of friends the chance to go on a last tour before the start of the new school year.

Resorts close to Hanoi fully booked

A lot of people have been searching for information about inbound and outbound tours to draw up a schedule for the upcoming holiday since the middle of August.

Ngan Giang, a resident of Hanoi, says she has looked for a deserted destination to enjoy a short trip with her family for days, although she has yet to find a favorite venue as most of the tourist attractions close to Hanoi have fully been booked.

“There have no rooms for rent at resorts in Hanoi’s outlying districts, as well as in neighboring localities such as Vinh Phuc, Hai Phong and Hoa Binh,” says Giang.

“Some homestays and villas have rooms available, but they are either in remote areas or much expensive. We have not come to a decision yet,” she adds.

Nguyen Van Hieu, general director of Vitamin Tours, predicts that the number of travelers for this year’s National Day holiday will increase considerably compared to last year as a result of the favorable weather conditions and an extended holiday.

“Most tourists choose a 4 to 5-day tour in the country or abroad. The two-day and one night tours near Hanoi and Ho Chi Minh City are also much sought after by many tourists,” says Hieu.

However, there has yet to be a sharp rise recorded in the number of tour and room bookings in several major tourist cities, including Quang Ninh, Nha Trang, Da Nang, and Vung Tau, as Vietnamese people normally tend to make their bookings close to the departure date, VOV reported.

The tourism industry is expected to make a big profit when Vietnamese people will have a four-day holiday, starting on September 1.

“The number of passengers booking domestic flights or international tours has only reached 20-30% of the plan, but it will definitely increase sharply when the holiday is drawing near," confides Hieu.

According to the travel expert, hordes of domestic tourists are due to flock to coastal tourist destinations in Hai Phong, Quang Ninh, Da Nang, Nha Trang, and Phan Thiet. Meanwhile, mountainous localities that enjoy a cool climate like Sa Pa and Ha Giang in the north will be chosen by many tourists in order to avoid the heat.

Diverse tours at attractive prices

In an effort to further stimulate tourism demand, travel firms offer not only a variety of tour options and routes, but also various price incentives and gifts.

Information from tourism firms indicates that tours lasting for three days and two nights from Hanoi to Sa Pa, Mu Cang Chai and Ha Long cost VND2.7 million, VND2.4 million, and VND3.6 million, respectively. Meanwhile, four-day and three-night tours from Hanoi to Nha Trang and Da Nang cost VND5.7 million and VND4.9 million, respectively.

Doan Thi Thanh Tra, marketing and communication director of Saigontourist, reveals that the firm is expected to serve about 30,000 visitors during the coming National Day holiday. To meet the various needs of visitors, Tra says Saigontourist has created roughly 100 domestic and international tours, priced starting from only VND3.49 million per person, with a primary focus on domestic tours.

Along with domestic tours, international tours are also being offered at attractive prices. Pham Duy Nghia, director of Vietfoot, explains that Vietnamese travelers have tended to go abroad recently, particularly as the cost of travel to some countries such as Thailand, Singapore, and Malaysia is equal to or even lower than domestic tours. Indeed, it gives visitors the chance to experience four or five-star flight services and stay at three of four-star hotels.

Destinations in Japan and the Republic of Korea are also popular among tourists as it is the autumn period and the weather is perfect for guests to enjoy.

Meanwhile, longer market routes and longer tours to destinations such as Northern Europe or Australia, are also itineraries of great interest to middle-aged travelers.

HCM City hopes for stronger ties in innovation, technology with Israel

Chairman of the HCM City People’s Committee Phan Van Mai received visiting Israeli Minister of Economy and Industry Nir Barkat on Monday, noting that Israel is a partner that his city wishes to learn from and cooperate with in the fields of innovation and technology.

The host official said HCM City hoped to be the locality that implements cooperation between the Vietnamese and Israeli Governments, especially in the two above realms, cited VNS.

Chairman of the HCM City People’s Committee Phan Van Mai (right) and Israeli Minister of Economy and Industry Nir Barkat had a meeting on Monday. Photo: VNS

The southern economic hub of Vietnam was working to become an innovation center in the region, he noted, adding that it has sufficient space and room to develop connections in technology, startup, and innovation with Israeli partners.

Mai suggested that on the basis of the Governments’ cooperation, an agreement on an innovation partnership be built between HCM City and Israeli partners.

The two sides could also promote investment and trade ties while working together to transfer agricultural techniques and technologies, along with new solutions and technologies for climate change response, he added.

For his part, Barkat said he was impressed with the dynamic development of Vietnam, including HCM City.

He held that the recent signing of the Vietnam-Israel free trade agreement would open up many opportunities for mutually beneficial development cooperation, particularly in the areas Israel is strong at such as startup, innovation, and technological solutions to global issues like high technology development, agriculture, climate change, and urban governance.

HCM City in particular and Vietnam in general should build startup and innovation support centers to attract startups, the minister went on, adding that Israel is ready to share its experience in this regard and other fields of its strength such as hi-tech farming and technological solutions.

He also expressed his hope that the city would enhance cooperation with Israeli partners, assist Israeli businesses in marketing and distributing technological products and solutions, and increase bilateral trade, especially in the goods his country has a high demand for such as farm produce and consumer products.

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