Vietnam News Today (Aug. 22): Vietnam-Singapore Trade Surges in July

	Vietnam News Today (Aug. 20): Vietnam a Priority in China's Policy of Neighborhood Diplomacy
	Vietnam News Today (Aug. 21): Top Leader’s State Visit to China Successful in Every Aspect

At the talks.

Japan, Vietnam step up efforts to realize comprehensive strategic partnership

Vietnamese Deputy Minister of Foreign Affairs Nguyen Minh Vu and Japanese Senior Deputy Minister for Foreign Affairs Funakoshi Takehiro held talks in Hanoi on August 21 to compare notes on bilateral ties between the two nations.

Both sides showed their elation at the recent comprehensive and effective development of bilateral relations, notably the upgrading of the relationship to a comprehensive strategic partnership last year.

They stated that in addition to political trust and delegation exchanges at all levels, cooperation in economy, trade, investment, labor, education, and agriculture, among others, has also produced practical results, cited VOV.

Both sides are expanding collaboration to new areas like digital transformation and green transition, while their coordination at multilateral forums and international organizations has been strengthened, they added.

Funakoshi affirmed that the Japanese Ministry of Foreign Affairs desires to closely coordinate with the Vietnamese side in carrying out high-level agreements substantively and effectively to elevate the bilateral ties on a par with the new framework, and that it will make combined efforts to materialize the results reached at the 12th meeting of the Vietnam - Japan Cooperation Committee earlier this month.

Vietnam continues regarding Japan as a leading and long-term strategic partner, and hopes to work hand in hand in accelerating the implementation of the comprehensive strategic partnership, the Vietnamese diplomat said.

Both sides agreed to intensify exchanges and meetings at all levels and through flexible formats, and also improve the efficiency of bilateral dialogue mechanisms.

Vu used the occasion to convey invitations to Japanese leaders to attend the fourth Partnering for Green Growth and the Global Goals 2030 (P4G) Summit and the ASEAN Future Forum, scheduled to be held in Vietnam next year.

The two sides also exchanged views on measures to increase cooperation effectiveness in national defense, security, economy, official development assistance (ODA), investment, climate change response, green transition, and digital transformation.

The Vietnamese Government places great importance on and is making efforts to effectively implement high-level agreements with Japan, Vu told his guest. He suggested Japan provide new-generation ODA with preferential terms and more flexible, streamlined procedures for Vietnam, prioritizing key infrastructure projects.

He also asked Japan to soon determine loan commitments for the projects on infrastructure development, climate change response, and livelihood support for ethnic minorities in 11 northern mountainous and midland provinces of Vietnam.

Vu proposed the Japanese ministry coordinate with other Vietnamese ministries and agencies to simplify procedures and gradually work towards visa exemption for Vietnamese citizens.

At the talks, Funakoshi stated that Japanese investors consider Vietnam a priority destination, voicing his hope for coordination to stimulate ODA and investment ties between the two countries, and bolster bilateral cooperation within Japan's Asia Zero Emission Community (AZEC) initiative.

Hailing the contributions by the nearly 570,000-strong Vietnamese community to his country’s socio-economic development, the official said the Japanese Government will offer more favorable conditions for them to live, study and work there.

Host and guest also discussed regional and international issues of shared concern such as cooperation in the Association of Southeast Asian Nations (ASEAN), Mekong River, and East Sea issues. They consented to boost the coordination of stance and mutual support at international and regional forums like ASEAN, the United Nations, and the Asia-Pacific Economic Cooperation (APEC).

Vietnam-Singapore trade surges in July

The total import-export turnover between Vietnam and Singapore surged 20.91% year-on-year to more than 3.1 billion SGD (about 2.3 billion USD) in July, according to the Vietnam Trade Office in Singapore.

Notably, Vietnam’s exports to Singapore increased 36.25% to 763.9 million SGD, while import turnover went up 16.7% to over 2.38 billion SGD.

The country maintained its position as Singapore's 12th largest trading partner, with two-way trade turnover exceeding 18.32 billion SGD during the January-July period, up 9.02% over the same period in 2023, the office said.

Vietnam's three main export groups to Singapore in July posted growth, including machinery, equipment, phones and components and spare parts up 22.86%, reactors, boilers, machine tools and equipment, spare parts of these machines up 68.21%, and glass and glass products up 94.61%, according to VNA.

Producing household appliances at a factory of Panasonic Life Solutions Vietnam Co. Ltd in Vietnam-Singapore Industrial Park (VSIP) in Tan Uyen township, Binh Duong province. (Photo: VNA)

Strong growth was also recorded in other export groups such as iron and steel, representing a more than 12-fold rise, while optical machines, measuring instruments, medical equipment, watches, musical instruments, and accessories of all kinds also saw a three-fold increase.

Some commodities witnessed revenue declines, namely paper and paper products (down 35.86%) and garments (down 23.65%).

Regarding imports from Singapore, 16 out of 21 groups of commodities experienced positive growth, including machinery, equipment, mobile phones, components and spare parts of all kinds (up 30.84%); reactors, boilers, machine tools and equipment and spare parts of those machines (up 53.28%), along with petrol, oil and petroleum products (up 1.05%).

Commercial Counsellor Cao Xuan Thang, Head of the Vietnam Trade Office in Singapore, said that to better support Vietnamese enterprises in the coming time, the office will continue to update the latest policies of the island country, provide assistance to Vietnamese enterprises in trade promotion activities and increase the presence of Vietnamese goods in the city-state.

Working delegations from Singapore will get support to find sources of goods as well as promote industrial, trade and service investment in Vietnam, he added.

Belgium, Vietnam seek broader renewable energy cooperation

Vietnamese Ambassador to Belgium Nguyen Van Thao visited a wind power project in Hanzinelle - Gerpinnes in the Belgian province of Namur, holding a working session with experts to exchange views on the various challenges and opportunities for energy co-operation between the two nations.

This is part of wider efforts to boost renewable energy links between both sides, thereby demonstrating Vietnamese attention to Belgium's expertise and technology in the field of renewable energy.

As the nation boasts vast potential for renewable energy, it has become the focus of international partners' attention, especially as the country is striving to transition towards green energy, VOV reported.

Philippe Vermeulen, Chairman of Avalon Group said Belgium introduction the Hanzinelle/Gerpinnes wind power project (Photo: VNA)

Among the countries showing particular interest in Vietnam, Belgium has emerged as one of the most important partners. This collaboration not only brings about economic benefits, but also contributes to protecting the environment, reducing greenhouse gas emissions, and responding to the threat of climate change.

Leading Belgian energy corporations such as ELIA, Luminus, AVALON L E, and BESIX are all currently playing a significant role in implementing renewable energy projects in the nation.

Representatives from ELIA, which has extensive experience in operating power transmission systems, shared effective coordination ways among stakeholders, such as transmission system operators, construction units, railways, and urban traffic authorities in terms of implementing projects to upgrade and install power lines.

ELIA introduced approaches to minimize the environmental and community impact, while also ensuring that the project timelines remain unaffected.

Philippe Vermeulen, chairman of Avalon Group, said Belgium can apply many of Vietnam’s experiences, adding that they will also learn from the Vietnamese side’s valuable lessons from the development of renewable energy and grid management to create strong connections and co-operation between both sides.

Vermeulen also said that Avalon has supported ELIA in network management and development projects in Vietnam.

Tran Ngoc Quan, trade counselor and head of the Vietnam Trade Office in Belgium, introduced the Vietnamese energy development strategy up to 2030, highlighting the country’s vast potential for developing renewable energy, including wind power, solar power, and biomass.

Quan applauded the Vietnamese international co-operation potential within the framework of the Just Energy Transition Partnership (JETP), as well as the collaboration between the nation and the European Investment Bank (EIB) in mobilizing funding for renewable energy projects and hydrogen development.

Ambassador Thao also underlined strong Vietnamese potential in renewable energy with its over 3,000 km of coastline, expressing his hope that with Belgium's extensive experience in this field, Belgian companies will continue to partner closely with the nation, further contributing to developing a more sustainable, clean, and efficient energy system.

Close co-operation, experience, and technology sharing between the two countries are expected to be key to realize this potential, helping Vietnam to become one of the leading countries in renewable energy development in Southeast Asia, he said.

Vietnam economy recovers with strong development in service, industrial sectors

Vietnam’s economy has been recovering from the Covid-19 pandemic, with a GDP (gross domestic product) growth rate of 8.02 percent in 2022, 5.02 percent in 2023, and 6.44 percent in the first six months of 2024.

With the encouraging growth rate in the first half of the year, the government believes the growth rate for 2024 will be 6.5-7 percent, higher than the 6-6.5 percent set by the National Assembly.

The economic recovery in 2022-2023 was gained thanks to high growth rates of the service sector (10 percent in 2022, 6.82 percent in 2023 and 6.64 percent in the first six months 2024).

Also, industrial production and construction strongly recovered in the third quarter of 2023. The industrial production sector's added-value growth rate reached 6.86 percent in the fourth quarter of 2023 and 7 percent in the first six months of 2024, or higher than the GDP growth rates in the same period.

The growth rate was attributed to the strong development of the service sector and industrial production in the last three quarters.

The agriculture, forestry and fisheries sector also made a great contribution to high growth. In 2014-2019, the average annual growth rate of the sector was 2.67 percent. During the pandemic (2021-2022), the figure was 2.98 percent, and in 2023-June 2024, it was 3.38 percent. The figures show the increasing contribution of the sector to the national economy.

Unusual economic trends

There are some unusual trends related to economic indicators in their direct relationship with GDP growth.

First, regarding the relationship between the IIP (Index of Industrial Production) and industrial value added (VA), the IIP growth rate is always higher than industrial VA.

In 2016-2019, the average annual IIP and VA growth rates were 9.05 percent and 8.14 percent, respectively. In Covid-19 years, 2020-2021, the figures were 4.1 percent and 3.92 percent, respectively, and in 2022, they were 7.8 percent and 7.69 percent.

However, in 2023, the IIP growth rate unexpectedly dropped to just half of the VA growth rate (1.5 vs 3.02 percent). In the first quarter of 2024, the IIP growth rate continued to be lower than VA (5.9 vs 6.47 percent). In the second quarter, the relationship returned to normal (9.5 vs 8.55 percent).

Second, regarding the growth of the service sector, the VA growth rate based on 2010 comparable prices is lower than the revenue growth rate excluding price fluctuations, and lower than the service revenue growth rate based on current prices, cited VNN.

(Photo: Hoang Ha)

In 2020, the growth rates of the service sector were 2.34 percent (VA growth rate in accordance with 2010 comparable prices), -1.2 percent (revenue growth rate excluding price fluctuations) and 2.6 percent (revenue growth rate in accordance with current prices).

In 2021, the figures were 1.22 percent, -6.2 percent and -3.8 percent. As such, during the pandemic, the VA growth rate of the service sector in accordance with 2010 comparable prices was higher than the revenue growth rate in accordance with current prices and revenue excluding price fluctuations.

In 2022-2023, the growth of the service sector returned to normal. In 2022, the VA in accordance with comparable prices increased by 10 percent, revenue in accordance with current prices increased by 19.6 percent, and revenue excluding price fluctuations 15.6 percent.

In 2023, the growth rates were 6.82 percent, 9.6 percent and 7.1 percent, respectively.

However, the relationship became unusual again in the first six months of 2024. In the first quarter, the VA of the service sector grew 6.2 percent, higher than revenue excluding price fluctuations (5.1 percent). In the first half of 2024, the figures were 6.64 percent and 5.7 percent, respectively.

As such, after the VA in industrial production became abnormally high (IIP growth rate was low in 2023 and the first quarter of 2024), the VA increased abnormally.

In addition, the recent growth rate of the agriculture, forestry and fisheries sector is significantly higher than previously. These unusual trends occur when the national economy is in difficult period, and the economic growth rate is not as high as expected.

Vietnam shares efforts towards Asia Zero Emission Community

Vietnam’s economy has been recovering from the Covid-19 pandemic, with a GDP (gross domestic product) growth rate of 8.02 percent in 2022, 5.02 percent in 2023, and 6.44 percent in the first six months of 2024.

With the encouraging growth rate in the first half of the year, the government believes the growth rate for 2024 will be 6.5-7 percent, higher than the 6-6.5 percent set by the National Assembly.

The economic recovery in 2022-2023 was gained thanks to high growth rates of the service sector (10 percent in 2022, 6.82 percent in 2023 and 6.64 percent in the first six months 2024).

Also, industrial production and construction strongly recovered in the third quarter of 2023. The industrial production sector's added-value growth rate reached 6.86 percent in the fourth quarter of 2023 and 7 percent in the first six months of 2024, or higher than the GDP growth rates in the same period.

The growth rate was attributed to the strong development of the service sector and industrial production in the last three quarters.

The agriculture, forestry and fisheries sector also made a great contribution to high growth. In 2014-2019, the average annual growth rate of the sector was 2.67 percent. During the pandemic (2021-2022), the figure was 2.98 percent, and in 2023-June 2024, it was 3.38 percent. The figures show the increasing contribution of the sector to the national economy.

Unusual economic trends

There are some unusual trends related to economic indicators in their direct relationship with GDP growth.

First, regarding the relationship between the IIP (Index of Industrial Production) and industrial value added (VA), the IIP growth rate is always higher than industrial VA.

In 2016-2019, the average annual IIP and VA growth rates were 9.05 percent and 8.14 percent, respectively. In Covid-19 years, 2020-2021, the figures were 4.1 percent and 3.92 percent, respectively, and in 2022, they were 7.8 percent and 7.69 percent.

However, in 2023, the IIP growth rate unexpectedly dropped to just half of the VA growth rate (1.5 vs 3.02 percent). In the first quarter of 2024, the IIP growth rate continued to be lower than VA (5.9 vs 6.47 percent). In the second quarter, the relationship returned to normal (9.5 vs 8.55 percent).

Smoke released from a factory in Australia (Illustrative photo: Getty Images/VNA)

Second, regarding the growth of the service sector, the VA growth rate based on 2010 comparable prices is lower than the revenue growth rate excluding price fluctuations, and lower than the service revenue growth rate based on current prices.

In 2020, the growth rates of the service sector were 2.34 percent (VA growth rate in accordance with 2010 comparable prices), -1.2 percent (revenue growth rate excluding price fluctuations) and 2.6 percent (revenue growth rate in accordance with current prices).

In 2021, the figures were 1.22 percent, -6.2 percent and -3.8 percent. As such, during the pandemic, the VA growth rate of the service sector in accordance with 2010 comparable prices was higher than the revenue growth rate in accordance with current prices and revenue excluding price fluctuations.

In 2022-2023, the growth of the service sector returned to normal. In 2022, the VA in accordance with comparable prices increased by 10 percent, revenue in accordance with current prices increased by 19.6 percent, and revenue excluding price fluctuations 15.6 percent.

In 2023, the growth rates were 6.82 percent, 9.6 percent and 7.1 percent, respectively.

However, the relationship became unusual again in the first six months of 2024. In the first quarter, the VA of the service sector grew 6.2 percent, higher than revenue excluding price fluctuations (5.1 percent). In the first half of 2024, the figures were 6.64 percent and 5.7 percent, respectively.

As such, after the VA in industrial production became abnormally high (IIP growth rate was low in 2023 and the first quarter of 2024), the VA increased abnormally.

In addition, the recent growth rate of the agriculture, forestry and fisheries sector is significantly higher than previously. These unusual trends occur when the national economy is in a difficult period, and the economic growth rate is not as high as expected.

Vietnam News Today (Aug. 18): Party General Secretary And President To Lam Begins State Visit to China Vietnam News Today (Aug. 18): Party General Secretary and President To Lam begins state visit to China; Vietnam, US seek cooperation opportunities in energy, manufacturing, ...

Vietnam News Today (Aug. 19): Golden Opportunity in Online Exports Via International Branding Vietnam News Today (Aug. 19): Vietnamese top leader meets with Guangdong Party Committee Secretary; First super moon of the year to be observed in Vietnam ...