Vietnam News Today (Dec. 1): Vietnam Evolving to Manufacturing And R&D Hub With New FDI
	Vietnam News Today (Dec. 2): Vietnam, RoK Expand Tourism Cooperation

Ambassador Dang Hoang Giang, Permanent Representative of Vietnam to the United Nations (UN) congratulates his Lao counterpart.

Laos, Vietnam tighten special solidarity at UN

Ambassador Dang Hoang Giang, Permanent Representative of Vietnam to the United Nations (UN) led a delegation from the Vietnamese Representative Office in New York, to congratulate the Lao Delegation to the UN on the occasion of the 49th anniversary of the National Day of the Lao People's Democratic Republic (1975 - 2024).

In the atmosphere of friendship and solidarity between Vietnam and Laos, Ambassador Dang Hoang Giang warmly congratulated the important achievements that the Lao Party, State and people have achieved in socio-economic development and international integration.

The Ambassador particularly appreciated Laos' success in its role as Chair of the Association of Southeast Asian Nations (ASEAN) in 2024 in the context of many fluctuations in the international and regional situation, contributing to further strengthening the solidarity and the regional bloc’s centrality, as well as raising Laos' position and prestige in the international arena.

Giang affirmed his wish to continue promoting the tradition of close coordination and trust between the two delegations at the UN in the coming time, thus making practical contributions to carrying out the foreign policy of independence and self-reliance, enhancing the role of each country at multilateral forums, and at the same time constantly tightening the great friendship, special solidarity and comprehensive cooperation between Vietnam and Laos, cited VOV.

Appreciating the comradely and brotherly sentiments of his Vietnamese colleagues, Ambassador Anouparb Vongnorkeo, head of the Lao Permanent Representative to the UN sincerely thanked the Vietnamese Delegation for their close cooperation and effective support over the past time, especially during the time the Lao Delegation assumed the role of Chair of the ASEAN Committee in New York.

Vongnorkeo expressed his belief that Vietnam's foreign affairs achievements in recent times, including the contributions of the Permanent Mission to the UN, are an important foundation for Vietnam to enter a "new era, nation’s rising era", with the companionship and support of the neighboring nation.

Vietnam to lead Southeast Asia’s e-commerce revolution: IMARC report

Vietnam is set to lead Southeast Asia’s e-commerce revolution, given that this industry potentially drives national economic transformation, according to the latest report published by IMARC Group, a market research provider, on December 1.

The report said the global e-commerce market size is valued at 26.8 trillion USD in 2024 and is projected to reach 214.5 trillion USD by 2033. From established giants in the US and Europe to fast-paced markets in Asia, the e-commerce revolution is creating a competitive marketplace that transcends geographical boundaries.

With favorable regulatory conditions, expanding foreign investments, and enhanced internet accessibility, Vietnam’s e-commerce ecosystem is poised to witness sustained expansion, transforming it into a regional powerhouse in the digital economy. E-commerce accounts for over 60% of Vietnam’s digital economy, while a significant chunk of the remaining 40% share is captured by ride-hailing and online media. In addition, the country’s digital economy is estimated to reach 220 billion USD by 2030, portraying ample opportunities for global investors. Projections indicate that Ho Chi Minh City and Hanoi will develop to become significant hubs, it said.

Vietnam is also recognised as one of the most conducive legal environments for e-commerce in the ASEAN. According to a survey by Facebook and Bain & Company, Vietnam is forecast to surpass the other ASEAN nations and become the fastest-growing e-commerce market in the region by 2026.

The Vietnamese Government is encouraging a cashless environment to limit cash transactions to below 10% of total payments. It has recently approved a national e-commerce growth master plan in line with Fourth Industrial Revolution strategies. The plan is aimed at establishing a digital economy driving national digital transformation.

According to the International Monetary Fund (IMF), Vietnam is projected to rank third in Southeast Asia in terms of GDP by 2025 with 571.12 billion USD, after Indonesia (1.63 trillion USD) and Thailand (632.45 billion USD). Also, Vietnam’s economy is predicted to surpass Thailand’s after 2028. This trend is projected to significantly augment Vietnam’s e-commerce industry growth by increasing buyer spending power, attracting larger foreign investments, and reinforcing the country’s position as a regional digital economy leader.

As per IMARC estimates, Vietnam’s e-commerce industry is projected to exhibit a compound annual growth rate of 28% from 2025-2033. Its progressing e-commerce landscape is characterised by successful local platforms including Tiki, Sendo, and Thegioididong, driven by investments from Japan, the US, Germany, China, the Republic of Korea (RoK), and Singapore.

Singapore, a regional economic hub, is connected closely to Vietnam’s e-commerce market via companies such as Shopee and Carousell. Singapore-based investors, including Temasek, GIC, and others have funded Vietnamese e-commerce startups, according to VNA.

Illustrative image (Photo: VNA)

The RoK, with its robust technological capabilities and increasing interest in Southeast Asia, is increasingly targeting Vietnam’s e-commerce arena. Korean e-commerce platform Coupang is exploring potential entry into the Vietnamese industry, harnessing its expertise in logistics and tech-driven solutions. In addition, Korean conglomerates such as Samsung and LG are investing in e-commerce infrastructure to promote their electronic products in Vietnam.

The report highlighted seven factors behind Vietnam’s appeal to the world, including high growth potential driven by a young and tech-savvy population, favorable Government policies, increasing foreign direct investment, and a strong export-focused economy; favorable investment climate such as relaxed foreign investment regulations, tax incentives, reduced tax rates, flexible labor policies, improved labor relations, support for public-private partnerships, and other policies to create a business-friendly environment.

Others include Vietnam’s strategic location that makes it an exemplary gateway to other regional markets, Government support for digital transformation, entry into free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), and a young and skilled workforce that is well-versed in technology and can adapt to the demands of the e-commerce industry.

Vietnam willing to offer optimal conditions for foreign investors

Vietnam is always ready to create favorable conditions for foreign businesses, including the United Overseas Bank (UOB), to expand their investment activities, National Assembly (NA) Chairman Tran Thanh Man said at a meeting on December 2 with Wee Ee Cheong, deputy chairman and chief executive officer of UOB – one of the world’s top banks, as part of his official visit to Singapore.

Hailing the bank's investment activities in the Vietnamese market since 1993, NA Chairman Man said that the country prioritizes the development of green finance, high technology, renewable energy, and green energy. Indeed, it always stands ready to create favorable conditions for foreign businesses, including UOB, to expand their investment activities in these sectors.

As the nation is researching the establishment of international financial centres in Ho Chi Minh City and Da Nang, it hopes to learn from the experiences of other countries, including Singapore, on this model.

Informing the UOB leader of the Vietnamese legislature’s approval of the amended Law on Credit Institutions and the amended Land Law, the top Vietnamese legislator affirmed that timely amendments and enactment of laws, especially those related to investment and business, aim to provide a favorable legal framework for both domestic and foreign investors in which to promote production and business activities in the nation.

He noted that with its strengths in aviation, seaports, and finance-banking, Singapore currently makes up the country’s fourth-largest trade partner in ASEAN and has more than 3,800 active investment projects totaling US$81 billion in the nation, VOV reported.

At the meeting between Chairman of the Vietnamese National Assembly Tran Thanh Man (R) and Wee Ee Cheong, Deputy Chairman and Chief Executive Officer of United Overseas Bank (UOB).

Cheong emphasized that Vietnam always represents one of the top markets where UOB seeks to establish long-term ties and investment relationships.

As the only Singaporean bank operating in the Vietnamese market, UOB aims to further increase its presence by opening a branch in Ho Chi Minh City, which is one of Vietnam's future international financial hubs. The goal is to continue providing financial services to foreign-invested businesses which have been, or will be, operating and doing business in the country, thereby contributing to generating more jobs for the local workforce.

He voiced his hope and expectations that the group will continue to receive support and facilitation from the Party, State, and especially the NA of Vietnam in promoting and expanding effective and successful investment and business activities in the country.

HCM City serves as bridge for Vietnam – Thailand cooperation: Official

Ho Chi Minh City is committed to serving as a bridge boosting the friendship and close cooperation between Vietnam and Thailand, stated Vice Chairman of the municipal People's Committee Vo Van Hoan at a ceremony marking the 97th anniversary of Thailand's National Day (December 5, 1927 - 2024) in the city on December 2 evening.

Speaking at the event, held by the Thai Consulate General, Hoan expressed his belief that with the spirit of cooperation and solidarity, the two countries will continue to overcome challenges and seize opportunities to achieve greater accomplishments.

The official showed his delight at the flourishing relations between the two countries, particularly in economy, trade, logistics, energy security, and climate change response, which have helped strengthen supply chains and foster sustainable development.

In addition, cultural exchanges, and tourism and educational cooperation have provided new momentum, contributing to further strengthening the bonds and cooperation between the people of the two countries, he noted, describing the progress as a demonstration of the shared commitment to building a better future, cited VNA.

Vice Chairman of the HCM City People's Committee Vo Van Hoan speaks at the event. (Photo: sggp.org)

According to Hoan, Thailand is currently a key partner of HCM City, especially in terms of trade, investment, culture, and tourism. Cultural events and people-to-people exchanges held by Thailand in the city have fostered mutual understanding and deep connection between the two peoples.

The southern metropolis values the contributions of the Thai community here and is confident that this relationship will continue to be strengthened and grow further in the future, he affirmed.

Consul General Wiraka Moodhitaporn stressed that the bilateral relationship is built on a shared history and common prosperity, with cooperation extending across all areas from politics to economy, trade, investment, and people-to-people exchanges.

The “Thailand Week” in HCM City, one of the crucial events to be held by the Consulate General early 2025, along with many others throughout the year, will serve as an important foundation for future cultural and economic exchanges between the two sides, she said.

The diplomat affirmed that the Consulate General, along with Thai government agencies in HCM City, are committed to promoting an effective partnership between the two countries at all levels and encouraging Thai investors to make contributions to Vietnam's socio-economic development.

Vietnam prepares for first offshore wind power project

It will take at least three years to build an offshore wind power farm and put it into operation, which means that construction of the farm needs to begin in 2027.

Under the eighth national power development plan for 2021-2030 (Plan 8) which was approved in May 2023, Vietnam strives to have 6,000MW of offshore wind power capacity by 2030. However, to date, no offshore wind power project has been licensed.

Many investors have conducted research to seek opportunities to develop offshore wind power, but no headway has been made. Some of them have left as they felt discouraged.

At the recent 2024 Green Economy Forum and Exhibition, EuroCham’s chair Bruno Jaspaert noted that nothing has changed except Plan 8 approval and the first steps taken to establish an offshore wind power market.

“European enterprises face difficulties deploying their first offshore wind power projects in Vietnam. In fact, projects just remain on paper, while nothing has been made in reality,” he said.

Plan 8 shows Vietnam’s great ambitions in developing green energy, and the country needs to take prompt action to reach these ambitious goals.

“The licensing must be ready and all obstacles need to be solved within the next six months to be able to reach the goals,” he said.

The Ministry of Industry and Trade (MOIT), in its latest report, cited international practice as pointing out that in the first period of developing new types of energy, the investment rate and electricity production cost are always higher than that of traditional energy sources.

In order to ensure the feasibility of the new energy investment model, the draft law compiled by MOIT sets policies on preferences and support offered to every type of renewable energy to ensure reasonable power development that fits socio-economic conditions in each development period.

The ministry believes there should be investment incentives and groundbreaking mechanisms for offshore wind power development.

One of the preferences suggested by MOIT is to have the electricity buyer (Electricity of Vietnam, or EVN) and sellers negotiate an agreement on the minimum electricity output EVN will purchase from every project, VNN reported.

Illustrative photo (CIP)

In addition, MOIT suggested the exemption of sea area rentals and land use fees from the time of the investment and construction period to the time that offshore wind power farms can generate electricity; a preferential corporate income tax rate; and policies on support for self-produced and self-consuming electricity systems using renewable energy.

MOIT emphasized that offshore wind power is a new field for Vietnam and there have been no projects in this field. The exploitation and use of offshore wind power are covered by many laws and put under the management of different ministries and branches.

The beginning

Mark Hutchinson from GWEC (the Global Wind Energy Council) complimented the draft law on electricity, saying that it was progressive.

He applauded the idea of Vietnam’s small and medium sized enterprises cooperating with experienced international partners to develop offshore wind power, which is similar to what is happening in Vietnam’s oil and gas sector.

He suggested that the government allow SOEs to cooperate with international developers, and that the National Assembly ratify the Law on Electricity at the ongoing session.

“International partners can provide professional knowledge, experience, technological capability, capital access capability and supply chains, while Vietnamese businesses have political and cultural understanding, as well as the capability of building a domestic supply chain,” he said.

EuroCham chair Jaspaert emphasized the importance of SOEs (state owned enterprises) in developing the first offshore wind power projects in Vietnam.

He went on to suggest that Vietnam can consider experiences from Europe. Denmark, for example, accelerated the development of offshore wind power, and the UK has lessened its reliance on fossil fuels.

“I believe there are many examples from Europe to which Vietnam can refer to realize that it needs to promptly build a clear and transparent legal framework, and policies to support offshore wind power,” he said.

He suggested that the participation of foreign developers in offshore wind power projects in Vietnam will not only bring technological support but also huge capital that will ensure implementation in accordance with international standards.

PetroVietnam Technical Services Corporation (PTSC) has suggested that Vietnam could consider the development model of Taiwan (China), under which offshore wind power would develop in three phases. The first phase is for pilot projects. The second phase is for development with the state’s support. The third phase is competitive market development.

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