Vietnam News Today (Jan. 16): Positive Economic Outlook For Vietnam in 2024

Photo: VOV

Positive economic outlook for Vietnam in 2024

There are sanguine economic prospects ahead for Vietnam this year as foreign direct investment (FDI) inflows are anticipated to be further poured into the country over the course of 2024, especially in the semiconductor chip and high technology field, according to industry insiders.

Ahmed Yeganeh, country head of Wholesale Banking at HSBC Vietnam, expressed his optimism about Vietnamese growth prospects over the coming years thanks to a recovery occurring in the country’s major trading partners this year.

The HSBC representative also described demographics as one of the country’s main advantages, saying Vietnam has benefited from a young and growing population with a rising urbanization rate and a fast-growing middle-class amid the North Asian region facing population declining and aging.

Recent statistics also indicate that many Taiwanese (China) and Republic of Korea (RoK) electronics manufacturers have moved production facilities to Vietnam. Several global tech groups such as Intel and Amkor have also expanded their assembly and manufacturing facilities, opening up opportunities for further investment in the high-tech field in the country.

Google and Temasek also forecast that the Vietnamese Internet economy will reach a value of US$45 billion by 2025.

In fact, FDI attraction last year surged by 32.1% to nearly US$36.61 billion, representing the highest and impressive growth rate since the outbreak of COVID-19 pandemic in early 2020, cited VOV.

According to the General Statistics Office, these positive results can be attributed to the country’s improved investment climate, the Government’s economic diplomacy, and the recent lifting of the country’s comprehensive strategic partnership with both Japan and the United States.

These factors are therefore expected to continue providing a fresh impetus for further high-quality investment in Vietnam in 2024 and beyond.

Experts pointed out that Vietnamese involvement in new-generation free trade agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU – Vietnam Free Trade Agreement (EVFTA) have also created favorable conditions for the country to attract foreign financiers to expand their investment opportunities locally.

Most notably, these investors have maintained their confidence in the country’s macroeconomic stability, as well as open and transparent business climate.

Moreover, the Government has always supported the business community to overcome challenges and develop production with fiscal and monetary policies being implemented effectively.

These factors are forecast to exert a positive impact on foreign investors’ decision to make new moves and expand existing projects in the Vietnamese market shortly.

However, Minister of Planning and Investment Nguyen Chi Dung admitted that although Vietnam remains a global bright spot in attracting FDI, linkages between the foreign-invested sector and domestic enterprises remain weak, which has not facilitated technology transfer or improved the country’s position in global value chains.

Dung affirmed his ministry would finalize the human resource training project for the chip and semiconductor industry soon in a bid to seize upon opportunities and projects to develop the field in the coming time.

The strategic goal is to green the economy and improve the internal capacity and competitiveness of the economy, he said.

Vietnamese PM’s visit to Romania marks milestone in bilateral ties

Vietnamese Prime Minister Pham Minh Chinh’s upcoming visit to Romania is expected to mark a milestone in the bilateral cooperative relations, helping to enhance understanding of each other’s priorities and interests, Romanian Ambassador to Vietnam Cristina Romila has said.

Talking to the press, the ambassador held that the visit will continue to promote bilateral dialogue at the Prime Minister level, underlining that it will be a highlight of close ties between the two countries' people, which has been the foundation for the bilateral relationship over the past 74 years.

The visit will prompt new progress in the implementation of joint projects and the building of bilateral legal cooperation frameworks, she said.

The diplomat underscored that the fruitful cooperation between the two countries over the past five years has affirmed the deep friendship between Vietnam and Romania. The two sides joined hands in setting major challenges such as the COVID-19 pandemic, and made joint efforts to evacuate more than 1,000 Vietnamese citizens from conflict areas in Ukraine.

Romila noted that along with meetings between Romanian President Klaus Werner Iohannis and Vietnamese PM Pham Minh Chinh on the sidelines of international events, the bilateral political-diplomatic relations have seen new progress.

Particularly, when Romania held the Presidency of the European Council, the EU-Vietnam Free Trade Agreement (EVFTA) and EU-Vietnam Investment Protection Agreement (EVIPA) were signed, she said, adding that Romania was one of the first EU members to ratify the IVIPA, according to VNA.

Romanian Ambassador to Vietnam Cristina Romila. (Photo: VNA)

At the same time, people-to-people diplomacy between the two countries has been promoted after the COVID-19 pandemic, along with cultural, academic and business exchanges. Representatives from 30 Romanian universities have visited Vietnam over the past two years. The Romanian Bucharest Symphony Orchestra performed in Hanoi and Da Lat in 2022 and 2023. A number of Romanian business delegations also visited Vietnam to seek partnership opportunities, helping to diversify bilateral economic cooperation, the diplomat noted.

Regarding major collaboration areas and priorities for the bilateral partnership in the coming time, the ambassador underlined that the 17th meeting of the Vietnam-Romania Joint Committee for Economic Cooperation last November achieved fruitful results. The two sides agreed on important cooperation mechanisms in areas of mutual interest such as trade, agriculture, sanitation, energy, labor, science, technology and culture, she said.

Romania can become a gateway for Vietnamese goods to penetrate into Europe, while Vietnam can support Romania to enter the ASEAN market, the ambassador said.

She stressed the need for the two sides to optimize the efficiency of the EVFTA to further open the doors for each other and draw more investment in areas of shared interest.

Vietnamese people prefer outbound tours during Lunar New Year holiday

Many Vietnamese travelers have chosen outbound tours to celebrate the upcoming Lunar New Year holiday, known locally as Tet, according to representatives of local tour operators.

A representative from the Vietravel Hanoi branch revealed that the number of tourists booking foreign tours during Tet has doubled compared to domestic tours. Indeed, trips to Europe, the Republic of Korea (RoK), Japan, Thailand, and Singapore are all nearly fully booked.

Specifically, nearly 11,000 holidaymakers have registered for foreign tours, doubling the number of visitors choosing domestic tours, said Vietravel Hanoi.

The rise in the number of outbound tours can largely be attributed to escalating domestic airfares during Tet, which are up about 15% to 30% compared to last year, especially for flights between Hanoi and Ho Chi Minh City, which eventually fueled tour prices, according to industry insiders.

Bui Thanh Tu, marketing director of BestPrice Travel, revealed that two thirds of the firm’s customers have booked tours abroad, with Taiwan (China), the RoK, Japan, Thailand, Australia, and Europe emerging as popular destinations, while only one third have registered for domestic tours, cited VOV.

Many Vietnamese people prefer outbound tours during the lunar New Year holiday.

Tran Thi Bao Thu, communications director of Vietluxtour Travel Company, pointed out that the outbound tourism market has become vibrant with popular tours to Southeast Asian destinations such as Thailand, Malaysia, and Singapore, as well as Northeast Asian countries like Taiwan (China), Japan, the RoK, and China

Experts said the inbound tourism market is also expected to thrive moving forward thanks to effective promotional activities which have taken place in the past year coupled with favorable new visa policies.

Furthermore, many Vietnamese destinations such as Ba Na Hills, Hoi An Ancient Town, Sa Pa, Phu Quoc, and Ha Long Bay have all continued earning international recognition recently.

Vietnam, Cuba nurture special friendship

The Ho Chi Minh City Union of Friendship Organization (HUFO) on January 15 held a gathering to celebrate the 65th anniversary of the National Day of Cuba (January 1, 1959-2024).

Speaking at the event, Chairwoman of the city's Vietnam-Cuba Friendship Association Truong Thi Hien said over the past half century, the loyal relationship between Vietnam and Cuba has been tightened and expanded across fields including politics, economy - trade, defense - security, agriculture, construction, education, health care, biotechnology, transport, and sports.

Hien said that last year, the HUFO, the association and the Cuban Consulate General in Ho Chi Minh City organized activities to strengthen the friendship between the people of the two countries.

For her part, Cuban Consul General in Ho Chi Minh City Ariadne Feo Labrada over the past years, Cuba and Vietnam have created a special relationship, particularly in 2023, when the two countries witnessed thriving cooperation. In addition, Cuba began to cooperate with Ho Chi Minh City in the field of grassroots health care, VNA reported.

Participants pose for a group photo at the event (Photo: VNA)

She affirmed that Cuba is committed to continuing efforts to restore and develop economic, trade and investment relations with Vietnam in the coming time, and to reinforce determination and political will to promote the bilateral special relationship.

Cuba will also coordinate with Vietnam in promoting youth exchange activities, sharing information, upholding good traditions and fostering the special solidarity and friendship between the two countries, she said.

Ministry warns of monkeypox outbreak in Vietnam

The Ministry of Health has warned about a possibly wider monkeypox outbreak during the winter-spring period.

According to the ministry, Vietnam has so far reported 121 monkeypox infections including six fatalities. Most of the cases were found in HCM City and some central highlands and southern provinces of Lam Dong, Long An, Binh Duong, and Can Tho.

The ministry said that the disease has been transmitted in the community and may spread more during the changeable weather as it turns from winter to spring and as people gather for the Tet Lunar New Year holiday and spring festivals.

The Ministry of Health has classified monkeypox on the list of Group B infectious diseases, Dtinews reported.

The Ministry of Health has warned about a possibly wider monkeypox outbreak during the winter-spring period. Illustrative photo.

The disease is transmitted between people through close contact with an infected person. Suspected symptoms of the disease include the sudden appearance of acute rashes in the form of fluid-filled or pus-filled blisters without an obvious cause. Once the disease is confirmed, patients should strictly adhere to healthcare professional guidance in care and treatment to minimize complications and follow infection prevention measures.

Most patients will recover after 10 to 14 days and stop spreading the disease after 21 days. However, the disease can cause serious complications, or even be life-threatening for immunocompromised people like those infected with AIDS, cirrhosis, or diabetes.

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