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Minister of Industry and Trade Nguyen Hong Dien (6th from right) and Lao Ambassador to Vietnam Khamphao Ernthavanh (7th from right) have a working session in Hanoi on January 3. (Photo: tapchicongthuong.vn)

Vietnam, Laos promote trade, industrial, energy cooperation

The Vietnamese Ministry of Industry and Trade (MoIT) and the Lao Embassy in Vietnam will continue to coordinate closely to promote economic - trade and industry - energy cooperation between the two countries.

Minister of Industry and Trade Nguyen Hong Dien and Lao Ambassador to Vietnam Khamphao Ernthavanh made the affirmation at their working session in Hanoi on January 3.

Dien highlighted the outstanding results in Vietnam-Laos trade relations in 2024, particularly bilateral trade turnover was estimated to reach 2.2 billion USD, an increase of nearly 34% compared to 2023, cited VNA.

This is the first time the bilateral trade turnover has exceeded the 2 billion USD mark, far surpassing the target set by the two governments, Dien said, noting that this achievement is a clear testament to the efforts of the governments, authorities, and businesses of both nations, including those made by the ministry and the embassy.

Regarding the Vietnam-Laos trade agreement, Dien emphasised that the Ministries of Industry and Trade of Vietnam and Laos have completed necessary procedures for the two governments to approve the new agreement that was signed on April 8, 2024 and are ready for implementation.

The Minister called on the Ambassador to assist in expediting necessary internal procedures with Lao authorities, and promptly inform Vietnam of the official date of effect so that the agreement can be implemented soon and the benefits it brings can be utilised as soon as possible.

Regarding cooperation in the energy and mineral sectors, Dien noted the key role of these two pillars in Vietnam-Laos economic relations. Cooperation in the purchase and sale of coal and electricity between Vietnam and Laos in 2024 has achieved very positive results.

The import of electricity and coal from Laos not only aims to meet Vietnam’s needs in socio-economic development but also helps to exploit Laos's potential, thereby contributing to its socio-economic development.

For her part, Khamphao shared the view with the minister regarding the impressive achievements that the two countries have attained in recent times. She expressed her impression of the growth of Vietnam's import-export turnover and industrial sector.

On this occasion, she thanked Vietnam for its important support in supplying gasoline and oil to the Lao market in recent times. In 2024, Vietnamese enterprises supplied 36 million litres of gasoline and oil, helping Laos to stabilise its domestic fuel market.

Both host and guest expressed confidence that the 47th meeting of the Vietnam - Laos Intergovernmental Committee, scheduled to be held in January 2025 in Laos, will be a success.

Vietnam-Denmark trade turnover sees robust growth

The total import-export turnover between Vietnam and Denmark witnessed impressive growth of more than 20% during the past 11 months of 2024, according to details by the Vietnamese Trade Office in the Nordic countries.

Nguyen Thi Hoang Thuy, Head of the Vietnam Trade Office in Sweden cum the Nordic countries (including Denmark), emphasized that after the COVID-19 pandemic, two-way trade turnover between the two countries dropped and has shown signs of recovery since 2022.

The country’s major export items to Denmark remain traditional items in which the Vietnamese side has strengths, such as garments and textiles, electronic components, furniture, iron and steel, footwear, and seafood.

Most notably, two-way trade turnover during the reviewed period increased significantly by 20.3% on-year to reach US$614 million.

Accordingly, exports to Denmark surged by 27.4% to US$400 million, while imports from this market edged up 9% to hit US$213 million.

In particular, iron and steel products recorded the sharpest rise of 104.7%, followed by furniture products with 62.5%, seafood with 27.7%, and garments and textiles with 3.2%.

Thuy attributed this level of robust growth in two-way trade turnover to comprehensive cooperation occurring in multiple fields over recent years, especially since the two countries established the Comprehensive Partnership and Green Strategic Partnership, according to VOV.

Photo: VOV

However, she pointed out that Vietnam is currently facing fierce competition from a number of countries when it comes to promoting trade and investment ties with Denmark.

Moreover, countries such as Thailand, Indonesia, Malaysia, and China have deployed effective measures as they seek to open the market, intensify trade promotion activities, and attract investment from Denmark.

Therefore, Vietnam is required to devise a suitable strategy to enhance trade and investment cooperation with Denmark, develop a national brand, organise direct trade promotion events, and focus on developing products with high added value, all of which will help the country to compete more effectively in the global market.

In addition, the representative from the Vietnam Trade Office in Sweden stated that businesses of both sides need to ramp up co-operation in the fields of green technology, renewable energy and sustainable production.

Moreover, Vietnam should strive to utilize opportunities from the existing EU-Vietnam Free Trade Agreement (EVFTA) and create favorable conditions for businesses as they strengthen connectivity and invest more deeply moving forward.

Vietnam set to become regional manufacturing tech hub this year

Vietnam has the potential to become a manufacturing hub in the region this year, especially in fields involving technology, as global companies have expressed interest in expanding operations in the country.

Foreign direct investment (FDI) into Vietnam reached nearly 31.4 billion USD in the first 11 months of 2024, with disbursed FDI estimated at about 21.7 billion USD, an increase of 7.1% compared to the same period in 2023. The year 2024 was the third consecutive year that the country disbursed over $20 billion in FDI.

Vietnam is among the top 15 developing countries attracting the most FDI globally.

The northern province of Bac Ninh led the country with total registered investment capital of nearly 5.04 billion USD, accounting for 16% of the total national investment capital, more than three times higher than the same period in 2023.

The coastal province of Quang Ninh ranked second with 2.29 billion USD of registered capital, followed by HCM City with 2.28 billion USD, then Hai Phong, Hanoi and Binh Duong.

Among the 110 countries and territories investing in Vietnam in the first 11 months, Singapore led with a total investment capital of nearly 9.14 billion USD, accounting for over 29% of the total investment, a 53.7% increase compared to the same period in 2023.

FDI trends for 2025

Investments into high-value sectors like electronics, semiconductors and green technology led the amount of FDI into Vietnam in 2024, and will likely continue to do so this year.

Recently, the Government and leading American chipmaker NVIDIA signed an agreement to establish the Vietnam Research and Development Centre and Artificial Intelligence (AI) Data Centre in Vietnam. This is a historic milestone for the country, preparing it to become the leading AI research and development hub in Asia and the third globally, after the US and Taiwan (China).

From April 1 this year, Singapore-based Google Asia Pacific Pte. Ltd. will transfer the rights and obligations of its advertising partners in Vietnam to Google Vietnam Company Limited, based in HCM City, marking its first official operations in Vietnam.

During a meeting with Party General Secretary To Lam in New York on September 25, 2024, SpaceX’s senior vice president for global business and government affairs Tim Hughes revealed that the American spacecraft provider planned to invest 1.5 billion USD in Vietnam. The Trump Organization said it will invest a similar amount in Hung Yen province.

In November, Foxconn, an electronics supplier for Apple, announced an 80 million USD investment in chip manufacturing in Bac Giang province, where Mark Zuckerberg’s Meta also plans to expand its virtual reality equipment production, VNA reported.

A camera component production line at a MCNEX VINA Company factory in Ninh Binh province, fully invested by the Korean company MCNEX Co., Ltd. (Photo: VNA)

Instead of only attracting investment in assembly operations as in previous years, Vietnam is quickly becoming an important part of the global technology world. This trend is becoming clearer with the potential for significant policy changes under the upcoming presidency of Donald Trump, which could accelerate the shift of production to Vietnam.

The country may experience more sustainable and faster growth, which will lessen its dependence on the real estate sector.

Caution with 'origin evasion' investments

While acknowledging the benefits of rising FDI, economic experts also stressed the need for caution regarding FDI flows from China, as the US-China trade war is resuming.

Although China ranks third in terms of registered capital in Vietnam, it has the highest number of newly licensed projects, accounting for 28.3% of all projects. This indicates a significant rise in capital-intensive and smaller-scale projects, reflecting the strategy of leveraging geographical proximity, competitive labour costs and China’s integration into global supply chains via the Vietnamese market.

According to Vo Tri Thanh, director of the Institute for Brand and Competitiveness Strategy (BCSI), the deeper Vietnam integrates into the global market, the greater the pressure for trade defence lawsuits.

We shouldn’t wait until FDI flows from China increase to warn about origin fraud. This has been an issue since 2018-19,” he said. “We need to take strict action against origin fraud that exploits Vietnam as a transit point for goods exported to third countries.”

He added that although Chinese FDI projects in Vietnam in recent years have been of higher quality, given the risk of the escalating US-China trade war, it is highly likely that some Chinese businesses will use Vietnam as a place for final-stage manufacturing to avoid tariffs.

Two important issues therefore need to be taken into consideration when attracting FDI, according to Thanh.

First, projects that pose environmental pollution risks or that do not meet safety and environmental standards should be stopped right from the start. Localities competing to attract FDI should be cautious about this element.

Second, smaller projects with less investment capital, primarily for importation and simple final-stage manufacturing for export, should be carefully scrutinised. These projects aim to evade origin rules and thus require thorough vetting.

“To attract quality FDI and minimise the risk of being exploited for origin evasion, we must establish criteria for selecting FDI,” Thanh said. “Investment monitoring is essential to ensure a transparent investment environment while maintaining strict management.

According to Professor Nguyen Thuong Lang, senior lecturer at the National Economics University, foreign investment in sectors that may evade origin rules should be regularly monitored and supervised after licensing.

“Strict measures should be taken against these projects when origin fraud is detected,” he said.

Vietnam listed among 12 most affordable honeymoon destinations in the world

Renowned travel magazine Travel + Leisure has dedicated an entire article to honour 12 affordable honeymoon destinations from around the world that inspire romance without breaking the bank, with Vietnam ranking at fourth in the list.

The magazine from the United States suggested enjoying scenic views of the Muong Hoa Valley or Fansipan Mountain in Sa Pa town in the northern mountainous province of Lao Cai, with this being perfect for every kind of honeymooner.

For those looking for a trip filled with food and culture then they should head to the capital of Hanoi and book a stay at the luxurious Sofitel Legend Metropole, an oasis from which couples can venture out for steaming bowls of phở (noodles) and delicious banh mi (bread), the article shared.

Vietnam is listed among 12 most affordable honeymoon destinations in the world. (Photo: VOV)

Mexico took the lead in the list, with the North American country continuing to entice American honeymooners with some of the world's best beaches, Mayan and Aztec ruins, and great food and cocktails. Many resorts throughout Mexico, particularly those on the coast, offer affordable honeymoon packages, it wrote.

Guatemala is a place where the low prices will help tourists to have a fun honeymoon whilst on a budget; whilst Jamaica, the land of good vibes, mountains, rain forests, and beautiful beaches came second and third, respectively.

Others to feature in the list of 12 affordable honeymoon destinations globally include Bermuda, Belize, Key Largo of Florida, Napa and Sonoma valleys of California, Honolulu of Hawaii, Costa Rica, Portugal, and Canada.

According to Travel + Leisure, a study by The Knot unveiled that there are plenty of honeymoon destinations that are both luxurious and affordable. Of the total, Vietnam was honoured as being the Best for Foodies, Mexico claimed the Best Tourist Destination title, and Best for a Long Weekend went to Bermuda.

Northern Vietnam faces risks of frost and extreme cold this January

The National Center for Hydro-Meteorological Forecasting warns that mid-January could bring prolonged severe cold spells to northern Vietnam, with frost likely in high-altitude areas.

Nationwide, average temperatures for January are expected to align with historical averages. However, northern Vietnam is likely to experience harsher conditions compared to December 2024.

Rainfall across the northern region and provinces from Thanh Hoa to Da Nang is anticipated to be 10–20 mm below average, while other areas may see rainfall exceeding the norm by 5–10 mm, VNN reported.

During the early days of January, a low-pressure trough situated between 6–9 degrees north latitude, linked to a low-pressure zone over the southern East Sea, is expected to bring strong winds, high waves, and thunderstorms to various coastal areas. This trough will gradually shift southward and weaken.

Mid-January is forecasted to bring the most significant cold spells. The intensified cold air could result in severe cold (ret dam) and extreme cold (ret hai), with the potential for frost and icy conditions in mountainous areas.

Adverse effects on land and sea

On land, severe cold and frost pose risks to livestock, crops, and public health, particularly in northern mountainous regions. Frost and salt frost may significantly disrupt agricultural activities.

In central and southern regions, scattered showers and localized heavy rainfall may occur, alongside unseasonal rain in the southern provinces. Thunderstorms in these areas could bring extreme weather phenomena, such as tornadoes, lightning, hail, and strong winds.

Northern Vietnam may experience frost and icy conditions in mid-January. (Illustrative photo: D.B.)

At sea, strong winds and high waves resulting from cold air activity could threaten maritime operations, particularly for fishing vessels and transport ships.

Meteorologists caution that intensified cold air and extreme weather conditions in January could have widespread impacts. Farmers and residents in affected areas are urged to prepare for severe weather by protecting livestock, crops, and infrastructure.

Authorities and maritime operators should closely monitor weather updates and ensure safety measures are in place to mitigate risks from strong winds and high seas.

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