Foreign Minister Bui Thanh Son (R) and US Secretary of State Antony Blinken (Photo: VNA)

Vietnam eyes stronger cooperation with US, EU

Vietnam is willing to work with the US to further deepen the bilateral comprehensive partnership on the basis of mutual respect for independence, sovereignty, territorial integrity, and political regimes, thus lifting the bilateral relations to a higher level at an appropriate time, Foreign Minister Bui Thanh Son has told US Secretary of State Antony Blinken.

During a meeting on the sidelines of the 56th ASEAN Foreign Ministers’ Meeting (AMM-56) and relevant meetings in Jakarta on July 13, the two sides expressed satisfaction at the positive progress in the cooperative relationship between the two countries over the recent times and affirmed the importance attached by the leadership of both nations to the comprehensive partnership.

Blinken agreed to coordinate with Vietnam in effectively implementing the outcomes of the phone talks between Party General Secretary Nguyen Phu Trong and US President Joe Biden on March 30, 2023, especially promoting high-level visits and meetings, and implementing cooperation agreements signed between the two countries.

He thanked the Vietnamese Government, especially the Ministry of Foreign Affairs, for the arrangement made during his recent Vietnam visit.

The two officials also discussed regional and international issues of common concern and agreed to strengthen coordination at regional and international forums in the time to come, cited VNA.

The same day, FM Son met with High Representative of the European Union (EU) for Foreign Affairs and Security Policy Joseph Borell.

The two sides expressed satisfaction at the fruitful development of the Vietnam – EU comprehensive partnership and agreed to promote the exchange of all-level delegations and meetings and effectively implement the Vietnam-EU Free Trade Agreement (EVFTA).

Son suggested EU member states to soon complete the ratification of the EU - Vietnam Investment Protection Agreement, and said hopes that the EU would consider lifting the “yellow card” warning against Vietnamese seafood exports as soon as possible.

For his part, Borrell affirmed that the EU is ready to support Vietnam in its energy transition process, and in implementing the Just Energy Transition Partnership (JETP) mechanism, toward achieving net zero emission targets by 2050.

Ample room remains for Vietnam's economic recovery

Although the growth rate has slowed down amid global economic difficulties, Vietnam is outperforming most countries in the world, and is regarded as an attractive destination for direct foreign direct investment (FDI) in the manufacturing sector.

This is an assessment by the International Monetary Fund (IMF) and DBS - Singapore's leading consumer bank on Vietnam's economic situation in the first half of this year.

In the context that the world situation continues to see complicated fluctuation, with internal difficulties, Vietnam's Gross Domestic Product (GDP) in the first 6 months of 2023 hit a mere 3.72%, not as high as expected.

However, most experts consider this to be an appropriate growth rate in the general context of the global economy, and are optimistic about the nation’s economic recovery in the coming time.

After a periodical consultation on Vietnam's economic situation in June, Head of the International Monetary Fund (IMF) 2023 Article IV Mission to Vietnam Paulo Medas said Vietnam said that like other countries in the world, Vietnam is facing and difficult and complex external conditions such as falling global growth and growing interest rates.

In addition, the country also faces internal problems such as the slowdown of the real estate market, and the corporate bond market. However, the gradual easing of the monetary policy such as lowering interest rates, cutting taxes and expanding public spending have helped mitigate the impact of headwinds.

With the above comments, the IMF believes that Vietnam's economic growth will recover in the second half of 2023, reaching about 4.7% for the whole year thanks to the recovery of exports and easing domestic policies.

Inflation is forecast to be kept in check below the State Bank of Vietnam (SBV)'s 4.5% target in the medium term, therefore, Vietnam could return to high growth once structural reforms are carried out, according to VOV.

The Organization for Economic Cooperation and Development (OECD) predicts that the Vietnamese economy will record a 6.5% growth in 2023 and 6.6% in 2024. (Photo: VGP)

According to expert Paulo Medas, Vietnamese policies should primarily focus on ensuring macroeconomic and financial stability, while accelerating reforms.

Fiscal policy can play a larger role in supporting economic growth and the poorest and most vulnerable. The IMF also recommended that Vietnam take drastic actions to restructure the real estate market and promote the healthy development of the corporate bond market; improve the business environment, upgrade critical infrastructure, and invest in education.

Meanwhile, Singapore’s DBS Bank Limited noted that in the first half of 2023, the amount of foreign direct investment (FDI) poured to Vietnam rose about 30%, commenting that it remains an attractive destination for investors thanks to the production transition trend, free trade agreements it has signed, and its high middle-term economic outlook at 6-7% as well as the growing electronic ecosystem.

The FDI inflows indicated that foreign investors’ confidence in the long-term potential of Vietnam has maintained.

The bank said it believes that in the second half of this year, Vietnam’s exports will increase again along with the recovery of the world electronics sector, while domestic services and tourism sector will continue to thrive and support the national economy.

Marco Förster, head of ASEAN advisory at Dezan Shira & Associates, a consultancy firm, said that despite the current difficulties, Vietnam is anticipated to experience rapid economic growth in the medium term due to its emerging position as a leading manufacturing hub in Southeast Asia, its well-educated population, and increased capital investment.

S&P Global Ratings forecast that the Vietnamese economy will recover in the next 24 months as global demand picks up and Vietnam gradually tackles domestic challenges.

Meanwhile, in a recently-released report, the Organization for Economic Cooperation and Development (OECD) predicted that the Vietnamese economy will record a 6.5% growth in 2023 and 6.6% in 2024.

Regarding the Vietnamese tourism sector, the Google Destination Insights report shows that Vietnam was the seventh most searched destination between March and June and the only country in Southeast Asia to make it to the top 20.

Gary Bowerman, a tourism analyst based in Kuala Lumpur (Malaysia), stated that changes in visa regulations will help Vietnam's tourism industry grow in the second half of this year.

The number of visitors to Vietnam is projected to increase sharply, especially when the Chinese market resumes. However, the number of international visitors to the country has not yet reached the pre-COVID-19 pandemic level, he analyzed.

According to the OECD, Vietnam also needs to better exploit domestic tourism, quickly diversify the sources of visitors from outside, with a particular focu on the markets of ASEAN member states and India, which Vietnam currently exploits with limited resources compared to other neighbouring countries such as Laos, Cambodia or Malaysia.

With a competitive workforce and large investment capital, experts believe that there remains plenty of room for Vietnam to take proper measures to boost economic growth and recovery in the remaining months of the year.

Vietnam attends 30th ASEAN Regional Forum

Minister of Foreign Affairs Bui Thanh Son reaffirmed Vietnam’s approach in which dialogue, consultation and trust building have been taken as the main tools in settling disagreements and differences while addressing the 30th ASEAN Regional Forum (ARF) in Jakarta, Indonesia, on July 14.

The process of building ASEAN's common stance on the East Sea issue demonstrates consultation efforts and achievements, and affirms and promotes fundamental principles like peaceful settlement of disputes, and respect for international law and the 1982 United Nations Convention on the Law of the Sea (1982 UNCLOS), Son said.

The minister emphasised the need to ensure ASEAN's centrality, uphold objectives and principles of the ARF, form substantive agendas, promote the responsibility of member nations, and maintain a balanced and inclusive approach.

The culture of dialogue and consultation should be maintained and enhanced with ASEAN at the centre, thereby contributing to peace, security, stability, and prosperity in the region, he continued.

At the 30th ASEAN Regional Forum. (Photo: baoquocte.vn)

Son noted that over the past 30 years, through consultation, ASEAN has successfully built a common stance on the East Sea, with principles such as restraint, peaceful resolution of disputes, and respect for international law and the 1982 UNCLOS.

While committing to fully and effectively implementing the Declaration on the Conduct of Parties in the East Sea (DOC), ASEAN and China are working together towards a substantive, effective, and legally binding Code of Conduct in the East Sea (COC) in line with international law, including the UNCLOS, he said.

They affirmed the importance of the ARF as the leading forum in the region in promoting dialogue and cooperation in political-security issues, contributing to joint efforts in building trust and preventive diplomacy.

Given the complex, unpredictable situation, the minister agreed to step up the forum’s operation, and carry forward its values, vitality and adaptability to both opportunities and challenges at present and in the future.

The countries agreed to maintain cooperation in maritime security, disaster relief, cybersecurity, the fight against terrorism and transnational crimes, non-proliferation of nuclear weapons and disarmament, national defence, and peacekeeping, reported VNA.

They also approved a list of activities for 2023-2024. Vietnam will co-chair several ARF activities regarding the implementation of the 1982 UNCLOS, and the fight against terrorism, transnational crimes, and chemical, biological, nuclear, and radiological terrorism.

On this occasion, Son announced that Vietnam will co-chair the ARF Inter-Sessional Meeting on Disaster Relief for the 2024-2026 term with Bangladesh and Sri Lanka.

The meeting adopted a joint statement commemorating the 30th anniversary of the ARF, with Indonesia, Vietnam, China, Australia, and Canada as co-sponsors. The documents reaffirmed the leading role of ASEAN in the regional architecture, and commitments to promoting constructive dialogues, enhancing cooperation, and ensuring the active and full participation and contributions of member countries to the forum’s development.

The meeting took place within the framework of the 56th ASEAN Foreign Ministers’ Meeting (AMM-56). At the end of AMM-56 and related meetings, foreign ministers approved nearly 40 documents, including the AMM-56 joint communique.

Great potential for local businesses to full tap Halal market

The global Halal market is estimated to bring in US$5 trillion per year and the figure keeps rising day by day, thereby opening up great opportunities for Vietnamese businesses to conquer this highly lucrative market.

The assessment was made at a recent seminar discussing potential and challenges of the Halal market which was organized by the Ho Chi Minh City Food and Foodstuff Association (FFA) in coordination with relevant units

According to Ly Thi Kim Chi, Chairwoman of the HCM City Food and Foodstuff Association Currently, the global Halal food market has great potential and is growing at a fast pace across continents from Asia, the Middle East - Africa to Europe and America.

The demand for Halal products has increased sharply because of the rapid growth of the Muslim population, and reflects the increasing trend of many non-Muslims in major economies such as China and Japan, US, and EU as they meeting high standards of food safety and environment.

Roughly 62% of the Muslim population is concentrated in Asia, which brings a good opportunity for Vietnamese enterprises, Chi went on to say.

Malaysian Consul General in Ho Chi Minh City Wong Chia Chiann said that the Halal industry is one of the growing trends in the world. Currently, some Vietnamese businesses started to learn about the Halal market.

She added that a limitation of Vietnamese enterprises in entering the Halal market is that the percentage of Muslims in Vietnam is low and few of them underwent training for the Halal certification process. However, that does not mean that Vietnam does not have an opportunity to exploit the Halal market.

To develop a better Halal ecosystem in Vietnam, Vietnamese businesses should employ Muslim personnel/experts who will join develop Halal-relating policies, she said.

In the long term, Malaysia will propose building domestic personnel and experts on the Halal certification process, especially in the Muslim community. Malaysia stay ready to share its experience in building a better Halal ecosystem in Vietnam, she added.

Nguyen Tuan, Deputy Director of the Trade and Investment Promotion Centre of Ho Chi Minh City, said that the world's Halal food market currently serves about 2 billion people. The global Halal economy hit US$ 7 trillion last year, and is projected to increase to around US$10 trillion by 2027.

Halal refers to any action or behaviour that is permissible in Islam and includes things like slaughtering animals for meat in a strictly specified manner, cited VOV.

Halal certification – the golden key for Vietnamese products to penetrate the Muslim market (Photo: congthuong.vn)

Notably, the Southeast Asia - South Asia - South Pacific region is a potential export market for Halal products, with a Muslim population of roughly 860 million people. This is the largest Halal food consumption area in the world with about US$470 billion.

Despite having great strength in exporting agricultural and aquatic products and a geographical advantage as being located near large Halal consuming markets, few Vietnamese enterprises have exported products to the Halal market.

The market for Halal products is widely distributed around the world, from Muslim to non-Muslim countries.

However, the fact that Vietnamese enterprises’ food import and exports to the Halal market is only the first step to explore.

Every year, Vietnam has about 50 Halal certified companies involving in trading main products such as seafood, beverages, canned food, confectionery, vegetarian food and pharmaceuticals.

Vietnamese workers to have four days off on the occasion of National Day 2023

As Vietnam National Day (September 2) falls on a weekend this year, employees are entitled to four consecutive days off from September 1 to September 4.

According to the provisions of the Vietnamese Labor Law, this holiday will include two national holidays (falling on Friday and Saturday), one weekend day (Sunday), and one substitute day (Monday of the following week).

Agencies and companies that work on weekends (Saturday and Sunday) are allowed to determine the holiday for their employees based on their work schedules, Hanoitimes reported.

Employees who are not civil servants, or public employees, can choose their days off on the National Day holiday in 2023. They are entitled to be off work on Saturday, September 2, and can choose to take a day off on either Friday, September 1 or Sunday, September 3.

Foreign employees in Vietnam are entitled to the scheduled national holidays and a national day of their home country.

National Day is the last major holiday of the year. In Vietnam, local and foreign workers are entitled to several days off for New Year, Lunar New Year, the anniversary of the death of Hung Kings, Reunification Day, and International Workers' Day.

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