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Head of the Party Central Committee’s Commission for External Relations Le Hoai Trung (right) and deputy head of the LPRP Central Committee's Commission for External Relations Valaxay Lengsavad.

Vietnam, Laos vow to deepen collaboration in Party external affairs

Head of the Party Central Committee’s Commission for External Relations Le Hoai Trung and deputy head of the Lao People's Revolutionary Party (LPRP) Central Committee's Commission for External Relations Valaxay Lengsavad have vowed to effectively realize cooperation agreements between the two Parties and commissions, contributing to further deepening the Vietnam-Laos special solidarity in an effective and practical manner.

During a reception in Hanoi on July 16 for the Lao guest, Trung expressed confidence in Laos' future under the LPRP's leadership. He expected that Laos will continue to reap greater success in implementing the resolution of the 11th National Party Congress, holding upcoming Party Congresses, and performing its roles as Chair of ASEAN and the ASEAN Inter-Parliamentary Assembly (AIPA) this year, cited VNA.

Underscoring the significance of the Vietnam-Laos special solidarity and the Vietnam-Laos-Cambodia trilateral relationship, he reaffirmed Vietnam's commitment to preserving and nurturing the special Vietnam-Laos ties, helping maintain political stability and socio-economic development of both countries. This cooperation, he said, would serve as a foundation and driving force for elevating bilateral relations to new heights.

Valaxay Lengsavad acknowledged the significant progress in bilateral ties, saying that both sides have effectively implemented agreements reached by leaders of both Parties and countries, including the organization of visits by senior leaders of the two Parties and countries. particularly those established during reciprocal visits.

He expressed gratitude for Vietnam's long standing support and assistance to Laos, and provided updates on the current situation in Laos and the outcomes of the talks between the two Parties' commissions of external relations.

Earlier the same day, deputy head of the Party Central Committee’s Commission for External Relations Nguyen Minh Tam held talks with the Lao delegation.

The two sides informed each other about the situations of the respective Parties and countries, the Vietnam-Laos relationship, and joint work between their commissions.

They shared views on global and regional developments and reached consensus on future cooperation directions, including maintaining the exchange of delegations and the sharing of information and experience, and collaborating closely on external affairs.

UOB remains positive on Vietnam's economic growth prospects

The recovery of external and domestic demand, as well as the manufacturing sector, has supported the Vietnamese economy to grow stronger than expected in the first half of 2024.

This is the basis for the growth outlook for the whole year 2024 that Singapore-based United Overseas Bank (UOB) continues to maintain its economic growth forecast for Vietnam at 6.0%, with an achievable growth target of 6 - 6.5%.

This information was shared by Suan Teck Kin, executive director of global economics and market research at United Overseas Bank (UOB), at the announcement of UOB's 2024 Business Outlook Study held on July 16 in Ho Chi Minh City.

Vietnam's economic growth beyond expectations

According to Suan Teck Kin, growth drivers come from the recovery of the electronics industry’s demand, stable growth in China and the region as well as the ability of major central banks to loosen the monetary policy which will support Vietnam's prospects.

Analyzing the positive results in the first half of 2024 in Vietnam, UOB experts said that Vietnam's real GDP increased by 6.93% in the second quarter of 2024, continuing the increase from 5 .87% in the first quarter.

Overall, the Vietnamese economy grew by 6.42% in the first half of 2024, far exceeding the 3.84% in the first half of 2023.

Regarding foreign investment attraction, the UOB expert commented that foreign investors largely view Vietnam's prospects positively in the coming years as it overcome changes in domestic politics in early 2024, according to VOV.

Photo: VOV

Registered foreign direct investment (FDI) surged by 13.1% to US$15.2 billion in the first half of 2024, of which disbursed FDI inflows into Vietnam reached US$10.8 billion.

FDI data shows that businesses continue to consider Vietnam an important investment destination in the medium and long term amid the global economy's ongoing supply chain restructuring.

On the other hand, an increase in both realized and registered FDI inflows will further intensify domestic activities in the coming quarters, including construction and employment.

This affirms the trust and commitment of foreign businesses to Vietnam in the current wave of deglobalization, risk reduction and supply chain transformation.

Besides the advantages, UOB experts also gave some recommendations related to challenges and trends that need to be monitored to maintain strong growth momentum in the second half of 2024.

Accordingly, in addition to the risks that are still present and could have a significant impact if the situation worsens, including the conflict between Russia and Ukraine as well as in the Middle East between Israel and Hamas, which could disrupt the global trade market in terms of transportation, energy, and commodities.

In line with this, inflationary pressures still exist, especially in food and energy prices, he emphasized.

Vietnamese businesses optimistic about current business environment

UOB's 2024 Business Outlook Study surveyed more than 4,000 businesses (small and medium enterprises (SMEs) and large enterprises in seven key markets across ASEAN and China, including 525 businesses in Vietnam.

The results indicated that most Vietnamese businesses are still optimistic about the current business environment.

Nearly 90% of Vietnamese businesses expressed their interest in expanding their business abroad, with ASEAN being the top market that they target to expand their business in the next three years.

Regarding future prospects, nearly 90% of businesses in Vietnam expect that 2024 will have positive changes with improved business efficiency. Businesses are planning to increase adoption of digital solutions, upgrade equipment or facilities to improve productivity and diversify sales channels for growth stimulation.

Cross-border digital trade platforms are a popular means of expanding business abroad used by most interested businesses.

According to UOB study, ASEAN is the top choice and one of the key regions that Vietnamese businesses are targeting for overseas investment over the next 3 years, with 70% of businesses wanting to expand their business activities into this region, followed by China with 37%.

In ASEAN, Thailand is the most important country that Vietnamese businesses want to invest in, followed by Singapore, Malaysia and Indonesia.

To be successful in expanding into foreign markets, local businesses are expecting financial support such as tax incentives or tax refunds (42%), funding sources or subsidies for new markets (40%).

Besides, more than 40% of Vietnamese businesses are looking for non-financial support, such as connecting with major businesses that are potential customers that their companies can provide in foreign markets.

UOB research also shows that more than 80% of Vietnamese businesses are poised to spend more on digitalization activities by 2024, with budgets increasing by 10-25%.

However, businesses also may encounter a number of challenges such as cybersecurity issues, shortages of digitally skilled employees and growing risks of data breaches.

Bac Ninh, RoK step up cooperation in urban development

Projects carried out by investors from the Republic of Korea (RoK) in the northern province of Bac Ninh are expected to create a highlight in the locality’s urban development in the coming years, Secretary of the provincial Party Committee Nguyen Anh Tuan said on July 16.

Hosting a reception for visiting RoK Minister of Land, Infrastructure and Transport Park Sang Woo, Tuan briefed the guest on local socio-economic achievements, high-quality human resources, and sound policies that have helped the province lure nearly 28 billion USD in more than 2,300 foreign direct investment projects from 41 countries and territories worldwide.

Korean firms have landed investments and run successful business in Bac Ninh and Vietnam as a whole, contributing to deepening the Comprehensive Strategic Partnership between the two nations, he said, adding the RoK, a leading investor in the province with nearly 1,000 projects worth 14.65 billion USD, has contributed greatly to the local socio-economic development.

As the General Director of the Korea Land and Housing Corporation (LH) for years, Park hastened the signing of the Memoranda of Understanding on Vietnam – RoK partnership on urban areas growth in June 2023, and urban areas development in Bac Ninh’s southeastern region earlier this month, Tuan said, expressing his belief that with its management system, financial capacity and experience, LH will prepare necessary conditions at the earliest to carry out cooperation activities and possibly implement the project with the province in the coming time, cited VNA.

Secretary of the provincial Party Committee Nguyen Anh Tuan (R) and visiting RoK Minister of Land, Infrastructure and Transport Park Sang Woo (Photo: VNA)

Bac Ninh pledges to create favorable conditions for and join hands with the corporation to successfully concretise the document, he underscored, adding the project, upon completion, will be a standout example for the sound cooperation between the two nations, and between the RoK and the province in particular.

Laying a stress on the locality’s various potential projects, Tuan said he hopes that Park will continue introducing Korean firms to the province.

Park, for his part, spoke highly of Bac Ninh’s strategic location as well as its business climate and investment policies, saying the RoK, boasting experience in urban areas development, will continue support for the province so that it will successfully develop its new urban areas in the future.

Earlier, the RoK ministry’s working delegation made a field trip to the Golden Park social housing complex in Que Vo township.

Vietnam ready to work with Google on culture and tourism promotion

Deputy Minister of Culture, Sports and Tourism Nguyen Van Hung affirmed his Ministry’s willingness to promote local culture and tourism on Google platforms at a recent meeting held in Hanoi with Sapna Chadha, vice president for Southeast Asia and South Asia Frontier of Google Asia Pacific at Google.

He noted his appreciation for the company's interest in the Asia-Pacific region, including the nation, adding that this interest has been indicated through a host of digital infrastructure investment projects, start-up and small businesses support, along with enhancing cybersecurity.

The meeting saw Chadha tell the Minister that as a platform, Vibrant Vietnam was launched officially on July 10 through the Google Arts & Culture (GAC) site at https://artsandculture.google.com/project/vibrant-vietnam-people-places-nature, cited VOV.

Ha Long Bay will be one of the UNESCO-recognized tourism sites to be introduced on the Google Art and Culture platform.

Vibrant Vietnam focuses on introducing a community of 54 ethnic groups, along with a range of diverse natural features stretching from the north to the south of the country, thereby portraying the deep connection that exists between human life with nature and highlighting the unique and cherished cultural features of the nation as a whole.

Through the successful launch of the Vibrant Vietnam project, Chadha hopes that the Ministry and Google will be able to co-operate in researching to sign an agreement on storing content on digital platforms to introduce aspects of Vietnamese world heritages on GAC.

The promotion of Vietnamese world heritage sites on Google platforms will serve to further contribute to affirming the country’s efforts in preserving and promoting the values ​​of heritage, whilst popularizing Vietnamese images and destinations to the world, Chadha added.

According to Deputy Minister Cuong, both sides will sign an agreement in order to soon introduce UNESCO recognised - Hạ Long Bay and Cat Ba Archipelago, along with the Trang An Landscape Complex on GAC.

"This cooperation will be an important boost for museums and relic sites to have agreements and in-depth cooperation with Google," Deputy Minister Cuong stated.

After the meeting, both sides agreed that Google will continue supporting programmes and projects in a bid to promote tourism and preserve traditional Vietnamese culture, thereby helping the country to run short-term courses on digital content, digital transformation, and multimedia regarding culture, sports, and tourism.

VinFast builds new electric vehicle assembly plant in Indonesia

VinFast Auto held a groundbreaking ceremony for its new electric vehicle (EV) assembly in Subang, West Java, Indonesia, on July 15.

This strategic move into one of Southeast Asia's most promising EV markets is set to create numerous job opportunities for the local workforce, underscoring VinFast's commitment to expanding its presence in the region and supporting Indonesia's burgeoning electric vehicle industry.

The new VinFast assembly plant, located in the emerging industrial hub of Subang, represents an initial investment of around US$200 million.

The facility will have an annual capacity of 50,000 vehicles, and house several key production areas such as Body Shop, General Assembly Shop, Paint Shop and testing area, etc.

Scheduled to commence operations in the fourth quarter of 2025, the plant will produce right-hand drive versions of VinFast's e-SUV models, including VF 3, VF 5, VF 6 and VF 7 for the Indonesian market.

The project is anticipated to generate thousands of local jobs, increase the skilled labor rate, and contribute significantly to the economic and social development of the local community.

The project is also poised to make a substantial impact on promoting green transportation in Indonesia, VGP reported.

The groundbreaking ceremony for VinFast new electric vehicle assembly, Subang, West Java, Indonesia, July 15, 2024 - Photo: VOV

Addressing the event, General H. Moeldoko, Chief of Presidential Staff of Indonesia shared, VinFast's presence here will not only have a positive impact on the regional economy, but will also provide new job opportunities and improve the welfare of the surrounding community.

He expressed his belief that VinFast presence will bring technological innovation and knowledge transfer that is much needed to increase the competitiveness of the national automotive industry.

In parallel with bolstering its global production capabilities, VinFast has swiftly established a robust business presence and increased brand recognition in Indonesia.

The company has launched two right-hand drive electric SUV models, the VF 5 and VF e34, opened dealership stores, implemented flexible sales policies including its pioneering battery subscription program.

With a long-term vision, VinFast continues to innovate and strive towards becoming a high-tech industrial leader in Southeast Asia with global influence.

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