Vietnam News Today (Jul. 18): Vietnam And Canada Further Boost Economic, Trade, And Investment Ties

Minister of Industry and Trade Nguyen Hong Dien and Canadian Minister in charge of International Trade, Export Promotion, Small Enterprises and Economic Development Mary Ng at their meeting in Auckland, New Zealand. (Photo: congthuong.vn)

Vietnam and Canada further boost economic, trade, and investment ties

Vietnam and Canada should further step up economic, trade, and investment links, suggested Minister of Industry and Trade Nguyen Hong Dien and Canadian Minister in charge of International Trade, Export Promotion, Small Enterprises and Economic Development Mary Ng at their recent meeting.

The meeting took place on the sidelines of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Commission meeting in Auckland, New Zealand, on July 16.

Dien noted that the cooperative relations between Vietnam and Canada have developed more comprehensively and effectively, especially since the CPTPP deal took effect in early 2019.

Vietnam has been the leading trade partner for Canada among ASEAN since 2015, while Canada is among Vietnam’s top 10 import partners.

Two-way trade turnover between the two countries reached US$7 billion in 2022, marking a rise of 16.5% compared to 2021.

Currently, Canada now makes up the third largest Vietnamese trading partner in the Americas, behind only the United States and Brazil, cited VOV.

However, the negative developments of the global economy have significantly affected economies around the world, including Vietnam and Canada. According to the latest statistics compiled by Vietnam Customs, their two-way trade turnover decreased by 14.7% in the first half of this year compared to the same period last year.

Dien suggested that the two sides seek to iron out snags, making it easier for their business communities to cooperate and expand their markets.

The success of the first meeting of the Vietnam – Canada Joint Economic Committee in Vancouver in June 2022 can be considered an important step forward for economic, trade, and investment relations between the two countries, he stressed.

The Minister outlined that the two sides need to effectively exploit the important co-operation mechanism and make full use of the CPTPP.

Sharing Dien’s view, Ng affirmed that Canada always attaches importance to cooperative ties with Vietnam and it is keen to further promote cooperation with Vietnam in the field of economy, trade, and investment.

The Canadian Minister also expressed hope that Vietnam would be the leading trade partner for Canada in Southeast Asia, thereby serving as a bridge to connect Canada to other countries throughout the region.

At the meeting, the two ministers also agreed that both sides would further strengthen links with specific projects and action programmes in the near future, especially in the field of energy transition.

EuroCham proposes including 27 EU countries into Vietnam’s visa exemption list

The European Chamber of Commerce (EuroCham) in Vietnam announced on July 17 that it had proposed the expansion of Vietnam's visitor visa exemption list to encompass all 27 EU member countries.

At present, the visa exemption list includes only seven EU member countries, namely Germany, France, Italy, Spain, Denmark, Sweden, and Finland.

EuroCham commended the recent efforts undertaken by the Vietnamese Government to streamline its visa system, including the extension of e-visa validity to a 90-day period, enabling multiple entries and exits starting from August 15, according to VNA.

Illustrative image (Photo: VNA)

It also hailed the extension of the temporary stay period for citizens from countries exempt from visas by Vietnam to 45 days.

"This expansion will bring in a large number of travelers from the EU market, which has a population of over 500 million. By removing barriers for high-income international travelers to visit Vietnam, EuroCham and Vietnam will undoubtedly unlock amazing opportunities for the country's economy after a difficult few years," said EuroCham Vietnam Chairman Gabor Fluit.

The latest report from Google Destination Insights, a tourism data analysis tool, indicated that Vietnam holds great potential as a sought-after tourist destination and ranks among the top seven most searched travel destinations. Vietnam's attractiveness as an investment destination for foreign direct investment (FDI) is quite evident. the Business Climate Index (BCI) for Q2/2023, published by EuroCham and conducted by Decision Lab, revealed that despite current challenges, 48% of respondents express optimism about the increase in FDI capital for their companies in Vietnam in the coming quarter.

Vietnam also maintains its position as one of the top five investment destinations for over one third of businesses, further affirming its sustainable attractiveness and reputation. The continuous reduction of import tariffs facilitated by the EU-Vietnam Free Trade Agreement (EVFTA), combined with efforts to address obstacles in administrative procedures as highlighted by BCI survey participants, will further improve Vietnam's investment prospects over time.

Vietnam plans mass evacuation as typhoon TALIM looms

Northern provinces of Vietnam have developed plans to evacuate approximately 30,000 ahead of the landfall of typhoon TALIM which is due on July 18.

The Red River Delta province of Thai Binh is expected to temporarily relocate 19,000 residents from danger areas, including flood-prone areas, fishing cages, and aquaculture watchtowers.

Furthermore, the port city of Hai Phong and the border province of Quang Ninh that are forecast to bear the brunt of the typhoon, are poised to move 8,700 and 700 residents respectively to high ground.

Other localities such as Nam Dinh and Ninh Binh are also anticipated to evacuate thousands of local residents before the typhoon makes landfall.

The Border Guard Command reported on July 17 that it has informed and directed 52,188 vessels with more than 226,000 people on board to either seek storm shelters or to move ashore.

There are currently no vessels operating in the danger zone, according to the Border Guard Command, VOV reported.

Deputy Prime Minister Tran Luu Quang chairs an urgent meeting on July 17 to cope with typhoon TALIM which is due to make land fall on July 18.

Coastal localities such as Hai Phong, Quang Ninh, and Thai Binh have duly released a ban on vessels from setting sail, starting at midday on July 17.

Typhoon TALIM has formed from a tropical depression and has strengthened grades for the past 36 hours. At present it is now swirling across the northern part of the East Sea.

The typhoon with maximum sustained winds of up to 120kph is forecast to strike the northern coast of Quang Ninh and Hai Phong at 16:00 p.m. on July 18.

Over the next 12 to 24 hours, TALIM will move further inland, weaken into a tropical depression and dissipate in the northern mountainous region.

Northern localities are expected to endure a long spell of rain from July 17 to July 20, with widespread rainfall totaling 200mm to 400mm, or even 500mm in some parts.

According to the National Centre for Hydro Meteorological Forecasting, heavy rainfall will persist into the end of the week.

Speaking at an urgent meeting in Hanoi on July 17, Deputy Prime Minister Tran Luu Quang appreciated localities adopting prompt response measures but warned there is no room for complacency as it is a powerful storm to hit northern localities for the past few years.

He asked localities from Quang Ninh to Nghe An to stick to the Prime Minister’s July 16 telegram on response measures, and said “Our ultimate goal is to ensure no loss of life and minimize damage to property.”

Vietnamese, Thai localities seek ways to boost cooperation

A delegation from the northern province of Hoa Binh, led by Secretary of the provincial Party Committee Nguyen Phi Long, had a working session with Chadchart Sittipunt, Governor of Bangkok, on July 17.

At the meeting, Long introduced Bangkok's officials strengths of Hoa Binh province with a convenient transport system, connecting to many airports, seaports and international border gates. In the coming time, the province will focus on attracting investment in various areas, including modern and high-quality industrial production; production and processing of agricultural, forestry and aquatic products; resort tourism development; urban development associated with ecology systems.

He said the province has a plan to prioritise investment in necessary infrastructure such as roads, power supply, construction planning, among others at potential and advantageous locations to create favourable conditions for investors investing in the province.

Long expressed his hope that Thai enterprises will become one of important investors in the Vietnamese province, cited VNA.

Secretary of the Hoa Binh provincial Party Committee Nguyen Phi Long (L), has a working session with Chadchart Sittipunt, Governor of Bangkok, on July 17. (Photo: VNA)

For his part, Chadchart said as head of Thailand’s capital city, he will connect local enterprises with Hoa Binh province while affirming that Bangkok city will always create favourable conditions for investors and enterprises of Hoa Binh province to seek investment opportunities in Thailand.

The Ambassador emphasised that he will work closely with the Vietnamese Embassy in Thailand to promote cooperation between the two localities.

8 million foreign travelers expected for 2023

The encouraging results in attracting foreign travelers in the first six months of the year have lifted the spirit of travel firms, with expectations high to reach 8 million foreign travelers for 2023.

At 11 am, Thuong, in a sweaty shirt, stood under the eaves, took a few sips of water in a hurry, and then ran towards the entrance door of the trade fair. The officer at the Suoi Tien Tourism Complex was having a busy working day receiving guests visiting the Southern Fruit Festival.

Twenty-five days after opening on June 1, the largest fruit festival in the country had attracted 250,000 visitors. As of June 25, over 350 tons of fruits had been sold at the trade fair, equal to the sales in 2019.

Analysts, however, note that the number of visitors to festivals in 2017, 2018 and 2019 was 1 million a year in the three summer months. This year’s festival season is expected to last from June 1 to August 31.

The Suoi Tien Tourism Complex predicts that the number of visitors to the festival will be 80-90 percent of that in 2018.

The Southern Fruit Festival is one example showing tourism recovering in HCM City. A recent report from the HCM City Statistics Office found that in the first six months of 2023, travel revenue in HCM City reached VND4.8 trillion, up 78.5 percent over the same period last year, while revenue from accommodation services rose by 42.5 percent with the number of travelers served up by 136 percent and the number of days served up 96 percent.

According to the Vietnam National Administration of Tourism (VNAT), HCM City led the country in terms of revenue from tourism in the first half of the year, followed by Hanoi, Thanh Hoa, Quang Ninh and Khanh Hoa.

A representative of Du Lich Viet said nearly all international air routes have resumed. In the first six months of the year, the firm served 5,000 tours with 110,000 travelers (domestic travelers accounted for 40 percent).

The outbound tours to Thailand, Malaysia and Singapore had high growth rates. To date, it has provided outbound tours to 30 countries and served 5 percent of foreign travelers from Israel, Australia, India and Indonesia.

“The e-visa will help boost inbound tourism. It will be the leverage that helps boost tourism in the last six months of the year,” the representative said.

TSTtourist said the firm is serving many groups of tourists from India, Thailand and Europe. The expansion of e-visas, increase of length of stay, and upgrading of products and services will increase the number of travelers.

Also, the recognition by Michelin of restaurants will highlight Vietnamese cuisine, VNN reported.

Photo: VNN

The improvement in tourism indexes in the first six months of the year was aided by HCM City’s tourism promotion activities. Shortly after tourism reopened, the city launched a "one district, one typical tourism product program". To date, HCMC has 60 more new tourism products or routes.

Leaders of the HCM City’s Tourism Department recently carried out activities to advertise tourism in Bangkok and Phnom Penh.

Bui Thi Ngoc Hieu, deputy director of the HCM City Tourism Department, said the geographical position of HCM City, plus the visa waiver policy for ASEAN members, will help HCM City - Phnom Penh become a favorite destination for tourists from the two countries.

A report from HSBC pointed out that Vietnam can easily obtain 8 million foreign travelers this year. According to Yun Liu from HSBC, the recovery is partially due to the increase in flight frequency. Also, the loosening of the visa policy will make Vietnam more attractive.

In the first six months of the year, Vietnam received 5.6 million travelers.

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