Vietnam News Today (Jul. 21): Vietnam's Exports to US Favourable

Malaysian Prime Minister Anwar Ibrahim (right, first line) arrives in Hanoi, beginning official visit to Vietnam (Photo: VNA)

Malaysian PM’s Vietnam visit expected to further strengthen ties: ministry

The official visit to Vietnam from July 20-21 by Malaysian Prime Minister Anwar Ibrahim will help further strengthen the existing robust ties between the two close neighbours and partners in ASEAN, according to the Malaysian Ministry of Foreign Affairs.

In its press release, the ministry said that during his trip, the PM will hold meetings with Vietnamese top leaders, and witness the exchange of Memoranda of Understanding (MOUs) between ministries and agencies of Malaysia and Vietnam in various sectors to enhance bilateral trade and investment.

He is also scheduled to attend the Malaysia-Vietnam Joint Business Conference and a session with representatives from the Malaysian community, cited VNA.

“As the year 2023 also marks the Golden Jubilee of the establishment of diplomatic relations, the visit provides the opportunity to further strengthen the relationship,” the ministry said.

Total bilateral trade increased by 23.1%, from 16.74 billion USD in 2021 to 19.44 billion USD in 2022. Malaysia is also the ninth largest investor in Vietnam, with a total capital of 13.06 billion USD.

Vietnamese enterprises make positive contributions to Laos' socio-economic development

Projects with investment from Vietnamese enterprises in Laos are currently operating effectively, thereby creating jobs, increasing incomes for thousands of local workers, and supplementing revenue for the Laos state budget.

In the spirit of great friendship, special solidarity, and comprehensive ties, the Governments of Vietnam and Laos have created the most favourable conditions possile for both nations to enhance economic ties in a more methodical direction.

Many effective investment projects run by Vietnamese enterprises have remarkably contributed to the host nation’s socio-economic development, which has been acknowledged and highly appreciated by the Laotian government.

Star Telecom Company with the Unitel brand name is one of the nation’s main investment projects in Laos, in the form of the most successful joint venture of the Military Industry and Telecoms Group (Viettel).

The 14-year journey of this enterprise marks impressive achievements, thereby becoming an exemplary success symbol, according to VOV.

Star Telecom Company with the Unitel brand name is one of Vietnam’s investment projects in Laos.

From the smallest mobile service provider, Unitel has become the leading telecommunications company in Laos with 3.3 million subscribers, duly accounting for up to 57% of market share, thus making Laos one of the countries with the best 4G coverage and speed throughout Southeast Asia, with high-speed Internet accessible to all Laotians.

In addition, Unitel has continuously made positive contributions to the overall socio-economic development of Laos by creating jobs for 27,000 employees, ranking second in the neighbouring country in terms of tax and budget contributions.

Like Star Telecom Company, Lanexang Public Assurance Company was established on the basis of collaboration and capital contribution between Lao Development Bank and Vietnam Post Insurance Corporation.

Over the past 13 years, the company has seen constant development and created a certain position through a network of more than 200 agents spreading across Laos.

Along with business and social activities, the company has also made practical contributions aimed at community development programmes in Laos as a way of preserving the image of the joint ties.

Duong Dinh Bang, chairman of the Vietnam Business Association in Laos, said that co-operation in investment, business, trade, and services of Vietnamese enterprises in Laos over recent years has achieved remarkable results.

Of these, the social security work carried out by Vietnamese enterprises in Laos reached nearly US$73 million, with a particular focus on health care, education, and building houses for the poor in remote areas.

According to Bang, the Laos Government is actively amending the current legal system as a means of improving the local business investment environment.

Vietnam's exports to US favourable: official

In the first five months of this year, Vietnam had a trade surplus with the US at 35 billion USD, ranking third after China and Mexico.

Commercial Counsellor in the US Do Ngoc Hung said that Vietnam gained the trade surplus as in the market, Vietnamese products competed with those from third countries, not the US.

Moreover, Vietnamese exporters offer products with diversified patterns and competitive prices.

Among the group of Vietnam's top 10 exports to the US, six account for 10-27% of the US’s total import, VNA reported.

Illustrative photo (Photo: congthuong.vn)

Hung said that those factors show that in the long-term, Vietnam will remain a reliable partner of the US in its supply chain shifting policy.

From now to the end of this year, Vietnam’s exports to the US can enjoy more favourble conditions now that the US economy has seen signs of recovery and consumer demand improved, the official said.

The US Government and businesses continue to pay attention and are strongly committed to business cooperation with Vietnam, Hung added, pointing out that major US groups such as Walmart, Boeing, and AES have committed to join Vietnam International Sourcing Expo 2023 scheduled from September 13-15 in Ho Chi Minh City.

Major retail chains have started resuming orders to Vietnam while Vietnamese goods worth hundreds of billions of USD have been sold via Amazon’s e-commerce network.

According to Hung, his office will strengthen cooperation with ministries, agencies, localities, and associations to organise trade promotion in the provinces of Bac Giang, Vinh Phuc, and Ca Mau.

More promotion activities will be conducted to facilitate the export of Vietnamese fruits to the US including mango, longan, lychee, dragon fruit, grape fruit, and coconut.

CPTPP represents golden chance for Vietnam to achieve greater penetration in UK market

With the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) gaining the UK as a new member, more co-operation opportunities will open up for the nation and the European country, according to insiders.

Following the signing of the protocol on the UK’s accession to the CPTPP last weekend, the number of CPTPP member states has grown to 12.

The UK's entry is projected to elevate the bloc’s gross domestic product (GDP) to nearly 16% of the world’s total from the previous figure of 12%. The CPTPP will be an additional agreement that runs alongside the Free Trade Agreement (FTAs) that the UK has with most member countries.

According to experts, investment between the UK and CPTPP member states is expected to increased thanks to terms that limit barriers and encourage more internal investment.

As of June, the UK recorded 530 foreign-invested projects worth more than US$4.26 billion in the Vietnamese market, ranking 15th among the 141 countries and territories investing in the country. Last year saw the European nation finance 53 new projects worth US$64.3 million in Vietnam.

After the UK-Vietnam FTA officially took effect on May 1, 2021, last year’s two-way trade grew to US$6.84 billion, up 3.4% on-year. Of the figure, the figure of US$6.07 billion was Vietnamese exports to the UK, up 5.2%, resulting in a trade surplus of roughly US$5.3 billion, higher than the figure of US$4.8 billion recorded in the previous year, cited VOV.

Photo: VOV

On the back of the UK joining the CPTPP, the two countries are seeing ample opportunities to swiftly achieve the target of reaching US$10 billion in bilateral trade. The Vietnamese agro-aquatic products, including fruits and vegetables, coffee, and cashew nut, are set to benefit the most. Several export items to the UK, which have not been granted tax exemptions based on bilateral agreements, will enjoy more favourable taxes under the terms of the CPTPP.

Meanwhile, products such as whisky and automobiles, which are among 99% of the UK’s current exports to CPTPP countries, will qualify for tax exemptions. At the same time, the UK is likely to export more agricultural products, pharmaceutical materials, advanced equipment, and technology to the Vietnamese market.

Thai Tran, CEO of UK-based TT Meridian Ltd, said Vietnamese farm produce such as durians, pomelos, and Cao Phong oranges have gradually conquered the UK market.

According to him, the UK has high requirements, as it pays attention to both prices and environmental, social, and governance standards.

Vietnam maintains responsible contributions to SDG implementation: ambassador

Over the past seven years, Vietnam has carried out the National Action Plan to implement the 2030 Agenda and the SDGs across the country with the participation of all sectors and the principle of “no one is left behind”.

Giang, who is the country’s Permanent Representative to the UN, assessed that the international community has not yet made progress as planned in the implementation of the 17 SDGs at the mid-point of the implementation of the 2030 Agenda.

Therefore, it is necessary to take stronger and more urgent measures with the participation of multi-stakeholders to speed up implementation to be able to complete the SDGs by 2030, he said.

Over the past seven years, Vietnam has carried out the National Action Plan to implement the 2030 Agenda and the SDGs across the country with the participation of all sectors and the principle of “no one is left behind”. The country has made remarkable progress, especially in reducing poverty, ensuring clean water and sanitation, accessing quality education, ensuring universal health coverage, creating jobs and enhancing coverage of the social welfare system, building peace and justice, and perfecting its institutions.

However, it still faces major challenges in implementing the SDGs, such as responding to global issues, and climate and environmental risks; pressure to fulfil international commitments and ensuring balance with development and financial resources, VNS reported.

Dang Hoang Giang, Vietnam's Permanent Representative to the UN, addresses the High-Level Political Forum on Sustainable Development of the UN Economic and Social Council. Photo: VNS

From its experience, Vietnam proposes several measures to accelerate the implementation of the SDGs in the second half of the decade.

Firstly, countries need to maintain a people-centred approach, with stakeholders’ participation in the implementation of the 2030 Agenda. Secondly, it is necessary to maintain macroeconomic stability and sustainable post-pandemic recovery, and effectively mobilise and use financial resources for sustainable development. Thirdly, countries should prioritise investment in human resources, science, technology, innovation and infrastructure as tools for SDG implementation. And lastly, attention should be paid to narrowing the gap of available data with 232 global SDG indicators to monitor and evaluate the progress, Giang said.

The diplomat affirmed that Vietnam will continue its role as a responsible member of the international community, working with other countries to contribute to common efforts in the implementation of the SDGs by 2030.

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