Vietnam News Today (Jul. 22): Vietnam And US Boost Finance Cooperation

At a working session between Vietnamese Minister of Finance Ho Duc Phoc and US Treasury Secretary Janet Yellen in Hanoi on July 21. (Photo: VNA)

Vietnam and the US boost finance cooperation

Vietnamese Minister of Finance Ho Duc Phoc on July 21 held a working session with US Treasury Secretary Janet Yellen who is in Hanoi for a working visit.

Addressing the meeting, Phoc highly appreciated the positive development of the cooperative ties between the two countries, noting both sides have implemented a number of agreements and cooperation activities across a variety of fields, including taxation, customs, infrastructure finance reinforcement, financing, capital market development.

The two sides have also maintained multilateral cooperation within the framework of the Asia-Pacific Economic Cooperation (APEC) forum, the Association of Southeast Asian Nations (ASEAN), and the Indo-Pacific Economic Framework for Prosperity (IPEF), along with technical assistance from the US to the Ministry of Finance of Vietnam.

Phoc briefed his guest on Vietnam’s macroeconomic situation, and said despite many complicated and unpredictable changes occurring in the world, the Vietnamese economy has achieved positive results, cited VOV.

However, he added that in order to achieve the growth goal, apart from the great efforts made by the Government, Vietnam needs support from international partners, including the US.

In response, Yellen praised Vietnamese economic development and emphasised the important role Vietnam has played in restoring and diversifying the global supply chain resilience. She also shared the US Government's priority policies aimed at building a sustainable supply chain amid multiple global economic fluctuations.

The Secretary appreciated Vietnam joining the Just Energy Transition Partnership (JETP) with the group of 7 (G7), hoping this help Vietnam acquire an effective resource to support its energy transition towards net zero emission commitments by 2050.

Minister Phoc welcomed Yellen’s assessment and reaffirmed the Finance Ministry’s effort to further promote financial ties between the two countries.

He stated hope that the US Department of the Treasury and Secretary Yellen personally would continue to play an important role in promoting the deep and comprehensive cooperation that exists between the two sides in the financial sector.

Quang Ninh’s advantages prove effective in attracting foreign investment

Prominent advantages in transport infrastructure with road, sea, rail and air routes have made the northeastern province of Quang Ninh “a magnet” for foreign investment.

According to the provincial Department of Planning and Investment, in the first six months of 2023, the province attracted over 832 million USD in foreign direct investment (FDI). During the period, the province granted investment certificates to 17 FDI projects, 2.5 times higher than the same period last year, mainly in the field of processing and manufacturing, particularly two large-scale projects with investment capital of over 100 million USD.

Investors from 20 countries and territories are carrying projects out in the province, with those from Hong Kong (China) taking the lead with a total investment capital of over 3.8 billion USD, accounting for 33.7% of the total FDI investment in the province.

Japan ranked second with over 2.33 billion USD, and the US came third with nearly 2.31 billion USD. Chinese investors have 31 projects in the province with total investment capital of over 314 million USD, followed by United Arab Emirates (UAE), Singapore, and Indonesia.

At a recent meeting with investors, Cao Tuong Huy, Acting Chairman of the provincial People's Committee, affirmed the province's motto is that businesses’ effective investment is the success of the locality.

The province is committed to accompanying investors throughout the project implementation process and solving problems and difficulties at any time, he said.

To attract investors, in the past years, Quang Ninh has prioritized allocating investment resources for infrastructure development, especially transport works.

The province has also paid attention to removing difficulties relating to site clearance, resettlement, land rental, land procedures, electricity demand, and project infrastructure connection to speed up the infrastructure development of industrial parks, according to VNA.

To attract investors, in the past years, Quang Ninh prioritises allocating investment resources for infrastructure development, especially transport works. (Photo: VNA)

Regarding transport infrastructure, the province is accelerating the completion of roads to the seaports, airport and IPs. It has also proposed new projects such as the upgrade of National Highway 4B to strengthen the connection between Lang Son and Quang Ninh provinces,Van Don - Mong Cai and Quang Ninh - Lang Son - Cao Bang expressways as well as connection within the Northeastern and Northwestern regions.

Komoto Tomoshi, CEO of Castem Vietnam said that the company is the first Japanese investor to invest in Song Khoai Industrial Park in the province’s Quang Yen town with a 19 million USD factory for manufacturing and trading precision mechanical details.

The company is satisfied with the province’s investment environment, and the location of the industrial park as it’s near the airport and seaports. Moreover, Vietnam boasts a cheap and hard-working labour force, he added.

Vietnam remain in top 100 of FIFA rankings

The world’s football governing body FIFA announced the latest world rankings on July 20, with Vietnam ranked among the world’s top 100 sides and in Asia’s top 20, cruising to the second qualifying round of the Asian region for the 2026 FIFA World Cup.

Most Asian teams saw no change in their world rankings as they played no games over the last month. Accordingly, Thailand maintained their spot at 113rd globally with 1,174 points, while the Vietnamese side retained their 95th position with 1,238 points.

Photo: VOV

In Asia, Japan continued to lead the continent at 20th in the world, followed by world Iran at 22nd, world the Republic of Korea at 28th, and Saudi Arabia at 54th. Vietnam are at 15th.

Furthermore, Vietnam continue to lead Southeast Asia, followed by Thailand and the Philippines.

Thanks to their firm positions globally and continentally, Vietnam won’t need to take part in the play-off round to progress through to the group stage of qualifiers for both the 2026 FIFA World Cup and the 2027 AFC Asian Cup.

Vietnam are scheduled to play in World Cup qualifiers from mid-November 2023 to June 2024, reported VOV.

The latest global rankings witnessed many changes following a series of international matches during FIFA Days in June. In addition, there were intercontinental competitions such as 25 matches of the CONCACAF Gold Cup in the North, Central American, and Caribbean region, along with 37 matches at the SAFF Cup in South Asia and Consafa Cup in South Africa. Therefore, the latest global rankings saw Mexico, Cameroon, Canada, Panama, Kuwait, and Bangladesh rise on the list.

Globally, Argentina remained in top place, followed by France, Brazil, England, and Belgium.

FIFA is scheuled to announce the next rankings on September 21.

Musical tourism hoped to attract high-spending travellers to Vietnam

With many international singers choosing Vietnam as a destination of their world tours recently, musical tourism is expected to develop and help the country attract travellers who are ready to spend big.

Since preSince presale and official tickets for the 8Wonder Music Festival, scheduled to take place at the Vinpearl Nha Trang complex on July 22 evening, online room booking platform Agoda has recorded a surge in searches for accommodations in the coastal city of Nha Trang in central Khanh Hoa province, by 80% from domestic users and 25% in total.

The festival features US pop star Charlie Puth and many famous Vietnamese singers, namely Ha Anh Tuan, Ho Ngoc Ha, HIEUTHUHAI, MONO, Tlinh, Amee, and DJ Mie, VNA reported.

Visitors to the Vinpearl Nha Trang complex, the venue of the 8Wonder Music Festival on July 22 evening. (Photo: tuoitre.vn)

The Tuoi tre (Youth) newspaper cited Tran Minh Duc, Vice Chairman of the Nha Trang Tourism Association, as saying that this festival is a pioneer event in combing music with a leading tourism complex, helping draw more visitors to Khanh Hoa.

Nguyen Huy Hoang, Managing Director of Klook Vietnam – a travel experiences booking platform, said that international music events are important to tourism in any country as they grab the interest of not only fans in that country but also those from around the world.

Recent international music shows in the region have witnessed long queues of fans waiting to hunt tickets, indicating a strong connection between those events and tourism, he noted, adding that visitors come to a destination to enjoy a music show and also explore local destinations and culture.

The festival features US pop star Charlie Puth and many famous Vietnamese singers, namely Ha Anh Tuan, Ho Ngoc Ha, HIEUTHUHAI, MONO, Tlinh, Amee, and DJ Mie.

The Tuoi tre (Youth) newspaper cited Tran Minh Duc, Vice Chairman of the Nha Trang Tourism Association, as saying that this festival is a pioneer event in combing music with a leading tourism complex, helping draw more visitors to Khanh Hoa.

Nguyen Huy Hoang, Managing Director of Klook Vietnam – a travel experiences booking platform, said that international music events are important to tourism in any country as they grab the interest of not only fans in that country but also those from around the world.

Recent international music shows in the region have witnessed long queues of fans waiting to hunt tickets, indicating a strong connection between those events and tourism, he noted, adding that visitors come to a destination to enjoy a music show and also explore local destinations and culture.

Foreign investors flock to Vietnam's real estate market

Vietnam's real estate sector has emerged as a highly desirable destination for international investors, ranking second only to the manufacturing and processing industry, with over 1,100 projects amounting to $66.4 billion of foreign investment.

Vietnam's real estate market is drawing international investors at a rapid pace, noted Nguyen Anh Tuan, deputy director of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, at the recent seminar hosted by The Investor.

Vietnam's real estate sector stands as the second most attractive industry for foreign investment, trailing only behind the manufacturing and processing industry.

To date, the country has attracted over 37,500 projects, amounting to a total investment close to $450 billion. Of these, 1,100 projects were real estate investments, amounting to $66.4 billion, or 15 per cent of the total foreign investment.

International investors from 48 different countries and territories have poured money into Vietnam's property market, with leading investors hailing from Singapore, South Korea, the British Virgin Islands, and Japan. Out of the 45 provinces and cities that received foreign direct investment (FDI) in real estate, Ho Chi Minh City leads with a registered capital of over $16 billion, accounting for 24.7 per cent of total investment, followed by Hanoi, Binh Duong, and Ba Ria-Vung Tau.

Foreign firms investing in Vietnam's real estate sector are predominantly large-scale entities, noted Tuan, with projects ranging in diversity and quality.

Several FDI ventures have investments amounting to billions of USD, including projects such as the Ho Tram in Ba Ria-Vung Tau, the smart city in Hanoi, and the Nam Thang Long Urban Area in Hanoi, among others.

A range of factors is enticing foreign investors to Vietnam, including political stability, impressive economic growth, competitive manufacturing costs, a rich labour source, potential market opportunities, and a strategic geographic location that enables connections to large economies.

The country's extensive coastline offers prime locations for resort property development, coupled with an infrastructure system benefiting from robust investment, cited VIR.

Photo: VNN

However, Tuan cautioned that despite these advantages, foreign-invested real estate projects in Vietnam face issues of inefficiency.

Some large-scale land projects have suffered from sluggish implementation, while the complexity of administrative procedures concerning investment, construction, bidding, and land use often results in prolonged project execution. In particular, the legal system related to the real estate market is seen as not yet harmonious, clear, and adequately responsive to changes.

Nguyen Tuong Van, deputy minister of Construction, said that all these factors could potentially impact the future growth of Vietnam's real estate sector. To catch up with global trends and filter quality foreign investors in real estate, Vietnam needs to continue revising and refining its real estate market regulations.

The Ministry of Construction has been leading the drafting of amendments to the Housing Law and the Real Estate Business Law. Both projects were presented for comment during the 5th Session of the 15th National Assembly held from May 22 to June 23 this year. They are currently being fine-tuned, with approval expected at the 6th Session in November 2023.

Elsewhere, the Vietnam Real Estate Brokers Association recommended swift adjustment of foreign investment policies to keep pace with global economic fluctuations and changes in other countries' FDI strategies.

They emphasized creating a competitive, transparent investment environment, ensuring a ready supply of clean land, reviewing power planning, accelerating power projects, training quality human resources, and improving administrative procedures.

They also urged the government to promptly issue clear, detailed guidelines on the roles, responsibilities, and authority of those involved in checking, evaluating, and approving applications, to put an end to protracted administrative processing that costs businesses time and money.

Professor Nguyen Mai noted that foreign investors were wary of investing in countries where corruption is rampant, counterfeit goods are common, and intellectual property rights were not respected and enforced. Therefore, controlling these issues will open even more opportunities for Vietnam to draw foreign investors.

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