Ambassador Nguyen Phuong Tra, Charge d'affaires a.i. of Vietnam to the UN, speaks at the session. Photo: WVR/VNA

Vietnam backs UN’s efforts to improve road traffic safety: Ambassador

Vietnam has reaffirmed its support and contributions to the UN's efforts to improve road traffic safety at a UN General Assembly session being held on June 30 and July 1.

The session adopted the “Political declaration of the high-level meeting on improving global road safety”, with the 193-member General Assembly committed to driving the implementation of the Global Plan for the Decade of Action for Road Safety 2021–2030, including the goal to half road traffic deaths in the next eight years, cited WVR.

Speaking at the event, Ambassador Nguyen Phuong Tra, Charge d'affaires a.i. of Vietnam to the UN, affirmed that Vietnam totally supports the Decade of Action for Road Safety 2021–2030.

For the realization of its goal, she said it is necessary to strengthen road safety legislation at global, regional and national levels to address current and emerging challenges. In addition, more investment is needed in developing infrastructure and road safety capacity in low- and middle-income countries, where 90% of traffic accidents are reported.

Tra also emphasized the need to build a culture of traffic safety through education and awareness of obeying traffic laws such as using seat belts and helmets, as well as through the application and implementation of IT and innovation. In this process, developed countries and international financial institutions play an important role in transferring technology, sharing best practices, and providing financial support for developing nations, the diplomat added.

Master plan targets long-term prosperity for Mekong Delta

The recently-approved master plan for the Mekong Delta region in the 2021-2030 period with a vision to 2050 is expected to create new values and changes towards sustainable and green growth, and long-term prosperity for the region.

According to Carolyn Turk, Country Director for the World Bank in Vietnam, the master plan demonstrated the whole-of-government approach and a strong commitment to promoting sustainable development and enhancing the climate resilience of the Mekong Delta.

The planning highlighted the new mindset and new vision for the region considered a global hotspot for climate change, she said.

Hirai Shinji, Chief Representative of the Japan Trade Promotion Organisation (JETRO) in Ho Chi Minh City, said the master plan has well presented the view that the Mekong Delta’s development is in line with the socio-economic development of Vietnam in general.

Former Director of the Institute of Policy and Strategy for Agriculture and Rural Development under the Ministry of Agriculture and Rural Development Dang Kim Son said during the planning process, Vietnam had learned lessons through the involvement of experts from the Netherlands – the country is facing sea level rise, but ranks second in the world in exporting agricultural products, according to VNA.

Cai Rang floating market in the Mekong Delta city of Can Tho. Photo: VNA

He underlined the need to promote regional linkage and involve domestic and international investors developing the region.

For her part, Dutch Ambassador to Vietnam Nienke Trooster said to achieve the goal of turning the Mekong Delta into a land suitable for economic development and worth living, it requires an integrated approach through supporting and promoting high-value and sustainable agricultural production.

She recommended that the planning of the Mekong Delta should be carried out on the principle of conformity with natural ecological conditions, and meeting the demand of consumers and the market.

Meanwhile, Turk said the planning should be accompanied by a strategic and feasible action plan, which investment priorities in a time frame and with certain resources for socio-economic development are clearly defined.

Ministry proposes cuts to VAT, luxury taxes to help lower petrol prices

The Ministry of Finance (MOF) has submitted to the Prime Minister a plan to reduce the luxury tax and VAT on petroleum products in an effort to curb prices.

A representative of the ministry told VietNamNet that along with the environmental protection tax cuts to floor tax rates applied until the end of December 31, 2022, and the MFN (most favored nation) tax adjustments, MOF has submitted to the Prime Minister a plan to cut the luxury tax on petrol and VAT on petroleum products to help lower prices.

The tax cuts have not been revealed, but the information has been applauded. MOF wants to ease the financial burden on people and help businesses cut operation costs.

Prior to that, MOF completed a draft resolution of the National Assembly’s Standing Committee on adjustment of the environmental protection tax on petrol, oil and lubricants until the end of 2022.

The ministry plans a VND500-1,000 per liter reduction in environmental protection tax on products to stabilize domestic prices amid price fluctuations in the world market, reported VNN.

The proposed decreases are VND1,000 per liter on petrol (from VND2,000 to VND1,000 per liter), and VND500 per liter on air petrol (from VND1,500 to VND1,000 per liter).

In March, based on the proposal from MOF, the Government and National Assembly Standing Committee approved the resolution on the adjustment of the environmental protection tax until the end of 2022.

Photo: VNN

Under the resolution, since April 1, the environmental protection tax on petrol has decreased from VND4,000 per liter to VND2,000. Meanwhile, the tax rate on diesel, mazut and lubricant has fallen by VND1,000 per liter, from VND2,000 to VND1,000. The tax rate on kerosene has fallen by VND700 per liter from VND1,000 to VND300.

Cutting taxes further to curb petrol prices is a solution supported by many economists and government officials. The issue was put into discussion in the latest National Assembly session, where Minister of Finance Ho Duc Phoc said he supported cutting taxes and fees.

Economists also support a tax cut plan, saying that it is necessary to curb petrol prices so as to curb inflation, because high inflation will cause serious consequences to the national economy.

Vietnam remains an attractive destination for foreign investors: Experts

Though Vietnam is said to have certain advantages, to maintain sustained success, the country should be a diligent student of not only the upsides, but also the lessons learnt of other countries, said Moritz Kraemer, former Global Chief Ratings Officer of Sovereign Ratings Group at S&P Global and currently the Chief Economist, Head of Research of Landesbank Baden Wuerttemberg (LBBW).

The expert held that the world is in turmoil, and the old model of globalisation is severely tested as erstwhile reliable supply chains are ruptured and seem to refuse to heal. Moreover, inflation appears to be getting out of hand in much of the advanced economies as commodity prices soar and labor becomes increasingly scarce.

He predicted that international companies will progressively search out new locations in their quest to diversify sources of supply, after they have become painfully aware of the risk that comes with putting most of their eggs into one basket. A place more and more of them seem to find to fit that bill is Vietnam, a country that offers political and monetary stability, economic openness, and an industrious workforce and still competitive labour costs, he stressed.

Jens Ruebbert, LBBW’s Managing Director and Regional Head for the Asia Pacific region. Photo: VNA

Vietnam will outgrow some Asian countries going forward as its net FDI inflows have averaged 5% of GDP annually, by far the highest ratio in the region, said Kraemer, asserting that investment is attracted by the still plentiful and relatively cheap labour, making Vietnam an exporting powerhouse.

Regarding lessons for Vietnam in economic development to ensure sustainable success, Kraemer said that right now, Vietnam is still full of promise. The recent ratings upgrade by S&P Global makes it likely that the country will be the next “rising star”, he said.

“I believe that sustained success demands that the country’s leaders remain vigilant in planning economic and human development strategies. The investors that are now flogging to Vietnam might otherwise move on looking for greener pastures in the next Vietnam. By applying appropriate measures, Vietnam will remain an attractive destination for foreign investors,” Kraemer said.

Meanwhile, Jens Ruebbert, LBBW’s Managing Director and Regional Head for the Asia Pacific region, underlined that in many ways, Ho Chi Minh City is a place of seemingly limitless promise, cited WVR.

By applying a suitable population policy, Vietnam managed to avoid the labour crunch and have an abundant workforce. However, the country’s dynamic population will lead to other challenges, he held.

“This also underlines the urgent need for Vietnam to safeguard a sustainable path towards prosperity as well as to upgrade the population’s skill level, speeding up the climb up the value chain," the official stressed.

Real estate firms advised to catch up with green growth trend

Positive changes in the real estate sector are crucial if the country wants to meet its green growth targets. Along with construction, the sector is the source of nearly 40% of carbon emissions in the world and consumes about 36 percent of total power generated globally, according to experts.

Real estate firm Savills cited the Global Status Report for Buildings and Construction 2021, which showed that in 2020, the real estate and construction sector accounted for 36% of global final energy consumption and 37% of energy related CO2 emissions, as compared to other end use sectors.

Building activities ares the reason for 27% of total CO2 emissions every year, it noted.

Illustrative image. Source: VNA

Savills General Director Troy Griffiths affirmed that real estate is an area that poses the strongest impacts on the environment.

In late 2021, the Government of Vietnam approved a national strategy on green growth for the 2021-2030 period with a vision to 2050, which aims to switch the country’s growth model towards a greener economy with the application of a circular economic model through the economical and efficient use of natural resources and energy, and developing sustainable infrastructure for higher growth quality, thus promoting competitiveness and reducing negative impacts on the environment, cited VNA.

According to Savills World Research Director Paul Tostevin, the number of office buildings meeting green criteria in cities remains modest, but this provided a good chance for investors to develop green real estate.

Sharing Tostevin’s ideal, Savills Earth Director Chris Cumming underlined that future office upgrades are driven by tenants and investors. The investment market will experience strong competition with green certified office buildings, he said.

He explained that cities pursuing green goals are paying increasing attention to carbon emissions from construction and giving priority to equipping themselves with new modern equipment.

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