Vietnam News Today (Mar 26): Vietnam And US to Concretise Comprehensive Strategic Partnership

At the Vietnam – Canada business forum on March 25. (Photo: VNA)

Forum looks to promote Vietnam – Canada economic ties via CPTPP

A Vietnam – Canada business forum was held in Hanoi on March 25, aiming to enhance the bilateral economic relations via the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

In his opening remarks, Vice Chairman of the State Committee for Overseas Vietnamese (OV) Affairs under the Ministry of Foreign Affairs Nguyen Manh Dong highlighted that OVs and OV businesses have unceasingly developed and affirmed their positions in foreign countries over the past time.

The Vietnamese entrepreneur community, which has been present in 130 countries and territories across the globe with 30 associations, has worked as bridges promoting economic-trade ties between Vietnam and other nations, he said, laying a stress on the contributions made by Vietnamese enterprises in Canada to consolidating and boosting the Vietnam – Canada Comprehensive Partnership in all areas, especially when both nations are members of the CPTPP, cited VNA.

He went on to point out that the Vietnam – Canada Business Association (VCBA) has organized various trade and investment promotion activities in both nations.

Dong expressed his hope that the forum would create opportunities for competent quarters to contribute to delivering on the goals of the two nations under their comprehensive partnership as well as the trade pact.

At the event, participants discussed and introduced potential and opportunities of Vietnamese exports in the fields of construction, garment and textiles, footwear, furniture, steel and machines, among others to Canada and the North American market as a whole.

They held that Vietnam has effectively capitalized on the CPTPP to bolster shipments to Canada where Vietnamese goods are entitled to the Most Favored Nation (MFN) tariff and Generalised System of Preferences

However, several businesses described stringent requirements and trade barriers in Canada and the North American market as challenges for Vietnamese exporters.

The VCBA was set up in October 2022 under the direction and accompany of the Vietnam Consulate General in Vancouver. The association has connected Vietnamese and Canadian entrepreneurs with a desire to run business and land investments in the two countries, helping enhance the bilateral economic ties.

Vietnam and US to concretise comprehensive strategic partnership

Vietnamese Foreign Minister Bui Thanh Son and United States Secretary of State Anthony Blinken are scheduled to hold their first annual dialogue during the former’s current working trip to the US from March 23 to 29, in an effort to materialize the comprehensive strategic partnership between the two countries.

The dialogue represents a new cooperation mechanism approved during US President Joe Biden’s visit to Vietnam last September and subsequently prescribed in the Joint Leaders’ Statement on the upgrading of bilateral relations to that of a comprehensive strategic partnership.

Both sides have established a number of dialogue mechanisms at ministerial and expert levels, with a specific focus on politics-security-defense, employment, energy security, science-technology, trade, and human rights, as well as Asia-Pacific cooperation in general, according to VOV.

Vietnamese Minisster of Foreign Affairs Bui Thanh Son (R) and US Secretary of State Anthony Blinken meet during the latter's Hanoi visit in April 2023. (Photo: VGP)

These mechanisms have been working well, thereby contributing to promoting linkages between the two countries in priority areas of mutual concern, helping to share information, improve understanding, and narrow differences and disagreements that may exist, said Vietnamese Ambassador to the US Nguyen Quoc Dung.

The establishment of the comprehensive strategic partnership is expected to open up fresh collaboration opportunities between Vietnam and the US. The two countries have recently conducted regular exchanges to devise cooperation measures, especially in the fields of trade, finance, science-technology, education-training, and cooperation between localities.

The September 2023 joint statement outlined 10 pillars of collaboration that require closer and more effective ties between the two countries in order to clarify the comprehensive and strategic links in bilateral relations.

The dialogue between the two diplomatic chiefs is therefore expected to review the implementation of 10 pillars of cooperation outlined in the joint statement, figure out obstacles and hammer out measures in a bid to realize fields of cooperation, said the Ambassador.

Along with the dialogue, Minister Son is anticipated to meet with National Security Advisor Jake Sullivan, hold working sessions with senior officials from the Department of State and the National Security Council, and receive representatives of a number of large US businesses.

He will also deliver an important speech at the Brookings Institution, a leading public policy organization in the US, as a way of helping the American public to understand more about Vietnamese foreign policy, as well as progress in bilateral relations.

More Vietnamese people go cashless: Visa study

Visa, a global leader in digital payments, has provided its insights into Vietnam’s payment landscape with its latest Consumer Payment Attitudes study that highlights the surge in cashless transactions among Vietnamese consumers.

According to the study, 56% of Vietnamese respondents surveyed are now carrying less physical cash than they did a year ago, signaling a progressive mindset towards embracing new financial technologies. Particularly, young consumers are playing a pioneering role in the shift towards cashless payment, with 89% of the surveyed having successfully adopted cashless methods.

Visa also delves into the prevailing trends that shape up the non-cash economy in Vietnam, including the ascendance of mobile wallets. It said Vietnam is among the top Southeast Asian markets with rapid adoption of mobile wallets as the preferred method for making payments, contributing to accelerating the growth of digital finance. The country is poised to emerge as one of the regional leaders in mobile finance as four in every five Vietnamese consumers utilize mobile wallets.

Meanwhile, real-time payments (RTPs) have gained significant momentum in Vietnam, an illustration for the nation’s embrace of cutting-edge financial technologies. The RTPs offer unparalleled convenience and efficiency, driving further digitisation of the economy. In Vietnam, RTPs are growing in popularity, with at least two in five consumers having used them. Application of the RTPs has been diversified, comprising cross-border transactions, peer-to-peer transfers, merchant/retailer payments, and bill payments.

Furthermore, buy now pay later (BNPL) is a popular service availed by Vietnamese consumers, offering flexible payment options and driving consumer engagement. Visa's strategic partnerships with leading Vietnamese retailers for Visa Installment Solutions demonstrate the transformative impact of such solutions in fostering financial inclusion and driving business growth.

Credit cards, although less utilized for wallet top-ups and funding, are the preferred choice for BNPL plans in Vietnam. Easy to use apps, free vouchers, rewards points, and the ease of tracking payments were the key drivers for the uptake of BNPL offers, VNA reported.

Vietnamese consumers are carrying less cash than they did a year ago. (Photo: tuoitre.vn)

Vietnam's cashless payment revolution presents unprecedented opportunities for economic growth and innovation, unlocking opportunities for consumers and businesses alike in the continued shift to a cashless society.

Visa Country Manager for Vietnam and Laos Dang Tuyet Dung said Visa remains committed to driving innovation and enhancing digital payment experiences for consumers.

The findings from the Visa study affirm the growing trend towards contactless transactions, exemplified by a significant 53% increase in contactless transactions made on Visa cards, a 19% surge in purchases made on Visa cards, along with a substantial rise in the total value of cross-border transactions, she added.

Statistics from the State Bank of Vietnam (SBV) revealed that non-cash payment and digital banking activities have shown positive results. As of the end of 2023, the number of individual payment accounts reached more than 182.88 million, up 21.8% year-on-year.

In January 2024, non-cash transactions surged 63.3% in volume and 41.45% in value as compared to the same time last year. Meanwhile, transactions through the internet rose 57.85% in volume and 32.43% in value, and through QR codes shot up 892.95% in volume and over 1,062% in value.

The SBV has encouraged credit institutions to carry out digitalisation, promote cooperation with different sectors to form and expand the digital ecosystem, while completing legal framework, mechanisms and policies on non-cash payment.

Vietnam praises IPU’s role in promoting cooperation amid global challenges

Amid global challenges, Vietnam highly appreciates the Inter-Parliamentary Union’s important role and position in promoting dialogue and cooperation, seeking peace-building solutions, and strengthening compliance with international law, especially the United Nations Charter, to contribute to achieving sustainable peace.

Vice Chairman of the National Assembly of Vietnam Tran Quang Phuong was speaking at a meeting with IPU President Tulia Ackson, in Geneva, Switzerland, on March 24 on the sidelines of the ongoing IPU-148 General Assembly.

He said that Vietnam has actively and responsibly engaged in IPU activities since it joined the organization in 1979. The country has successfully hosted a number of major IPU events, including the IPU-132 General Assembly in 2015, the Symposium on Climate Change in the Asia-Pacific Region in May 2017, and the ninth Global Conference of Young Parliamentarians in September 2023.

Vice Chairman of the National Assembly of Vietnam Tran Quang Phuong (L) meets with IPU President Tulia Ackson, in Geneva, Switzerland, on March 24.

Attending IPU activities is an important task in Vietnam’s multilateral parliamentary diplomacy to contribute to finding solutions to global problems, towards achieving the IPU’s common goals of peace, democracy and prosperity, stressed Phuong.

He requested that the IPU President promote linkages between the Vietnamese National Assembly and IPU activities as well as other related multilateral mechanisms, and support the Vietnamese legislature to host a number of important events of the IPU, especially the World Conference of Speakers of Parliament, cited VOV.

IPU President Tulia Ackson for her part spoke highly of Vietnam’s active participation in the IPU, especially its recent successful hosting of the ninth Global Conference of Young Parliamentarians.

She said she hopes that the two sides will continue to coordinate closely in joint IPU events in the coming time, contributing to improving the efficiency of parliamentary activities.

Vietnam emerges as fast-growing data center market

Vietnam is assessed as one of the fastest-growing data center markets globally, driven by the digitalisation efforts of domestic small- and medium-sized enterprises (SMEs), tech-savvy young population, the advent of 5G, demand for self-sufficient digital infrastructure, and data localisation.

The Vietnamese market surged to over US$1 billion last year, nearly double the figure logged in 2022. Currently, most of those participating in the local data center segment are domestic telecommunications companies, VNS reported.

Internet data center (IDC) in Hoa Lac Hi-Tech Park. This is the largest IDC in Vietnam, invested by VNPT. Photo: VNPT

According to the real estate consultancy firm Savills Vietnam, there are 28 data center projects nationwide with a combined capacity of 45MW. The market sees involvement of 44 service providers. Notably, in August 2022, Amazon Web Services (AWS) announced the launch of data centers in Hanoi and HCM City.

Similarly, a study by Cushman & Wakefield Vietnam reveals that compared to mature markets like Singapore, Tokyo, Sydney, Beijing and Shanghai, Vietnam remains relatively "young". While major international cloud service providers have yet to establish a significant presence, some international telcos have entered through partnerships with domestic peers. Projects of small and medium scales undertaken by domestic firms are underway in both HCM City and Hanoi.

According to Trang Bui, CEO of Cushman & Wakefield Vietnam, the nation is experiencing rapid population growth – particularly in the middle class, along with urbanization, high internet penetration, and active digital adoption in banking and business operations.

However, despite its advantages, Vietnam currently lacks data center infrastructure on a global scale to match its population ratio. This may pressure domestic investors in terms of construction challenges, scarcity of experienced labor and supply chain logistics.

Cushman & Wakefield Vietnam's expert suggests investors continue to eye this sector, particularly focusing on larger-scale projects rather than building numerous small facilities.

The CEO analyzed that southern provinces could become favored destinations thanks to abundant land reserves, readily available electricity within industrial zones, and major national submarine cable landing stations in Quy Nhon, Da Nang and Vung Tau. Additionally, renewable energy accounts for a quarter of the national energy mix.

Data centers are expected to play a crucial role in supporting Vietnam's digital transformation. Therefore, despite being in the nascent stage, many foreign investors anticipate effective investment-attracting policies in the near future.

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