Vietnam News Today (May 6): Vietnam Remains a Magnet for FDI

Photo: VNA

Vietnamese President meets Vietnamese community representatives in UK

State President Vo Van Thuong met with representatives of the Vietnamese expat community in the UK on May 4 following his arrival in London as part of a trip to attend the coronation of King Charles III at the invitation of the Royal Family of the UK.

During the meeting, the Vietnamese State President showed his elation at the strong growth of the group and their associations in the host nation. He noted that their operations have helped to enhance the role and position of Vietnamese people within the UK, whilst simultaneously making effective contributions to Vietnamese development and the nurturing of the joint friendship.

He also hailed the communities’ activities which have taken place in the UK, particularly during the COVID-19 pandemic and for charity programmes.

The Vietnamese Party and State considers the Vietnamese expatriate community as an indispensable group, the leader outlined, expressing his hope that the group will integrate well into the host nation, overcome difficulties, and notch up further successes, cited VOV.

Highlighting the nation’s unwavering foreign diplomatic policy of independence, self-reliance, and openness, along with the significance of mutual ties, the Vietnamese President said both sides are ramping up linkages across multiple fields towards the upgrade of ties moving forward.

The UK boasts many areas of strength and potential for the promotion of bilateral collaboration, such as industry, education, finance, currency, and pharmaceuticals, President Thuong noted.

He affirmed his current visit aims to consolidate and reinforce ties, political trust, and co-operation across all sectors.

Noting the suggestions and wishes of Vietnamese expatriates, President Thuong asked the Vietnamese Embassy in the UK, ministries, and relevant agencies at both home and abroad to pay greater attention, support, and create more favourable conditions for Vietnamese associations in the UK as a way of promoting their operational efficiency. This will serve to contribute more to the positive development of the Vietnam - UK friendship moving forward.

At the gathering, Vietnamese Ambassador to the US Nguyen Hoang Long said there are approximately 100,000 Vietnamese nationals living, studying, and working across the UK, mostly in the capital.

He stated that the Embassy and overseas Vietnamese associations are carrying out a series of plans and programmes aimed at introducing Vietnam in London and several other major cities across the UK to mark the 50th anniversary of bilateral diplomatic ties this year.

Ceremony held to commemorate soldiers safeguarding national sovereignty

The “Le khao le the linh Hoang Sa” (Feast and Commemoration Festival for Hoang Sa Soldiers) took place at An Vinh communal house in Ly Son district, the central province of Quang Ngai, on May 5 or 16th days of the third lunar month.

The event is to pay tribute to the soldiers who sacrificed their lives over the centuries guarding the Hoang Sa (Paracel) and Truong Sa (Spratly), according to VNA.

It has been observed through over 400 years by communities on Ly Son island and many coastal areas in the province. It was recognised as a national intangible cultural heritage by the State in 2013.

During the rituals, paper boats with effigies of sailors are launched into the seas and respects are paid to the lost sailors’ symbolic tombs.

According to Vietnam’s feudal state history, the Hoang Sa Flotilla was set up in 17th century when the Nguyen Lords began their reign in the south of the country.

The “Le khao le the linh Hoang Sa” (Feast and Commemoration Festival for Hoang Sa Soldiers) took place at An Vinh communal house in Ly Son district on May 5. (Photo: VNA)

Thousands of sailors braved roaring waves and storms to survey sea routes, plant markers and erect steles affirming the national sovereignty over the Hoang Sa and Truong Sa. These areas were secured marine resources under the order of the Nguyen Lords. Their missions were full of danger, and many of them never returned to land.

Therefore, before the soldiers left for their missions, a feast was held for them, hence the beginning of the tradition.

The festival reflects Vietnam’s history of protecting the national sovereignty in the East Sea, especially over the Hoang Sa and Truong Sa.

After the commemoration on the day, the Tu Linh boat race was held to pray for a year of favourable weather and bumper catches ahead. The festival is called Tu Linh because the racing boats are decorated with symbolic shapes of the quartet of mythological creatures in Vietnam’s traditions and beliefs including the dragon, qilin, tortoise, and phoenix.

Vietnamese businesses seek investment opportunities in US

The Vietnamese Embassy in Washington DC working in co-ordination with the strategic consulting firm The Asia Group organized a meeting on May 4 with Vietnamese businesses attending the 2023 SelectUSA Investment Summit.

Those in attendance at the event included Diane Farrell, deputy under secretary for International Trade, US Ambassador to Vietnam Marc Knapper; representatives of the Department of State, the Department of Energy, the Office of the United States Trade Representative (USTR), the administrations of a number of states in which Vietnamese enterprises have run investment projects, as well as a number of associations and US enterprises investing in Vietnam.

The Vietnamese delegation to this year’s summit consists of more than 30 delegates from 20 businesses that have or are intending to invest in the US in different fields and industries, such as electric vehicle and battery manufacturing and assembling, technology, software, interior design, construction, logistics, transportation, food, and packaging.

Some businesses such as VinFast Auto have pledged large investments in the US and have duly contributed to bringing the nation to ninth position in the list of 10 countries in the Asia-Pacific region with the largest investment commitments in the US for the period from January, 2013, to December, 2022.

As part of his address, Vietnamese Ambassador to the US Nguyen Quoc Dung emphasized the developments made in mutual relations on the occasion of the 10th anniversary of the Comprehensive Partnership, while hoping that Vietnamese businesses will find more partners and investment opportunities in the US, thereby further tightening bilateral ties between the two sides.

Farrell pledged that the US Government will strive to create favourable conditions for Vietnamese businesses to make the right choices when investing in the US.

Vietnamese businesses shared their business plans in this market, going on to express their hope that both nations’ government agencies would continue to support their business investment activities in the US, VOV reported.

Vehicle assembly is one of the areas where Vietnamese businesses plan to invest in the US.

The same day saw Ambassador Dung and Ambassador Knapper attend a roundtable discussion with US businesses, hosted by The Asia Group.

The US business representative highly appreciated Vietnamese development potential, presented business and investment plans in the nation, and contributed ideas to further boosting Vietnamese development, especially in the fields of energy, aviation, technology, and climate change response.

The 2023 SelectUSA Investment Summit is an important annual conference aimed at attracting direct investment in the US. This year’s event ran from May 1 to May 4 in the state of Maryland, drawing nearly 4,000 attendees along with the presence of economic development organizations (EDOs) from states and territories throughout the US, including more than 1,200 investors from over 70 countries and territories globally.

The US remains the world's largest recipient of direct investment.

Vietnam remains a magnet for FDI: The Banker

In a recent article released by The Banker, an international financial affairs publication owned by The Financial Times, Vietnam weathered the COVID-19 pandemic better than most south-east Asian economies.

The nation's GDP growth hit 8 percent in 2022, up from a low base, and is projected to reach 6.3 percent in 2023, according to World Bank estimates.

The government managed to keep the economy ticking over without resorting to massive relief programs that would have raised public debt. Public debt has, in fact, fallen from 44 percent of GDP in 2018 to about 40 percent last year-thanks in part to a repositioning of the GDP number in 2019.

Export recovery

According to The Banker, Vietnam has a two-pronged economy. There is the export-led economy, fueled mainly by the FDI that started to pour into Vietnam a decade ago, attracted by the low labor costs, a youthful population of 100 million and an open economy with 15 free trade agreements.

In 2022, FDI disbursements reached US$22.4 billion, helping to fuel exports of US$371.8 billion and a US$11 billion trade surplus. Exports to the U.S. alone reached US$109.4 billion (up 13.6 percent), with a trade surplus of US$94.9 billion (up 17 percent).

According to a 2019 poll conducted by the Japan External Trade Organization, around 40 percent of the Japanese firms looking to shift their overseas production cited Vietnam as their preferred choice.

Even Chinese companies, especially those in the supply chain clusters for the electronics sector, have been shifting their production to Vietnam.

The Ministry of Planning and Investment's Foreign Investment Agency (FIA) announced that FDI stood at US$8.88 billion in the first four months of 2023, equivalent to just 82.1 percent compared to the same time last year.

Over 750 new projects were granted investment registration certificates in the same period, with total registered capital of over US$4.1 billion, up 65.2 percent in the number of projects and up 11.1 percent on-year in terms of capital.

The adjusted capital of almost 386 ongoing projects stood at about US$1.66 billion, up 19.5 percent on-year in number but down 68.6 percent in capital terms.

Photo: VNN

There were approximately 1,044 capital contributions and share purchases as of April 20, equivalent to US$3.1 billion, showing an increase of 70.4 percent over the same period last year.

In addition to the decrease in FDI, the country's disbursed capital also saw a slight decline of 1.2 percent to US$5.85 billion.

Vietnam's trade with the rest of the world totaled US$210.79 billion in the first four months this year, a decline of 13.6 percent against the same period last year, reported the General Statistics Office (GSO).

Of the above figure, export turnover fell by 11.8 percent to US$108.57 billion while import value dropped by 15.4 percent to US$102.22 billion, resulting in a trade surplus of over US$6 billion.

Smart travel card launched to promote digital transformation

The Viet – Smart Travel Card was officially launched by Tourism Information Technology Centre (TITC) under the Vietnam National Administration of Tourism on May 5.

It aims to introduce new utilities applied in the digital transformation of the tourism industry with tour operators and tour guides' community, opening up new opportunities in tourism operation and business in Vietnam.

The Smart Travel Card is a product of the programme "Vietnamese card - one national card" hosted by the Ministry of Industry and Trade. It is integrated in the fields of tourism, health care, banks, trade, transportation and education, supporting users with one-touch and online payment, cited VNA.

Illustrative image. Photo: pos365.vn

The card has also been integrated into the “Vietnam Travel” application. When downloading the application, in addition to the smart travel card, tourists have an opportunity to use an ecosystem of technology utilities such as booking airline tickets and hotels, buying e-tickets, looking up tourist digital maps, and searching for businesses providing travel services.

According to Hoang Quoc Hoa, deputy director of the TITC, three key products, namely Smart Travel Card, Vietnam Travel application and Tourism Management and Business platform, are widely used in the tourism community in Vietnam with the goal of promoting digitalisation of the tourism industry,

Bui Van Dung, Vice Chairman of the Vietnam Tour Guides' Association, said that the smart travel card will facilitate the operation of tourism managers team as well as encourage creativity in the application of digital technology to support tourism development.

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