Vietnam News Today (Oct. 29): Vietnam-RoK Trade to Hit US$100 Billion by 2023

As of September 2022, the RoK had run some 9,438 valid projects worth 80.5 billion USD, ranking first in terms of registered capital and project number in Vietnam. Photo: VNA

Vietnam-RoK trade to hit US$100 billion by 2023: committee

The trade turnover between Vietnam and the Republic of Korea (RoK) reached US$66.8 billion in the first nine months of this year, up 18.2% year-on-year, and the set target of US$100 billion will be fulfilled by 2023 if the pace is maintained, heard a meeting in Hanoi on October 28.

The 19th meeting of the Intergovernmental Committee for Economic–Commercial and Scientific–Technological Cooperation was co-chaired by the Vietnamese Ministry of Planning and Investment (MPI) and the Korean Ministry of Foreign Affairs.

It reviewed cooperation between the two countries since the previous meeting, and outline cooperation orientations in the time ahead. Specifically, participants compared notes on solutions to forge collaboration in trade, investment, labour and social affairs and development cooperation.

The MPI reported that the Vietnam-RoK relationship has made progress across spheres over the past years. Since the establishment of the bilateral diplomatic ties 30 years ago, cooperation between the two countries has seen outstanding developments in all fields, bringing interests to both sides and helping promote mutual trust and understanding.

As of September 2022, the RoK had run some 9,438 valid projects worth US$80.5 billion, ranking first in terms of registered capital and project number in Vietnam, according to Do Van Su, head of the MPI’s Foreign Investment Agency (FIA).

He noted that Korean firms continue playing an important role in the Vietnamese economy, making up about 30% of the country’s combined export value.

Last year, the RoK was Vietnam’s third biggest trade partner, after China and the US, with two-way trade hitting US$78 billion, a year-on-year rise of 18.2%. The RoK was also Vietnam’s fourth biggest buyer and second biggest supplier, said Nguyen Duy Kien from the MPI’s Asia-Africa Market Department.

MPI Deputy Minister Tran Quoc Phuong stressed the significance of both new and existing projects to Vietnam in the context of the global economy and trade recovering after the Covid-19 pandemic.

Therefore, Vietnam will create the best possible conditions for Korean firms to invest and expand operations in the country, he pledged.

Korean Deputy Foreign Minister Yun Eeong Deok briefed the participants on obstacles to Korean investors in Vietnam, and suggested the Southeast Asian nation work to remove them.

The Vietnamese side proposed the Korean Government encourage big groups of the RoK to pour investments into Vietnam’s priority areas like high tech, electronics, renewable energy, infrastructure development, the construction of intensive technology clusters, and high-quality agriculture.

Regarding official development assistance (ODA), Director of the MPI’s External Economic Pham Hoang Mai noted that Vietnam has received about 20% of the RoK’s total ODA.

The East Asian nation’s total assistance to Vietnam has been valued at more than US$500 million recently, with 90% ODA and 10% non-refundable aid, the official added.

In terms of development cooperation, priorities have been given to transport and urban infrastructure, health care, education-training, environment, clean energy and IT, cited VNA.

Apart from ODA, the RoK has been ready to provide Vietnam with preferential credit loans through a financial cooperation framework to support the Southeast Asian nation in implementing large-scale infrastructure projects.

The meeting also sought ways to boost collaboration in industry, energy, transport infrastructure, construction and finance-banking.

The two sides agreed to step up exchanges and the sharing of information in the time ahead.

Vietnam will call for more the ODA and preferential loans from the RoK, and suggest the country facilitate Vietnam’s export of some agricultural products and food, and joint efforts to raise the two-way trade to US$100 billion by 2030 and US$150 billion by 2050.

Vietnamese universities named in World University Rankings by Subject 2023

Vietnamese universities were featured in seven out of total 11 subjects listed in the World University Rankings (WUR) by Subject 2023 by the Times Higher Education (THE).

Ton Duc Thang University in the computer science subject and Duy Tan University in the clinic and health subject ranked in the 176 and 200 band, the highest ranking ever achieved by Vietnamese universities.

Most notably, Vietnam National University, Hanoi (VNU) had six subjects listed among the WUR by Subject 2023, including Business and Economics, Life Sciences, Computer Sciences, Engineering, Physical Sciences and Social Sciences.

This year witnessed the presence of Hue University for the first time to rank among the 1001+ band in the subject of physical sciences.

Photo: VOV

Two universities, including Duy Tan University and Ton Duc Thang University, were seen in the same 301 to 400 band in business and economics, as well as social sciences subjects, respectively.

The Hanoi University of Science and Technology was named among the 801 to 1000 band in physical sciences subject and in the 601 to 800 band in the computer science subject, according to VOV.

The engineering subject witnessed the Vietnam National University, Ho Chi Minh City place in the 1001+ band.

The WUR by Subject 2023 ranked 11 subjects of universities based on three data sources, including results of surveys independently conducted by THE, the scientific publication database on the Scopus system under the publisher Elsevier, and data provided by the higher education institutions.

The ranking results were therefore evaluated based on five groups of criteria, including Teaching, Research, Citation, Industry Income, and International Outlook.

Vietnam forecast to be fastest growing market for centi-millionaires over next decade

The fastest growing market for centi-millionaires, who boast US$100 million or more in investable assets, over the next decade is forecast to be Vietnam, according to The Centi-Millionaire Report.

Under the report released recently by leading international residence and citizenship by investment advisory firm Henley & Partners, with an astonishing 95 per cent growth rate predicted, this emerging Asian manufacturing hub is expected to see a strong growth of centi-millionaires in the real estate, technology, and financial services sectors.

India is next in line with an anticipated 80 per cent growth rate in individuals worth more than US$100 million by 2032.

Mauritius has recently emerged as a hot spot for migrating centi-millionaires, with growth of 75 per cent predicted for this safe, business-friendly African island nation. Three other countries on the continent make it into the top league of fastest growing centi-millionaire markets ­in the next decade — Rwanda (70 per cent), Uganda (65 per cent), and Kenya (55 per cent).

­­New Zealand and Australia are also forecast to enjoy exceptional growth with 72 per cent and 60 per cent, respectively, reported VNS.

The US is home to an astonishing 38 per cent (9,730) of global centi-millionaires, despite constituting only 4 per cent of the world’s total human population. The big emerging markets of China and India follow in second and third place, with populations of 2,021 and 1,132 centi-millionaires, respectively. They rank significantly higher than the main European markets by this measure, with the UK in fourth place (with 968 centi-millionaires) followed very closely by Germany in fifth place (with 966).

Punching above its weight, Switzerland ranks sixth on the list with 808 inhabitants worth more than $100 million despite its small size and population. Japan (765), Canada (541), Australia (463), and finally Russia (435) make up the rest of the top ten countries for centi-millionaires.

A view of HCM City. Vietnam is expected to see strong growth of centi-millionaires in the real estate, technology, and financial services sectors. Photo: dangcongsan.vn

As Dr. Juerg Steffen, CEO of Henley & Partners, points out, the $100 million plus band represents the best definition in today’s world of what it means to be ‘super-wealthy’.

“The centi-millionaire is someone so affluent that they don’t need to think about how much they spend," he said.

"In fact, the level of wealth they have achieved means they are unlikely to ever worry about money again. Not long ago, in the late 1990s, US$30 million was considered the fortune needed to meet this definition. However, asset prices have risen significantly since then, making US$100 million the new benchmark.”

According to the report, there appears to be no set path to attaining centi-millionaire status; some inherited their wealth while others worked their way up to the US$100 million mark. However, the report does point out some notable generational differences. While a growing number of younger entrepreneurs who founded successful tech companies are newcomers to the club, Baby Boomers still tend to dominate the centi-millionaire circle despite many now cashing in their stock options and selling their businesses.

Author, financial writer, and global investment expert Jeff Opdyke says that ultimately, centi-millionaires face the same issue as all investors — they just have more wealth to protect.

“A basic tenet of wealth preservation in the 21st century, regardless of wallet size, is diversifying away from the risk of having most or all of one’s assets exposed to a single currency, a single government, and a single legal, taxation, and financial system,” Opdyke said.

He added: “In an era where currencies are burdened by the debts and economic weaknesses of the countries they represent, it doesn’t take much to undermine the status quo. Just look at the British pound. In the span of less than two months, it lost nearly 30 per cent of its value relative to the dollar. That’s a major Western currency. The same can easily happen to the dollar.”

Vietnamese legislature shares experience in promoting post-Covid-19 economic recovery

For the first time in a decade the nation has achieved an annual economic growth rate of roughly 8%, while inflation has been controlled to ensure major economic balances.

This view was shared by Vietnam and international friends at the 30th annual meeting of the Asia Pacific Parliamentary Forum (APPF-30) which is currently underway in Bangkok, Thailand from October 26 to October 29.

The meeting continued to discuss matters relating to politics-security, the role of young parliamentarians in realising the goal of “No one is left behind”, economics, and trade issues.

During the sessions delegates from APPF member states shared their policy perspectives and experience in strengthening the role of the legislature in addressing challenges that have impeded economic recovery and development in the post-Covid period.

Photo: VOV

They also proposed measures and urgent actions aimed at supporting people's livelihoods following the pandemic.

Delegates also discussed the legislative body's role in enhancing regional reconnection in terms of human resources, trade, investment, digital transformation, climate change, and food and energy security towards an Asia-Pacific region of sustainable growth, balance, inclusion, and prosperity, cited VOV.

Sharing the Vietnamese experience, Vu Hai Ha, chairman of the National Assembly (NA) Foreign Affairs Committee and head of the Vietnamese delegation at the APPF-30, said, "The National Assembly of Vietnam has been very active in accompanying the Government to promulgate and implement recovery programmes, especially the National Assembly's promulgation of Resolution 30, which assigns the Government specific, and special powers to be proactive in pandemic prevention and control and socio-economic recovery.”

“The National Assembly held a special session, in which it passed recovery programs worth nearly US$17 billion which are much more than other countries and has brought very positive results to the socio-economic development of Vietnam,” he said.

In addition, the meeting also discussed a range of measures which aim to promote parliamentary diplomacy and achieve the goals of combating transnational crimes, drug crimes, and enhancing self-reliance in cyber security as a contribution to strengthening regional peace, stability, and security environment.

Vietnam’s export to America growing thanks to CPTPP: seminar

Vietnam’s export to America has made impressive growth after the three-year implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), heard a seminar held by the Industry and Trade Magazine on October 27.

Figures show that Vietnam is the only CPTPP member that has seen its market share in Canada and Mexico increasing, according to Nguyen Thi Thu Trang, Director of the WTO and Integration Centre at the Vietnam Chamber of Commerce and Industry (VCCI).

Vietnam’s market share in Canada rose from 0.9% in 2017 to 1.2 % in 2019 – the first year of CPTPP implementation – and 1.6% last year. Meanwhile, that in Mexico expanded from 0.9% in 2018 to 1.7% in 2021.

The figures reflect Vietnam’s successes in utilizing tariff incentives under the deal to access America and increase its market share there, Trang noted.

Vo Hong Anh, Deputy Director of the Ministry of Industry and Trade (MoIT)’s European - American Market Department, said among the CPTPP member countries, four are from America - Canada, Mexico, Peru and Chile. Except from Chile with which Vietnam signed a bilateral free trade agreement (FTA) in 2014, this is the first time the Southeast Asian nation has reached an FTA with the remaining three.

Illustrative image. Source: VNA

Therefore, such tax incentives will bring about good opportunities for Vietnam to boost its export, Anh noted.

Vietnam’s export to Canada grew about 75% and to Mexico more than doubled in 2021 as compared with the period when the CPTPP had yet to take effect, she added.

Anh, however, pointed to obstacles to Vietnamese exporters in their access to America such as the long geographical distance that makes transportation consume much time and money.

Other roadblocks lie with market standards, especially in North America, and the language as most of the Latin American nations use Spanish in transactions, she continued.

The official affirmed that the MoIT has always paid attention to the implementation of the agreement to bring about the most pragmatic interests to businesses, reported VNA.

Last July, the ministry sent a delegation to the US, Canada and Mexico in an effort to promote trade with the countries, and the sides reached some consensus on orders on this occasion.

The ministry will continue to help businesses handle risks regarding trade barriers and remedies, Anh said, suggesting them establish showrooms and distribution centers in the region.

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