FDI is a significant driving force of Vietnam’s growth (Photo: VNA)

Vietnam: A Prime Destination for Foreign Investment

According to a recent article published by Global Finance Magazine on September 21, Vietnam has emerged as a front-runner among Southeast Asian countries in terms of attracting foreign direct investment (FDI). This achievement further solidifies Vietnam’s position as an increasingly appealing destination for international investors.

Vietnam boasts numerous advantages that contribute to its attractiveness as a business destination. With a population of 100 million, 40% of which are under the age of 25, the country possesses a favorable demographic profile. Furthermore, Vietnam enjoys tariff-free access to the Southeast Asia region, which is home to 800 million individuals, owing to its membership in the Association of Southeast Asian Nations (ASEAN).

According to Thierry Mermet, the CEO of Source Of Asia (SOA) and a consultant specializing in business opportunities in Vietnam and ASEAN, there are positive indications for the business environment in Vietnam in 2023. In the first quarter of the year, foreign direct investment capital has reached approximately US$10 billion, which represents a growth of 0.5% compared to the same period in the previous year. Mermet anticipates that this upward trend will persist in the coming months.

According to the Business Confidence Index report conducted by the European Chamber of Commerce in Vietnam (EuroCham), Vietnam is increasingly establishing itself as one of the top three investment destinations for European business leaders in the long term. The report highlights a 3% increase in the number of leaders who have selected Vietnam as one of their top three investment choices.

According to the article, a total of 90 countries and territories have invested in Vietnam during the first half of this year. The top five investors are all Asian countries. The Republic of Korea claims the first spot, with a total investment of $81 billion. Following closely behind are Singapore and Japan with investments of $72 billion and nearly $70 billion, respectively. Despite being ranked 7th in terms of investment capital, the United States remains Vietnam’s primary export partner.

Vietnam’s appeal as a destination for investment is further evidenced by VinFast, a domestic electric vehicle (EV) manufacturer. Recently, VinFast achieved the distinction of being the world’s third-largest automaker in terms of market capitalisation, trailing behind industry giants Tesla and Toyota. This information was reported by the Vietnam News Agency (VNA).

According to Barry Elliott, Vice President of Tomkins Ventures and an expert in supply chain management, this development not only demonstrates the bright future of the electric vehicle industry in Southeast Asia, but also showcases Vietnam’s growing manufacturing capabilities.

According to S&P Global, Vietnam’s strong economic growth is a key factor in attracting foreign investors to the country. Despite a slowdown to 3.7% in the first half of the year from 8% in 2022, the World Bank predicts a rebound in the second half.

The S&P Global has projected a rise in mergers and acquisitions within Vietnam’s banking industry in the coming two years. This trend is driven by the banking institutions’ pursuit of strengthening their capital.

Thailand’s Kasikornbank PCL is currently engaged in negotiations to acquire consumer finance provider Home Credit Vietnam in a transaction estimated at around US$1 billion. If finalized, this deal would rank as the second-largest in Vietnam for the year 2023, trailing only the acquisition of a 15% stake in Vietnam Prosperity Joint Stock Commercial Bank by Sumitomo Mitsui Banking Corp. in March.

According to Mukuru Kato, Managing Director and Head of Frontier Markets Research at EFG Hermes Research, it is anticipated that there will be a significant increase in deals between 2023 and 2024, particularly among state-owned commercial banks (SOCBs). This is due to the State Bank of Vietnam’s strong desire to see a Vietnamese bank ranked among the top 100 in Asia.

Ivan Tan, an analyst at S&P Global Ratings, has highlighted the potential benefits for foreign investors in obtaining a strategic stake in Vietnamese banks. This opportunity allows them to capitalize on the country’s growth and take advantage of its favorable demographics, specifically through retail lending and digital channels.

Vietnam’s Mainland Unlikely to Feel Effects of Typhoon KOINU

According to the National Centre for Hydro-Meteorological Forecasting (NCHMF), Typhoon KOINU, with winds gusting up to 166kph near its center, has altered its trajectory before advancing towards the East Sea. This update was reported on the afternoon of October 4th.

At 13:00hrs, Typhoon KOINU was located in the waters southeast of Taiwan, with maximum sustained winds ranging from 150 to 166kph. The typhoon was moving west at a speed of 15kph.

Typhoon KOINU is churning across the southern part of China but is unlikely to impact Vietnam.

In the next 24 and 48 hours, it is expected to travel west and north-west at a speed of 10 kilometers per hour and weaken before entering the East Sea.

According to the forecast, over the next 72 to 120 hours, KOINU is expected to gradually weaken while moving towards the west and southwest at a speed of 5 kilometers per hour.

According to VOV, the entry of KOINU into the regional waters will result in rough seas in the north-eastern part of the East Sea.

Although the typhoon KOINU is not expected to have a significant impact on Vietnam, relevant authorities have instructed vessels to stay informed about the latest developments and have emergency rescue forces ready if needed.

French Students Develop Understanding of Vietnamese Culture with Assistance of Program

The “Tremplin pour le Vietnam” (Springboard to Vietnam) project, a partnership between Paul-Valery Montpellier III University in France and the University of Languages and International Studies (ULIS) – Vietnam National University, Hanoi, serves as a vital link for French youth seeking to engage with Vietnamese culture and language.

The university education program in Vietnamese language and culture was established in 2019 and has since attracted considerable attention from French youth. The inaugural course saw enrollment from 20 students.

According to VNA, the program has successfully trained approximately 100 students under the guidance of historian Pierre Journoud, who is a professor at Paul-Valery Montpellier III University.

A workshop on Vietnam – France relations hosted by Paul-Valery Montpellier III University in collaboration with The “Tremplin pour le Vietnam” program (Photo: VNA)

According to Professor Journoud, the project is highly endorsed by the French university and the Vietnamese Embassy in France. Its primary goal is to raise awareness of Vietnam among young as well as older individuals, as this certificate is open to individuals aged 18 to 78.

The program primarily emphasizes education in Vietnamese history, culture, and language, providing learners with a comprehensive understanding of Vietnam. Furthermore, it encompasses subjects such as economics, business, and the environment, as shared by Journoud.

Students have the opportunity to attend seminars or symposiums as well as engage in extracurricular activities, in addition to their in-class Vietnamese language and culture lessons. These activities aim to provide a deeper understanding of the Vietnamese community’s presence in France.

The project aims to strengthen the already strong partnership between France and Vietnam, with the goal of further enhancing cooperation between the two countries. This initiative is expected to have a positive impact on the relationship and lead to further advancements in various sectors.

Holtzer Gérard, one of the most senior students in the program, expressed a particular interest in the program.

“I have enrolled in this program with the intention of not only acquiring proficiency in the Vietnamese language but also cultivating a comprehensive understanding of its rich historical and sociological aspects,” he expressed.

According to Dam Minh Thuy, the head of the Faculty of French Language and Culture at ULIS, this program aims to provide young French individuals with a unique opportunity to deepen their understanding of Vietnamese culture. Additionally, it serves as a valuable platform for Vietnamese French individuals to establish meaningful connections with their ancestral homeland.

Vietnam and Myanmar Aim to Enhance Trade and Investment Relations

A trade fair promoting Myanmar-Vietnam trade relations is set to occur in Yangon, Myanmar on November 1st. This event will feature 22 exhibitor booths showcasing a diverse selection of high-quality Vietnamese products.

The Vietnam Trade Office in Myanmar and the Myanmar Entrepreneurs’ Association are joining forces to host a series of events with the goal of enhancing trade and investment collaboration between Vietnam and Myanmar.

According to the General Department of Vietnam Customs, the bilateral trade between Vietnam and Myanmar amounted to $489 million between January and August 2023. This figure represents a 17% decrease compared to the corresponding period in the previous year.

According to the latest data, Vietnam’s exports to the market amounted to over US$311 million, representing a decrease of 15% compared to the previous year. Similarly, its imports from the market were valued at US$178 million, reflecting a decline of 20% year on year.

According to VOV, the decline in Vietnamese exports to Myanmar can primarily be attributed to the recent surge in import restrictions imposed by the Myanmar government.

Photo: VOV

In addition, it is important to note that a significant number of goods destined for Myanmar are subject to licensing requirements, with the exception of certain agricultural machinery and equipment. The process of obtaining a license for importing goods by sea typically takes approximately three and a half months, while the timeframe for imports by road is generally between four and six days.

The Vietnam Trade Office in Myanmar is committed to maintaining strong partnerships with various associations, distributors, contractors, supermarkets, and other enterprises in Myanmar. We are dedicated to fostering and strengthening business connections between the two countries.

Our organization is committed to promoting bilateral trade between Vietnam and Myanmar. We facilitate trade exchanges, support Vietnamese business delegations in exploring trade and investment avenues in Myanmar, and host trade fairs to showcase opportunities in the region.

Diplomat Urges International Collaboration to Advance Gender Equality in Vietnam

Minister Counsellor Le Thi Minh Thoa, Deputy Permanent Representative of Vietnam to the United Nations (UN), emphasized the critical need for international collaboration to assist nations in fulfilling their international obligations to enable the complete, equitable, and substantive involvement of women and girls across all facets of society. Such efforts not only contribute to the prevention of violence and discrimination but also foster inclusive social environments.

During the meeting of the UN Committee on Social, Humanitarian, and Cultural Issues of the 78th-tenure UN General Assembly on October 3, Minister Counsellor Thoa emphasized…

According to the diplomat, women across various regions are confronted with a range of challenges including health issues, financial setbacks, limited access to education and employment, as well as being exposed to gender-based violence. In addition, the diplomat emphasized that while digital advancements and global economic shifts present potential solutions, they also present risks by potentially amplifying women’s vulnerabilities.

Vietnam highlights need for int’l cooperation in ensuring gender equality: Minister Counsellor Le Thi Minh Thoa, Deputy Permanent Representative of Vietnam to the United Nations (UN) addresses the event. (Photo: MOFA)

The representative from Vietnam emphasized the importance of prioritizing the enhancement of digital skills among female workers and empowering women in driving the growth of the digital economy during the era of digital transformation. Furthermore, it is imperative to facilitate an enabling environment for women and girls to pursue their careers in science and technology, while also ensuring the protection of women’s rights within the digital sphere.

During the event, Minister Counsellor Thoa emphasized the notable progress Vietnam has made in promoting women’s rights and gender equality through effective policy making, legislation, and development strategies.

According to WVR, Vietnam has a considerable representation of women in positions of power, particularly in the National Assembly. The country has demonstrated commendable progress in promoting women’s employment opportunities and achieving gender equality in the digital age.

The diplomat affirmed that Vietnam will continue to work with the international community to promote gender equality and the advancement of women.

During the meeting, it was widely acknowledged by participating countries that there is a concerning regression in the promotion of women’s role and participation across various sectors of our society. It was observed that women continue to face significant consequences as a result of the complex and interconnected crises that persist today.