Vietnam News Roundup (Mar 24): Vietnam Defies Global Trends, Remains Popular Among Foreign Investors

Spokeswoman of the Vietnam Ministry of Foreign Affairs Pham Thu Hang.

Vietnam resolutely rejects all claims contrary to international law in East Sea

As repeatedly affirmed, Vietnam has full legal basis and historical evidence to affirm its sovereignty over the Hoang Sa and Truong Sa archipelagos in accordance with international law, as well as its sovereignty, sovereign rights and jurisdiction over its territorial waters established in line with the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

The statement was made by spokeswoman of the Vietnam Ministry of Foreign Affairs Pham Thu Hang on March 23 in reply to reporters’ query regarding Vietnam’s stance on the statement of Chinese Foreign Ministry spokesperson Wang Wenbin on March 14 and the Philippine Department of Foreign Affairs’ statement on March 17 on the East Sea issue, cited VOV.

Regarding claims in the East Sea that are contrary to international law, violate Vietnam’s sovereignty over the Hoang Sa and Truong Sa archipelagos, as well as violating Vietnam’s sovereignty, sovereign rights and jurisdiction over the country’s territorial waters established in accordance with the 1982 UNCLOS, Vietnam’s stance is always clear, consistent and has been repeatedly asserted, accordingly, Vietnam resolutely oppose and reject all of these claims, Hang said.

Vietnam wants relevant countries to truly respect and comply with the provisions of UNCLOS 1982 as a contribution to maintaining peace, stability and seeking long-term fundamental solutions in the East Sea, she added.

Vietnam remains attractive destination for foreign investors

Vietnam’s economic strength is reflected in controlled macroeconomic indicators and the country has increasingly affirmed and strengthened its important role in the supply chain diversification strategy of multinational corporations. 2024 will be the year for foreign investors to seize opportunities and implement high-tech foreign direct investment (FDI) projects in Vietnam.

Nguyen Bich Lam, former General Director of the General Statistics Office has granted an interview to Vietnam News Agency on the picture of FDI attraction and solutions to improve capacity and motivation to promote economic growth in the coming time.

The expert said in the first two months of the year, registered FDI reached 4.29 billion USD, up 38.6% compared to the same period in 2023. The amount of FDI disbursement reached 2.8 billion USD, an increase of 9.8% year on year.

Lam acknowledged that in the context of uncertainties and fierce strategic competition, the fragmented world economy has reduced and reshaped international investment flows, however, the country is still an attractive market for foreign investors, because its economy has recovered and developed in a relatively stable fashion.

PwC’s “World in 2050” study has stated that Vietnam will achieve the second highest annual GDP growth rate worldwide and GDP will grow by an average of 5.3% per year over the 36-year period from 2014-2050. This important macroeconomic indicator is a testament to the success of the Government’s management in recovering and maintaining the stable development of the economy.

A production line at the Republic of Korea’s Bluecom Vina Co., Ltd, in the Trang Due Industrial Park in Hai Phong city. Photo: VNA

He said foreign investors praised Vietnam’s integration with the world’s green development trend with a strong commitment to implement the provisions of COP 26. Along with that, the government has issued policies to encourage foreign investors to invest in projects using advanced technology, clean, environmentally friendly technology, with modern management methods that actively contribute to the production chain and global supply.

Lam cited that Vietnam’s economy has deeply and widely integrated into the region and the world. Vietnam has also signed and implemented many free trade agreements with more than 60 partners covering all continents. In terms of market access liberalization, according to the World Trade Organization (WTO), Vietnam is on par with Singapore, the most developed country in Southeast Asia.

Besides, Vietnam has relaxed regulations on foreign ownership in listed companies, easing the burden on investors. Since 2015, the government has allowed the relaxation of foreign ownership in listed companies by up to 100% in some cases. It also allows unlimited foreign investment in government bonds, he added.

In addition, Vietnam has a particularly favorable geographical position, a gateway for international trade in goods by sea. Increasingly synchronous infrastructure and technology are also advantages that make Vietnam attractive to foreign investors, according to VNA.

With the foreign policy of independence, self-reliance, diversification and multilateralization, Vietnam is working to be a reliable partner and responsible member of the international community. With a flexible foreign policy, Vietnam is a comprehensive strategic partner or strategic partner of all five permanent members of the UN Security Council. On March 7, 2024, Australia became Vietnam’s seventh comprehensive strategic partner. Vietnam’s position has been elevated, becoming a regional political-economic-security center. The country is now a partner of the international economic and political communities and a connected economy in a fragmented world – an advantage that only a very few countries have.

The upgrading of the comprehensive strategic partnership with the US and Japan, with a focus on cooperation in trade, investment, science and technology, is an important premise for economic development. Especially, foreign investment in high technology and export represents an opportunity to create a breakthrough in attracting FDI inflows in 2022, he mentioned.

With the increasingly strengthened role of the economy in the supply chain diversification strategy of multinational corporations, Vietnam’s economic growth is expected to recover more positively this year. A stable socio-political foundation is a core and important factor in Vietnam’s prospect of creating a breakthrough in FDI attraction in 2024 and beyond, he expressed.

Recently, global credit rating agency Fitch Ratings has upgraded Vietnam’s sovereign credit rating to BB+ with a stable outlook. With the achievements, advantages and position of the economy, 2024 is expected to be a breakthrough year in FDI attraction of the country.

SK Group keen to develop solar and wind power in Vietnam

SK ecoplant company (belonging to SK Group), one of the Republic of Korea (RoK)’s leading investors in the field of energy development, signed a memorandum of understanding (MoU) on March 22 in Seoul on co-operation and development for renewable energy business in the nation with BCG Energy- a member of Bamboo Capital.

The signing ceremony was attended by officials of the two companies, Kim Jeong-hoon, CEO of SK ecoplant Factory Solution Business Department, and Pham Minh Tuan, CEO of BCG Energy.

Under the terms of the MoU, the two companies will begin jointly developing a 700MW renewable energy project, including a 300MW onshore wind power, a 300MW rooftop solar power, and a 100MW onshore solar power.

BCG Energy is a pillar member company of Bamboo Capital Group and is in charge of the renewable energy segment. BCG Energy has built and put into operation large-scale solar power plants such as BCG Long An 1, BCG Long An 2, BCG Vinh Long, BCG Phu My, and BCG Gia Lai. In addition, the company also develops rooftop solar power systems in many provinces and cities across the country.

BCG Energy’s total operational renewable energy capacity as of December, 2023, reached nearly 700MW. The company is also deploying an additional 229MW and plans to develop an additional 670MW ahead in the near future, VOV reported.

SK ecoplant is therefore poised to seek renewable energy projects which boast great potential, including wind power production in Gia Lai, a highland region in Central Vietnam that boasts abundant wind resources.

Jung-hoon said that with diverse experience, as well as specialized solution capabilities in engineering and renewable energy, SK ecoplant will be able to contribute to making full use of Vietnam’s abundant renewable energy resources.

The company will also strive to contribute to the global carbon reduction plan whilst taking the lead in solving climate issues based on the renewable energy value chain.

In August, 2023, SK ecoplant was appointed as the key company in the Concho solar power project in Texas.

Cultural exchange strengthens Vietnam-Japan friendship

The Japan-Vietnam Support Association on March 22 organized a musical programme “Que Huong” (Homeland) Program 2024 in Higashi Osaka city, Kansai region, attracting about 1,000 Vietnamese and Japanese people.

Singers from Vietnam and Vietnamese people living in Kansai performed at the event. Notably, Vietnamese singers sang a popular Vietnamese song “Diem xua” by famous composer Trinh Cong Son in Japanese and a well-known Japanese song titled “Sukiyaki”.

Speaking at the event, Mayor of Higashi Osaka city Noda Yoshikazu said that cultural exchange activities between Vietnam and Japan like the music programme can help tighten the friendship between the two countries. He hoped that more Vietnamese people would come to live and work in the city.

Consul General of Vietnam in Osaka Nguyen Minh Son said that the event is of great significance to the Vietnamese community in the Kansai region because few major cultural events have been held for the Vietnamese community in the region.

Son expressed his thanks to the event organizers and sponsors for their efforts to bring a spiritual gift to Vietnamese people living far from home and create an opportunity to unite the community.

The second edition of the event is slated for January next year, making it an annual event to tighten the friendship between Vietnamese and Japanese people in the Kansai region.

Vietnam sends condolences to Russia over shopping mall attack, condemns terrorism

Acting State President Vo Thi Anh Xuan on March 23 sent a message of condolences to Russian President Vladimir Putin over a terrorist attack on Crocus City Hall in Moscow on March 22.

On the same day, Minister of Foreign Affairs Bui Thanh Son also sent his condolences to his Russian counterpart Sergei Lavrov, VNS reported.

Spokeswoman for the foreign ministry Pham Thu Hang the same day also issued a statement strongly condemning terrorism in all forms and firmly believes that the perpetrators will be strictly punished, in response to the terrorist attack in Moscow.

“We are deeply appalled upon learning about this brutal terrorist attack and would like to extend our deepest condolences and sympathies to the Russian Government, people and families of the victims”, she said.

According to the Vietnamese Embassy in Russia, no Vietnamese citizen has been reported as victim in the incident so far.

Following the ministry’s directions, the Vietnamese Embassy in Russia is working closely with local authorities to keep a close watch on the situation and ready to take necessary protective measures in case any Vietnamese citizens are affected.

The embassy urged Vietnamese citizens in Russia to avoid crowded areas, stay informed about the situation and immediately contact the embassy via the citizen protection hotline +79166821617 or the citizen protection call center in Vietnam +84981848484 in case of emergency.

By Saturday afternoon, the death toll in the shooting rampage has reached 93 people, while 11 suspects have been detained, according to Kremlin.