Vietnam’s Halal Industry to Strengthen Connections with Muslim Nations

Vietnamese people are bracing themselves for more strong heat waves this year as El Nino is returning.

El Nino to return and impact Vietnam this year

El Niño is set to return in late May or early June, with the weather pattern likely to persist until early 2024, according to the National Centre for Hydro-Meteorological Forecasting in Vietnam. Scientists anticipate that the El Niño phenomenon will arrive in the next few months and could remain in place for the next four years. This prediction from the Vietnamese meteorological center follows observations of sea surface temperatures in the equatorial Pacific Ocean, which have been gradually increasing since the beginning of the year. El Niño is an irregularly occurring climate event, characterized by a warming of the ocean’s surface temperatures in the equatorial region, and is known to cause extreme weather conditions worldwide.

El Niño is the warm phase of the El Niño–Southern Oscillation (ENSO), a recurring climate pattern that occurs across the tropical Pacific Ocean. It is largely associated with a band of warm ocean water that develops in the central and east-central equatorial Pacific, including the area near the equator and extending eastward to the International Date Line. El Niño is sometimes accompanied by a high-pressure system in the western Pacific, which causes the surface air pressure over Indonesia to be lower than normal. During this phase, the air pressure over the central and eastern Pacific is usually higher than normal.

It is accompanied by high air pressure in the western Pacific and low air pressure in the eastern Pacific. Its phases typically last for around four years.

Reality shows that El Niño has a tremendous impact on the global climate, disrupting normal weather patterns and leading to intense storms in some places and droughts in others. The consequences of this phenomenon can be devastating, affecting everything from agriculture to human health.

During the El Nino cycle, droughts and prolonged heat waves are frequently experienced in western Pacific countries such as Vietnam, the Philippines, Malaysia, Indonesia, Thailand, Laos, and Australia. Being a coastal country, Vietnam is particularly susceptible to changes occurring in atmospheric and oceanic conditions, including the El Nino phenomenon.

Studies conducted on the effects of global warming on rainfall and temperature worldwide have revealed a concerning trend: El Niño is leading to increased wet and dry spells, prolonged heat waves, and warmer winters – and Vietnam is no exception, according to VOV. These findings have significant implications for the country, as an increase in extreme weather events could lead to a devastating impact on food security, health, and livelihoods. It is essential that the government take action to mitigate the effects of climate change and implement strategies to adapt to the changing climate.

Strong heat waves battered the country between 1997 and 1998, as well as between 2014 and 2015 when El Niño returned, with daytime temperatures soaring to a record-breaking 39.6℃ in the northern and southern regions, and even reaching 41.5℃ in the north-central region.

After three years of the La Niña weather phenomenon, which is the other phase of El Niño-Southern Oscillation (ENSO), meteorologists have forecasted that El Niño will likely return in late May or early June, with a probability of up to 80%. This phenomenon could last until early 2024, making this year hotter than 2022 and potentially the fifth or sixth hottest year on record.

The beginning of May brought with it intense heatwaves throughout the nation, with temperatures reaching a sweltering 40℃ in many areas. Most notably, Nghe An province experienced temperatures as high as 44.2℃, setting an all-time record for the country.

Nguyen Van Huong, an official from the National Centre for Hydro-Meteorological Forecasting, has warned that heat waves this year are likely to arrive earlier and be far more intense than in previous years.

The heat is expected to become even more intense from May to August, mainly in the Northern and Central regions. According to the meteorologist, there is a chance that the highest temperature values recorded in previous years will be surpassed this year. Moreover, it is likely that the number of hot days in 2023 may be higher than in 2022.

With temperatures reaching as high as 40°C, it is important to stay hydrated and to take precautionary measures to avoid being affected by the heat.

The hot weather in the northern and central regions of is forecasted to persist from May to August, with the hottest months falling in June and July. It is expected that heatwaves will last between two and four days, or even longer, with temperatures rising as high as 40°C. Consequently, it is essential to stay hydrated and take precautionary action to protect yourself from the extreme heat.

Halal industry to boost Vietnam’s links with Muslim countries: official

With sound partnerships with Muslim-majority countries, the Halal industry has the potential to become an important field of cooperation, helping to further strengthen Vietnam’s substantive ties with these partners and contribute to mutual development and prosperity, according to former Deputy Foreign Minister Pham Quang Hieu.

Hieu, who is currently the Vietnamese Ambassador to Japan, recently shared his thoughts in a press interview about the plan to promote international collaboration for the growth of Vietnam’s Halal industry by 2030. He emphasized the importance of such an initiative and expressed his confidence that it would bring immense benefits to the country.

The Ministry of Foreign Affairs coordinated with other ministries and sectors, consulted domestic and international experts, consulted Vietnam’s overseas representative agencies, consulted localities, and consulted businesses to develop a plan. This plan was then approved by the Prime Minister on February 14.

Hieu stated that this is the initial plan to provide national-level guidance for mobilizing international resources to construct and grow the Halal industry in an organized, professional, and comprehensive way.

It has also established a new approach to implementing economic diplomacy, tapping into the highly lucrative global Halal market, and providing a new impetus for sustainable economic development, especially when Vietnam’s traditional markets are facing challenges due to inflation and economic recession.

Diversifying export markets by exploring new ones is seen as the “golden key” to increasing exports and making a greater contribution to national economic growth.

The global Halal market’s value stands at 7 trillion USD last year and is expected to reach about 10 trillion USD by 2028. (Photo: congthuong.vn)

Besides, the plan implementation will help further intensify Vietnam’s relations with large Halal product consuming countries such as Indonesia, Malaysia, and Saudi Arabia, thereby contributing to enhancing the role and reputation of Vietnam and its enterprises in the global Halal market, the official noted.

He went on to say that Vietnam has significant potential to capitalize on the global Halal market, as it had some 1.94 billion people in 2022, or nearly one-fourth of the world population and still growing.

Its value stood at 7 trillion USD last year and is expected to reach approximately 10 trillion USD by 2028. Halal products are widely consumed all over the world, from Muslim to non-Muslim countries, as reported by VNA.

Spending on Halal products has been steadily increasing, due to their adherence to stringent standards for food safety, quality, and environmental protection. Interestingly, many of the major Halal product manufacturers are from non-Muslim countries.

A number of Halal product-consuming and exporting countries, such as the Republic of Korea, Saudi Arabia, Indonesia, and Malaysia, have expressed an interest in and a desire to enhance cooperation with Vietnam in the development of the Halal industry.

Vietnam presents many ideal conditions for growing the Halal industry, including its advantageous geographic placement, strengths in agriculture, food, tourism, and services, as well as its extensive economic integration into global markets through its involvement in several regional economic connections, including modern free trade agreements. The government has also provided significant support to businesses looking to explore and take advantage of the worldwide Halal market, Hieu noted.

The official added that by joining the global Halal market, Vietnamese enterprises will have a chance to not only develop tourism, but also bolster the overseas shipment of the products they are strong in, and attract foreign investment to the country. Additionally, they can improve their capacity, competitiveness, and human resources quality while further equipping themselves with production and transportation technologies that meet Halal standards.

Second shipment of VinFast VF8 vehicles reaches US port

The second shipment of VinFast’s 1,879 VF8 electric vehicles reached Benicia port in the US state of California on May 12 (local time), according to VinFast, the leading EV manufacturer in Vietnam.

Of the total, 1,098 EVs will be delivered to US customers, and the remaining 781 EVs will continue to be shipped to Canada in the following days.

All the VF8s delivered this time are said to have a higher driving range than the 999 VF8s in the first run, which were released in late 2022. The Eco and Plus models have a range of 264 miles and 243 miles per charge, respectively.

The Eco may have the longest driving range, but the Plus model offers the ultimate in luxury, with a panoramic glass roof, plush leather upholstery, and second-row captain’s chairs.

With regard to its after-sales program, VinFast promises 10-year/125,000-mile warranty coverage or 10-year/unlimited mileage for the vehicle, as well as mobile repair and 24/7 rescue service during the warranty period.

According to VinFast, all of their VF8s have successfully passed tests in accordance with the regulations of the National Highway Traffic Safety Administration (NHTSA) of the United States.

The firm has also completed the necessary procedures to bring its VF8s to the US market, and is poised to begin delivering them to customers as soon as June 2023.

VinFast, a member of the prestigious Vietnamese private business conglomerate Vingroup, was established in 2017 with the noble vision of driving the global revolution of smart electric vehicles, according to VOV. This initiative is a clear example of the commitment of Vingroup to spearhead the accelerating development of Vietnam’s automotive industry.

First VF8s leave Silver Queen afte reaching Benicia port, California.

The firm manufactures and exports a comprehensive range of e-SUVs, e-scooters, and e-buses to Vietnam, North America, and soon Europe. Its state-of-the-art automotive manufacturing complex in Hai Phong city is equipped with up to 90% automation and has an annual production capacity of up to 300,000 units in phase 1. This cutting-edge facility provides high-quality and efficient production of its vehicles, allowing the firm to stay ahead of the competition and provide superior customer service.

VinFast is dedicated to its mission of creating a sustainable future for all. By 2022, the company has become a fully electric vehicle (EV) manufacturer, providing four EV models – the VF e34, VF 8, VF 9, and VF 5 – to customers in Vietnam.

VinFast has recently achieved a significant milestone on its route to becoming a renowned global electric vehicle (EV) brand. Earlier this year, the first VF8s were exported to North America, marking a major step forward for the company.

The firm on May 12 entered into a business combination agreement with US firm Black Spade Acquisition Co (Black Spade). After the transaction, VinFast will have an equity value of over US$23 billion and be listed in the New York Stock Exchange (NYSE).

Black Spade, listed on the New York Stock Exchange as BSAQ, was established by Black Spade Capital. This global portfolio is comprised of a diverse range of cross-border investments, and Black Spade Capital is continually searching for new projects and opportunities to add to its portfolio.

The Travel: Vietnam among most attractive destinations in Asia

The Travel, a well-known Canadian travel website, has recently ranked Vietnam as the fifth most attractive destination in Asia. With its stunning landscapes, vibrant culture, and abundance of attractions, it’s easy to see why Vietnam has earned such a high ranking. From bustling cities to tranquil beaches and tropical islands, there’s something for everyone to enjoy in this beautiful country. Whether you’re looking for a relaxing holiday or an action-packed adventure, Vietnam has it all. So why not explore Vietnam for yourself and discover why it’s one of Asia’s most desirable destinations?

Vietnam is home to an incredible array of natural marvels. Among the most awe-inspiring of these are the majestic limestone islands in Ha Long Bay, the stunningly beautiful Phong Nha Cave in Phong Nha – Ke Bang National Park, and the sprawling rivers in the Mekong Delta.

Photo: VOV

Vietnam is an incredible country to explore – it boasts vast paddy fields, bustling floating markets and so much more! Visiting the paddy fields and floating markets is a must-do activity for anyone looking to experience the culture and scenery of Vietnam.

The Southeast Asian country is also home to a wealth of architectural masterpieces, boasting centuries of historical and cultural imprints. These awe-inspiring works of art are sure to leave a lasting impression on all visitors.

Other countries in Asia on the list are Japan, Indonesia, Thailand, Laos, the Republic of Korea, the Philippines, Singapore, and China. Each of these countries is home to diverse cultures, landscapes, and languages, making them all unique and interesting places to visit.

Vietnamese dong one of most stable currencies in Asia: Experts

Amid fluctuations in the global financial market, the exchange rate in Vietnam has remained stable during the first four months of 2020, making the Vietnamese dong one of the most reliable currencies in Asia, according to experts. This stability is remarkable considering the tumultuous economic climate, and it could be attributed to the government’s proactive measures to protect the financial sector from the global economic downturn.

The government has implemented a series of policies to ensure the stability of the Vietnamese dong, such as increasing foreign currency reserves, restricting speculative activities, and imposing strict regulations to prevent currency manipulation. Furthermore, the Central Bank of Vietnam has taken steps to reduce the volatility of the exchange rate by using a managed float system.

These efforts have been successful in maintaining the value of the Vietnamese dong, and it is expected to remain a reliable currency in Asia over the coming months. This will provide a great opportunity for businesses and investors to take advantage of the stable exchange rate and capitalize on the various investment opportunities in the region.

Market analysis reports released by Mirae Asset Securities Vietnam revealed that the USD/VND exchange rate declined by 0.2 percent in April, with the average exchange rate standing at VND23,500 per US dollar throughout the month. The rate has remained stable over the January to April period.

The United Overseas Bank (UOB) recently rated the Vietnamese dong as one of the most stable currencies in Asia, despite the Federal Reserve’s (Fed) expectations of an interest rate hike, the possibility of a global economic recession, and concerns over the stability of the US banking system. Despite these variables, the Vietnamese dong has managed to remain strong and secure.

Mirae Asset highlighted that the State Bank of Vietnam (SBV) had purchased a significant quantity of foreign currency during the first four months of the year, increasing the foreign exchange reserves to roughly US$90 billion. Such an acquisition is likely to bolster the country’s overall financial standing and help it to face potential economic difficulties.

The USD/VND rate has remained stable throughout the January-April period. Photo laodong.vn

Dao Xuan Tuan, head of the Foreign Exchange Management Department at the State Bank of Vietnam (SBV), stated that the foreign exchange market has made positive strides since the end of 2022 and is gradually becoming more stable.

The USD/VND exchange rate tends to decrease and stabilize again, he said, adding that the recovery of the Vietnamese currency against the US dollar since December 2022 was similar to that of many other currencies in the region, such as the Japanese yen, Chinese yuan, the South Korean won, and the Thai baht.

Tuan stated that the Surplus of foreign currency enabled the State Bank of Vietnam (SBV) to purchase additional foreign currencies for its foreign exchange reserves. This influx of foreign currency allowed the SBV to strengthen its reserve holdings, which in turn provided a stable foundation for the country’s economic development.

In the first four months of this year, the State Bank of Vietnam (SBV) purchased approximately $4.9 billion from credit institutions, an increase of around $1 billion compared to the sum recorded at the end of the first quarter of 2023.

Experts from VNDirect have forecasted that Vietnam’s foreign exchange reserves will recover to reach $102 billion by the end of 2020. According to a report from the Vietnam News Agency (VNS), this recovery in reserves is expected to bolster the nation’s economy and further strengthen its currency.

Meanwhile, Moody’s Investor Service has forecast that Vietnam’s foreign exchange reserves, excluding gold, will rebound to $95 billion by the end of the year, as the State Bank of Vietnam rebuilds its stockpile.

Nishad Majumdar, an analyst based in Singapore, has argued that the recent appreciation of the dong is indicative of an improved external position and, as a result, will give the central bank the space it needs to replenish its foreign exchange buffers which were depleted during the US dollar’s surge in value in the previous year.

Vietnam’s reserves stood at $88.3 billion in January, as reported by the International Monetary Fund (IMF). This figure is a testament to the country’s thriving economy, which is continuing to grow and develop.

Majumdar asserted that the revival of tourism and constant foreign direct investment (FDI) inflows will assist in bolstering the country’s reserves, even as exports experience a decline.

The dong has advanced 6% in the past six months, joining a rally in Asian peers, as the US dollar has weakened. This makes the dong the top performer among the region’s major currencies.

He recommended that Vietnam prioritize exchange rate stability as a means to stabilize inflation and create certainty for inbound investors.

A stronger dong reduces the local-currency value of the Government’s external debt, which still accounts for about a third of overall Government borrowing, he said.