Vietnam News Highlights for June 28, 2023

Vietnam's FDI disbursement reaches $10 billion in H1 2023

More than US$10 billion of foreign capital flows into Vietnam in January-June. Photo: Hai Nguyen/The Hanoi Times

Foreign direct investment (FDI) disbursement in Vietnam reached over US$10 billion in the first half of 2023, a slight increase of 0.5% year-on-year. However, the registered FDI capital fell 4.3% year on year to $13.43 billion as of June 20.

Meanwhile, Vietnam's investment outflow was channeled into 13 sectors, led by wholesale and retail trade. Total new and adjusted overseas investment capital amounted to more than $320.6 million, up 92.7% year-on-year.

Vietnam sees strongest surge in gold jewelry demand

Vietnam saw the world's strongest increase in demand for gold jewelry last year, up 51% year-on-year. A recent study by financial brokerage firm Forex Suggest showed that Vietnam was followed by the United Arab Emirates (UAE) and Australia, with increases of 38% and 30%, respectively.

As for overall gold demand growth, Vietnam ranked third in the world in 2022, with a 37% increase over 2021. Vietnam also ranked fifth in the world for gold bar and coin demand growth, with strong sales growth at the end of 2022 due to a robust economic recovery and increased consumer confidence.

Vietnam receives $22 billion climate finance 

Vietnam has received more than VND500 trillion (US$22 billion) in financing for green projects, according to a recent report compiled by 40 credit institutions. This accounts for more than 4% of the country's total debt and a growth rate of more than 20%, according to the State Bank of Vietnam.

However, credit institutions face difficulties in evaluating green projects, so Vietnam needs to develop a national green classification criterion that harmonizes various factors, including the selection of green investment projects and the mobilization of domestic and international resources. The criteria will be compatible with international standards, with each ministry developing its own standards.

HCM City wants more French investment to improve Sai Gon River banks

Ho Chi Minh City authorities on June 27 called on French investors to invest in the service sector to boost development on the banks of the Sai Gon River as part of the city's economic recovery and restructuring, infrastructure improvement and urban development.

France is one of Vietnam's most important European trading partners, with bilateral trade reaching US$5.3 billion in 2022. France has invested in 300 projects worth more than 310 million euros (US$339.5 million) in the southern city.

Vietnamese consortium bids for Long Thanh airport project

Design of the Long Thanh International Airport in Dong Nai Province. Photo: The Hanoi Times

Hoa Binh Construction Group and three other companies will bid for the Long Thanh International Airport project in the southern province of Dong Nai. The others are Coteccons, An Phong and Central.

The four companies hope to win Package 5.10 of Project Component 3, worth VND35.2 trillion (US$1.5 billion), to build the terminals. The airport is worth VND100 trillion (US$4.25 billion) and is expected to be operational in 2025.

Vietnamese exporters participate in Guangdong Provincial Fair

About 80 Vietnamese enterprises participate in the three-day 18th China International Small and Medium Enterprises Fair (CISMEF) in China's Guangdong Province. The Vietnamese firms, including Red Dragon, Vinamilk, and Westfood Exporting and Processing, will promote their export products and seek new partners.

The fair, ending June 29, features 1,000 companies from 20 countries and territories. China is Vietnam’s largest trade partner, with bilateral trade valued at US$62.2 billion in January-May. Trade between Vietnamese localities and Guangdong accounted for a fifth of the figure.

Remains of US soldier repatriated

A ceremony to repatriate the remains of a US serviceman missing in Vietnam was held in Danang on June 27. The ceremony marked the 161st repatriation.

The Vietnamese and US governments have conducted joint humanitarian efforts to recover the remains of US service members since the late 1980s. The joint agencies have recovered 733 US service members missing in action.

Smart device expo promotes Vietnam-China cooperation link

More than 550 Vietnamese and Chinese manufacturers will join the 2nd International Electronics and Smart Appliances Expo 2023 (IEAE 2023) in Ho Chi Minh City on July 19-21.

The products on display at the exhibition include electronic technology and accessories, smart home appliances, electrical and electronic devices, sound equipment and components, LED technology, and lighting systems.