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Việt Nam’s GDP growth among the world’s highest




Customers in mask shopping at a supermarket in Hà Nội. — VNA/ Photo Trần Việt

HÀ NỘI — Việt Nam this year has achieved a gross domestic product (GDP) growth of 2.91 per cent, an impressive figure despite the impact of the COVID-19 pandemic, according to the General Statistics Office (GSO).

“This year’s GDP growth rate was the lowest during the 2011-20 period due to the COVID-19 pandemic. However, Việt Nam’s growth remains among the world’s highest,” GSO director general Nguyễn Thị Hương told the press on Sunday.

Việt Nam’s growth rate being among the highest in the world is testament to the determination of the Government as well as efforts by people and the business community to effectively realise the dual goals of pandemic prevention and economic recovery, Hương said.

Specifically, it expanded by 3.68 per cent in the first quarter, 0.39 per cent in the second quarter, 2.69 per cent in the third quarter and 4.48 per cent in the fourth quarter.

She said many factors have created a driving force for domestic economic development in the last quarter, including strict control of COVID-19 and the EU-Việt Nam Free Trade Agreement (EVFTA) effective from August 1, contributing to GDP growth in the fourth quarter.

According to Hương, the agro-forestry-fisheries sector has grown by 2.68 per cent, contributing 13.5 per cent to national GDP.

This figure has surged by 3.98 per cent in the industry and construction sector, contributing 53 per cent to the domestic economy.

The manufacturing and processing sector has played a key role in leading growth of the economy with a 5.82 per cent rise.

The electricity production and distribution sector has had growth of 3.92 per cent, while water supply and waste treatment rose 5.51 per cent. But the mining sector fell 5.62 per cent.

The service sector has posted the lowest growth in nine years with 2.34 per cent due to the pandemic. It saw the contributions of wholesale and retail sales (up 5.53 per cent), finance-banking-insurance (up 6.87 per cent), transport and logistics (down 1.88 per cent) and accommodation and restaurants (down 14.68 per cent).

Regarding economic structure, agro-forestry-fisheries have accounted for 14.85 per cent, industry and construction 33.72 per cent, and services 41.63 per cent.

The Government has set a target of securing a GDP growth rate of approximately 6 per cent in 2021. It is a challenging task for Việt Nam, according to the GSO, as the Vietnamese economy’s openness is comparatively high, making it vulnerable to any market fluctuations, alongside drastic changes in the regional and global geopolitical landscape.

In addition, the COVID-19 pandemic is not over, which is expected to exert further negative impact on all economies, including Việt Nam.

Success in inflation control

Also at the press conference, Hương said that 2020 is considered a year of success in inflation control. The 2020 consumer price index (CPI) has risen by 3.23 per cent from 2019.

Of which, the CPI in December went up 0.1 per cent month-on-month and 0.19 per cent year-on-year.

Explaining the price hike this year, head of the GSO’s Price Statistics Department Đỗ Thị Ngọc said due to high shopping demand during the Lunar New Year (Tết) Festival from January-February, food prices increased by 4.51 per cent annually, bringing up the CPI by 0.17 per cent. Pork prices also moved up the CPI by 1.94 per cent due to unstable supply.

Rainfall and floods in the central region during October-November also hiked prices of fresh, dried and processed vegetables.

Other increases were also seen in the prices of medical supplies and education services.

Meanwhile, falling prices in oil and gas, flight tickets and electricity due to the COVID-19 pandemic curbed the CPI rise.

According to the GSO, core inflation (CPI excluding food items, energy products and commodities under the State management like medical and educational services) this year has climbed by 2.31 per cent year on year.

The core inflation dropped from 3.25 per cent in January to 0.99 per cent in December, which proved the efficiency of the State Bank’s monetary policy this year. — 



US-based SSA Marine partners with Gemadept to build $6.7-billion logistics centre

The US-based SSA Marine and Vietnam’s Gemadept are collaborating to build the Cai Mep Ha Logistics Center in Vietnam, which is expected to be worth $6.7 billion.



According to local media on September 12, the agreement focuses on the southern Vietnamese port region, particularly the construction of the Cai Mep Ha logistics center.

“The establishment of the Cai Mep Ha logistics center represents not only a leap for Vietnam but for global logistics,” an SSA Marine source stated. “The vision is grand, and the potential is limitless.”

When completed, the complex would span over 2,200 hectares and serve as Vietnam’s top logistics hub. The venture, located in the gorgeous surroundings of Phuoc Hoa district in Phu My town, has a dual-focused blueprint: a cutting-edge logistics center paired with the strategically positioned Cai Mep Ha downstream port.

SSA Marine, the largest US-owned and privately held container terminal operator and cargo handling company in the world, handles 35 million container TEUs per year at its marine and rail terminals and also operates cruise, auto- and Ro/Ro logistics, and IT Solutions.

With 73 years of existence, the firm operates over 250 ports throughout the US, Canada, Panama, Mexico, Chile, Costa Rica, Colombia, Asia, and New Zealand.

This modified plan, according to the province’s Department of Transport and consultants, increases the total area from 1,763ha to nearly 2,204ha. The core project space is approximately 1,687ha, including both the logistics center and the downstream port of Cai Mep Ha.

Moreover, the water surface area has been reduced to about 202ha. In addition, land initially reserved for clean energy storage will be repurposed for logistics and port functions.

The strategic planning adjustment aims to extend the port to handle 250,000-ton ships. Logistics and port operations will be redefined on the 198 ha of land, together with possible water surface areas.

Gemadept and SSA Marine are the leading investors, although seven others are interested. Geleximco, ITC, and Besix-Boskalis-Hateco, a Vietnam-EU collaboration, are said to be involved.

Upon completion, this hub will optimize import and export transportation costs across road, sea, rail, and air transit nodes. It aims to receive, store, process raw materials, package, label, and distribute commodities for adjacent industrial zones, notably the CM-TV port cluster, Vung Tau Port, and the southeast coastal port region.

Source: VIR


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Vietnam’s Hai Phong City attracts extra $1.4 billion in foreign investment



Several enterprises from South Korea and Japan were granted investment certificates on Friday to develop FDI projects at industrial parks in the northern port city of Hai Phong, with a total pledged capital reaching nearly US$1.4 billion.

The investment certificate handover ceremony was attended by Le Tien Chau, secretary of the municipal Party Committee.

The Hai Phong Economic Zone Management Board presented an investment certificate to Ecovane, a subsidiary of the South Korean chemicals maker SKC, to develop a hi-tech biodegradable material factory project worth $500 million.

Other key projects receiving the certificates at the event included a BW ready-built factory worth $60 million and a $40-million auto parts manufacturing plant by China’s CCTY Bearing Company.

Besides, Japan’s Kyocera Document Solutions Inc was approved to pour an additional $237.5 million into its machine and equipment manufacturing plant project, raising the project’s total investment to $425 million.

The municipal Economic Zone Management Board also finished the selection of investors for two social housing projects worth a combined $400 million, whose work is expected to begin this year.

Once completed, the social housing projects will offer more than 8,000 apartments to around 22,000 people, contributing to the city’s efforts to ensure social security and stable accommodations for low-income employees.

Hai Phong City in northern Vietnam attracted an additional US$1.4 billion of foreign capital in September 2023. Photo: Tien Thang / Tuoi Tre
Hai Phong City in northern Vietnam attracted an additional US$1.4 billion of foreign capital in September 2023. Photo: Tien Thang / Tuoi Tre

In the year to September 20, industrial parks and economic zones in Hai Phong had attracted roughly $3.1 billion of investment, reaching 120 percent of its 2023 target, said Le Trung Kien, head of the city’s Economic Zone Management Board.

Up to now, over 1,000 FDI projects worth a combined $28 billion have been developed in this northern port city, which granted investment certificates to 45 FDI projects with a total pledged capital of nearly $2.1 billion and 11 DDI (domestic direct investment) projects with a total cost of some $600 million last month.

The city’s Economic Zone Management Board previously had a working session with South Korea’s Chungbuk Free Economic Zone, which sought to cooperate with businesses active in Hai Phong as well as support them in technology transfers and human resources training.

The investment in semiconductor technology in Hai Phong is expected to advance further as SKC, the chemical unit of South Korea’s SK Group, inked a memorandum of understanding with Hai Phong to study the investment environment for advanced semiconductor materials, secondary batteries, and some other eco-friendly materials.

SK Group is the second-largest conglomerate in South Korea, just after Samsung, focusing on four main areas including energy and chemicals; telecommunications; semiconductors and other advanced materials; pharmaceuticals and logistics services, according to the Hai Phong Economic Zone Management Board.

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VinFast’s 5th electric vehicle costs under $30,000



VinFast’s 5th electric vehicle costs under $30,000

VinFast VF 6 is introduced in an even in Ho Chi Minh City on Sep. 29, 2023. Photo by VnExpress/Thanh Nhan

Vietnamese automaker VinFast has launched its fifth electric car, the VF 6 crossover in the small-car segment, with base prices starting at VND675 million ($27,800).

The Plus version, which offers a range of 399 kilometers compared to the base’s 381 kilometers, costs VND765 million.

The battery costs VND90 million for each version.

Any customer who does not buy the battery can lease it for VND1.8 million a month, with a maximum monthly distance of 1,500 kilometers.

Sales begin October 20 and deliveries will be scheduled for the end of this year.

The VF 6 is in the same price range as the Hyundai Creta (starting at VND640 million) and the Kia Seltos (from VND599 million).

The B-segment (European classification’s smallest-car category) is rife with competition in Vietnam thanks to offerings by Japanese, South Korean, German and Chinese brands all seeking a bigger share.


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