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VOI drives fivefold trade growth between Vietnam and Oman

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Bilateral trade between Vietnam and Oman reached $250 million last year, marking a fivefold increase over the past 15 years. This remarkable growth underscores the Vietnam-Oman Investment (VOI) Fund’s expanding role as a strategic investment partner and key economic bridge between the two nations.

At the eighth Indian Ocean Conference held in Muscat, Oman, on February 16-17, Deputy Foreign Minister Nguyen Minh Vu met with representatives of the Oman Investment Authority (OIA). He commended strengthening economic ties between Vietnam and Oman, emphasising the significant trade growth and VOI’s success over its 17 years of operation.

During the discussion, both parties reaffirmed their commitment to furthering bilateral trade collaboration, particularly in agriculture, food security, technology, and maritime transport. Additionally, OIA and State Capital Investment Corporation (SCIC) of Vietnam, a co-founder of VOI, agreed to enhance the fund’s operational efficiency and attract additional investment from other Gulf nations.

VOI drives fivefold trade growth between Vietnam and Oman
SCIC delegation meets with Oman Investment Authority (OIA)

Founded in 2008, VOI has focused on strategic investments in sectors critical to Vietnam’s sustainable development, including infrastructure, energy, industry, finance, education, healthcare, and real estate. From an initial committed capital of $100 million, the fund has disbursed over $384 million, positioning itself as a leading source of Gulf-region investment in Vietnam.

To date, VOI has undertaken more than 20 investments in key sectors, fostering Vietnam’s long-term economic growth. Prominent enterprises such as AIKYA Pharmaceutical Group, Van Phu Invest (VPI), Van Lang University, and F88 have flourished under VOI’s strategic investment, reinforcing the fund’s impact on Vietnam’s business landscape.

Strategic investments driving sustainable growth

Nguyen Xuan Giao, CEO of VOI, highlighted CME Solar, a rooftop renewable energy company, as one of the fund’s key investments. Both VOI and its investees share a commitment to achieving net-zero emissions by 2050. Previously, VOI also acquired a nearly 10 per cent stake in CII, a leading publicly listed company specialising in urban infrastructure development, including projects such as Rach Chiec Bridge and Hanoi Highway.

“Our investments have helped reshape the national economy and improve the quality of life for local communities,” said Giao.

According to Giao, VOI remains dedicated to channeling Gulf-region capital into Vietnam through strategic investments that drive sustainable growth and create long-term value for stakeholders. The fund upholds three core values – sustainability, cooperation, and integrity – to maximise investment efficiency and impact across its initiatives.

VOI drives fivefold trade growth between Vietnam and Oman
VOI invests in key sectors such as infrastructure, energy, education, and healthcare to drive sustainable economic growth

Strengthening bilateral economic ties

VOI has played a crucial role in reinforcing economic ties between Vietnam and Oman. According to Vietnam’s Ministry of Foreign Affairs, trade turnover between the two nations reached approximately $250 million last year, doubling pre-pandemic levels and growing nearly fivefold since the fund’s inception.

Beyond serving as an economic conduit, VOI represents the deep and enduring friendship between Vietnam and Oman. In late 2023, the fund was recognised by Prime Minister Pham Minh Chinh as a model for investment cooperation between Vietnam and the Gulf region, encouraging VOI to expand its operations further across key sectors.

Unlocking future collaboration

Looking ahead, Giao highlighted Vietnam’s strong investment potential, particularly as the government accelerates public investment and modern infrastructure development.

“VOI is committed not only to making strategic and effective investments but also to serving as a vital bridge between Vietnam and the Gulf – one of the world’s most dynamic economic regions, known for its abundant oil reserves, major financial centres, and pioneering advancements in digital transformation,” Giao stated.

VOI drives fivefold trade growth between Vietnam and Oman
VOI’s success serves as a foundation for unlocking further collaboration opportunities between Vietnam and Gulf nations in the future

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Industrial production on the mend: Deputy Minister

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Vietnam’s industrial production has continued its rosy signs since late 2023, promising a bright prospect for the country in the time ahead, Deputy Minister of Industry and Trade Phan Thi Thang said at the Government’s regular press conference in Hanoi on August 5.

According to the official, Vietnam’s Purchasing Managers’ Index (PMI) in July 2024 reached 54.7 points, the highest since November 2018, with output increasing sharply thanks to increasing new orders for four consecutive months.

The index industrial production (IIP) in July grew by 0.7% over the previous month and 11.2% year-on-year, Thang said, noting the index saw increases in 60 provinces and centrally-run cities in the first seven months of this year.

She attributed the result to improvements in the production capacity of domestic businesses that have also shown their readiness to optimise opportunities to access new markets in the time to come.

Additionally, the deputy minister said, support policies and the drastic instructions of the Government and the Prime Minister in public investment disbursement and the implementation of key industrial projects have helped consolidate the confidence of both domestic and foreign firms.

The official also pointed to a range of challenges such as intrinsic weaknesses, regional and global volatilities, the risk of global supply chain disruptions, and the reliance on some export-import markets, along with the pressure of trade remedy investigations.

Given this, the Ministry of Industry and Trade will speed up public investment disbursement, review obstacles to key projects in electricity, oil and gas, processing and manufacturing, and minerals in order to soon put them into operation, and continue its cooperation with FDI firms and big enterprises at home and abroad as well as international organisations to step up connectivity and improve capacity for domestic suppliers.

The ministry will also encourage the purchase of home-made goods, and seek new markets for key exports, Thang added.

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Petrovietnam to complete $1.5 bln Long Phu 1 thermal power plant in 2027

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State-owned energy giant Petrovietnam aims to restart the idling Long Phu 1 thermal power project, located in the Mekong Delta province of Soc Trang, and complete it in 2027, according to the draft amendments to the power development plan VIII (PDP VIII).

Petrovietnam was assigned as investor of the $1.5 billion coal-fired power project in 2010. In 2014, Petrovietnam signed deals to assign Russia’s Power Machine and its technical arm Petrovietnam Technical Service Corporation (PTSC) as engineering, procurement, and construction (EPC) contractors.

Long Phu 1 thermal power project in Soc Trang province, Mekong Delta. southern Vietnam. Photo courtesy of PetroTimes magazine.

Long Phu 1 thermal power project in Soc Trang province, Mekong Delta. southern Vietnam. Photo courtesy of PetroTimes magazine.

In January 2018, when the project reached 78% completion, the United States had deployed sanctions against Russia due to the Crimea issues, leading to challenges in project implementation. In March 2019, Power Machine stopped construction activities at the project site.

According to the ministry’s document, Petrovietnam is restarting the project and amending the project’s feasibility study.

Long Phu 1 is one of five under-construction coal-fired power plants in Vietnam, the ministry noted. The others are the 1,330 MW Vung Ang II, 110 MW Na Duong II, 1,403 MW Quang Trach I, and 650 MW An Khanh-Bac Giang.

Meanwhile, five projects are facing challenges, namely the 600 MW Cong Thanh, 1,200 MW Nam Dinh I, 1,320 MW Quang Tri, 1,980 MW Vinh Tan III, and 2,120 MW Song Hau II.

The Cong Thanh is waiting for approval to use LNG as feedstock, while Quang Tri, Vinh Tan III, and Song Hau II have stopped or do not have any investor yet. Nam Dinh I is progressing to begin construction later this year.

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Investing in human resources for cultural industries

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After more than seven years of implementing the Strategy for the Development of Cultural Industries in Vietnam to 2020, with a vision to 2030, Vietnam’s cultural industries have made new strides, making positive contributions to the country’s GDP growth.

The production value of Vietnam’s cultural industries in the 2018-2022 period reached about 1,059 trillion VND (USD 44 billion). In 2022, the contribution of cultural industries to GDP reached 4.04%. In large cities such as Hanoi and Ho Chi Minh City, cultural industries have contributed about 4% of the local GRDP. Many cities have officially joined the UNESCO Creative Cities Network such as Hanoi, Hoi An, and Da Lat.

However, according to Tran Thi Phuong Lan from the Department of Culture and Arts under the Party Central Committee’s Commission on Communication and Education, the cultural industry has not yet developed to be commensurate with the country’s distinct potential, outstanding opportunities, and competitive advantages.

Vietnam still lacks specific and appropriate mechanisms and policies to attract capital and resources for the comprehensive development of cultural industries. The connection and coordination between sectors in the development of cultural industries is still not tight, has not promoted the commercial element in cultural products; there are still few large literary and artistic products and works with high ideological and artistic value, etc.

On August 29, 2024, the prime minister signed and issued Directive No.30/CT-TTg on the development of Vietnam’s cultural industries, meeting the expectations of those working in this field.

The prime minister requested ministries, branches and localities to thoroughly grasp and further raise awareness of the position, role, importance and value of cultural industries for socio-economic development and promotion of Vietnamese culture; to promote the responsibility of leaders in directing the development of cultural industries; to proactively implement strategies in a focused and key direction; to issue necessary mechanisms and policies to support, encourage and promote the development of cultural industries in the coming period.

Many experts and managers believed that the most important thing that cultural industries need is human resources, because this is a vital and key factor. Localities need to issue mechanisms and policies to ensure and attract resources, contributing to the construction and development of culture and people in each region, closely linked to the strengths of cultural industries.

In Da Nang, since 2015, the city leaders at all levels have been striving to implement the Party and State’s policies and guidelines in placing culture on par with economics, politics, and society. The city has identified the development of cultural industries along with the construction and completion of the cultural market in 12 areas, focusing on: advertising, software and entertainment games, design, cinema, performing arts, and cultural tourism.

However, the development of cultural industries in Da Nang still has some limitations, with human resources being limited in both quantity and professional quality. The preferential treatment policy for people working in culture and arts has not been given due attention.

Nguyen Thi Hoi An, Deputy Director of the Department of Culture and Sports of Da Nang City, said: “Da Nang has proposed a roadmap to upgrade the Da Nang College of Culture and Arts. At the same time, we focus on training human resources for the cultural industry, improving the quality of training at specialised schools; building standard curricula; investing in teaching and learning equipment in a synchronous manner in the stages of art, technology, production management, distribution, preservation, and communication; and encouraging and sending qualified staff to study and gain experience in countries with developed cultural industries.”

Nguyen Thi Thanh Thuy, Deputy Director of the Department of Culture and Sports of Ho Chi Minh City, shared: The city has been focusing on training human resources for cultural industries through schools, linking with businesses, and cooperating with international partners.

In addition, the city has reviewed and supplemented land funds to the city planning to build cultural industrial parks and film studios; focused on building a network of creative, branded businesses that are competitive in areas where Vietnam has potential and strengths such as software, handicrafts, performing arts, etc., to create many high-quality products. At the same time, there should be reasonable policies and regimes for human resources in the cultural field.

Associate Professor, Dr Do Lenh Hung Tu, Chairman of the Vietnam Cinema Association, said: In the stage of training and developing the film human resources, especially high-quality human resources, the establishment of a specific mechanism to discover, nurture, use and reward talents is extremely important. At the national level, the State needs to have special treatment regimes so that talents can fully develop their capacity and contribute to society, while at the same time creating more favourable conditions for professional organisations to promote young creative activities, create playgrounds, and “talent nursery” competitions.

In the immediate future, it is necessary to promote specialised training in the film industry; especially training a team of film managers with sufficient qualifications and capacity to meet the requirements in the period when cinema is striving to become a key cultural industry.

Highly qualified human resources are a decisive factor for the development of cultural industries. Therefore, it is necessary to effectively implement policies to attract and promote talents, provide incentives and honour individuals with good works and positive influence in society; support the transfer of knowledge, skills, practical know-how, etc., related to the fields of cultural industries; train and foster a team of managers and enforcers of copyright, related rights, cultural and tourism human resources; and form a team of in-depth and interdisciplinary experts.

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