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Hanoi’s industrial production sees positive growth

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Since the beginning of 2024, industrial production in Hanoi has been continuing to recover positively.

In the first seven months of 2024, it is estimated that the index of industrial production (IIP) increased by 5.2% over the same period in 2023.

Within this figure, the processing and manufacturing industry increased by 4.4%; electricity production and distribution increased by 12.8%; water supply and waste and wastewater treatment increased by 8.8%; and the mining industry decreased by 3.3%.

In July 2024 alone, the IIP is estimated to have increased by 2.3% over the previous month and by 6.2% over the same period in 2023, with the processing and manufacturing industry having increased by 2.2% by 5.9%; electricity production and distribution increased by 3.6% and 9.9%; water supply and waste and wastewater treatment increased by 0.5% and 5.1%; and mining decreased by 1.3% and 3.2%.

In addition, most processing and manufacturing industries achieved a fairly high growth rate compared to the same period in 2023, such as: machinery and equipment production, up 14.9%; paper and paper products production, up 13.8%; bed, wardrobe, table and chair production, up 11%; other processing and manufacturing industries, up 9.1%; electrical equipment production, up 8.7%; and chemical and chemical products production, up 7.8%.

Meanwhile, the number of workers working in industrial enterprises as of the end of July 2024 is estimated to have increased by 0.5% compared to the previous month and decrease by 0.2% compared to the same period in 2023.

In the first 7 months of 2024, the labour utilisation index of industrial enterprises decreased by 1.4% compared to the same period last year; the number of workers working in non-state enterprises decreased by 3.7%; the foreign-invested sector decreased by 0.6%; and the state sector increased by 1.6%.

By economic sector, the number of workers working in the processing and manufacturing industry decreased by 1.8% (in which, food processing decreased by 12.8%; machinery and equipment production decreased by 10.8%; textile decreased by 9.8%; wood processing and wood product production decreased by 8.5%), while electricity and gas production and distribution decreased by 0.4%.

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Malaysia warns of trade wars, tariffs

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Malaysian Prime Minister Anwar Ibrahim reaffirmed Malaysia’s commitment to sustainable, inclusive, and equitable growth, as well as its ambition to strengthen its position as a key hub for trade, investment, and technological innovation.

Malaysia warns of trade wars, tariffs
Malaysian Prime Minister Datuk Seri Anwar Ibrahim. (Photo: Bernama)

Hanoi – Malaysian Prime Minister Anwar Ibrahim has warned that trade wars, tariffs, and sanctions are no longer just economic tools but have become weapons in the struggle for dominance, eroding trust and undermining the foundations of international cooperation.

In an article titled “The Global South Path’s to Economic Resilience”, published on Project Syndicate, Anwar noted that nations once seen as partners or market competitors now view each other merely as players in a global power struggle.

He wrote that with a new world order taking shape, countries must also recognise the growing challenges faced by nations across the Global South. Many mechanisms that once fueled their development are weakening, while development aid is being closely scrutinised by some of the world’s most powerful countries.

He warned that economic interdependence, once the backbone of global prosperity, has now become a source of tension. If this trend continues, connectivity itself can become a vulnerability, even for countries that have long thrived under globalisation.

As a trade-dependent nation, Malaysia acknowledges that global instability and protectionism make adaptability more crucial than ever, Anwar said.

However, he reaffirmed Malaysia’s commitment to sustainable, inclusive, and equitable growth, as well as its ambition to strengthen its position as a key hub for trade, investment, and technological innovation.

For these reasons, Malaysia has made the strategic decision to seek membership in BRICS, a bloc of major emerging economies, he added, emphasising that joining BRICS aligns with Malaysia’s goal of bridging the development gap between the Global North and South.

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Vietnam should be flexible in selecting financial centre models: expert

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Tuan also highlighted the importance of human capital, one of the five important factors to successfully build a financial centre, citing the Global Financial Centres Index, which ranks business environment, human capital, infrastructure, market development, and reputation as the key drivers of success.

Vietnam should be flexible in selecting financial centre models: expert
HCM City is now a regional specialised financial centre (Photo: VNA)

London (VNA) – Vietnam does not need to choose between a specialised or a comprehensive regional financial centre but can instead adopt a flexible approach to seize opportunities, said Dr. Ho Quoc Tuan, Senior Lecturer in Finance and Accounting at the UK’s University of Bristol.

Talking with the Vietnam News Agency’s reporter based in London ahead of Permanent Deputy Prime Minister Nguyen Hoa Binh’s visit to the UK from March 16-20, Tuan explained that financial centres traditionally split two paths: specialisation or diversification.

A specialised approach could position Vietnam as an ASEAN niche player, like Tel Aviv or Mumbai, focusing on select services, or as a global player akin to Dubai, Hong Kong, or Luxembourg. Alternatively, a diversified model could see Vietnam begin locally, like Lisbon or Atlanta, then grow to rival Bangkok or even London and New York.

Even if Vietnam aims to develop into a comprehensive financial centre, it can adopt Dubai’s specialised model to accelerate fintech services, particularly in AI/Machine Learning and digital assets – areas where Vietnam excels in training and application.

He cautioned, however, that Ho Chi Minh City and Da Nang should avoid “stepping on each other’s toes” in choosing areas of specialised development, adding that one could lead on fintech, and the other on AI.

Tuan also highlighted the importance of human capital, one of the five important factors to successfully build a financial centre, citing the Global Financial Centres Index, which ranks business environment, human capital, infrastructure, market development, and reputation as the key drivers of success.

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Vietnam aims for 454 billion USD export revenue amidst global headwinds

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Vietnam exported 65.2 billion USD worth of products in January-February, a 9.9 per cent increase compared to the same period last year. Meanwhile, imports totaled 62.9 billion USD, rising 16 per cent, resulting in a trade surplus of 235 million USD.

Vietnam aims for 454 billion USD export revenue amidst global headwinds
At SOWATCO port in Thu Duc city. (Photo: VNA)

Hanoi – Vietnam has set an ambitious export target of 454 billion USD for 2025, a 12 per cent year-on-year increase, despite recent signs of deceleration in exports due to global economic pressures.

Many experts believe that achieving this goal will require decisive actions from regulatory bodies and extraordinary efforts from businesses to overcome obstacles.

According to data from the Ministries of Finance and Industry and Trade, Vietnam exported 65.2 billion USD worth of products in January-February, a 9.9 per cent increase compared to the same period last year. Meanwhile, imports totaled 62.9 billion USD, rising 16 per cent, resulting in a trade surplus of 235 million USD.

Nguyen Anh Son, Director General of the Ministry of Industry and Trade (MoIT)’s Agency of Foreign Trade, identified key challenges to Vietnam’s exports, including its dependence on major markets like the US, the EU, and China. This reliance increases risks for businesses and makes the country vulnerable to global economic and political fluctuations.

Additionally, Vietnamese exports still fall short of international standards, making them less competitive as consumers increasingly demand quality and sustainability. Son also pointed out infrastructure constraints, particularly the discordant investment in seaports and transport systems, which result in high shipping costs and extended delivery times.

According to Son, insufficient market intelligence has left many companies struggling with production planning. Moreover, trade tensions between Vietnam’s largest trading partners could present both opportunities and challenges for exporters.

Do Ngoc Hung, head of the Vietnam Trade Office in the US, stated that these trade tensions could benefit Vietnam if the country manages to capture market share, but cautioned that businesses must navigate carefully. Enterprises must fully cooperate with US authorities during trade investigations and remain cautious with raw materials from countries subject to US tariffs to avoid allegations of origin fraud, Hung said.

Meanwhile, Vietnamese trade counselor in China Nong Duc Lai noted that the US-China trade tensions could shift investment flows to Vietnam, creating greater opportunities for Vietnamese businesses to integrate into global production chains.

To mitigate market impacts, Lai recommended that Vietnamese businesses closely monitor developments and policies from major trading partners, make timely forecasts and responses, and develop contingency plans for scenarios such as increased tariffs or supply chain disruptions. He also suggested diversifying export markets and enhancing product competitiveness and quality to expand market reach.

The MoIT has issued a directive outlining several solutions to develop markets, promote exports, and manage imports this year. The ministry advised businesses to closely track market developments, while Vietnamese trade offices abroad will continue updating industry associations on policy changes so businesses can adjust production plans and seek new orders accordingly. Efforts will also focus on exploring new markets, such as the Middle East and Halal markets.

Experts emphasised the importance of capitalising on free trade agreements, accelerating negotiations for new and upgraded pacts, and ensuring the domestic implementation of international commitments. Additionally, training on rules of origin for enterprises, along with efforts to combat origin fraud, improve logistics services, and promote digitalisation to streamline business operations, should be prioritised.

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