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AT A GLANCE

VIETNAM - CHINA TIES PRESIDENT XI JINPING VISITS VIETNAM
During his talks in Hanoi on December 12 with General Secretary nerships in economics, trade, and investment
of the Communist Party of China Central Committee and President in a more sustainable and deeper manner.
of China Xi Jinping, who was in Vietnam paying a State visit from Following the talks, the two leaders witnessed
December 12-13, Party General Secretary Nguyen Phu Trong said the signing of 36 cooperative documents
Vietnam considers developing relations with China a top priority between ministries, agencies, and localities in the two countries.
and strategic choice. President Xi, for his part, affirmed that China In the Vietnam - China joint statement issued on December 13,
attaches great importance to relations with Vietnam, considering the two sides agreed “to build a Vietnam-China Community with
it a priority in China’s foreign policy in the neighborhood. The two a Shared Future having strategic significance and exert efforts for
sides agreed to continually consolidate mutual political trust, the happiness of the two peoples and for the cause of peace and
strengthen defense and security cooperation, and promote part- progress of mankind.”

VIETNAM AMONG COUNTRIES POSTING HIGHEST RATES ECONOMIC GROWTH
The Vietnam News Agency on December 20 the article, with an average real GDP growth rate of 6.1 per cent
quoted Yahoo Finance as reporting that Viet- during the 2012-2022 period, Vietnam ranked among nations with
nam, together with China and some other the highest economic growth. Its agriculture sector greatly supports
Asian countries and territories, is among 20 the economy by contributing to GDP as well as employment. Vietnam’s
nations seeing the fastest economic growth over the last decade. In a agriculture, forestry and fisheries exports reached $53.22 billion for
recent article, Yahoo Finance’s website sourced data from the Inter- the first time in 2022, up 9.3 per cent against 2021. As a result, its agri-
national Monetary Fund (IMF) on growth in real GDP for all countries culture sector posted a trade surplus of $8.5 billion, accounting for
over the last ten years to average real GDP growth rates. According to over 75 per cent of the country’s total trade surplus in the year.

FOREIGN TRADE RECORD SURPLUS POSTED
According to a report presented at a teleconference held by the Director of the MoIT’s Agency for Foreign
Ministry of Industry and Trade (MoIT) on December 20, Vietnam Trade Tran Duy Dong said exports showed
recorded a trade surplus of $26 billion in 2023, nearly triple the signs of recovery at the end of 2023, and
figure in 2022 and the highest on record. It shipped $354.5 billion he relishes the better prospects ahead in
worth of products last year, down 4.6 per cent year-on-year, with 2024 on the back of existing free trade agreements (FTAs) and the
33 items recording export turnover in excess of $1 billion in the conclusion of negotiations and implementation of trade deals
first eleven months, of which seven posted turnover in excess of with new markets such as Israel and the United Arab Emirates.
$10 billion, accounting for 66 per cent of total turnover. Farm He emphasized that sound political relations with trade partners
produce was among the key exports, while processed industrial such as China, the EU, and the US will create a foundation for
products accounted for 85 per cent of export turnover. General Vietnam to expand its economic, trade, and investment cooperation.

SUPPORT FUND FOR FOREIGN INVESTORS TO BE SET UP GLOBAL MINIMUM TAX

The National Assembly (NA) approved a four consecutive years. Investors subject to the tax will have to pay
resolution on November 29 on applying the GMT in Vietnam. It is estimated that more than 120 MNEs in
additional corporate income taxes in accor- the country will be affected. Vietnam will, however, set up a support
dance with the Global Anti-Base Erosion fund to encourage and attract strategic investors and multi-national
Rules, known as the Global Minimum Tax (GMT). Under the reso- groups and maintain its appeal as an FDI destination. The 15th
lution, which takes effect from January 1, 2024, a GMT rate of 15 NA asked the government to build a draft decree on the establishment,
per cent will apply to multinational enterprises (MNEs) with management, and use of a fund to support investment to stabilize
revenue exceeding €750 million ($800 million) or more in two of the investment climate and attract strategic investors and MNEs.

LOW-EMISSIONS AGRICULTURE MILLION-HA HIGH-QUALITY RICE PROJECT LAUNCHED
A ceremony was held in the Mekong Delta’s Hau Giang province livelihoods of rice farmers, protect the envi-
on December 12 to launch a project on developing 1 million ha of ronment, adapt to climate change, reduce
high-quality, low-emissions rice linked with green growth in the greenhouse gas emissions, and contribute
Mekong Delta region by 2030. Under the project, greenhouse gas to the implementation of Vietnam’s inter-
emissions from rice farming are expected to be cut by more than national commitments. Speaking at the ceremony, Minister of
10 per cent and low-emissions, high-quality rice will account for Agriculture and Rural Development Le Minh Hoan said that
over 20 per cent of total exports from the Delta, which is a implementation will include experimental trials of new policies,
specialized rice farming region. One million ha of high-quality including paying carbon credits based on performance, focusing
and low-emissions rice cultivation area will be established, in on low-emissions production tied to green growth, and developing
association with the restructuring of the production network along an agricultural economy with a circular approach. Ms. Carolyn
the value chain and the application of sustainable farming practices Turk, Country Director of the World Bank (WB) in Vietnam, said
to increase the value and sustainability of the rice industry, improve the WB is committed to accompanying and supporting the Viet-
the efficiency of production and business, boost the incomes and namese Government in implementing the project.

20 | VIETNAM ECONOMIC TIMES | JANUARY 2024 en.vneconomy.vn