Algeria is actively looking to attract Vietnamese investment as part of its broader strategy to stimulate economic growth through new business partnerships. Key sectors identified for collaboration include textiles and garments, agricultural processing, refrigeration equipment production, logistics, and tourism.
Exploring New Opportunities
A recent engagement between Algerian enterprises and Vietnamese businesses highlighted the potential for mutual benefit in various industries. Algeria’s push for investment reflects its desire to diversify its economy and reduce reliance on oil revenues. By seeking partnerships with Vietnam, a country known for its vibrant manufacturing and agricultural sectors, Algeria hopes to foster innovation and development within its own market.
The interests expressed by Algerian businesses extend beyond mere financial investments; they aim to establish long-lasting relationships that can pave the way for technology transfer and skills development. The collaborative spirit could also enhance trade between the two nations, creating opportunities for Vietnamese companies to enter the North African market.
Vietnamese Energy Sector Growth Strategy
The interest from Algeria comes against the backdrop of Vietnam’s own strategic initiatives to boost private sector participation in its energy sector. Following the issuance of Resolution 55-NQ/TW in February 2020, the Vietnamese government has laid out an ambitious plan aimed at developing its energy resources until 2030, with a vision to expand through 2045. This framework encourages foreign investment in energy projects, marking a significant shift towards privatization in a sector traditionally dominated by state-owned enterprises.
Insiders predict that this policy will break down existing barriers, allowing greater private investment which is crucial for meeting Vietnam’s growing energy needs. As the country seeks to modernize its energy infrastructure and explore renewable options, collaborations with international investors will be essential to achieving these objectives.
Currency Exchange Rates on the Rise
In related economic news, the State Bank of Vietnam has set the daily reference exchange rate for the US dollar at 24,696 VND/USD as of February 27, 2025, marking an increase of 28 VND from the previous day. This upward adjustment reflects ongoing fluctuations in the currency market and may impact trade dynamics, particularly for businesses engaged in import-export activities.
UK-Vietnam Trade Relations Strengthen
Meanwhile, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is enabling stronger trade ties between the United Kingdom and Vietnam. David Johnstone, Head of Free Trade Agreement Utilisation at the UK Government, noted that this agreement creates new avenues for Vietnamese retailers and distributors to source a wider array of products from the UK, potentially enhancing bilateral trade volumes.
Bac Ninh’s Growing Investment Landscape
Bac Ninh province is also experiencing significant growth in foreign direct investment (FDI), having recently licensed 48 new projects worth over $200 million. The province now boasts a total of 2,459 valid FDI projects with registered capital nearing $31.3 billion. This surge in investment reflects Bac Ninh’s attractiveness as a destination for businesses looking to expand within Vietnam.
Strategic Partnerships for Energy Transition
On the energy front, Petrolimex, a major player in Vietnam’s petroleum industry, has partnered with the Asian Development Bank (ADB) to facilitate its transition towards more sustainable energy practices. The ADB will provide technical support, including assessments of Petrolimex’s investments and potential roadmaps for energy transition—a move seen as vital in aligning with global sustainability goals.
Similarly, VinFast has joined forces with the Vietnam Association of Seafood Exporters and Producers (VASEP) to promote the use of electric vehicles within the transportation and logistics sectors. VinFast will offer incentives to VASEP members to encourage a shift from gasoline-powered vehicles to electric models, marking a significant step towards eco-friendly transportation solutions.
International Textile Fair Highlights Industry Growth
Vietnam’s textile sector is also in the spotlight with the opening of the Vietnam International Trade Fair for Apparel, Textiles, and Textile Technologies (VIATT) at the Saigon Exhibition and Convention Centre in Ho Chi Minh City. The event features over 400 exhibitors and more than 500 booths showcasing innovative products and technologies in textiles, positioning Vietnam as a key player in the global apparel market.
Strengthening Energy Cooperation with South Korea
Furthermore, Vietnam is keen to bolster its energy cooperation with South Korea, inviting foreign investors to participate in the dynamic Vietnamese energy market. The government is particularly focused on attracting partners with experience in nuclear power, indicating a strategic direction towards advanced energy solutions.
Positive Economic Outlook from Financial Institutions
International financial institutions have expressed optimism regarding Vietnam’s growth prospects. HSBC highlights the government’s commitment to public investment in strategic infrastructure projects, which are critical for enhancing connectivity and boosting economic activity across the nation. This investment strategy is viewed as pivotal in transitioning Vietnam into a new era of economic development.
Major Railway Project to Boost Connectivity
In an effort to enhance transportation infrastructure, the National Assembly has greenlighted a significant railway project connecting Lao Cai, Hanoi, and Hai Phong. The railway will stretch approximately 390.9 kilometers for the main route and will traverse nine localities, which is expected to facilitate better freight movement and stimulate regional economic growth.
Latest Developments in Currency Exchange Rates
Additionally, the State Bank of Vietnam reported an increase in the exchange rate, setting it at 24,668 VND/USD on February 25, 2025, up by 12 VND from the previous day. These fluctuations are indicative of ongoing adjustments within the Vietnamese economy as it adapts to both domestic and international pressures.
New Logistics Initiatives in Hai Phong
In Hai Phong, the Jeil Group, a Korean company, has commenced its logistics project named Jeil Logistics 1. The initiative aims to establish a logistics warehouse and develop core infrastructure for supply chain and distribution operations in Vietnam, further enhancing the country’s logistical capabilities.
Groundbreaking for Sustainable Real Estate Projects
In a landmark development, the first environmental, social, and governance (ESG) real estate project in Vietnam has broken ground in Lam Dong province. Named Haus Da Lat, this 5-hectare project not only promises luxury living but also emphasizes forest conservation and cultural preservation, strategically located near Xuan Huong Lake.
Agricultural Export Strategies Amidst Challenges
Vietnamese agricultural exporters are strategizing to navigate challenges stemming from global trade tensions. Companies are advocating for flexible exchange rate management and prioritization of reasonable loan quotas for agricultural exports, especially as domestic raw material prices rise.
Legal Frameworks for Digital Assets
As digital assets gain prominence, experts emphasize the need for clear legal frameworks to manage this emerging field. Various ministries are working on legislative measures to address the complexities associated with virtual and digital assets, ensuring regulatory clarity and protection for investors.
Proposal to Expand Business Establishment Eligibility
The Vietnamese government is considering an amendment that would allow public employees who are scientists to establish and manage businesses focusing on scientific research products. This proposal aims to encourage innovation and entrepreneurship among knowledgeable individuals within the public sector.
Tax Extension Proposals for Businesses
The Ministry of Finance has proposed extending tax and land rent payment deadlines for 2025, indicating a supportive approach to assist businesses amidst challenging economic conditions. This extension is characterized as a policy adjustment rather than a reduction or exemption of taxes.
Positive Impact of EVFTA After Five Years
Lastly, the EU-Vietnam Free Trade Agreement (EVFTA) has delivered encouraging results after five years of implementation. According to the Central Institute for Economic Management (CIEM), Vietnamese exports to the EU have surged, particularly in textiles, footwear, and agro-fishery products, underscoring the agreement’s effectiveness in bolstering trade relations.
These developments collectively illustrate a vibrant economic landscape in Vietnam, marked by diverse initiatives, emerging partnerships, and proactive policies designed to enhance growth and sustainability.
