Balance sheet long term investments

Malaysian Senior Minister cum International Trade and Industry Minister Azmin Ali (Photo: malaymail.com)

Kuala Lumpur (VNA) – The Malaysian Government has approved the National Investment Aspirations (NIA), a forward-looking growth framework that will outline the basis for Malaysia’s investment policy reforms.

In a statement on April 21, Malaysian Senior Minister cum International Trade and Industry Minister Azmin Ali said the NIA would focus on revitalising Malaysia’s investment climate, attracting high-quality investments into the country and creating high-income jobs, particularly post COVID-19.

Moving forward, Malaysia will adopt a comprehensive approach to reinvigorating the investment ecosystem and respond adequately to emerging megatrends, as well as the evolving needs of our investors.

Malaysia needs to rise to this challenge by continuously enhancing unique value propositions which span across a wide array of elements such as incentives, facilitation, talent, infrastructure, as well as legal, regulatory, procedural and institutional mechanisms, he said.

He added that the NIA would focus on inclusivity and sustainability that is compatible with the environmental, social and governance (ESG) goals, as new investments that are anchored upon these elements would propel growth in the technologically sophisticated sectors, as well as strengthen forward and backward linkages.

According to him, the NIA encourages sustained flow of quality investments in new and possibly complex growth areas, foster innovation and sophistication, create greater job opportunities and improve income prospects./.

Vietnam possessing advantage in AI field, illustration photo

South Korea’s Naver Corporation and the Hanoi University of Science and Technology (HUST) – Vietnam’s leading research university – in late March launched the AI International Research Centre under the Symposium on Information and Communication Technology, marking the first Southeast Asian AI research centre in Hanoi. Accordingly, the two parties will together build and operate the centre with the purpose to deeply research and train a high-quality labour force in terms of AI.

Along with implementing a search to create core “Make in Vietnam” technology, the centre will also focus on developing AI applications for different sectors and industries in order to promote Vietnam’s digital transformation and the Industry 4.0 process. The deal between Naver and HUST are motivation for South Korean enterprises in the AI sector arrive to Vietnam to expand their operation in the context the country’s demand on developing the AI sector is also increasing.

Vietnam has seen increase in such investment inflow from South Korea as well as other countries under deals between domestic and foreign investors. Notably in March 2020, Samsung officially kicked off construction of the largest research and development (R&D) facility in Vietnam.

The new centre will become the largest for the tech giant in all of Southeast Asia, becoming a leader towards researching, deploying, and applying new technologies of the Fourth Industrial Revolution. In addition, the centre will also be a place to train high-tech human resources and especially technologies such as AI and big data.

Jeong Sam Yong, general director of Samsung SDS Vietnam, said that the group is interested in joining Vietnam’s digital transformation process, and that becoming the strategic shareholder in domestic tech group CMC Corporation is a bold example.

“Samsung is assisting Vietnam in implementing IT solutions and applying management software in production operations. In addition, the group supports telecommunications and system integration solutions,” Yong said. “In the future, the group will promote the construction of smart cities and smart buildings thanks to Internet of Things (IoT) applications, cloud computing, and AI in Vietnam.”

A year ago FPT Corporation signed an MoU with Hancom Corporation, the largest productivity software manufacturer in South Korea. The two parties will work together to develop six sectors: office software for the Vietnamese market, smart cities, AI, IoT, education, and self-driving vehicles.

Around the same time, VinAI Research, VinGroup’s AI research arm, announced addition of a cutting-edge supercomputer to its AI computing platform. The machine, a 5-petaflop accelerated data centre in a box, is the first deployment of such a system in Southeast Asia.

Numerous large international groups are also investing for R&D activities in Vietnam along with their operational activity. German technology giant Bosch already boasts two R&D centres in Ho Chi Minh City.

These investments are playing a major role in Vietnam’s goal of nurturing its high-tech sector and becoming an AI research and development leader by 2030 as similar as the target mentioned in the national strategy on R&D and application of AI approved by then-Prime Minister Nguyen Xuan Phuc last month.

The strategy outlines that by 2025, Vietnam is to become a centre for innovation, as well as development of AI solutions and applications. The country will establish two national innovation centres for AI and simultaneously increase the number of innovative related startups and total investment in the sector. In addition, Vietnam is also focused on upgrading and forming 10 new key research and training institutions on AI. As per the strategy, Vietnam expects to rank among the top four countries in ASEAN and in the top 50 worldwide in R&D and application of AI by the end of the decade. The country has plans to set up 10 renowned AI centres as well as develop three national centres for big data storage and high-performance computing, connecting domestic data centres and high-performance computing centres to create a shared network.

In order to realise the targets, the government has asked to “allocate resources on developing essential AI products and services that Vietnam possesses a competitive advantage in; and strategise key investments in AI application in fields related to national defence and security, natural resources and environmental management, and public services. Besides this, it is necessary to vigorously develop AI application enterprises and AI startups,” the strategy noted.

Developing AI is also a part of the economic target by 2030 as defined by the 13th National Party Congress. Vietnam determines that the rapid and sustainable development on the basis of science, technology, innovation, and digital transformation is one of three key elements in the country’s development strategy.

Choi In Hyuk, COO of Naver said, “Naver has been impressed with Vietnam’s growth in the science-technology sector in recent years and we see that it has potential to expand AI personnel training.”

MARD Vice Minister Ha Cong Tuan, USAID Acting Mission Director Bradley Bessire, Ministry representatives, provincial leaders, forest owners, private sector partners, local organizations, and community members, joined the event to review the results and lessons learned from the Vietnam Forest and Delta’s work, and share recommendations on how to sustain the project’s results for future development of the forestry sector in Vietnam.

The USAID Vietnam Forests and Deltas project, a $31.4 million climate change program implemented by Winrock International from 2012-2021, helped Vietnam’s transition to climate resilient, low-emission sustainable development. Over its more than eight years of implementation at the national level and in the provinces of Quang Ninh, Nam Dinh, Son La, Thanh Hoa, Nghe An, Lam Dong and Long An, the project achieved significant results, which received wide recognition from the Government of Vietnam, local communities and other related stakeholders.

Notably, the Vietnam Forests and Deltas project supported MARD to successfully implement the Payment for Forest Environmental Services (PFES) system at national scale, which now generates approximately $120 million annually to finance the management of approximately 6 million hectares of Vietnam’s forests. The PFES system contributes to increasing incomes and living standards for hundreds of thousands of people living in the mountainous areas who receive payments to help protect forests. The project also helped MARD expand the PFES system to increase its transparency, efficiency and effectiveness through application of electronic payments in disbursing funds and enhancement of monitoring and evaluation.  In addition, the project trained approximately 350,000 people on climate change adaptation, forest management and livelihoods development and helped over 200,000 people implement climate change risk reduction practices in the Mekong and Red River Deltas.

In his opening remarks, Acting Mission Director Bessire said, “The Vietnam Forests and Deltas project is the first climate change collaboration program between USAID and the Government of Vietnam. We are very proud to work closely with the Vietnam Ministry of Agriculture and Rural Development and a number of provinces to strengthen forest management and build resilience for vulnerable communities in the Red River and Mekong Deltas through this program.”

USAID also announced two new projects which will build on Vietnam Forest and Delta’s successes and expand assistance in helping Vietnam respond to the impacts of climate change and strengthen forest and biodiversity conservation. The new Sustainable Forest Management project (2020-2025) seeks to avoid carbon emissions from natural forest conversion and increase carbon sequestration through the improved management of plantation forests; and the Biodiversity Conservation project (2020-2025) aims to maintain and increase forest quality, and protect and stabilize wildlife populations in national parks and natural reserves, in high conservation value provinces. These projects will work in 12 provinces across Vietnam.

To view Vietnam Forests and Deltas project photos, visit: https://flic.kr/s/aHsmVfYxXR

Chung Anh