VIETNAM BUSINESS NEWS MAY 515:45 89 percent of imports raw materials for domestic production: Ministry Up to 89 percent of the imports in the first four months of this year are raw materials and accessories for domestic production with a combined value of 106.6 billion USD, up 16.8 percent year-on-year, according to the Ministry of Industry and Trade. It reported on May 4 that Vietnam’s total imports expanded 15.7 percent year-on-year to an estimated 119.8 billion USD in the period. In April alone, the figure was estimated to reach 32.2 billion USD, down 1.5 percent month-on-month and up 15.5 percent compared to the same period last year. The import of energy products strongly surged, partly due to scarce supply. Notably, the import turnovers of gasoline and oil, coal, crude oil and liquefied natural gas surged by 146.9 percent, 123 percent, 63.7 percent and 62.7 percent, respectively. In addition, the import of other items also increased sharply such as petroleum products (up 30.3 percent), chemicals (up 29.3 percent), chemical product (26.71 percent), fertiliser (73.3 percent), rubber (34 percent), mobile phones and accessories (20.8 percent). China was the largest market of Vietnam in the first four months, with an estimated turnover of 36.78 percent, up 8.3 percent compared to the same period last year. Vietnam also imported goods from the Republic of Korea, ASEAN, Japan, EU, and the US with respective values of 23.3 billion USD, 16.4 billion USD, 8.2 billion USD, 5.3 billion USD and 4.7 billion USD. German newspaper highlights Vietnam’s post-pandemic economic recovery Germany’s newspaper Finanzmarktwelt has run an article on Vietnam’s full reopening post the COVID-19 pandemic, with rosy signs seen in all sectors. According to the article, Vietnam faced a range of difficulties in the fight against the pandemic last year due to the spread of the Delta variant. However, the Southeast Asian nation has fully opened and shifted to living safely with the pandemic despite Omicron waves this year. The country’s export-import value hit a record 67.37 billion USD in March, of which 34.71 billion USD came from exports, surpassing the previous record in July 2021. The article cited a forecast by the Asian Development Bank (ADB) as saying that Vietnam’s economy will expand about 6.5 percent this year. It also highlighted Vietnam’s export of electronic products, especially mobile phones, garments-textiles and timber products. Tim Lee Lahaphan, an economist from Standard Chartered Bank, said more and more foreign firms have planned to move their supply chains to Vietnam that is dubbed as a centre of electronics, garments-textile and footwear in the region, the article noted. Apart from production and trade, the domestic tourism is also bouncing back, the article said, adding that since mid-March, Vietnam announced its complete resumption of tourism activities. Tourism has significantly contributed to Vietnam’s economy, making up 9.2 percent of the national gross domestic product (GDP) last year, the article said. HCM City looks to bolster waste treatment cooperation with Indian firm Vice Chairman of the Ho Chi Minh City People’s Committee Vo Van Hoan on May 4 met with Alla Ayodhya Rami Reddy, a member of the upper house of India, who was leading a business delegation, including representatives of the Ramky Group, to the city to explore cooperation chances in waste treatment. The host official said HCM City welcomes Indian enterprises coming to explore opportunities and make long-term investment and business. It is always ready to create the best possible conditions for Indian firms to invest in industrial park infrastructure and convert old industrial parks into the ones that apply modern and advanced technologies. The Ramky Group’s intention to build a hi-tech waste treatment plant highly matches the demand and development orientations in the city and Vietnam as a whole, Hoan said, adding that HCM City highly values Indian businesses’ experience and technological capabilities in waste treatment. HCM City hopes that Ramky will consider, give advice, and implement waste treatment projects at existing landfill sites while constructing a large-scale wastewater treatment system for the city, according to the Vice Chairman. For his part, Reddy, who is also the founder of Ramky, affirmed his wish to enhance cooperation with HCM City and other southern localities of Vietnam in the treatment of urban, medical, and industrial waste, along with wastewater, by using advanced technology. The group looks to raise its investment in Vietnam to 1 billion USD from the initial 150 million USD committed in a memorandum of understanding on cooperation signed in December 2021, he noted. Airports welcome over 1.1 million passengers during 4-day holiday Total passengers passing through airports across Vietnam exceeded 1.1 million during the four-day National Reunification Day (April 30) and May Day (May 1) holiday, reported the Civil Aviation Authority of Vietnam (CAAV). The figure represented an annual decrease of 3.3 percent, however goods throughput hit 15,900 tonnes, up 7.5 percent on year. Tan Son Nhat in Ho Chi Minh city, Noi Bai in Hanoi, and Da Nang in the central city of the same name received 375,000, 240,000 and 94,800 passengers, as well as 4,900, 9,600 and 316 tonnes of goods, respectively. Vietnamese airlines operated 3,600 flights, down 13.5 percent over the same period last year. Of the flights, 3,300 took off on time, and 25 were cancelled. FDI channeled into Binh Duong quadruples Foreign direct investment (FDI) flowing into the southern province of Binh Duong neared 1.8 billion USD in the first four months of this year, four times higher than in 2021. Local industrial parks attracted more than 9.2 trillion VND (400.55 million USD) in domestic investment, an annual increase of more than five times. To date, Binh Duong's industrial parks are home to 3,014 valid projects. Of the total, there are 2,340 FDI projects worth nearly 28 billion USD, channeled mainly in the production sector. Among the investors, Nitto Denko Vietnam Co., Ltd., which specialises in manufacturing electronic components, has increased its capital by 99 million USD to produce and process integrated circuit products this year. Meanwhile, Accasette Garment Company Limited in Song Than 3 industrial park raised its capital by 14 million USD to promote production and export of fashion and sports clothing. According to Nguyen Thanh Nhan, Deputy Head of the Binh Duong Industrial Zones Authority, the results showed that after the COVID-19 pandemic, business and production activities have returned to normal, creating favorable conditions for domestic and foreign enterprises to confidently pour capital into goods production and exports. Vietnamese firms partner to upgrade telecoms network in Cambodia MB Cambodia and the Viettel (Cambodia) Pte., Ltd (Metfone), two Vietnamese-invested firms, on May 4 signed a special credit package contract for 2022 to upgrade the telecoms network in Cambodia. Under this contract, MB Cambodia, a branch of Vietnam’s Military Commercial Joint Stock Bank, will provide a credit package with a limit of up to 100 million USD for Metfone, an affiliate of the Viettel Military Industry and Telecoms Group, to upgrade the telecom services network and expand operations in Cambodia. Metfone and MB Cambodia are assessed as leading Vietnamese businesses in Cambodia over the past decade. Vietnamese Ambassador to Cambodia Nguyen Huy Tang described the signing of the contract as an important event since both have gained a foothold in the telecommunications, e-payment, e-wallet, and financial - banking sectors in Cambodia. He held that this partnership will help promote Vietnamese firms’ stature in Cambodia, thereby contributing to the two countries’ cooperation, especially in economy. Bilateral trade has recorded impressive growth in recent years, hitting 5 billion USD in 2020 and 9.3 billion USD in 2021, statistics showed. Petrol prices inch up in latest adjustment Retail prices of oil and petrol were raised from 3pm on May 4 following the latest adjustment by the Ministry of Industry and Trade (MoIT), and the Ministry of Finance. Accordingly, the ceiling retail price of RON95 bio-fuel was raised by 440 VND to 28,430 VND (1.24 USD) per litre, while that of E5 RON92 increased by 330 VND to no more than 27,460 VND per litre. At the same time, the price of diesel was capped at 25,530 VND per litre, an increase of 180 VND. Kerosene prices remained unchanged at 23,820 VND per litre. According to the MoIT, gasoline demand in the second quarter will reach about 5.2 million sq.m, with supply expected to hit some 6.7 million sq.m. The total demand for petroleum in the domestic market this year is forecast at 20.6 million sq.m. Vietnam Australia Innovation Network to hold Int’l Conference on High Quality Agriculture The Vietnam Australia Innovation Network (NIC AU) will organise an International Conference on High Quality Agriculture on May 8 and May 22. The conference, sponsored by the State Committee for Overseas Vietnamese and the National Innovation Centre (NIC) of Vietnam, will be held in an online format, with the participation of many prestigious speakers and guests around the world. This is the second time a global conference on high-tech agricultural innovation has been held, following the success of the one in 2021 also co-organised by NIC AU and the Vietnamese innovation network in some other countries. Hoang Ngoc Bao Huy, NIC AU Vice President, said that the event aims to promote the exchange and transfer of science and technology in the agricultural field from developed countries to Vietnam. It will offer an opportunity for scientists, managers and experts in the fields of agriculture and technology to share experience and provide information related to new technologies for Vietnamese businesses, and support local authorities in looking for solutions to improve crop productivity for export. The NIC AU is working with the NIC, the Ministry of Planning and Investment and Vietnamese innovation networks globally in making plans to implement more programmes, conferences, group meetings and discussions on various scales in the field throughout the years, starting in 2021 and lasting at least until the end of 2022. Remittances to HCM City reach nearly 1.8 billion USD in Q1 Remittances to Ho Chi Minh City in the first quarter of this year reached nearly 1.8 billion USD, according to the State Bank of Vietnam’s branch in the city. The volume showed a 14.2 percent increase compared to the same period last year. Those are impressive figures in the context of complex changes in the world situation and the negative impact of the COVID-19 pandemic on global trade and economic activities. Foreign remittances account for around 12 percent of HCM City’s GRDP, becoming an important resource for socio-economic development in not only the city but also the country as a whole. Last year, remittances to the city came to a record high of 7.1 billion USD, accounting for more than half of the national volume. Transport firms up charges amid mounting fuel prices About 80-90 percent of fixed-route transport firms have adjusted their fares up by 10-15 percent to offset mounting fuel costs, according to a Ministry of Transport (MoT) report submitted to the Prime Minister, assessing the impact of higher fuel prices. According to the ministry, fuel prices have increased by 4,625-7,030 VND per litre (0.2-0.3 USD), or 24.91-39.56 percent, after six price adjustment periods since early 2022. Due to the price hikes, fuel costs have grown to an enormous proportion of the total costs of roadway transport firms, accounting for 40-45 percent of their bills. The firms had no choice but to seek fare rises. The situation is not better for airlines, whose fuel costs account for 39.5 percent of their total costs. The MoT estimated that airline fuel costs in April climbed by 84 percent compared to September 2015, effectively eroding their profitability. The Civil Aviation Authority of Vietnam has sent an appeal to the MoT, requesting adjustments upward on ceiling airfares to help airlines to recover. Meanwhile, railway firms have decided to keep their fares unchanged to attract more passengers and stick to socio-economic targets set by railway authorities. Rail freight rates rose slightly by 3-5 percent. A few shipping lines have begun to collect fuel surcharges since March to cover higher costs, whereas others have not hiked their fares. Vietjet resumes flights from Vietnam to some Asian countries The Vietjet flight number VJ971 officially took off from Hanoi to New Delhi (India) after a hiatus of more than two years. Welcoming the first passengers back on the route to India, the leaders of the Civil Aviation Administration and Vietjet were early present at the airport on April 30 to give flowers and extended the best wishes before the flight. Dinh Viet Phuong, Vietjet Managing Director shared: "A series of direct routes to India - a country of 1.4 billion people shortly after the pandemic and other international routes to Thailand, Singapore, Malaysia, the Republic of Korea, Japan, Indonesia, etc are Vietjet's efforts and commitments to bring flying opportunities for everyone, becoming a bridge for cultural, economic and social exchange activities between countries, leading the wave of strong recovery after the pandemic". Immediately after the pandemic, Vietjet pioneered in operating flights to the Indian capital as well as those to Bodh Gaya holy place. Local tuna exports to Portugal soar by 135% Vietnamese tuna exports to Portugal continued to record a three-digit growth rate in the first quarter of the year, according to statistics given by the Vietnam Association of Seafood Exporters and Producers (VASEP). Most notably, the export value of tuna to the Portuguese market throughout the reviewed period skyrocketed by 135% to US$1.1 million against the same period from last year. Vietnamese enterprises mainly exported frozen tuna coded HS 0304 to the demanding market, with the average export price reaching US$6,537 per tonne. According to figures compiled by the World Trade Center, Portugal is currently the sixth largest tuna import market in the EU bloc, with the Southern European nation purchasing tuna from 35 countries globally. In line with this, Vietnam makes up the eighth largest provider of tuna to Portugal, behind Ecuador, China, Papua New Guinea, Mauritius, Indonesia, Ghana and the Philippines. The average price of Vietnamese tuna exports to this market last year increased with frozen tuna loin coded HS0304 witnessing its highest price, according to the VASEP. Moreover, tariff incentives under the terms of the EU-Vietnam Free Trade Agreement (EVFTA) have given fresh impetus to the high growth of Vietnamese tuna products to the Portuguese market. Cua Lo Port receives first international container ship Cua Lo Port in the central province of Nghe An, a member of Vietnam Maritime Corporation (VIMC), welcomed the international container ship The Mariner to unload and transport goods to India on the morning of May 5. This represents the first time that Cua Lo Port has received an international container ship with a loading capacity of about 23,000 tonnes. The move is expected to help Cua Lo Port serve as a crucial bridge in the VIMC's container transport route, linking the nation to Malaysia and India, as well as opening up development orientations for Vietnamese maritime transport and establishing additional transport routes from central Vietnamese localities to international ports globally. Vietnamese gold consumption demand increases by 6% Vietnam’s consumption demand for gold during the first quarter of the year edged up by 6% against the same period from last year, according to figures given by the World Gold Council (WGC). The global gold market enjoyed a rebound in the first quarter of the year, representing an annual rise of 34%, thanks to strong inflows of exchange-traded funds (ETFs). Coupled with the recovery of global gold demand, consumer gold demand in the country also rose from 18.6 tonnes in the fourth quarter of last year to reach 19.6 tonnes in the first quarter of the year, representing an increase of 6% year on year. This growth was primarily driven by total demand for gold bars and coins increasing by 4% from 13.5 tonnes in the first quarter of 2021 to 14 tonnes in the first quarter of this year. HDBank elects Korean banker as new chairman The appointment of Kim, who used to be chairman and CEO, the highest managerial positions at Hana Bank and Hana Financial Group, as chairman of HDBank’s BOD shows its desire to bring international vision and best standards into its governance, transforming it in its new development stage and enabling international integration. The veteran Korean banker is expected to direct the acceleration of HDBank's strategic programmes, expansion of international cooperation and realisation of its targets of high and sustainable growth both in scale and quality. Kim, 61, has over 30 years of experience in the financial and banking industry. He used to be CFO and CEO of Hana Bank (the second largest lender in Korea) and vice chairman of Hana Financial Group. Coal miners expect good year on higher demand, rising prices Data compiled by Vinacomin - Minerals Holding Corporation (UPCoM: KSV) showed that in the last quarter, raw coal output was 10.58 million tonnes, reaching 27.1 per cent of the year plan and equaling 106 per cent of last year's production. Meanwhile, its coal consumption reached 11.07 million tonnes, equal to 25.7 per cent of the annual plan and up 12.4 per cent year-on-year. During the economic recovery post-COVID-19 pandemic, domestic demand for coal is at a high level, especially coal for power generation. Coal-fired power is accounting for more than 30 per cent of the country's total power capacity and plays an important role in ensuring national energy security. It is also one of the main sources of power supply to meet the needs of economic development and maintain the stable operation of the system. Moreover, domestic coal prices are expected to soon be adjusted, increasing profit margins for businesses. According to Viet Capital Securities Company (VCSC), the domestic coal price is currently at a modest level compared to the international coal price. At present, international prices were 2.5-3 times higher than domestic prices and may continue to increase. Experts of VCSC forecast that TKV may ask to raise coal prices in 2022, as domestic coal prices have remained stable over the past two years despite rising production costs. With the domestic coal production capacity of 100 per cent, coal production is expected to reach 41 million tonnes this year, up 2 per cent on-year. Therefore TKV has to import coal from other markets. And as international coal prices have continuously inched higher, it is not economical for TKV to maintain the coal prices since 2021. Sacombank Securities Joint Stock Company (SBS) said that listed coal mining companies can also benefit from negotiating new selling prices for TKV this year. To produce coal for power generation and benefit from the cost, businesses are concentrating their resources, preventing production disruptions. They also have to mobilise the workforce and equipment to organise coal mining, increase coal production, process and mix coal, ensuring coal output for consumption demand. Thai Binh 2 thermal power plant to start operations by May 10 All employees and managers are making an effort to put the first turbine of the Thai Binh 2 thermal power plant into operation by May 10. According to information from the project’s managing board, the construction is currently 92 per cent complete and the fire prevention system is almost completed. About 1,200 staff are working at the building to accelerate the construction of the thermal power plant. The contractor – QingDao-Sotec – commits to mobilise human resources to ensure that the pilot operation goes smoothly. In order to serve the operation, the managing board has selected 64 engineers and 104 workers to join the on-job training course starting on May 16. Invested in by PetroVietnam, the Thai Binh 2 thermal power plant is an important component of the Thai Binh power centre. It was designed with two units with a total capacity of 1,200MW and is located about 20km to the east of Thai Binh city. Toyota Viet Nam recalls 191 Raize cars According to the Viet Nam Register, these are vehicles manufactured from March 29 to October 8 in Indonesia last year, imported by Toyota Viet Nam for distribution. The time to start implementing the recall programme is from May 4, 2022 to May 4, 2025. The estimated inspection and repair time ranges from 7.6 hours to 24.1 hours per car and is completely free of charge. In case customers want to check if their car is on the list of this programme, they can contact Toyota Viet Nam and Toyota dealers nationwide for support. For more information, customers can directly contact the nearest Toyota dealers or Toyota Viet Nam's hotline number 18001524 or 0916001524 or on the website www.toyota.com.vn. Ho Chi Minh City earns over 1.6 trillion VND in tourism revenue during four-day holiday Ho Chi Minh City earned over 1.6 trillion VND in tourism revenue during the four-day holiday from April 30 to May 3 in celebration of the Liberation of the South, National Reunification Day, and May Day. According to the municipal tourism department, the city welcomed around 420,000 visitors, including 13,200 foreigners, on the occasion. Visitors to the city during the holidays were offered new tourism products including helicopter tours, which allow holidaymakers to view the metropolis from above, and Saigon River tours. The newly launched tours are among the highlights of the “Welcome to Ho Chi Minh City” programme, which is being held from March 15 to September 15 to promote the city’s tourism. Riverway tourism routes have been put in operation in Ho Chi Minh City with the aim to promote local waterway transportation and provide visitors with a new option to explore the city. Banks begin to hike deposit rates Commercial banks are rushing to increase deposit rates to speed up their capital mobilization. ABBank has raised its annual rates by 0.4-0.5 percentage point for tenors of six months or longer, making it the bank with the highest upward adjustment. Customers depositing money online at ABBank for a nine-month term will enjoy a 70-basis-point spike in rates. SHB has revised up deposit rates by 40 basis points for tenors of 12 months, while Techcombank had the same hike for online transactions. The current highest deposit rate at SHB is 6.7% per year, up 35 basis points, and only applies to the 36-month term and online transactions. At Military Commercial Joint Stock Bank, the deposit rates have been adjusted up 15-24 basis points per year for several tenors, while at Eximbank, the rate for online savings of 15 months is now 6.5%, up 20 basis points from early April. Meanwhile, Vietinbank has lowered deposit rates by 30 basis points for all tenors. Three other banks, Agribank, BIDV and Vietcombank, have kept their deposit rates unchanged. Two Thu Thiem land auction winners yet to pay VND100 billion as committed By the end of May 4, the two winners of the Thu Thiem land auction had not yet paid VND100 billion (US$4.34million) as committed earlier. These two enterprises had promised to pay VND100 billion before April 30 to "show goodwill" with the desire to deploy projects on the land lots that they won in the auction. After making written requests to extend the payment time for the winning land lots and related fees, including fines for late payment, to September 2022 but were not accepted, the Dream Republic Joint Stock Company and Sheen Mega Joint Stock Company made written commitments to pay an amount of VND100 billion into the State budget before April 30 to show goodwill to continue carrying out their projects. At present, the tax authority still calculates the late payment interest at 0.03 percent per day. The late payment calculation for the first installment had been applied from February 6. And from April 7, these enterprises will be charged an additional fee for late payment for the second one. Currently, the late payment amount that these two enterprises have to pay is more than VND2.3 billion ($100,010.59) per day. Central provinces review, revoke unfinished projects of FLC Group After Sai Gon Giai Phong Newspaper reported on sluggish projects occupying thousands of hectares of land along the Central region of FLC Group, provincial authorities have been reviewing and considering revoking and reducing the area of projects with slow progress and infeasibility of this corporation. Mr. Dang Van Minh, Chairman of the People's Committee of Quang Ngai Province, said that the province withdrew all projects that had previously granted investment policies to FLC Group in Dung Quat Economic Zone and canceled two projects in Binh Son and Ly Son Island districts with an area of nearly 5,900ha. Similarly, the Department of Planning and Investment of Binh Dinh Province informed that it was directing relevant functional units to review the feasibility and investment ability of the FLC Cu Lao Xanh resort and villa complex in Quy Nhon City to make a proposal to the provincial People's Committee to revoke the project. Mr. Nguyen Trong Trang, Chief of Office of the People's Committee of Thanh Hoa Province, said that the provincial People's Committee had sent a document to assign the Management Board of Nghi Son Economic Zone and industrial zones in Thanh Hoa Province to coordinate with relevant units to implement procedures to terminate the FLC Hoang Long Industrial Park project. In Ha Tinh Province, Mr. Nguyen Van Sau, Vice Chairman of the People's Committee of Thach Ha District, said that the FLC - Ha Tinh high-tech agriculture project occupies an area of 240.44 hectares in this district. Currently, this project has no positive investment signal. Recently, the enterprise has continued asking to switch to a pig-farming project with a scale of about 60,000 heads. However, the People's Committee of Thach Ha District does not agree because it is unsuitable for the planning and greatly affects the environment. Suspect group deceiving thousands of investors proposed to be prosecuted The Office of Investigation Police Agency (under the Public Security Ministry) has just finished its additional investigation of the case ‘Nguyen Huu Tien and Accomplices Appropriated Property via Computer and Telecoms Networks, Electronic Devices’, happening in Ho Chi Minh City and other provinces, cities. Accordingly, the Supreme People’s Procuracy has received the proposal from the Office of Investigation Police Agency to prosecute Nguyen Huu Tien and his accomplices, namely Nguyen Hong Quan, Pham Viet Son, Pham Thi Phuong Thu on the act of using computer networks, telecoms networks, and electronic devices to steal property. From December 2015 to July 2018, Tien and his accomplices established two companies called Thien Rong Viet Investment JSC. and OTCMAX JSC. to attract capital from investors, even though these enterprises do not operate at all. The suspects created the websites at the addresses of thienrongviet.com and otcmax.vn to promote images, print many publications, and host various customer meetings to deliver fake information about investment projects, with a promise to pay high interest rates and lucrative commissions. They then apply the multi-level marketing model to attract money from these potential investors. The suspects were able to collect hundreds of billions of VND with the above trick. Vietnamese businesses continue strong revival The fast resumption of business and production activities during a new normal is evidence of the Government’s efforts to accelerate economic recovery. In April, a record number of 15,001 new enterprises were registered in Vietnam, surpassing the previous all-time high of 13,043 during the 2017-2021 period. The number of workforce in new businesses in April also rose by 10.7% year-on-year to 104,757, while over 7,000 companies returned to operation during the month, up 22.4%. The latest Business Climate Index (BCI) from the European Chamber of Commerce in Vietnam (EuroCham) revealed the index, which reflects the sentiment of European businesses in Vietnam, has once again reached its highest point of 73 after the fourth wave of the pandemic. Hanoi’s supporting industries welcome new investment wave HANSSIP, designed under the Japanese standard by design consultant firm Nikken Seikkei Civil for on-site production chains, covers an area of 640 hectares and is located in Hanoi's Phu Xuyen district, adjacent to National Highway 1A and National Highway 1B - Phap Van Cau Gie. At full capacity, HANSSIP could accommodate up to 2,000 enterprises and create 150,000 – 200,000 direct jobs. In late March, Japan-based Onaga, producers of aircraft components for Boeing and Airbus, held a groundbreaking ceremony for the construction of a manufacturing facility at HANSSIP. Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes |
