VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 2102:00 Wood exports recovering even in face of COVID-19 After a sharp fall due to adverse impacts of the COVID-19 pandemic, wood export revenue has seen signs of recovery since June thanks to exporters’ efforts to adapt to the situation. Statistics from the General Department of Vietnam Customs show that wood exports reached only 772 million USD in May, a year-on-year fall of over 15 percent. But in July, the figures rose to 1.05 billion USD, representing rise of 20.7 percent year on year. In the first seven months of 2020, the export of wood and furniture fetched 6.09 billion USD, up 6.2 percent over the same period last year, including 4.44 billion USD from furniture exports. The growth is attributed to higher demands and impact of the pandemic on wood sector in many countries that forces them to import the product. Meanwhile, domestic production has not been interrupted, which enables the country to maintain the sector’s supply capacity to make up the vacancy left by some countries. At the same time, the EU-Vietnam Free Trade Agreement, which has become effective since August 1, has also helped raise the competitiveness of Vietnamese wood and furniture in the EU market./. Mekong Delta’s fruit farming area to be expanded
The fruit farming area in the Mekong Delta, the largest agricultural hub in Vietnam, is set to be expanded by 150,000ha between now and 2030 to help with local agriculture’s sustainable development and adaptation to climate change. The country earned some 240 million USD from fruit and vegetable exports in July, raising the seven-month figure to 2 billion USD. The revenues respectively fell 1.8 percent and 12.3 percent from the same period last year. The Vietnam Fruit and Vegetables Association attributed the decline to the COVID-19 pandemic, which has discouraged countries’ import of these commodities. However, despites export difficulties, fruit farming is still a good source of income for farmers as its profit is about three to eight times higher than that from rice cultivation, Mekong Delta localities’ departments of agriculture and rural development noted. According to the plan to sustainably develop and adapt the region’s agriculture to climate change until 2030 with a vision to 2045, rice production will be reduced while fruit farming increased. In particular, the land under fruit trees will be expanded by 150,000ha in areas with inefficient rice cultivation to reach about 650,000ha by 2030. The Ministry of Agriculture and Rural Development said the sector will develop and put into use climate change-resistant plant varieties with high yield and quality. It will also assist local farmers to apply sustainable farming practices and cut down costs while boosting farmers and cooperatives’ connectivity with businesses./. Bac Lieu moves towards country’s shrimp production hub The Mekong Delta province of Bac Lieu is rolling out measures to turn it into a shrimp production hub of the country, said Deputy Secretary Party Committee and Chairman of the People’s Committee of the province Duong Thanh Trung. The provincial leader said that Bac Lieu aims to take the lead in high technology research and application in shrimp industry, focusing on prawn seeds and commercial shrimp production and processing. Bac Lieu expects to lure investment and resources to create momentum to promote the national shrimp industry and supporting sectors in other nearby localities and the whole country. The locality aims to produce 32-35 billion prawn fry in 2020 and about 40-45 prawn fry in 2025, with higher quality through years. In 2025, shrimp farming area will be expanded to 147,900 hectares with an expected output of 249,000 tonnes. More than 30 percent of producers and businesses, and nine farming regions with total area of 3,890 hectares are hoped to use high technology in production, while 30 percent are subjected to meet VietGAP, GlobalGAP and ASC standards. In 2020, the volume of processed shrimps is expected to reach 98,300 tonnes in 2020 and 120,000 tonnes in 2025, while the export volume is hoped to fetch 73,000 tonnes in 2020 and 90,000 tonnes in 2025. The province is working towards 100 percent of processed shrimps meeting the standards of the National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) as well as the requirements of the world and import countries. In 2025, the capacity of local shrimp processing sector is meant to reach 160,000 tonnes to take the leading position in the country in processing technology. The cost for the implementation of the scheme is 3 trillion VND (nearly 130 million USD), nearly a half of which comes from the central State budget and 34.22 percent is mobilised from local producers and businesses. According to Trung, the province will focus on attracting all resources, including mobilised and foreign-invested capital for the sector, with the focus on optimising foreign investment. Meanwhile, the province will increase investment promotion activities and enhance its provincial competitiveness index to lure more investors, he said. He added that Bac Lieu will organise investment promotion conference in local, regional and national levels. Alongside, the province will maintain and expand traditional markets of Japan, the US, the EU, China and the Republic of Korea, while exploring more markets in Asia, East Europe, Africa, and South America. The locality will strengthen the capacity in market forecasting and update requirements in import market to support local producers, said Trung. He said that Bac Lieu will consider the direct supply of shrimp to retail system in import countries instead of through importers, while encouraging and supporting local businesses to register their brand names and promote their products in association with the promotion of Bac Lieu shrimp trademark. At the same time, Bac Lieu will focus on training high quality human resources for the sector, including high technology officials who involve in fisheries sector management. Workers for high technology production in shrimp industry will also be trained, focusing on shrimp fry production, commercial shrimp farming, and shrimp processing. Personnel in market forecasting and promotion will also be trained. The province will also promote the transfer of high technology through fishery production companies and processors in the locality. Bac Lieu will attract high-tech human resources with deep understanding on market and economic management to engage in production, while giving preferential policies to lure high-profile researchers, engineers and managers serving the production, exploitation, processing and exporting of aquatic products, stated Trung./ Specific support packages needed for disadvantaged labour groups The General Statistics Office (GSO) has urged designing specific support packages for disadvantaged labour groups in the context of 57.3 percent of labourers from 15 years old and above seeing their income reduce under the COVID-19 pandemic’s impact. Those groups are women and workers without training. The agency said it is necessary to push forward with the implementation of support policies targeting enterprises and other business and production establishments, particularly those operating in sectors hard hit by COVID-19 such as processing and manufacturing, wholesale and retail, accommodation and catering services, and transport. According to the GSO, the State should make policies to encourage labourers to learn new knowledge and skills to meet employers’ requirements in the “new normal” state, while helping employers provide training to workers and apply new technologies. The COVID-19 pandemic has impacted employment and jobs of 30.8 million people of the working age, with women, workers without training and those working in the informal sectors being the hardest hit. The Government has issued several policies to ease difficulties for both employers and labourers, including Resolution 42/NQ-CP dated April 9, 2020 on measures to support people affected by COVID-19. Under Resolution 42, a 62 trillion VND support package has been launched. As of the end of June, more than 11.3 trillion VND had been distributed to 11.2 million beneficiaries./. Philippine economy to fall 9.2 percent in H2: ANZ Research ANZ Research predicts that the Philippine economy will fall 9.2 percent in the second half of 2020 as the economy is likely to book a double-digit contraction in the third quarter due to the coronavirus pandemic. ANZ Research expects the Philippines’ GDP would contract by 11.5 percent in the third quarter and by 7.1 percent in the fourth quarter. Kanika Bhatnagar, economist at ANZ Research, said as a result, the economy is now expected to contract by 9.1 percent this year, a reversal of the six percent growth in 2019. The economy stalled after Luzon was placed under enhanced community quarantine in the middle of March. The lockdown was relaxed as the National Capital Region (NCR) shifted to general community quarantine in June. However, Metro Manila and nearby provinces reverted to stricter modified enhanced community quarantine from August 4 to 18 as COVID-19 cases surged. The economist also cited the unprecedented fall in remittances due to the repatriation of overseas Filipino workers, a surge in unemployment rate to a record 17.7 percent as well as slow fiscal delivery. In addition, Bhatnagar noted the limited efficacy of monetary policy even if the Philippines’ central bank (BSP) slashed interest rates by a cumulative 175 basis points to a record low of 2.25 percent so far this year and lowered the reserve requirement ratio./. Thailand’s cross-border trade drops in H1 Thailand's cross-border trade fell by 9.18 percent year-on-year in the first half of 2020 due to lockdown measures and the slowing economies of neighbouring countries. The Foreign Trade Department reported overall cross-border trade, including transit trade, totalled 627 billion baht (over 20 billion USD) in January-June, with Malaysia the biggest partner by value. Of the total figures, exports were estimated at 365 billion baht, down 8.6 percent year-on-year, while imports shrank by 9.98 percent to 262 billion baht. Border trade with four neighbouring countries, namely Malaysia, Laos, Myanmar and Cambodia, amounted to 370 billion baht, down 13.7 percent year-on-year. Of the total, exports stood at 219 billion baht, down 11.9 percent. Transit trade, mainly with Singapore, Vietnam and southern China, fell 1.7 percent in the six-month period to 257 billion baht./. Indonesia adjusts GDP growth goal for 2020 Indonesian Minister of Finance Sri Mulyani Indrawati recently adjusted the country’s GDP growth goal for 2020 down to -0.2 to -1.1 percent from the previous 2.3 percent, and 4.5 to 5.5 percent for the next year. Speaking at an online press conference, she added that to cushion the negative impact of the COVID-19 pandemic on the economy, her government has been implementing special policies aimed at maintaining and restoring the heathcare sector, and improving the socio-economic conditions for the people and enterprises. Accordingly, the national economic restoration programme will be implemented to halt the economic fall and revive demands such as consumption, investment and export, as well as increase the supply. Those steps are expected to have positive impact on the economic growth in the last two quarters of the year. The minister added that the fiscal policy through the tools of state budget will continue its important role in keeping the economy from the danger of further decrease in the rest of the year as well as in the next year. Besides, the Indonesian government will continue disbursing 356.2 trillion rupiah (24.3 billion USD) to packages aimed at reviving the national economy./. COVID-19 pandemic causes disproportionate impacts on youth employment The COVID-19 pandemic has triggered a massive disruption of economies and labour markets with disproportionate impacts on youth employment in Asia and the Pacific, said a new report by the International Labour Organization (ILO) and Asian Development Bank (ADB). According to the report, young people’s employment prospects in Asia and the Pacific are severely challenged as a result of the pandemic. Youth (15–24 years) will be hit harder than adults in the immediate crisis and also risk bearing higher longer-term economic and social costs. Through the report, ILO and ADB call on governments in the region to adopt urgent, large-scale and targeted measures to generate jobs for youth, keep education and training on track, and to minimize future scarring of more than 660 million young people in the region. “The pre-crisis challenges for youth are now amplified since COVID-19 hit. Without sufficient attention, our fear is that this risks creating a ‘lockdown generation’ that could feel the weight of this crisis for many years to come,” says Sara Elder, a lead author of the report and Head of the ILO Regional Economic and Social Analysis unit. The report cites three ways in which young people are affected in the current crisis: (1) job disruptions in the form of reduced working hours and earnings, and job losses for both paid workers and the self-employed; (2) disruptions in their education and training; and (3) difficulties in transitioning from school to work, and moving between jobs in a recession. Youth unemployment rates in the region increased sharply in the first quarter of 2020 from the last quarter of 2019. Compared to the first quarter of 2019, the youth unemployment rate increased in six of the nine economies with available data: Australia, Indonesia, Japan, Malaysia, and Viet Nam, as well as in Hong Kong, China, which showed the largest increase of 3 percentage points. In all these economies, youth rates increased more than adult rates. Between 10 and 15 million youth jobs (full-time equivalent) may be lost across 13 countries in Asia and the Pacific in 2020, according to the report’s projections. In Cambodia, Fiji, Nepal, Pakistan, the Philippines and Thailand, youth unemployment rates are expected to reach at least double the 2019 estimates. According to the report, one of the reasons young people in the region face greater labour market disruption and job losses than adults is that nearly half of them (more than 100 million) were employed in the four sectors hardest hit by the crisis: the wholesale and retail trade and repair; manufacturing; rental and business services; and accommodation and food services. Young women are overrepresented in three of the four most affected sectors, particularly in accommodation and food services. Compounded by the forced suspension of education and training, the COVID-19 crisis will affect young people’s transitions to and within labour markets, and could result in scarring effects, as seen in previous crises, says the report. The report recommends urgent, large-scale and targeted responses, including youth-targeted wage subsidies and public employment programmes, and measures to mitigate the impact on students of the disruption to their education and training. Governments should consider balancing (i) the inclusion of youth in wider labour market and economic recovery measures, with (ii) youth-targeted interventions to maximize effective allocation of resources. “Prioritizing youth employment in the COVID-19 recovery process will improve Asia and the Pacific’s future prospects for inclusive and sustainable growth, demographic transition and social stability,’’ says Chris Morris, Head of the ADB NGO and Civil Society Center, and leading ADB’s Youth for Asia initiative./. Malaysia’s fishing industry faces foreign labour shortage The Malaysian government’s suspension on hiring foreign labourers has left the fishing sector in the country severely understaffed, with fishermen facing a tough future, according to the Malaysian Insight. Malaysia Fish Industry General Association president Chia Tian Hee cited that about 70 percent of fishing boats are idle at the Perlis, Kedah, Pantai Remis, Pangkor and Bagan Panchor jetties, which together supply some 50 percent of Malaysia’s fish. “Fortunately, the yield was great during the movement-control order, so there was no seafood shortage. But, we estimate that by year-end, supply will no longer be able to meet demand, and seafood prices will spike as a result,” Chia said./. Priority given to dragon fruit exports through Lao Cai border gate The management board of the Lao Cai Economic Zone has instructed the local authorised agencies to give priority to the export of dragon fruit through Kim Thanh Border Gate to minimise wasted time and ensure the quality and value of the fruit. The main harvest season of dragon fruit has begun in central and southern provinces in Vietnam with increasing volume of the fruit transported to Kim Thanh Border Gate in the northern province of Lao Cai to ship to China. Ha Duc Thuan, vice chairman of the management board of the Lao Cai Economic Zone, said that an average of 150 container trucks carrying dragon fruits with an estimated volume of 3,000 tonnes travel through Kim Thanh Border Gate each day to transport the fruit to China. Relevant forces including the customs agency, border guard, and plant quarantine and medical quarantine forces are working together to conduct both customs clearance, security checks and quarantine procedures at the border gate to ensure both the prevention of the COVID-19 pandemic and the acceleration of customs clearance for fresh dragon fruit. Because the Chinese side has implemented strict anti-COVID-19 measures and strict border trade procedures for Vietnamese dragon fruit, the clearance time has been extended, resulting in a reduction in the amount of cleared goods. Thus, the management board of the Lao Cai Economic Zone proactively arranged two parking areas to gather trucks carrying fresh fruit and have upgraded the warehouses of local logistics companies to facilitate the gathering of trucks carrying dragon fruit. Tran Anh Tu, Deputy Director of the Customs Division at the Lao Cai border gate, said that the import-export revenue through the border gate since early this year has reached 73% of the figure from the same period last year, of which, the export revenue measured 62% of that from the same period last year. Approximately 355,000 tonnes of dragon fruit have been exported through the border gate, equivalent to 72% of the volume from the same period in 2019, Tu noted./. Thai economy sees biggest contraction in more than 20 years The Thai economy contracted the most in more than two decades due to impact of the COVID-19 pandemic. The National Economic and Social Development Council announced on August 17 that the country’s GDP dropped by 12.2 percent from a year ago – the biggest decline since the Asian financial crisis in 1998. The figure, however, is lower than an estimate of a 13 percent contraction in a Bloomberg survey of economists. The second-quarter unemployment rate was at 1.95 percent, and an additional 1.8 million workers may be at risk of losing their jobs. Thailand has to date reported 3,377 COVID-19 cases, including 58 fatalities. The country has resumed economic activities since August 13./. Seafood exports increase after EVFTA comes into effect The Vietnam Association of Seafood Exporters and Producers (VASEP) has said that seafood exports to Europe have seen many positive signs since the EU-Vietnam Free Trade Agreement (EVFTA) came into effect at the beginning of this month. The number of orders in the European market alone since the beginning of this month has increased by about 10 percent compared to last month, specifically, for shrimp and squid. Online newspaper VietQ reported that Tran Van Linh, Chairman of the Board of Directors of Thuan Phuoc Seafood and Trading Corporation, said the company had exported 3,000 tonnes of shrimp and products made from shrimp to EU with a value of about 31 million USD, a year-on-year increase of 8 percent in volume and 6 percent in value respectively over the same period last year. Nguyen Thi Anh, Director of Ngoc Xuan Seafood Corporation, shared EU customers had started negotiating orders with the corporation again recently. Although it had not increased strongly, this was a positive signal for businesses to recover after a long delay and contract cancellation, said Anh. Assessing the initial results since the EVFTA's implementation, Truong Dinh Hoe, Secretary-General of VASEP, said the association expected the EVFTA would help seafood exports grow by about 20 percent in the EU, however, in the current pandemic context, an increase of 10 percent was encouraging. Regarding future prospects in the EU, Hoe said the growth rate could not be fully forecast as European countries were still facing the pandemic. As for the issue of removing the yellow card for illegal, unreported and unregulated fishing, localities are implementing many measures to combat illegal fishing, while enhancing the control and supervision of the installation of monitoring equipment on fishing cruises and having strict sanctions for violations of the use of positioning equipment. The EVFTA took effect from August 1 and many key products of Vietnam will benefit from this agreement. Vietnam has advantages in producing and exporting agricultural, forestry and aquatic products while the EU has a great demand for these items with import value accounting for 8.4 percent of the region's total annual import value. Therefore, room for growth in exports to the EU remains huge. Vietnamese businesses can access a huge seafood consumption market with an average consumption of 22.03 kilogrammes per person, 5.34 kilogrammes higher than the world average./. Nearly 60 percent of Singaporean firms need 1-2 years to recover Almost 60 percent of Singaporean companies said it will take them one to two years to recover to pre-pandemic levels, even when they seek new sources of revenue and speed up technological adoption. According to a survey recently announced by the Singapore Chinese Chamber of Commerce and Industry (SCCCI), 80 percent of respondents said their revenues were hit while 76 percent saw profit margins decline. Additionally, they also faced challenges related to financing and cash flows, rising business costs and uncertain economic and political conditions overseas. The poll done in June and July gathered responses from 1,020 companies, 95 percent of which are small and medium-sized enterprises. On August 17, Singaporean Deputy Prime Minister and Finance Minister Heng Swee Keat announced support measures amounting to 8 billion SGD (5.84 billion USD), which includes an extension to the wage subsidy scheme for Singaporeans until the first quarter of next year. The Singaporean economy is predicted to contract by 5-7 percent this year./. Tax officials reduce inspections to help businesses amid COVID-19 After collecting 11.6 million USD from violations since early 2020, the General Department of Taxation (GDT) said it would reduce regular tax checks at businesses to help them focus on production to overcome the COVID-19 pandemic. The GDT said it had collected more than 269 billion VND (11.6 million USD) from their recent inspections and examinations of 104 enterprises across the country. According to the tax officials, most of the violations were found in associated transactions and value added tax refunds. Although the inspection and examination work was still a concern, due to the difficulties amid the current COVID-19 pandemic, the GDT has instructed its tax departments to suspend planned inspections and examinations of many businesses. A representative of GDT said: “To help reduce procedures, the tax department has stepped up inspections at the tax office instead of checking at places of business. Only when there are signs of tax risks, inspections and examinations will be conducted at the enterprise's headquarters.” The report by the general department showed that as of July 15, 2020, the entire taxation sector has carried out 32,851 inspections, reaching 35.53 percent of the yearly plan and about 82.69 percent compared to the same period in 2019. The total amount collected was nearly 30.4 trillion VND and the total amount of tax paid to the state budget is more than 5.1 billion VND. According to HCM City’s Tax Department, as of July 31, 2020, there were more than 28,000 businesses, organisations and nearly 24,500 business households and individuals that are subject to extensions of the tax payment time limit and land rent with a total tax of 8.8 trillion VND. Of which, the value of added tax proposed for extension was 4.4 trillion VND, the corporate income tax proposed for extension was estimated at 3.55 trillion VND, the land rent proposed for extension was 684 billion VND, and for business households it was 166 billion VND. HCM City’s Tax Department said many firms faced the double influence of COVID-19 and recent decree No 100 that clamped down on drunk driving in Vietnam. In the first seven months of the year, the tax revenues on domestic and imported beer and wine, which accounted for more than 51 percent of the revenue of special consumption tax, was down nearly 15 percent, or more than 1 trillion VND over the same period. In the same period, the total special consumption tax collected decreased by nearly 11 percent from the same period last year. The city tax office also said it had been minimising the number of inspections and examinations at businesses affected to help them focus on their production and business activities./. Viet Nam and Denmark co-operate in pushing forward energy saving efforts The Vietnamese Ministry of Industry and Trade (MoIT) has issued the Guidelines for Developing Provincial Action Plan on Energy Efficiency for the 2020-25 period. The guidelines, drafted with the support of the Danish-Vietnamese Energy Partnership Programme, will help all 63 provinces and cities of Việt Nam to map energy use and prepare their own action plan to implement energy saving efforts. This set of guidelines is one of the key outputs of the Danish-Vietnamese Energy Partnership Programme as it provides an essential base for the energy efficiency efforts in Việt Nam towards the target of achieving 5-7 per cent energy savings on a national level in the 2019-25 period. The set of guidelines is a result of more than two years of close work between MoIT, the Danish Energy Agency and the two partner provinces of Đồng Nai and Bắc Giang. “The MoIT highly appreciates the Danish government’s support to Việt Nam in the energy sector. The set of guidelines for developing provincial action plans on energy efficiency is an important deliverable of the Danish-Vietnamese Energy Partnership Programme and will serve as one of the valuable tools for Việt Nam in our efforts to achieve the national energy efficiency targets,” said Hoàng Quốc Vượng, Deputy Minister of MoIT. “The Government of Việt Nam has on many occasions shown its strong commitment to green development. The Government’s decision to adopt a cost-effective energy pathway, in my opinion, is very wise and encouraging since energy efficiency plays a key role in the green transition of any country. I am delighted to see that the good cooperation between Danish and Vietnamese experts in the Danish-Vietnamese Energy Partnership Programme has yielded strong outputs and partly contributed to Việt Nam’s realisation of its national targets on energy saving and consequently reduction of greenhouse gases,” said Kim Højlund Christensen, Ambassador of Denmark in Việt Nam. Another important component of the Danish-Vietnamese Energy Partnership is the release of the biennial ‘Việt Nam Energy Outlook’ report. The report emphasises energy efficiency as a cost-efficient tool for Việt Nam’s green transition towards 2030 and 2050 and recommends investments in energy saving technology. Việt Nam’s industrial sector is one of the most energy consuming sectors of the country and is, therefore, an important factor in the transition to a low-carbon society. Calculations show that if existing legislation is enforced, the sector could save at least 8 per cent of its current annual energy consumption by 2025. With new methods, tools and incentives based on Danish experiences, the saving rate could even be higher. Việt Nam has experienced a significant increase in energy consumption, especially power consumption with an annual growth rate of about 9-10 per cent in this decade. According to the revised National Power Development Plan 7 approved by the Government of Việt Nam, the total national energy consumption, especially fossil fuel consumption, will increase rapidly in the coming period in order to meet the country’s high economic growth. Meanwhile, the Government is committed to the Paris Agreement and aims to ensure sustainable development to protect the climate and the environment./. Three MoIT projects to be removed from loss-making list Progress has been reported in three of 12 loss-making projects under the management of the Ministry of Industry and Trade (MOIT) more than a year after the Government’s steering committee on loss-making projects implemented comprehensive solutions. Deputy Prime Minister Truong Hoa Binh, head of the steering committee, who chaired the 11th session in Ha Noi yesterday said they would report to the PM to remove three of the 12 projects from the list in August. With better operations, DAP Fertiliser 1 Hai Phong, Binh Phuoc Ethanol and Phu Tho Ethanol were considered to be removed from the list of loss-making projects of the ministry. Speaking to representatives of related ministries, the Central Economic Committee, the Economic Committee of the National Assembly, and the State Capital Management Committee at enterprises and leaders of corporations, Binh said the hard work isn't over. “There is much work to do to solve all the problems in the projects that went behind the progress at the deadline in the first half of 2021," he said. He asked all ministries, branches, businesses and banks to uphold their responsibilities and to make more drastic efforts to speed up the handling of those projects. “Solutions for the projects must be feasible on the principle that enterprises and investors must be proactive and responsible for handling them according to the market while the State won’t allocate more capital to the projects," Binh added. Binh told the corporations of the projects to take comprehensive responsibility for handling their projects while ensuring compliance with regulations. He also told the State Capital Management Committee at enterprises to perform the supervisory function of the owner's representative agency for the corporations with such projects or enterprises in accordance with the law. The deputy PM asked investors and corporations of five projects with disputes regarding engineering, procurement and construction contracts to handle clear solutions to report to Prime Minister Nguyen Xuan Phuc this month, adding that the reports would be the basis for the committee to restructure, sell capital and divest from the projects and the relating corporations as well as to clarify and handle violations for related organisations and individuals. Binh also told ministries and agencies to hire independent consultants to have an objective assessment of the project value of projects that have not yet finalised the EPC contracts. According to the MoIT, the total initial investment of the 12 projects was VND43.6 trillion then they were approved to increase to VND63.6 trillion./. Central bank grants licence for payment intermediary services provider 9Pay The State Bank of Viet Nam has licensed 9Pay Joint Stock Company to provide payment intermediary services. Under the licence, 9Pay can provide electronic payment gateway, authorised collection, payment and e-wallet services. The licence is valid for 10 years. 9Pay was founded on September 6, 2018, and is headquartered at No 34, Nguyen Khanh Toan Street, Ha Noi. As of August 6, the central bank had granted licences for 36 non-bank payment intermediary services companies. Cashless payments are developing rapidly in Viet Nam, especially amidst the COVID-19 pandemic. Under its banking development strategy, Viet Nam plans to reduce the proportion of cash payments from 10 per cent in 2020 to less than 8 per cent in 2025. The central bank is also studying mechanisms for developing a regulatory sandbox for financial technology./. RCEP to be signed soon: Indonesian trade ministry The Regional Comprehensive Economic Partnership (RCEP) has entered the legal scrubbing phase and is expected to be signed soon without India, according to the Indonesian Trade Ministry. Deputy Trade Minister Jerry Sambuaga said the participating countries now comprise the 10 ASEAN member states, China, Japan, the Republic of Korea, Australia and New Zealand, but the door is still open for India in case it decides to join the negotiations again. India withdrew from RCEP negotiations in November last year, he said. India is Indonesia's fifth-largest export market. According to data from the United Nations International Trade Statistics Database, Indonesia’s top export to its South Asian peer is coal, with value reaching 4.81 billion USD in 2019./. Indonesia to provide microloans for laid-off workers, housewives The Indonesian Government has unveiled a new microcredit program (KUR) for laid-off workers and housewives who own micro-sized businesses to help them recover from the impacts of the COVID-19 pandemic. According to the Coordinating Economic Ministry’s deputy for macroeconomic and finance, Iskandar Simorangkir, the government aimed to disburse supermicro KUR loans worth 12 trillion Rp (814 million USD) to 3 million people by the end of this year. He said at a virtual press briefing that he expects this programmes, which will be launched by the end of August, can help laid-off workers and housewives build their micro-sized productive businesses. The latest data from the Indonesian Manpower Ministry shows that as many as 2.15 million workers have been affected by the COVID-19 pandemic. The National Development Planning Agency (Bappenas) projects unemployment rate to reach between 8.19 percent and 9.2 percent this year, significantly higher than 2019’s figure of 5.28 percent. Iskandar further explained that the programme would cater to laid-off workers and housewives who have had a running business for at least three to six months and have never received KUR loans before. Although the programme is aimed at helping those affected by COVID-19, the government plans to continue the programme after the pandemic to encourage entrepreneurship, which is expected to contribute to the country’s welfare and economic growth, he said. The Coordinating Economic Affairs Ministry’s data shows that KUR loan disbursement reached 89.2 trillion Rp for 2.67 million debtors as of July. The Indonesian Government has raised the KUR loan disbursement ceiling for this year to 198.73 trillion Rp from the previous 176.53 trillion Rp./. Agriculture ministry vows to ensure progress, quality of public capital disbursement Deputy Prime Minister Trinh Dinh Dung held a meeting with the Ministry of Agriculture and Rural Development (MARD) in Hanoi on August 19 to examine public investment disbursement in the agriculture sector. The ministry has been assigned to allocate over 17.32 trillion VND (749.9 million USD) in funds this year, including 1.8 trillion VND in foreign capital the ministry returned to the State as it is unable to disburse it. The sum also includes 9.9 trillion VND sourced from Government bonds, with about 8 trillion VND for construction and another 1.88 trillion VND for site clearance compensation. Though the greatest challenge facing construction is site clearance, the MARD has accelerated and completed many planned projects, it said, and affirmed it will disburse all of the funding for construction in 2020. It was also tasked with allocating 2.1 trillion VND for compensation and resettlement this year, but 223 billion VND has been transferred to fund construction due to slow capital disbursement for site clearance. Regarding projects funded through official development assistance (ODA), the ministry was given more than 3.6 trillion VND to disburse this year but actual needs are just 1.83 trillion VND. Given this, the MARD and the Ministry of Planning and Investment proposed the Prime Minister transfer the remaining capital to other sectors. As of the end of July, the MARD had disbursed 36.6 percent of all public funding sources and expects the rate to reach 94.1 percent for the year as a whole. Deputy PM Dung said the agriculture sector has many important projects in the pipeline and the disbursement of public investment is critical in developing agricultural infrastructure, which in turn creates conditions for attracting more investment to the sector and improving productivity and product quality. He asked the MARD to work with other ministries and sectors to remove obstacles facing project implementation, including in regard to site clearance and construction, while ensuring project progress and quality and preventing waste. He also suggested the MARD and other ministries build investment plans for important facilities like those regulating saltwater and freshwater in the Mekong Delta, wharves for fishing boats, reinforcement of reservoirs and dams, and natural disaster prevention efforts. Minister of Agriculture and Rural Development Nguyen Xuan Cuong said the progress and the efficiency of public investment disbursement are both important, noting that the building of saltwater control facilities in the Mekong Delta has been sped up to help mitigate the severe drought and saline intrusion seen earlier this year. He pledged that the ministry would work hard to ensure the progress and the quality of projects funded with public capital./. Imports of automobiles rise in July The import of automobiles increased significantly in July despite impacts caused by the second wave of COVID-19 in Vietnam. A report from the General Department of Customs showed that Vietnam imported 4,760 cars of various kinds worth 107.7 million USD in July, marking increases of 34 percent in volume and 10 percent in value compared with the previous month. Thailand and Indonesia are the two main import markets of Vietnam, accounting for 76 percent of the country's total imported cars in the month. Cars imported from Indonesia have the lowest prices in the market at about 250 million VND (10,713 USD) each on average, while cars imported from Thailand are priced at least 377 million VND each. Thailand continued to top the list with more than 2,300 cars exported to Vietnam, up 33.3 percent month-on-month, reaching nearly 38 million USD. It is followed by Indonesia with 1,300 cars, an increase of 664 vehicles (100.04 percent) compared to June, gaining more than 14 million USD. Other import markets include China with 719 vehicles, turnover of 27.2 million USD, the Republic of Korea with 121 units valued at 8.66 million USD, and Japan with 80 cars worth nearly 3.4 million USD. In July, Vietnam imported auto parts for locally-assembled production and spare parts worth 346.8 million USD, marking a sharp increase from 279 million USD in June. Major import markets include the Republic of Korea, China and Thailand./. Source: VNA/VNS/VNN/VIR/VOV/SGT/Dtinews |
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VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 2201:20 Rice exporters urged to promote brand through safe production
The golden time for Vietnam to promote its rice brand will come once the country is able to promptly expand production of ST25 rice in line with a safe process, according to rice exporters. Opportunities will be opened up for Vietnamese rice to further access the European market as the EU-Vietnam Free Trade Agreement (EVFTA) became effective at the beginning of August. The rice variety ST25 won the first prize in the 2019 World’s Best Rice Contest and is favoured by domestic consumers. Major rice exporters from the Mekong Delta are striving to meet demands of stringent markets. The export price of Vietnamese five-percent broken rice currently hits its peak in the past 10 years, standing at 473-477 USD per tonne, announced the Vietnam Food Association on August 18. This is also the first time that the price of Vietnamese five-percent broken rice has been higher than that of Thailand. Vietnam exported 3.9 million tonnes of rice in the first seven months of this year, earning 1.9 billion USD, according to the Department of Agro Processing and Market Development under the Ministry of Agriculture and Rural Development. The export volume fell 1.4 percent but the value increased by 10.9 percent over the same period last year./. Virtual exhibitions a new direction for wood industry during COVID-19 COVID-19 has limited all exhibitions and international trade shows and made export activities that much harder. The idea of using virtual exhibitions on 2D and 3D platforms, however, has already proven to be a lifesaver for many businesses, especially those in the wood industry. Revenue at this business has fallen more than 60% due to the impact of COVID-19. Though it switched to online sales, volumes have remained modest. After experimenting with virtual exhibitions, business has begun to head in a more positive direction, with a large number of international customers taking an interest in its products. Many businesses, especially those in furniture, have already applied the solution and seen positive results. Some 50 wooden product enterprises in Ho Chi Minh City have opened showrooms online, posting 2D and 3D images for potential partners to browse through. International wooden furniture fairs in Vietnam attract hundreds of thousands of visitors each year and valuable contracts are signed. By digitising exhibitions and product introductions, businesses can still promote new products without having to meet customers directly. Customer interest in specific product lines can also be measured, in order to adjust production if necessary. Wooden product exports reached over 5 billion USD in the first half of this year, up 6% against the first half of last year but down on expectations. The introduction of virtual exhibitions is just one solution in achieving the export target of 12.5 billion USD for this year, and is also a trend in global trade helping businesses negate the effects of COVID-19./. Work starts on over-215-million-USD bridge in Mekong Delta The Ministry of Transport and the People’s Committees of the Mekong Delta provinces of Vinh Long and Tien Giang held a ceremony on August 19 to commence the construction of the My Thuan 2 bridge with a total investment of over 5 trillion VND (215.6 million USD). Located 350m upstream of the existing My Thuan bridge, the My Thuan 2 bridge will start from the An Thai Trung intersection with the Trung Luong-My Thuan Expressway in Tien Giang province’s Cai Be district and end at an intersection with National Highway 80, on the My Thuan-Can Tho Expressway in Vinh Long city. The project has a total length of 6.6km including 4.7km of approach roads and nearly 2km of the main bridge with six lanes. Investment for the project is sourced from the State budget and the bridge is expected to connect the two expressways of Trung Luong – My Thuan and My Thuan - Can Tho in order to form a complete traffic network from Ho Chi Minh City to the Mekong Delta city of Can Tho city. The project is scheduled to complete in 2023./. Vietnam, Thailand enhance cooperation in animal health, sanitary measures Thailand’s Ministry of Agriculture and Cooperatives has suggested that the country and Vietnam set up a bilateral cooperation mechanism in animal health. With rotating annual meetings, such a mechanism would allow for the sharing of experience in disease management, prevention, and fighting as well as sanitary measures. The idea was put forward during a working session between representatives from the Embassy of Vietnam in Thailand and the Department of Livestock Development (DLD) at the Thai ministry on August 18 in Bangkok. As demand in Vietnam for live pig imports from Thailand increases to satisfy domestic demand, Vietnamese authorities are calling on their Thai counterparts to devise policies to stabilise export volumes and prices. They also requested relevant Thai agencies revise and strictly examine animal health conditions and breeding procedures before exporting to Vietnam. The Vietnamese side also asked the DLD to arrange for inspections of certain farms sending pigs to Vietnam after mid-September, which a delegation from the Vietnamese Embassy will join and then report to the Ministry of Agriculture and Rural Development. DLD representatives agreed on the suggestions from the Vietnamese Embassy, adding that Thai authorities would work with the embassy on the establishment of a bilateral cooperation mechanism shortly. Thailand exported more than 100,000 live pigs worth 781.8 million THB (24.7 million USD) to Vietnam between June 12 and August 13. Fifteen Thai businesses have met requirements for such exports, with nine having done so already./. Nearly 60 percent of Singaporean firms need 1-2 years to recover Almost 60 percent of Singaporean companies said it will take them one to two years to recover to pre-pandemic levels, even when they seek new sources of revenue and speed up technological adoption. According to a survey recently announced by the Singapore Chinese Chamber of Commerce and Industry (SCCCI), 80 percent of respondents said their revenues were hit while 76 percent saw profit margins decline. Additionally, they also faced challenges related to financing and cash flows, rising business costs and uncertain economic and political conditions overseas. The poll done in June and July gathered responses from 1,020 companies, 95 percent of which are small and medium-sized enterprises. On August 17, Singaporean Deputy Prime Minister and Finance Minister Heng Swee Keat announced support measures amounting to 8 billion SGD (5.84 billion USD), which includes an extension to the wage subsidy scheme for Singaporeans until the first quarter of next year. The Singaporean economy is predicted to contract by 5-7 percent this year./. Vietnam passes Bangladesh in textile and garment exports Vietnam has surpassed Bangladesh in terms of textile and garment exports over the first six months of the year, with the former’s total export value of over US$13 billion, US$1 billion more than the latter’s. Despite the negative impact caused by the COVID-19 pandemic, the country has successfully beaten Bangladesh to become the world’s second largest textile and garment exporter, behind only China. According to the Bangladesh Export Promotion Bureau, the South Asian nation raked in US$11.92 billion from exporting ready-made garment products over the first half of the year, while the Vietnam figure was about US$13.18 billion. Despite Vietnamese textile and garment exports enduring a drop of 12.1% in the seven-month period, the country still earned a total of US$16.2 billion. In response to these figures, Bangladeshi garment exporters explained that the COVID-19 pandemic has forced them to lag behind their Vietnamese rivals. Mohammad Hatem, vice president of Bangladesh Knitwear Manufacturers and Exporters Association, said Bangladesh’s textile and garment industry plummeted throughout March to May, as production activities and supply chains were interrupted by the COVID-19. "Meanwhile, Vietnam’s production activities were not much affected because the country has controlled the spread of the virus”, Hatem added. Most notably, Bangladeshi textile and garment exports fell by 20.14% to US$2.25 billion in March, before suffering a further 85.25% drop to US$375 million in April. Indeed, these declines mark the most significant decreases in the history of exports from the South Asian nation. Moving into May, Bangladeshi export earnings witnessed an improvement, reaching US$1.23 billion, but marking a 62% decline from the start of the year. Following this, June saw their textile and garment exports show signs of recovery, reaching US$2.24 billion. The January-June period has seen Vietnamese firms not suspend production, something that has occurred in both China and Bangladesh. As a result, the market share of local textile and garments being shipped to the United States and the EU has increased. A representative from the Vietnam Textile and Apparel Association said that in comparison to the overall falls of the textile and garment industry worldwide, Vietnam only recorded a small decline of between 12% and 14%. Simultaneously, Bangladesh and India’s exports were hit by a drop of 23% during the first six months of the year. Despite this, the Vietnamese textile and garment industry still faces an array of challenges as the COVID-19 is still significantly affecting global exports./. Transport Ministry okays Long Thanh expressway expansion The Ministry of Transport has approved a Đồng Nai Province proposal to widen the HCM City - Long Thành expressway to 10 lanes from its current four. Minister of Transport Nguyễn Văn Thể has ordered the Cửu Long Corporation for Investment Development and Project Management of Infrastructure (Cửu Long Corporation) to submit a pre-feasibility report for the proposal by the fourth quarter. The widening of the 24km section from HCM City’s District 2 to Long Thành Town in Đồng Nai will be done in 2021-30 period, according to the ministry. Thể said the Department of Planning and Investment would advise on how to source capital for the work. He also urged the department to study about construction of elevated roads, light rail and transit bus stations to connect the city with the proposed Long Thành International Airport in Đồng Nai. The province has said the expansion work is urgent since the expressway is “a key transport route connecting the proposed Long Thành International Airport.” Traffic congestion has become routine on both the expressway and the section of Highway No. 51 to HCM City during peak hours and holidays, it said. The spots most often gridlocked are Long Phước and Dầu Giây stations, branch D of Highway No. 50, inner roads connecting Highway 51, and Mai Chí Thọ and Võ Chí Công streets. The widening will ease congestion when the airport opens in 2025. The Cửu Long Corporation has recommended widening to eight lanes at a cost of VNĐ9.8 trillion (US$422.36 million) from 2025 and to 10 lanes starting in 2040. The 55km expressway was built five years ago, shortening travel from HCM City to south-eastern provinces to 20 minutes from the earlier 60 and to Vũng Tàu to a little more than an hour. But drivers have been complaining about the slow speed of traffic on the road, and the expressway management has to frequently warn people to take other routes. According to the Việt Nam Expressway Services Engineering Joint Stock Company, which manages it, the traffic volume was 10 million vehicles in 2015 and 16.5 million last year. It now handles 52,000 vehicles daily (rising to 60,000 on holidays and Lunar New Year) though its designed capacity is only 44,000, the company said./. Organic farming helps small businesses grow As the demand for healthy food increases, one farmer in the central province of Phú Yên has decided to go organic. And the switch has not only helped him to reap the rewards, but also benefited other farmers in his region. Trần Ngọc Phú, 47, left his home town in Hương Điền District, Thừa Thiên-Huế Province more than 30 years ago. He decided to better his prospects by moving to Ea Bar Commune - a mountainous area of Phú Yên. Once he arrived he began working on rubber plantation, and continued to do so until 2017 when the company dissolved. Faced with a tough decision of what to do next, Phú decided to start his own business. “It was a really a difficult time for me as I did not know where to start,” he said. “After a lot of research on the internet, I found that people paid more and more attention what they were eating and they were willing to pay more for clean and healthy products.” That was Phú’s eureka moment but he wanted to be sure he had the sufficient knowledge to make his business a success. He travelled to Hà Nội to study at the Việt Nam Agriculture Institute and also visited organic farms in Bình Phước and Đắk Lắk to gather as much information as he could. Knowledge collected, Phú began his enterprise, growing durian, sacha inchi and passion fruit on his four-ha orchard without using any herbicides. He used natural products like fermented fish and fruit peel to protect his trees and animal waste and coffee pods to make fertiliser. It wasn’t always plain sailing, and Phú made many mistakes along the way. He added: “With little experience and understanding when first applying organic farming, I failed many times, then I tried again and again.” Creating suitable organic fertiliser made from fermented small fish, fruit peels and probiotics was one such headache and he had to study the characteristics of soil and trees. Over and over he had to try and find the right combinations, and some fellow farmers questioned the direction he was heading. “Organic farming was very strange to many farmers in my locality at that time. They were sceptical to my farming method and did not think that I would succeed,” Phú said. But they soon changed their ways of think when they realised Phú was turning a healthy profit. In 2018, Phú earned VNĐ20 million from 100 passion fruit trees and VĐ150 million from growing sacha inchi and rubber together. What impressed them more is that Phú’s three-year-old durian garden was disease free and producing healthy fruit. According to Phú, there are three main factors that make organic farming models successful. First, as no chemical is used in the model, products’ prices are higher than other products but consumers will still accept and buy the products. Second, growing short-term fruit trees like sacha inchi or passion fruit add long-term fruit trees like durian is a strategy that uses short-term investment as stepping-stones towards achieving a long-term goals. Third, Phú sent his sacha inchi seeds for testing indicators of omega, calcium, protein. Testing results proves the quality of the products plus no pesticide residue. This whole process was recorded and traceable so customers can check the products’ origins easily. With his accumulated experiences and knowledge on organic farming, Phú shared it with other farmers. Trần Đình Mậu, another farmer in Ea Bar Commune said that last year, Phú helped him with his two-ha area macadamia nut farm. “My customers like the organically-grown macadamia more than the ones grown using conventional methods,” Mậu said, adding that now, he used organic fertilisers to all his crops. Nguyễn Văn Khúc, secretary of the commune’s party committee said, adding that the organic farming models generated high economic benefits and organic products were welcomed in market. In August last year, Phú established Ea Bar Emi Farm Co-operatives, attracting nine members. They apply organic farming in more than 50 ha od orchards and herbs. They hope to develop a zone specialising in organic fruits in the mountainous area of Phú Yên Commune. However, Phú admitted that besides financial issues, they faced another difficulty in management. “We farmers are used to doing farming work, now, we have tried to run business, managing a co-operative is not easy for us,” Phú said. Phạm Trọng yêm, deputy head of Phú Yên Province’s Co-operatives Alliance said that Phú’s co-operative should join the alliance so that it would receive more supports in technology, trade promotion, branding, human resource training as well as loans./. Japanese investors seek M&A partners in Vietnam Major Japanese enterprises are looking to buy Vietnamese IT firms through merger and acquisition (M&A) deals to expand production and business in the Southeast Asian country, reported Dau tu (Investment) newspaper. Besides IT businesses, Japanese investors are also interested in other fields such as hotel, industrial park, clean energy, renewable energy, seafood processing, and pharmaceutical production. Particularly, amidst the COVID-19 pandemic, the Japanese government will provide financial support for businesses to diversify supply chains in Vietnam. Under a scheme in which the Japanese government will fund production shifting to ASEAN countries, 15 Japanese firms have registered to move to Vietnam. They belong to a list of 30 Japanese enterprises that will be paid to move factories to Southeast Asian nations like Vietnam, the Philippines, Thailand and Laos. According to the Japan External Trade Organization (JETRO), 1,400 out of 3,500 Japanese businesses surveyed in 2019 said they want to expand production in Vietnam in the next three years./. Vinh Phuc: Over 84 percent of projects in IPs put into operation As many as 309 out of 367 projects , equivalent to 84 percent, in industrial parks (IPs) in the northern province of Vinh Phuc have been put into operation by the end of July, up 6 percent from December 2019. Among the 367 projects, 62 are domestic direct investment (DDI) projects valued at over 14.8 trillion VND (633.6 million USD), and 305 are foreign direct investment (FDI) ones worth more than 4 billion USD. Binh Xuyen district alone has seven industrial parks covering nearly 2,000ha, namely Thang Long Vinh Phuc, Binh Xuyen, Binh Xuyen II, Ba Thien, Ba Thien II, Son Loi and Nam Binh Xuyen, taking the lead in Vinh Phuc in the numbers of industrial parks and investment projects. The Thang Long Vinh Phuc industrial park has attracted dozens of investors from Japan with combined capital exceeding 200 million USD although it has just finished the first phase of construction./. Mekong Delta localities urged to work harder to complete yearly targets Prime Minister Nguyen Xuan Phuc has asked local administrations of all Mekong Delta provinces and cities to overcome difficulties and optimise their potential and advantages, thus completing all socio-economic targets for 2020 and following years. In a document informing the PM’s conclusion in a meeting with leaders of the Mekong Delta localities, PM Phuc called for the engagement of the whole political system in implementing the Government’s resolutions on supporting COVID-19-hit people and solutions to remove difficulties facing business and production and speed up public investment. At the same time, regional provinces and cities should roll out all necessary measures to promote economic growth of the whole region, keeping the growth rate not lower than the country’s average. Besides, the PM asked for the prompt designing of a planning scheme for the region and localities in the 2021-2030 period with a vision to 2050, focusing on promoting potential of the region and each locality, and strengthen the intra-region’s connectivity as well as the Mekong Delta’s connectivity with Ho Chi Minh City. The PM reminded the localities to concentrate on commercial production of agriculture towards higher quality and value. Meanwhile in the industry sector, regional provinces and cities should develop clean and renewable energy, supporting industries for agriculture and processing. The localities should form service-trade centres at sub-regional level, along with maritime-based economic zones, logistics centres and service hubs, while strengthening regional connectivity. The Mekong Delta region should continue promoting administrative reform and improving the investment and business environment, developing digital economy and e-commerce, the PM requested. He also asked ministries and agencies to support the regional localities in removing their difficulties and connecting them with domestic and foreign investors. In the first six months of 2020, 13 localities in the Mekong Delta worked hard to deal with drought and saltwater intrusion. Many localities reported economic growth higher than the country’s average. However, the average growth of the whole region was only 1.2 percent, while many localities suffered negative growth./. Thailand to launch more tourism stimulus packages Thailand will introduce more stimulus measures to boost tourism, jobs and domestic consumption hit hard by the COVID-19 pandemic, according to Deputy Prime Minister cum Energy Minister Supattanapong Punmeechaow. He revealed that the government plans to introduce generous subsidies to encourage domestic travel. Earlier, the government had launched a tourism stimulus campaign known as Rao Tiew Duay Kan (We Travel Together), which will subsidise five million nights of hotel accommodation at 40 percent of normal room rates, with the subsidy limited to 3,000 baht (96 USD) per night for up to five nights. According to the Tourism Authority of Thailand (TAT), foreign tourist arrivals next year could be as low as 15 percent of 2019 levels under a worst-case scenario due to a prolonged coronavirus crisis. Revenue from international visitors in 2021 under the most pessimistic scenario developed by the TAT would shrink to just 296 billion baht (9.43 billion USD), or about 16 percent of the 1.9 trillion baht (58 billion USD) earned in 2019. Total revenue from domestic and foreign travellers in 2019 was estimated at 3.2 trillion baht./. Textile and garment group's earnings plummet The Viet Nam National Textile and Garment Group (Vinatex) has forecast its total revenue and profit in 2020 will fall significantly from the previous year. The company expects its total revenue in 2020 will reach VND14.6 trillion (US$632 million), down from last year’s figure of VND20.14 trillion. Profit is forecast to drop by half to VND381.6 billion from 2019's number of VND765.5 billion. According to CEO Le Tien Truong, Vinatex has fulfilled half of the year’s total revenue goal but there is still a long way to go to reach the profit target. Total revenue dropped nearly a quarter year-on-year to VND7.04 trillion in the first six months and profit fell a fifth year-on-year to VND276 billion. The prolonged US-China trade war has hurt domestic fabric companies, including two that affiliates of Vinatex, the CEO said at the annual shareholders’ meeting on Tuesday. In addition, the company had no earnings in April as it had to scale down production due to social distancing measures and the spread of the coronavirus, he said. As the two affiliates have recorded lower earnings than a year before, the benefits Vinatex has in them also decline, he said. Selling financial investments helped the company offset losses in its core business, the CEO added. In the six-month period, Vinatex recorded VND69 billion worth of income from selling financial assets, up 25 per cent year-on-year. Its financial expenses were halved to VND88.6 billion from VND174 billion. In the next five years, market turmoil will keep declining and become more unpredictable and volatile, according to the company. Vinatex’s expects its earnings will recover and hit the level of 2019’s figures in the middle of the 2020-25 period. To realise the target, Vinatex will optimise its governance system, improve its competitive competency and build an environmentally-friendly supply chain using 4.0 technologies. The State-owned garment group also hopes to attract high-quality staff and offer them high salaries and benefits to improve business operation and performance. Chairman Tran Quang Nghi said average revenue growth was 12.6 per cent per year in the 2015-20 period, average profit growth in the period was 2.5 per cent, and the average cash dividend rate was 5 per cent each year./. US to send officials to quarantine fruits for export The Animal and Plant Health Inspection Service, an agency of the US Department of Agriculture, will send officials to Việt Nam to check the quality of fruits to be exported to the US. This information was released by Nguyễn Quang Hiếu, an official from the Ministry of Agriculture and Rural Development (MARD)’s Plant Protection Department, at a meeting in Hà Nội on Wednesday. Hiếu said the US officials’ visit has been postponed due to the COVID-19 pandemic. The department is seeking seats on several flights of airlines including Asiana, Korea Air and Nippon Airline for APHIS quarantine officials to come to Việt Nam. “We will try our best to bring the APHIS officials to Việt Nam as soon as possible,” Hiếu said. The US required its officials, including APHIS ones, working in Việt Nam to return home since March when the pandemic started. Nguyễn Đình Tùng, the CEO of Vina T&T Group which has exported a lot of Vietnamese fruits to US, said when the US withdrew all staff to return home, those still working in the US Embassy in Việt Nam were assigned to conduct quarantine for fresh fruit exported to the US, helping Vietnamese businesses export twice a week. However, for over a week now, they have been busy with their official work and cannot continue quarantine. “Therefore, the export of fresh fruits such as longan, mango, dragon fruit and rambutan to the US has been delayed. If this situation is not solved, many Vietnamese businesses and gardeners will suffer big losses,” Tùng said. General Secretary of Vietnam Fruits and Vegetable Association Đặng Phúc Nguyên said it’s necessary to open more irradiation centres to minimise cost and have a competitive price on the market. Nguyên said besides the US, some other markets including Australia and New Zealand also required irradiation before exporting fruits. However, the fruit irradiation is currently only undertaken by a company in HCM City. “The Việt Nam’s fruit price is not yet competitive because there is only one irradiation factory in HCM City. Fruits such as longan and mango in the northern province of Sơn La must be transported to HCM City for irradiation to be exported. Meanwhile, Thailand has four factories, the price is very competitive,” Nguyên said. “The US is a large market and one of the main markets for Vietnamese fruit exports. Therefore, we recommend the MARD to arrange for two or three fruit irradiation factories nationwide,” he added. According to a MARD report, in the first seven months of this year, despite the COVID-19 pandemic, Việt Nam’s export value of vegetables and fruits to the US market reached US$77 million, up 9.8 per cent year-on-year. Some other markets also saw an increase in export value such as Thailand with $79.4 million, Japan with $68.2 million, Taiwan with $43 million, and the Netherlands with $42.7 million. In terms of imports, in the first half of the year, the US, China and Australia were the three largest markets supplying imported fruits and vegetables to Việt Nam. The import from the US increased by 27.5 per cent, while imports from China and Australia decreased by 35.2 per cent and 12.5 per cent, respectively./. Da Nang to develop digital hub and regional bio-tech centre The CMC Corporation, the second largest Information and Communications (ICT) group in Việt Nam, has proposed a strategic development plan for a creative space and a digital hub in Đà Nẵng. CMC said the creative space will help turn Việt Nam into a digital hub in the Asia-Pacific region with estimated investment of VNĐ12 trillion (US$522 million). It said the Đà Nẵng-based CMC Creative Space will help Đà Nẵng become an internet and data exchange site in the Asia-Pacific region, and a destination for the 2,500km Cross Việt Nam Cable System that will run through 19 provinces and cities including Lạng Sơn, Hà Nội, Đà Nẵng, HCM City and Tây Ninh. CMC said Đà Nẵng will act as a data centre and software and internet exchange in the VNĐ500 billion ($21.7 million) trans-Việt Nam cable system that will connect Việt Nam and ASEAN through the Greater Mekong Sub-region-Internet Exchange. Biotech A hi-tech farm zone is built in a suburban area in central Việt Nam. A regional bio-tech centre is planned in the central city of Đà Nẵng in 2020-30. VNS Photo Công Thành Đà Nẵng has agreed to put forward VNĐ651 billion ($28.3 million) for upgrading the Đà Nẵng Bio-technology Centre and turn it into the South-central regional R&D Bio-Technology Centre. The R&D centre will supply research and development plans for high-tech farming, bio-tech applications in environment and sustainable development projects in the region in 2020-30. The city also called for investment in five high-tech farms to create a centre for hi-tech-farming in the central and central highlands region. The city has offered to cut land-clearance fees by 50 per cent per hectare per year for five years and $1,000 in support for investors per hectare each year for five years. Seven suburban communes in the city were planned as an organic farm area in Hòa Vang District on a total area of 540ha. The Việt Nam Dairy Products Joint-Stock Company (Vinamilk) has invested $26.5 million in a dairy farm on 124ha in Hòa Phong Commune in Hòa Vang District. Users warned over new 'cashback' apps The Vietnam Competition and Consumer Protection Authority (VCCA) has issued a warning over cashback apps which lack transparency and showed signs of illegal multi-level marketing. VCCA said that cashbank was an emerging model of business-to-consumer e-commerce and used as a way to attract customers. Some e-commerce websites and apps were offering cashback with attractive rates from 80 per cent to 100 per cent, even higher, for each transaction. Some gave attractive commissions for those inviting new participants. Such attractive offers would be in the form of earning reward points which could be redeemed for cash at very low rates, however. VCCA also pointed out that cashback could be in the form of cryptocurrencies, such as GEM, CPB, Silling, USDT, ETH, ONE and VNDC which could be exchanged within the internal system. These cryptocurrencies had not been recognised by laws as intermediaries for payment and users would not be protected by law in case of disputes, VCCA said. For example, the My Aladdinz app claimed to be member of one of the largest companies in the world with a development history of 27 years. The app offered cashback at rates of up to 80 per cent. However, users must use Vietnamese đồng to buy the platform’s currency named GEM for transactions and the cashback was also in GEM. On this platform, GEM could be converted into another cryptocurrency named USDT and vice versa as an investment for profit. Other platforms named in the warning by the VCCA included Payback VN and Tailoc888. VCCA urged people not to participate in these cashback websites and apps. Multi-level marketing businesses must comply with the Government’s Decree No 40/2018/NĐ-CP./. Indonesia puts relocation of capital city on hold to tackle pandemic Indonesia has put on a 33 billion USD project, initiated by President Joko Widodo, to relocate the capital city to the island of Borneo as it grapples to rein in the COVID-19pandemic. Indonesian planning minister Suharso Monoarfa said the government is putting as its number one priority the recovery of the economy and overcoming the pandemic. Making a frank admission of the obstacles to the project, he said groundbreaking could be delayed until 2022 or 2023, as the government focuses efforts on finding, and then distributing a COVID-19 vaccine to the population of nearly 270 million. Construction of a state palace and other buildings was initially set to start by 2021, along with upgrades of airports, sea ports and the building of access roads in the forested area earmarked for transformation into a new smart city. Civil servants were due to start moving by 2024. SoftBank’s chief executive Masayoshi Son, former British Prime Minister Tony Blair and Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed al Nahyan have been enlisted as advisers for the project. Normally, such a big project should bring considerable positive ripple effects for the economy, but disbursing the government’s coronavirus stimulus response appeared more urgent now, said Wellian Wiranto, an economist at OCBC Bank. At present, Indonesia could not afford to move its capital, as the pandemic’s strain on the national budget leads to a ballooning fiscal deficit, another economist said. The downturn could last longer than the government anticipates, running until the second half of 2021, said Enny Sri Hartati of the Institute for Development of Economics and Finance./. Singapore to hold virtual IP Week@SG IP Week@SG, a global conference organised by the Intellectual Property Office of Singapore (IPOS), will go virtual this year from August 25-27. It will focus on the role of Intellectual Property (IP) and Intangible Assets (IA) in helping companies amid the COVID-19 pandemic. IPOS CEO Rena Lee said COVID-19 has disrupted businesses and society in an unprecedented way. Yet, innovations, especially in the digital space, have flourished and presented companies with new opportunities to grow and thrive. Innovation and IP are symbiotically linked. Leading industry players and heads of global IP offices will discuss these issues and how companies can leverage IP/IA to improve cashflow, grow new business revenue streams and reduce exposure to costly litigation due to IP infringements in this crisis, she added. Complimentary webinars during IP Week@SG will address IP/IA issues that have come front and centre as a result of COVID-19. Participants will also be able to hear from the heads of IP offices and organisations from around the world including China, Japan, Singapore, the UK, the US, as well as leading companies like ONE Championship, The Lego Group, Razer and Zouk Group./. Vinh Phuc promotes agricultural processing industry Besides its strength in industries, in recent years, the northern province of Vinh Phuc has maintained effective agricultural production with diverse farm produce and breeding products, requiring it to promote the agricultural product processing sector to enhance their value. The development of the processing industry is also expected to bring in opportunities for agricultural product processing firms to restructure their operation in the future. During a recent national online conference on promoting the agricultural product processing sector and agricultural mechanization, leaders of the Government and central ministries and sectors defined that processing industry makes important contributions to the effective operation of enterprises, improving incomes for farmers and increasing State budget collection. In Vinh Phuc, despite its strong industry sector, in processing, the province has yet to mark its name in the Vietnam’s processing map as exempting for an animal feed factory and a number of safe vegetable processing facilities, Vinh Phuc has had few processed agricultural brand names. Recognising its unexploited potential and advantages in expanding the processing sector, in recent years, the province has designed various policies and mechanisms to encourage businesses to invest in the area. Vinh Phuc has asked the agricultural sector to coordinate closely with localities across the province to remove obstacles facing the agriculture sector, farmers and enterprises investing in agriculture. Meanwhile, the locality has actively sought and broadenedexport markets, while encouraging farmers and companies to stay active in applying high technologies in producing and processing agricultural products, thus providing customers with fresh, clean and safe farm produce. Statistics showed that currently, the province is home to more than 1,300 agricultural product and food processing facilities, of which, 25 are processing enterprises and the rest are small-scaled facilities. As part of its efforts to associate the agricultural product processing sector with trade promotion and market development, since 2013, Vinh Phuc has held a number of large-scaled agricultural trade promotion events and dozens of trade fairs and exhibitions, introducing major farm produce of the province to the domestic market and creating the connectivity in producing and selling of the products. However, the economic values produced by the processing sector have remained low and have yet to match the potential and advantages of the province. Experts held that the reasons behind the situation include risk factors threatening the agricultural sector, including natural disasters, extreme weather conditions and pandemics. Besides, some businesses wishing to invest in agriculture have faced difficulties in seeking areas to locate their projects as the areas are not included in the province’s planning scheme. In order to cope with the issues, the province has focused on adjusting, supplementing and completing a number of policies to create favourable conditions for the growth of economic sectors, especially farmers and businesses to get easier access to land, capital resources and market, thus effectively investing in agricultural production. Vinh Phuc has also designed a number of policies and mechanisms to attract more investment projects in agricultural processing. Officials from the provincial Department of Planning and Investment said the provincial authorities will continue to push forward with administrative reform, focusing on streamlining administrative procedures to reduce time and costs for enterprises. Vinh Phuc will promote the application of information technology (IT) in administrative procedures with the goal of creating the best possible environment for production and business, thus enhancing the attraction of FDI and investment from society. At the same time, attention will be paid to removing difficulties and obstacles faced by businesses in various fields, from business registration to business conditions, customs clearance and taxation. During the period of social distancing to curb the spread of the COVID-19 pandemic, agencies in Vinh Phuc still maintained their connections with investors through many channels, providing them with consultations and latest information. The province has also intensified online investment promotion activities, so as to attract investors after the pandemic is put under control./. Indonesia focuses on infrastructure development to support growth An Indonesian minister has affirmed that the country’s government is strongly committed to developing land transportation infrastructure nationwide to support economic growth. At a webinar on August 19, Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan cited results of a study as showing that one-percent hike in the construction of roads will raise economic growth by 8.8 percent, the Antara news agency reported. He noted the government has deemed it necessary to develop road infrastructure through public and private investment under a government and business entity partnership scheme. The minister also believed that Indonesia might be able to save nearly 100 trillion Rp (6.7 billion USD) annually by developing a train-based mass transportation system. Of the figure, 40 trillion Rp will be saved from the operating costs of motor vehicles and 60 trillion Rp from the travel time. The value is equivalent to 4 percent of the regional gross domestic product of Jabodetabek, which is the Greater Jakarta areas covering Jakarta, Bogor, Depok, Tangerang, and Bekasi, according to the official. The use of the mass transportation means will also result in a significant reduction in traffic congestion, Pandjaitan said. Road connectivity, including through toll roads, serves as an essential component to drive economic transformation to the manufacturing and service sectors. Therefore, Indonesia will boost developing a land transportation system across the country, from toll roads in Sulawesi and Bali to road lines in Kalimantan, Sulawesi and other localities, he added./. Site clearance for Long Thanh airport intensified An additional VND275 billion (USD11.95-million) has been spent for the site clearance of Long Thanh International Airport in the southern province of Dong Nai.The compensation has been offered for 130 households, ranging from VND32 million (USD1,391) to VND8 billion (USD347,826) each. This is the fourth compensation payout for the project’s site clearance. Early next month, local authorities will pay more compensation for the affected households. Earlier, a total of VND395 billion (USD17.17 million) was allocated for the site clearance compensation of the project. Some 1,800-hectares of clean land is scheduled to be handed over for the project in October this year, while the compensation for the remaining 3,190 hectares will be finished in the remaining months of this year. Long Thanh International Airport will be built on an area of 5,000 ha and is the most expensive project in Vietnamese history./. Mango exporters aim to remove hurdles amid cases of origin fraud A number of localities which are home to large mango-growing areas throughout the Mekong Delta region have been striving to find new export markets following the suspension of mango imports by China due to a number of firms faking origin traceability codes. Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetables Association, says the Chinese suspension of mango imports has exerted a significant impact on local businesses as the northern neighbour is the largest consumer of Vietnamese fruit, accounting for over 70% of total export turnover last year. According to the Plant Protection Department under the Ministry of Agriculture and Rural Development, despite this suspension yet to have an impact on the country’s mango exports because of the season ending for the fruit in the south, domestic businesses are concerned about seeking fresh outlets for their products in the near future. Nguyen notes that with Vietnamese mangos being grown in accordance to standards suitable for export to the Chinese market, these fruits will not be eligible to enter other demanding markets such as the United States and Japan. Indeed, China may even tighten the inspection process for other Vietnamese fruit and vegetable products after the suspension of mango imports, Nguyen adds. The Plant Protection Department therefore emphasizes that two of the 82 mango-growing regions, in addition to one of the 12 packaging facilities in Dong Thap, were named among the violation list. Most notably, Dong Thap's packaging and exporting establishments state that counterfeiters have faked origin traceability codes or have alternatively used their growing area codes in an effort to export the fruit, thus leading to poor-quality products and affecting the prestige of Vietnamese mangoes. Dinh Kim Nhung, deputy director of Kim Nhung Dong Thap Co., Ltd., suggests that there should be certifications granted by the owners of growing areas for each export shipment, which will therefore be eligible for customs clearance. These measures will serve to protect genuine businesses and farmers, whilst simultaneously avoiding counterfeiting origin traceability codes. The Departments of Industry and Trade of provinces in the Mekong Delta have been working closely with the nation’s trade counselors and trade offices based abroad in order to diversify markets for mangoes and increase the export of the fruit moving forward. In line with this, trade promotion schemes via online platforms will be held as a way of introducing the fruit to consumers. The Vietnam Fruit and Vegetables Association stresses the necessity of increasing intensive processing and giving due attention to the domestic market through strengthening connectivity with distributors and supermarkets./. PM requests people-centred economic recovery solutions Economic development must be ensured amid the COVID-19 pandemic to provide jobs and guarantee people’s livelihoods, Prime Minister Nguyen Xuan Phuc has said. The PM chaired a Government meeting on Wednesday to discuss draft development plans for the coming years, asking for effective and feasible solutions to minimise COVID-19-related losses and recover the economy in both short and medium terms. The event looked into the draft socio-economic development plan and State budget estimates for 2021, the draft financial-State budget plan for 2021-2023, along with the draft medium-term socio-economic development plan and public investment plan for 2021-2025. During his speech, PM Phuc underlined the need for staying proactive in governance and plan-making, noting that facing the serious impacts of COVID-19, effective and feasible solutions are necessary to ease losses and spur economic development in both 2021 and 2021-2025. He asked Government members to exert efforts to support socio-economic recovery this year, as well as beyond. Noting countries around the world have taken measures like large-scale aid packages to minimise the impacts of the pandemic, especially on people and businesses, the PM requested ministries and sectors, especially the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Labour, Invalids and Social Affairs, and localities, to devise support solutions strong enough to help affected people and enterprises. Those solutions must be proactive, flexible and match the “new normal” period. In particular, fiscal and monetary policies should be more flexible to stimulate demand, create jobs and promote growth while maintaining macro-economic stability, according to the Government leader. Meanwhile, the State budget plan for 2021 should include funds for social security policies for workers facing job losses and those in the informal sector, and for vocational training to help labourers adapt to changes in supply chains. PM Phuc also requested continued assistance for certain sectors heavily impacted by the pandemic like transportation, tourism, textile-garment, health care, and education; along with policies to encourage rational consumption. He demanded priority be given to development investment, especially for socio-economic infrastructure, including transport facilities, by using every possible resource. The public investment plan for 2021-2025 needs to include projects and programmes important to national development like those on the North-South Expressway, coastal roads, and digital economy, he added. The Prime Minister emphasised reducing regular expenditures, strict and effective control over public investment capital, and proper State budget allocation./. PM calls for full disbursement of public investment Prime Minister Nguyen Xuan Phuc has requested that public investment capital be fully disbursed this year, viewing this as a key political task that requires the involvement of the entire political system. During a teleconference with ministries, agencies, and localities on August 21, the second of its kind since the first on July 16, the PM said localities have been more aware of the need for the disbursement of public investment capital, which has helped create jobs and propel growth. Nearly 45 percent of all public investment capital is likely to be disbursed by the end of August. Most ministries, agencies, and localities have pledged to disburse 95-100 percent, especially those with large amounts, such as Hanoi, Ho Chi Minh City, and Hai Phong, as well as those with many national projects, such as Dong Nai province. According to the Ministry of Planning and Investment, 52 out of 53 ministries and centrally-run agencies and all of the country's 63 provinces and cities have outlined plans to allocate State budget capital this year. Nearly 455.5 trillion VND (19.8 billion USD) from the State budget, or 95.4 percent of the plan, has been earmarked for eligible projects. Seven ministries and centrally-run agencies and 31 provinces and cities have proposed increasing central budget allocations by over 13.5 trillion VND. Seven working delegations led by the PM and Deputy Prime Ministers and the ministers of finance and planning and investment have inspected the effort at ministries and localities to tackle difficulties. The PM said a symposium on official development assistance (ODA) will be held in the near future. The Ministry of Planning and Investment has been assigned to work closely with the Finance Ministry and the Government Office to prepare for the event. If public investment capital is fully disbursed, the economy could grow by 1 percent. Therefore, leaders of 31 ministries and centrally-run agencies and 13 localities with disbursement of less than 35 percent and 15 percent must learn from experience and disburse all capital this year, he said. Secretaries of municipal and provincial Party Committees, Chairpersons of municipal and provincial People’s Committees, ministers, and heads of sectors are also be responsible for the effort. PM Phuc agreed to establish a working group in charge of dealing with difficulties in key projects. The government leader also urged the speeding up of construction of key national projects, such as Long Thanh International Airport, the eastern section of the North-South Expressway, and the My Thuan - Can Tho Expressway. VNN |
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VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 2402:02 HCM City aiding pandemic-hit businesses Authorities in HCM City have launched aid packages to help local businesses, especially small- and medium- sized enterprises (SMEs), maintain their operations. The municipal People’s Committee has called on companies to register for tax payment extensions and tax adjustments for household businesses that have already suspended operations. It is also reviewing and assessing the impact of COVID-19 on tourism businesses to put forward suitable solutions, and will devise recovery scenarios once the pandemic is brought under control. Local authorities have called for assistance from major businesses for SMEs and introduced measures to promote digital transformation, the digital economy, online public services, cashless payments, and e-commerce. They also pledged to create favourable conditions for companies to access capital. As of the end of June, the HCM City Tax Department had handled 684 value-added tax procedures for businesses and provided refunds of over 4.5 trillion VND (193.94 million USD). An estimated 2,000 companies in the city with 136,730 employees have ceased operations, and close to 2,450 others filed documents seeking aid. Around 255,900 local companies and 43,780 individuals have been given tax and land lease payment extensions. Meanwhile, commercial banks had helped some 230,000 customers with loans totalling 384.61 trillion VND as of early July. The HCM City Power Corporation (EVN HCMC), meanwhile, has provided customers with support of about 1.7 billion VND in the last three months. Barriers to public investment disbursement must be removed: Minister
Relevant agencies need to take drastic and concerted actions and quickly remove barriers and difficulties to speed up the disbursement of public investment, Minister of Planning and Investment Nguyen Chi Dung has said. Speaking at an online conference held by the Government on August 21 in Hanoi, the minister said that recovering and promoting economic growth amid the COVID-19 pandemic is a crucial political task for 2020, in which accelerating the disbursement of public investment is key. He called on ministries, agencies, and authorities in localities to focus on clearly identifying any shortcomings in directing, conducting, and managing public investment projects in order to promptly address any problems, especially those relating to investment procedures and site clearance. The ministry has proposed the Ministry of Finance accelerate the application of information technology in managing expenditure and processing capital withdrawal applications at its offices and at the State Treasury, in ODA disbursement, and in concessional loans from foreign donors. Reports from the Ministry of Finance show that cumulative disbursement of public investment reached over 193 trillion VND in the first seven months of this year, equivalent to 40.98 percent of the plan, excluding capital left over from previous years. The total is estimated to hit 221.7 trillion VND (9.5 billion USD) by August 31, or 47 percent of the plan. Five ministries and central agencies and 19 localities have reported disbursement rates of more than 60 percent. But 29 ministries and central agencies and six localities have posted rates of less than 35 percent. The minister attributed the slow disbursement of ODA capital partly to the impact of COVID-19, saying that most activities linked to foreign factors, from importing machinery and equipment to engaging foreign experts, workers, contractors, consultants, and supervisors, and project funding have been delayed./. Carriers concoct strategies for uncertainties down the road With recovery uncertain for the remainder of 2020, a number of local airlines are making a genuine effort to fight against the pandemic and look for financial solutions in order to maintain operations. Nearly a dozen routes of all domestic airports arriving in the central city of Danang, including 200 round-trips every day, have been halted since a new coronavirus outbreak on July 28, as well as leading to the remarkable decline of the number of flights to other locations. Budget carrier Vietjet has deployed a variety of solutions such as focusing on cargo transportation and ancillary services. Vietjet is the first such airline to be approved to carry cargo on cabin since April. “The debt ratio is among the lowest range in the world’s aviation industry, so Vietjet continues to implement a long-term loan plan to overcome the crisis,” a representative said. To stay afloat, Bamboo Airways has also carried out solutions to offset losses caused by the halt of all international routes and the sharp decrease of domestic flights. The airline is focusing on cargo transportation for both humane and trade goals, rental flights, and carrying foreigners and cargo to Europe as well as releasing some new services. This is in addition to reducing the flight network, cabin crews, and other employees. However, in opposition to the worry of other players, Bamboo Airways CEO Trinh Van Quyet still believed in the performance of the airline despite the pandemic. “We are still going forward with the expansion of the aircraft fleet number to 50 aircraft as the goal set since last year, if the demand for transport recovers well and the market changes positively.” Aviation is said to be the most financially damaged sector hit by the pandemic. By the end of the second quarter, Vietjet recorded a slump of 54 per cent on-year in air transport revenues, and losses of VND1.12 trillion ($48.8 million). For the first six months of 2020, the airline’s loss in air transportation business stands at VND2.1 trillion ($91.8 million). Meanwhile, Airports Corporation of Vietnam recorded a post-tax losses of over VND365 billion ($16 million) from April to June as its revenues plunged 76.6 per cent from the same period last year to over VND1.046 trillion ($45.5 million). Meanwhile, Bamboo Airways reported over VND1.5 trillion ($65.2 million) in losses for the first quarter, and all its domestic flight routes are halted until late October at least. Following a proposal by airlines and authorities, the Vietnamese government is considering an aviation bailout, including providing exemptions from taxes, fees, and environmental taxes for flight fuel, along with providing financial packages and extending debt repayment terms. However, economist Pham Chi Lan emphasised the need to make this support equitable and transparent. She said all airlines have contributed to the state budget and socioeconomic development, so they should receive equal support based on factors like market share, contribution, and the amount of losses. “We should carefully calculate the losses of each airline and compare it to their revenue and profit to propose a proportional support instead of simply offsetting the bad performance of airlines,” said Lan./. Low-cost capital source drops sharply in many banks Many banks no longer benefit from demand deposits as the low-cost capital source has declined sharply due to the impacts of the COVID-19 pandemic. For banks, attracting a high proportion of demand deposits is important, because it creates a cheap source of capital. Normally, the interest rates of demand deposits are much lower than term deposits, being only around 0.2 percent per annum. At Kien Long Commercial Joint Stock Bank (Kienlongbank), though the bank’s customer deposits still grew by up to 10.4 percent in the first quarter of this year, the amount of demand deposits significantly dropped by nearly 31 percent to just more than 1 trillion VND (42.9 million USD), Bizlive.vn reported. The bank’s current account savings account (CASA) fell sharply from 4.62 percent at the beginning of the year to 2.88 percent by the end of June, being in the group of banks with the lowest CASA among the surveyed banks. Similarly, the demand deposits at Bac A Commercial Joint Stock Bank (BacABank) decreased by 27.4 percent in the first two quarters of the year, causing its CASA to plummet to a very low level of just 1.21 percent. Some other banks also recorded sharp fall of demand deposits, including Saigon Hanoi Commercial Joint Stock Bank (SHB, down by 21 percent), Export Import Commercial Joint Stock Bank (Eximbank, down by 18.4 percent) and Southeast Asia Commercial Joint Stock Bank (SeABank, down by 14.8 percent). In particular, SHB is one of the banks that recorded a sharp decline in CASA in the period, down from 9.38 percent at the beginning of the year to only 6.95 percent by the end of June. At Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank), the CASA also decreased 2.28 percent to 12.27 percent, while SeABank saw a decline of 3.71 percent to 8.73 percent. Even the three banks which have strong CASA including Military Commercial Joint Stock Bank (MBB), Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) also recorded a decline in CASA. Despite leading the surveyed group with CASA of 35.61 percent, MBB’s experienced a slight CASA decline from 38.38 percent at the beginning of the year. Similarly, Vietcombank and Techcombank respectively recorded CASA falls of 1.98 percent and 0.05 percent. The decline in banks’ demand deposits has been recorded as Vietnam’s economy has been negatively affected by the COVID-19 pandemic, including a social distancing period. Statistics of the State Bank of Vietnam also showed the amount of deposits on payment accounts of the banking system experienced a sharp decline. According to experts, the high CASA ratio will create a premise for the bank to improve its net interest margin (NIM) while keeping the lending rates at competitive levels in the market. That is also the reason why in the past few years, the Vietnamese commercial banking system has witnessed an increasingly fierce race to increase CASA, with banks introducing many policies to attract demand depositors, such as exemption of transaction, money transfer and withdrawal fees./. Ministry to build traceability system for products of industry and trade sector The Ministry of Industry and Trade will build an origin tracing system to create a database on goods managed by the ministry to meet customers’ increasing demand on tracing origin of goods. This system will also connect with the national goods tracing system, according to the ministry. In addition, to contribute to the development of a sustainable value chain and to improve the quality of products, the ministry has issued Decision 1978/QD-BCT on a project implementing, applying and managing the tracing system of goods until 2025. According to the decision, the ministry will complete the system of legal documents on tracing products in the industry and trade sector and propose a list of products that must ensure traceability. The ministry will study the application of new technologies for traceability and support businesses in implementing traceability. It will also have an information programme on tracing origin of goods for enterprises. Due to increasing demand for the traceability of goods, localities and enterprises from production to distribution are implementing the management of product traceability. HCM City has issued and implemented a project on management, identification and traceability of fresh vegetables, pork, poultry, and eggs. Meanwhile, Soc Trang Province has stamps of traceability for products such as rice, fish sauce, custard apple tea and dried buffalo meat, the Nguoi lao dong (Worker) newspaper reported. Nguyen Van Tham, director of Hau Giang Department of Industry and Trade, said that Hau Giang Province focuses on implementing origin traceability for some key products such as Nam Roi pomelo, saffron orange, sugar orange, mango, pineapple, seedless lemon, fish, custard apple and sugarcane. Tham said this will help farmers have sustainable production and consumers to know about the origin of products, creating favourable conditions for product consumption, especially in fastidious markets. Retailer Saigon Co.op has also been managing traceability of products by applying new technical standards for fresh food products at its supermarkets, hypermarkets and shops. This is a part of activities improving the quality control for input goods in the Saigon Co.op retail system./. Cash injections for private hospitals With rapid urbanisation and an ageing population in Vietnam, investors are pouring more funds into the country to develop private hospital chains and satisfy the rising demand for high-quality healthcare. Last week, VinaCapital announced that its flagship fund, the Vietnam Opportunity Fund (VOF), had invested in Thu Cuc International General Hospital (TCI) in Hanoi. VinaCapital led a consortium to invest $26.7 million to obtain a significant minority stake along with a board seat at the healthcare provider. TCI was established in 2011 in one of most populous and rapidly-developing areas of Hanoi by Nguyen Thu Cuc, who in 1996 became the first woman to launch and operate a private healthcare company in northern Vietnam. By working with some of the country’s most experienced doctors, Cuc quickly established TCI as a trusted destination for high-quality services at affordable prices in the fields of obstetrics, gynaecology, and oncology, while also offering comprehensive health checks. Andy Ho, chief investment officer at VinaCapital said, “TCI is widely recognised as one of the top private hospitals in Hanoi – a position it reached in a relatively short amount of time. That speaks to the vision and focus of the founder, the dedicated and professional medical staff, and the high-quality care they provide.” As Vietnam’s middle class continues to expand, consumers are seeking greater access to private medical services, thereby relieving the burden on the public health sector. As one of the first investors in the private healthcare industry in Vietnam dating back to its investment in Hoan My in 2009, VOF has long recognised the enormous growth potential of this industry. “TCI joins our existing healthcare portfolio of Thai Hoa in the Mekong Delta region, and Tam Tri Medical Corporation, which has hospitals in southern and central Vietnam. This investment in TCI will raise the VOF portfolio’s exposure to the healthcare and pharmaceutical sectors to 8 per cent of net asset value and will position VOF as the leading private equity investor in private hospitals and clinics in Vietnam,” Ho added. Similarly, Hoang Quan Group Co., Ltd. under Hoang Quan Group has recently inked a deal with Medika Investment Vietnam to develop international hospital chains in the country. In the first phase, the two plan to develop 12 international-standard hospitals with 2,500 beds as well as polyclinics with total investment capital of VND6 trillion ($260 million). Hoang Quan Group is specialising in real estate development with several social housing projects in Vietnam. This time, the company decided to venture into the new field of hospital development to tap into the market’s growth potential. The group owns a large reserve of land across many localities and will thus be responsible for legal land procedures and project development. Meanwhile, Medika has extensive experience in building and operating hospitals. The company will be in charge of building and managing the system of hospitals. Both groups aim to complete the development of the 12 hospitals and polyclinics in the next five years. Back in February, British Real Capital London launched the $156 million Hong Anh Medical Campus project in Ho Chi Minh City.The facility is a state-of-the-art healthcare system incorporating a 462-bed hospital, a medical training centre, a network of general practice clinics and pharmacies, and senior residencies and nursing homes, adding much needed facilities and services to Vietnam’s healthcare system. The project is divided into four stages, with the final phase expected to be completed by 2030. Generally, fresh funds are injected into Vietnam’s private healthcare sector. The Private Equity in Vietnam 2019 report by Grant Thornton shows that healthcare and pharmaceuticals ranked fourth in terms of industry attractiveness for investors, which was voted by 29.2 per cent of participants as “most attractive”. Eng Aik Meng, chairman of the Singapore-Vietnam Cancer Centre in Ho Chi Minh City is also upbeat about the outlook of Vietnam’s private healthcare sector and forecast much room for private healthcare providers to operate in the country. “Vietnam’s population is ageing quickly, with more than 10 per cent of the population at or above the age of 60 in 2017 – and in 15–20 years, the elderly will account for one third of the total population. Moreover, the rapid urbanisation is stimulating demand for quality healthcare within the country, and overcrowding in government hospitals is expected to intensify, resulting in long wait times and a shortage of beds,” he said, noting that all the factors will drive the investment wave into Vietnam’s private healthcare sector in the future./. Thailand to allow long-stay tourists in Phuket Thailand will allow foreign tourists to visit for longer stays in Phuket tourist island from October, a senior official of the country said on August 21, as the government tries to revive a key economic sector that has been devasted by the coronavirus pandemic. Tourists will have to stay for at least 30 days, with the first 14 days in quarantine in a limited vicinity of their hotel, before they can visit other areas, Tourism Authority of Thailand governor Yuthasak Supasorn said. Visitors will have to take two coronavirus tests during quarantine before they are able to travel to the rest of the island, Minister of Tourism and Sports Phiphat Ratchakitprakarn said on August 20. They will have to take an additional test and remain within the province for another week before they can travel to other parts of the country. Thailand has gone through nearly three months without a confirmed case of a local COVID-19 transmission. It has recorded over 3,300 cases. The Thai government’s coronavirus taskforce on August 21 extended a state of emergency for another month until the end of September to control the outbreak. The tourism-reliant economy has been battered by the collapse of global travel as infections spread. Southeast Asia's second-largest economy shrank 12.2 percent in the second quarter from a year earlier, the worst contraction since the 1998 Asian crisis due to the pandemic impact. The country expects to receive 8 million foreign tourists this year. By comparison, it had a record 39.8 million tourists in 2019./. ADB approves 300 mln USD loan to boost access to financial services in Philippines The Asian Development Bank (ADB) on August 21 said it has approved a 300 million U.S. dollars policy-based loan to support the Philippine government's efforts to implement reforms to expand poor Filipinos' access to financial services. According to the Manila-based bank, the ADB's loan is supporting reforms to help the Philippine government reach targets linked to the national strategy for financial inclusion. It said these measures will strengthen the institutional and policy environment for financial inclusion, improve financial infrastructure, and increase the capacity and reach of service providers, especially rural banks and non-bank financial institutions. Citing the 2017 Global Findex Survey, the ADB said the Philippines ranked among the lowest in Southeast Asia on almost all financial inclusion indicators. "Only 34 percent of Filipino adults have an account at a formal financial institution, compared with 49 percent in Indonesia, 82 percent in Thailand, and 85 percent in Malaysia," it said. The ADB said the Philippines can expand financial access to poor Filipinos through credit, savings, insurance, pensions, and remittances./. Singapore continues loosening travel restriction Lawernce Wong, co-chair of the Singaporean inter-ministry committee against COVID-19, on August 21 said the country will allow the general travel by its people to Brunei and New Zealand, starting from September 1. Besides, the country will also allow the entry of visitors from Brunei and New Zealand. Travelers entering Singapore and who have remained in either Brunei or New Zealand in the last consecutive 14 days prior to their entry will not be required to serve a Stay-Home Notice (SHN). Instead, they will undergo a COVID-19 test upon arrival at the airport and only be allowed to go about their activities in Singapore after receiving a negative test result. Meanwhile, for travelers from some low risk countries and regions including Australia (except Victoria state), Macau (China), china, Taiwan (China), Vietnam and Malaysia, Singapore will shorten the SHN duration from the current 14 days to seven days, and allow travelers to serve the SHN at their place of residence./. Vietnamese, Japanese consumer goods companies to be brought together An event linking producers and traders of high-quality Japanese household commodities and consumer goods with Vietnamese partners, called GOOD GOODS Japan, will take place in Hanoi from August 24 to October 30. Held at the Japan External Trade Organisation (JETRO) Hanoi Office on Phan Chu Trinh Street in the capital’s Hoan Kiem district, the event is expected to attract 46 Japanese companies showcasing their products and linking with Vietnamese partners through virtual negotiations. Abe Tonofumi, Project Director at JETRO Hanoi, said GOOD GOODS Japan has been held by the organisation since 2014 with the aim of helping Japanese small- and medium-sized enterprises popularise their products to the Vietnamese market. Vietnamese buyers will be offered a chance to test exhibited products and hold online negotiations with Japanese suppliers if interested./. ASEAN-China digital trade centre to boost cooperation The Association of Southeast Asian Nations (ASEAN) and China's Guangxi Zhuang Autonomous Region have rolled out a plan to build a China-ASEAN Digital Trade Centre for boosting regional digital economic cooperation. Headquartered in Nanning, capital of Guangxi, the centre is designated as a digital economy development park with office buildings, digital creative industries, platform operations, big data, the internet of things, among other facilities. The project is also important for the construction of the ASEAN-China information harbour. The Guangxi government said that the centre will be built in two phases. By the end of 2021, 5 billion CNY (about 724 million USD) will be invested in the centre, allowing it to accommodate 4,000 enterprises, with at least five warehouses and exhibition centres built in ASEAN countries. Between 2022 and 2025, another 20 billion CNY will be invested, allowing the centre to accommodate more than 10,000 digital-trade market entities, 10 of which will each have a turnover of more than 1 billion CNY, while another 100 will have a turnover of more than 100 million CNY each. Li Changguan, chairman of the Guangxi committee of China Council for the Promotion of International Trade, said that China and ASEAN countries are highly complementary in the field of digital economy and have great potential for cooperation. The establishment of the center can better serve economic and trade cooperation between the two sides in the future, he said./. RoK increases import of Vietnam’s shrimps The Republic of Korea (RoK) is importing more shrimps from Vietnam, and has become the fifth biggest importer of Vietnam’s shrimps with 10.7 percent of market share. Despite the impact of the COVID-19 pandemic, Vietnam’s export of shrimps to the RoK had reached 179 million USD as of July 15, a year-on-year rise of 5.8 percent. Dried shrimp and processed giant tiger prawn reported the highest growth rates, with 194 percent and 62 percent, respectively. Vietnam’s shrimp is exempted from import tariffs to the RoK with a quota of 15,000 tonnes a year. However, at present, Vietnam is shipping just 2,500 tonnes of shrimps to the Eastern Asian country. Domestic exporters are advised to raise their awareness of the Vietnam-RoK Free Trade Agreement to take advantage of its incentives./. Organic farming helps small businesses grow As demand for healthy food grows, one farmer in the Phú Yên Province has decided to go organic. The switch has not only helped him to reap the rewards, but also greatly benefitted other farmers in his region. Trần Ngọc Phú, 47, left his home town in Hương Điền District, Thừa Thiên-Huế Province in central Việt Nam more than 30 years ago. He decided to better his prospects by moving to Ea Bar Commune, a mountainous area of Phú Yên on Việt Nam's south-central coast. Once he arrived he began working on rubber plantation, and continued to do so until 2017 when the company dissolved. Faced with a tough decision of what to do next, Phú decided to start his own business. “It was a really a difficult time for me as I did not know where to start,” he said. “After a lot of research on the internet, I found that people paid more and more attention to what they were eating and they were willing to pay more for clean and healthy products.” That was Phú’s eureka moment but he wanted to be sure he had the sufficient knowledge to make his business a success. He travelled to Hà Nội to study at the Việt Nam Agriculture Institute and also visited organic farms in Bình Phước and Đắk Lắk to gather as much information as he could. Knowledge collected, Phú began his enterprise, growing durian, sacha inchi and passion fruit on his four-hectare orchard without using any herbicides. He used natural products such as fermented fish and fruit peel to protect his trees and animal waste and coffee pods to make fertiliser. It wasn’t always plain sailing, and Phú made many mistakes along the way. He added: “With little experience and understanding when first applying organic farming, I failed many times, then I tried again and again.” Creating suitable organic fertiliser made from fermented small fish, fruit peels and probiotics was one such headache and he had to study the characteristics of soil and trees. Over and over he had to try and find the right combinations, and some fellow farmers questioned the direction he was heading. “Organic farming was very strange to many farmers in my locality at that time. They were sceptical about my farming method and did not think that I would succeed,” Phú said. But they soon changed their ways of thinking when they realised Phú was turning a healthy profit. In 2018, Phú earned VNĐ20 million from 100 passion fruit trees and VĐ150 million from growing sacha inchi and rubber together. What impressed them more is that Phú’s three-year-old durian garden was disease free and producing healthy fruit. According to Phú, there are three main factors that make organic farming models successful. First, as no chemical is used in the model, products’ prices are higher than other products but consumers will still accept and buy the products. Second, growing short-term fruit trees like sacha inchi or passion fruit and long-term fruit trees like durian is a strategy that uses short-term investment as stepping-stones towards achieving a long-term goals. Third, Phú sent his sacha inchi seed for testing indicators of omega, calcium, protein. Testing results proved the quality of the products plus no pesticide residue. This whole process was recorded and traceable so customers can check the products’ origins easily. With his accumulated experiences and knowledge on organic farming, Phú shared it with other farmers. Trần Đình Mậu, another farmer in Ea Bar Commune said that last year, Phú helped him with his two-hectare area macadamia nut farm. “My customers like the organically-grown macadamia more than the ones grown using conventional methods,” Mậu said, adding that now, he used organic fertilisers to all his crops. Nguyễn Văn Khúc, secretary of the commune’s party committee said, adding that the organic farming models generated high economic benefits and organic products were welcomed in market. In August last year, Phú established Ea Bar Emi Farm Co-operatives, attracting nine members. They apply organic farming in more than 50 ha of orchards and herbs. They hope to develop a zone specialising in organic fruits in the mountainous area of Phú Yên Commune. However, Phú admitted that besides financial issues, they faced another difficulty in management. “We farmers are used to doing farming work, now, we have tried to run business, managing a co-operative is not easy for us,” Phú said. Phạm Trọng Yêm, deputy head of Phú Yên Province’s Co-operatives Alliance said that Phú’s co-operative should join the alliance so that it would receive more supports in technology, trade promotion, branding, human resource training as well as loans./. MoIT receives anti-dumping documents on cold rolled stainless steel The Trade Remedies Authority of Viet Nam under the Ministry of Industry and Trade has just issued a notice of receipt of a request to review anti-dumping measures for some cold-rolled stainless steel products originating from China, Indonesia, Malaysia, and Taiwan imported into Viet Nam. Previously, the Ministry of Industry and Trade issued Decision 3162/QD-BCT on October 21 last year on the results of final review of the application of anti-dumping measures for some steel products originating from China, Indonesia, Malaysia, Taiwan, imported into Viet Nam and decided to continue applying anti-dumping measures for these products. After the review time expires, based on the investigation conclusions, the Trade Remedies Authority of Viet Nam will propose the Minister of Industry and Trade to continue applying anti-dumping measures in accordance with current regulations and adjust the anti-dumping measures or terminate the application of the measures. The implementation of procedures related to the review process will not interfere with the application of the existing anti-dumping measures. The application must be completed and submitted directly to the investigation agency before 5pm on October 21 (Ha Noi time) at the Trade Remedies Authority of Viet Nam at 25 Ngo Quyen, Hoan Kiem District, Ha Noi./. Vietnam racks up trade surplus of US$10 billion by mid-August Vietnam recorded a trade surplus exceeding US$10 billion by mid-August as exports continued to bounce back during the first half of August, according to the latest statistics compiled by the General Department of Vietnam Customs. The country raked in US$12.7 billion from exports while spending US$10.8 billion on imports in the first half of August. Overall, it grossed US$160.2 billion from exports since the beginning of the year to August 15, representing an annual increase of approximately 1.8%, equivalent to nearly US$3 billion, while imports fell to US$150.2 billion, roughly US$4 billion less than the corresponding figure last year. Worthy of note is that phones and accessories brought back US$2.58 billion, topping the list of commodities that have obtained a high export value. They were followed by computers, electronics and components (US$1.9 billion), c(US$1.36 billion), and machinery, equipment, and spare parts (US$1.11 billion). Due to the resurgence of the novel coronavirus epidemic, the nation’s export activities in the remaining months of the year are projected to face an array of challenges. Despite this, the implementation of the EU-Vietnam Free Trade Agreement on August 1 is poised to create opportunities for businesses, according to the Ministry of Industry and Trade. With strong commitments to opening the market and abolishing import duties of up to 100% on tariff lines, there are bright prospects ahead for Vietnamese exports to the EU market, especially for key products of garments, footwear, agro-forestry and fisheries./. Car dealers offer huge discounts in time of hardship Car dealers are offering huge incentives for customers to promote sales as the economic impacts from the pandemic persist and the lunar month of July is around the corner. The lunar month of July, which began on Wednesday, is traditionally considered taboo by most Vietnamese for activities concerning large sums of money such as purchasing real estate and cars. As demands shrink, caused by both psychological fear and difficult economic situations, automobile brands are left with little choice other than providing discounts to help push up sales and maintain market share. VinFast is offering a direct discount of VND80-120 million by 30 September for every purchase of Lux A2.0 or Lux SA2.0, applied for clients who have previously purchased the Fadil and Lux models. Ford Viet Nam is cutting VND160-220 million off its 2019 Everest 2.0L AT 4WD version, while buyers of Everest versions receive price cuts of around VND60-85 million. Other Ford models are being discounted ranging from VND25-80 million per unit with reductions in registration fee or guarantee packages. Truong Hai Automobile Group (Thaco)’s Kia Cerato, Soluto and Sedona are being discounted by up to VND60 million. Some Mazda models are also on sale by up to VND40 million. TC Motor retailers are offering a VND10-50 million reduction for Hyundai Kona, Tucson and SantaFe. Nissan Viet Nam is also cutting VND20-40 million for its Sunny, X-trail and Navara models. Toyota Viet Nam retains its promotional programme for purchases of selected Fortuner models by the end of August. Consumers buying the two versions of 2.4 MT 4x2 and version 2.4 AT 4x2 will receive a gift of VND55 million in value. High-end automobiles are no exceptions. Dealers are putting Honda CR-V 2020, MG HS and ZS, Suzuki Ertiga (Sport) on sale with a reduction of VND10-30 million in price. Buyers of high-end imported cars such as Jaguar and Land Rover are also receiving one-three years of hull insurance. Firms have high hopes for a revival of car prices as the lunar month of July passes and the COVID-19 pandemic eases off, yet economic uncertainty has caused demands to plunge as consumers narrow down consumption. Viet Nam Automobile Manufacturers’ Association (VAMA) estimated the car demands this year will drop 28 per cent year-on-year and firms continue to decrease prices of many models. The latter end of the year is usually the time for brands to introduce new models, which means more pressure on the selling side. Many companies have to suffer losses, especially for cars manufactured in the beginning of 2020 and earlier since they will only devalue as 2021 comes. Economic expert Ngo Tri Long told local media that if the COVID-19 pandemic persists, demand for cars will continue to face hardship as it is not an essential good. “Factories and retailers in Quang Nam and Da Nang are seriously affected." Car prices may pick up slightly as the lunar month of July is over. The Government support for the automobile industry is also expected to extend to 2021, yet the overall price trend is likely to remain on the low side. VAMA estimated a negative growth of 15 per cent for the Vietnamese automobile industry in 2020. Sales plummeting to the lowest level in 10 years is also predictable if the pandemic remains uncontrolled. The automobile industry contributes 3 per cent to GDP every year on average, equivalent to US$7 billion in 2019. As car sales crash, the economy is taking a hit as firms will restrict production and cut down on staff, according to VAMA./. Vietnam Airlines clings on to hope of government support Amid its poorest performance in development history, national flag carrier Vietnam Airlines is undergoing a strong restructuring effort while urging the government to offer special support to shelter from the global health crisis. Taking office as newly-elected chairman of Vietnam Airlines in a historically difficult period, Dang Ngoc Hoa’s face has been full of anxiety because of the increasing responsibility in helping the country’s leading wings recover from a tough year. “The first thing that I did as the new chairman was to encourage our staff to move ahead. We already have different scenarios for future developments of the pandemic,” Hoa said. “Necessary measures and solutions have been taken, including cost-saving, restructuring the aircraft fleet, and more.” However, the national flag carrier believed it cannot recover without strong support from the government. Vietnam Airlines, at the general shareholder meeting on August 10, officially sought future solutions, with financial support of VND12 trillion ($521.7 million) being a focus. The group proposes the state, which holds a controlling stake of 86 per cent, to issue special supporting policies. The airline has so far submitted 15 documents to authorised agencies in this regard. “The government has asked the Commission for the Management of State Capital at Enterprises (CMSEC) to work with Vietnam Airlines on the completion and submission of necessary procedures to the highest Vietnamese authorities (the National Assembly/Politburo) in order to decide the supporting policies, with the additional loan of VND4 trillion ($173.9 million) from the state and an increase of equity by VND8 trillion ($347.8 million) being the key solution,” Pham Ngoc Minh, former chairman of Vietnam Airlines, said. Industry insiders said that the aviation sector is in urgent need of special supporting policies to soon deal with the difficulties. Senior economist Tran Dinh Thien said that legal barriers that could delay the issuance of the policies could make the situation more serious. “In some cases, the policies were issued when businesses were exhausted, or lost the opportunities to recover.” Nguyen Hong Hien, representative from the CMSEC noted that shareholders, especially strategic stakeholders and state agencies, should urgently work together to help the airline overcome the crisis, keep growing, and increase investment value for shareholders. The time that the government will take in making moves will be decisive for Vietnam Airlines. Without the government support, Vietnam Airlines may not be able to hold out for long, depending on the time to control of the pandemic both at home and abroad. Meanwhile, the International Air Transport Association (IATA) forecast that the international aviation market is not likely to bounce back until 2024, meaning severe difficulties ahead for airlines. Vietnam Airlines plays an important role in the domestic aviation sector, which greatly contributes to the country’s GDP. The group, which includes Vietnam Airlines, Pacific Airlines, and VASCO, holds a total domestic market share of 50 per cent. The air transport industry, including airlines and its supply chain, is estimated to support $2.6 billion of GDP in Vietnam, while spending by foreign tourists supports a further $9.9 billion of the country’s GDP, totalling $12.5 billion. Looking ahead, air transport in Vietnam is forecast to grow by 178 per cent in the next 20 years under the “current trends” scenario. This would result in an additional 82.2 million passenger departures by 2038. If met, this increased demand would support approximately $35 billion of GDP and around 2.4 million jobs. In spite of the importance, Vietnam Airlines is still waiting for the long-awaited support while regional giants have received some funds. In particular, Vietnam Airlines’ Japanese strategic partner ANA attained funding of $10 billion, Singapore Airlines was offered support of $13 billion, Malaysia Airways received a loan of $1.2 billion, and Thai Airways was given $1.8 billion in support. The Hanoi-based carrier has taken a number of measures to keep its footing. In the short-term the giant is focused on cargo transport, chartered flights, and cutting costs. In the long term, it plans to restructure its aircraft fleet. “We have negotiated to delay new aircraft purchases and rent deals and even cancelled unnecessary ones. We will sell the long-used aircraft and divest investment from subsidiaries, joint ventures, and associated companies,” said Duong Tri Thanh, CEO of Vietnam Airlines. The national flag carrier has suffered its largest-ever loss. In the first six months of 2020, it made revenues of VND24.8 trillion ($1.07 billion), down 50 per cent on-year, and incurred after-tax losses of VND6.64 trillion ($288.7 million). To maintain operations, the airline increased long-term loans from VND5 trillion ($217.4 million) to VND9 trillion ($391.3 million) while negotiating with lenders to extend the payment period. Worse still, the new recent COVID-19 infection cases have crushed hopes of a possible recovery for the domestic market this summer. In July, when the country reported no new cases, Vietnam Airlines conducted 500 domestic flights daily, up 40 per cent on-year. However, since late July ,the number fell to 109 flights a day, a similar fall to that in May. In the wake of the adversity, Vietnam Airlines expects to make consolidated revenues of VND40.58 trillion ($1.76 billion) in 2020, down 60 per cent on-year, and after-tax losses of VND15.17 trillion ($659.56 million), with a plan to announce no dividend payouts in 2019./. Investment in Southeast Asian tech startups down 13 per cent in first half Southeast Asian tech startups raised less money in the first half of 2020 due to the impact of the coronavirus pandemic but the decline is less than in other parts of the world. According to the latest report by Singapore-based venture capital firm Cento Ventures, Southeast Asian tech startups raised $5.6 billion of investments in the first half of 2020, down 13 per cent from the year earlier. This is less steep than the 16 per cent drop in India and the 21 per cent decline in the EU. Meanwhile, North America witnessed an 8 per cent decline in the given period. The COVID-19 pandemic has dragged down deal activity globally but investors continued to fund growth-stage startups in areas that benefit from online activity. In Southeast Asia, investments of $10-50 million, typically known as Series B and C financing, totalled a record of $.2 billion in the first half, up 25 per cent from a year ago. "All things considered, Southeast Asia held up surprisingly well," Dmitry Levit, a partner at Cento Ventures, said in an interview with Bloomberg. He noted that growth in $10-150 million deals and the proliferation of $100 million companies seem to be the two powerful developments in the region in recent years. Southeast Asian ride-hailing giant Gojek wrapped up a $1.2 billion investment in March. In May, Singapore's Ninja Van raised $279 million from backers including France's GeoPOst SA, scoring one of Southeast Asia's largest startup investments since the pandemic. Meanwhile, Vietnamese e-commerce platform Tiki wrapped up a $130 million investment from private equity fund Northstar Group, making the e-commerce operator one of the top five funded startups in Southeast Asia in the period./. Thai Nguyen props up private sector development By virtue of abounding potential and natural resources, holding a pivotal role among northern mountainous provinces, and receiving active support from the local government, scores of businesses in the northern province of Thai Nguyen have established firm footholds with ever-increasing contributions to push up local economic growth and job creation. According to Vu Hong Bac, Chairman of Thai Nguyen People’s Committee, for the private sector to grow into a motivating force with major contributions to propel local socioeconomic development, local authorised agencies at all levels need to step up support, encourage small businesses and local trading households to join the market, promote equal access to diverse land and capital resources, and develop an innovative startup ecosystem. Simultaneously, efforts must gear towards fostering dialogues and reacting to their proposals. In addition, local business associations need to function as an effective link between the business community and the local government, while companies must tighten cooperation such as in product consumption for sustainable development. Thai Nguyen’s provincial governance and public administration performance index was constantly kept at high levels in recent years. Last year, the provincial competitiveness index ranked 12th, moving up six notches compared to the previous year. Significantly, the time to receive business registration and business setup certificates has been shed to just two working days. Local transport infrastructure has seen marked improvements and abundant human resources, providing the fulcrum to spur the private sector’s development. Since 2015, about 350 new business setups have been registered in the province annually. In the first half this year despite the pandemic, Thai Nguyen still saw 314 businesses established, with the total registered capital approximating VND2 trillion ($86.9 million), surpassing 5 per cent on-year. The province’s recent statistics show that the total investment value in Thai Nguyen amounted to VND238 trillion ($10.3 billion) during 2015-2020, in which VND97 trillion ($4.21 billion, equal 41 per cent) came from the private sector. This has contributed a great deal to the province’s achieving an average growth rate surpassing 11 per cent per year in the past five years, and budget payment from the private sector jumping 2.1 fold during the period. Per capita income averaged VND83 million (over $3,600). last year, and each year the private sector creates more than 21,000 jobs. One of eminent growth modes among private companies in Thai Nguyen is An Khanh Thermal Power JSC, investor of the 120MW An Khanh thermal power plant, commenced operations in 2015 with the total registered capital of VND4.7 trillion ($204 million). Each year since, the plant has contributed nearly one billion kilowatt hour to the national power grid, raking in revenue of tens of millions of US dollars and providing jobs for about 500 workers. According to Nguyen Van Thang, chairman of An Khanh Thermal Power JSC, Vietnam faced a critical shortage of power during 2010-2015, with active support from relevant ministries, branches, and particularly from Thai Nguyen’s authorities, the plant was able to come on stream in a timely manner, helping to ensure national energy security. In another case, through availing local bountiful advantages, the billion-dollar Nui Phao Mining Co., Ltd. came into existence to exploit Nui Phao mine, one of the world’s largest tungsten deposits based in Thai Nguyen, with mining reserves touching 66 million tonnes of ore. Nui Phao has been participating in a global value chain and manufacturing network via producing high-tech items serving the aerospace, auto, and computing industries. Every year, Nui Phao fetches an annual revenue of about VND6 trillion ($260 million) and budget contribution reaching VND1.2 trillion ($52.1 million). With active support from relevant management agencies in Thai Nguyen, six specialised companies working on packaging production, logistics, and transportation serving Nui Phao were set up and managed stable operations. They have created jobs for nearly 200 local workers. Meanwhile, from humble beginnings TNG Investment and Trading JSC has grown into the largest apparel maker in the province with more than 16,000 employees. In the words of TNG chairman Nguyen Van Thoi, the company has encountered numerous difficulties due to supply chain disruptions in the wake of the dragging COVID-19 pandemic. Cancelled export orders had caused headaches to company executives in finding jobs for the workers. “Leveraging support from Thai Nguyen’s management, the company has been quickly participating in exporting face masks and protective clothing, helping to ensure stable work and income for the labourers despite pandemic implications,” Thoi said. As one of major apparel hubs in Vietnam, Thai Nguyen also quickly sought government approval to export face masks and protective clothing for pandemic prevention after the local demands for the projects were met, helping local companies to maintain business continuity and employment of local workers. In addition, according to Chairman Bac, to alleviate burdens on businesses hit by COVID-19, Thai Nguyen’s authorities have instructed tax and social insurance agencies to postpone and extend implementation of financial obligations; and also asked banks to engage in debt restructuring and soften the interest rate to support business development. VNN |
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Breaking the monopoly: key to the power industry development01:54 Vietnam needs an electricity power policy under which the market rules, investors make a profit, and the poor can afford electricity.Supply sources Power plants in Vietnam belong to different owners. EVN (Electricity of Vietnam) holding company runs large plants such as Song Da, Son La, Ialy, Tuyen Quang, Tri An Hydropower and Vinh Tan 4 Thermopower.  The Hoa Binh Hydropower Plant EVN’s subsidiaries specializing in producing electricity include GENCO 1, 2, 3, Thu Duc Thermopower and Thuan Binh Wind Power. Of these, only GENCO 3 has been equitized, while the remaining companies are single-member limited companies. Besides EVN, PetroVietnam, Vinacomin and others also generate electricity. About 2 percent of electricity consumed is from imports. The electricity daily consumption is 0.6 billion kwh, or 220 billion kwh a year. The electricity generation installed capacity is 0,6 billion kWh/24h = 25 triệu kW (25.000 MW). Son La Hydropower Plant has the capacity of 2,400 MW, while Hoa Binh 1,920 MW. However, the real electricity generation capacity is just a little higher than 50 percent of the installed capacity. Son La provides 10.2 billion kwh a year, while Hoa Binh 8.2 billion. Meanwhile, Phu My Thermopower, the largest in the country, can provide 17 billion kwh. If Vietnam wants to increase the electricity output by 10 billion kwh, or 5 percent, a year, it needs to build one more hydropower plant as the same size as Son La, or Hoa Binh, or it needs to build one more Phu My every two years.
The current investment rate is VND25 billion per MW of installed capacity of hydraulic power and VND50 billion per MW of real generation capacity. The figure would be higher for thermal power, about $2 million per kwh. Who will spend money to build one hydropower plant like Son La every year, which costs VND60 trillion, or $2.5 billion? With electricity generation sources with plentiful owners and short supply, this is enough for the power generation market to form. GENCO 3 has been equitized, and GENCO 1, 2 and other companies also need to become joint stock companies. The plants belonging to EVN Holding also need to be separated into independent plants, and restructured into joint stock companies, together with PetroVIetnam and Vinacomin’s plants. EVN has stockholder equity of VND200 trillion, which is just enough for 20 percent of the total electricity demand. It now borrows VND400 trillion, and if the interest rate is 6 percent per annum, it would have to pay VND24 trillion in interest a year. And if it paid the principal within 10 years, it would pay VND40 trillion a year. Towards a competitive distribution market The distribution is being undertaken by power companies. Two thirds of the electricity output is reserved for the production sector. However, there is no big problem with the consumers. The electricity price in Vietnam is competitive, and enterprises benefit when they use more electricity. There is no reason to complain about the centralized management. Problems only exist in the household-use sector. Consumers complain as they have to pay more in summer in accordance with the multi-tiered price mechanism. The Ministry of Industry and Trade (MOIT) designed a single pricing mechanism, but has withdrawn the solution as it was not applauded. Consumers believe that the electricity price is unreasonable because EVN is enjoying a monopoly in distribution. EVN is a state-owned enterprise which has a lot of problems characterized for state-owned enterprises. EVN’s subsidiaries need to switch to joint stock companies, and especially public companies to have higher transparency. By that time, many electricity users can be both clients and shareholders of power supply companies. Maintaining the transmission system Power companies buy electricity from electricity generation plants and sell electricity to consumers through the transmission system. The transmission is implemented by EVNNPT (Vietnam National Power Transmission Corporation), a 100 percent EVN invested corporation. If considering the importance and role of the transmission company, which needs to ensure electricity security and electricity system safety, EVNNPT is not going to be equotized. However, there should be a reasonable financial mechanism for EVNNPT. It needs to be given the right to negotiate with every buyer and seller about transmission prices. The possibility of equitizing EVN The operation model of EVN is quite cumbersome. It would be better for EVN to be divided into three large companies in charge of power generation, transmission and distribution. If so, the role of the State would be setting reasonable policies to satisfy the demand for power and settle problems of social security, but it would not intervene in electricity pricing. In the future, many power generation plants won’t belong to EVN. VNN/Ngo Van Tuyen |
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VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 2502:29 Boosting online payments for e-commerce growth  Online shopping has become more and more popular and received a lot of attention in the past five years, especially amid the COVID-19 pandemic. The Institute for Brand and Competitiveness Strategy organised a forum titled "Consumption tendency in Viet Nam: The future of online payments and consumption" in Ha Noi on Thursday. Dang Thuy Ha, director of Nielsen in the northern region, said that there were four billion people connected to the internet worldwide this year with 30 per cent of retail sales done through electronic applications. It is predicted that the global sharing economy will reach a value of US$300 billion by 2025. Viet Nam's internet users will account for nearly 60 per cent of the population this year and 33 per cent of Vietnamese consumers will make direct money transfers online when shopping. Commenting on the future of Viet Nam's retail industry, Dinh Thi My Loan, honourary Chairwoman of the Vietnamese Retailers' Association, said that now was the era of e-commerce. The fourth industrial revolution was putting businesses in a race, said Loan. Digital transformation is considered to be an irreversible trend, but many Vietnamese businesses fail due to incorrect understanding and not being ready with resources. A survey by the Viet Nam Software and IT Services Association (VINASA) showed that nearly 95 per cent of enterprises are aware of the importance of digital transformation. However, 84 per cent of businesses fail to transform digitally and the application of new technology in businesses often fails. That raises the question of where to start for a safe and efficient digital transformation journey and how to do it successfully. Hoang Quoc Quyen, a representative of Tiki, said that online payments and consumption were a trend all over the world. Online payments and consumption would promote many areas of development, in which e-commerce contributes to transparency in management and convenience for consumers, he said. However, online payments for consumption has not really achieved their potential. In fact, of 4.5-5 million Tiki orders a month, the number of online payments accounted for only about 40 per cent, 60 per cent were in cash, said the representative. In order for shoppers to be ready for cashless and online payments, Quyen noted that it was necessary to handle e-commerce floors which sell fake goods or goods with unknown origin. Along with that, there should be strong measures to create trust for shoppers towards online payments. Banks, payment gateways and telecommunication carriers need to create favourable conditions and have supporting policies for people to pay online; at the same time, creating a shared database to minimise risks for customers./. ASEAN looks to promote post-pandemic recovery An online consultation of ASEAN economic ministers with the ASEAN Business Advisory Council (ASEAN BAC) took place on August 24 under the chair of Minister of Industry and Trade Tran Tuan Anh. Representatives from ASEAN BAC presented recommendations on strengthening coordination between governments and ASEAN’s business community in responding to the impact of COVID-19 and building a post-pandemic economic recovery plan. Chairman of ASEAN BAC 2020 Doan Duy Khuong highlighted the theme of the ASEAN Business and Investment Summit (ASEAN BIS), which is scheduled for November in Hanoi within the framework of the 37th ASEAN Summit. “Digital ASEAN: Sustainability and Inclusiveness” will discuss the importance of Industry 4.0 in stimulating trade and investment growth and addressing the consequences of the COVID-19 crisis and other challenges facing the region, Khuong said. Ministers reviewed ASEAN BAC’s activities over recent years, including the Network of Digital Startups (Digital STARS) project, the Smart Growth Connect (SGConnect) project, the ASEAN Mentorship for Entrepreneurs Network (AMEN) project, and the Digital Trade Connect project. ASEAN BAC also mentioned the ASEAN Business Awards 2020, an annual event honouring regional businesses and recognising their important position in the ASEAN economy. ASEAN economic ministers valued the ASEAN BAC initiative, emphasising that close coordination between governments and business communities is essential not only in responding to COVID-19 but also in promoting economic integration within ASEAN as well as between the bloc and its partner countries. They requested ASEAN BAC work more closely with regional governments in implementing objectives set out in the Hanoi Plan of Action and the Action Plan approved by the group and its partners, such as Japan and ASEAN 3 countries, to prevent and mitigate the economic impact of the pandemic in the region and to consolidate regional supply chains, contributing to promoting post-pandemic economic recovery in the region./. Experts discuss using AI to recover from pandemic A kick-off seminar for the 2020 Viet Nam Artificial Intelligence day (AI4VN) was held in Ha Noi on Tuesday. Participants discussed using AI to restore the operations of enterprises in the context of the COVID-19 pandemic. In his opening remarks, Deputy Minister of Science and Technology Bui The Duy said this was the opening event in the series of annual AI4VN events, playing an important role in promoting the AI industry in Viet Nam. “The organisation of the event in the context of COVID-19 aims to promptly provide information for enterprises to stabilise production and recover broken chains in the supply of goods, thereby ensuring employment for employees,” said Duy. The event also aimed at promoting online system platforms and digital transformation, which were increasingly widely applied in the trend of the 4.0 revolution, said the deputy minister. Nguyen Thanh Lam, director of the applied products division of VinAI Research Institute for Artificial Intelligence, gave an example that when launching a Vsmart, VinAI Research produced FaceID technology instead of spending a huge amount of money to buy this technology from the US or China. Nguyen Xuan Phong, an expert on AI research at Canadian Mila Artificial Intelligence Institute, said AI had developed in the world for a long time, led by North America with big technology companies. The next wave came from Germany and Japan. There was still plenty of room for AI in Viet Nam and AI could make its way through every industry, he said. “It is important to have a key national strategy, selecting strengths in agriculture, health, agro-forestry and fisheries to promote," said Phong. Al has been included in the list of high technology prioritised for investment and development in Viet Nam since 2014. The Government has determined this is one of the key and breakthrough technologies of the fourth industrial revolution, which is necessary to conduct research, but there has been a lack of specific contents to promote its development. The Ministry of Science and Technology issued a plan to implement research and development of AI in 2018. The plan aims to link the parties to develop, research, deploy and apply Al technology, promote the technology development in key and advantageous fields./. Mango exporters aim to remove hurdles amid cases of origin fraud A number of localities which are home to large mango-growing areas throughout the Mekong Delta region have been striving to find new export markets following the suspension of mango imports by China due to a number of firms faking origin traceability codes. Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetables Association, says the Chinese suspension of mango imports has exerted a significant impact on local businesses as the northern neighbour is the largest consumer of Vietnamese fruit, accounting for over 70% of total export turnover last year. According to the Plant Protection Department under the Ministry of Agriculture and Rural Development, despite this suspension yet to have an impact on the country’s mango exports because of the season ending for the fruit in the south, domestic businesses are concerned about seeking fresh outlets for their products in the near future. Nguyen notes that with Vietnamese mangos being grown in accordance to standards suitable for export to the Chinese market, these fruits will not be eligible to enter other demanding markets such as the United States and Japan. Indeed, China may even tighten the inspection process for other Vietnamese fruit and vegetable products after the suspension of mango imports, Nguyen adds. The Plant Protection Department therefore emphasizes that two of the 82 mango-growing regions, in addition to one of the 12 packaging facilities in Dong Thap, were named among the violation list. Most notably, Dong Thap's packaging and exporting establishments state that counterfeiters have faked origin traceability codes or have alternatively used their growing area codes in an effort to export the fruit, thus leading to poor-quality products and affecting the prestige of Vietnamese mangoes. Dinh Kim Nhung, deputy director of Kim Nhung Dong Thap Co., Ltd., suggests that there should be certifications granted by the owners of growing areas for each export shipment, which will therefore be eligible for customs clearance. These measures will serve to protect genuine businesses and farmers, whilst simultaneously avoiding counterfeiting origin traceability codes. The Departments of Industry and Trade of provinces in the Mekong Delta have been working closely with the nation’s trade counselors and trade offices based abroad in order to diversify markets for mangoes and increase the export of the fruit moving forward. In line with this, trade promotion schemes via online platforms will be held as a way of introducing the fruit to consumers. The Vietnam Fruit and Vegetables Association stresses the necessity of increasing intensive processing and giving due attention to the domestic market through strengthening connectivity with distributors and supermarkets./. Cement exports rake in US$732 million over seven-month period Despite the impact of the novel coronavirus (COVID-19) pandemic combined with anti-dumping measures in the Philippines, the opening seven months of the year saw the cement industry export 19.5 million tonnes of products at a value of US$732 million, a year-on year fall of 5.4%. Most notably, in comparison to the same period from last year, despite the export volume rising by approximately two million tonnes, the value of revenue suffered a decrease of 5.4%, resulting in a fall in the export price. The national cement industry’s four major export markets over the past seven months included China, Southeast Asia, the Philippines, and Bangladesh. After importing products for many years, since 2010 Vietnam has been exporting cement and clinker. Indeed, cement and clinker has since joined a group of the country’s billion-dollar export items to become the leading cement exporter in Southeast Asia in the process, with the cement industry witnessing extremely fast and impressive export growth. This comes after the local cement industry witnessed strong export in 2018 and 2019 with production exceeding 30 million tonnes per year. In particular, 2018 became the first year that cement and clinker joined the billion-dollar export club, with a total turnover of US$1.25 billion and an output of 32 million tonnes. Following this, 2019 saw cement and clinker continue to maintain their strong performance in terms of export volume, with total output hitting approximately 34 million tonnes worth US$1.39 billion, marking the second year it made the billion-dollar export club. The Ministry of Construction therefore estimates that cement consumption for the entire industry this year will reach between 101 million and 103 million tonnes, an increase of between 4% and 5% from last year, of which domestic cement consumption will make up roughly 70 million tonnes, with 32 million to 34 million tonnes for export. With this in mind, this level of consumption is based on estimates made in late 2019 and completely excludes the unexpected factor of the COVID-19 epidemic./. HCM City strives to speed up public investment disbursement Ho Chi Minh City had disbursed nearly 20.06 trillion VND (865.4 million USD) in public investment or 47.6 percent of the plan for the whole year as of the end of July, according to the municipal People’s Committee. Though the disbursement rate was higher than the same period last year, it has failed to meet expectation of the government as well as the city leaders, and to become a factor boosting local economic growth. It was largely attributed to the long delay in payment of land compensation, affecting progress of local projects and disbursement plans. Slow disbursement of Official Development Assistance (ODA) loans in Ben Thanh – Suoi Tien urban railway project was also blamed for the low rate. Just about 41 percent of the total 9.94 trillion VND in ODA allocated for the metro project has been disbursed so far. Chairman of the HCM City People’s Committee Nguyen Thanh Phong said that the city will continue taking several measures to speed up the disbursement of the local public investment. HCM City sets to disburse at least 80 percent of the planned investment by October 15 and over 95 percent of the plan by the end of this year, Phong vowed. The city will classify projects according to their importance, and assign officials to monitor their progress and remove barriers if necessary, he said. The city also decided to disburse capital for eligible projects within four working days and produce reports about challenges facing the disbursement every two weeks. The will accelerate progress in payment of land compensation and resettlement, he added./. Foreign firms optimistic about Vietnam’s economic recovery Foreign corporate executives remain optimistic about Vietnam’s economic prospects despite the new COVID-19 outbreak that prompted the imposition of social distancing in some localities, especially in the central city of Da Nang. Kenneth Atkinson, founder of international audit agency Grant Thornton and Vice Chairman of the Vietnam Tourism Advisory Board, said economists are warning that the new COVID-19 outbreak could overshadow the past optimistic forecasts about Vietnam’s short-term economic growth. However, he still believed that Vietnam remains attractive to international companies. Most foreigners living in Da Nang believed that the Vietnamese Government took swift and effective actions to combat COVID-19, both earlier this year and at present. A foreign web designer said the Vietnamese Government is doing its best to prevent the new pandemic outbreak and current countermeasures are very important./. Singapore Airlines burns 3.2bln USD in just two months because of COVID-19 Singapore Airlines has spent 4.4 billion SGD (more than 3.2 billion USD) over the last two months as a result of the COVID-19 pandemic that has forced governments to close borders to stem the spread of the coronavirus. The airline said since mid-June, it has spent 1.1 billion SGD on operating expenses, the settlement of maturing fuel hedging trades and ticket refunds following the cancellation of flights in view of the continuing border controls and travel restrictions. Another 2 billion SDG has been used to repay a bridge loan while 0.2 billion SGD has been applied toward aircraft purchases. Approximately 0.9 billion SDG was to service debt, which included the redemption of the airline’s 10-year 500-million-SDG Fixed Rate Notes in July and repayment of funds previously drawn under certain lines of credit. In June, the airline raised 8.8 billion SGD through its rights issues as the airline continues to suffer from the lockdown in international aviation. Since the start of the COVID-19 pandemic, Singapore Airlines has taken steps to significantly reduce its monthly expenditure. To curb costs, it has slashed salaries and put staff on unpaid leave as it operates at less than 10 percent of capacity. The Singaporean carrier posted a loss of 1.85 billion SGD in the first half of this year as the pandemic wiped out passenger traffic. Cathay Pacific lost 9.9 billion HKD (1.27 billion USD) and Qantas 1.96 billion AUD (1.4 billion USD)./. RoK, Can Tho seek stronger economic ties Leaders of Can Tho and Ministry of Foreign Affairs met with Ambassador of the Republic of Korea to Vietnam Park Noh-wan on August 20 to discuss future cooperation between in the Mekong Delta city and the RoK. Speaking at the meeting, Secretary of the municipal Party Committee Tran Quoc Trung highlighted the recent development of the friendship and economic cooperation between the two sides, saying the RoK tops foreign investors in Can Tho with 14 FDI projects, worth a total 268 million USD. The RoK is now the city’s largest strategic partner as the two-way trade exceeded 14 million USD last year and reached 2.9 million USD in the first half of 2020. Can Tho mainly exported to the RoK rice, fishery and agricultural products, garments and pharmaceuticals while imports included pharmaceutical materials, fabrics and veterinary medicines. Trung hoped to receive more support and cooperation from the Ministry of Foreign Affairs, the Korean Ambassador and the RoK Consulate General in Ho Chi Minh City as well as Korean investors to further boost and sustain its development. He called for Korean investment in various areas, including hi-tech, support industries, logistics, trade and tourism. Deputy Foreign Minister Le Hoai Trung highly spoke of the strategic partnership between Vietnam and the RoK and mentioned Can Tho as an emerging destination for foreign investors. RoK Ambassador to Vietnam Park Noh-wan, for his part, said more and more Korean firms have shown their interest in Can Tho and the Mekong Delta at large as the region holds great potential for economic development and Can Tho is a gateway to the delta. Korean investment has been mostly poured into Hanoi over recent years, he said, adding that he expects a new wave of investment from Korean companies will land in Can Tho and the Mekong Delta in the coming time. He wished to open more classes providing Korean-language lessons and proposed the establishment of a centre for sending Vietnamese guest workers to the RoK. He unveiled that Vietnam and the RoK will co-host a Korea-Mekong Delta business forum in Can Tho in October./. Ha Long city boasts advantages in developing night-time economy With the necessary infrastructure, attractive tour packages, and high-quality shopping services, Ha Long city in the northeastern province of Quang Ninh possesses a host of advantages to develop its night-time economy, especially tourism. Over the next five years the night-time economy will be a focus of the city’s development goals and is expected to thrive. Vice Chairman of the municipal People’s Committee Nguyen Ngoc Son said that over the past five years, 6-10 million travellers have visited Ha Long each year. It welcomed 11.9 million holidaymakers last year, 30-35 percent of whom were foreigners, mainly from Europe. Local authorities plan to develop dance clubs, karaoke lounges, cinemas, exhibition spaces, arts performances, and casinos at night, as well as promote sightseeing tours around the city. Shopping centres, convenience stores, and restaurants will be open later at night to serve customers. One of the new points in the development of the city’s night-time economy is a proposal to open 12 pedestrian streets and 12 squares to attract visitors. Besides waterfront streets along Ha Long Bay, there would be other routes reserved for pedestrians at Sunworld, the Tuan Chau tourism site, and the Dong Che flower village./. Cargo throughput of seaports still maintains growth in eight months Nearly 485.3 million tonnes of cargo were handled at Vietnam’s seaports in the first eight months of this year, including over 13.9 million TEUs of container cargo, up 6 percent and 8 percent annually, respectively. Deputy Director General of the Vietnam Maritime Administration Hoang Hong Giang said in August alone, nearly 57.3 million TEUs of cargo went through Vietnamese seaports, up 2 percent. Of which, the volume of container cargo surpassed 1.7 million TEUs, up 7 percent year-on-year. The bulk of container goods handled by seaports is on the rise compared to July, Giang said. Despite the COVID-19 pandemic, seaports in the central provinces of Quang Tri and Quang Ngai saw high increases in the volume of cargo, of up to 73-97 percent. Seaports in Nam Dinh, Can Tho, Thanh Hoa and Thai Binh posted rises of between 20-32 percent. In particular, the container throughput of seaports in My Tho soared by 276 percent, Thanh Hoa 96 percent, Quy Nhon 22 percent, Vung Tau and Ho Chi Minh City 15 percent./. Hanoi active in seizing opportunities from EVFTA Having recognised the advantages for exports created by the EU-Vietnam Free Trade Agreement (EVFTA), Hanoi has designed a number of measures to make full use of the opportunities it brings about. Addressing an online conference on implementing a plan to bring the EVFTA to life, a representative from the Hanoi People’s Committee noted that as many as 23 of the 27 EU member countries have invested in Hanoi, with total investment now standing at 4.16 billion USD, or nearly 10 percent of the total of 46 billion USD in foreign investment in the city. EU enterprises primarily invest in support industries and high-tech production. Meanwhile, the EU market receives 12-15 percent of Hanoi’s export products each year, mostly footwear, fruit and vegetables, and electronics. In the first seven months of this year, Hanoi’s exported 998 million USD worth of goods to the EU, down 2.5 percent over the same period last year due to the impact of the COVID-19 pandemic. Economists said that the 500-million-strong EU market, with annual GDP of 18 trillion USD, holds substantial promise for Vietnam in general and Hanoi in particular. The EU is also an important trade partner of Vietnam, with two-way trade standing at 55.8 billion USD in 2018. Considered the “most modern, comprehensive, and ambitious agreement ever concluded between the EU and a developing country”, the EVFTA will abolish almost all tariffs between the two sides over the next ten years. With commitments to open up markets and remove nearly 100 percent of import taxes, the EVFTA is expected to bring about major opportunities for businesses in Vietnam and Hanoi. Experts have forecast that revenue from exports to the bloc will rise about 42 percent by 2025 and nearly 45 percent by 2030. According to a representative from the Ministry of Industry and Trade, Vietnam and the EU can supplement each other in goods supply and many Vietnamese products are already held in high regard in the EU market. Based on the analysis, Hanoi has determined that the implementation of the EVFTA will promote growth in trade between Vietnam’s capital and the EU. The EU, however, is quite a fastidious market and this requires exporters to ensure product quality and meet strict requirements on production processes and the use of labour. Along with quality, economists pointed out that EU consumers pay great attention to businesses’ social responsibility. Factors like not using child labour or regularly hosting charity activities and supporting the local community can contribute to enhancing the value of products in the market. In order to conquer any market, Hanoi will need to increase its communications efforts and support enterprises by providing them with guidelines on standards for the entire production process, therefore helping local companies improve their competitiveness and access more export opportunities. The capital will also continue to promote administrative reform and engage in investment promotion programmes calling for EU investors, especially in pharmaceuticals and sectors seeking high technology. Hanoi has recently given support to small and medium-sized enterprises and start-ups to strengthen connectivity in building a start-up ecology and to create partnerships with the capital cities of certain EU member countries. The city has proposed that the Prime Minister issue a plan to implement the EVFTA and direct ministries, sectors, and agencies to provide guidelines to cities and provinces, including Hanoi, to effectively bring the agreement to life, thus increasing export opportunities for businesses in Hanoi and Vietnam as a whole. Over the years, under the Prime Minister’s direction, the capital has implemented plans to promote investment ties and partnerships with EU member countries, especially localities with which it shares a traditional relationship./. Thailand to cut down power generation reserve The State-run Electricity Generating Authority of Thailand (Egat) is planning to reduce the power generation capacity reserve to 15 percent from 40 percent of total capacity, in a move to curb high power costs. Decommissioning some power plants early, selling electricity to neighbouring countries and using more electricity in agribusiness will be carried out to allow for reductions. Local media quoted Egat's Governor Viboon Rerksirathai as saying that without these actions, the national power reserve would rise above 40 percent because of lower electricity demand during the economic recession. The more energy is stored in the grid, the more expensive power becomes for users. The 2018 power development plan (PDP) projects that future electricity demand to grow by between 3-5 percent over the next decade, but the outbreak of COVID-19, which has led to lockdown measures worldwide, has made that estimate untenable. Viboon did not name which plants are targeted for early decommissioning, saying the decision will depend on selection criteria and discussions with operators. Without early decommissions, the country's power generation capacity will rise from 51,390MW to 54,026MW in 2025. Another option to reduce electricity reserves is sales to Myanmar and Cambodia, said Viboon. This requires upgrading transmission lines, but it would be worth the investment, he said. The power surplus can also be used for chilling fruit and vegetables to prolong their shelf life before sale, he added. The Thai economy has suffered sharp fall in the second quarter of 2020 due to the COVID-19 pandemic. The National Economic and Social Development Council announced on August 17 that the country’s GDP dropped by 12.2 percent from a year ago – the biggest decline since the Asian financial crisis in 1998. The second-quarter unemployment rate was at 1.95 percent, and an additional 1.8 million workers may be at risk of losing their jobs./. Online workshop links Vietnamese companies and foreign distributors An online workshop was held on August 20, providing training and networking activities to help connect Vietnamese enterprises with foreign distribution networks. Part of a governmental project to facilitate such links, the workshop was co-organised by the Ministry of Industry and Trade (MoIT), giant retail groups such as Aeon, Walmart, Central Retail, and Lotte, and different sector associations. It attracted the participation of 200 companies in agro-forestry and food processing along with thousands of viewers on its official Facebook page and YouTube channel. Addressing the event, Deputy Minister of Industry and Trade Do Thang Hai said the workshop is one of a series of activities within the project, which aims to bolster the capacity of Vietnamese exporters in terms of production, market expansion, and finance. COVID-19 is plaguing the operations of companies and supply sources, he said, adding that there is a need for stabilising the supply system and distribution market, particularly regarding goods for daily life, like farm produce and food. Therefore, increasing exports via large distribution networks is an effective solution, he noted, which could help Made-in-Vietnam products more deeply enter global value and supply chains. The MoIT has assigned the European-American Market Department to work with a number of major distributors on building a set of guidebooks for Vietnamese companies to improve their production and export capacity. Ta Hoang Linh, head of the department, said the project aims to not only boost exports but also to build a capable business community that can meet demands from overseas markets. The ministry has been working to link suitable partners together and to offer consultation services to Vietnamese companies, he said. To save time, both sides can join a chatroom to share details on their products after gaining the necessary information about each other, he added. Fukui Tomoiaki, a senior manager from Japanese retailer AEON, said the group exported 268 million USD worth of Vietnamese goods in the first half of this year. The figure is expected to reach 500 million USD for the year as a whole, in line with AEON’s commitment to the MoIT in a cooperation pact on their strategic partnership. Karim Noui from Central Retail noted that the retailer has held various programmes to date to support Vietnamese farmers and small- and medium-sized enterprises while working to send local products abroad./. 45 million Vietnamese people shop online Nearly 45 million Vietnamese people now access online shopping, a forum on domestic consumption trends on August 20 in Hanoi heard. The Government aims to have 55 percent of the country’s 90-million-plus population shopping online by 2025, with revenues estimated at 35 billion USD. The goal is perfectly feasible given the support coming from the Government, ministries, departments, and businesses. Participants at the forum suggested making it easier for e-commerce enterprises to access capital to join online supply chains for Made-in-Vietnam goods. It is also necessary to have policies for online payments and for guaranteeing the security of customers’ personal data, they suggested. A representative from Nielsen Vietnam said the number of internet users in Vietnam is expected to reach about 60 percent of the country’s population this year, and 33 percent of Vietnamese consumers will make online payment while shopping./. Indonesia puts relocation of capital city on hold to tackle pandemic Indonesia has put on a 33 billion USD project, initiated by President Joko Widodo, to relocate the capital city to the island of Borneo as it grapples to rein in the COVID-19pandemic. Indonesian planning minister Suharso Monoarfa said the government is putting as its number one priority the recovery of the economy and overcoming the pandemic. Making a frank admission of the obstacles to the project, he said groundbreaking could be delayed until 2022 or 2023, as the government focuses efforts on finding, and then distributing a COVID-19 vaccine to the population of nearly 270 million. Construction of a state palace and other buildings was initially set to start by 2021, along with upgrades of airports, sea ports and the building of access roads in the forested area earmarked for transformation into a new smart city. Civil servants were due to start moving by 2024. SoftBank’s chief executive Masayoshi Son, former British Prime Minister Tony Blair and Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed al Nahyan have been enlisted as advisers for the project. Normally, such a big project should bring considerable positive ripple effects for the economy, but disbursing the government’s coronavirus stimulus response appeared more urgent now, said Wellian Wiranto, an economist at OCBC Bank. At present, Indonesia could not afford to move its capital, as the pandemic’s strain on the national budget leads to a ballooning fiscal deficit, another economist said. The downturn could last longer than the government anticipates, running until the second half of 2021, said Enny Sri Hartati of the Institute for Development of Economics and Finance./. Thailand aims to become first ASEAN nation to roll out 5G commercial service Thailand is striving to become the first country in ASEAN to launch 5G commercial service, while existing 4G systems are ready to be upgraded to 5G, government deputy spokeswoman Ratchada Thanadirek said. She said Prime Minister Prayut Chan-o-cha has encouraged investment in 5G to develop technology and the industrial structure. Fifth-generation connection and technologies would be used in the Eastern Economic Corridor as well as in big cities to turn them into “smart cities”. Ratchada said the 5G project would commence in 2023 and cover 98 percent of the population by 2027. The connection speed is expected to be 100 mbps in cities and 50 mbps in other areas. Some 7,000 SMEs are expected to apply 5G technology, and its value is likely to be 6.6 percent of the country’s GDP. Moreover, basic education will be able to access about 700,000 digital educational services, which might help raise Thailand’s IMD World Digital Competitiveness Ranking to number eight. Meanwhile, 5G innovation research can spur commerce by 50 percent, she added. The Thai government has agreed in principle to apply incentives, including tax privileges, as a tool to promote the industrial sector using 5G technology in its production. Rachada said the first meeting of the National 5G Committee chaired by Prime Minister Prayut on August 14 agreed that incentives such as a corporate income tax cut, special funding and soft loans would be instrumental to encouraging the private sector to rapidly adopt 5G technology. The meeting also approved pilot 5G projects./. Indonesia considers plan to develop medical tourism The Indonesian government is mulling over a plan to develop “medical tourism” in a bid to provide high-quality health care to the public and create a new source of national income. The Coordinating Maritime Affairs and Investment Minister Office’s spokesman Jodi Mahardi said such a move could potentially bolster the country’s medical independence. A report by PwC showed that 600,000 Indonesians sought medical treatment overseas in 2015 – the most in the world, he said. Patients in Indonesia in general prefer overseas health care, citing lackluster domestic medical services related to the treatment of certain diseases. He went on to say that the development of medical tourism in Indonesia was not only feasible, but also highly lucrative given the steady increase in the number of medical tourists around the globe. Indonesia’s Southeast Asian neighbours, such as Thailand, Singapore and Malaysia, have already developed medical tourism. Medical tourism, he added, could also serve as a catalyst for job creation and a more diversified economy in the country. With such a goal, the Indonesian government has mulled over a plan to build international hospitals staffed with highly trained health professionals from other countries, in collaboration with related state departments and organisations, such as the Indonesian Doctors Association (IDI). The plan to develop medical tourism in the country has been years in the making. In 2017, the Tourism Ministry and the Health Ministry signed a memorandum of understanding on the development of medical and health tourism, which was touted as a flagship of special interest tourism./. Wood processing to become spearhead economic sector by 2025 The wood processing industry is to become a spearhead economic sector by 2025, posting export turnover of about 20 billion USD to contribute to socio-economic development and stabilise the livelihoods of people living in forested areas. Addressing a conference in Hanoi on August 20 to review policies on forestry investment and those on processing and trading forestry products, Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said the forestry industry has recorded high growth in recent years, especially in export turnover. The sector aims to improve the quality of forests and promote value and production chains for forestry products, focusing on investing in protective and special-use forests to protect the environment and ensure long-term biodiversity. Support will be provided to poor farmers and the vulnerable, helping them access policies on forestry protection and development in combination with livelihood improvement. Apart from promoting exports, it is also necessary to develop the domestic market which is valued at around 3 billion USD and demand keeps rising, Tuan said. He underlined the need to have mechanisms and policies on non-timber forestry products, stressing that priority should be given to developing medicinal products. Scientists believe that the environmental value and the value of non-timber forest products are about three to four times higher than the value of timber. According to the Vietnam Administration of Forestry (VAF), about 50 trillion VND was mobilised for developing the forestry sector in the 2016-2020 period, including over 8.7 trillion VND from the State budget, over 3 trillion VND in official development assistance (ODA) capital, and nearly 27 trillion VND invested by organisations and individuals. According to Bui Chinh Nghia, deputy general director of VAF, investment policies for the sector have proven effective, as the natural forestry area has been managed and protected well, forest quality has gradually improved, and forest coverage increased to 41.89 percent in 2019 from 40.84 percent in 2015 and is expected to hit 42 percent this year. Many concentrated material areas have been created for the wood processing industry, reaching over 1.3 million ha. The value of forestry production increased by an average of 5.73 percent annually in the 2016-2020 period. The export value of wood and wooden products rose to 11.3 billion USD in 2019 from 7.1 billion USD in 2015, and is estimated to reach over 12 billion USD this year./. Foodstuff businesses benefit as Covid-19 keeps people homebound Many food processing firms have earned large profits this year with demand surging due to the COVID-19 outbreak as people have not been going out to limit contact with others. Many of them have managed to do so despite having low charter capital. Immediately after the outbreak began, cooking oil producer Tuong An Vegetable Oil Joint Stock Company (TAC) had to expand its production line to meet the demand. In the first seven months of the year, its revenues were up by 30 per cent year-on-year to VND2.615 trillion, and profits by 23.3 per cent to VND370 billion. KIDO Foods, the frozen foods subsidiary of KIDO Group, achieved revenues of VND832 billion. In the seven months, it achieved 94 per cent of its full-year pre-tax profit target. The pandemic might be damaging the economy, but food processing businesses are having it good, analysts said. Companies producing personal protective equipment (PPE) such as face mask also earned high profits, they said. The Wakamono Group is manufacturing 20 tonnes of antimicrobial gecide fabric made using nano biotech daily to supply garment companies. This fabric costs 30 per cent less than normal antimicrobial gecide fabric made without the use of nano biotech, Phan Quoc Cong, the company chairman, said./. Low-cost capital source drops sharply in many banks Many banks no longer benefit from demand deposits as the low-cost capital source has declined sharply due to the impacts of the COVID-19 pandemic. For banks, attracting a high proportion of demand deposits is important, because it creates a cheap source of capital. Normally, the interest rates of demand deposits are much lower than term deposits, being only around 0.2 per cent per annum. At Kien Long Commercial Joint Stock Bank (Kienlongbank), though the bank’s customer deposits still grew by up to 10.4 per cent in the first quarter of this year, the amount of demand deposits significantly dropped by nearly 31 per cent to just more than VND1 trillion (US$42.9 million), Bizlive.vn reported. The bank’s current account savings account (CASA) fell sharply from 4.62 per cent at the beginning of the year to 2.88 per cent by the end of June, being in the group of banks with the lowest CASA among the surveyed banks. Similarly, the demand deposits at Bac A Commercial Joint Stock Bank (BacABank) decreased by 27.4 per cent in the first two quarters of the year, causing its CASA to plummet to a very low level of just 1.21 per cent. Some other banks also recorded sharp fall of demand deposits, including Saigon Hanoi Commercial Joint Stock Bank (SHB, down by 21 per cent), Export Import Commercial Joint Stock Bank (Eximbank, down by 18.4 per cent) and Southeast Asia Commercial Joint Stock Bank (SeABank, down by 14.8 per cent). In particular, SHB is one of the banks that recorded a sharp decline in CASA in the period, down from 9.38 per cent at the beginning of the year to only 6.95 per cent by the end of June. At Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank), the CASA also decreased 2.28 per cent to 12.27 per cent, while SeABank saw a decline of 3.71 per cent to 8.73 per cent. Even the three banks which have strong CASA including Military Commercial Joint Stock Bank (MBB), Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) also recorded a decline in CASA. Despite leading the surveyed group with CASA of 35.61 per cent, MBB’s experienced a slight CASA decline from 38.38 per cent at the beginning of the year. Similarly, Vietcombank and Techcombank respectively recorded CASA falls of 1.98 per cent and 0.05 per cent. The decline in banks’ demand deposits has been recorded as Viet Nam’s economy has been negatively affected by the COVID-19 pandemic, including a social distancing period. Statistics of the State Bank of Viet Nam also showed the amount of deposits on payment accounts of the banking system experienced a sharp decline. According to experts, the high CASA ratio will create a premise for the bank to improve its net interest margin (NIM) while keeping the lending rates at competitive levels in the market. That is also the reason why in the past few years, the Vietnamese commercial banking system has witnessed an increasingly fierce race to increase CASA, with banks introducing many policies to attract demand depositors, such as exemption of transaction, money transfer and withdrawal fees./. Vietnam to develop infrastructure for border trade with Cambodia The Prime Minister has issued a plan to implement a memorandum of understanding on the development and connection of border trade infrastructure between Vietnam and Cambodia. The implementation started on August 19 and will last until October 2022. If the MoU is extended, the plan will continue to be carried out for three more years. According to the plan, ministries, sectors, and localities involved are set to organise communications campaign to raise awareness on the content of the MoU; develop the Vietnam – Cambodia border trade infrastructure; promote trade with Cambodia; and share information and hold training courses; among others. In the two years 2021 and 2022, they will carry out surveys for the building of at least a border market; run activities to encourage Vietnamese and Cambodian businessmen to invest in border trade infrastructure; increase related trade and investment promotion events; and support firms in introducing and distributing goods at border markets, trade centres, and trade fairs. Vietnam and Cambodia share a land borderline of nearly 1,137km, passing through ten Vietnamese provinces of Kon Tum, Gia Lai, Dak Lak, Dak Nong, Binh Phuoc, Tay Ninh, Long An, Dong Thap, An Giang, Kien Giang and nine Cambodian provinces of Rattanakiri, Mondulkiri, Kratie, Tbong Khmum, Svay Rieng, Prey Veng, Kandal, Takeo and Kampot./. Laos faces serious budget deficit An elevated fiscal deficit will result in growing public debt, which will ramp up pressure on Laos' debt servicing capacity amid the COVID-19 crisis, the Vientiane Times reported on August 21. The Lao Government has estimated that the budget deficit will rise from 6.69 trillion kip (700 million USD) , equal to 3.7 percent of the country’s gross domestic product (GDP), to 10.3 trillion kip (1.1 billion USD), or 5.7 percent of the GDP. Chairman of the Lao National Assembly’s Planning, Finance and Audit Committee, Dr Leeber Leebouapao told the paper that the government is seeking ways to address the country’s debt following a revenue shortfall. The government may attempt to issue bonds to mobilise more funds or borrow more money from various sources to repay debts and address the projected budget deficit, he said. The World Bank (WB) also stated that public debt is expected to rise to around 65 percent to 68 percent of GDP in 2020, leaving Laos at high risk of debt distress. In June, Prime Minister Thongloun Sisoulith told the National Assembly that the government will issue bonds for the rest of this year to repay debts. Economists have recommended the government to assist the private sector, notably small and medium-sized enterprises to lower their production costs in order to boost productivity for exports./. 12th CLMV Economic Ministers’ Meeting held online The 12th Cambodia - Laos - Myanmar - Vietnam (CLMV) Economic Ministers’ Meeting was held online on August 24. The meeting is a key event within the framework of the 52nd ASEAN Economic Ministers’ Meeting and related meetings scheduled for August 22-30 in Hanoi. Attending were Cambodian Minister of Commerce Pan Sorasak, Lao Minister of Industry and Commerce Khemmani Pholsena, Myanmar Minister of Investment and Foreign Economic Relations Thaung Tun, and ASEAN Secretary General Dato Lim Jock Hoi. Minister of Industry and Trade Tran Tuan Anh, who led the Vietnamese delegation, proposed the CLMV countries enhance policy coordination to overcome difficulties caused by COVID-19, continue activities to link firms together, and remove obstacles facing exports and imports and cross-border trade. Regarding the progress of the CLMV economic cooperation action plan for 2021-2022, many activities have been basically completed or achieved positive results. Ministers agreed to adopt action plans in the fields of trade and investment cooperation, the delivery of regional commitments, post-pandemic recovery, the CLMV development framework, and human resources development. They pledged to assign heads of delegations at the ASEAN Senior Officials’ Meeting (SEOM) to strengthen coordination and propose new and practical projects in the new era. Anh suggested CLMV countries remain active and proactive in seeking resources support from development partners to carry out regional cooperation projects. He said countries should outline new joint projects on capacity improvement and technical support in the fields of digital economy, innovation, start-up facilitation, smart production, 5G eco-systems, transportation, trade, and logistics infrastructure connectivity. In order to ensure the operation of supply chains, he proposed that countries facilitate trade, simplify processes and procedures for exports-imports and customs clearance in border areas, and enhance transportation and logistics connectivity. CLMV countries should continue sharing experience and information on policymaking, and create a favourable environment for attracting shifting investment waves, towards turning CLMV into an attractive destination for investors, he said. Speaking highly of the Vietnamese minister’s proposals, participants agreed on the need to boost cooperation to mitigate the COVID-19 pandemic’s impacts on economic-trade links, maintain trade and investment flows, and improve the countries’ capacity to cope with the pandemic and economic recovery. Source: VNA/VNN/VNS/VOV/VIR/Dtinews/SGT |
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VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 2602:44 Creating sustainable businesses in Vietnam
Businesses need to leverage innovative technologies to succeed in today’s competitive digital marketplace, experts have said. But for Vietnam’s small and medium-sized enterprises (SMEs) this could be a challenging prospect, they admitted. In a survey by Japanese electronics giant Epson of 864 SMEs in six of Southeast Asia’s largest countries by GDP, 62 percent of respondents in Vietnam cited cost as the reason for not updating technologies. With SMEs contributing 40 percent of Vietnam’s GDP, it is vital for them to be competitive in the regional and global markets. This means that business owners need to be building sustainable businesses that can adapt easily to change from an operation and environmental perspective. SMEs are at the heart of the nation’s economy, employing 51 percent of the workforce and accounting for 98 percent of all enterprises, and as such need to be empowered with the right tools to participate successfully in the emerging digital economy, the report said. Companies are also becoming increasingly aware of the need to act sustainably since this can positively impact company efficiency, brand value and reputation, growth, and stakeholder relations. From an operations perspective, SMEs can benefit from the adoption of sustainable business practices through the reduction of operating costs by selecting hardware that supports business objectives and streamlines energy use. Streamlining energy usage and reducing SMEs’ carbon footprint is an ideal way to lower operating costs in the long run and be better to the environment. For example, retailers can now deploy point-of-sale (POS) printers that connect easily with other technologies and make printing reliable and easy to use for business owners. Eighty one percent of Vietnamese respondents saw this connectivity as a key benefit. Offices can also manage printing costs more sustainably with environment-friendly heat-free printers, and on-demand colour label printers not only save costs but also reduce wastage – a boon for SME food manufacturers chasing product sales. However, fostering digital transformation requires more than the adoption of new technologies. Today this means creating environments where businesses can leverage innovation to deliver meaningful change that drives positive business outcomes. Epson believes that sustainability can be addressed through investment in new technologies that also have a reduced environmental impact. The company’s environmental vision for 2050 sets out a goal to provide products and services that contribute to the environment by making efficient use of energy and resources and reducing the environmental impacts of production processes and customers’ business processes. Travel firms need customers to assist through pandemic Tourism is among the sectors hit hardest by COVID-19 and many travel companies have adopted measures to retain customers and create momentum for their post-pandemic recovery. 5,000 people should have gone on tours in August with this travel company. With COVID-19 breaking out again in July, however, they simply can’t go, but only 5% have cancelled and requested a refund. The remainder have agreed to delay their plans until the pandemic has been contained or to change their destination. This has seen the company avoid financial catastrophe. According to industry insiders, travel companies need to retain at least 20% of their customers to survive the pandemic. Many have linked together to overcome these turbulent times. While travel companies have tried to adjust their cash flow they also need support from customers and especially the Government. Once they access Government policies on lower taxes and extensions to debt repayments and social security payments, travel companies would feel more confident in fighting the COVID-19 crisis. Saigon Hi-tech Park expects to rake in 19 bln USD in investment in 2020 The Saigon Hi-tech Park (SHTP) in Ho Chi Minh City expects to draw about 19 billion USD in investment this year, according to its management board. The value of hi-tech products created at the SHTP would reach 95 percent of the yearly plan, contributing to the city’s socio-economic stability and budget. Deputy head of the SHTP management board Le Bich Loan said, to attract investment, it has held meetings with 26 investors, including 15 domestic and 11 foreign firms, who were looking for business opportunities in the hi-tech park. Earlier this year, the SHTP Labs has inked an agreement with the Korea Institute of Industrial Technology (KITECH) to establish a Vietnam-Korea training centre at the park. Agriculture exports face difficulties due to quarantine interruptions COVID-19 has had a negative impact on the global agricultural supply chain, including from interruptions to quarantine and other control measures. The Hanoi Irradiation Centre is one of two facilities in Vietnam meeting standards on the irradiation of fresh fruit for export to the US and Australia. Since the beginning of the recent crop, the centre has received just one request to irradiate 10 tons of longan for export to Australia. The longan output in Son La and Hung Yen provinces is generally more than 120,000 tons by this time of year. The irradiation process includes on-site quarantine performed by a plant quarantine specialist from the US. Due to COVID-19, however, the expert is unable to return to Vietnam to work. This business currently has 15 tons of mangoes, 17 tons of dragon fruit, and 36 tons of longan waiting for quarantine before being exported to the US. If no timely solution is adopted the business will face huge losses. The local agriculture sector is now strengthening and restoring production as supply of many goods increases as harvests are completed. The prevalence of COVID-19 in many import markets remains a complex matter, however. Exports seem likely to face a range of difficulties in the time to come. Vinh Phuc’s investment promotion efforts pay off The northern midland province of Vinh Phuc has reaped significant achievements in investment attraction thanks to its efforts in renewing methods in this regard. During the 2016-2019 period, apart from investment promotion activities at home, the province has promoted its images abroad, especially developed countries like the UK, Germany, the Czech Republic, Italy, Japan and the Republic of Korea (RoK). During working trips to Japan, the RoK, Europe (the Netherland, Germany and the Czech Republic) and the US, Vinh Phuc’s delegations successfully organised six investment promotion conferences with the participation of nearly 500 investors. The province’s officials also had working sessions with representatives from 100 organisations and businesses in these countries, contributing to promoting its images and position to foreign investors. During a large-scale investment promotion conference held in 2018, Vinh Phuc approved investment plans and signed memoranda of understanding on 10 projects with total capital amounting to nearly 1.5 billion USD. Last year, at another conference introducing Vinh Phuc’s potential to businesses from Europe and the US, the relevant sides also signed memoranda of understanding on investment cooperation and support to Vinh Phuc in attracting EU-invested projects. On this occasion, Vinh Phuc also signed three memoranda of understanding on three projects worth over 1 billion USD with T&T Group. Notably, provincial leaders had meetings with ambassadors and officials of Vietnamese representative agencies abroad, and representatives of international organisations and business associations. At the same time, they met with prestigious groups at home and abroad to call for their investments. Vinh Phuc province has prioritised major projects with high-quality, using high-technologies. Between 2016 and 2019, the province attracted 2.5 billion USD in foreign direct investment (FDI) and some 55.28 trillion VND (2.38 billion USD) in domestic direct investment (DDI). By the end of June 2020, Vinh Phuc was home to 392 FDI projects with total registered capital of 5.57 billion USD, according to statistics of the provincial Department of Planning and Investment. The projects were run by investors from 18 countries and territories. The Republic of Korea has the most projects with 210, followed by Japan, China and Thailand. Many global groups have made their presence in Vinh Phuc, such as Toyota, Honda, Sumitomo from Japan, Piaggio from Italy, De Heus from the Netherlands, Daewoo, Haesung Vina, Partron Vina, Cammsys from the Republic of Korea, Prime Group from Thailand and Weldex from the US. The province has also attracted 782 DDI with total investment surpassing 93.7 trillion VND (around 4 billion USD at current exchange rate). Several major Vietnamese corporations have chosen Vinh Phuc for their investment, such as FLC, Vingroup, SunGroup, and Viet Duc Steel. The flow of investment capital, both FDI and DDI, into the province in the first six months of this year decreased as a consequence of the coronavirus pandemic. Total FDI capital in the period stood at 135.6 million USD, equivalent to only 32.1 percent of the figure in the same period last year. The money was poured into 14 new projects and 19 existing ones. Meanwhile, DDI capital attraction in the period came to 2.67 trillion VND, equivalent to 51.5 percent of the figure in the same period of 2019. The capital was pumped into 24 new projects and 9 existing ones. Vinh Phuc has designated 18 industrial parks with total area of 5,228 ha in a master plan to 2020 approved by the Prime Minister. By now nine industrial parks have received investment certificates. Industrial parks in Vinh Phuc have good technical infrastructure and professional management, thus contributing to attracting investors to the province. They reported an average occupancy rate of nearly 62 percent. Thanks to the province’s endeavours to complete infrastructure in industrial parks and a transport system connecting them, as well as efforts to improve the business environment and reform administrative procedures, Vinh Phuc has become more popular among foreign investors. Vietnamese goods exhibition centre inaugurated in Thailand The Business Association of Thai-Vietnam (BAOTV) inaugurated the Vietnamese Goods Exhibition Centre at VT-Namnueng shopping mall in the Thai northeastern province of Udon Thani on August 23. Speaking at the ceremony, BAOTV Chairman Ho Van Lam said the centre will introduce and develop distribution channels of Vietnamese goods in Thailand, making them more popular in the country. Vietnamese Consul General in Khon Kaen city Hoang Ngoc Son said the inauguration of the centre not only makes it easier for consumers in the northeast of Thailand to access high-quality Vietnamese goods but also helps the two countries’ firms access trade and explore business opportunities, towards a more balanced trade between the two nations. He hoped that the BAOTV will continue striving to open more similar centres in supermarkets and shopping malls, turning them into destinations for tourists. Vice Governor of Udon Thani province Wanchai Janthorn spoke highly of contributions by the Thai community of Vietnamese descent and the Vietnamese Thai business people in particular to Thailand’s socio-economic development. The northeast of Thailand is now home to over 70,000 Vietnamese Thai people./. International forum Franconomics 2020 to be held in October The international forum Franconomics is scheduled to take place in Hanoi capital, northern Hung Yen province, and Hai Phong port city on October 22-23 with the topic “From start-up to smart-up”. The forum will be jointly held by the International Francophone Institute (IFI) and the Organisation Internationale de la Francophonie (OIF). Besides the main forum, this year’s event will feature an event themed "smart tourism: toward the sustainable development, a harmony of economy, culture and environment". Other activities include the second national anthem singing festival, a pitching day for start-ups, and a launching ceremony of Hung Yen Digital Museum and introduction of other digitalisation projects. Franconomics is a multidisciplinary dialogue on important socio-economic topics for scientists, businesses, investors, and policymakers both inside and outside the French-speaking community with its 88 members and observers. Each year it is organised in a different place of Vietnam to create opportunities for connecting and promoting cooperation, accessing and supplying technology, high-quality workforce, expanding Partner Network for Development./. Indonesian gov’t promises nationwide 4G internet services by 2022 The Indonesian government is committed to accelerating a “national digital transformation” through five priority programmes, Indonesian Communication and Information Minister Johnny G. Plate has said. The programme includes establishing and extending the geographic coverage of 4G services nationwide within the next two years. During a public discussion in Jakarta on August 22, Johnny affirmed that by the end of 2022 at the latest, 4G services will be available across the country which will enable all citizens to migrate and shift into a digital society era. Statistics showed that some 12,500 villages and sub-districts across the country currently do not have reliable access to the internet. The Indonesian government will increase the rate of internet access nationwide, decrease disparity of internet access between regions and establish a fast internet connection, he stressed. Johnny also vowed to develop the public’s digital literacy, especially for micro, small and medium enterprises, as well as farmers and fishermen. Previously, the ministry collaborated with more than 100 communities in the country to carry out digital literacy programs nationwide to educate the public on staying safe while navigating the digital world and understanding the signs of online fraud. According to the Global World Digital Competitiveness Index, Indonesia ranked 56th out of the 63 countries in 2019, despite having 175.4 million internet users./. Quang Ninh enjoys potential for forestry tourism development The northeastern province of Quang Ninh has a lot of advantages to develop forestry tourism in addition to marine, cultural and spiritual tourism, according to experts. The locality is home to Yen Tu National Forest, Dong Son-Ky Thuong Natural Conservation Area, and Bai Tu Long National Park. All are valuable natural resources to develop forestry tourism. According to scientists, Yen Tu forest is home to a wide variety of animal and plant species, including 830 kinds of plant, of which 38 have been recognised as valuable and rare such as erythrophloeum fordid, teakwood, textured wood and pedocarpus fleurgi. Yen Tu also has a rich fauna, of which 23 species have been recorded on Vietnam’s Red book for their scarcity. Covering an area of over 2,600 ha, of which over 1,700 ha is natural forest, Yen Tu is not only a well-known tourist attraction, but also a centre of Vietnam’s Buddhism. Meanwhile, Dong Son – Ky Thuong natural conservation area has been known for its diversified biodiversity value on a vast land. The area is abundant with flora and fauna. It has 1,163 species of woody and herbaceous plants and 224 species in four groups of birds, animals, reptiles and amphibians, including 51 rare and specious species of flora and fauna which are in Vietnam’s Red Book and one in the World’s Red Book. Located within Bai Tu Long Bay and near the UNESCO-recognised Ha Long Bay, Bai Tu Long National Park is a natural treasure for Vietnam. Formed on June 1, 2001, the park covers 15,783 hectares, of which forests and forest land make up 6,125 ha on more than 40 islands, and water surface accounts for 9,650 ha. It is home to 1,909 species of fauna and flora, including 72 types of animals and 30 kinds of plants listed in Vietnam’s Red Book of endangered species./. Trade surplus amounts to 10 billion USD by mid-August Exports continued to recover in the first half of August, helping the country record 10 billion USD in trade surplus so far this year, according to the General Department of Vietnam Customs. From August 1 to 15, the country earned nearly 12.7 billion USD from exports while importing 10.8 billion USD worth of goods. That added up to a total of more than 160.2 billion USD in overseas shipments during the seven months and a half, rising by some 1.8 percent or nearly 3 billion USD year on year. Meanwhile, imports fell by about 4 billion USD to 150.2 billion USD. That resulted in a trade surplus of 10 billion USD by mid-August. Some outstanding export items in the first half of August included mobile phones and components (2.58 billion USD); computers, electronic products and components (1.9 billion USD); textile-garment products (1.36 billion USD); machinery, equipment and spare parts (1.11 billion USD); and footwear (652 million USD). During the period, major import commodities were computers, electronic devices and components (2.9 billion USD); machinery, equipment and spare parts (1.58 billion USD); mobile phones and components (759 million USD); and fabric (447 million USD), statistics show./. Thai central bank to help COVID-19-hit firms with debt restructuring The Bank of Thailand (BoT) will focus on assisting businesses, especially those severely affected by COVID-19 pandemic, to restructure their debts, the bank’s Governor Veerathai Santiprabhob said on August 21. Veerathai said that readjusting fiscal policy can help the Thai economy recover from the impact of COVID-19. However, Veerathai said the central bank cannot lower its 0.5 percent benchmark interest rate, as it is already at a record low. The BoT's debt restructuring scheme will allow debtors to suspend principal and interest payment for up to six months, said the governor. Normally, debt restructuring is available together with loan offerings, said Veerathai. He said that the additional loan guarantee scheme will support small and medium-sized enterprises that have suffered from the pandemic. The governor said that Thai commercial banks have withdrawn more than 75 billion THB (2.37 billion U.S. dollars) of the central bank's soft loans since its implementation, with total loans amounting to more than 500 billion THB (15.8 billion U.S. dollars). Under the conditions of the soft loan scheme, banks cannot offer credit lines to all customers, explained Veerathai./. Over 78 percent of businesses listed on HNX report profit in Q2 More than 78 percent of businesses listed on the Hanoi Stock Exchange (HNX), or 268 firms, reported profit in the second quarter of 2020, with combined value of 11.38 trillion VND (491 million USD), down 1.14 percent year on year. According to reports of listed businesses, in the first half of this year, total after-tax profit of companies listed on the northern bourse reached 10.67 trillion VND, representing a fall of 2.8 percent year on year. Seven out of 11 sectors suffered decrease in profit over the same period in 2019. Meanwhile, five out of 11 sectors reported year-on-year increase in profit, with trade-service-accommodation-restaurant and finance sectors recording highest rises with 56.8 percent and 11.7 percent, respectively. However, only 17 out of 48 businesses in the trade-service-accommodation-restaurant enjoyed profit in the first half of 2020. At the same time, the sharpest fall in after-tax profit was seen in the real estate sector at 79.4 percent to 103.7 billion VND in the first half of 2020 from 634.3 billion VND in the same period of 2019. It was followed by agro-forestry-fisheries sector with a decrease of 46.9 percent. Downturn was also seen in mining-oil and gas sector at 12.6 percent in the first half of this year, mostly because of adverse impacts of the COVID-19 pandemic. At the same time, 74 businesses posted losses, with combined value of 711.9 billion VND. Six out of 11 sectors saw year-on-year increases in losses in the first six months of this year, led by real estate sector which saw total losses shoot up 341 percent to 121.3 billion VND in the first half of 2020. The mining-oil and gas sector followed with a 225 percent increase in the value of losses, and transport-warehouse at 241 percent. The major reason behind the situation was the COVID-19 pandemic, which forced companies to suspend their production and business./. Indonesia’s July trade surplus highest in nine years Indonesia recorded 3.26 billion USD in trade surplus in July, a nine-year high, as the export value reached 13.72 billion USD while imports were 10.46 billion USD. Coordinating Minister for the Economy Airlangga Hartarto said recently that the July surplus was mainly influenced by improved export performance, particularly non-oil and gas exports, and reduced demand for imports of consumer goods. Several commodities that contributed to exports in the industrial sector include precious metals, jewelry/gems, vehicles, iron and steel, as well as electrical machinery and equipment. This means that Indonesia’s main export commodities are still highly competitive amid the decline in global demand as a result of the COVID-19 pandemic, the official noted. Meanwhile, main import items include consumer goods (accounting for 10.63 percent of total imports last month), capital goods (18.79 percent), and raw/auxiliary materials (70.58 percent). Imports of consumer goods experienced a decline in demand by 21.01 percent month on month to 1.11 billion USD, which is partly attributed to the success of the programme to increase the consumption of domestically produced goods. The decline in imports of raw/auxiliary materials is also expected to provide opportunities for domestic industries/business actors to be able to supply them and take over the share of imports. Besides, the increase in imports of capital goods is a positive signal in line with the rise in the Manufacturing Purchasing Managers Index (PMI), which shows that production activity has also begun to increase, according to the Coordinating Minister for the Economy./. Vietnam among markets sustaining growth this year: The Economist In a recent article, The Economist said a few emerging markets will still grow this year, including Vietnam. It noted that this year could be a good one for what economists call convergence. This normally takes place when poor economies grow faster than rich ones, narrowing the income gap between them. This year will be a bit different. Few emerging markets will grow at all – perhaps China, Egypt and Vietnam. But because advanced economies will probably retreat even faster, the gap between them will narrow, the article said. The article mentioned the World Bank’s new book - “Global Productivity: Trends, Drivers, and Policies”, in which the bank uses an algorithm to sort through many combinations of countries, looking for groups that seem to be converging with each other. Based on the productivity performance of 97 economies since 2000, the bank identifies five clubs. The three gloomiest groups comprise fairly poor countries. A fourth contains some big ones of unfulfilled potential, such as Argentina, Brazil, Indonesia, Mexico and South Africa. The most successful club spans all today’s advanced economies as well as 16 emerging markets, such as China, India, Malaysia, Thailand and Vietnam. According to the book, poorer members tend to grow faster than the rich ones, at a pace that would halve the productivity gap between them every 48 years. The authors of the World Bank’s book worry that the COVID-19 pandemic will inhibit investment, shorten supply chains and breed insularity, all of which could hamper convergence. But they also note some potential silver linings. Crises, for instance, can encourage structural reforms; the lack of upkeep of outdated capital during dark times can hasten its replacement with newer technologies in the recovery, according to The Economist./. Bamboo Airways leads in on-time performance in August Bamboo Airways led Vietnamese airlines in on-time performance (OTP) in August with an average rate of 95.6 percent, according to the Civil Aviation Administration of Vietnam (CAAV). The CAAV reported that between July 19 and August 18, Bamboo Airways operated 2,040 flights, of which 1,950 took off and landed in on time. The airlines’ OTP was higher than the sector’s average rate in the month at 89.6 percent. Bamboo Airways has taken the leading position in the field consecutively since May. In July, it recorded an OTP rate of 95.4 percent. Vietnam Airlines came second with an average OTP rate of 90.5 percent, followed by Pacific Airlines (formerly Jetstar Pacific) and Vietjet Air at 88.8 percent and 86.3 percent, respectively. The agency pointed to six major reasons behind the delay and cancelation of flights, including equipment and services at the ports, aviation management, weather conditions, airlines’ operations, and late return of aircraft. Experts held that in the context of complicated developments of the COVID-19 pandemic and the repairing of Noi Bai and Tan Son Nhat International Airports, the high OTP of airlines showed their considerable efforts. A representative from Bamboo Airways said that the carrier has strictly followed epidemic preventive measures in accordance with standards of the Health Ministry and the CAAV. Passengers have been advised to abide by regulations in pandemic prevention and control, including wearing face masks throughout the flights and conduct health declarations, said the representative./. ADB pledges to double loan commitments to Indonesia The Asian Development Bank (ADB) has pledged to double loan commitments to Indonesia this year to facilitate economic recovery in one of its biggest client countries. ADB Country Director Winfried F. Wicklein said on August 19 that the bank usually commits 1 billion USD to 2 billion USD each year for Indonesia, mostly in infrastructure projects, particularly those related to energy. However, in the face of COVID-19, ADB is stepping up in support and will more than double it this year, he said during a webinar held by state-owned geothermal energy company PT Geo Dipa Energi and infrastructure financing guarantee agency PT Penjaminan Infrastruktur Indonesia. He also called on the Indonesian government to invest in renewable energy as part of the country’s economic recovery plans. ADB is particularly supportive of geothermal power, which the Manila-based lender considers ideal to spur even growth across the archipelago. ADB, a self-described leading financier of geothermal projects in Indonesia, recently approved 300 million USD to expand geothermal power plants in Dieng of Central Java province and Patuha of West Java province. ADB adds to a list of organisations, including the Paris-based International Energy Agency (IEA) and Jakarta-based Institute for Essential Services Reform (IESR), that have explicitly called for the Indonesian government to invest in a green economic recovery. Indonesia, which holds the world’s largest known geothermal reserves, only harnessed 8.9 percent of its total 23.9 gigawatts of geothermal potential last year, according to official data./. Monday, August 24 2020 News bizhub.vn ovietnam.vn About Us Contact Us HOME POLITICS & LAWS SOCIETY ECONOMY LIFE & STYLE SPORTS ENVIRONMENT Viet Nam News Society Farmers escape poverty thanks to custard apples Growing custard apples has helped poor farmers in northern Vĩnh Phúc Province escape from poverty in recent years. Previously, farmers in Bồ Lý Commune of Tam Đảo District just planted the fruit tree in their fields and gardens. After many years of experience, they found the trees were suited to the climate and soil conditions so they decided to grow the trees on large scale at the feet of mountains and hills. The people then started to apply science and technology to their farming work, so the custard apples of Bồ Lý Commune have good quality and are favoured across the country. “Previously, the custard apples in Bồ Lý Commune used to be mainly grown in small gardens because they were not identified as main crops bringing high incomes to locals,” said Trần Nam Thanh, the commune People’s Committee chairman. “Over the past 10 years, when the fruits were more and more known and loved by many customers, the area of the tree cultivation was extended year by year,” said Nam. Many rice fields which had low productivity were shifted to custard apples, Nam said. Today, about 300 households in the commune grow the trees on a total area of 120ha, double the figure of five years ago. “Bồ Lý is a poor mountainous commune. The terrain is divided, causing difficulties for agricultural production,” said Đỗ Xuân Hoan, chairman of the commune’s farmers’ association. “However, thanks to knowing how to exploit the potential, the Bồ Lý people boldly converted the crop structure to put the custard apples in commodity production,” said Hoan. Many households of the commune have escaped from poverty thanks to the fruit. The economic efficiency from the fruit is calculated to be 5-7 times higher than growing rice, corn and beans. The commune is now covered with the green of the trees. Unlike planting and taking care of the fruits previously, now the farmers have been guided to apply cultivation techniques such as fertilising, watering, trimming, and pollinating so the productivity is much higher. The fruit tree will bear fruits for the first time two years after being planted and from the third year on, the trees bear fruit continuously. Thus, comparing to other fruit trees, the custard apple tree requires quite a short time. According to Hoan, the custard apple trees grow thicker than other perennial fruit trees and each hectare can hold 800 trees. However, in Bồ Lý Commune, the trees are sparser due to the hilly areas. Thanks to these techniques, custard apple-growing households can earn about VNĐ100 million (US$4,300) per crop. Bùi Huy Hoàng in Trại Mái Hamlet has 1,400 trees and last year, the trees got their first fruits and he earned VNĐ60 million (US$2,600). This year, his family expects to get VNĐ150 million (US$6,500) for the crop. The price of the fruit ranges from VNĐ45,000 to 75,000 (US$1.9-3.2) per kilo. According to Trần Thị Ngọc Bảo, a trader of Bồ Lý Commune, at the peak of crop, she could buy 1.3-1.4 tonnes of the fruit a day. The development of custard apple trees on the hilly land in Bồ Lý Commune has helped reduced poverty in the area. In May 2018, the Bồ Lý custard apples were granted a certificate of trademark registration by the National Office of Intellectual Property of Việt Nam. This helped increase the fruits’ values and create opportunities to expand markets. Footwear businesses adapt to pandemic The leather and footwear industry is having to find new supply and demand sources to overcome difficulties due to the impact of the COVID-19 pandemic. Seventy per cent of raw materials for domestic leather and footwear production are imported from China, according to Phan Thi Thanh Xuan, general secretary of the Viet Nam Leather, Footwear and Handbag Association (Lefaso). Therefore, the pandemic has caused difficulties for domestic leather and footwear enterprises. Many businesses have sought material sources from other markets such as India, Europe, Singapore, and Japan to maintain production. Along with the diversification of raw material sources, leather and footwear companies have been more active in finding partners. Many businesses shared that some markets in Europe and Japan had shown signs of recovery with the disease better controlled. The Viet Nam - EU free trade agreement (EVFTA), which took effect from the beginning of this month, also helped leather and footwear businesses expand markets and get more orders, said Xuan. The pandemic was still complicated, but if enterprises worked hard to find partners and improved their competitiveness, the opportunities would still be great, said experts. Businesses and experts said that trade promotion activities, as well as support from management agencies, should be further promoted. The Lefaso general secretary said the leather and footwear industry needed to overcome weaknesses in chain linkage. She also recommended a separate decree for the leather, footwear, textile and garment industry to develop the fashion industry in the country. The report on industrial production and trade activities in the first seven months of this year of the Ministry of Industry and Trade found the production of leather and related products increased by 7.6 per cent last month compared to the previous month but was down 4.4 per cent over the same period last year. It decreased by 4.2 per cent in the first seven months of the year compared to the same period last year. Footwear export turnover of all kinds was estimated at US$9.53 billion in the seven months, a year-on-year drop of nearly 8 per cent. Imports of raw materials for the industry also reduced by 14.1 per cent in the first six months. Viet Nam aiming for a transparent and legal wood industry Viet Nam is aiming to build a transparent and legal wood industry to support exports of timber products and bolster the domestic timber manufacturing industry. The need emerges as Viet Nam becomes one of the world’s largest exporters of wood and wooden products, putting it under scrutiny from major trading partners. In June, the US Department of Commerce (DOC) initiated an investigation into tax evasion for plywood products imported from Viet Nam and suspected use of Chinese materials. Other major importers of Vietnamese timber products including the European Union (EU), China, Japan and the Republic of Korea are also eyeing stricter traceability regulations to ensure legal timber origins. To facilitate exports of this key product, Viet Nam is trying to build the Viet Nam Timber Legality Assurance (VNTLAS) system along with the early issuance of EU Forest Law Enforcement, Governance and Trade (FLEGT) licence for exports of wood products to the EU market. Joining the EU in implementing the FLTGT Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT) will not only promote exports of Vietnamese wood products to the EU but also increase prestige and open doors to other markets. The agreement is in line with Viet Nam’s Law on Forestry, both prohibiting the import, export, exploitation, processing and trading of illegal timber. “Boarding the VPA/FLEGT ship with the EU would take the domestic timber manufacturing industry to another level”, said Ngo Sy Hoai, Vice President, Secretary-General of Viet Nam Timber and Forest Product Association (VIFORES). Beneficiaries would include more than 3,000 processing and exporting enterprises, 340 craft villages and approximately 1.4 million forest farmer households. According to Hoai, most Vietnamese firms processing and exporting timber to the EU can meet these standards. “This action would only systematise what the industry has been doing, now placing everything under a legal framework for transparent enforcement,” he said. To fully implement VPA/FLEGT, the Ministry of Agriculture and Rural Development (MARD) has completed a draft decree for implementing the Viet Nam Timber Legality Assurance to submit to the Government for promulgation. VNTLAS is a national system to ensure compliance with legal timber legislation at each stage of the supply chain, including harvesting, importing, purchasing, selling, transporting, processing and exporting. The decree also requires the classification of enterprises into two groups: Group I and Group II. Group I features firms fully complying with legal timber regulations and are not subject to examination and origin verification when filling to export. VNTLAS works on the basis of enterprises’ self-declaration and self-responsibility through the network of the Enterprise Classification Information System and authority’s verification. This will decrease administrative work for firms while still allowing authorities to keep the origins of timber products in check and encourage enterprises’ responsibility in law enforcement, according to Deputy Minister of MARD Ha Cong Tuan. Enterprises that do not meet the classification criteria will be subject to the inspection and certification of origin before being granted export licences to the EU. According to a quick survey conducted by MARD, more than 90 per cent of processing and exporting firms in Viet Nam belong to Group I. Viet Nam aims to have all firms in the wood industry to be classified as Group I. However, deputy director-general of the Department of Science and Technology and International Cooperation Nguyen Tuong Van has warned that “the most difficult time still lies ahead”. When the decree comes into effect, but without FLEGT licences, enterprises still have to prove their product origin to be eligible for export. “Issuance of FLEGT certification for wood exporters to the EU needs to be done as soon as possible," she added Besides, the classification of enterprises can only be carried out six months after the implementation of VPA/FLEGT. “If VNTLAS can be operated at the beginning of 2021, the first FLEGT can only be issued at the end of 2021 or early 2022," Van said. Viet Nam shrimp exports to South Korea to edge up: VASEP Shrimp exports to South Korea are likely to increase by 5 per cent this year due to steady demand, high export prices and tariff incentives under a bilateral free trade deal, the Viet Nam Association of Seafood Exporters and Producers has said. South Korea is the fifth largest importer of the crustacean from Viet Nam, and accounts for 10.7 per cent of the latter’s total exports. Though not increasing sharply this year, exports to South Korea have been in positive territory since the beginning of the year. Shipments in the first seven months have been worth US$179 million, a 5.8 per cent increase year-on-year. In the second quarter they were worth US$91.2 million, up 4.9 per cent, with white-legged shrimp and tiger prawn accounting for 83 per cent and 12.1 per cent. Under the Viet Nam-South Korea Free Trade Agreement, Viet Nam is exempt from import tax on shrimp in South Korea up to 15,000 tonnes a year. Viet Nam only ships around 2,500 tonnes. To utilise the opportunity, experts said shrimp exporters need to improve quality and remain abreast of South Korea’s procedures and requirements to overcome technical barriers. Ho Quoc Luc, chairman of shrimp exporter Fimex Viet Nam, said local authorities need to call for investment in building shrimp farms of international quality, build irrigation and other infrastructure and enable high-quality shrimp production. Companies must ensure quality and comply strictly with all the terms in their contracts such as delivery time and packaging design, he said. In recent years Viet Nam has been the leading shrimp supplier to South Korea, accounting for 52 per cent of that country’s total imports. The key export markets are Japan, the EU, South Korea, China, and the US. According to VASEP, exports in the first five months of the year were up 2.3 per cent at $1.2 billion, with white leg shrimp and tiger prawn accounting for 69.5 per cent and 19.2 per cent. Many 3-, 4-star hotels in HCM City on distress sale Many hotels and motels in the bustling central districts of HCM City are being sold off as the COVID-19 epidemic has caused their business to collapse. During the first wave of the epidemic, when the country was under social distancing in April, there was some selling or long-term lease. But since the end of July, when a second wave came, the lack of business and continuing pressure from bank loans are forcing many to sell out. Many are unable to continue operations, experts said. In Districts 1 and 3, boards announcing sales can be seen every dozen metres. On Ly Tu Trong Street in District 1, many three- and four- star hotels are on offer at VND200-1,200 billion (US$8.66-52 million). A four-star property at the intersection with Chu Manh Trinh Street has 18 floors and 150 rooms, and the owner is looking to sell it for VND1.2 trillion, according to Tran Trung Hieu, its manager. That price is 15 per cent lower than before the outbreak, but it is still hard to find a buyer. A three-star hotel with 110 rooms near the Phu Dong intersection in District 1 is asking for VND 230 billion or VND 800 million a month if leased, 10 per cent and 20 per cent down from pre-pandemic days, according to Nguyen Trong Tien, its owner. On nearby streets like Thu Khoa Huan, Le Thanh Ton and Bui Thi Xuan, many hotels are being offered for sale at VND250-400 billion. These are mostly mid-range hotels with more than 50 rooms targeted at middle-class and foreign tourists. Several hotel chains have had to sell one or more properties to raise money to repay debts. Prices are much lower than before the outbreak. A four-star hotel with 80 rooms in HCM City that cost over VND 600 billion before the outbreak can now be bought for VND 400 billion. Many guesthouses with 10-15 rooms on Bui Vien Street in District 1 are also available to buy or lease. Nguyen Trong Hoang, the owner of a 11-room property, said: “I invested more than VND 3 billion ($130,000) over a year ago but now want to sell it for VND2 billion ($86,600) or rent it out at VND 35 million ($1,500) a month for five years. “Before the epidemic the monthly profit was VND 70-90 million ($3,000-3,900).” Five-star hotels are not doing any better as the number of foreign visitors coming to the city has dropped by 70-90 per cent since the pandemic began in March. Many have to offer discounts of 70-80 per cent on room rents to attract guests, most of whom are experts coming to the city for work. Thus, famous five-star hotels like Sofitel, Majestic, Nikko, Oakwood, New World, and Lotte have to rent their rooms at VND1.7-2.5 million ($74-107) per night. According to surveys, the number of hotels on sale increased by 63 per cent in the second quarter. Experts said more hotel owners could be selling out because the hospitality market has been down for too long and it would take at least a year to recover. Vietnam Renewable Energy Week 2020 kicks off Vietnam Renewable Energy Week 2020 opened in Hanoi on August 25, aiming to promote future sustainable energy development, ensure energy security, remove barriers towards clean energy development, and boost a green economy. The event, titled “Breakthrough to Recovery and Green Development for A Peaceful Life”, is being jointly held by the Vietnam Sustainable Energy Alliance, the Vietnam Coalition for Climate Action, the Vietnam Union of Science and Technology Associations, and others. The occasion is set to serve as an ideal platform for relevant stakeholders to provide recommendations to accelerate energy transition in an effective and sustainable manner. It is expected to put forward innovations to make breakthroughs in renewable energy development, climate, and environmental protection policies nationwide. Nguy Thi Khanh, director of the Green Innovation and Development Center under the Vietnam Sustainable Energy Alliance, said the fifth edition of the event will provide a perfect venue for policymakers, scientists, businessmen, and people to share their respective experiences, whilst devising viable solutions for boosting the country’s clean energy development and green economy. At the opening ceremony, Cecile Leroy, representative of the delegation of the European Union to Vietnam, said the EU is currently focusing on clean energy and is ready to partner with other stakeholders in an effort to fulfill the goals of developing sustainable energy and a green economy. She pointed out that the EU has signed numerous cooperation agreements with relevant Vietnamese ministries to boost sustainable energy transformation. She affirmed the EU is willing to provide both financial assistance and expertise to the nation as it strives to develop a green economy. The event is scheduled to run until August 8. Source: VNA/VNS/VIR/VOV/VNN/Dtinews/Hanoitimes |
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VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 2702:32 Ho Chi Minh City continues to assert itself as economic spearhead Ho Chi Minh City is expected to reach 10 out of 13 key targets despite difficulties and challenges both domestically and internationally. One outstanding result is that the proportion of the city’s economy in the national economy continues to rise and now accounts for more than 22%. In the first seven months of this year, the export turnover of goods from Ho Chi Minh City enterprises stood at more than 24.7 billion USD, up 5.8% against the same period last year. Despite such figure, the COVID-19 pandemic has hit the city hard. From averaging 8.27% growth each year in the 2016-2019 period, the figure for 2020 has been forecast at about 5%. Though growth is down, the proportion of the local economy in the national economy continues to rise. In 2019 it accounted for more than 22% as compared to 17% in 2000. Accounting for nearly a quarter of national GDP is a remarkable effort. Along with substantial contributions from State and non-State economic sectors, the FDI sector has also seen steady growth. The city has shifted notably towards attracting high-quality, high-tech, and high added-value FDI investment in recent years. Ho Chi Minh City is calling for investment both at home and aboard to further develop and become a high-tech economy. The city is making every effort to overcome the difficulties and actively respond to the need for economic recovery post-pandemic. It continues to focus efforts on remaining an economic spearhead that helps Vietnam fully recover. Binh Dinh applies hi-tech in crop restructuring strategy Binh Dinh province has gradually established groups of key agricultural products after six years of implementing a project on restructuring its agricultural sector towards increasing added value and ensuring sustainable development, in which the application of technology in production has been one of the top priorities. The restructuring of farming and crop conversion on ineffective rice farming have been actively pursued in the province. As soon as the winter-spring crop ended, Binh Dinh converted 4,300 ha of ineffective rice land to crops such as peanuts, corn, and peppers. The crop conversion has proven effective. In the 2019-2020 winter-spring crop, farmers in Phù Cát district planted nearly 4,000 ha of peanuts, primarily in Cát Hiệp commune. Farmers have also applied technology such as automated irrigation systems to save water, which helps to cut costs and brings greater economic efficiency. Binh Dinh is concentrating on applying hi-tech to agricultural development while improving the lives of local farmers, contributing to its socio-economic development. Binh Dinh wants two large projects to seek FDI The central province of Binh Dinh has proposed two large projects to be added to the list of those calling for foreign direct investment (FDI) in a recent report sent to the Ministry of Planning and Investment. One is an automobile plant project with a capacity of 30,000-50,000 units per year, covering 50 hectares in Becamex – Binh Dinh Industrial, Urban and Service Complex. The project is expected to need an investment of 250 million USD. Mitsubishi Motors Vietnam is looking for an appropriate destination for its second plant in Vietnam with an investment of about 250 million USD. At a working session with Binh Dinh authorities in June, Mitsubishi Motors Vietnam’s general director Kenichi Horinouchi said the south-central coastal province was among the company’s top choices thanks to the developed transport and technical infrastructure system coupled with a huge clean land fund which was favourable for building automobile component plants. Chairman of the provincial People’s Committee Ho Quoc Dung said he hopes Mitsubishi Motors would invest in the province, pledging favourable policies for foreign investors, especially the automobile plant. Dung said the province is speeding up administrative reforms and improving the investment climate, which together with the availability of clean land will create favourable conditions for foreign investors. The second project is a 300-bed hospital in Nhon Hoi Economic Zone which would cover an area of 3.5 hectares and have total investment of 15 million USD. The previous list of projects seeking investment in Binh Dinh included four, of which a 24 million USD hospital and a 4 billion USD thermo-electricity centre are no longer seeking investment as they are no longer appropriate to the province’s development planning. The other two projects, including Cat Nhon solid waste treatment project with an estimated investment of 75 million USD and a road upgrade project worth around 100 million USD, have found investors. According to the provincial Economic Zone (EZ) Management Board, Nhon Hoi EZ and other industrial zones (IZs) in the province attracted 33 FDI projects as of February, worth 506 million USD in registered capital. Twelve countries and territories have invested in EZs and IZs in the province with China, Singapore and Japan being the largest investors. The Ministry of Planning and Investment’s statistics showed Binh Dinh attracted more than 2.3 million USD worth of FDI in January-July, with two new projects and one existing project raising its registered capital./. Ministry rejects demand for Can Tho Airport aviation logistics centre The demand for air cargo transportation in the Cửu Long (Mekong) Delta through Cần Thơ remains low, meaning there is no need to develop the city’s airport into an aviation logistics hub, the Ministry of Transport has said in response to a demand by the People’s Committee. The latter had proposed to the Government at a meeting last month that the Cần Thơ International Airport should be made an aviation logistics centre to transport passengers and cargo as well as train workforce for the aviation industry. The freight traffic through the airport last year was only 9,059 tonnes as against 682,307 tonnes for HCM City and 695,325 for Hà Nội, according to the ministry. Deputy Minister of Transport Nguyễn Nhật says in a statement that a large volume of freight is needed to consider developing an aviation logistics centre. The ministry is drawing up a master plan for airports in the country in 2021-30 with surveys and proposals to develop aviation logistics centres, the statement says. Cần Thơ International Airport will feature in the plan. Many 3-, 4-star hotels in HCM City on distress sale Many hotels and motels in the bustling central districts of HCM City are being sold off as the COVID-19 epidemic has caused their business to collapse. During the first wave of the epidemic, when the country was under social distancing in April, there was some selling or long-term lease. But since the end of July, when a second wave came, the lack of business and continuing pressure from bank loans are forcing many to sell out. Many are unable to continue operations, experts said. In Districts 1 and 3, boards announcing sales can be seen every dozen metres. On Ly Tu Trong Street in District 1, many three- and four- star hotels are on offer at VND200-1,200 billion (US$8.66-52 million). A four-star property at the intersection with Chu Manh Trinh Street has 18 floors and 150 rooms, and the owner is looking to sell it for VND1.2 trillion, according to Tran Trung Hieu, its manager. That price is 15 per cent lower than before the outbreak, but it is still hard to find a buyer. A three-star hotel with 110 rooms near the Phu Dong intersection in District 1 is asking for VND 230 billion or VND 800 million a month if leased, 10 per cent and 20 per cent down from pre-pandemic days, according to Nguyen Trong Tien, its owner. On nearby streets like Thu Khoa Huan, Le Thanh Ton and Bui Thi Xuan, many hotels are being offered for sale at VND250-400 billion. These are mostly mid-range hotels with more than 50 rooms targeted at middle-class and foreign tourists. Several hotel chains have had to sell one or more properties to raise money to repay debts. Prices are much lower than before the outbreak. A four-star hotel with 80 rooms in HCM City that cost over VND 600 billion before the outbreak can now be bought for VND 400 billion. Many guesthouses with 10-15 rooms on Bui Vien Street in District 1 are also available to buy or lease. Nguyen Trong Hoang, the owner of a 11-room property, said: “I invested more than VND 3 billion ($130,000) over a year ago but now want to sell it for VND2 billion ($86,600) or rent it out at VND 35 million ($1,500) a month for five years. “Before the epidemic the monthly profit was VND 70-90 million ($3,000-3,900).” Five-star hotels are not doing any better as the number of foreign visitors coming to the city has dropped by 70-90 per cent since the pandemic began in March. Many have to offer discounts of 70-80 per cent on room rents to attract guests, most of whom are experts coming to the city for work. Thus, famous five-star hotels like Sofitel, Majestic, Nikko, Oakwood, New World, and Lotte have to rent their rooms at VND1.7-2.5 million ($74-107) per night. According to surveys, the number of hotels on sale increased by 63 per cent in the second quarter. Experts said more hotel owners could be selling out because the hospitality market has been down for too long and it would take at least a year to recover. Thailand’s July exports drop 11.3 percent Thailand’s exports in July contracted 11.3 percent year on year to 18.81 billion USD, while its imports were valued at 15.47 billion USD, contracting 26.38 percent compared to the same period last year. Local media quoted Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office, as saying that during the first seven months of the year, the country’s exports reached 113.16 billion USD, down 7.72 percent year on year, while imports were 119.118 billion USD, down 14.69 percent, resulting in a 14.04 billion USD trade surplus. One of the key factors for the positive trade outcome is the export potential of food, processed agricultural products and products for working from home while COVID-19 related goods are also in demand. The Thai economy saw its strongest decline since the 1998 Asian financial crisis in the second quarter of 2020 when the COVID-19 pandemic affected the tourism industry and domestic manufacturing activities. Earlier, the National Economic and Social Development Council of Thailand (NESDC) said that the country’s Gross Domestic Product (GDP) in the second quarter of 2020 decreased by 12.2 percent year on year, the sharpest fall since the 1998 crisis. Garco 10 accesses foreign credit to make anti-COVID-19 products Standard Chartered announced on August 24 that the Garment 10 Corporation JSC (Garco 10) has become the latest to benefit from its global financing commitment of 1 billion USD to help fight COVID-19. The bank will provide the garment maker with a loan of up to 100 billion VND (4.3 million USD) to fund the production of medical and cloth face masks to help meet demand for personal protective equipment. CEO of Standard Chartered Bank Vietnam Nirukt Sapru said the bank pledges to make unceasing efforts to help in the coronavirus fight, adding that the loan to Garco 10 reaffirms its commitment to supporting domestic businesses in this regard. Garco 10 General Director Than Duc Viet said that given the unprecedented health challenges caused by the pandemic, high-quality personal protective equipment plays an important role in guarding people’s health and safety. The company is helping to meet the urgent need around the world for personal protective gear, and the Standard Chartered loan will help with the production of cloth and medical face masks, he noted. In March, Standard Chartered launched a financial package with preferential interest rates to support suppliers of key products and services in the COVID-19 battle, including producers and distributors of medicine and healthcare, along with non-healthcare companies that manufacture ventilators, face masks, protective equipment, disinfectants, and anti-pandemic consumer goods. Those in other sectors but planning to make products to help fight COVID-19 can also benefit from the package. Cambodia-Thailand trade still growing despite pandemic Trade between Cambodia and Thailand hit 82.02 billion THB (2.6 billion USD) in the first half of this year, up 2.27 percent year on year, the Phnom Penh Post reported. Cambodia Chamber of Commerce Vice President Lim Heng noted the limited scope of cross-border trade restrictions between the two countries during the COVID-19 crisis, adding that the governments mainly restrict the movement of people in a bid to combat the spread of the novel coronavirus. The total volume of trade between Cambodia and Thailand reached 9.41 billion USD last year, up 12 percent from 8.38 billion USD in 2018. The majority of Cambodia’s exports to Thailand include gemstones, jewellery, agricultural products and aluminium. Cambodia’s imports from Thailand mainly consist of fuel, motorcycles, cars, gemstones and jewellery. Meanwhile, Thailand’s two-way trade with its other neighbours plummeted in the first six months, according to data of the Thai Department of Foreign Trade. Its total cross-border trade fell 9.18 percent in the January-June period on a yearly basis. The bilateral trade with Malaysia sank 26.81 percent, with Laos down 7.09 percent, and with Myanmar down 13.65 percent. HCM City helping travel companies survive COVID-19 Some 90-95 percent of the travel companies in HCM City have suspended operations due to the COVID-19 pandemic, the municipal Department of Tourism reported on August 24. The pandemic has forced companies to split their workforce into shifts working from home or to lay off employees until the outbreak is brought under control. Occupancy in local accommodation is down 91.5 percent year-on-year, while the number of workers in the sector fell 61 percent. Businesses are forecast to face more difficulties in the time ahead. Given this, the municipal Department of Tourism has mapped out two scenarios and specific measures to support these companies. Under the first scenario, in which the disease is contained by September, the department will roll out a tourism promotion programme in the domestic market, linking travel companies, accommodation facilities, transport businesses, and tourist sites to introduce new and safe products, said Nguyen Thi Anh Hoa, deputy director of the department. In the other, under which the pandemic lasts until the end of the year, the department will focus on workforce restructuring and training and helping businesses with market orientation and product building. The department has also proposed the municipal People’s Committee continue with concrete solutions and create favourable conditions for travel companies to access the Government’s support packages, Hoa said. Australian firms urged to explore opportunities in ASEAN Australian Minister for Trade, Tourism, and Investment Simon Birmingham called on Australia’s business community to explore more opportunities in the ten ASEAN member states during a webinar held over the weekend. The ASEAN-Australia: The Road to Recovery Interactive Webinar was jointly held by the Australia-ASEAN Council, the ASEAN Committee in Canberra, and Asialink, to celebrate the bloc’s 53rd founding anniversary. Birmingham highlighted that growth potential in ASEAN countries, like Vietnam and Indonesia, coupled with established ties between Australia and nations such as Singapore and Malaysia, would provide major opportunities for Australian enterprises to further strengthen cooperation in trade and investment with ASEAN. He noted that the Regional Comprehensive Economic Partnership (RCEP), to be inked by 15 countries across Indo-Asia-Pacific, will also facilitate business activities. He expects the deal will encourage Australia’s business community to seek opportunities in ASEAN nations, driving future growth. CEO of Australia Post Christine Holgate, who is also chairman of the Australia-ASEAN Council, said she hopes that ASEAN would offer Australian companies opportunities to develop and participate further in the international strategic playground. Mui Ne tourist site secures national status The Ministry of Culture, Sports and Tourism has issued a decision recognising Mui Ne tourist site in the south-central province of Binh Thuan as a national tourist site. Under a master plan approved by the Prime Minister, the Mui Ne national tourist site stretches from Hoa Phu commune in Tuy Phong district to Phu Hai commune in Phan Thiet city, covering a total area of about 14,760 ha. Mui Ne is expected to play an important role in the tourism sector in the south-central coastal region and the country as a whole, and also become one of the leading destinations in Asia-Pacific by 2030. Binh Thuan aims to welcome about 9 million tourists by 2025, including 1.5 million foreigners. The total number of holiday-makers to the province is expected to reach about 14 million by 2030, with over 2.5 million international arrivals. Tourism is expected to earn revenue of 24 trillion VND (over 1 billion USD) by 2025 and 50 trillion VND by 2030, generating about 24,000 jobs by 2025 and 45,000 by 2030. Indonesia: Bali delays plans to welcome foreign arrivals in September Plans to reopen Bali to international visitors on September 11 have been postponed following the Indonesian government’s decision to wait until the end of this year. In a recent statement, Bali Governor Wayan Koster said that the government is still prohibiting its citizens from traveling abroad at least until the end of 2020, adding that in line with the policy, Bali cannot also open its gate to foreign tourists. Koster added that the government fully supports the province's plans to reopen to international travelers as part of tourism recovery efforts, however Bali should be careful. Following the decision, Bali is said to be focusing on efforts to attract domestic tourists in a bid to smooth its way to tourism and economic recovery. The COVID-19 pandemic has badly hit Bali’s economy, 80 percent of which relies on tourism. The Bali's economy contracted 10.98 percent in the second quarter of 2020, and at least 2,667 labourers who work in the tourism sector have lost their job, and 73,631 people have been forced to take unpaid leave. Previously, Bali was planning to reopen its tourism in three phases, starting on July 9 with the reopening of tourist sites to local residents, to be followed with reopening access to domestic travelers from regions across Indonesia. The third phase would have been to start welcoming foreign travelers on September 11. Cambodia considers allowing more foreign workers The Cambodian Ministry of Labour and Vocational Training will now allow foreign workers to make up more than 10 percent of certain enterprises’ staff if companies cannot find local workers to fill positions. The announcement, signed by Labour Minister Ith Sam Heng in mid-August, said enterprise owners who fall under the scope of Article 1 of the labour law can file a request to employ an increased amount of foreign workers, the Phnom Penh Post reported. Ministry spokesperson Heng Sour said the decision aims to meet the needs of full-time production chains which operate 24 hours per day, noting that the night entertainment, agriculture and construction sectors are still lacking workers. According to this ministry’s regulation issued in 2014, enterprise owners or managers must prioritise recruiting Cambodian workers, and foreigners must not account for more than 10 percent of their staff. However, Executive Director of the country’s Center for Alliance of Labour and Human Rights Moeun Tola said the ministry should not have made this decision because currently, Cambodian citizens returning from abroad are facing unemployment. Allowing more than 10 percent of foreigners to work seems to open an opportunity to compete between foreign and Cambodian workers, he noted. Vietnamese goods exhibition centre inaugurated in Thailand The Vietnamese Goods Exhibition Centre at VT-Namnueng shopping mall was inaugurated at the Thai northeastern province of Udon Thani on Sunday. Speaking at the ceremony, the Business Association of Thai - Viet Nam (BAOTV) Chairman Ho Van Lam said the centre will introduce and develop distribution channels for Vietnamese goods in Thailand, making them more popular in the country. Vietnamese Consul General in Khon Kaen city Hoang Ngoc Son said the inauguration of the centre not only makes it easier for consumers in the northeast of Thailand to access high-quality Vietnamese goods but also helps the businesses in the two countries access trade and explore opportunities, towards a more balanced trade between the two nations. He hoped the BAOTV will continue to open more similar centres in supermarkets and shopping malls, turning them into destinations for tourists. Vice Governor of Udon Thani province Wanchai Janthorn spoke highly of contributions by the Thai community of Vietnamese descent and the Vietnamese Thai business people to Thailand’s socio-economic development. The northeast of Thailand is now home to more than 70,000 Vietnamese Thai people. Professional liability insurance revenue surges Professional liability insurance revenue, especially in the construction industry, surged strongly in the first half of this year, thanks to the rise in foreign direct investment (FDI) construction projects and strengthening inspections. The Vietnam Insurance Association’s preliminary statistics showed by the end of June, compulsory liability insurance for construction investment consultants and construction workers jumped 791 and 848 per cent over the same period last year, respectively. Professional liability insurance revenue in medical examination and treatment also increased by nearly 60 per cent against the same period last year. According to representatives of the Post and Telecommunication Joint Stock Insurance Corporation (PTI), improved awareness of compliance with Circular No 329/2016/BTC on compulsory insurance in construction investment among construction contractors contributed significantly to the rise in revenue. Though the circular took effect in 2016, firms have started buying professional liability insurance for their employees recently after authorities stepped up inspections. In addition, a rise in the number of new FDI construction projects in the first six months of this year also contributed to the increase in sales of the professional liability insurance revenue. Though there has been an improvement in the growth rate, compared to other insurance products, the proportion of professional liability insurance has remained very modest, at only 2 per cent of the insurance industry’s total revenue. In Viet Nam, the potential for the growth of liability insurance and professional liability insurance is relatively significant. Currently, foreign insurance companies dominate the business segment and they also serve only foreigners in Viet Nam. Some Vietnamese names provide the products including Bao Viet Insurance, Bao Minh Insurance, PTI, PVI or MIC, but their new premium is modest. Industry insiders attribute the struggles of Vietnamese insurance companies in the business segment to their lack of experience. In addition, the business segment isn’t attractive to Vietnamese insurance companies as cross-border insurance for foreign customers is allowed when the new Insurance Business Law comes into effect. Myanmar, Japan agree to reopen borders to each other’s citizens Myanmar and Japan have agreed to reopen borders for expatriates and other long-term residents as soon as early September, relaxing travel restrictions that were imposed to stem the spread of COVID-19. Myanmar State Counsellor Aung San Suu Kyi reached the agreement with Japanese Foreign Minister Toshimitsu Motegi at their meeting in Naypyidaw capital of the Southeast Asian nation on August 24. The deal enables expatriates and other long-term residents to travel reciprocally provided they stay at home or at a designated place for 14 days after arriving and taking other measures to reduce the risk of infection. Japan currently bans in principle entries by foreign nationals from 146 countries and regions. However, it has launched talks with 16 economies, including Myanmar, in recent months to resume travel in tandem with the restart of socio-economic activities. Besides Myanmar, Japan has also reached similar deals with Singapore, Malaysia, Cambodia and Laos earlier this month. Myanmar is the final leg of Motegi’s four-nation tour that included Papua New Guinea, Cambodia and Laos. Footwear businesses adapt to COVID-19 pandemic The leather and footwear industry is finding new supply and demand sources to overcome difficulties due to the impact of the COVID-19 pandemic. Seventy percent of raw materials for domestic leather and footwear production are imported from China, according to Phan Thi Thanh Xuan, general secretary of the Vietnam Leather, Footwear and Handbag Association (Lefaso). Therefore, the pandemic has caused difficulties for domestic leather and footwear enterprises. Many businesses have sought material sources from other markets such as India, Europe, Singapore, and Japan to maintain production. Along with the diversification of raw material sources, leather and footwear companies have been more active in finding partners. Many businesses shared that some markets in Europe and Japan had shown signs of recovery with the disease better controlled. The Vietnam - EU free trade agreement (EVFTA), which took effect from the beginning of this month, also helped leather and footwear businesses expand markets and get more orders, said Xuan. The pandemic was still complicated, but if enterprises worked hard to find partners and improved their competitiveness, the opportunities would still be great, said experts. Businesses and experts said that trade promotion activities, as well as support from management agencies, should be further promoted. The Lefaso general secretary said the leather and footwear industry needed to overcome weaknesses in chain linkage. She also recommended a separate decree for the leather, footwear, textile and garment industry to develop the fashion industry in the country. The report on industrial production and trade activities in the first seven months of this year of the Ministry of Industry and Trade found the production of leather and related products increased by 7.6 percent last month compared to the previous month but was down 4.4 percent over the same period last year. It decreased by 4.2 percent in the first seven months of the year compared to the same period last year. Footwear export turnover of all kinds was estimated at US$9.53 billion in the seven months, a year-on-year drop of nearly 8 percent. Imports of raw materials for the industry also reduced by 14.1 percent in the first six months. Textile and garment exports set to continue declining The Viet Nam Textile and Garment Group (Vinatex) forecasts Viet Nam's textile and garment exports will continue to decline by 14-18 per cent each month for the rest of 2020 over the same period last year. The group also said the total textile and garment export value for this whole year is estimated to hit about US$32.75 billion, a year-on-year decrease of 16 per cent. Vinatex general director Le Tien Truong said the textile and garment will face greater difficulties in the final half of the year than the first half. “At present, there are almost no orders for member companies producing in the fourth quarter. That is a huge challenge for the group's business plan. Mask orders have reduced to low quantity while the price of this product has also decreased to the level that is the same rate with production cost," Truong told the Voice of Viet Nam (VOV). According to the Viet Nam Textile and Apparel Association (VITAS), the second quarter was the most difficult quarter for the textile and garment industry because customers in major export markets such as the US and EU cancelled 30-70 per cent of orders because the markets were closed due to the COVID-19 pandemic. Strong reductions in orders have caused higher inventories and increased pressure to pay workers, bringing more and more difficulties to textile and garment companies. The Ministry of Industry and Trade also said as of July, many textile and garment enterprises had few orders for the last two quarters of this year, especially high-value products. Meanwhile, face masks and personal protective equipment, which are considered major products for many garment enterprises, have sharply decreased due to global oversupply. The ministry said nobody knows when the pandemic will end so by this year-end, textile and garment enterprises need to pay attention to demand on the domestic market due to lower export orders. At the same time, they should manage production costs and maintain product quality to minimise the decline in revenue. In addition, the businesses need to provide jobs and income for workers who have accompanied the enterprises during a difficult period. At present, 80 per cent of enterprises in the textile and garment industry have cut their labour force while most businesses have slashed operation capacity by 50 per cent, the association said. According to the Ministry of Industry and Trade, Viet Nam's export value of textiles and garments in July was estimated at $3.43 billion, up 14.4 per cent compared to June but down 11.8 per cent year-on-year. In the first seven months of this year, the textile and garment export value was at $19.21 billion, down 13.8 per cent year-on-year. Of which, fibre exports in the first seven months reached 876,000 tonnes, earning $1.89 billion. Exports plunged by 7.9 per cent in volume and 20.9 per cent in value over the same period of last year. Garment export value during the first seven months was estimated at $16.18 billion, down 12.1 per cent year-on-year, accounting for 84.22 per cent of Viet Nam's total textile and garment export value. In July, export value rose by 15.3 per cent month-on-month to $3 billion though it reduced by 8.9 per cent year-on-year. The ministry forecasts Viet Nam's textile and garment export value this year would reduce by 10-15 per cent to $33.6-36 billion compared to last year. This value is higher than the Vinatex forecast. Cambodia’s domestic tourism maintains growth Cambodia’s tourism sector served over 1.4 million domestic tourists during the five-day holiday last week, which were offered in compensation for the Khmer New Year holiday postponed in April, reported the Cambodian Ministry of Tourism. This is a positive sign for the tourism industry in the context of anti-pandemic measures. The Khmer Times on August 24 quoted President of the Cambodia Association of Travel Agents Chhay Sivlin as saying that tourists felt more confident about the Government’s safety measures to contain COVID-19 while they also paid attention to health and safety. It is estimated by tourism observers that Cambodia will lose around 3 billion USD in revenue from tourists because of the lack of international visitors and the sector would take up to seven years to recover. The same day, the Cambodian Health Ministry announced that Cambodia reported no new COVID-19 cases for seven consecutive days. The tally remains at 273. Quang Ninh a pioneer in smart tourism development The northeastern province of Quang Ninh is one of the pioneers nationwide in implementing smart tourism solutions. Smart tourism infrastructure has been improved throughout the province and is based on smart city development. Simply put, smart tourism refers to the application of information and communications technology to ensure interaction between managers, businesses, and tourists. Quang Ninh has favourable conditions to implement smart tourism, according to industry insiders, as it was ranked third in the Vietnam ICT Index in 2019. Building integrated tourism data and a tourism portal has been defined as the first move and one of the top priorities in smart tourism for Quang Ninh. Visitors are now able to access the local tourism information portal at halongtourism.com.vn and discoverhalong.com in Vietnamese, English, and Chinese, or through Quang Ninh tourism sector’s fanpage on Facebook, for the latest information. These websites not only introduce popular destinations, entertainment, festivals, and specialty dishes but also include guidance for visitors to book rooms, cars, and tickets online, as well as hotlines to accept feedback on services. They are expected to apply artificial intelligence in the future to help holidaymakers select and design their itinerary by themselves. Quang Ninh also provides free wifi at airports, bus stations, and residential and tourism areas. All vessels on Ha Long Bay - the province’s stand-out attraction - have had GPS installed to ensure tourist safety. In April 2019, Uong Bi city launched its Dulichuongbi app for smartphones, which suggests popular destinations and provides detailed information on access, costs and estimated time to reach them. Such apps are not only useful for travellers but also help businesses save on advertising costs and increase their links with customers and partners. Quang Ninh is now focusing on its smart tourism administration centre, which is expected to be put into operation this year. Smart tourism is expected to help Quang Ninh fully exploit its natural advantages for sea and island tourism. It has a coastline of more than 250 kilometres and more than 2,000 islands and islets which account for two-thirds of the total number in Vietnam. In particular, Ha Long Bay literally “descending dragon bay”, was twice recognised as a World Natural Heritage site by UNESCO in 1994 and 2000. The bay spans 1,553 square kilometres and includes 1,969 islands of various sizes. It features thousands of limestone karsts and islets in various shapes and sizes. The limestone in the bay has gone through 500 million years of formation in different conditions and environments. The geo-diversity of the environment has created biodiversity, including a tropical evergreen biosystem, oceanic and sea biosystem. In 2018, Ha Long Bay made it into the top 15 Instagrammed global cruise destinations based on a survey of 1.8 million posts tagged on various ships and ports by travel cruise site SeaHub. In 2019, British travel magazine Rough Guides included Vietnam’s Ha Long Bay in its selection of the 100 most beautiful places to visit next year. It describes “the scattering of limestone pinnacles jutting out of the smooth waters of Ha Long Bay”, around four hours east of Hanoi capital, as an “incredible sight”. Most recently in 2020, Ha Long Bay was named amongst the 50 most beautiful natural wonders on Earth selected by US-based magazine Insider. Last year, Prime Minister Nguyen Xuan Phuc approved a master plan to develop Ha Long city into a world-class tourism and service hub by 2050. Under the plan, Ha Long will be converted into a civilised and friendly sea tourism city with synchronous and modern socio-economic infrastructure systems. Canada aids Vietnam in boosting food safety A food safety project funded by the Canadian Government will be deployed in Ho Chi Minh City, Hanoi and some other parts of the country by the Ministry of Agriculture and Rural Development from 2020 to 2025. The project aimed at implementing regulations on standard food safety and calling on producers and households to move toward smart agricultural production and eco-friendly farming. Deputy Minister Phung Duc Tien signed a decision approving the project called “Safe Food for Growth”, whose main owner is the National Agro-Forestry-Fisheries Quality Assurance Department. He said that a sustainable origin-tracing system would be created as a result of the project. Apart from this, the project is expected to raise the awareness of customers over food safety, accelerate the consumption of agricultural products and stabilize the prices of farm produce in the country. Through the project, management agencies will have the opportunity to access technology and advanced governance methods over food quality and safety and learn from research organizations, management agencies and producers in Canada. The project requires a total investment of some 15.4 million Canadian dollars, with 15.3 million Canadian dollars, or US$10.9 million, coming from the Canadian Government’s non-refundable aid and the remaining 100,000 Canadian dollars from Vietnam’s reciprocal capital. COVID-19 casts shadow on business households The second outbreak of COVID-19 has pushed many business households in Hanoi’s Old Quarter to the brink due to the total absence of international travellers, their main customers. Hotels, restaurants, clothing stores and beauty salons in the Old Quarter mostly target international visitors. Their absence has pushed many of these businesses to the wall. Small and micro-sized enterprises are in need of the Government’s assistance to survive these turbulent times, in particular a bailout package. Textile-garment exports to continue declining The Vietnam Textile and Garment Group (Vinatex) forecasts the country’s textile and garment exports will continue to decline by 14-18 percent each month for the rest of 2020 over the same period last year. The group also said the total textile and garment export value for this whole year is estimated to hit about 32.75 billion USD, a year-on-year decrease of 16 percent. Vinatex general director Le Tien Truong said the textile and garment will face greater difficulties in the final half of the year than the first half. “At present, there are almost no orders for member companies producing in the fourth quarter. That is a huge challenge for the group's business plan. Mask orders have reduced to low quantity while the price of this product has also decreased to the level that is the same rate with production cost," Truong told the Voice of Vietnam (VOV). According to the Vietnam Textile and Apparel Association (VITAS), the second quarter was the most difficult quarter for the textile and garment industry because customers in major export markets such as the US and EU cancelled 30-70 percent of orders because the markets were closed due to the COVID-19 pandemic. Strong reductions in orders have caused higher inventories and increased pressure to pay workers, bringing more and more difficulties to textile and garment companies. The Ministry of Industry and Trade also said as of July, many textile and garment enterprises had few orders for the last two quarters of this year, especially high-value products. Meanwhile, face masks and personal protective equipment, which are considered major products for many garment enterprises, have sharply decreased due to global oversupply. The ministry said nobody knows when the pandemic will end so by this year-end, textile and garment enterprises need to pay attention to demand on the domestic market due to lower export orders. At the same time, they should manage production costs and maintain product quality to minimise the decline in revenue. In addition, the businesses need to provide jobs and income for workers who have accompanied the enterprises during a difficult period. At present, 80 percent of enterprises in the textile and garment industry have cut their labour force while most businesses have slashed operation capacity by 50 percent, the association said. According to the Ministry of Industry and Trade, Vietnam’s export value of textiles and garments in July was estimated at 3.43 billion USD, up 14.4 percent compared to June but down 11.8 percent year-on-year. In the first seven months of this year, the textile and garment export value was at 19.21 billion USD, down 13.8 percent year-on-year. Of which, fibre exports in the first seven months reached 876,000 tonnes, earning 1.89 billion USD. Exports plunged by 7.9 percent in volume and 20.9 percent in value over the same period of last year. Garment export value during the first seven months was estimated at 16.18 billion USD, down 12.1 percent year-on-year, accounting for 84.22 percent of Vietnam’s total textile and garment export value. In July, export value rose by 15.3 percent month-on-month to 3 billion USD though it dropped by 8.9 percent year-on-year. The ministry forecasts Vietnam’s textile and garment export value this year would fall by 10-15 percent to 33.6-36 billion USD compared to last year. This value is higher than the Vinatex forecast. Vinh Phuc looks to create green environment at industrial parks Along with investing in building infrastructure and promoting production, businesses at industrial parks (IPs) in the northern province of Vinh Phuc are also focusing on sewage treatment and environmental protection to ensure the health and safety of workers. In response to the green lifestyle movement, the Korean-invested firm Cammsys Vietnam Co., Ltd., which specialises in the production of electronic products, has invested in growing trees in and around its facility. Dao Xuan Hao, director of the provincial investment support service centre, said that of 54 ha of land at section 2 of the Ba Thien IP, some 15 ha is green space. Japan’s Sumitomo Corporation, meanwhile, is also focusing on growing trees at the Thang Long IP to create a green space and reduce environmental pollution. The company has also invested in building three canals with a combined length of 3.6 km. Some 309 out of 367 projects, or 84 percent, at IPs in Vinh Phuc province had been put into operation as of the end of July, up 6 percent against last December. Of the 367 projects, 62 are domestic direct investment projects valued at over 14.8 trillion VND (633.6 million USD), while 305 are FDI projects worth more than 4 billion USD. Binh Xuyen district alone has seven IPs covering nearly 2,000 ha: Thang Long Vinh Phuc, Binh Xuyen, Binh Xuyen II, Ba Thien, Ba Thien II, Son Loi, and Nam Binh Xuyen, leading the province in numbers and investment projects. The Thang Long Vinh Phuc IP has attracted dozens of investors from Japan, with combined capital exceeding 200 million USD, even though it has only just finished the first phase of construction. Between 2016 and 2019, Vinh Phuc attracted 2.5 billion USD in foreign direct investment (FDI) and some 55.28 trillion VND (2.38 billion USD) in domestic direct investment (DDI). By the end of June 2020, Vinh Phuc was home to 392 FDI projects with total registered capital of 5.57 billion USD, according to statistics of the provincial Department of Planning and Investment. The projects were run by investors from 18 countries and territories. The Republic of Korea has the most projects with 210, followed by Japan, China and Thailand. Many global groups have made their presence in Vinh Phuc, such as Toyota, Honda, Sumitomo from Japan, Piaggio from Italy, De Heus from the Netherlands, Daewoo, Haesung Vina, Partron Vina, Cammsys from the Republic of Korea, Prime Group from Thailand and Weldex from the US. The province has also attracted 782 DDI with total investment surpassing 93.7 trillion VND (around 4 billion USD at current exchange rate). Several major Vietnamese corporations have chosen Vinh Phuc for their investment, such as FLC, Vingroup, SunGroup, and Viet Duc Steel. The flow of investment capital, both FDI and DDI, into the province in the first six months of this year decreased as a consequence of the coronavirus pandemic. Total FDI capital in the period stood at 135.6 million USD, equivalent to only 32.1 percent of the figure in the same period last year. The money was poured into 14 new projects and 19 existing ones. Vinh Phuc has designated 18 industrial parks with total area of 5,228 ha in a master plan to 2020 approved by the Prime Minister. By now nine industrial parks have received investment certificates. Industrial parks in Vinh Phuc have good technical infrastructure and professional management, thus contributing to attracting investors to the province. They reported an average occupancy rate of nearly 62 percent./. VNN |
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VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 2802:41 Binh Phuoc’s biggest solar power project to join national grid in December
Work on Binh Phuoc’s biggest solar power project has been sped up for its joining of the national grid on December 31. The 850MWp project, consisting of five plants in the southern province’s Loc Ninh district, has three phases, with total cost exceeding 12 trillion VND (516.57 million USD). Its investor – Hung Hai Group – is also channeling capital on building the associated 220kV Loc Ninh – Binh Long 2 transmission line to link the plants with the national grid. The 29km line runs through Loc Thanh, Loc Tan, Loc Thien, Loc Thanh, and Loc Thinh communes in Loc Ninh district, and Thanh Luong commune in Binh Long town. Nguyen Van Loi, Secretary of the provincial Party Committee, said Binh Phuoc’s planned solar power capacity is 4,000 MWp. According to him, a large number of investors have asked for permission to develop the renewable energy here, but only Hung Hai was given the greenlight. Once the project is operational, each MWp of solar power will contribute about 800 million VND to the provincial budget in tax. According to experts, Binh Phuoc holds huge advantages to develop solar power, with an average of 2,700 sunshine hours per year. It is working to transfer over 5,000ha of rubber trees with poor economic values into land for the development of the green energy./. PM attends Standard Chartered-ASEAN Business Forum 2020 As ASEAN Chair 2020, Vietnamese Prime Minister Nguyen Xuan Phuc attended and delivered a speech at the Standard Chartered-ASEAN Business Forum 2020 themed “Unlocking the region’s potential”, which was televised on international medial channels. The event, which is being held from August 25-28, drew the attendance of leaders of businesses and organisations from Asia, the Middle East, Europe and the US to discuss emerging trends that could shape the future of the region. In his speech at the first session entitled “Tapping growth opportunities during and after COVID-19”, PM Phuc said in the face of challenges caused by COVID-19, the ASEAN Community has shown its strong will and spirit of resilience, actively cooperated with partners via the implementation of resolutions adopted at the meetings of economic ministers with the US, Australia and the European Union and joint statements of ASEAN and ASEAN 3 summits with China, Japan, the Republic of Korea held in Hanoi in April. Boasting a gross domestic product of nearly 3 trillion USD and a population of over 630 million with growing incomes, ASEAN is a big market for ambitious businesses worldwide, he said, adding that Vietnam joined the bloc 25 years ago and signed 13 free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union – Vietnam Free Trade Agreement (EVFTA). PM Phuc stressed that Vietnam always welcomes foreign firms and investors. With an improving favourable business environment, Vietnam has so far attracted over 32,000 foreign-invested projects with a total capital of more than 380 billion USD from 140 countries and partners, he said. Towards the ASEAN Vision 2025 and 2030, the PM shared ASEAN’s strong economic cooperation policies. Firstly, ASEAN member states will continue staying united, promoting the bloc’s central role in regional economic collaboration, prioritising coordination with partner nations and foreign enterprises. ASEAN attaches importance to law abidance and building of stable and sustainable cooperation frameworks, especially for the development of a digital economy. ASEAN is competitive enough to attract shift of supply chains in the region. According to the PM, ASEAN is striving to invest in hard and soft infrastructure, with a focus on human resources quality improvement. It is working to narrow the development gap and expand coordination in the Greater Mekong Sub-region which holds potential to lure investment flows. The PM affirmed that ASEAN treasures the partnerships between businesses and governments. Recommendations raised at the forum will be collected and considered thoroughly, he added. Following PM Phuc's speech, a discussion attracted the participation of Tharman Shanmugaratnam, Senior Minister and Coordinating Minister for Social Policies and Chairman of the Monetary Authority of Singapore; Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan; and CEO of Standard Chartered Bill Winters. The event features four sessions, in which speakers from the State and private sector will talk about the grouping’s trade opportunities amid geo-political challenges, strategies to maintain growth and the best practices for sustainable development. Standard Chartered Regional CEO for ASEAN and South Asia Judy Hsu said it is time for parties concerned to seek new opportunities in the region which boasts young and dynamic workforce, growing middle-income class and vibrant digital economy./. 74 HNX-listed companies report higher losses in H1 Seventy-four of 348 companies listed on the Ha Noi Stock Exchange (HNX) posted losses in the first six months of the year. Of the total number of listed companies, 343 firms have released their second-quarter earnings reports while the other five have not. The number of loss-making firms was up 34.5 per cent year-on-year and their total losses increased by 32.9 per cent year-on-year to VND711.9 billion (US$30.8 million), according to HNX. Real estate firms posted a 341 per cent surge in total losses for the first six months. Total losses recorded by the HNX-listed property developers were VND121.3 billion, up 341 per cent year-on-year from last year’s figure of VND27.5 billion. According to the northern market regulator, companies in six of 11 sectors reported higher losses in the first six months. Other loss-making sectors included mining and energy, oil and gas, and logistics and transportation with losses increasing by 225 per cent and 214 per cent, respectively. Most of the companies blamed the COVID-19 pandemic for their losses as they had to halt operations and purchasing power declined due to lower income. On the other hand, nearly 270 listed companies made profits in January-June. But their total profit slid 1.14 per cent year-on-year to VND11.38 trillion in the first six months. Five sectors saw companies raise their profits, including financials. Profits financial firms gained 11.7 per cent year-on-year to VND605.8 billion. Notably, trading, accommodation and eatery firms recorded the biggest gain in profit (56.8 per cent) but only 17 of all 48 companies in the sector saw their profits increase. A key contribution to the firms’ increased profits was their divestments from non-core business activities./. EU-funded submarine power project in Binh Dinh becomes operational A submarine power cable project to supply electricity for Nhon Chau island commune of the south central province of Binh Dinh has been put into operation, announced the Binh Dinh Power Company on August 24. As a result, about 600 local families with more than 2,300 residents now have access to electricity. The project was built at an investment worth nearly VND351.5 billion (US$15.1 million), including VND280 billion funded by the EU. It comprised four main components, including a transformer station in the southern neighbouring province of Phu Yen and two in Nhon Chau commune, and a 22kV undersea power cable measuring over 10km in length. Optical fiber cables are also installed to provide telecommunication and information services for the island. Nhon Chau island is located 22km off Quy Nhon city. Electricity on the island was previously generated by diesel generators which operate only 12 hours a day./. MoIT announces list of prestigious exporters for 2019 The Ministry of Industry and Trade (MoIT) on August 24 said it has selected 268 prestigious exporters for 2019 from nominations made by 55 relevant ministries, industry associations and local departments of industry and trade. The list of firms cover 25 commodity sectors including farm produce, garment, telephone, electric equipment, wood, plastics, confectionery and footwear. They were selected based on the ministry’s standards on export turnover, international prestige, fulfillment to tax and customs duties, and environmental protection. Notably, the ministry has given priority in choosing sectors in which the country has encouraged exports as well as those facing difficulties in finding export markets. The vote aimed to recognise exporters’ positive contributions to the country’s export growth while giving them support in seeking markets. It also aimed to encourage Vietnamese exporters to further improve their image towards international integration with the world economy. The voted exporters would be permitted to advertise their products for free on the ministry’s website, newspapers and magazines. Last year, 225 exporters were named in the list for 2018. Overseas shipments earned the country US$263.45 billion in 2019, up 8.1% year-on-year and higher than the target set by the National Assembly and the government of 7-8%./. Ho Chi Minh City seeks to attract huge US investment The Ho Chi Minh City administration, the US Consulate General and the American Chamber of Commerce in Vietnam (Amcham), co-hosted a forum on August 25 to attract greater US investment into the city. The forum is designed to outline specific cooperation orientations between Ho Chi Minh City and the US for the 2020 to 2025 period, with a further vision towards 2030. It seeks to increase US investment in the southern city’s supply chain of science and technology services, whilst promoting innovation and creativity. One of the key aims is to develop the southern metropolis into a smart city and an international financial hub, alongside an innovative and interactive urban area to take shape in the Eastern part in the future. Speaking at the event, Ho Chi Minh City Party Secretary Nguyen Thien Nhan detailed how both Vietnam and the US have put aside the past and decided to join hands in order to establish a present-day partnership. Over the past 25 years since diplomatic normalisation, he said bilateral relations have enjoyed substantial development and have gone on to achieve impressive results. “Vietnam is the 13th largest trading partner of the US, with two-way trade turnover reaching US$77 billion last year. The first six months of this year alone saw bilateral trade hit US$38 billion, an increase of 7% over the same period last year,” Nhan said. With a favourable geographical position, modern infrastructure, and attractive financial incentives, the southern city serves as an ideal investment destination for businesses from various countries globally, including the US, France, and Italy. Most notably, more than 160 US businesses have invested in the city over the past 10 years, bringing in US$64 billion in export value. In line with this, Nhan singled out Intel Products Vietnam for their successful operations in the city, explaining that since 2010 it has funneled a sum of US$1 billion into its production line in the locality, and its total export value has exceeded US$36 billion. He therefore expressed the city’s commitment to creating the best possible conditions for US businesses to operate in an efficient manner in the locality and therefore bring about mutual benefit for both sides. The forum is expected to see delegates discuss investment strategies for high-tech supply chains and financial technology development, while also exploring investment co-operation partnerships for projects to build an innovative and interactive urban area in the East, a smart city, and an international financial hub. As the country’s most dynamic and largest economic centres that makes up 25% of GDP and 30% of the national budget revenue, the city is home to the Quang Trung software park, the most successful IT model nationwide, an area that now employs 10,000 staff and earns US$500 million from software exports annually. The municipal administration has developed a project to build an innovative and interactive urban area in the East of the city that covers an area of 210 square kilometres. The new urban area is expected to emerge as the third largest economic centre, behind only Ho Chi Minh City and Hanoi./. Experts believe CPI in 2020 will be kept under control Despite the negative impact of the COVID-19 pandemic, Vietnam’s inflation for 2020 is projected to fall between 3.5-3.9% to ensure social security and stabilise local people's lives, experts say. The prediction has been made by the General Statistics Office (GSO) that believes that curbing the consumer price index (CPI) below 4% for the year is feasible. Statistics show the country’s CPI growth has slowed down despite enjoying a slight increase in recent months due to rising petrol prices, prompting the seven-month CPI to increase by 4.07% on-year. Insiders believe that drastic measures are needed to rein in inflation at below 4% as planned in an effort to ensure social security and stabilise people’s lives amid the negative impact of the COVID-19 pandemic. Most notably, prices of major products such as food, fruit and vegetables, especially pork, have been among the key factors that have seen the CPI increase since July, all of which have experienced a downward trend due to rising supply sources. However, petrol prices remain unpredictable as they are largely dependent on the global market. In addition, an increasing demand for learning materials ahead of the new academic year in September and consumer goods in the remaining months of the year shoulder the burden on the economy. Still, the accelerated disbursement of public investment capital will certainly affect market prices in the second half of the year. Nguyen Duc Do, deputy director of the Institute of Economics and Finance under the Ministry of Finance, predicts that demand for fuel is expected not to witness any sharp increases in the future, even in countries where the COVID-19 pandemic has been brought under control. The price of crude oil is anticipated to hover around the US$40 per barrel mark and is unlikely to push up the CPI suddenly, Do analyses. Nguyen Bich Lam, former GSO general director, points out this year’s CPI will remain under control as pork prices are anticipated not to rise further thanks to a sufficient supply, while petrol prices have already been affected by the impact of COVID-19. Economist Ngo Tri Long proposes a number of synchronous and flexible solutions aimed at dealing with unpredictable and complicated developments in the global market, including the effective use of the petrol price stabilisation fund. Incumbent GSO director Nguyen Thi Huong notes that a slowdown in the CPI is a positive signal that supports the government’s inflation controlling efforts, given the fact nearly 31 million employees have fallen victim to the COVID-19 pandemic. “It is difficult for the economy to suffer a deep CPI shock as the demand of the society is not so high, the exchange rate between VND and foreign currencies is quite stable, and the income of the majority of employees is still limited,” says Huong. The government has requested the Ministry of Finance and the State Bank of Vietnam to deploy a flexible fiscal and monetary policy in a bid to ensure macro stability, with a specific priority being given to curbing inflation and removing business hurdles, speeding up the disbursement of public investment capital, and accelerating future economic growth. The government has also assigned the Ministry of Planning and Investment to draft the second relief package to iron out business snags and ensure social security./. Intel Vietnam mulling to increase investment in Ho Chi Minh City US-backed Intel Vietnam is mulling to inject more capital into its operations in Ho Chi Minh City to follow up on its $1 billion investment in the city. This was revealed by Kim Huat Ooi, general manager of Intel Products Vietnam at Ho Chi Minh City at the US Business Summit titled Driving Partnership and Innovation for the Future held in the city this morning (August 25). He lauded Vietnam's investment climate which has improved tremendously over the past years. In the midst of the COVID-19 crisis, Vietnam has taken quick action with strong policies to control the pandemic. As a result, Intel can maintain stable operations during the crisis. In the first half of 2020, Intel saw its output increase 30 per cent, contributing three-fourth of its total global output. Intel has invested $1 billion in Vietnam and is looking to increase this in the coming years. The export revenue of Intel in Vietnam has reached $3.6 billion. With the new investment in Ho Chi Minh City in the coming time, the figure is expected to increase significantly. Intel will also use the fresh capital to develop local middle and senior leaders for the Vietnamese factory, according to Intel Vietnam's general director. Intel's chip factory in Saigon High-Tech Park is its largest chip assembly and test plant in the world. In March alone, the factory produced 2 billion units, including semiconductor chips and processing chips used in computers and other devices. The factory produces 25 chips every second. Intel Corporation first announced a $300 million investment for an assembly and test plant in Vietnam in 2006. The firm’s total registered investment was raised to $1 billion nearly a year later. The plant went into operation in 2010./. Work starts on construction of seaport complex in Ninh Thuan A ground-breaking ceremony was held on August 25 for the first phase of Ca Na Seaport Complex project in Thuan Nam district of the south central province of Ninh Thuan. The project of Trung Nam Group, with is hoped to boost economic development in the southern part of Ninh Thuan. The first phase, with investment of more than 1.46 trillion VND (63.01 million USD), comprises two wharves capable of receiving ships of 70,000 - 100,000 DWT, and another one for ships of 20,000 DWT, along with storage facilities and logistical infrastructure. The design throughput for the first phase is 3.3 million tonnes of goods per year, with the application of smart technology. The project is expected to be put into operation by August 2026, said Chairman of the board of directors of the Trung Nam Construction Investment Corporation Nguyen Tam Thinh. Once operational, the port will create favourable conditions for existing industrial parks and clusters in Ninh Thuan, as well as the south central region and Central Highlands. It is also hoped to facilitate the transportation of equipment for on-going renewable energy projects in the province. On the occasion, Trung Nam Group presented more than 7.7 billion VND to help Thuan Nam district improve its infrastructure and welfare facilities. The group has put into operation eight renewable energy plants with a combined capacity of over 600 MW, and is set to launch a 450-MW solar power project in Ninh Thuan this year./. Vietnam needs to improve post-harvest technologies Vietnam needs to invest more in post-harvesting technologies to improve the competitiveness of its farm produce, including fruits and vegetables, in the global market, experts have said. Poor harvesting and preservation technologies result in a decline in their value, and with the growing competition, the country needs to invest heavily in processing of fruits and other farm produce to hold its own in export markets. According to Ho Thi Thu Hoa, head of the Vietnam Logistics Research and Development Institute, only 0.3 percent of agricultural products in Vietnam benefit from the use of cold chain logistics technologies compared to 3 percent in Germany, 2.6 percent in England and 1 percent in the US. Post-harvest losses in Vietnam are significant at around 25 percent farm since the country has little in the way of post-harvest technologies and machinery. According to the Food and Agriculture Organisation of the United Nations, Vietnam loses 10 percent of its rice output, 10-20 percent of root and tuber crops and 10-30 percent of fruits and vegetables. In the Mekong Delta, a major rice bowl, post-harvest rice losses are worth more than 3 trillion VND (132 million USD) a year, or 10-12 percent of total output. "Packaging farm products plays a very important role in preserving them after harvest, but Vietnamese businesses are not paying attention to that," Hoa said. Some 70 percent of fruit and vegetable exports have been to China, mostly in fresh and unprocessed form. Little went to the Republic of Korea, Japan, the US, or the EU because of Vietnam’s limitations with regard to storage and post-harvest processing, experts said. The country’s seafood faces similar issues, particularly with ocean tuna. Japan is a big market for this fish and willing to pay high prices for it. A number of Japanese experts have attempted to assist Vietnamese fishermen in post-harvest processing, but there has been little progress so far. Le Duy Hiep, Chairman of the Vietnam Logistics Business Association (VLA), said to reduce post-harvest losses it was necessary to make further investments in agriculture, the Government needed to offer incentives to encourage farmers apply high-technology to reduce losses after harvest. Nguyen Thi Thanh Thuc, chairwoman and director of Bagico Company, said to preserve produce, factors that affect quality must be tackled directly such as vegetables being desiccated before packing. The country exports its agricultural products to 120 countries and territories, with key products being rice, coffee, pepper, and seafood. However, in large and fastidious markets like the EU, the US, Japan, and Australia, many of its exports have been refused entry due to microbial infections and residues of veterinary drugs and heavy metals./. HCM City to invest in agri-food safety plan More than 840 billion VND (36.5 million USD) is needed to ensure food safety in Ho Chi Minh City’s agricultural sector in the 2021-2026 period. The municipal People’s Committee has proposed the food safety plan to the Ministry of Planning and Investment and the Ministry of Finance. Under the plan, the food safety management system and infrastructure would be improved, helping to reduce food poisoning cases, disease and pollution. It would also help increase quality and yield in sustainable food value chains to reach export targets. The plan will be conducted in urban and suburban districts such as Cu Chi, Binh Chanh, Hoc Mon, Nha Be and Can Gio districts. Of the total investment, nearly 30 million USD is sourced from ODA loans, while the remainder comes from the city budget. The plan comprises three major components. The first is improving infrastructure for the development of safe agri-food value chains. The second is building capacity and institutional improvement of agri-food safety management. Plan management is the third component. The city’s food safety management is undertaken by its Food Safety Management Board and Department of Agriculture and Rural Development. The Interdisciplinary Steering Committee on Food Hygiene and Safety operates at all levels from communes and wards to districts and the city. Over the years, the city has promoted effective management of production and consumption chains of agricultural products, with traceability and geographical indications to ensure food hygiene and safety for consumers. However, the production scale remains small, and products, mostly raw ones, are only preliminary processed. The number of enterprises investing in agricultural production still accounts for a low rate. In addition, wholesale markets associated with concentrated production areas have not developed in a coordinated way./. UK businesses seek cooperation opportunities in Vietnam As many as 50 UK businesses joined an online meeting to get updates on socio-economic situation in Vietnam as well as developments in the Vietnam-UK relations, and seek opportunities to cooperate with Vietnamese partners in the future. At the meeting, held by the Vietnam-UK Network, Vietnamese Ambassador to the UK Tran Ngoc An briefed participants on the COVID-19 pandemic fight in Vietnam. He said that initial success in the fight has helped Vietnam minimise the pandemic’s negative impacts and maintain business and production activities, enabling the country to attract more investment. The ambassador held that although the pandemic has ravaged the world over the past eight months and affected many plans of activities, Vietnam and the UK have maintained close coordination with each other. Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh and UK Foreign Secretary Dominic Raab had a phone call in Mid-July, during which Raab thanked the Vietnamese side for curing British COVID-19 patients and presenting face masks to UK hospitals and social organisations. Raab affirmed that Vietnam is an important partner in the UK’s foreign policy for Asia-Pacific and Southeast Asia, while showing his hope for stronger partnership between the UK and the ASEAN. Minh affirmed that as the Chair of the ASEAN in 2020, Vietnam will support partners, including the UK, to bolster collaboration with the grouping. Regarding the Vietnamese economic situation, An said that The Economist magazine listed Vietnam among five economies with highest economic growth in the world in 2018, 2019 and 2020. Meanwhile, the Asian Development Bank (ADB) estimated Vietnam’s GDP growth at 4.8 percent in 2020 and 6.8 percent in 2021, the fastest expansion in Southeast Asia and the world. Vietnam’s GDP growth in the first six months of 2020 reached 1.81 percent, led by the strong performance of major sectors such as industry, production and processing, he said, expressing his belief that the EU-Vietnam Free Trade Agreement, which took effect on August 1, 2020, will open up plenty of chances for Vietnam and UK firms. At the meeting, some businesses held that Vietnam’s small enterprises should apply digital technology for higher efficiency. They also discussed measures to increase the number of Vietnamese tourists to the UK. Vice Chairman of the Vietnam-UK Network Paul Smith presented a survey showing that UK businesses are interested in Vietnamese sectors of food and beverage, pharmaceuticals, education, health care, finance, banking, financial technology, tourism, artificial intelligence, environmental protection and renewable energy./. Vietnam Renewable Energy Week 2020 underway The Vietnam Renewable Energy Week 2020 was launched in Hanoi on August 25 by the Vietnam Sustainable Energy Alliance, the Vietnam Climate Action Alliance, and the Vietnam Union of Science and Technology Associations. This fifth holding, “Breakthrough to Recovery and Green Development for a Peaceful Life”, aims to put forward measures promoting sustainable energy development, ensuring energy security, removing barriers, and bolstering green economy recovery and growth. The four-day event will also offer the chance for stakeholders to contribute to the country’s energy transition in an effective and sustainable manner. Cecile Leroy from the Delegation to the European Union in Vietnam said the EU has signed numerous cooperation agreements with Vietnamese ministries and sectors in sustainable energy transition. It has also provided its Vietnamese partners with assistance in energy development policies and in raising capacity, awareness, and energy access among the public. The EU stands ready to share knowledge in projects, finance, and the legal framework for green recovery and development, she said. Symposiums are to be held, including those on rooftop solar energy development and energy transition via solar power solutions and agriculture, among others. The combined power capacity generated by operational renewable energy projects nationwide has to date reached nearly 6,000 MW, of which 31,000 rooftop solar projects generate about 700 MWp. Renewable energy currently accounts for 10 percent of the national grid’s total capacity and Vietnam has emerged as a leader in the development of renewable energy resources in Southeast Asia./. Foreign capital pouring into pharmaceuticals Merger and acquisition (M&A) activities between domestic and foreign pharmaceutical companies are being seen in both production and distribution. Most recently, Japan’s Aska Pharmaceutical signed an agreement to acquire a 24.9 percent stake in Vietnamese pharmaceutical company Hataphar, formally the Ha Tay Pharmaceutical JSC. Other major names in global pharmaceuticals are present in Vietnam, including the Abbott Group from the US and the Adamed Group from Poland. In the context of COVID-19, pharmaceutical companies are expected to enjoy substantial benefits and breakthroughs into the future. The greatest challenge at the moment is that 80-90 percent of raw materials are imported, primarily from China and India. In the first two months of this year, when the pandemic first broke out, material imports from the two countries fell 30 percent and 25.8 percent, respectively, to 27.2 million USD and 9.4 million USD. Market researchers IBM said the size of Vietnam’s pharmaceutical industry could reach 7.7 billion USD in 2021 and 16.1 billion USD in 2026, while researchers IMS Health forecast that per capita spending on pharmaceuticals in the country would rise to 50 USD this year./. MoIT to verify information related to probe on imported H-beams The Ministry of Industry and Trade (MoIT) will verify information provided by concerned parties before issuing a conclusion about an investigation into anti-dumping measures on steel H-beams imported from Malaysia. It is set to organise public consultations for relevant parties to exchange views and update information on the issue. Organisations and individuals involved with products under investigation are urged to register as relevant parties and to send the necessary information to the ministry in order to ensure their rights and benefits. The MoIT decided to launch an anti-dumping investigation on August 24 into a number of H-beams originating from Malaysia. It was initiated based on documents submitted by Vietnamese steel manufacturers in November 2019, which stated that H-beams from Malaysia were being dumped in Vietnam and causing major losses in the domestic industry. Over 17,000 tonnes of H-beams were imported during the investigation period and close to 65,000 tonnes in the year prior. If necessary, the ministry may impose temporary anti-dumping duties based on initial investigations, to prevent further losses in the local steel sector./. US helps HCM City develop smart city operations centre Ho Chi Minh City's Department of Information and Communications on August 25 signed an agreement with the US Trade and Development Agency (USTDA) on technical assistance for the building of a smart city operations centre. The signing took place within the “Ho Chi Minh City - US Business Summit: Driving Partnerships and Innovation for the Future”, co-held by the municipal People’s Committee, the US Consulate General, and the American Chamber of Commerce in Vietnam (AmCham), HCM City Chapter. The smart city operations centre is among four pillars in a master plan to transform Vietnam’s southern economic hub into a smart city in the 2017-2020 period and vision towards 2025. It is the centre of control, or the “brain”, of a smart city, collecting and analysing real-time data and information to help decision-makers govern, plan, and shape the future development of HCM City. The project on technical assistance for the building of the smart city will be carried out by US-based Winbourne Consulting. It has total investment of more than 1.4 million USD, close to 1.2 million USD of which will be provided by the USTDA in the form of non-refundable aid, while the remainder will come from Winbourne Consulting, according to the agreement. HCM City boasts opportunities for US partners: Municipal leader Ho Chi Minh City is a promising destination for US partners thanks to its strengths in many fields, Secretary of the city’s Party Committee Nguyen Thien Nhan told the opening of the Ho Chi Minh City-US Business Summit held online on August 25. Nhan noted that the 10-million-strong city, which is Vietnam’s economic hub, has workplace productivity three-times higher than the country’s average. It is home to Quang Trung Software City, the largest and most successful software centre in Vietnam and a large-scale high-tech park that has attracted more than 7 billion USD and over 160 enterprises with 46,000 employees, posting export revenue of more than 64 billion USD over the last 10 years, he said, adding that the city also has 54 research institutes and universities. It also provides plenty of opportunities for investors given its infrastructure, information technology, and transport, while it is moving towards being a smart city and a renovated and dynamic hub. He also pledged to continue working closely with US partners, considering their success as the city’s own. Noting that Vietnam and the US have enjoyed a fruitful partnership over the course of 25 years of diplomatic relations, he said HCM City is the best at creating stronger links between Vietnam and the US thanks to its potential in investment cooperation. Vietnam is now the 13th-largest trade partner of the US, with two-way trade reaching 77 billion USD in 2019 and 38 billion USD in the first half of 2020, he said, adding that the Intel Group has invested 1 billion USD in HCM City. For his part, US Ambassador to Vietnam Daniel Kritenbrink noted that the relationship between the governments, localities, businesses and people of the two countries has seen major steps forward over the last 25 years. COVID-19 has posed significant challenges for the world as a whole and has affected programmes and events planned by the two countries for 2020. The two nations have already cooperated closely in preventing and controlling the pandemic by sharing information and experience, he said. Lauding the development potential and investment cooperation opportunities in HCM City, the ambassador said its growth towards renovation and smart city development showed the effectiveness of cooperative ties between the US and the city. The two sides have cooperated in seven projects in smart city development, including on setting up an urgent contact centre and developing an Intelligent Operations Center (IOC). He said the private sector will play an important role in Vietnam-US relations and help promote economic growth in Vietnam. This summit is not only a model for public-private partnerships towards a smart city but also provides an environment for the sharing of information and the creation of win-win partnerships. The summit comprised three discussions on investment in developing supply chains in high technology in HCM City, the development of financial technology (fintech) in Vietnam and beyond, and the exploration of cooperative opportunities between HCM City and partners in creative and interactive cities in the east, smart cities, and financial centre projects. It drew out specific cooperation orientations between the city and the US in the 2020-2025 period with a vision to 2030 and spread a strong message of the city’s activeness in attracting new investment waves from US multinationals, especially in the post-pandemic period. A number of cooperation deals were also signed between the city and US partners on this occasion. ASEAN ministers review implementation of economic initiatives Economic ministers from ASEAN member countries reviewed the implementation of economic initiatives in 2020 at a virtual meeting on August 25. The 52nd ASEAN Economic Ministers’ Meeting (AEM-52) was chaired by Vietnamese Minister of Industry and Trade Tran Tuan Anh. Delegates also looked at COVID-19 and the region’s response, including its ability to roll out a comprehensive recovery plan, and exchanged views on recommendations submitted by the special group in charge of ASEAN’s economic integration. Preparations for dialogues with partners and regional businesses were also on the agenda. Ministers approved documents submitted by senior ASEAN economic officials, including the ASEAN digital integration index and terms of reference on the connectivity of ASEAN innovative centres, which are among 13 priority initiatives raised by Vietnam as ASEAN Chair in 2020. The remaining initiatives it proposed are still under consultation and are expected to be completed within the year, as scheduled. Other matters debated included the upcoming negotiations over the Regional Comprehensive Economic Partnership (RCEP) agreement, which is set to be signed later this year, and the implementation of the Blueprint 2025 of the ASEAN Economic Committee. The bloc’s economic relations with partners such as China, Russia, Japan, Canada, the Republic of Korea (RoK), the US, Hong Kong (China), Australia, New Zealand, and the EU were also tabled for discussion. Despite the complexity of the COVID-19 pandemic, Vietnam has made every effort to proceed with ASEAN meetings in order to maintain economic cooperation frameworks and promote trade, investment, connectivity, and innovation. The country has proposed and engaged in regional initiatives to push ahead with economic recovery post-pandemic while maintaining regional and global production and supply chains./. Deputy PM inspects runway upgrading at Noi Bai airport Deputy Prime Minister Trinh Dinh Dung on August 25 required the project management and contractors to ensure the quality, progress and safety of a project on upgrading a runway of Hanoi-based Noi Bai International Airport. During his field trip to the airport, the official stressed aviation security and safety must be maintained during the construction. He asked relevant ministries and agencies to prioritise capital to the projects repairing runways of Noi Bai and Tan Son Nhat International Airport in Ho Chi Minh City. According to the transport ministry’s Thang Long Project Management Board that monitors the construction, 7 percent of the workload of the Noi Bai project has been completed, with 260 billion VND (11.2 million USD) disbursed. The board has submitted a plan on speeding up the pace of the project with a view to completing the upgrade of the 3,000m runway 1B by November 30 so that it can be put into service at the end of December. The transport ministry reported to the Deputy PM on the revision of the master plan for the airport to 2030, with a vision towards 2050, which has been conducted by a French consultation firm since June 2019. Accordingly, Noi Bai will be a civil-military airport, reaching level 4F of the International Civil Aviation Organisation (ICAO). By 2030, the airport can serve 63 million passengers and handle 2 million tonnes of cargo each year. The numbers will reach 100 million passengers and 5 million tonnes in 2050, the ministry said. Notably, it will have three runways by 2030 and four by 2050, along with four terminals. Deputy PM Dung noted that last year, Noi Bai welcomed 29 million passengers as compared with its designed capacity of only 25 million, and the overload would get worse in the years to come. Dung, therefore, urged the ministry to soon complete the revised master plan to report to the government and Prime Minister before it is approved this year, and make investment proposals to the National Assembly. Specialised zones in Phu Quoc Marine Protected Area adjusted The Mekong Delta province of Kien Giang has adjusted zoning at the marine protected area of Phu Quoc National Park on Phu Quoc Island. Of the more than 40,909 ha of the Phu Quoc Marine Protected Area, the strictly-protected zone covers over 7,087 ha, including some 6,658 ha for seagrass conservation in the northeast of the island and nearly 429 ha for coral conservation in the south. The zone for ecological recovery covers more than 11,537 ha, including some 11,363 ha for seagrass ecosystem recovery in the northeast and 174.68 ha for coral ecosystem recovery in the south. There are also 1,212 ha for seagrass and another 8,605 ha for coral in the 9,817-ha service - administrative zone. A buffer zone of about 12,467 ha has also been set up to minimise the impact of socio-economic activities on seagrass and coral conservation. To promote conservation and tap into the potential the Phu Quoc Marine Protected Area holds, Kien Giang authorities are perfecting cooperative models between the Phu Quoc National Park and related parties, with consideration given to the application of new technologies to recover ecosystems and resources and creating new livelihoods for local people. Authorities are also stepping up communications to raise public awareness, developing aquatic breeding facilities, strictly managing fishing activities, and boosting environmental monitoring./. ASEAN, UK hold online economic dialogue The Association of Southeast Asian Nations (ASEAN) and the UK held an online economic dialogue on August 26 as part of the 52nd meeting of the ASEAN Economic Ministers (AEM-52), under the coordination of Minister of Industry and Trade Tran Tuan Anh and British Secretary of State for International Trade Elizabeth Truss. The two sides expressed their concerns over the impact of the COVID-19 pandemic on their economic growth and development. They pledged to join hands to maintain and further deepen the bilateral economic partnership, mitigate the impact of COVID-19 on the economy, and continue pursuing open and transparent economic policies. The two sides recognised their bilateral long-standing relations. Two-way trade reached approximately 42 trillion pounds (53.7 billion USD) over the past half century. They agreed to push ahead with cooperation and support trade liberisation based on the multilateral trade system of the World Trade Organisation (WTO). On the basis of the Hanoi action plan strengthening ASEAN economic cooperation and promoting supply chains to cope with the COVID-19 pandemic, the two sides agreed to strengthen supply chains during and after the pandemic. as well as future cooperation orientations to support these chains. ASEAN and UK also look to enhance collaboration in digital innovation to revive the economy post-pandemic, prioritising small- and medium-sized enterprises and household businesses. The UK side emphasized that the Master Plan on ASEAN Connectivity to 2025 is the basis for the bloc to propose bilateral cooperation plans. The UK has set up a fund for ASEAN’s economic reform programme worth 19 million pounds, focusing on digital innovation, logistics, and policy mechanism reforms. Vietnamese, Chinese localities work to boost ties in border gate-related issues Officials from Vietnam’s northern border province of Cao Bang and Baise city of China’s Guangxi province had talks on August 26 to discuss cooperation in border gates’ activities. The Cao Bang delegation was led by Vice Chairman of the provincial People’s Committee Le Hai Hoa while the Baise side by Vice Mayor of the city Shi Guohuai. On March 22, 2019, the People’s Government of the Guangxi Zhuang Autonomous Region and the Cao Bang People’s Committee signed the minutes of their discussion, in which they agreed to upgrade the pair of Vietnam’s Tra Linh and China’s Longbang into international border gates and open the Na Doong – Na Ray border crossing on the basis of mutual benefit and common development. After discussing cooperation in border gate-related issues, Cao Bang and Baise officials signed the talks’ minutes. Accordingly, the Chinese side will propose its higher-level competent agencies soon complete internal procedures and send replies to the Vietnamese Foreign Ministry and Cao Bang’s administration about the upgrade of Tra Vinh – Longbang border gates. The two sides will also propose relevant agencies allow the temporary opening of the Na Doong – Na Ray border crossing. Regarding the opening of the Dinh Phong – Xinxing border crossing, the officials agreed to promote related procedures and assign their district-level authorities to propose the opening of this crossing so as to facilitate the exchange of goods between their border residents. Cao Bang and Baise also concurred in establishing a mechanism for meetings to serve management of border gates, building plans to create the best business environment in border gate areas, and facilitating customs clearance procedures. Ministers meet to promote RCEP signing by year’s end The 8th Regional Comprehensive Economic Partnership (RCEP) Ministerial Meeting was held online on August 27 under the chair of Vietnamese Minister of Industry and Trade Tran Tuan Anh. The event, attended by economic ministers of 15 member countries, aimed to promote talks on the RCEP towards the signing of this agreement in late 2020 as ordered by RCEP leaders. In his opening remarks, Minister Anh highly valued efforts by negotiators since the year’s beginning, noting that in-depth meetings and discussions have still taken place on schedule despite the prolonged COVID-19 outbreak. Participating officials acknowledged that the pandemic’s negative impact has generated many considerable challenges to trade and investment flows in the region, including the countries participating in the RCEP talks. They highlighted the need for the members to ensure that their markets remain open, especially to essential goods and services, and to continue enhancing cooperation to effectively respond to COVID-19. The ministers emphasised the special significance of the RCEP agreement amid economic uncertainties caused by the pandemic, believing that the deal signing will provide a basis for strengthening the business community’s confidence, making the regional economic architecture more sustainable, and showing the region’s support for an open, comprehensive and rules-based multilateral trading system. At the meeting, they also stressed the RCEP’s role in post-pandemic economic recovery, which will greatly help with stable growth of the global and regional economies. Participants also recognised efforts and strides in the RCEP negotiations to date so that the deal can be inked at the RCEP Summit this November. In particular, they re-affirmed that the RCEP negotiations remain open to India, saying this country engaged in negotiations since the launch in 2012, and it holds potential for contributing to common prosperity of the region. The RCEP is a free trade agreement among the 10 member states of ASEAN and its five partners, namely Australia, China, Japan, New Zealand, and the Republic of Korea. India withdrew from the talks in November 2019./. Petrol prices see slight increase amid decline in oil prices The Ministry of Industry and Trade and the Ministry of Finance has revised the price of petrol to give it a slight increase, while oil products, with the exception of mazut, witnessed a decrease as of 3 p.m. August 27. The retail price of petrol RON 95 rose by VND190 to VND15,114 per litre, while the price of bio-fuel E5 RON 92 remained unchanged at VND14,409 per litre. In contrast, oil prices experienced a downward trajectory, with diesel and kerosene declining by VND240 and VND82 per litre, respectively. In addition, mazut maintained the highest price at VND11,183 per kilogram, the same rate as 15 days previously. Along with the latest adjustments to petrol prices, the ministries have also moved to increase expenditure for the petrol price stabilisation fund by VND363 per litre for E5 RON 92, VND670 for RON 95, and VND453 per kilogram of mazut. The latest price changes have occurred after the two ministries reviewed fuel prices every 15 days in order to make adjustments to domestic prices to match global fluctuations. Source: VNA/VNN/VNS/VIR/VOV/SGT/NDO/Dtinews |
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VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 3001:16 Import-export expected to drive credit growth
Credit growth for the remainder of the year will be driven by imports and exports, according to a recent survey by the State Bank of Viet Nam. The bank’s Monetary Forecasting and Statistic Department say almost half (49 per cent) of credit institutions that took part in the survey believe this will be the major impetus to boost credit. Wholesale and retail (47 per cent), garment and textile (41 per cent) and construction (40 per cent), were the next best industries according to the findings. These four sectors were also expected to push credit growth in 2021 with import and export predicted to be the major driving force. Credit institutions expected a significant increase in credit demand in the second half of this year, based on economic recovery forecasts and demand for business expansion. Credit risk level of loans in the second half of this year was lower than the first but for the whole year, the risk level would be higher than 2019, the survey found. Credit institutions said they had cut marginal interest rates and costs in the first six months of 2020 to increase credit accessibility for customers. Lending terms would also be more relaxed. However, institutions tightened requirements on mortgaged assets and credit rating, especially loans for real estate business, securities and consumer loans, to ensure credit quality and limit risks. The central bank’s statistics showed credit expanded at less than four per cent in the first seven months of this year, equivalent to only half of the same period last year. Tran Du Lich, member of the Prime Minister Nguyen Xuan Phuc Economic Advisory Council, said the credit growth would hardly reach the target of 10 per cent this year, given the low credit absorbability of the economy in the COVID-19 pandemic. Vietnam represents an ideal economic partner for Australia: Expert Vietnam is considered one of the success stories in the fight against the COVID-19 pandemic, and represents an ideal economic partner for Australia, said Dr Jeffrey Wilson, Research Director at the Perth USAsia Centre. In his article published by the Australian Institute of International Affairs on August 25, Wilson said Vietnam has complementary economic needs, a stable business environment, and a high-growing economy driven by youthful demographics and rapid urbanisation and industrialisation. However, Vietnam presently accounts for only 1.7 percent of Australia’s two-way trade, indicating there is considerable room for growth. According to Wilson, Indonesia, Vietnam, and India present themselves as attractive partners for Australia to diversify its economic relationships. The Australian economy now faces the most adverse external economic environment in over a generation. Trade and investment flows – two of the key drivers of Australia’s economic performance– will fall dramatically in 2020 and 2021. However, the effects of these external shocks are amplified by the lack of diversity in Australia’s trade and investment ties. Fortunately, the Australian government has many policies in place to develop new trade and investment relationships. The recent trade agreement with Indonesia, and economic engagement strategies aimed at India, Vietnam, and ASEAN, are leading examples. As COVID-19 has brought into sharp relief the risks associated with a lack of diversity, they should now be accorded as much higher priority than in previous times. As Australia begins thinking about its economic recovery, it also needs to think about what kind of connections it wants with international partners. Despite its many challenges, the crisis offers a historic opportunity to build more diversity and resilience into Australia’s economic relationships as it build a post-COVID-19 future, he said. Singapore aims to preserve jobs amid COVID-19 crisis The need to sustain jobs will remain a top priority for Singapore over the next few years, Singaporean President Halimah Yacob said at the opening of the 14th Parliament on August 24. According to the President, the COVID-19 endemic amplifies the financial pressures faced by Singaporean workers. To create more jobs, the country urgently needs to transform its economy and seek new ways to ensure livelihoods for its people. Yacob stressed that the Singapore Government should consider how to strengthen social safety network so that people can better cope with risks in their lives. During its economic transition, Singapore needs to gradually resume the aviation industry, strengthen the region's digital connectivity, and further reinforce resilience in key sectors such as food, healthcare and supply chain management to create momentum for new sources of growth. Previously, Deputy Prime Minister and Finance Minister Heng Swee Keat said the Singaporean Government will spend 8 billion SGD (5.8 billion USD) to support companies to maintain and create jobs for labourers, and fully tap opportunities for economic growth. As Singapore's economy in the second quarter of 2020 witnessed its worst growth in history and the COVID-19 pandemic remains complicated, Singapore will promote economic recovery strategies, focusing on creating new jobs, supporting industries that most affected by the health crisis, and utilizing growth opportunities./. New decree on administrative fines in border management Individuals who commit administrative violations in national border management and protection will face a maximum fine of 50 million VND (2,160 USD) under a newly-issued decree. For organisations committing the same violations, the fine would be doubled, according to the Government’s Decree No. 96/2020/ND-CP on administrative fines for violations in the field of national border management and protection. Any acts that damage border markers, poles, signs and objects, flag poles, basepoints, and sovereignty steles on islands; change water flows of border rivers and streams, or affect national border; build permanent facilities within 30m from the land border with China or 100m from the land borders with Lao and Cambodia; and illegally construct facilities on border rivers and streams, will be subject to fines of 40-50 million VND. Meanwhile, fines of 20-30 million VND will be imposed on geological exploration, natural resources exploitation and mining activities that are licensed but damage border signs, markers, poles and objects, flag poles and sovereignty steles on islands, and basepoints; maritime defence and border facilities; and the dumping of dirt and gravel in border rivers and streams. Notably, the launch and operation of flying objects within the border area or across the border will face fines of 40-50 million VND, and the use of gun for hunting within 1,000m from the land border will be subject to fines of 30-40 million VND. Warnings or 300,000-500,000 VND penalties will be imposed on Vietnamese citizens who enter land border areas and border belts without bringing identity cards or passports; and those who do not report and register, or hide and facilitate the illegal travelling and stay of others in land border areas. Fines worth 500,000-1,000,000 will be rolled out for border residents using expired border passes to travel through the border, border residents who travel beyond the allowed areas, foreigners entering border belts without reporting to border guards; and border residents grazing cattle and poultry across the border. According to the decree, border residents who allow others to use their valid border passes to travel through the border; and anyone who travels and conducts activities breaching regulations in prohibited areas, will have to pay 1-2 million VND in fines. Deputy Prime Minister urges aviation security Deputy Prime Minister Trương Hòa Bình has ordered domestic airlines to take action to avoid further incidents that threaten aviation security. Chairing a meeting on Tuesday which aimed to review civil aviation security and safety in the first seven months, Bình, who is chairman of the National Civil Aviation Security Committee, pointed out several shortcomings that lead to aviation insecurity. These include thefts, passengers carrying weapons and dangerous items, public disorder and assaults on aviation personnel. Most of those incidents were caused by human mistakes, he said, asking the Civil Aviation Administration of Việt Nam (CAAV) to inspect direct, indirect causes and effects to seek preventive solutions, especially to supervise the problem-solving process. Director general of national flag carrier Vietnam Airlines Dương Trí Thành said some people even accessed the booking reservation systems to steal personal information of passengers. Vietnam Airlines staff have discovered many thefts at check-in counters or on flights. Vũ Thế Phiệt, director-general of the Airports Corporation of Vietnam (ACV), said unlicensed taxi services resumed operation in June and July, posing risks to airports’ security. Deputy Prime Minister Bình ordered the Ministry of Transport to work with the ministries of public security, defence, information and communications to improve quality of information network security and safety. They have been assigned to organise response drills for cybersecurity incidents. Relevant ministries were urged to step up the progress of establishing police stations at key airports and building air security forces. The Ministry of Transport must closely monitor contractors and relevant units conducting runway upgrade projects at Nội Bài and Tân Sơn Nhất airports to ensure their progress as well as security and safety, he said. Airline losses According to Đinh Việt Thắng, CAAV director and chief of the secretariat of the National Civil Aviation Security Committee, 80 per cent of aircraft managed by domestic airlines are not operating. In the first seven months of this year, airports nationwide received about 43 million passengers, a year-on-year decrease of 37.5 per cent. Among 43 million passengers, there were only 7 million people from overseas, down by 71.1 per cent compared to the same period last year. Vũ Thế Phiệt, director-general of ACV, said the business would face revenue losses of nearly VNĐ600 billion this year. “In spite of the losses, we still consider security and safety to be the core of the corporation. We focus our investment in upgrading security infrastructure to be prepared for coming scenarios. The corporation has promoted training for security forces,” he said. VN needs to improve post-harvest technologies for farm exports to be competitive: experts Viet Nam needs to invest more in post-harvesting technologies to improve the competitiveness of its farm produce, including fruits and vegetables, in the global market, experts have said. Poor harvesting and preservation technologies result in a decline in their value, and with the growing competition, the country needs to invest heavily in processing of fruits and other farm produce to hold its own in export markets. According to Ho Thi Thu Hoa, head of the Viet Nam Logistics Research and Development Institute, only 0.3 per cent of agricultural products in Viet Nam benefit from the use of cold chain logistics technologies compared to 3 per cent in Germany, 2.6 per cent in England and 1 per cent in the US. Post-harvest losses in Viet Nam are significant at around 25 per cent farm since the country has little in the way of post-harvest technologies and machinery. According to the Food and Agriculture Organisation of the United Nations, Viet Nam loses 10 per cent of its rice output, 10-20 per cent of root and tuber crops and 10-30 per cent of fruits and vegetables. In the Mekong Delta, a major rice bowl, post-harvest rice losses are worth more than VND3 trillion (US$132 million) a year, or 10-12 per cent of total output. "Packaging farm products plays a very important role in preserving them after harvest, but Vietnamese businesses are not paying attention to that," Hoa said. Some 70 per cent of fruit and vegetable exports have been to China, mostly in fresh and unprocessed form. Little went to South Korea, Japan, the US, or the EU because of Viet Nam’s limitations with regard to storage and post-harvest processing, experts said. The country’s seafood faces similar issues, particularly with ocean tuna. Japan is a big market for this fish and willing to pay high prices for it. A number of Japanese experts have attempted to assist Vietnamese fishermen in post-harvest processing, but there has been little progress so far. Le Duy Hiep, chairman of the Viet Nam Logistics Business Association (VLA), said to reduce post-harvest losses it was necessary to make further investments in agriculture, the Government needed to offer incentives to encourage farmers apply high-technology to reduce losses after harvest. Nguyen Thi Thanh Thuc, chairwoman and director of Bagico Company, said to preserve produce, factors that affect quality must be tackled directly such as vegetables being desiccated before packing. The country exports its agricultural products to 120 countries and territories, with key products being rice, coffee, pepper, and seafood. However, in large and fastidious markets like the EU, the US, Japan, and Australia, many of its exports have been refused entry due to microbial infections and residues of veterinary drugs and heavy metals. Two major shareholders leave Vinaconex Cuong Vu Real Estate and Star Invest are no longer major shareholders at the Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex), according to the Ha Noi Stock Exchange. The northern market regulator said on Tuesday that the two limited liability companies had sold their stakes in Vinaconex on August 14. Cuong Vu Real Estate Co Ltd sold 94 million shares, or a 21.28 per cent stake, it had owned in Vinaconex. Star Invest Co Ltd offloaded all 33.44 million shares, equal to a 7.57 per cent stake. The shares were transferred via put-through transactions on August 13-14, worth nearly VND3 trillion (US$129.4 million). The identity of the buyers remains confidential. Vinaconex shares soared total 20.8 per cent in the two days. Its shares rose 1.2 per cent to end Tuesday at VND32,400 ($1.40) apiece. Cuong Vu Real Estate and Star Invest became major shareholders at Vinaconex in late 2018 when the latter was equitised. The State Capital Investment Corporation (SCIC), representing the Government to control the State capital in State-owned enterprises, decided to sell 254.9 million Vinaconex shares or 57.71 per cent of the company’s charter capital in November 2018. The shares were purchased by the An Quy Hung-led consortium at VND28,900 per share. After the IPO, the military telecommunications group Viettel offered 94 million Vinaconex shares for sale and the investment fund Pyn Elite also wanted to offload 33.44 million shares. Then the shares were absorbed by Cuong Vu Real Estate and Star Invest, becoming the major shareholders with total 28.8 per cent stakes. In the second quarter of 2020, Vinaconex posted a 30 per cent annual decrease in revenue, which dropped to VND1.59 trillion. However, the collection of VND287 billion worth of doubtful debts helped boost the firm’s post-tax profit by 51.3 per cent on-year to VND321.6 billion in the second quarter. In the first six months of the year, Vinaconex reported a total revenue of VND2.59 trillion, down 34.3 per cent year on year, and a post-tax profit of VND385 billion, up 23.4 per cent year on year. Vinaconex blamed the downturn of the real estate market and construction sector for lower revenue in the first half of the year. The construction and real estate firm targets VND9.53 trillion worth of total revenue in 2020, down 4 per cent year on year and VND820 billion worth of total post-tax profit, up 4 per cent on-year. On June 30, Vinaconex had VND18.64 trillion worth of total asset, including VND11.47 trillion worth of short-term assets. Nearly 64 per cent of the short-term assets was doubtful short-term debts, worth VND7.31 trillion. Vinaconex has made a provision worth VND551 billion for those debts. Aquatic exports set to reach US$8.3 billion amid signs of recovery Vietnam's seafood exports look poised to bounce back in the third and fourth quarters and are likely to hit between US$8.26 billion and US$8.3 billion over the course of the year, according to the Association of Seafood Exporters and Producers (VASEP). According to figures released by the General Department of Customs, July witnessed the country’s seafood export turnover reach a figure of US$796.3 million, up 0.8% compared to the previous July. As a result, seafood exports in July continued to undergo a recovery after recording a 0.3% rise in June. Over the course of the opening seven months of the year, aquatic export turnover reached a figure of US$4.4 billion, representing an annual drop of 6%. Throughout the reviewed period, aquatic exports to the United States continued to enjoy positive growth with an increase of 20.8% on-year to US$184.35 million, bringing seafood exports during the seven-month period to US$838.44 million, up 4.5% from the corresponding period the previous year. Furthermore, seafood exports to the EU market also witnessed an improvement, with a drop of a mere 2.3% from last July, while the decrease in previous months stood at over 18%. Elsewhere, aquatic exports to Japan are still facing several difficulties, whilst exports to China have fallen once again. The VASEP believes that with the novel coronavirus pandemic yet to be brought under control globally, it will continue to affect Vietnamese seafood exports to foreign markets during the second quarter of the year. After enduring a decline of 16% in May to US$639 million, seafood exports in June suffered a further decline of 10% to US$626 million. Despite these falls to various markets, the VASEP anticipates that seafood exports will gradually witness a recovery during the third and fourth quarters, with the entire year’s export turnover predicted to hit US$8.26 to US$8.3 billion, a drop of 3.8% from last year. Moreover, there remains plenty of optimistic signs for exports as retail sales in the global market remain stable, with increased demand for frozen, canned, chilled, and smoked seafood with a longer shelf life. At present, global seafood trade is stagnant due to interrupted shipping, although the trend of electronic transactions and online retail will partly offset plummeting market demand. The VASEP also states that the EU-Vietnam Free Trade Agreement (EVFTA), which came into effect from 1 August, could serve as a "boost" for the nation's seafood exports during the remaining months of the year. This could particularly apply to items which are entitled to enjoy a tax rate of 0% as soon as the agreement comes into effect, such as tiger shrimp, frozen white shrimp, and processed octopus and squid. "The EVFTA will serve as a catalyst for the fisheries sector to increase its competitive advantage over countries which have FTAs with the EU, such as Ecuador, India, and Thailand. According to many studies, after the trade deal enters into force, seafood exports to Europe may increase 20% compared to before as a result of the competitive advantage over other nations. For example, European partners will increase their buying of Vietnamese tuna which will enjoy a tax rate of 0%, instead of buying from other markets with higher tax rates," VASEP Secretary General Truong Dinh Hoe analyses. Experts believe CPI in 2020 will be kept under control Despite the negative impact of the COVID-19 pandemic, Vietnam’s inflation for 2020 is projected to fall between 3.5-3.9% to ensure social security and stabilise local people's lives, experts say. The prediction has been made by the General Statistics Office (GSO) that believes that curbing the consumer price index (CPI) below 4% for the year is feasible. Statistics show the country’s CPI growth has slowed down despite enjoying a slight increase in recent months due to rising petrol prices, prompting the seven-month CPI to increase by 4.07% on-year. Insiders believe that drastic measures are needed to rein in inflation at below 4% as planned in an effort to ensure social security and stabilise people’s lives amid the negative impact of the COVID-19 pandemic. Most notably, prices of major products such as food, fruit and vegetables, especially pork, have been among the key factors that have seen the CPI increase since July, all of which have experienced a downward trend due to rising supply sources. However, petrol prices remain unpredictable as they are largely dependent on the global market. In addition, an increasing demand for learning materials ahead of the new academic year in September and consumer goods in the remaining months of the year shoulder the burden on the economy. Still, the accelerated disbursement of public investment capital will certainly affect market prices in the second half of the year. Nguyen Duc Do, deputy director of the Institute of Economics and Finance under the Ministry of Finance, predicts that demand for fuel is expected not to witness any sharp increases in the future, even in countries where the COVID-19 pandemic has been brought under control. The price of crude oil is anticipated to hover around the US$40 per barrel mark and is unlikely to push up the CPI suddenly, Do analyses. Nguyen Bich Lam, former GSO general director, points out this year’s CPI will remain under control as pork prices are anticipated not to rise further thanks to a sufficient supply, while petrol prices have already been affected by the impact of COVID-19. Economist Ngo Tri Long proposes a number of synchronous and flexible solutions aimed at dealing with unpredictable and complicated developments in the global market, including the effective use of the petrol price stabilisation fund. Incumbent GSO director Nguyen Thi Huong notes that a slowdown in the CPI is a positive signal that supports the government’s inflation controlling efforts, given the fact nearly 31 million employees have fallen victim to the COVID-19 pandemic. “It is difficult for the economy to suffer a deep CPI shock as the demand of the society is not so high, the exchange rate between VND and foreign currencies is quite stable, and the income of the majority of employees is still limited,” says Huong. The government has requested the Ministry of Finance and the State Bank of Vietnam to deploy a flexible fiscal and monetary policy in a bid to ensure macro stability, with a specific priority being given to curbing inflation and removing business hurdles, speeding up the disbursement of public investment capital, and accelerating future economic growth. The government has also assigned the Ministry of Planning and Investment to draft the second relief package to iron out business snags and ensure social security. Enterprises reach out for assistance Facing massive difficulties, many enterprises suffering from stalled production are waiting for government-led policies to go further into the business community, making it more favourable to boost economic growth. Do The Tac, 55, has been operating The Tac Agri Trade Co., Ltd. for 10 years in Khoai Chau district in the northern province of Hung Yen. Every year, the company of 25 employees has earned revenues of about $500,000 from selling fruit, which were exported to China and other regions. “However, the sum has been slashed by half now as we cannot sell goods. The pandemic is making the public tighten their belt,” Tac told VIR. “We have had to self-process the fruit into small packs and are finding new outlets.” Dong Ket has over 3,000 hectares of longan. However, thousands of tonnes of the fruit have not been consumed, while farmer households have invested a huge sum of money and great labour into the farms. Many households and small-scale companies like The Tac Agri Trade have faced bankruptcy as many of them have big loans from banks. “We have met with banks to ask for extension of loan payments, but it has been quite a hard job. Banks also need money to keep operations,” Tac said. “We even want to seek loans from the Vietnam Bank for Social Policies (VBSP), but it is impossible.” VBSP, established in 2002 to deploy preferential credit policies for the poor and other policy beneficiaries, has been offering a VND16 trillion ($695.65 million) credit package to businesses seeking preferential loans at a zero per cent lending rate in order to pay salaries for their employees. However, the loans, featuring the government’s efforts to support enterprises during COVID-19, may be never reached by borrowers as the loaning conditions are a tough nut to crack. To obtain such a loan, a business has to have 20 per cent or at least 30 employees with social insurance who were forced to halt employment between April 1 and June 30. The time of layoff must have been at least one continuous month, and the employer has paid in advance at least 50 per cent of salaries. Also, the employer must be facing financial difficulties and cannot pay salaries, and must have had no bad debt at credit institutions and foreign banks by December 31, 2019. If the borrower can meet all of these conditions, he must submit a loan proposal to the district-level people’s committee where the enterprise and the bank’s branch are located. Within three working days, the committee must appraise the proposal and then submit it to the chairperson of the provincial-level people’s committee. Within two working days, the chairperson must issue a decision on adopting the proposal, and send it to the VBSP branch which will process final procedures to provide the loan for the enterprise. “The procedures and conditions are quite hard, and we will never be able to reach such a loan,” Tac said. Over the past few months, the government has been deploying some sturdy measures to support enterprises. Specifically, the State Bank of Vietnam has been implementing a package worth over VND300 trillion ($13 billion) for enterprises and households, in the form of debt payment deferral and preferential loans. The Ministry of Finance has also been deploying a VND180 trillion ($7.82 billion) package to support these people and enterprises. The government has also been carrying out a VND62 trillion ($2.7 billion) package to support 20 million poor and unemployed people. A recent survey by the General Statistics Office showed that COVID-19 has had negative impacts on 85.7 per cent of enterprises and nearly 20 per cent of them have had to halt operations. There will be over 160,000 enterprises halting operations if COVID-19 lasts throughout the third quarter of the year, and the figure will be 205,000 if the pandemic lasts into the fourth quarter. The United Nations Development Programme (UNDP) has just released results of a May telephone survey over 930 vulnerable households, and 935 vulnerable household businesses (HBs), and micro-, small-, and medium-sized enterprises (MSMEs) in 58 cities and provinces across Vietnam. The surveyed HBs and MSMEs suffered from a sharp reduction of revenues as COVID-19 caused a scaling-down of business activities. On average, as compared to the December 2019 level, MSMEs suffered a 78 per cent reduction in revenue in April, while HBs faced a deeper decrease by 83 per cent. Notably, firms surveyed said they have faced difficulties in accessing government support. “The government should provide concrete guidelines of the beneficiary definition and requirements and allow digital technology to be used for applications. In this way, the affected firms can identify whether they fit in the beneficiary list and register for support,” said the UNDP report. National Assembly deputy Nguyen Sy Cuong, representing the south-central province of Ninh Thuan, proposed that the government “pay special attention to how its policies to assist enterprises are being materialised.” “For example, the VND62 trillion ($2.7 billion) package is facing difficulties in disbursement, while the VND16 trillion ($695.65 million) from VBSP have yet to be disbursed. The bank reported that it has yet to receive any loan proposal from any enterprise,” Cuong said. Quang Ninh IZs and EZs attractive to domestic and foreign investors By virtue of improved inter-regional transport infrastructure and the establishment of the Quang Yen coastal economic zone with lucrative investment incentives, more foreign investors are considering the north-eastern province of Quang Ninh an ideal destination. The Quang Yen coastal economic zone (EZ) covers about 13,300 hectares built on two zones – an urban high-tech industrial complex in Quang Yen town and Uong Bi city covering 6,400ha; the Dam Nha Mac seaport and associated services, plus an industrial zone (IZ) on an area of 6,000ha. To step-by-step meet the requirements of a coastal EZ and diversify investment resources, Quang Ninh has spent more than VND1 trillion ($43.47 million) on transport infrastructure connecting IZs with each other and between the IZs and Halong-Haiphong Expressway. Quang Ninh is also investing in a riverside route linking Quang Yen with Dong Trieu towns. In a recent talk with VIR, Koen Soenens, general sales and marketing director at DEEP C Industrial Zones, hailed Quang Ninh’s unique factors to become its next investment destination in the country. Along with this, DEEP C invested in two IZs in Quang Yen town – Bac Tien Phong and Nam Tien Phong IZs, also known as DEEP C Quang Ninh – on a total area of 1,680ha. In DEEP C’s investment plan, a 150,000-square-metre ready-built factory space at DEEP C Quang Ninh is scheduled to be built and put into operation next year. DEEP C leaders are expected to sign its first leasing contract in Quang Ninh by the end of the year, with the project to be implemented early in 2021. “Adjacent to an expressways heading to the border with China, near international airports and Lach Huyen International Gateway Port, DEEP C Quang Ninh, like DEEP C Haiphong, is well-positioned for us to build a seamless IZ ecosystem connected to a seaport,” said Soenens. Moreover, Quang Ninh has on offer all the factors that are of prime concern to investors in making funding decisions: political stability, policy, tax incentives, and a favourable geographic location. Accordingly, as the prime minister has approved to add Quang Yen to Vietnam’s coastal EZ development planning, the zone will offer investors tax incentives on the same level as the Dinh Vu-Cat Hai coastal EZ in Haiphong. Along with DEEP C, Quang Yen town is luring the attention of diverse investors such as Amata, Viglacera, NOSCO-VINALINES Ship Repair JSC, Xuan Truong Hai Transportation and Trading JSC, Haiphong Auto Repair Co., Ltd., and more. For the 2020-2025 period, the province is looking to further develop existing IZs and EZs, improving their advantages and competitiveness to attract qualified investors such as DEEP C to build IZ infrastructure, as well as to entice qualified secondary investors with high-tech capabilities. In recent times, Quang Ninh has attracted a number of sizable and experienced investors in several fields, including Rent-A-Port, TCL, Foxconn, Texhong, Amata, and Thanh Cong, among others. These projects all use international consulting, modern equipment and production technology, and advanced management models for the production of eco-friendly products and services, minimising environmental impact. Recently Vietnam’s conglomerate Vingroup also announced a plan to invest in an industrial production complex south of the Luc Lam River at the Mong Cai border gate EZ, with a capital scale of more than VND3.4 trillion ($147.8 million) in order to manufacture spare parts and accessories for cars and other motor vehicles. According to Quang Ninh Economic Zones Management Authority’s analytics, the province is currently home to 11 IZs which were included in the development plan to 2020, at a total area of over 11,740ha. The majority of those IZs have attracted secondary investors, with occupancy rate at over 60 per cent. Furthermore, Quang Ninh also accommodates four established EZs (Van Don with 217,000ha and three border gate EZs at Mong Cai, Hoanh Mo-Dong Van, and Bac Phong Sinh) as well as Quang Yen, which is processing establishment procedures. So far, Quang Ninh’s IZs and EZs have drawn in 250 non-state investment projects, 178 domestic ventures, and 72 foreign-invested ones. The efforts to tackle traffic infrastructure bottlenecks through many key projects like the expressway connecting Haiphong, Halong, Van Don, Tien Yen, and Mong Cai, or Van Don international airport, have made trade activities more convenient than ever. This has entailed more capital flow of domestic and overseas investors to Quang Ninh, and IZ infrastructure developers like DEEP C are eager and striving to become well-prepared to avail of this great opportunity. An investment promotion seminar held by Quang Ninh People’s Committee with the theme “Quang Ninh – the next investment location” will take place on August 28-29 in Halong city. The seminar seeks to promote investment links between Quang Ninh and South Korean investors, showcasing an overview to the province as well as open up opportunities for partnerships. New bailout put forth to aid recovery Following an initial bailout currently under implementation, the Ministry of Planning and Investment and relevant governmental agencies are mulling over another support package to help businesses stay afloat and spur on economic growth amid the ongoing pandemic. Amidst the complicated global impacts of the COVID-19 crisis, Minister of Planning and Investment Nguyen Chi Dung last week proposed another bailout in a bid to dispel difficulties in production and business, as well as aiming to retain social stability. Minister Dung highlighted that solutions should focus on small- and medium-sized enterprises (SMEs), create a large number of jobs while avoiding firing employees, and boost business so they can resume operations. “Big companies that are facing some challenges, because fixed costs and maintenance costs are too huge while revenues decrease significantly, will also be beneficiaries of the new bailout,” he stressed. At first, Minister Dung proposed to extend the policy effects in the previous bailout to 2021 if the pandemic continues unabated. Such policies as delaying the payment timelines of VAT, corporate and personal income tax, and land rental fees, and all policies in Decree No.41/2020/ND-CP released in April on tax and land rent deferrals will be extended to the end of the year. Circular No.01/2020/TT-NHNN, enacted in March on debt rescheduling exemption or reduction of interest and fees, is also being considered for extension of implementation to support corporate clients affected by COVID-19. It could even be amended for businesses to more easily enjoy the policies. “It is necessary to provide better financial policies to strengthen production and consumption, as well as deliver vouchers, or government supply of goods to people who suffer difficulties caused by social distancing, in order to guarantee essential needs and promote local consumption,” Minister Dung proposed. He emphasised the importance of the new bailout, which should not only strengthen development of various industries and attract foreign direct investment and innovation, but also should be robust enough to strengthen the economy as well as cover a variety of beneficiaries. According to the Ministry of Planning and Investment (MPI), the pandemic has hurt most socioeconomic sectors, especially aviation, tourism, and catering. Many have already gone bankrupt or been dissolved, or had operations suspended or scaled down. Meanwhile, employee incomes have also been affected significantly, as unemployment rises. The incomes of around 17.6 million people have dropped during the pandemic, leading to a fall in local consumption. The number of enterprises suspending their operations in the first seven months of the year jumped by 41.5 per cent on-year to 32,700. The performance of the first bailout, valued at tens of billions of US dollars including a VND62 trillion ($2.7 billion) package to support the poor and unemployed, has not been as successful as intended. As of mid-July, around VND11 trillion ($478.2 million) was delivered to 11 million people as well as 9,400 business households. After the issuance of Decree 41, the Ministry of Finance estimated that the number of firmss that could enjoy the support was about 700,000, or 93 per cent of the total across the country, while the amount of tax and land rental fees with extended timelines was estimated at VND182 trillion ($7.9 billion). However, in fact, only 179,000 documents were sent to tax agencies and localities as of the end of July to delay the payment of tax and land rental fees, with the amount over VND53.6 trillion ($2.3 billion), equivalent to 29 per cent of expectations. Nguyen Duc Huy, deputy chief of office at the General Department of Taxation, explained that COVID-19 pulled most enterprise revenues and profits to zero or even a loss, and so they do not require extension of payment timelines. “Also, some of those with good business do not need to delay the tax or land rental payment timeline,” said Huy. PM assigns Ministry of Finance to expand environmental protection taxpayer base The environmental tax on nylon packages has been raised again as the government is looking to expand taxpayer base. Prime Minister Nguyen Xuan Phuc has just issued Directive No.33/CT-TTg regarding the management, recycling, disposal, and reduction of plastic garbage. The document clarifies that plastic waste pollution has grown into one of the biggest challenges that the nation is facing, and so it is necessary to take strong measures to protect the environment. The PM assigned the Ministry of Finance to research and outline amendments to the Environmental Protection Tax Law to extend the taxpayer base and also increase the tax rate on nylon packaging and other plastic items. Moreover, the ministry was tasked with levying taxes on plastic raw materials, as well as inspect and prevent environmental tax evasion. The ministry collaborates with the Ministry of Natural Resources and Environment to research and propose financial policies to stimulate plastic waste recycling activities, as well as provide incentives on eco-friendly packaging and materials. Additionally, the ministry will also outline priority standards or norms for public the procurement of reused and eco-friendly products. The Ministry of Industry and Trade was put in charge of achieving the target of “no single-use plastic items in stores, markets, supermarkets in urban areas in 2021, and the whole country in 2025.” The relevant ministries must issue regulations stipulating standards for quality and design of plastic products to promote recycling and reuse, and set a minimum reused plastic content for plastic products. Moreover, they have to issue directions about manufacturing and consuming sustainable plastic items. The Ministry of Health will have to classify and lessen the amount of plastic waste generated at hospitals and medical establishments and add plastic waste reduction as a category to the assessment of eco-friendly medical establishments. Savills Vietnam remains positive property prospects despite pandemic Even with the entire economy of Vietnam affected by the coronavirus pandemic, the property market's prospects remain positive as it promises to show the first signs economic recovery. Neil MacGregor, managing director of Savills Vietnam is confident of the property market's prospects Vietnam has retained exceptional growth, despite being affected by various economic crises over the last 25 years. Besides being considered the sector of choice for investors in Vietnam, property remains the safest and most effective investment channel. Even though COVID-19 might last into early 2021, Savills anticipates a strong recovery from 2021 to 2022 and beyond. Moreover, effective and timely government support, as shown through its effective pandemic response and recent stimulus policies, will provide further powerful leverage for real estate businesses and the national economy. Since the mid-90s, the domestic property market has had a pattern of impressive growth, brief downturn, and recovery. However, the COVID-19 pandemic in the first half of 2020 negatively affected the market in an unprecedented manner. 1995 to 1998: Stabilising relations with the United States and officially joining ASEAN in 1995 marked successful milestones. The transition from centrally planned to a market driven economy was establishing a robust platform for lasting change and growth. The General Statistics Office (GSO) shows growth in 1995 was 9.54 per cent, and 9.34 per cent in 1996, correlating with per capita GDP increasing from $277 in 1995 to $324 in 1996. Inflation was reined in from 12.7 per cent in 1995 to 4.5 per cent in 1996 and 3.6 per cent in 1997. At the same time, GDP growth and increased consumer confidence resulted in rising land prices, as the property market started to show signs of promise. The domestic market then entered a prolonged slowdown with the onset of the Asian Financial Crisis in 1998 impacting the nascent market economy. GSO data shows 5.76 per cent economic growth in 1998 while inflation reached 9.2 per cent. However, the limited market opening resulted in a proactive government response which helped successfully manage the crisis and enable a strong foundation for future growth. 1998 to 2008: The early years of the 21st century were characterised by further economic integration. In 2001, the Vietnam-US Bilateral Trade Agreement (BTA) was ratified followed by Vietnam becoming a member of the World Trade Organisation (WTO) in 2006. Back in 2000, Vietnam was considered the next "Asian Tiger" economy with per capita GDP growing to $396, compared to $328 in Laos and $283 in Cambodia. New national economic and macroeconomic policies saw 6.79 per cent GDP growth in 2000, up to 6.89 per cent in 2001, followed by robust GDP growth averaging 8.23 per cent per annual from 2004 to 2007. Property market fluctuations inevitably followed. National economic indicators reflected a strong global economy, increased confidence in local economic recovery and steady increases of foreign direct investment (FDI). Furthermore, effective government policies contributing to market performance saw land prices ramping up. Significant price growth driven by increasing transactions led to the property market becoming everyone’s favourite investment channel. However, land prices increasing significantly over the two most frantic periods of 2001 to 2003, and 2007 through 2008, started to exclude lower-income investor participation from Ho Chi Minh City and Hanoi. 2008 to 2018: Growth punctuated by slowdown continued. In mid-2008, effects from the Global Financial Crisis led to a downward cycle in the domestic property market and land prices dropped by up to 40 per cent. Property inventory in 2012 was over VND100 trillion ($4.35 billion), while property enterprises under bad debt increased. Rapidly rising inflation forced the State Bank to tighten monetary policies. The government, by revising policies and releasing economic stimulus packages to attract investment, helped successfully navigate the crisis. Social-housing-focused companies helped responsibly modify social housing policies and pricing. Together with government-supported VND30 trillion ($1.3 billion) credit packages, a real estate recovery started but inventory remained high. The market started to demonstrate sustained growth. Property segments bursting into life such as hotels and second homes ushered in new economic potential for provinces gifted with favourable geography and natural appeals such as Ba Ria -Vung Tau, Phu Quoc Island, Nha Trang, Halong, and in particular Danang. 2018 to 2020: The latest World Bank report finds Vietnamese economic growth over the last two years has been mainly driven by high consumer demand and manufacturing-based export growth. Economic data indicating 7 per cent real GDP growth in 2019, reflected one of the fastest-growing economies in the region. While globalisation has positively affected Vietnam, the COVID-19 pandemic has caused extensive damage to global and local economies. Fortunately, early and decisive measures from the government meant Vietnam was far less affected than other countries in the region. While fiscal policies were stable with GDP growth reaching 3.8 per cent in the first quarter of 2020, the pandemic, as it expanded, became more unpredictable. The ASEAN Development Bank (ADB) estimates that Vietnam's GDP growth will reach 4.1 per cent in 2020. Although this is 0.7 per cent lower than their forecast in April, it remains the highest forecast growth in Southeast Asia. The World Bank anticipates 3 per cent GDP growth in 2020, and its 6.8 per cent growth forecast for 2021 shows confidence remains high in the local economy. The Vietnamese economy is primed for recovery and the real estate sector is set to be one of the key beneficiaries in 2021 and beyond. VNN |
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VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 3102:35 ODA disbursement targets a challenge: Official
While the disbursement of official development assistance (ODA) has seen progress, without drastic solutions, it will be difficult for ministries and sectors to achieve allocation targets, Deputy Minister of Finance Tran Xuan Ha has said. He told a meeting in Hanoi on August 26 that 3.742 trillion VND (nearly 161.5 million USD) in ODA funding had been disbursed as of the end of August, or 21.64 percent of this year’s target, and higher than the disbursement in the same period last year yet still lower than the disbursement of domestic public capital, which currently stands at 40 percent. Among ministries, the Ministry of Transport posted the best performance in ODA disbursement, at about 51 percent as of the end of August. It acknowledged, however, that disbursement still falls short of expectations. It blamed the slowness partly on the impact of COVID-19, which has been an obstacle to foreign experts coming to the country and also affected the bidding process, as well as the prolonged handling of adjustments to certain projects. The Ministry of Agriculture and Rural Development said that since the beginning of the year, it has requested subordinate units make disbursement commitments for each month and quarter. However, it noted, the coronavirus outbreak has affected the bidding process. Also, most agricultural projects are small and scattered over different localities, which are slow to provide reciprocal capital, to the detriment of project implementation. Another official at the event pointed out that projects funded via ODA or foreign preferential loans are suffering more from the pandemic compared to those using domestic funds, because they must satisfy lenders’ requirements such as using imported equipment or foreign experts, contractors, and advisers. Apart from disbursing assigned capital for 2020, ministries and sectors also have to work on funds they didn’t finish allocating last year, adding more to their workload, he added. To speed up ODA and foreign capital disbursement, the Ministry of Finance has asked other ministries and sectors to consider completing their public investment allocation targets as an important political task. Deputy Minister Ha called for coordination among them to thoroughly deal with the obstacles, adding that his ministry will discuss problems arising during disbursement with lenders./. Finance Ministry launches open budget portal The Ministry of Finance (MoF) launched an open budget portal at https://ckns.mof.gov.vn/ on August 26. Built based on advanced models from around the world and Vietnam’s requirements for openness and transparency in public finances, it looks to improve efficiencies in the distribution, management, and utilisation of public resources. It is also expected to help MoF compile reports on open budgets in a faster and more accurate manner and keep a close watch on budget reports from ministries, State agencies, and localities. Speaking at the launch ceremony, which was also part of the activities marking the 75th anniversary of Vietnam’s financial sector, Minister of Finance Dinh Tien Dung underlined that the launch of the portal is of great importance to openness and transparency in public finances. It is also the first step towards the implementation of the financial sector’s open data portal, which will be linked with national portals. The portal is expected to provide individuals, businesses, researchers, and local and international organisations with useful data and information on public finances, thereby enhancing social accountability and the effective use of State budget funds, he added. Operations Manager for the World Bank (WB) in Vietnam Stefanie Stallmeister voiced a belief that the new portal will improve openness and transparency and effectiveness in balancing the budget, along with macro-economic management, risk awareness, and responsibility in public service provision. The portal was built with support from the Vietnam Public Financial Management (PFM)’s Analytical and Advisory Assistance (AAA) Programme, and co-financed by the Swiss and Canadian Governments through the WB in 2016./. Farmers in An Giang reap bumper rice crop Farmers in the Mekong Delta province of An Giang have done extremely well from the recent summer-autumn rice crop despite facing challenges since the beginning of the year, in particular from saline intrusion. Though severely affected by climate change, the Mekong Delta province of An Giang nonetheless earned handsome profits from the recent summer-autumn rice crop, with local farmers potentially pocketing 900 to 1,300 USD per hectare after deducting costs. Rice production in the province’s summer-autumn crop amounted to some 1.2 million tonnes amid the adverse impacts of climate change. The achievement is primarily due to proactive measures being taken against saltwater intrusion, including retaining fresh water, rescheduling crops, and changing rice varieties. All local rice has been sold, mostly for export. According to the local agriculture sector, the bright prospects for rice exports nationwide in recent times encouraged local companies to buy large amounts from farmers, including those from An Giang. Still, the rice sector faces numerous challenges from now until the end of the year as the flood season has only just begun. Numerous response plans have been deployed, including switching crops to ensure the financial security of farmers. Mekong Delta provinces have carried out various response measures against the COVID-19 pandemic and climate change since the beginning of this year, with rice production not interrupted to any great extent. The rice sector has also been striving to meet the strict requirements of fastidious foreign markets. With abundant harvests and exponential export growth, farmers’ livelihoods have been greatly improved. COVID-19: Indonesia boosts foreign investment attraction to revive economy Indonesian President Joko Widodo plans to boost foreign investment to support the virus-battered economy as the government’s stimulus spending remains slow and household spending weak. The leader has instructed Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan to bolster investment in the third quarter this year, saying this would be the key to economic growth. Indonesia’s economy dropped by 5.32 percent in the second quarter of 2020 compared to the same period last year. Household spending, which makes up over 50 percent of the local GDP, declined by 5.51 percent year-on-year, while investment reduced by 8.61 percent./. Thai PM proposes opening door for foreign tourists Thai Prime Minister Prayut Chan-o-cha on August 26 proposed opening the country’s door to foreign tourists who come from countries with a small number of COVID-19 cases. The proposal was in response to a call from the state and private sectors. The Thai leader said he agreed that Thailand should open the door in a limited way to foreign tourists so as to improve the economic situation, and affirmed his government will do all it can to ease the economic difficulties caused by the pandemic. He added that state officials are discussing suitable measures to solve the problem of the tourist quantity while ensuring the general safety. Thailand did not see any community-infected COVID-19 case over the past three months. However, the country’s economy experience a fall as tourism and export – its two main sources of income – are heavily influenced by the pandemic. Indonesia, Philippines enhance economic, trade cooperation Indonesia and the Philippines have discussed a proposal to organise dialogues in copper and textiles, taking each other’s advantages and boost economic and trade links between the two countries. At the virtual 8th Meeting of the Joint Working Group (JWG) on Trade, Investments, Handicrafts and Shipping held on August 11, Iman Pambagyo, Director-General for International Trade Negotiations at Indonesia’s Ministry of Trade, and Ceferino S. Rodolfo, Undersecretary for Industry Development and Trade Policy of the Department of Trade and Industry of the Philippines, agreed to finalise a number of Memoranda of Understanding on investment promotion, halal products quality assurance, and the creative economy. The two sides also agreed to hold dialogues on cooperation in copper and textiles within the year in order to exchange information on best practices and current industry regulations, and discuss collaboration activities, with the participation from both the government and private sector. They consented that in the long term, these dialogues are seen as avenues to boost the manufacturing capabilities of the two countries’ industrial sectors through the infusion of investments and technology. The Indonesian side proposed increasing cooperation in fisheries and border trade. The Philippines is committed to consider the proposals given its relevance to both the Philippines and Indonesia as archipelagic states with common borders and taking into account the developments in sub-regional integration, Undersecretary Rodolfo said. The two countries also committed to work on outstanding issues with the end view of enhancing the business environment affecting the operations of both sides’ businesses. The JWG serves as a focused mechanism to discuss trade, investments, economic cooperation and other issues affecting the business environment, apart from the regular engagement of both countries under the ASEAN framework. In 2019, Indonesia was the Philippines’ 8th trading partner, with total two-way trade hitting 7.5 billion USD. Indonesia was also the Philippines’ 13th export market, 6th import source (out of 191), and 27th source of approved investments. GMS countries seek to revive tourism Countries from the Greater Mekong Subregion (GMS) convened the first Destination Mekong Summit via video conference on August 26 to discuss ways to revive tourism during and after the COVID-19 crisis, according to the Cambodian Ministry of Tourism. Senior official from the GMS countries, namely Cambodia, China, Myanmar, Thailand, Laos and Vietnam, touched upon various topics including solutions to the impact of the pandemic, ways to restore regional tourism, and measures taken by each GMS country to ensure tourists' safety and to prevent the spread of the virus. The meeting noted that the infection rate in the GMS countries is very low compared to that of other regions but foreign tourists are still not permitted because the risk of imported cases is still high. Thailand initiated the "green travel bubble" concept on a bilateral or trilateral basis during the meeting, and if successful it could be extended to a multilateral level. Vinamilk issues additional shares to increase capital The Vietnam Dairy Products Joint Stock Company (Vinamilk) has announced it will issue additional shares worth over 3.48 trillion VND (150 million USD). The 348 million new shares will cost 10,000 VND each. The list of shareholders will be finalised on September 30. As of August 25, more than 1.74 million Vinamilk shares were sold on the market. Total capital was estimated at over 44.6 trillion VND in 2019. It posted consolidated net revenue of some 15.4 trillion VND in the second quarter of this year, up 9.5 percent against the previous quarter and 6.1 percent against the same period of 2019./. Minister calls on northern localities to use ODA selectively Minister of Planning and Investment Nguyen Chi Dung urged localities on August 26 to not use Official Development Assistance (ODA) loans next year for projects where funding can be mobilised from the private sector or domestic sources. Interest rates on ODA are relatively high, so funds must be used selectively on projects that are practical and vital to the development of localities, Dung told an online conference on the formulation of socio-economic development and public investment plans for the northern midlands and mountainous region and the Red River Delta in the next five years and 2021. It aimed to address difficulties facing cities and provinces in the region in building 2021-2025 plans for socio-economic development and public investment and in proposing solutions and policies to fuel economic growth and disburse public investment and other funding sources this year. The minister asked localities to continue promoting reforms with a strategic vision in a bid to formulate plans that best match their potential and advantages. Localities must also economically and effectively exploit resources, especially land, Dung said, adding that they need to exert tight control over modified public investment projects to minimise revenue lost from the State budget and prevent waste. They should also prioritise major projects that create momentum and have a positive effect on local socio-economic growth. Similar conferences will also be held for the central, central highlands, southern, and Mekong Delta regions./. Singapore, Indonesia to begin discussions on “fast lane” for essential travel Singapore and Indonesia are set to begin discussions on a "fast lane" to allow essential travel to gradually resume, said Singapore's Ministry of Foreign Affairs on August 25. It was agreed by Singapore Foreign Minister Vivian Balakrishnan and his Indonesian counterpart Retno Marsudi during the latter’s visit to Singapore from August 24 – 26. Marsudi has also paid a courtesy call on Prime Minister Lee Hsien Loong. Singapore has established “fast lane” with Malaysia and China and is discussing the setup of similar lanes with several others, including Japan. Indonesia has also established “fast lane” for essential travel for business purposes with China, the Republic of Korea and the UAE. Both ministers discussed how the two countries can continue to work together to overcome common challenges brought about by the COVID-19 pandemic, said the Singapore Ministry of Foreign Affairs in a statement. They agreed that both countries should work closely together to strengthen public health cooperation, enhance economic growth and investments, deepen financial cooperation and facilitate safe travel, it said. In a Facebook post on August 25, PM Lee said he spoke to Indonesian President Joko Widodo several times in the past few months, and continued the discussion with Indonesian FM Marsudi on "jointly overcoming the pandemic". He also noted that Singapore is on track to remain the top investor in Indonesia this year, which has been the case since 2014./. German businesses eyeing Vietnam Authorities in the German city of Hamburg and German businesses in general have expressed their interest in the potential the Vietnamese market holds and their belief that the EU-Vietnam Free Trade Agreement (EVFTA) will help open up more opportunities for German companies in the country. At a recent working session with Ambassador of Vietnam Nguyen Minh Vu, First Mayor of Hamburg Peter Tschentscher spoke highly of the traditional friendship and potential for cooperation between the two countries. Hamburg always has its doors open and is ready to bolster cooperation with Vietnam, especially in fields where both sides possess strengths, he affirmed. The mayor lauded the Vietnamese community’s dynamic integration into German society as well as its contribution to Hamburg’s economic development and cultural diversity. For his part, Ambassador Vu said Germany is a leading partner of Vietnam in the EU, with two-way trade reaching 14 billion EUR in 2019. He also highlighted the development of relations between Vietnam and Hamburg, particularly in trade, maritime transport, shipbuilding, and tourism, saying the German port city is as an important gateway for Vietnamese goods entering Germany and Europe. Trade between Vietnam and Hamburg exceeded 2.32 billion EUR last year, up 10.8 percent year-on-year, according to the ambassador. He said the two sides still have substantial potential for cooperation, most notably in maritime transport and renewable energy, including wind power, which is one of Hamburg’s strengths, and human resources training. The ambassador hopes that Hamburg can step up connectivity and cooperation with coastal localities in Vietnam such as Da Nang, Hai Phong, and HCM City. At a meeting with representatives from the Hamburg Chamber of Commerce (IHK), the German Asia-Pacific Business Association (OAV), and German companies, Vu spoke about Vietnam’s socio-economic development this year and the Vietnamese Government’s efforts at reforming administrative procedures and improving the local business environment to attract more foreign investors. The EVFTA and the EU-Vietnam Investment Protection Agreement are both expected to create new opportunities for Vietnam and its partners, he said. The embassy is ready to work with German companies to promote cooperation between the two sides and to organise trade, investment, and tourism promotions between Vietnam and Hamburg. President of IHK Hamburg Norbert Aust spoke highly of Vietnam’s dynamic development over the last 30 years, affirming the country is an attractive destination for both European and German investors. More than 200 companies from Hamburg have established economic ties with Vietnam, while 60 others have opened representative offices or joint ventures in the country. President of OAV Hans-Georg Frey said the association has focused on cooperation with ASEAN member countries while highlighting the long-term relationship between Vietnam and Germany in cooperation projects, particularly in renewable energy, the environment, and vocational training. Vietnam, he added, has become an attractive destination for German companies in recent years. He expressed his belief that with the Vietnamese Government’s efforts to improve the investment environment, the country’s socio-economic stability, and the EVFTA coming into effect, Vietnam can serve as a potential and reliable partner in the region, and the Vietnam-Germany strategic partnership will thrive in the near future. German business representatives also shared their experience in doing business in various sectors in Vietnam, such as food, coffee, design, and foreign trade, with many saying the EVFTA will help remove tariff barriers and offer greater opportunities to both sides. Participants were also impressed by Vietnam’s success in containing the coronavirus, expressing their hope that entry restrictions and quarantine procedures will be lifted soon so that trade may resume between the two countries./. Import-export expected to drive credit growth Credit growth for the remainder of the year will be driven by imports and exports, according to a recent survey by the State Bank of Vietnam (SBV). The SBV’s Monetary Forecasting and Statistic Department said almost half (49 percent) of credit institutions that took part in the survey believe this will be the major impetus to boost credit. Wholesale and retail (47 percent), garment and textile (41 percent) and construction (40 percent), were the next best industries according to the findings. These four sectors were also expected to push credit growth in 2021 with import and export predicted to be the major driving force. Credit institutions expected a significant increase in credit demand in the second half of this year, based on economic recovery forecasts and demand for business expansion. Credit risk level of loans in the second half of this year was lower than the first but for the whole year, the risk level would be higher than 2019, the survey found. Credit institutions said they had cut marginal interest rates and costs in the first six months of 2020 to increase credit accessibility for customers. Lending terms would also be more relaxed. However, institutions tightened requirements on mortgaged assets and credit rating, especially loans for real estate business, securities and consumer loans, to ensure credit quality and limit risks. The central bank’s statistics showed credit expanded at less than four percent in the first seven months of this year, equivalent to only half of the same period last year. Tran Du Lich, member of the Prime Minister Nguyen Xuan Phuc’s Economic Advisory Council, said the credit growth would hardly reach the target of 10 percent this year, given the low credit absorbability of the economy in the COVID-19 pandemic./. HCM City strives to speed up public investment disbursement The Government has asked the Asian Development Bank (ADB) for a loan of approximately 1 billion USD to ensure capital supply for the Ben Thanh - Suoi Tien metro project, HCM City’s second metro line. The new loan is expected to be approved by the Government and the ADB next year. The HCM City People’s Committee, in consultation with the city’s Management Authority for Urban Railways (MAUR), is working with the Ministry of Finance on procedures for verifying re-lending conditions, which will serve as a foundation for talks on supplementary loans over the next year. MAUR announced on August 25 that both new loans and the cancellation of a previous loan of 390 million USD from the ADB had undergone thorough consideration by the municipal People’s Committee and the MAUR and been approved by the bank. This will not affect project implementation, as the new loan covers the cancelled amount, MAUR explained, adding that it will also reduce financing costs. The ADB also urged Vietnam to promptly abort the previous loan to balance out emergency assistance for other programmes and projects on mitigating the impact of COVID-19, as agreed by the bank and the Vietnamese Government./. July auto sales stagnate after surging in June Auto sales stagnated in July following a surge in the sale of both locally-assembled and imported cars in June. Figures from the Vietnam Automobile Manufacturers’ Association (VAMA) reveal that sales totalled 24,065 units in July, an increase of a mere 0.3 percent month-on-month after rising 26 percent in June. July sales included 16,088 locally-assembled units, up 2 percent year-on-year, while sales of imported vehicles stood at 7,977, down 2 percent. June saw the sale of locally-assembled cars rise 43 percent month-on-month to 15,874 units and imported vehicles by 21 percent to 8,155. The sharp increases were attributed to the fact that most local car dealers were offering major discounts to kick-start demand. The Government’s move to cut car registration fees by half also stimulated buying. Director of auto dealer Thien Phuc An, Nguyen Tuan, said most customers had refrained from buying a new car until registration fees were cut from the beginning of July. They rushed to sign good deals in June then waited before registering the new car, he said. For that reason, few sales took place in July. Insiders have forecast that sales will slow down further during lunar July, which is from mid-August to mid-September. This is traditionally called the “Month of the Ghost” in Vietnam, and people widely believe they should not make major decisions, such as purchasing cars or real estate, to avoid bad luck. Sales of imported vehicles totalled 4,078 in the first half of August, almost equal to the July figure and only down slightly year-on-year. As of August 15, Vietnam had imported close to 49,050 vehicles this year, worth more than 1.1 billion USD. This was only half of the 89,860, worth over 2 billion USD, imported in the same period last year. Thailand and Indonesia remained the two largest exporters of automobiles to Vietnam, accounting for 76 percent of the total in July. Thailand topped the list, sending more than 2,300 cars to Vietnam, up 33.3 percent month-on-month. Indonesia sent 1,300, an increase of 664 (or 100.04 percent) against June. Other major exporters included China, with 719 vehicles, the Republic of Korea with 121, and Japan with 80./. MoIT urges plastic producers to apply for anti-dumping duty exemption The Ministry of Industry and Trade has urged plastic producers to apply for exemptions from anti-dumping duty on the ministry’s public service e-portal at https://dichvucong.moit.gov.vn or to the Trade Remedies Authority of Viet Nam. Deadline for the submission is 5pm, September 24, 2020. On July 20, the ministry issued Decision No 1900/QD-BCT about the imposition of official anti-dumping duty on plastics and articles made of polymers of propylene originating from China, Thailand and Malaysia. The official duties ranged from 9.05 per cent to 23.71 per cent, taking effect from July 23 and valid for five years. Under the ministry's Circular 37/2019/TT-BCT regulating the application of trade defence instruments, the exemption of anti-dumping duty would be given to imported products which domestic producers could not produce or which could not be replaced by domestically-produced products. Other items subject to the exemption included imported products which competed directly with domestically-produced products but were not sold in the domestic market and products for which local production did not meet domestic demand. In order to obtain exemptions from the anti-dumping duty, importers of one of the products eligible for exemption must submit applications regarding the anti-dumping duty. VN firms urged to embrace digital transformation to boost exports Vietnamese firms regardless of their scale need to get up to speed on digital transformation to enable them to further penetrate global markets, a webinar heard on Wednesday. Tran Phu Lu, deputy director of the Investment and Trade Promotion Centre of HCM City, told the seminar titled Digital Transformation and Key Legal Points to Take Advantage of the EVFTA’s Opportunities in the Current Context that trade disputes and the COVID-19 pandemic have affected global investment and trade, and supply chains have been disrupted. Viet Nam’s trade revenues were down 2.1 per cent year-on-year in the first half of the year to US$238.4 billion, with exports falling 1.1 per cent to $121.2 billion. Lu quoted World Bank experts as saying that in the long run, the impacts of COVID-19 and trade tensions could lead to a profound restructuring of global value chains, enabling Vietnamese firms to enter them. Viet Nam is the EU’s 17th largest trading partner and the second largest in Southeast Asia while the EU is one of the country’s major markets, he said. “The European Union-Viet Nam Free Trade Agreement (EVFTA), which has taken effect since earlier this month, is expected to open new doors and create growth momentum for Viet Nam’s economy and exporters. “It is expected to boost digital transformation at Vietnamese companies to enable them to capitalise on opportunities brought by the agreement.” Viet Nam’s exports to the EU last year accounted for only 1.8 per cent of the bloc’s total imports, and so there is much room left, especially with the EVFTA removing 85.6 per cent of tariff lines, equivalent to more than 70 per cent of the country’s exports to the EU. To succeed in that market, Vietnamese firms need to focus on obtaining market information, improving the quality of their products and services, building and promoting their brands, professionalising sales, and increasing the adoption of advanced technologies. Besides, their products must meet safety standards as well as social responsibility and intellectual property requirements. Dr Nguyen Tuan Hoa of the Green Economic Institute, an arbitrator at the Viet Nam International Arbitration Centre, concurred with Lu, saying that to capitalise on the EVFTA, Vietnamese firms need to meet three main criteria: product origin, quality and digital capability. “EU businesses are 10-15 years ahead of Vietnamese enterprises in terms of digital capacity, and so we must strive to achieve the similar level as them so that we can do business with them. “Thus, digital transformation is an inevitable process. If we don't do it, we will be left behind.” Enterprises should start to get acquainted with e-contracts, pay digital taxes and digitalise all business activities, he said. Digital transformation is the process of creating a new operating method based on digital technologies like IoT, cloud, big data, AI, and blockchain to create new production and business models, he said. “Successful digital transformation will bring many benefits to businesses such as reducing costs and enabling them to access any market, not just the EU.” E-contract Lawyer Dinh Quang Thuan of the Global Vietnam Lawyers Co. Ltd said the most popular trading method today is the signing of electronic contracts using e-signature technologies and digital signature certification services. Signing of e-contracts would help businesses save time and costs, especially in the current situation, he said. In reality, the number of Vietnamese firms signing e-contracts remains modest since they are afraid of legal and security risks and increase in costs, he said. He expected the signing of e-contracts to increase soon as companies realise the importance of investment in digital transformation to enhance their competitive advantages. To reduce the risks involved in e-contracts, firms should carefully study their business partners, choose prestigious ones, exchange information via email through clearly registered and owned domain names, he said. They should consult experts and lawyers before signing e-contracts to help ensure safety, he said. Lu said: “In the context of the prolonged epidemic, the use of digital transformation for market access and penetration is [vital]. “This is the time for businesses to realise the advantages of the digital economy and the urgent need for digital transformation.” The webinar was organised by the Investment and Trade Promotion Centre of HCM City and the Viet Nam International Arbitration Centre. Rooftop solar power needs more policy support The Viet Nam Renewable Energy Week 2020 was launched in Ha Noi on Tuesday. It is co-organised by the Viet Nam Sustainable Energy Alliance, the Viet Nam Climate Action Alliance, and the Viet Nam Union of Science and Technology Associations. This fifth event, “Breakthrough to Recovery and Green Development for a Peaceful Life”, aims to put forward measures promoting sustainable energy development, ensuring energy security, removing barriers, and bolstering green economy recovery and growth. The four-day event will also offer the chance for stakeholders to contribute to the country’s energy transition in an effective and sustainable manner. Cecile Leroy from the Delegation to the European Union in Viet Nam said the EU has signed numerous cooperation agreements with Vietnamese ministries and sectors in sustainable energy transition. It has also provided its Vietnamese partners with assistance in energy development policies and in raising capacity, awareness and energy access among the public. The EU stands ready to share knowledge in projects, finance and the legal framework for green recovery and development, she said. Renewable energy currently accounts for 10 per cent of the national grid’s total capacity and Viet Nam has emerged as a leader in the development of renewable energy resources in Southeast Asia. Rooftop power Rooftop solar power in Viet Nam has exploded with 1,000MWp in just two years, however, there are still many obstacles, especially policies, finance and initiatives to promote its development. A seminar titled “Developing rooftop solar power in Viet Nam: Benefits, bottlenecks and solutions" was held within the framework of the event. Viet Nam Electricity (EVN) reported that the country has a total of 45,299 rooftop solar power projects put into operation nationwide by August 23, with a capacity of 1,029MWp, output reaching about 500,692MWh, emissions reduction of about 457,132 tonnes of CO2 (equivalent to 77,257 TOE). Nguy Thi Khanh, director of Green Innovation and Development Centre (GreenID), said that the supporting price mechanism has helped Viet Nam achieve 1,000MWp for rooftop solar power in the past two years, and at the same time create conditions for thousands of domestic and foreign investors and enterprises to participate in the market from research, production to distribution. However, the result was low compared to the technical potential estimated at 48,000MWp of rooftop solar power, said the director. "There are still many bottlenecks that need to be removed, especially related to policies and finance to promote rooftop solar power development," said Khanh. Tran Viet Nguyen, an EVN representative, said that rooftop solar power had generated a lot of electricity on the grid. To continue to promote rooftop solar power development, EVN had publicised processes, procedures, and created maximum conditions for investors in the process of signing the connection agreements, and power trading contracts. However, Nguyen said that in reality, the communications and promotion for rooftop solar power were still limited; many households were hesitant in investment due to a lack of information about product quality, equipment installation, operation and warranty units. At the same time, the cost of equipment and installation was still high, there were no policies to encourage household customers to invest and install; there were no national technical standards for rooftop solar power equipment and systems, he added. To promote rooftop solar power projects, Nguyen proposed the Government, ministries, sectors and investors continue to study initiatives, mechanisms and supporting packages to reduce costs of installation and operation, then it was possible to replicate rooftop solar power, especially for low-income households. In addition, EVN also proposed the Ministry of Industry and Trade and the Ministry of Science and Technology to soon study and promulgate safety standards and techniques for rooftop solar power. Intraday trading, short selling soon available: draft circular Investors may be able to buy and sell shares within the day if the securities firm is allowed to balance the shortage of securities to settle the transactions, according to the Ministry of Finance. Investors must sign a contract with their securities companies and the contract should clarify the risks, expenses and losses that investors must pay for, the ministry said in a draft circular to guide the securities market trading. Each of investors can only open one intraday trading account at the same securities firm where they have the main trading accounts. The intraday trading account must be separated from the main account or it should sub for the main account. The securities firm is obliged to split an investor’s main account, intraday trading account and depository account (if any) from one another. The list of stocks available for intraday trading will be picked by the securities company and those stocks should be the ones available for margin lending at the stock exchanges. The brokerage must post the list of stocks available for intraday trading on its website. Within the trading day, if the total quantity of stocks bought by the investor outclasses the quantity of stocks offered for sale or vice versa, the brokerage house is obliged to balance the cash or the stock difference when the transactions are settled. On the other hand, investors are required to pay all expenses to the securities firm for its support to settle the transactions. In return, the brokerage may ask the investors to deposit collaterals for their transactions in cash or securities. The total value of all intraday trading deals at each securities firm cannot exceed a specific rate compared to its equity capital. The figure cannot beat the rate compared to the firm’s daily average trading value made in the previous month. The rates will be regulated by the State Securities Commission (SSC). The SSC is also empowered to halt the intraday trading session to settle the market amid potential turbulence. In addition, investors are able to short-sell if they open short accounts at the eligible brokerages where their main trading accounts are managed. The short account is a sub to the main account or it should be a separate account. Under the draft circular, stocks traded on the Unlisted Public Company Market (UPCoM) may be available for margin lending. According to Bao Viet Securities Co (BVSC), the regulations on intraday trading and short selling may give the market a boost if the circular gets approved as the two methods will attract more investors and increase the market trading liquidity. The company also said that the two tools will help Viet Nam meet the standards set by the two international finance firms FTSE and MSCI, improving its chance to be upgraded to the emerging market level and draw more foreign capital. Conference promotes Japanese investment in Binh Duong About 280 leaders of Japanese enterprises took part in an online investment promotion conference held on August 26 to introduce the southern province of Binh Duong’s industrial capacity and potential. Co-organised by the Osaka Chamber of Commerce and Industry and Binh Duong-based industrial infrastructure developer Becamex IDC, the function gave information on the local industrial parks and incentives for investors, while collecting investors’ profiles and demand. Representatives of the provincial competent agencies and sectors took the occasion to answer questions from Japanese firms that are looking for investment and cooperation opportunities in the locality. Speaking at the event, Permanent Vice Chairman of the provincial People’s Committee Mai Hung Dung said Vietnam in general and Binh Duong in particular prioritise foreign-funded projects that apply advanced technologies and have high value added and linkages to form global supply chains. With strength in industrial development, Binh Duong is the best option for foreign investors in Vietnam, he added. Currently, the province is ranked second nationwide in terms of foreign investment attraction by reeling in over 35.05 billion USD from 65 nations and territories. Japan has so far poured capital in many big projects here./. Japanese investors satisfied with investment conditions in Hung Yen: diplomat Japanese enterprises operating at Hung Yen’s industrial park are pleased with favourable conditions they have received here, with many planning to expand their investment, according to Japanese Ambassador to Vietnam Yamada Takio. The diplomat made the remark at a meeting between working delegations of the Foreign Ministry and the embassy with authorities of the northern province on August 26 to promote investment cooperation between Japan and Hung Yen. Hung Yen adjoins Hanoi and is located close to the capital’s Noi Bai international airport, as well as to the Hai Phong and Cai Lan ports. At the meeting, Deputy Foreign Minister Le Hoai Trung said the province has all conditions needed to serve all types of investment. He expressed his hope that the embassy will inform more investors on the locality to boost related economic and cultural cooperation ties. Chairman of the provincial People’s Committee Nguyen Van Phong stated Japan investors in Hung Yen are highly valued for their investment scale, production technologies, environmental protection efforts, and tax payment. Currently, Japan is the biggest foreign investor in the province with 166 projects worth over 3 billion USD. For his part, Yamada Takio highlighted Hung Yen has favourable conditions for building factories, adding that in addition to big names like Panasonic, Toto, and Daikin, small Japanese firms also choose to invest in the locality. Many of them operate at the local Thang Long 2 industrial park, he said, noting that the expansion of the park will help attract even more Japanese capital. The diplomat took the occasion to list a number of difficulties in purchasing materials in Vietnam and seeking high-quality employees, then asked local authorities to promote linkages among firms and the development of support industry. He also suggested Hung Yen boost the quality of high school education and the teaching of the Japanese language at school./. Construction starts on Ca Na Seaport Complex Project Ninh Thuan Province people's Committee held the groundbreaking ceremony for the first phase of Ca Na General Seaport Project on August 25. The seaport will cover over 100 ha with a designed capacity to deal with 3.3 million tonnes of goods each year. It is located to the west of Sung Trau tourism area, Phuoc Diem Commune, Thuan Nam District. This is the border area between Ninh Thuan and Binh Thuan provinces and adjacent to the coastal road DT 701. The first phase of the project was approved by Ninh Thuan People's Committee in 2018 and an adjustment was issued on August 24. The project includes several main constructions including two 70,000-100,000 DWT ports, a 20,000 DWT port, warehouses and other infrastructure. The port will enable firms in Ninh Thuan as well as the South Central Coast and Central Highlands to work more efficiently. It would also help to improve the transportation of components of renewable energy projects in Ninh Thuan. The project will use smart technology to help deal with the cargo and promote sustainable development. The first port is expected to be completed in December 2022. The construction of the second port will be started in January 2023 and completed in October 2025. The 20,000 DWT port will be built in November 2025 and completed in August 2026. ASEAN economic ministers hold consultation with Australia, New Zealand The ASEAN economic ministers held the virtual 25th consultation with external partners Australia and New Zealand on August 29, within the framework of the 52nd ASEAN Economic Ministers’ Meeting and related meetings. The event was co-chaired by Vietnamese Minister of Industry and Trade Tran Tuan Anh, Australian Minister for Trade, Tourism and Investment Simon Birmingham, and Minister of State for Trade and Export Growth Damien O’Connor. They said two-way trade between ASEAN and Australia rose slightly to 87.8 billion USD last year from 86.8 billion USD in 2018. Meanwhile, that between ASEAN and New Zealand went up 6.6 percent to 12.1 billion USD in 2019 from 11.4 billion USD in 2018. Australia’s direct investment in the bloc reached 32.6 billion USD last year, or 5.5 percent of the country’s total. New Zealand also poured 560 million USD in the grouping, accounting for 3.2 percent. Expressing concern over the impacts of COVID-19, ministers said the hardest-hit sectors include transportation, tourism, retail and other services, besides disruption of supply chains and financial markets. They reaffirmed commitment to opening trade and investment markets to reinforce resilience and sustainability of regional supply chains and maintain the flow of goods and services. They pledged not to impose new trade limitation measures, including non-tariff ones that hurt the flow of key goods and services in the fight against the pandemic. Participants agreed to give priority to facilitating economic recovery following the pandemic, as well as strive to sign the Regional Comprehensive Economic Partnership this year, thus expressing support for regional multilateral trade system and regional economic integration. Acknowledging progress in negotiations for the upgrade of the agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), they directed officials to continue stepping up the process in the near future, including removing unnecessary barriers to restore regional business community’s trust. They highlighted a need to reform the World Trade Organisation and vowed to join hands during the process to meet expectation of member states. They consented to hold the 12th AANZFTA Joint Committee and the ninth ASEAN – Closer Economic Relations (CER) Integration Partnership Forum at the earliest possible time. ASEAN, India seek ways to foster economic growth Economic ministers of 10 ASEAN member states and India discussed measures to fight the COVID-19 pandemic and maintain macro-economic stability at the 17th AEM-India Consultations held within the framework of the 52nd ASEAN Economic Ministers’ Meeting (AEM-52) on August 29. The event was co-chaired by Vietnamese Minister of Industry and Trade Tran Tuan Anh and India’s Minister of Railways and Minister of Commerce and Industry Piyush Goyal. The ministers said that to boost economic development and ensure macro-economic stability, it is necessary to reopen markets and ensure sustainable supply chains in the region, especially for essential commodities such as pharmaceuticals, medicine and food. They recalled both sides’ efforts to ratify their investment agreement and review the ASEAN-India Trade in Goods Agreement (AITIGA). They also highly evaluated activities of the ASEAN-India Business Council in 2020, especially amid the COVID-19 pandemic, which they said, have helped promote trade and investment cooperation and mitigate negative impact of the pandemic. ASEAN statistics showed that the trade turnover between ASEAN and India accounted for 2.7 percent of the bloc’s total trade value, while India’s investment in the bloc made up 1.3 percent of the total FDI attracted by the bloc. ASEAN, partners agree to promote post-COVID-19 economic cooperation The Economic Ministers of ASEAN member states and their partner countries on August 28 emphasised the importance of further strengthening regional economic cooperation and promoting economic growth post COVID-19. In a Joint Media Statement issued after the 8th East Asia Summit (EAS) Economic Ministers’ Meeting, which was held in the form of a video conference as part of the 52nd ASEAN Economic Ministers’ Meeting and related meetings (AEM-52), the Economic Ministers from the ten ASEAN Member States, Australia, China, India, Japan, the Republic of Korea, New Zealand, Russia and the United States underscored the importance of strengthening regional supply chains to make them resilient and less vulnerable to shocks and to advance sustainable economic growth. They reaffirmed their commitment to promote trade and investment, minimize disruptions to trade and global supply chains and facilitate supply chain connectivity, including for essential goods such as medical supplies, medicines, including vaccines, food, commodities and other essential supplies and services in the region. They welcomed regional initiatives to mitigate the impact of the pandemic including the establishment of the ASEAN COVID-19 Response Fund, as well as the work towards the establishment of the ASEAN Regional Reserve of Medical Supplies and the Standard Operating Procedures for Public Health Emergencies Response. They acknowledged the important role of initiatives which aim to ensure the equitable global distribution of safe and effective COVID-19 vaccines, recognized the importance of facilitating essential movement of people across borders, without undermining each country’s efforts to prevent the spread of the virus, to stabilize the trade and investment. The Ministers reiterated their support for ASEAN and ASEAN-centred architecture, reflected among others in the ASEAN Outlook on the Indo-Pacific (the Outlook), which could contribute to post-pandemic recovery in the region. They exchanged views on how to accelerate economic growth, maintain supply chains and market stability, and strengthen the economic resilience of the EAS region post COVID-19. They also discussed the importance of harnessing the opportunities of digital economy, and how to enhance the application and the utilization of digital technologies in the region to facilitate digital economy. The Ministers affirmed that this is especially important during the COVID-19 pandemic and this provides appropriate hard/soft infrastructure and human resources development that considers the needs and reskilling and upskilling of persons likely to lack digital skills and access to technology including women, MSMEs and other vulnerable groups, especially those living in remote and rural areas and more likely to lack digital skills and access to technology. They also underscored the importance of collective efforts in promoting economic and social resilience in the region, and reiterated their support for the necessary reform of the WTO. The Ministers vowed to continue to work together to realize a free, fair, transparent, nondiscriminatory, predictable, and stable trade environment, and affirmed the importance of agreed upon rules in the WTO, which can enhance market predictability and business confidence. They agreed that any trade restrictive emergency measures put in place to address the impact of COVID-19 must be targeted, proportionate, transparent, temporary, consistent with WTO rules and do not create unnecessary barriers to trade or disruption of global and regional supply chains. The Ministers acknowledged the significant contribution of Economic Research Institute for ASEAN and East Asia (ERIA) through activities that support economic integration and digital economy in the region. They welcomed ERIA’s paper on "Accelerating restoration of economic growth, maintaining market stability and strengthening resilience of the EAS region in response to the COVID-19 pandemic", and encouraged ERIA to undertake policy-based research to improve trade and investment including making value chains resilient to shocks of EAS economies, effectively address the impending recession, promote new technologies and develop a framework for the EAS regional economic integration and development after overcoming the COVID-19 pandemic, taking into account existing initiatives. ASEAN, Canada look to negotiate bilateral trade deal The 9th AEM-Canada Consultations took place on August 29 within the framework of the 52nd ASEAN Economic Ministers’ Meeting (AEM-52). Vietnamese Minister of Industry and Trade Tran Tuan Anh and Canadian Minister of Small Business, Export Promotion and International Trade Mary Ng co-chaired the virtual event. Participating ministers evaluated growth in trade exchange and investment between the two sides when two-way trade reached 17.1 billion USD and Canada’s investment in ASEAN hit 3.2 billion USD last year. These figures helped Canada become ASEAN’s ninth biggest trader and fifth largest investor, they noted. They acknowledged positive progresses in implementing a plan within the framework of the ASEAN-Canada Joint Statement on Trade and Investment in the 2016-2020 period, and approved another plan for 2021-2025 with extensive commitments. They appreciated main outcomes of the fourth trade policy dialogue between the bloc and Canada held on June 8-12, with the focus on Government procurement, labour, environment and State-owned enterprises. The ministers also hailed both sides’ efforts towards negotiations on a bilateral trade agreement in the time ahead, while showing concerns over negative impact of the COVID-19 pandemic on people’s lives and economic development in the region and over the globe. They pledged to continue opening the market and boosting investment to encourage the circulation of essential goods and services. They also agreed not to apply protection measures, including non-tariff measures that negatively affect the flow of essential goods and services in the coming time to join hands in fighting the pandemic. Source: VNA/VNN/VNS/VIR/VOV/SGT/NDO/Dtinews |
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VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 302:22 Red River Delta to be logistics centre of the country  Investment attraction in North Vietnam over the next five years will focus on infrastructure and logistics development in order to enable the Red River Delta region to become a key logistics centre for the country, as well as to draw more international investment into the region. At last week’s meeting held by the Ministry of Planning and Investment (MPI) and other ministries, agencies, and localities, services such as seaports, sea transport, logistics, and aviation were cited as the key sectors for upcoming investment and development by Tran Duy Dong, director general of the MPI’s Department for Local and Regional Economy. The affirmation is part of the terms of the socioeconomic development plan and public investment targets of both 2021 and the 2020-2025 period for the Red River Delta region. The region, with Hanoi as the centrepiece, is the hub of politics, culture, and the economy, with Hanoi-Haiphong-Quang Ninh as a development triangle connecting to other economic areas in both the country and overseas. The Red River Delta is also a location where factories of leading manufacturers such as Samsung, LG, Panasonic, and VinFast are based. As a result, developing seaports, logistics, and more in the region is a strategic priority. According to the master plan for seaports for 2021-2030 with a vision to 2050 drafted by the Vietnam National Maritime Bureau, around VND100 trillion ($4.35 billion) is required for seaport infrastructure. “The annual volume of goods transported through seaports usually increases by tens of percentage points. Two decades ago only 73 million tonnes were transported by seaports, but the volume rose to 654 million last year,” a representative of the bureau said. “In the north, Lach Huyen deep-water port in Haiphong, which can receive ships with of 100,000-200,000 tonnes, enabled Vietnam to become a key part of the global supply chain,” he added. Thus, in addition to such world-leading corporations in transport and port operations that already have a presence in Vietnam like Hutchison, PSA, DP World, SSA, Maersk, and CMA-CGM, it has become necessary to lure more investment into the sector to increase the potential of terminals and sea ports, along with aiding the evolution of add-on services like loading and unloading, warehouses, logistics, and the road system. Besides this, the road transport system also needs to be developed synchronously to match the increasing demand for logistics and enable the Red River Delta region to become the key logistics centre of Vietnam. According to Decision No.356/QD-TTg from 2013 on the Vietnamese road transport development scheme to 2020 and orientation towards 2030, around 35 projects related to building, upgrading, or expanding national highways have come to fruition, connecting big centres together and linking mountainous provinces with administrative centres, sea ports, and airports. Asserting the result of implementing the socioeconomic development plan for 2016-2020, Tran Duy Dong from the MPI said that the transport system in the region is the best in the country and is constantly improved, providing motivation for growth and added links between the Red River Delta, the key northern economic region, the capital, the northern midlands, and beyond. “We should mobilise all resources to realise the plans, while synchronously developing and step-by-step modernising infrastructure system for fast and modern development to make sure that the Red River Delta will become a big centre for logistics, trade, and investment in the country,” said Dong. Additionally, health, education and training, and scientific research will also be a focus for the development of the region in the time coming. Tourism will also be developed sustainably to become a key, environmentally friendly economic sector while effectively promoting the traditional cultural values associated with Red River civilisation. The industry will be focused on fields with high productivity and added value, applying science and technology for increased export potential and ability to join global value chains. In the first seven months of the year, socioeconomic development has been hit by the pandemic, but development indicators of the region are still positive. Regional GDP growth fell to 3.74 per cent, but was still higher than the average of the country (1.81 per cent). The index of industrial production of some provinces in the region increased, such as Haiphong (12.8 per cent), Quang Ninh (7.8 per cent), and Hung Yen (6.9 per cent). Total state revenue of the region was VND284.2 trillion ($12.36 billion), equivalent to 36.5 per cent of the country’s total revenue, reaching 52.3 per cent of the yearly estimate. Export turnover was $49.3 billion, accounting for 33.4 per cent of the country, rising by 4.9 per cent on-year. Total registered FDI, meanwhile, was $5.824 billion, equalling 31 per cent of the country, of which Hanoi ranks second nationwide in registered capital ($2.82 billion) and in project numbers (336). Vietnam’s CPI index goes up slightly in August As reported by the General Statistics Office, Vietnam’s consumer price index (or CPI) slightly went up 0.07 percent month-on-month in August due to the impacts of heavy rainfalls nationwide and rise in domestic rice and education service prices. The figure was down 0.12 percent from December and up 3.18 percent annually. On eight-month calculation, the index rose by nearly 4 percent year-on-year, the highest in the past five years. Among 11 categories of goods and services, seven saw rising prices, including food and dining services, beverages and cigarettes, housing and construction materials, medicines and medical services, transportation, education, goods and other services. Three others posted decrease in prices, including apparel, headwear and footwear, post and telecommunications, entertainment and tourism. Hike of school tuition for 2020-2021 academic year also pushed up education prices index by 0.18 percent from the previous month. Bac Lieu LNG power plant to sign PPA this month Bac Lieu People’s Committee and Delta Offshore Energy Pte., Ltd. will negotiate the power purchase agreement for Bac Lieu LNG-to-power project this month in order to hold the signing ceremony later this year. The prime minister asked Bac Lieu People’s Committee to co-operate with ministries and relevant authorities to support investors to complete investment procedures to ensure that the project is implemented on schedule. If difficulties arise during implementation, the province will be in charge of presenting solutions to the prime minister for approval, even proposals exceeding the province's authority to ensure the project’s construction process. Previously, the National Steering Committee for Power Development proposed the investor of the Bac Lieu LNG-to-power project to keep the selling price of power at 7 US cent per kWh to make negotiations quicker. According to a source of Baodautu, the investor had at least one online and one offline working session with EVN relating to the power purchasing agreement (PPA). Notably, in May, the two parties discussed the project’s timeline with a focus on completing the PPA, including the grid interconnection agreement, by the end of this year. Delta Offshoe Energy (DOE) presented updates on the progress of the project, as well as stressed the urgency of organising the PPA discussions to facilitate its signing by October 2020. DOE contracted the Institute of Energy, Vietnam’s leading energy technical advisor under the Ministry of Industry and Trade, to complete the grid interconnection report, feasibility study, and the environmental impact assessment as prerequisites for key approvals and agreements with the Vietnamese government. DOE also hired expert international consultants to help complete the feasibility study by September 2020, but the document has yet to be completed. A number of investors said that the lack of a government guarantee for this project forced them to expend much more effort to mobilise capital. As the project’s investment capital is $4 billion, with 80-85 per cent sourced from loans mainly from overseas, the investors have their work cut out for them. EU, US consumers keen on Vietnamese tuna, shrimp There remains a growing demand for canned and processed seafood products in both the United States and EU markets, despite the global COVID-19 pandemic, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Following a long period of enduring a downward trajectory, Vietnamese tuna exports to the EU enjoyed a rise of nearly 65% in July. This growth has served to boost the proportion of total local tuna exports to the EU market throughout the seven-month period to more than 20%. Most notably, the nation’s tuna exports to three major EU markets, including Germany, Italy, and the Netherlands, in July witnessed impressive growth of 119%, 200%, and 210%, respectively. According to a number of local businesses, the COVID-19 pandemic has reduced the supply sources of tuna from countries such as Ecuador, the US, and Italy, thereby creating greater opportunities for Vietnamese tuna exports to these markets. The VASEP therefore forecasts that the export of canned tuna will continue to increase considerably, despite the negative impact of the COVID-19 globally. Meanwhile, shrimp exports to the US increased sharply in July, reaching a figure of approximately US$389 million, representing an annual rise of 16%, increasing total shrimp exports throughout the seven-month period by 8% to US$1.9 billion. This increase in the export of Vietnamese shrimp to major markets can largely be attributed to the Vietnamese Government's COVID-19 containment efforts, especially in comparison to other nations which are still struggling to combat the epidemic. Moreover, shrimp exports to the Republic of Korea, the UK, Canada, and Australia have also enjoyed double digit-growth during the past month. EVN to auction shares in Dong Anh Electrical Equipment Corporation Vietnam Electricity (EVN) plans to auction more than 13 million shares in its affiliate Dong Anh Electrical Equipment Corporation JSC (TBD). Interested investors must register to buy the whole lot. The starting price will be VND153,100 per share, which means the whole lot is valued more than VND2 trillion. The offered shares account for 46.47 per cent of total outstanding voting shares of Dong Anh Electrical Equipment. EVN is now the largest shareholder of Dong Anh Electrical Equipment. The other major shareholder is Electrical Equipment Joint Stock Company, which holds more than 7 million shares of TBD, equivalent to 24.89 per cent. Dong Anh Electrical Equipment Corporation is specialised in the supplies of products for the electrical industry, including transformers, electrical wires, electrical materials, electrical engineering materials and electrical equipment products. It also provides services of installation, adjustment, maintenance, repair, overhaul and renovation of electrical equipment. On the stock market, TBD shares are currently traded at around VND88,100 per share, down by about 20 per cent compared to the beginning of this year. Experienced investors still interested in property market: experts Experienced investors continue to sink money into the real estate market despite the problems the COVID-19 pandemic has caused for the sector. Most property experts said the real estate market would be able to recover after the pandemic. According to them, investors do not want to invest in the real estate market amid difficulties but have faith it will rebound at a certain point. Experienced investors would see the business opportunity in the difficult period while small investors would wait for market recovery, they said. Ha Van Thien, deputy general director of real estate firm Tran Anh Group, said in the previous real estate market crisis, investors that researched carefully found opportunities with reputable property developers. Pham Thanh Hung, vice chairman of Cen Group, also said like many other economic sectors, the real estate sector was affected by the pandemic, so prices in this market have levelled off after a period of high prices but not reduced. Viet Nam looks set to have a golden period in the real estate market next 3-10 years. At that time, the property market will meet the basic demand for housing and people will have good financial conditions so they will invest in housing products to improve their quality of life, according to Hung. Therefore, the market is expected to have a new price level higher than that at present. Investors need to enhance investment in the property market. The real estate market is entering a new period only for medium and long term investors. Some projects in regions with infrastructure projects, in urban areas with full facilities and in industrial zones have growth potential, according to Hung. Also assessing real estate prices will increase sharply in the medium and long term, Duong Duc Hien, former Director of Sales Department of Savills Vietnam, said in the past 40 years, real estate prices on the domestic market had not once decreased. Although the market had fluctuated depending on each period, in the long term, real estate prices would always go up because the population would always be increasing while land would not expand. "People always need housing products and in addition, costs related to land are on the rise," he said. "We can see that in difficult economic times, many projects still have good liquidity. I still advise investors to only aim at medium or long term investment. Unfortunately, currently, Vietnamese investors still prefer short-term investments but forget that to gain high profits from real estate, they must invest long-term, "Hien told toquoc.vn. Nguyen Xuan Thanh, a lecturer at the Fulbright University Vietnam, said investors who have spare cash should invest in the real estate market and accept a lower profit ratio than expected. But in the medium-long term, investment in the real estate market is still profitable. Nguyen Thi Thanh Huong, CEO of Dai Phuc Land, said in the short term, prices on the real estate market might slow sometimes, but in the long term the property market would still be a channel that brings good profits. Investing depends on the needs and budget of each individual investor. Particularly for investment organisations, they will analyse and evaluate very carefully before entering the market, Huong said. According to the experts, the difficulties in the property market this year will contribute to market purification for sustainable development in the future. At present, the market opens up business opportunities for property investors and buyers that have real demand. The market's challenge is temporary in the short term, while opportunities on this market are in the long term. Ben Tre farmers struggle to replace damaged fruit orchards Farmers in the Cửu Long (Mekong) Delta province of Bến Tre are trying to recover fruit orchards damaged in the 2019-20 dry season, but they lack financial resources to buy seedlings to replace dead trees. The coastal province faced saltwater intrusion and drought from the end of last year to June, according to its People’s Committee. Saltwater with a salt content of up to 0.5 per cent in the province occurred in the last dry season, damaging 30-70 per cent of 6,600ha of fruit orchards, more than 70 per cent of 2,603ha of orchards, and 100 per cent of 274ha of orchards. Durian and rambutan were among the fruits most damaged since they are sensitive to saline water. Durian trees can only tolerate a salinity rate of 0.1 per cent. Nguyễn Văn Cư has a 9,000sq.m orchard of durian and rambutan trees in Châu Thành District’s Phú Túc Commune. His trees died because of saltwater intrusion and drought, but does not have enough money to buy seedlings and fertiliser to replace the dead trees, or to rebuild the orchard’s saltwater prevention sluices. “I will have to decide which saline-resistant fruit trees like coconut, grapefruit and orange I should plant later,” he said. In Châu Thành District, only about 50 per cent of damaged fruit orchards have been rehabilitated in Phú Đức, Phú Túc, Tân Phú and Tiên Long communes. Trần Hoàng Liêm, chairman of the Tân Phú Commune People’s Committee, said about half of affected fruit orchards in the commune have been renovated. Because of the damage, farmers do not have enough money to replace dead trees, he said. “We have worked with agencies to instruct farmers in ways to rehabilitate the affected trees,” he said. The measures include washing out salt in the soil and rehabilitating the root and leaf systems of the trees. Nguyễn Anh Quốc, deputy head of the Châu Thành District Bureau of Agriculture and Rural Development, said the district has more than 5,000ha of fruit damaged by saltwater intrusion and drought. The district has submitted a list of affected orchards to the province’s authorities in order to receive financial support, he said. In Chợ Lách District, saltwater intrusion and drought damaged more than 8,000ha of fruits, including 5,000ha of durian and rambutan, according to the district’s People’s Committee. More than 30 million seedlings were also damaged in the district, which is the country’s largest seedling producer. Besides reviving damaged orchards, many farmers in the province have taken measures to store fresh water in the ongoing rainy season to cope with saltwater intrusion and drought in the next dry season. In Chợ Lách District, farmers are building water containers and upgrading ditches in orchards to hold fresh water. Trần Văn Tâm, who has a 7,000sq.m durian orchard in Chợ Lách’s Sơn Định Commune, said besides rehabilitating his affected orchard, he is consolidating embankments and sluices to store fresh water for the next dry season. “In recent years, saltwater intrusion has occurred earlier than normal and lasted longer. Farmers have consolidated embankments and sluices in fruit orchards to prepare for the dry season,” he said. Besides encouraging farmers to store fresh water for the next dry season, district authorities are consolidating sluices and dykes to help store fresh water. The district has petitioned the province to build irrigation projects on branches of main rivers to hold fresh water for agricultural production. Cao Văn Trọng, chairman of the province’s People’s Committee, said at the beginning of the rainy season, the province urged households to store fresh water so they will not face shortages during drought and saline intrusion. The province is also speeding up construction projects to secure enough fresh water for household use and agricultural production in the coming time, he said. Businesses pitch in to ease financial pressure on consumers amid COVID-19 Many of its members have promised not to increase the prices of goods, especially essential goods, to share consumers’ difficulties amid the Covid-19 outbreak, according to the Food and Foodstuff Association of HCM City. Ly Kim Chi, its chairwoman, said since it broke out at the beginning of the year in many countries, the pandemic has disrupted global supply chains and also had an impact on domestic production. To sustain raw material supply, many businesses have turned to other markets such as South Korea, Japan and Europe. The supply of materials in these markets is plentiful and reliable, but prices are much higher. Yet, most members of the FFA are trying to keep prices at the same levels as before the epidemic, even co-ordinating with distribution and retail systems to reduce prices, especially of essential items, she added. Nguyen Thi Thanh Nhien of HCM City’s Phu Nhuan District said she recently bought some essential items like cooking oil, shower gel, shampoo, and pork at the Co.opmart supermarket on Nguyen Kiem Street, and their prices were VND10,000 - 50,000 (US$0.4-2.2) lower than at traditional markets. Nguyen Anh Duc, general director of Saigon Co.op, said its retail chains like Co.opmart, Co.opXtra, Co.op Food and Co.op Smiles are offering attractive promotions on essential goods for 21 days from August 20 under its “Proud of Vietnamese Goods 2020” programme to ease consumers’ financial burden amid the COVID-19 pandemic. Prices of many products like milk, meat, fish, fish sauce, fragrant rice, and more than 20 kinds of farm produce are discounted. From August 25 Co-opmart, Co.opXtra, Co.opmart SCA and Fine Life supermarkets nation-wide will gift customers who have Saigon Co membership cards anti-bacterial cloth masks. The most practical way for a retailer to contribute to the fight against the pandemic is to ensure sufficient stocks of essential goods for the next several months and have plans in place to ensure regular supply of these products at the lowest possible prices to prevent a scarcity of goods and keep prices steady, Duc said. A representative of Big C & GO! said the supermarket has been supplying sufficient goods at steady prices, and has worked with delivery service providers to serve customers who order via its hotline, 19001880. Retailers are transporting goods to various localities, especially Da Nang, Quang Nam and Hue, and adopting measures to ensure social distancing at its stores in Da Nang. Modern distribution channels are supplying large volumes of medical masks, anti-bacterial cloth masks and hand sanitisers. Retailers are also offering promotions on essential goods. The Vietnam Dairy Products JSC (Vinamilk) and its Stand Tall Vietnam Milk Fund have provided 1.7 million glasses of milk to nearly 19,000 disadvantaged children across the nation to help improve their resistance against Covid-19. Two Japanese shareholders to sell 25% stake in JVC Japanese DI Asia Industrial Fund (DIAIF) announced it would sell all shares in Viet Nhat Medical Equipment from August 27 to September 25. The 21.8 million shares, or 19.35 per cent, with the sticker JVC, were registered to the fund’s chairman Kyohei Hosono. At the same time, Dream Incubator Inc or DI Inc, that is also related to Hosono, registered to sell nearly 6.6 million JVC shares, or a 5.85 per cent stake in the firm. DIAIF is an investment fund established by two Japanese companies, Dream Incubator and Orix Corporation. The total volume of JVC shares to be sold was 28.35 million shares or 25.2 per cent of the stake in the medical firm. At the price of VND4,600 per share, the Japanese shareholders could earn more than VND113 billion (US$4.8 million) from the sale. JVC was listed on the HCM City Stock Exchange in 2011 and used to be one of the best selling stocks for many investment funds. In 2015, each share peaked at more than VND25,000. However, founder and CEO Le Van Huong was arrested on charges of fraud and lying to customers. The stock started to plunge. A series of major shareholders withdrew their capital from the company, including Dragon Capital, Vietnam Equity Holding, and Vietnam Medical Equipment Corporation. Vietnam’s shrimp export to RoK sees positive growth The Republic of Korea (RoK) is the fifth largest importer of Vietnamese shrimp products, accounting for 10.7 percent of the country’s total shrimp export value. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam is exempt from import tax on shrimp in the Republic of Korea up to 15,000 tonnes a year under the Vietnam-Korea Free Trade Agreement (VKFTA). Vietnam only ships around 2,500 tonnes. To utilise the opportunity, VASEP said shrimp exporters need to improve quality and remain abreast of the RoK’s procedures and requirements to overcome technical barriers. Vietnam’s shrimp export to the RoK recorded positive growth in the first two quarters of 2020. VASEP forecast the sector to reach a growth of 5 percent in 2020. In recent years, Vietnam has been the leading shrimp supplier to the RoK, accounting for 52 percent of that country’s total imports. Ba Ria-Vung Tau: 518.5 million USD for new-style rural building The southern province of Ba Ria-Vung Tau has mobilised 11.94 trillion VND (518.5 million USD) to implement the national target programme on building new-style rural areas in 2016-2020, said a local official. The province has so far had two districts, and 39 out of 45 communes recognised as new-style rural areas, seven communes higher than the set plan for the period said Director of the provincial Department of Agriculture and Rural Development Tran Van Cuong. Meanwhile, Ba Ria city has completed its task of new-style rural building. Per capita income of resident sin new-style rural communes reached 54 million VND, up 24 million compared to 2015. All the communes in the province have met the criteria for the poverty percentage of below 1 percent in line with the national standards, and over 90 percent of local labourers having regular jobs. According to the provincial People’s Committee, the movement of new-style rural building in the province has recorded positive achievements, especially in infrastructure development, with nearly 498km of rural roads were constructed over the last five years. The province is hoped to complete its goal of new-style rural building, with Long Dien and Dat Do districts and 35 communes will be recognised as advanced new-style rural areas, and 14 those recognised as model new-style rural areas. Vietnam, Russia discuss prioritised investment projects amid COVID-19 Vietnamese Deputy Minister of Industry and Trade Hoang Quoc Vuong and Russian Deputy Minister of Economic Development Vladimir Ilichev co-chaired a teleconference of the Vietnam-Russia Senior Working Group on prioritised investment projects on August 31. The two sides discussed the implementation of joint investment projects in the priority list, including the construction of a centre for nuclear science and technology in Vietnam, the establishment of auto manufacturing joint ventures and Russian firms’ participation in e-government development in the country. They also touched upon cooperation prospects in new fields and the possibility of carrying out approved projects. The Russian side put forward ideas related to projects in waste treatment, digital technology and pharmaceutical chemistry, public security, electrical energy and power lines. Ilichev also called for Vietnam’s support for the initiatives to arrange an online Mathematical Olympiad for students BRICS nations, which is set to be launched on Russia’s Uchi.ru education platform. Vietnamese students have taken part in the event since April, according to the Ministry of Economic Development of Russia. At the event, delegates also discussed cooperation in curbing the spread of SARS-CoV-2 that causes COVID-19, particularly the supply and production of Russia’s vaccine against COVID-19 in Vietnam. Data from Russian authorities showed that despite the pandemic, two-way trade rose 4.7 percent to 2.3 billion USD in the first half of 2020. Russia’s exports to Vietnam surged 43 percent to 682 million USD, primarily foodstuff, machinery and metal. The Vietnam-Russia Senior Working Group on prioritised investment projects was set up in accordance with a joint statement signed in 2012 during Russian Prime Minister Dmitry Medvedev’s official visit to Vietnam. Development directions for southeastern region, Mekong Delta outlined The Ministry of Planning and Investment (MPI) held a teleconference on August 31 to look into orientations for making plans on socio-economic development and public investment in the southeastern and Mekong Delta regions in the next few years. Addressing the conference, which was attended by officials from 19 provinces and cities in the two regions, Minister Nguyen Chi Dung said the plans for 2021 and the 2021-2025 period need to be consistent with and bring into play the achievements obtained during 2016-2020 while devising development strategies, plans and solutions that can tap into local potential and advantages, thereby making breakthroughs and stronger development in the new period. Development directions must centre on the people by paying attention to ensuring social security and sustainably reducing poverty, especially in ethnic minority communities and remote, border and insular areas, so as to narrow the development gap among regions, he noted. According to the minister, the southeastern region has to particularly prioritise mobilising resources for developing seaports, airports and roads linking local ports. Cargo transportation should also be coordinated rationally to optimise local seaports, including Cat Lai and Cai Mep-Thi Vai. Meanwhile, localities in the Mekong Delta should pay heed to solving problems related to transport, water storage reservoirs and riverbank and coastal erosion, Dung said, adding that transport corridors should be developed into economic ones so as to expand the space for development. The MPI expected that between 2021 and 2025, southeastern provinces and cities will garner the best possible conditions for developing the economy and making use of the switch of global investment flows, attract large-scale and hi-tech investment to form value chains, strongly develop services, and step up administrative reforms and investment business improvement. Global supply chains will soon be formed in this region, which will become a technological and manufacturing hub of Vietnam. Ho Chi Minh City’s role as an economic locomotive will also be upheld so that the region will remain a growth driving force of the country in the time ahead. For 2021-2025, Mekong Delta provinces and cities are set to strive to reach a higher development level, per capita income surpassing the national average, and eco-agriculture and hi-tech farming making up a bigger proportion in the local economy. Besides, diverse resources will be used efficiently to turn the Mekong Delta into a prosperous region adapted to climate change. Transport infrastructure will be expanded to connect localities in the region and link the Mekong Delta with HCM City and the southeastern region, the MPI added. Egyptian newspaper highlights Vietnam’s socio-economic achievements Egypt’s leading online newspaper Al-Ahram on August 31 ran a story by Kamal Gaballa highlighting socio-economic achievements that Vietnam has gained during the national development. Gaballa, a prestigious Egyptian journalist who is interested in Vietnam, said that despite negative impacts of COVID-19 pandemic, Vietnam’s GDP growth in the first half of this year reached 1.81 percent. Gaballa noted that in 2019, the Global Competitiveness Index of Vietnam jumped 10 places over the previous year to the 67th in a list of 141 economies, while the country’s business environment index also leaped eight places compared to 2015, ranking 70th out of 190 countries and territories. Besides, Vietnam is playing an increasing role on the global political and diplomatic map through its position as the ASEAN Chair and non-permanent member of the UN Security Council as well as the contributions of the country’s peacekeeping force. Vietnam and Egypt celebrate the 57th anniversary of diplomatic relations on September 1, 2020, he said, adding that this is a chance for the two sides to review their ties, which were laid a solid foundation by Egyptian President Gamal Abdel Nasser and President Ho Chi Minh. He said that in 2020, despite the adverse impacts of COVID-19, two-way trade between Egypt and Vietnam is expected to maintain good results. In the first seven months of this year, Vietnam exported 256 million USD worth of goods to Egypt. Last year, two-way trade fetched 500 million USD, making Egypt the second largest trading partner of Vietnam in Africa. Vietnam mostly exported to Egypt fisheries products, garment and textiles, footwear, spare parts and transportation vehicles, machineries, equipment and farm produce, while importing from Egypt materials for the garment and textile industry, plastic material, pharmaceuticals, fresh fruits, milk and dairy products, and fertilisers. Gaballa held that the two countries boast high potential to promote their cooperation in trade, investment, tourism and maritime economy. Vinh Long steps up socio-economic development The Mekong Delta province of Vinh Long is taking synchronous measures to fight COVID-19 pandemic and step up socio-economic development, said Chairman of the provincial People’s Committee Lu Quang Ngoi. Accordingly, the provincial authorities asked the Department of Industry and Trade to effectively launch programmes to stimulate domestic consumption, expand domestic markets and support businesses. The provincial Department of Agriculture and Rural Development was required to seek markets for farm produce to achieve growth and export targets this year. The department directed the provincial Department of Planning and Investment tackle to difficulties regarding investment procedures and step up disbursement of public investment capital, especially for projects using State budget and key construction works. The provincial branch of the State Bank of Vietnam was assigned to direct credit organisations to create favourable conditions for businesses and people to access loans at preferential rates, and offer suitable credit products to enterprises. The province is also hastening administrative reform, improving investment and business environment to save costs for residents and businesses, and creating favourable conditions for investors, experts, corporate executives and highly skilled workers to enter the locality. In eight months of this year, the total local State budget revenue surpassed 5.84 trillion VND (253 million USD), or 81.6 percent of the yearly estimate, up 22.2 percent year-on-year. The total retail of goods and services topped 36.1 trillion VND, up 1.98 percent annually, while the total infrastructure investment hit more than 1.28 trillion VND, or 35.3 percent of the plan, of which over 1 trillion VND was disbursed, equivalent to 30.2 percent. Due to the impacts of COVID-19, several economic targets dropped from 2019, including exports down 5.2 percent to 344.5 million USD, tourist arrivals down 42.3 percent with 407,000, and local industrial index falling 4.3 percent. Thai economy improves in July: central bank The economy of Thailand improved in July thanks to public spending and an easing of coronavirus containment measures, according to the Bank of Thailand (BoT). July’s private consumption rose 2.7 percent from June as activity resumed, while annual exports shrank at a smaller pace of 11.9 percent. Reuters quoted Don Nakornthab, a director at the central bank, as saying on August 31 that: “Looking forward, there are still high uncertainties.” Most uncertain are foreign tourist numbers, which could miss the central bank’s projection of 8 million, he said, noting Thailand could at best have 6.7 million foreign visitors this year, meaning 1.3 million fewer tourists than the BOT’s forecast, affecting GDP by 0.5 percent, he said. The tourism-reliant country received 6.69 million international tourists in January-March but the influx ended on April 4 when Thailand imposed a ban on foreign vacationers to keep the coronavirus out. That compares with last year’s record 39.8 million visitors whose spending made up about 11.4 percent of GDP. In July, Thailand had a current account surplus of 1.79 billion USD after a trade surplus hit a five-month high of 4.11 billion USD, driven by higher gold exports. Ba Ria - Vung Tau among top localities in FDI attraction during 2016-2020 The southern province of Ba Ria - Vung Tau was one of the leading localities in attracting investment during 2016-2020, Director of the provincial Department of Planning and Investment Nguyen Cong Vinh has said. The average registered capital of each State-owned enterprise in the province stood at 250 billion VND (10.8 million USD), while the figures for non-State and foreign-invested enterprises were nearly 9.5 billion VND (410,445 USD) and 103 million USD, respectively. Over the past five years, the province granted new licences to 163 foreign-invested and 216 domestic projects with registered capital of 3.2 billion USD and 80 trillion VND, respectively, ranking it fourth out of Vietnam’s 63 cities and provinces in terms of FDI attraction. Additional capital also went to 96 FDI and 51 domestic projects worth 2.57 billion USD and 14.7 trillion VND, respectively. The province is now home to 415 FDI projects from 30 countries and territories with registered capital of 29.5 billion USD, as well as 605 domestic projects worth more than 307 trillion VND. Some 7,800 new enterprises were established in the province over the last five years, with total registered capital of over 74 trillion VND, up more than 44 percent and nearly 86 percent, respectively, compared to 2011-2015. There were also 85 new cooperatives, or 27 percent higher than planned. Total social investment capital topped 233 trillion VND during the period, over 17.6 percent of which was from the State budget and the remainder from businesses. Thailand hopes RCEP help expedite regional economic recovery Thailand’s Deputy Minister for Commerce Sansern Samalapa has said signing the RCEP agreement would help boost confidence in the business sector and promote multilateral trade, while expressing his confidence the deal would help expedite the region's economic recovery after the COVID-19 pandemic. Ministers from participating countries to the Regional Comprehensive Economic Partnership (RCEP) on August 30 reaffirmed their commitment to signing the RCEP agreement in this November, and said they would invite India to return to the negotiating table. They agreed that the region's market needed to be more open to accommodate flows of essential goods and services. The RCEP is a free trade agreement among the 10 member states of ASEAN and its five partners, namely Australia, China, Japan, New Zealand, and the Republic of Korea. India withdrew from the talks in November 2019. The RCEP has a population of almost 3.6 billion people or 48.1 percent of the world population. In 2019, the combined GDP of the grouping was worth more than 28.5 trillion USD or around 32.7 percent of the world's GDP. Thailand's trade value with the RCEP member countries is currently worth 280 billion USD - 59.5 percent of the country's total trade value. Thailand exports over 140 billion USD worth of goods to the 15 member countries or 57 percent of its total exports. Finance ministry calls for drastic measures to boost public capital disbursement The Finance Ministry has asked for synchronous and drastic measures from the entire political system, ministries, agencies, and localities to step up the disbursement of public investment capital. At a conference with localities in Hanoi on August 31, Deputy Finance Minister Tran Xuan Ha said that although it has improved, the disbursement of public investment and foreign capital in localities have been low so far this year. As of August 27, disbursement was 21.86 percent of the target assigned to localities, or 9.14 percent higher than what was reported at a teleconference on June 25. Regarding State capital lent to localities, the figure hit just 29.3 percent of the estimate. Head of the Finance Ministry’s Department of Debt Management and External Finance Truong Hung Long attributed this to focused efforts on capital disbursement throughout 2019, late bidding, and uncompleted procedures for project adjustment or site clearance. Some projects, meanwhile, need verification from the State Audit Office and approval from the World Bank, resulting in a lack of information on the ministry’s system. He said that five out of 62 localities had sent documents to the Ministry of Planning and Investment seeking permission to repay capital worth over 1.61 trillion VND (700 million USD). Vice Chairman of the Hanoi city People’s Committee Nguyen Doan Toan said that despite the COVID-19 pandemic, disbursement of official development assistance (ODA) in the city reached approximately 20 percent in the first seven months of this year and is expected to hit 69 percent for the year as a whole. He also said Hanoi proposes increasing the capital set aside for the Nam Thang Long - Tran Hung Dao section of the urban railway line No 2. The Finance Ministry hopes localities will promptly help investors clear difficulties facing their projects, Toan said, and achieve disbursement targets this year. HCM City’s eight-month exports up slightly Ho Chi Minh City’s foreign trade totalled more than 60.48 billion USD in the first eight months of this year, down 0.03 percent against the same period of 2019. In the January-August period, the southern economic hub shipped 28.4 billion USD worth of goods abroad, up 4 percent year-on-year. Excluding crude oil, exports reached 27.8 billion USD, up 5.8 percent year-on-year. Shipments of industrial goods rose 5.6 percent year-on-year to 19.65 billion USD, contributing the largest share to the total, at 78.1 percent. Computers, electronics and components made up 45.2 percent of the total, growing 26.2 percent to over 11.2 billion USD. Meanwhile, textiles-garment and footwear posted sharp declines of 20.4 percent and 12 percent, respectively. Exports of agricultural products exceeded 2.34 billion USD, down 0.6 percent year-on-year, with rice shipments worth 705.8 million USD, up 14.2 percent. Conversely, exports of rubber nosedived 42.6 percent to 222.8 million USD. China remained HCM City’s largest customer during the reviewed period, importing more than 6.84 billion USD, up 35.5 percent from a year earlier and representing 26.2 percent of the total. It was followed by the US and Japan. The city’s imports were valued at over 32 billion USD in the period, down 2.8 percent. Main import items included machinery and components, and consumer goods. Source: VNA/VNN/VNS/VIR/VOV/SGT/NDO/Dtinews |
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VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 402:04 Number of newly-established enterprises tops 13,400 in August  There were some 13,400 new enterprises established during August with total registered capital of 288.8 trillion VND (12.45 billion USD) and 96,300 jobs, according to the General Statistics Office (GSO). The figures represent increases of 1.5 percent, 20.7 percent, and 5.4 percent, respectively, against July, the office said. The average registered capital of each enterprise was 21.6 billion VND, up 18.9 percent against July and 59.2 percent year-on-year. The office reported that 4,775 businesses resumed operations in the month, down 1.3 percent month-on-month but up 200 percent compared to the same period last year. The number of companies registering to temporarily cease operations was down 8 percent month-on-month but up a substantial 158.5 percent year-on-year, reaching 3,102. Some 3,424 enterprises were waiting for dissolution procedures, increases of 11.6 percent and 63.4 percent, respectively. As many as 1,416 firms completed such procedures, down 5.9 percent and up 9.3 percent. The number of new enterprises fell 2 percent in the first eight months of the year, to 88,700, while enterprises resuming their operations were up 27.9 percent. Additional capital of existing enterprises included, the total amount of capital injected into the national economy in the eight-month period reached 3.21 quadrillion VND, up 16.8 percent against the same period last year. Of the new enterprises, 1,697 are in agro-forestry-fishery, up 30 percent year on year, more than 26,300 are in industry and construction, up 7.7 percent, and 60,600 are in services, down 6.3 percent. Sectors such as electricity, water and gas production and distribution, science and technology, consultation services, designing, advertising, and mining saw increasing numbers of new enterprises. The numbers of businesses waiting to complete dissolution procedures or completing them in the period was down 5.9 percent and 1.9 percent, respectively. Some 30,600 businesses are not operating at registered addresses, up 39.3 percent year-on-year, the office reported. Vietnam Airlines to re-start six domestic routes Vietnam Airlines has prepared a plan to resume domestic flights to safe destinations and meet demand, a representative of the national flag carrier said on September 3. The carrier will resume flights on six routes from September 9: Hanoi - Chu Lai, Hanoi - Tuy Hoa, Hai Phong - Dien Bien, Vinh - Buon Ma Thuot, Vinh - Da Lat, and Hue - Da Lat. One daily round trip will link Hanoi and Chu Lai, three weekly round trips Hanoi and Tuy Hoa, every Wednesday, Friday and Sunday, and four weekly round trips Vinh and Buon Ma Thuot, every Monday, Wednesday, Friday, and Sunday, starting from September 9. Round trips on the Hai Phong - Dien Bien, Vinh - Da Lat, and Hue - Da Lat routes will be conducted every Tuesday, Thursday, and Saturday from September 10. Passengers can buy tickets starting from 546,000 VND, including taxes and fees, from September 4 to October 31, on Vietnam Airlines’ website and app and at official ticket agents. Int’l card organisations continually urged to cut fees The Vietnam Banks Association is urging international credit and debit card companies to reduce a number of fees, as the country continues to battle the COVID-19 pandemic. Earlier, in April this year, the association sent a written proposal to the organisations related to the issue who said it would consider the proposal but so far, no fees have been cut. The association said the pandemic has significantly affected operations and business of banks in Vietnam, including card businesses, in recent months. It cited statistics that the value of transactions by cards in the domestic market in the first three months of this year saw a drop of 21 percent while in foreign markets by 28 percent against the same period last year. Value of repayment to cards in April tumbled by 78 percent against the same period last year and 93 percent against March. Some companies and organisations which accepted card payments, including aviation, education, tourism sites and hotels, have seen the value of transactions fall by 80 percent in March against the previous month and further declines were predicted. The association urged international card organisations Visa and Mastercard to reduce the fees on Vietnamese banks for at least 12 months. Specifically, the association proposed the transaction fees to be cut by at least 50 percent for both banks which issue cards and receive payments. For the long-term, it was critical to have appropriate policies for fee collection to promote the development of Vietnam’s card market, the association said. It said that Visa and Mastercard were collecting three to four types of fees for each transaction, adding that the fees international card organisation were collecting were much higher than those of domestic card switching organisations./. Singapore, US discuss importance of free, open Indo-Pacific Singaporean Minister for Defence Ng Eng Hen and his US counterpart Mark Esper discussed various regional security issues, including the East Sea, counterterrorism, and the importance of ensuring a free and open Indo-Pacific, during their virtual meeting on August 31. A media release by The Pentagon revealed that the two sides reaffirmed their commitments to the “excellent and long-standing bilateral defense relationship and mutually-beneficial partnership.'' Meanwhile, the Singaporean Ministry of Defence said in a statement that the two defence chiefs also discussed a wide range of regional and geopolitical developments, including the need for regional defence establishments to work closely to address common threats such as COVID-19 and terrorism. It said both countries enjoy extensive defence interactions, including dialogues, military-to-military exchanges, training and cross-attendance of courses, and defence technology cooperation. Both sides also addressed the importance of maintaining the momentum of bilateral cooperation initiatives amid the pandemic. Esper expressed appreciation for the regional access that Singapore provides US forces which has been extended for another 15 years. Last September, Singaporean Prime Minister Lee Hsien Loong and US President Donald Trump renewed the 1990 Memorandum of Understanding (MOU) Regarding US Use of Facilities in Singapore through the Protocol of Amendment, extending the agreement for extra 15 years. Cambodia, RoK hold second round of FTA talks Cambodia and the Republic of Korea (RoK) launched the second round of negotiations for a bilateral free trade agreement (FTA) on August 31 as the RoK works to expand its export portfolio to cushion the economic fallout from the COVID-19 pandemic. According to the Ministry of Trade, Industry and Energy of the RoK, the four-day virtual meeting aims to set more details on the envisioned FTA. The two sides will also exchange opinions on setting the scope of products, as well as other measures to enhance their bilateral economic ties. The two countries held the first round of negotiations in late July. The session came more than a year after Cambodian Prime Minister Hun Sen proposed a bilateral free trade pact during his meeting with RoK President Moon Jae-in in Phnom Penh in March 2019. According to the Korean International Trade Association (KITA), the trade volume between the two countries reached an all-time high of 1 billion USD in 2019, up 6 percent against the previous year, of which 697 million USD was from the RoK’s shipments to the Southeast Asian nation. When the pact is signed, Cambodia will be added to the RoK's list of FTA partners in Southeast Asia, which currently covers Vietnam and Singapore. Two Japanese shareholders to sell 25% stake in JVC Japanese DI Asia Industrial Fund (DIAIF) announced it would sell all shares in Viet Nhat Medical Equipment from August 27 to September 25. The 21.8 million shares, or 19.35 percent, with the sticker JVC, were registered to the fund’s chairman Kyohei Hosono. At the same time, Dream Incubator Inc or DI Inc, that is also related to Hosono, registered to sell nearly 6.6 million JVC shares, or a 5.85 percent stake in the firm. DIAIF is an investment fund established by two Japanese companies, Dream Incubator and Orix Corporation. The total volume of JVC shares to be sold was 28.35 million shares or 25.2 percent of the stake in the medical firm. At the price of 4,600 VND per share, the Japanese shareholders could earn more than 113 billion VND (4.8 million USD) from the sale. JVC was listed on the Ho Chi Minh Stock Exchange in 2011 and used to be one of the best selling stocks for many investment funds. In 2015, each share peaked at more than 25,000 VND. However, founder and CEO Le Van Huong was arrested on charges of fraud and lying to customers. The stock started to plunge. A series of major shareholders withdrew their capital from the company, including Dragon Capital, Vietnam Equity Holding, and Vietnam Medical Equipment Corporation. Cambodia suggested spending more on poverty reduction The United Nations Development Programme (UNDP) has called on Cambodia to set aside a budget for its poverty reduction goal. In a report released on September 1, UNDP said if Cambodia spends 1.5 percent of its Gross Domestic Product (GDP) on social assistance, the number of poor people in the country could drop to 3 percent of the total population. It stressed that Cambodia's poverty reduction goal can be achieved through the development of social protection systems. A system of social protection floor will provide cash and in-kind assistance to poor families, especially children, the elderly, the sick and disabled people, it noted. Nick Beresford, UNDP Resident Representative in Cambodia, said UNDP supports Cambodia for its emergency cash transfer programme to assist families that are certified as the poor, which has been carried out since June 2020 as part of efforts in response to the COVID-19 pandemic. According to UNDP, Cambodia's committed public finance management reform has made remarkable progress in mobilising resources, managing budget, as well as restoring budget balance. The country’s public budget surplus in 2018 is equivalent to approximately 150 million USD, which can nearly close the poverty gap if it is used for social safety nets, it said. Philippines spends nearly 2 billion USD upgrading railway system The Philippines has allocated 96.2 billion pesos (roughly 1.98 billion USD) to advance the country's railway system, including the 36-km Metro Manila subway, a lawmaker of that country said on August 31. Representative Luis Campos, the House Appropriations Committee vice chairman, said the total capital outlay is included in the 4.5 trillion pesos national budget for 2021 submitted by the Philippine President Rodrigo Duterte to the congress last week. Campos said the subway project in the Southeast Asian country's capital is getting a 34.6 billion pesos in new funding in 2021. He said the 34.6 billion pesos is on top of the combined 11.3 billion pesos earmarked this year and in 2019 for Phase 1 of the country's first underground commuter train system. Besides the Metro Manila subway project, a main railway project in Luzon island is getting another 58.6 billion pesos fund, said Campos. The 147-km railway project will run from Calamba in Laguna province, south of Manila, to New Clark City in Capas, Tarlac province, north of Manila. The 639-km train will link up Metro Manila to the southern regions in Luzon island, and to cut travel time between Metro Manila and Legazpi City in Albay province from 13 hours to just six hours. In 2017, the Philippine government proposed to spend 8 to 9 trillion pesos in the next five years to improve the country's public transportation system, including roads, bridges, airports, seaports, and railways. Vietnamese firms leave good impression despite COVID-19: Sputnik Vietnamese businesses in Russia have still stood firm and left a good impression amid the COVID-19 crisis, affirmed an article recently posted on Russian news agency Sputnik. The article cited Novostil company as an example. The company, set up in 2009 in the garment field, produced 100,000-150,000 face masks a day when the COVID-19 was at its peak in Russia. The company’s founder and director Do Canh Hung reportedly said that overcoming difficulties caused by the disease, his company has paid attention to improving employees’ health, and signed contracts to produce face masks and protective gears to promptly meet Russians’ demands. Many Vietnamese firms have exerted efforts to stabilise their operation and ensure salaries for employees on schedule. In addition, Novostil and many other companies such as Amber Tour, Russia Impression, and Dong Xanh have actively participated in charity activities. They have contributed to fund-raising campaigns launched by the Vietnamese Embassy in Russia, and presented clothes and cash to orphanages in the country. Many businesses have become members of a community-based disease prevention committee which supports patients and advises others on self-protective behavior in each phase of the pandemic, the article wrote, adding that Russians highly evaluate the wholehearted support of Vietnamese enterprises. Over 990 million USD worth of G-bonds raised in August The State Treasury mobilised 22.850 trillion VND (992.1 million USD) worth of Government bonds via 16 auctions on the Hanoi Stock Exchange in August, down 61 percent from the previous month. Up to 76.1 percent of bidders won. Interest rates of bonds increased on 10-year and 15-year terms, with the increase rate ranging from 0.06-0.1 percent a year. On the secondary G-bond market, the average trading volume reached 8.38 trillion VND per auction, down 18.2 percent month-on-month. Transacted volumes through repurchasing agreements (repos) accounted for 37.38 percent of the total trading volume. The total outright purchases of G-bonds in the month hit over 1 billion valued at more than 110 trillion VND, down 30 percent in value month-on-month. The total volume via repos reached over 589 million bonds, or more than 65.8 trillion VND, down 14.2 percent from the previous month. Foreign investors made outright purchases of over 2.9 trillion VND, outright sales of more than 3.4 trillion VND, and repos sales of over 601 billion VND. As of August 31, Government bonds worth over 1.23 quadrillion VND were listed on the HNX. More export chances for winter crops The agricultural production area of the winter crop in northern provinces was expected to increase by 20 percent to meet the increasing demand from China, said Minister of Agriculture and Rural Development Nguyen Xuan Cuong. China has just experienced a severe flood, causing a shortage of vegetables, Cuong told a meeting on August 31 reviewing the winter crop in 2019 and implementation of this year's crop in the northern region. Since earlier this year, the agriculture sector had been exposed to double risks of the COVID-19 pandemic and epidemics in livestock and poultry, as well as natural disasters, said Cuong. In such circumstances, the sector set two goals to organise the production of food for 100 million people and meet export demand, the minister said. So far, total cultivated area of 6.7 million hectares had been planted, he said. The most important tasks for farmers in the northern provinces was to focus on producing the winter crop, because of favourable natural conditions in 31 provinces and cities who experience cold winters, which could be considered an advantage for agricultural production, Cuong said. “The winter crop has short production time but high economic value and is less affected by natural disasters and pests. If the production was well organised, reaping 200-300 million VND (8,600-13,000 USD) per hectare was possible," he said. "Moreover, China has been facing rain and flooding, so they are suffering a shortage of food, especially vegetables. We need to take advantage to enhance cultivation for export,” Cuong said. The minister suggested local administrations actively choose the plant variety structure, convert rice land and saline areas to promote the production of the crop. He also asked businesses to help farmers sell their agricultural products as well as recommended provincial People’s Committees to issue mechanisms and policies supporting farmers in trade promotion, market research, and encouraging enterprises to sign contracts to purchase products and support branding and traceability to ensure product quality. The ministry sets a target of increasing this year’s winter-spring crop area to 430,000-450,000ha, rising 20 percent compared to last year’s crop, while the yield was expected to reach 4.6-4.9 million tonnes, increasing 10-15 percent against previous years. The total production value was expected to reach about 34-36 billion VND (1.5-1.6 million USD) or 75 million VND (3,200 USD) per ha. Corn, sweet potatoes, soybeans, peanuts, and other vegetables will account for about 55 percent, while potatoes and legumes is about 45 percent. According to Nguyen Nhu Cuong, head of the ministry’s Plant Department, each province will consider the harvested area, water source, soil conditions and market to produce the crop to ensure the highest economic efficiency. The provinces should focus on plating corn for animal husbandry. The department’s figures showed that the corn demand for cattle breeding is 27.6 million tonnes per year. Vietnam’s shrimp export to RoK sees positive growth The Republic of Korea (RoK) is the fifth largest importer of Vietnamese shrimp products, accounting for 10.7 percent of the country’s total shrimp export value. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam is exempt from import tax on shrimp in the Republic of Korea up to 15,000 tonnes a year under the Vietnam-Korea Free Trade Agreement (VKFTA). Vietnam only ships around 2,500 tonnes. To utilise the opportunity, VASEP said shrimp exporters need to improve quality and remain abreast of the RoK’s procedures and requirements to overcome technical barriers. Vietnam’s shrimp export to the RoK recorded positive growth in the first two quarters of 2020. VASEP forecast the sector to reach a growth of 5 percent in 2020. In recent years, Vietnam has been the leading shrimp supplier to the RoK, accounting for 52 percent of that country’s total imports. Egyptian newspaper highlights Vietnam’s socio-economic achievements Egypt’s leading online newspaper Al-Ahram on August 31 ran a story by Kamal Gaballa highlighting socio-economic achievements that Vietnam has gained during the national development. Gaballa, a prestigious Egyptian journalist who is interested in Vietnam, said that despite negative impacts of COVID-19 pandemic, Vietnam’s GDP growth in the first half of this year reached 1.81 percent. Gaballa noted that in 2019, the Global Competitiveness Index of Vietnam jumped 10 places over the previous year to the 67th in a list of 141 economies, while the country’s business environment index also leaped eight places compared to 2015, ranking 70th out of 190 countries and territories. Besides, Vietnam is playing an increasing role on the global political and diplomatic map through its position as the ASEAN Chair and non-permanent member of the UN Security Council as well as the contributions of the country’s peacekeeping force. Vietnam and Egypt celebrate the 57th anniversary of diplomatic relations on September 1, 2020, he said, adding that this is a chance for the two sides to review their ties, which were laid a solid foundation by Egyptian President Gamal Abdel Nasser and President Ho Chi Minh. He said that in 2020, despite the adverse impacts of COVID-19, two-way trade between Egypt and Vietnam is expected to maintain good results. In the first seven months of this year, Vietnam exported 256 million USD worth of goods to Egypt. Last year, two-way trade fetched 500 million USD, making Egypt the second largest trading partner of Vietnam in Africa. Vietnam mostly exported to Egypt fisheries products, garment and textiles, footwear, spare parts and transportation vehicles, machineries, equipment and farm produce, while importing from Egypt materials for the garment and textile industry, plastic material, pharmaceuticals, fresh fruits, milk and dairy products, and fertilisers. Gaballa held that the two countries boast high potential to promote their cooperation in trade, investment, tourism and maritime economy. Dong Nai eyes more IPs Dong Nai Province wants the Government to approve three new industrial parks in this year’s national development plan to attract investments post-Covid-19. To be located in Long Duc, Cam My and Long Thanh districts, they will have a combined area of over 6,800ha. The Cam My zone will be the largest at nearly 3,600ha while the Long Thanh zone will be more than 2,600ha. Cao Tien Sy, head of the Dong Nai Industrial Zones Authority, said 40 new FDI projects with a total investment of US$168 million had been licensed in the first half while 53 existing ones would add $479 million. The $647 million attracted so far is 60 per cent of the full-year target, he said. More foreign and domestic businesses in the province's industrial parks have been increasing their investments and expanding, he said, adding that many of the former are focusing on Viet Nam because of its membership of many free trade agreements. The province has 32 industrial zones covering over 10,240ha, one of which has not begun operations yet. It also plans to expand three existing industrial parks because they are nearly full, Dau Giay by 75ha, Long Khanh by 500ha and Tan Phu by 170ha. Chaiman of Dong Nai People’s Committee, Cao Tien Dung, said rapid construction and expansion of industrial zones would help the province attract investment once the pandemic is controlled and allot lands to key sectors like supporting and processing industries to enable the country to get deeper into global supply chains. Numerous ongoing national infrastructure projects such as the Long Thanh International Airport and Vung Tau - Bien Hoa railway and expressway are enhancing Dong Nai's attractiveness as an investment destination. Ba Ria-Vung Tau among top localities in FDI attraction during 2016-20 The southern province of Ba Ria - Vung Tau was one of the leading localities in attracting investment during the past five years, director of the provincial Department of Planning and Investment Nguyen Cong Vinh has said. The average registered capital of each State-owned enterprise in the province stood at VND250 billion (US$10.8 million), while the figures for non-State and foreign-invested enterprises were nearly VND9.5 billion ($410,445) and $103 million, respectively. Over the past five years, the province granted new licences to 163 foreign-invested and 216 domestic projects with registered capital of $3.2 billion and over $3.43 billion, respectively, ranking it fourth out of Viet Nam’s 63 cities and provinces in terms of foreign direct investment. Additional capital also went to 96 foreign-invested projects and 51 domestic projects worth $2.57 billion and $631 million, respectively. The province is now home to 415 foreign-invested projects from 30 countries and territories with registered capital of $29.5 billion, as well as 605 domestic projects worth more than $13.17 billion. Some 7,800 new enterprises were established in the province since 2016, with total registered capital of more than VND74 trillion, up more than 44 per cent and nearly 86 per cent, respectively, compared to 2011-15. There were also 85 new cooperatives, or 27 per cent higher than planned. Total social investment capital topped VND233 trillion during the period, over 17.6 per cent of which was from the State budget and the remainder from businesses. PetroVietnam exploits 7.76 million tonnes of oil equivalent in eight months The Vietnam Oil and Gas Group (PetroVietnam) has reported an oil equivalent output of 7.76 million tonnes in the first eight months of this year, 8.2 per cent higher than the set target. The group generated more than 14 billion kWh of electricity, equivalent to 96.9 per cent of the target, and produced nearly 1.2 million tonnes of nitrogenous fertiliser, surpassing the target by 4.8 per cent. Its production of oil and petrol exceeded 8.2 million tonnes, only equivalent to 93.3 percent of the target, largely due to the Dung Quat Oil Refinery being under maintenance. In August, the group sold crude oil at US$47.5 per barrel, about $2.3 higher than the price in the previous month, but still much lower than the price of $60 set in the yearly plan. PetroVietnam reported that total revenue in the eight-month period was over VND372 trillion (US$16 billion). The group contributed nearly VND45 trillion to the State budget, while its after-tax profit stood at over VND11 trillion. The group said it will continue with comprehensive solutions to cope with potential risks to its operation in the remaining months of this year, with a focus on managing production costs and maintaining product quality. HCM City bank credit grows at3.68 per cent amid Covid woes Total outstanding loans of credit institutions in HCM City as of August 31 were worth VND2.38 quadrillion (US$102.5 billion), an estimated 3.68 per cent up for the year. It represented a 0.4 per cent increase from the preceding month, according to the State Bank of Vietnam’s HCM City branch. The 3.68 per cent growth represents the slowest rate in many years, but the SBV said cash flow is still being pumped into important areas of the economy. Thus, lending to businesses in export processing zones and industrial parts increased by 12.7 per cent this year to VND180.58 trillion ($4.67 billion) as of July 31. Banks also lent over VND2.014 trillion for 27 projects related to the city’s investment stimulation programme, and VND617 billion to firms participating in its price stabilisation programme. Outstanding short-term loans in Vietnamese dong provided to the city’s five priority sectors (agriculture and rural development, production of goods for exports, small- and medium-sized enterprises, supporting industries, and high-tech enterprises) were worth VND176.26 trillion. In response to the SBV’s Circular No. 01/2020/TT-NHNN that directed credit institutions to restructure loan repayments, waive and reduce the interest and fees and keep debt classification unchanged to support customers affected by COVID-19, credit institutions have supported 240,407 customers with total outstanding loans of VND583.15 trillion. The SBV organised measures to mitigate difficulties faced by businesses based on feedback from authorities and business groups. A representative of its city branch said the banking industry would continue to focus on solutions to overcome difficulties faced by businesses and help their revival based on guidelines issued by the Government, the central bank and the city People's Committee. Real estate booms in HCM City’s east as innovation city takes shape HCM City’s plan to establish Thu Duc City by merging districts 2, 9 and Thu Duc has caused property prices in the three eastern districts to increase sharply. The prices of some existing apartments on Dong Van Cong Street and Ha Noi Highway in District 2 have increased by nearly VND300-400 million (US$12,944-17,259) each since early 2020. Many projects in District 9 such as Him Lam Phu An and Jamila Khang Dien have seen prices increase to VND37-40 million ($1,596-1,725) per square metre from VND30-35 million ($1,294-1,510) last year. Others such as Safira Khang Dien, Saigon Gateway and Hausneo have gone up from VND27-30 million to VND35-37 million. Prices at Vinhomes Grand Park have increased from VND30-38 million late last year to VND35-45 million now. Metro Star in District 9 increased to VND45 million in the second phase of sale, up VND10 million from the first. According to a survey conducted by Cho Tot online real estate platform, apartment prices in the three eastern districts have increased by 18 per cent compared to April. Most of the city’s key transportation projects like the Ha Noi Highway, Saigon River Tunnel, HCM City-Long Thanh-Dau Giay expressway, and Metro Line No1 pass through the east. Besides, a series of further transportation projects are planned such as the Thu Duc bridge to the Thanh Da peninsula in Binh Thanh District, Ring Roads No. 2 and 3 that will link the entire eastern area and the Cat Lai Bridge connecting District 2 with Nhon Trach District in Dong Nai. According to industry experts, as the gateway connecting the ‘golden’ economic triangle of Binh Duong-Dong Nai-HCM City, the city’s eastern part has been the leading real estate location for years. The establishment of the new city would make the market there even more attractive, they said. Ngo Quang Phuc, general director of Phu Dong Group, said developing Thu Duc City into an innovation and hi-tech town associated with modernisation and digitalisation would make the east a “promising land” for young people and technocrats, and so developers would focus on smart housing there. Nguyen Thi Thanh Huong, general director of Dai Phuc Land, said the establishment of the innovation city would create more jobs, increase housing demand and attract domestic and foreign investment. “Domestic and foreign investors always look for investment opportunities in both the short and long terms. The establishment of the eastern city envisaged as an innovation town and a new economic development hub will attract investments and create a driving force for the development of this area. “Thus, real estate prices will also go up, with major projects that are well planned and offer the quality of life for residents having a great advantage in the market." New circular helps perfect financial products and stock market: expert The State Securities Commission’s draft circular to replace an older one on the guidelines for securities trading is in line with modern trends, perfecting financial products and their diversities, adjusting trading time to suit the needs of domestic and foreign investors, said an expert. “Both individual and institutional investors are looking forward to the approval and issuance of this circular,” according to Phan Dung Khanh, director of investment consultancy department at Maybank Kim Eng Securities Co Ltd. “This is definitely positive news for Viet Nam's stock market as the move is expected to propel the local stock market to emerging market (EM) status,” Khanh told Viet Nam News Agency. Under the draft circular, investors are allowed to perform short sale transactions, which, according to Khanh, is a good step helping investors diversify their short trading strategies. The draft said short sale transactions with collateral (secured short sales) were transactions for borrowed securities in the securities borrowing and lending (SBL) system of the Viet Nam Securities Depository. The seller is then obliged to buy back the securities to repay the loan. The short sale will be executed based on the securities loan transaction contract on the securities loan and lending system at the Vietnam Securities Depository. A secured short sale transaction must include collateral, borrowing/lending interest rate, loan term, extension, collateral disposal when the investor does not make payment of securities, settling method when a dispute arises, potential risks and losses, and the costs. Khanh said the State Securities Commission and securities companies should build a proper legal framework, a list of stocks eligible for short sale transactions and a standardised clearing system to avoid systemic risks. They should also effectively upgrade infrastructure systems, prepare private contracts with customers and improve the instruction of new product information, Khanh said. Under the draft, a person aged from 15 years old to under 18 years old, who has not lost or limited their civil act capacity, is entitled to open a securities account provided that the consent of the legal representative is obtained. Commenting on this regulation, Khanh said that the popularisation of securities and knowledge for investors, including those aged 15 and over, is necessary. “People from 15 years old are able to access securities investment channel and can have correct assessment on this attractive investment channel and capital mobilisation. We can apply the regulation to the underlying stock market or some kind of high quality bonds,” Khanh said. “However, some complex or advanced financial products such as futures contracts or option contracts may not be applicable to young investors,” he said. According to lawyer Nguyen Thanh Ha, Chairman of SBLAW Law Firm, the stock market is a potentially risky investment channel that requires knowledge and experience, thus its may be difficult for individuals aged 15 years to 18 to properly participate in transactions by themselves. “Besides, most securities companies currently stipulate the minimum age for opening a securities account is 18 years old,” Ha said. EVN to auction shares in Dong Anh Electrical Equipment Corporation Vietnam Electricity (EVN) plans to auction more than 13 million shares in its affiliate Dong Anh Electrical Equipment Corporation JSC (TBD). Interested investors must register to buy the whole lot. The starting price will be VND153,100 per share, which means the whole lot is valued more than VND2 trillion. The offered shares account for 46.47 per cent of total outstanding voting shares of Dong Anh Electrical Equipment. EVN is now the largest shareholder of Dong Anh Electrical Equipment. The other major shareholder is Electrical Equipment Joint Stock Company, which holds more than 7 million shares of TBD, equivalent to 24.89 per cent. Dong Anh Electrical Equipment Corporation is specialised in the supplies of products for the electrical industry, including transformers, electrical wires, electrical materials, electrical engineering materials and electrical equipment products. It also provides services of installation, adjustment, maintenance, repair, overhaul and renovation of electrical equipment. On the stock market, TBD shares are currently traded at around VND88,100 per share, down by about 20 per cent compared to the beginning of this year. Vietnam urged to join global value chain through EVFTA The Government should provide additional assistance in reducing costs and simplifying administrative procedures to help local firms get more involved in the global value chain and therefore make the most of the EU-Vietnam Free Trade Agreement (EVFTA), insiders believe. Experts point out that the substantial reduction in tariff lines due to the EVFTA has benefited enterprises from both sides and has contributed to attracting foreign direct investment (FDI) in the nation. Despite this advantage, local firms must strive to enhance their capacity in order to participate in global supply chains through the trade deal, according to Ambassador Giorgio Aliberti, head of the EU Delegation to Vietnam. Vu Tien Loc, president of the Vietnam Chamber of Commerce and Industry (VCCI), emphasizes that despite the novel coronavirus causing numerous difficulties for Vietnamese exporters, the EVFTA has helped several textile, footwear, and seafood companies sign major export contracts. This has therefore opened up an array of bright prospects to enjoy greater export opportunities amid the ongoing challenging period. Most notably, the EU market is a key part of global value chains, featuring a range of stages such as design, production, marketing, distribution, and re-production. The country can therefore enjoy numerous advantages in terms of data, information sources, skills, and networks by attracting greater FDI from the EU, a move which is expected to help upgrade the country’s infrastructure and human resources, notes Nguyen Thi Thu Trang, director of the WTO Integration Centre under the VCCI. Although the EVFTA presents a wealth of opportunities for domestic enterprises to participate in the value chain, it also poses numerous challenges ahead. According to a study conducted by JETRO, Japanese enterprises operating in Vietnam currently purchase approximately 32.4% of input goods and services from local suppliers, with the rate being 67.8% in China, 57.1% in Thailand, and 40.5% in Indonesia. The average revenue of Vietnamese manufacturing enterprises was only able to reach US$2.9 million per year, while businesses are still required to have an annual minimum turnover of US$5 million in order to join the EU market. Experts have therefore warned that a number of local firms remain satisfied with the participation in the lowest part of the value chain and are not willing to make greater investments when joining the global value chain, says Ngo Chung Khanh, deputy director of the Multilateral Trade Policy Department. To take full advantage of the EVFTA’s opportunities, Nguyen Dinh Cung, former director of the Central Institute for Economic Management, states that domestic enterprises are required to boast strong financial resources in order to attract reliable partners. He also believes that the State should remove inadequacies in relation to policies, institutions, the quality of human resources, and infrastructure, while also reducing different costs for businesses so that they can become more deeply involved in the global value chain. HCM City’s eight-month exports up slightly Ho Chi Minh City’s foreign trade totalled more than US$60.48 billion in the first eight months of this year, down 0.03% against the same period of 2019. In the January-August period, the southern economic hub shipped US$28.4 billion worth of goods abroad, up 4% year-on-year. Excluding crude oil, exports reached US$27.8 billion, up 5.8% year-on-year. Shipments of industrial goods rose 5.6% year-on-year to US$19.65 billion, contributing the largest share to the total, at 78.1%. Computers, electronics and components made up 45.2% of the total, growing 26.2% to over US$11.2 billion. Meanwhile, textiles-garment and footwear posted sharp declines of 20.4% and 12%, respectively. Exports of agricultural products exceeded US$2.34 billion, down 0.6% year-on-year, with rice shipments worth US$705.8 million, up 14.2%. Conversely, exports of rubber nosedived 42.6% to US$222.8 million. China remained HCM City’s largest customer during the reviewed period, importing more than US$6.84 billion, up 35.5% from a year earlier and representing 26.2% of the total. It was followed by the US and Japan. The city’s imports were valued at over US$32 billion in the period, down 2.8%. Main import items included machinery and components, and consumer goods. Vietnam, Russia discuss prioritised investment projects amid COVID-19 Vietnamese Deputy Minister of Industry and Trade Hoang Quoc Vuong and Russian Deputy Minister of Economic Development Vladimir Ilichev co-chaired a teleconference of the Vietnam-Russia Senior Working Group on prioritised investment projects on August 31. The two sides discussed the implementation of joint investment projects in the priority list, including the construction of a centre for nuclear science and technology in Vietnam, the establishment of auto manufacturing joint ventures and Russian firms’ participation in e-government development in the country. They also touched upon cooperation prospects in new fields and the possibility of carrying out approved projects. The Russian side put forward ideas related to projects in waste treatment, digital technology and pharmaceutical chemistry, public security, electrical energy and power lines. Ilichev also called for Vietnam’s support for the initiatives to arrange an online Mathematical Olympiad for students BRICS nations, which is set to be launched on Russia’s Uchi.ru education platform. Vietnamese students have taken part in the event since April, according to the Ministry of Economic Development of Russia. At the event, delegates also discussed cooperation in curbing the spread of SARS-CoV-2 that causes COVID-19, particularly the supply and production of Russia’s vaccine against COVID-19 in Vietnam. Data from Russian authorities showed that despite the pandemic, two-way trade rose 4.7% to US$2.3 billion in the first half of 2020. Russia’s exports to Vietnam surged 43% to US$682 million, primarily foodstuff, machinery and metal. The Vietnam-Russia Senior Working Group on prioritised investment projects was set up in accordance with a joint statement signed in 2012 during Russian Prime Minister Dmitry Medvedev’s official visit to Vietnam. Local coffee sector set to capitalise on opportunities from EVFTA Vietnam's coffee industry is expected to enjoy tax incentives brought about by the implementation of EU-Vietnam Free Trade Agreement (EVFTA), especially as the EU market accounts for approximately 30% of global coffee consumption. Most notably, several local businesses have been proactive in investing in growing coffee areas in line with the requirements set by importers.For example, Vinh Hiep Co., Ltd. based in the central highlands province of Gia Lai, has invested in high-quality growing areas according to the standards set by the US Department of Agriculture, while also installing coffee production lines from Germany in an effort to create a new coffee brand L'amant for the purpose of promoting the export of processed coffee. Thai Nhu Hiep, chairman of the Board of Directors of Vinh Hiep Co, Ltd., emphasised that investments during the processing stage will help ensure food hygiene, safety, and origin traceability, which are crucial conditions for Vietnamese coffee to win the trust of consumers in the world. The Vietnam Coffee - Cocoa Association (Vicofa) stated that the EU is currently the second largest export market for Vietnamese coffee, accounting for over 42% of local coffee exports. Following the EVFTA coming into force in August, Vietnamese coffee products will be able to increase their value in the EU market in the near future due to enjoying import duties of 0%. Furthermore, Buon Ma Thuot coffee is among the nation’s 39 geographical indications that have been recognised and protected by the EU market, therefore offering a competitive advantage for domestic coffee businesses compared to other competitors within the EU market. Nguyen Trung Kien, head of the Department of Market Research and Commodities, acknowledged that many local enterprises have moved to invest in expanding their production scale of processed coffee. Despite witnessing rapid growth, the export structure of this commodity to the EU still only makes up a small proportion, with major export products being unroasted and decaffeinated coffee. Despite the export volume of Vietnamese coffee to the EU being large, accounting for over 8.5% of the total imported volume to this market, the current rate of processed coffee remains low at between 5% and 7%, with the most significant items being raw products, according to Vicofa. Le Thanh Hoa, Deputy Director of the Agricultural Product Processing and Market Development Department, believes local businesses must strive to meet import requirements, ensure food safety standards, and abide by inspecting factories and supervising processing activities. Moreover, in order to seize upon the opportunities within the EU market, local firms must increase their financial capacity whilst also enhancing the development of brands for Vietnamese coffee globally, according to experts. Vietnam, Netherlands eye stronger trade ties Vietnamese Minister of Industry and Trade Tran Tuan Anh and the Netherlands’ Minister for Foreign Trade and Development Cooperation Sigrid Kaag engaged in a phone talk on September 1 to discuss ways to boost bilateral cooperation between the two sides. Kaag affirmed that Vietnam is an important partner of the Netherlands, and expressed her good impression of achievements Vietnam has gained in the fight against the COVID-19 pandemic over the recent past. She noted that the Netherlands is the second biggest market of Vietnam’s exports in the EU, and also the largest European investor in the Southeast Asian country. The minister urged that the two sides carry out more activities in the time ahead in order to enhance their trade ties and deal with economic consequences of the pandemic. Kaag informed that there will be an array of virtual trade missions hosted by the Dutch embassies in some ASEAN countries, including Vietnam, in October and November, and invited the Vietnamese Minister of Industry and Trade to attend the launching ceremony for these activities. Regarding the EU-Vietnam Investment Protection Agreement (EVIPA), the Dutch minister said due to COVID-19, the approval of the deal has yet to be included in the agenda of the Dutch Parliament. Therefore, the Ministry of Foreign Trade and Development will work for the agreement to be early included in the working agenda of the parliament, she pledged. The minister also lauded the Vietnamese government’s efforts in implementing the chapter on sustainable development progamme in the EU-Vietnam Free Trade Agreement (EVFTA), saying the Netherlands stands ready to provide technical assistance for Vietnam in this regard. The Netherland also wishes to step up cooperation with Vietnam in promoting a circular economy and low-carbon production, towards sustainable development, and clean and renewable energy, she stressed. For his part, Minister Anh spoke highly of the close collaboration between Vietnam and the Netherlands across spheres, including trade, renewable energy, low-carbon production, and trade promotion, and suggested the two sides take more concrete, efficient steps in the existing cooperation areas. He thanked the Dutch government for their support during the negotiation and ratification of the EVFTA and EVIPA, expressing his hope that the two countries will beef up their cooperation in the enforcement of the two deals. Both ministers backed the idea on holding a virtual seminar on the agreements, and investment and trade ties between Vietnam and the Netherlands, which is expected to gather about 12-13 CEOs from major Dutch industrial groups like Shell, Philips and Friesland Campia, and Vietnamese enterprises. This would be an opportunity for Dutch firms to learn more about the investment environment in Vietnam, while offering cooperation opportunities for businesses of the two countries, they said. As for the circular economy, Tuan Anh praised the joint efforts in establishing a close cooperation framework with documents signed at different levels, from businesses to state management agencies. The minister said he hopes for an action plan with specific activities in order to advance the partnership in this regard. Statistics of the Ministry of Industry and Trade show that trade between Vietnam and the Netherlands reached nearly US$7.6 billion last year, with Vietnam’s exports to the European country hitting US$6.9 billion and its imports, US$661 million. In the first seven months of this year, Vietnam exported more than US$3.83 billion worth of goods to the Netherlands, up 0.46% year-on-year, even when Vietnam’s total export revenue to the EU dropped 5.96% in the period. Source: VNA/VNN/VNS/VIR/VOV/SGT/NDO/Dtinews |
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hỗ trợ các GĐLS khó khăn phát triển kinh tế./. 465 chữ  Đoàn cán bộ Chương trình sâu nặng ân tình thăm và tặng quà cho Mẹ VNAH ở tỉnh Tây Ninh Để hỗ trợ và có những giải quyết tốt nhất đối với các liệt sĩ và gia đình liệt sĩ, ngày 24/10, “Hội hỗ trợ gia đình liệt sĩ Việt Nam” đã chính thức ra mắt tại Đại hội lần thứ nhất giai đoạn 2010 - 2015 tại Hà Nội. Trong 2 cuộc kháng chiến chống Pháp và chống Mỹ của dân tộc, hàng triệu người con ưu tú của tổ quốc đã anh dũng ngã xuống để giành độc lập. Cho đến tận hôm nay, hậu quả của chiến tranh đối với các liệt sĩ và gia đình liệt sĩ vẫn còn nhiều điều phải giải quyết. “Hội hỗ trợ gia đình liệt sĩ Việt Nam” ra đời trong tâm niệm đầy nhân văn ấy. hoạt động trên tinh thần tự nguyện và phi lợi nhuận để cùng nhau giúp đỡ các gia đình liệt sĩ và chung tay cùng các gia đình liệt sĩ tìm kiếm được hài cốt của các liệt sĩ”. Với sự hoan nghênh, cổ vũ của đồng chí Lê Khả Phiêu, nguyên Tổng Bí thư Ban Chấp hành Trung ương Đảng Cộng sản Việt Nam, sự quan tâm của các Bộ, ngành trung ương liên quan đến vấn đề liệt sĩ, Ban Vận động thành lập Hội Hỗ trợ gia đình liệt sĩ Việt Nam đã được công nhận theo Quyết định số 545 QĐ-BLĐTBXH ngày 28/4/2010 của Bộ trưởng Bộ Lao động - Thương binh và Xã hội. Ngày 17/9/2010, Bộ trưởng Bộ Nội Vụ đã có Quyết định số 1081/QĐ-BNV, cho phép thành lập Hội Hỗ trợ gia đình liệt sĩ Việt Nam. Hội Hỗ trợ gia đình liệt sĩ Việt Nam là một tổ chức xã hội hoạt động theo phương châm tự nguyện và ân tình, nhằm mục tiêu: Hỗ trợ các gia đình liệt sĩ tiếp cận và thực hiện các chế độ, chính sách của Đảng và Chính phủ; giúp các gia đình liệt sĩ thu thập thông tin tìm kiếm hài cốt liệt sĩ còn thất lạc hoặc chưa xác định được danh tính; tham gia khảo sát, nghiên cứu và đề xuất với các cơ quan quản lý nhà nước và Chính phủ về các giải pháp thực hiện chế độ, chính sách nhằm tôn vinh và tri ân các liệt sĩ và gia đình liệt sĩ . Ngày 24/10/2010, Đại hội thành lập Hội Hỗ trợ gia đình liệt sĩ Việt Nam đã được tổ chức tại Hội trường Bảo tàng Hồ Chí Minh, Thủ đô Hà Nội, có sự tham dự của đồng chí Phạm Gia Khiêm, Ủy viên Bộ Chính trị, Phó Thủ tướng Chính phủ, đồng chí Nguyễn Thiện Nhân, Ủy viên Trung ương Đảng, Phó Thủ tướng Chính phủ và đại diện lãnh đạo của nhiều Bộ, ngành trung ương và địa phương.
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Thông tin mô tả
Tôi có căn hộ cần bán tại chung cư CT36 Xuân La, ngõ 28 Xuân La.
- Diện tích: 74m2.
- Căn: 2PN, 2WC, 1PK.
- Căn hộ thoáng mát, ánh sáng tự nhiên chan hòa.
Giá: 30tr/m2 (Có thương lượng cho khách thiện chí).
Liên hệ: 0848437668- Diện tích: 74m2.
- Căn: 2PN, 2WC, 1PK.
- Căn hộ thoáng mát, ánh sáng tự nhiên chan hòa.
Giá: 30tr/m2 (Có thương lượng cho khách thiện chí).
Nhà Phố Văn Cao (đối diện sân Quần Ngựa)
Thông tin mô tả.
- Nhà nhỏ xinh phù hợp gia đình trẻ, tài chính ít, chán cảnh đi thuê mà được ngắm cảnh Tây Hồ thật vô cùng xứng đáng.
Chủ thành đạt, hàng xóm thân thiện, các con chăm ngoan học giỏi, nhà rất có lộc.
Tổng diện tích 22 m2, 4 tầng:
- Phòng khách + Phòng bếp + Phòng ăn.
- Tổng 2 PN + 2 WC.
- Giá: 2.15 tỷ.
- Pháp lý: Sổ đỏ chính chủ, pháp lý rõ ràng.
- Vị trí 10m ra đường ô tô, gần trường cấp 1, 2, 3, Chung cư trước nhà, vô vàn tiện ích.
- Khu vực thoáng mát tuyệt vời, dân trí cao, an ninh tốt.
Liên hệ Hoa Vinh: 0396940608để được đi xem nhà (Miễn trung gian).
Thông tin mô tả
Chính chủ cần tiền chuyển vào Nam, bán gấp nhà tại phố Thụy Khuê, Tây Hồ. - DT 26m2 x 3 tầng (2PN). Nhà mới xây, chắc chắn. - Hướng: Bắc hơi ghé Đông - Ngõ thông tứ tung, thông ra Lạc Long Quân, Võng Thị, Thụy Khuê,... giao thông thuận tiện - Ngõ rộng rãi, thoáng sáng, cách phố chỉ 1'đi bộ - Gần các trục đường lớn Lạc Long Quân, Võng Thị, Trích Sài,.... - Sổ đỏ chính chủ, thửa đất vuông vắn * Liên hệ tôi để được xem nhà
Địa chỉ tài sản:Đường Thụy Khuê, Phường Bưởi, Quận Tây Hồ, Hà Nội
Thông tin liên hệ
Trần Minh Hiển
Nhà ngõ, hẻm | phố Thụy Khuê /Pháp lý | Sổ hồng/ Sổ đỏ | |||
Chiều ngang | 4,2m | Số lầu | 5 | ||
Chiều dài | 6,8m | ||||
Diện tích | 29m2 | Giá | 2,4 tỷ | ||
Thông tin mô tả
Trung tâm quận Tây Hồ, nhà phố Thụy Khuê thoáng đẹp, giá quá rẻ. - Nhà thiết kế đẹp hiện đại phong cách Châu Âu, nội thất gỗ lim nhập ngoại từ Nam Phi, đèn tifanni hào nhoáng...
- Nhà thuộc khu dân trí cao, an ninh tốt, trung tâm quận Tây Hồ, gần trung tâm thương mại Lotte Center, 5 phút vào phố cổ...
- Quý khách hàng thiện chí mua liên hệ em Mr William Quang Thưởng sđt: 0382593529, miễn trung gian môi giới làm phiền, xin cám ơn.
Địa chỉ tài sản:Đường Thụy Khuê, Phường Thụy Khuê, Quận Tây Hồ, Hà Nội
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*Nhà ngõ Thụy Khuê, mặt tiền 4.2m, diện tích 20.5 m2, xây 3.5 tầng, ngõ rộng 2m, hướng Bắc, sổ đỏ chính chủ. Giá bán: 2 tỷ có thỏa thuận./ Liên hệ Thúy Hồng: 0988 793 498*Chị Bảo, nhà c4 Thụy Khuê, 2,1 tỉ: 091611 6626
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* Nhà ngõ phố Lạc Long Quân 26m2, mặt tiền 3m5, giá nhỉnh 2.4 tỷ./ Liên hệ: Minh Ngọc (Zalo) – Tel: LH: 0968558468
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Article 1
Việt Nam’s exports to EU surge amid COVID-1915:23 HÀ NỘI — Trade in goods between Việt Nam and the European Union (EU) has seen positive growth since the beginning of 2021, despite the impact of the COVID-19 pandemic.  Vietnamese lychees put on sale in France. — VNA/VNS Photo According to statistics of the General Department of Customs, Việt Nam exported US$16.1 billion worth of goods to the EU during January-May, while importing commodities worth $6.7 billion from the bloc, up 20.1 per cent and 16.8 per cent compared to the same period last year, respectively. The EU is currently Việt Nam’s fifth largest trade partner and second biggest importer of Vietnamese goods, following the US. Last year, two-way trade reached $49.8 billion, down 0.1 per cent year-on-year, and accounting for 9.13 per cent of Việt Nam's total foreign trade. With the EU-Việt Nam Free Trade Agreement, Việt Nam’s exports to the bloc bounced back since the end of 2020, said Trần Thanh Hải, deputy head of the Ministry of Industry and Trade’s Import-Export Department. Thanks to the preferential tariffs under the deal, footwear exports to the bloc’s 27 member countries increased by 19.2 per cent year-on-year in the first quarter of 2021. Countries that saw surges included Spain (39.2 per cent), Belgium (37 per cent), Czech Republic (36.5 per cent) and Sweden (30.8 per cent). The agreement is also creating favourable conditions for the export of Vietnamese farm produce. In recent days, batches of fresh lychees have been shipped to the Czech Republic, Germany, France and Belgium. Trần Văn Công, Việt Nam's agricultural counsellor in Europe, said that the first batch of lychee to Belgium marked an important milestone as a special “passport” proving the production capacity of the Vietnamese agricultural sector. According to the Việt Nam Association of Seafood Exporters and Producers (VASEP), European importers have shown more interest in Vietnamese seafood suppliers given tariff advantages from the EVFTA and the stable source of raw materials. Việt Nam’s seafood exports to the EU reached over $380 million in the first 5 months of this year, up 15 per cent year-on-year, with half of which, nearly $199 million, coming from shrimp, up 22 per cent year-on-year. - VNS |
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VIETNAM BUSINESS NEWS JUNE 22
VIETNAM BUSINESS NEWS JUNE 2215:31 Not feasible for e-commerce floors to declare and pay taxes for sellers: Vecom
The association has just released a statement on new regulations related to e-commerce in Circular 40/2021/TT-BTC, which guides value added tax, personal income tax and tax administration for business households and individuals. The circular was issued on June 1 and will take effect from August 1 to replace Circular 92/2015/TT-BTC. The circular stipulated that commerce trading floors are responsible for declaring and paying tax on behalf of individuals doing business selling goods and services. The amount of tax declared or paid is based on the tax rate of each field of business. Circular 40 had many new contents compared to the draft first published March 12, but the drafting board had not yet collected comments from stakeholders and those directly impacted, Nguyen Ngoc Dung, Vecom vice chairman told a meeting last week. Representatives of some units said that the e-commerce trading floor was not an "income payer" unit. They only provide technology infrastructures to connect sellers and buyers and help them make transactions. Therefore, they are not subjects to declare and deduct income tax of sellers according to regulations. In addition, business individuals would have to declare and pay tax at the tax office where their business located, while e-commerce platforms might have their business locations in other provinces, said e-commerce representatives. Therefore, the declaration and submission on behalf of the company leads to conflicts with current regulations. Vecom also said the expected roadmap to apply the requirements to the e-commerce floors on August 1 was too short to be able to prepare the system for data collection and report to meet the requirements of the tax authority. Representatives of e-commerce floors expressed their hope that the tax authority would clarify specific requirements and application roadmap, and at the same time discuss with e-commerce floors to understand the difficulties encountered in reality. On June 7, Vecom sent a document to the General Department of Taxation expressing concern about the feasibility and potential impacts of the regulation. A Tiki representative told Viet Nam News they expected the tax authority to give detailed instructions to businesses on the plan to implement the circular, including steps to be taken, implementation time of each stage, and specific dispatches on calculation methods, tax and accounting declaration forms. Secondly, the e-commerce platform realised that it would take more time to work internally, prepare systems, infrastructures, and equipment for data collection and reports following the request of the tax authority, as well as ensuring the security of the system. In terms of operation, e-commerce floors also needed more time to work, guide and reach agreement with their brand partners and sellers to ensure close co-ordination, accurate implementation for circular issued by the Ministry of Finance. Shares edge down on selling pressure, foreign investors flee market Shares ended lower on Monday as profit-taking activities weighed on the stock market, while foreign investors net sold more than a trillion Vietnamese dong on two main exchanges. The market benchmark VN-Index fell 5.14 points, or 0.37 per cent, to 1,372.63 points. The index gained 1.93 per cent last week. The market's breadth was negative as 232 stocks declined and 173 stocks rose. The liquidity was still high with nearly 768.2 million shares traded on HoSE, worth VND22.66 trillion (US$982.7 million). The losses were driven by falls in pillar stocks. The VN30-index, which tracks the 30 biggest stocks in market capitalisation on the southern market, slid 0.2 per cent to 1,478.29 points. Seventeen of 30 stocks in the VN30 basket fell, while ten stocks climbed and three stocks ended flat. Stocks in attractive sectors including banking, material and real estate led the market's losses. JSC Bank for Investment and Development of Vietnam (BIDV, BID) lost the most, down 2.49 per cent. Other stocks posting big losses were Hoa Phat Group (HPG), Vietcombank (VCB), Techcombank (TCB), Vietinbank (CTG) and Vietnam Dairy Products JSC (Vinamilk, VNM). All these stocks plunged more than 1 per cent on Monday. The index pared some losses on gains in utilities, real estate, retail and infomation technology (IT) including the Viet Nam National Petroleum Group (Petrolimex, PLX), Mobile World Investment Corporation (MWG), No Va Land Investment Group Corporation (Novaland, NVL) and FPT Corporation (FPT). According to an analyst from Bao Viet Securities Company, the benchmark is expected to move sideways with some up and down sessions in ranges of 1,374 - 1,385 points in the upper bound and 1,300 - 1,330 points in the lower bound. "The market continues to witness strong division between stock lines at the moment. And cash flows will shift alternatively among small/medium-cap stocks or large-cap stocks that haven't gained much in previous rallies," the company added. On the Ha Noi Stock Exchange (HNX), the HNX-Index fell 0.78 per cent to 316.24 points, weighed by losses in large-cap stocks. The HNX30-Index decreased by 0.65 per cent to 502.24 points. During the session, over 144.1 million shares were traded on the northern bourse, worth more than VND3.2 trillion. Meanwhile, foreign investors were net sellers on both exchanges, with a total value of VND1.13 trillion. Of which, they net sold a value of nearly VND1.1 trillion on HoSE, and a value of VND33.72 billion on HNX. Shares to move up but investors should be cautious Securities companies have forecast that the stock market's uptrend may continue this week but investors should adopt risk management measures. On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index gained 1.31 per cent, to close Friday at 1,377.77 points, the highest milestone so far. It gained 1.93 per cent in total last week. An average of 770.9 million shares were traded on the southern exchange each session last week, worth VND23.9 trillion (US$1 billion). According to SSI Securities Incorporation (SSI), the VN-Index has the impetus to continue towards the target of 1,400 points in the coming sessions. “However, the buying force might increase when the index approaches the resistance zone of 1,400 points. Therefore, investors should focus on risk management during the index's uptrend,” it said. BOS Securities Joint Stock Company (BOS) said it was likely the VN-Index would maintain an increase and move towards a stronger resistance area at 1,380 - 1,400 points. However, according to the company, the index may retest the old peak of 1,370 - 1,375 points in the early sessions of this week before confirming the short-term uptrend. MB Securities Joint Stock Company (MBS) believes the market has recovered after the correction in the early sessions of June. The return of leading stocks like banks, securities and steel have helped VN-Index reach a new high. “Technically, the market may enter a new bullish wave after successfully surpassing the old peak to move towards the short-term target at 1,420 - 1,450 points,” it said. Viet Dragon Securities Joint Stock Company (VDSC) said at the end of last week, the VN-Index set a new peak with many stocks rising to new price ranges, boosting investors' sentiment. “The spread of smart money has not stopped,” VDSC said. Saigon-Hanoi Securities Joint Stock Company (SHS) said the market rallied last week with reduced liquidity compared to the previous week, but still higher than the average level of the last 20 trading weeks. “The buying demand is still relatively strong. However, there was more caution among investors than before,” it said. “From a technical point of view, the VN-Index ending last week above the threshold of 1,375 points opens an opportunity for an extension of the uptrend with the target around 1,400 points,” it said. “However, the index's gaining momentum over 1,375 points is not definitive and the liquidity dropped. Therefore, it is still necessary to observe more movements in the session on June 21 to assess the trend of the VN-Index,” it said. Energy stocks gained the most last week, mainly thanks to the increase of pillars such as PetroVietnam Gas JSC (GAS) up 6.6 per cent, PV Power (POW) rising 2.1 per cent, Binh Son Refinery (BSR) increasing 8.8 per cent, Vietnam National Petroleum Group (PLX) climbing 4.6 per cent and PV Oil (OIL) up 3.5 per cent. They were followed by materials stocks, including Phu My Fertilisers (DPM) up 7.5 per cent, Hoa Sen Group (HSG) up 7.3 per cent, Petro Viet Nam Ca Mau Fertilizer JSC (DCM) rising 6.6 per cent and Nam Kim Group (NKG) gaining 4.2 per cent. The financial group also performed well with gainers like Viet Capital Incorporation (VCI) up 14.4 per cent, Saigon-Hanoi Securities Co (SHS) up 10.2 per cent, VNDirect (VND) rising 9.8 per cent and SSI Securities Co (SSI) up 2.7 per cent. Credit expands quickly in H1, central bank might consider credit room extension With credit expanding quickly in the first half of this year, the State Bank of Viet Nam (SBV) said in its press conference on Monday that the credit growth target for the full year of 2021 at 12 per cent was within reach and it might consider extending credit room if necessary. SBV’s statistics showed that despite the pandemic, credit growth reached 5.1 per cent as of mid-June against the end of 2020, more than doubling the rate of 2.26 recorded in the same period last year. This meant that banks pumped a net value of VND468.8 trillion (US$20.2 billion) into the economy in the first six months of this year through lending. Deputy Governor Dao Minh Tu said that the central bank always asked credit institutions to focus on providing capital for production and prioritised sectors while tightly controlling credit flow into risky sectors. At the same time, banks were asked to remove difficulties in credit access and creating favourable conditions for enterprises and citizens to borrow money from banks. “With such strong credit growth in the first half of this year, the credit growth target for the full year which was set at 12 per cent was achievable,” Tu said. “If the pandemic is put under better control, the central bank might consider to extend credit room.” Tu stressed that the central bank maintained a flexible monetary policy and ensured the system liquidity to stabilise the market and promote economic recovery amid the pandemic. As of June 15, M2 money supply increased by 3.96 per cent against the end of 2020 and 14.27 per cent against the same period last year. The liquidity of the credit institutions system was abundant and stable, Tu said. Tu said the interest rates were generally kept at low levels in the first half of this year after three cuts in 2020. This aimed to reduce lending costs for citizens, enterprises and the economy. As of April, annual deposit and lending rates were around 0.3 percentage points lower than the end of 2020. The maximum short-term lending rates of loans in Vietnamese dong for prioritised sectors was around 4.5 per cent per year while lending rate for USD averaged 3-6 per cent per year. Regarding the support to enterprises and citizens who were affected by the COVID-19 pandemic, the central bank’s statistics showed that credit institutions have so far restructured debt payment deadlines for more than 257,600 customers with a total outstanding loan balance of more than VND336.66 trillion, reduced rates for more than 676,690 customers with a outstanding loan worth more than 1.2 quadrillion. New loans with low lending rates provided from January 23 to date were worth more than VND3.5 quadrillion. Cashless payment also saw good growth. Online transactions rose by 65.9 per cent in volume and 31.2 per cent in value in the first four months of this year compared to the same period last year, via mobile by 86.3 per cent and 123.1 per cent, via QR Code by 95.7 per cent and 181.5 per cent, respectively. Businesses team up with Bac Giang farmers in selling lychee Bac Giang’s Tan Yen district has signed cooperation contract with six businesses in selling lychee, a specialty fruit of the northern province. Of the businesses, Chanh Thu, Rong Do, Bamboo, Toan Cau and Ameii companies are exporting the fruit to Japan. The remaining firm sells lychee in domestic supermarkets. Meanwhile, Phuc Hoa lychee production and selling cooperative and 18 traders have also registered to sell the fruit to the Chinese market. Earlier, the People’s Committee of Tan Yen issued a plan on the sale of early-ripening lychees meeting export standards in 2021, and another plan on organising a send-off ceremony to begin the shipment of lychee to Japan, along with the formation of a working team directing the cultivation of lychees in accordance with export standards. The district has directed relevant agencies to coordinate with the People’s Committee of Phuc Hoa commune to conduct survey and choose suitable areas as well as farmer households having sufficient conditions to engage in for-export lychee production, and giving advice to the communal authorities in the issuance of documents directing the production and supervising the lychee cultivation process under GlobalGAP standards. Meanwhile, consultancy agencies will be selected to evaluate the local soil and water conditions, serving the assessment and certification of product quality. Tan Yen district also coordinated with the Bac Giang Department of Agriculture and Rural Development to invite five companies to visit the locality to get understanding on the district situation and its plan to sell lychee to Japan and the EU, paving the way for the district to sign selling contracts with those businesses. In 2021, Tan Yen has 1,329 hectares of “thieu” lychee with output of about 14,000 tonnes, including 1,200 hectares of early-ripening lychee with total yield of 13,200 tonnes, and 129 hectares of main crop with an estimated output of 800 tonnes. The area of lychee meeting VietGAP standards and high requirement in food safety has expanded to 880 hectares, including 350 hectares meeting VietGAP standard, up 50 hectares compared to that in 2020 with output of 4,300 tonnes, while the area of orchards meeting GlobalGAP standards is 5 hectares with production of 63 tonnes. For the Chinese market, Tan Yen has maintained the area already granted area code for export in Phuc Hoa commune with 600 hectares and output of 6,500 tonnes. For the Japanese market, the district has coordinated with the Plant Production Department under the provincial Department of Agriculture and Rural Development to designate farming areas and ask the Japanese side to grant cultivation area codes to five hectares of orchards of 11 local farmer households in Quat Du 2 village, and 10 hectares of 8 farming households in Phuc Le village. The total acreage of lychee production area for the Japanese market is 15 hectares with estimate output of 120 tonnes. Lychees from the remaining areas of Tan Trung, Hop Duc, Lien Son communes and Cao Huong township with output of about 6,700 tonnes will be sold in domestic markets through cooperatives and selling locations across the district. In order to ensure the quality of lychee, especially “thieu” lychee for export, Tan Yen has organised training courses to guide farmer in farming technique and writing farming diary. So far, 100 percent of local households have practiced the technique and written down the process. The district has chosen IQC company as the consultancy agency during the process of applying for certification of the product’s quality. The company has collaborated with professional agencies of Tan Yen, the People’s Committee of Phuc Hoa commune, and 11 households in Quat Du 2 village to apply new farming procedures and diary writing in line with regulations to lay the foundation for applying for GlobalGAP certification./. Vietnam imports 15,600 CBU cars during May Vietnam imported a total of 15,600 completely built unit (CBU) cars in May from three major regional markets of Thailand, Indonesia and China, making up 94% of the total number of vehicles imported into the country. Data from to the General Department of Vietnam Customs show it imported 7,407 cars from Thailand, 4,470 from Indonesia, and 2,790 from China. May saw the number of CBU cars of all types which had registered for import customs declarations increase by 4.8%, equivalent to a rise of 714 units compared to the imported volume from the previous month. According to the General Department of Vietnam Customs, the number of imported CBU cars of all kinds during the five-month period increased by 78% to 65,736 units. Of the figure, the number of nine-seater cars imported from the Thai market rose by 53.3% to 43,630, while the number of transport cars surged by 124% to 15,355. Meanwhile, May alone saw local firms spend approximately US$480 million on importing auto parts and accessories, a rise of 6.2% against April. The main suppliers were the Republic of Korea, with turnover reaching US$125 million, China with US$98 million, Thailand with US$94 million, Japan with US$70 million, Indonesia with US$18.4 million, and India with US$15.3 million. The import value of auto parts and accessories throughout the reviewed period also soared by 63.3% to US$2.16 billion, equivalent to a rise of US$835 million from the same period last year. Flexible monetary policy helps recover credit growth amid pandemic The State Bank of Vietnam (SBV) has flexibly operated monetary policy tools to maintain liquidity for the banking system, contributing to stabilising and recovering credit growth in the context of unpredictable impacts of the COVID-19 pandemic. The information was announced by the SBV at a press conference on June 21 to review the banking sector’s activities in the first half of 2021. According to SBV Deputy Governor Dao Minh Tu, thanks to synchronous management solutions, as of June 15, total credit in the economy expanded 5.1 percent from the end of 2020. The credit growth rate in the same period last year was only 2.26 percent Attention has been paid to strictly controlling credit for areas with potentially high risks, and taking measures to remove difficulties facing enterprises and people in accessing bank credit, he said. Total M2 payment vehicle - one of the tools to measure the level of "pumping money" into the economy from the banking system – in the period increased by 3.96 percent compared to the end of 2020 and surged 14.27 percent over the same period last year. The credit institution system maintains smooth liquidity. The sector has continued to manage interest rates in line with the macro-economic balance, inflation, market movements and the objectives of the monetary policy, contributing to cutting capital costs for people, businesses and the national economy. A series of measures have been implemented to support borrowers amidst the COVID-19 pandemic, helping them restructure cash flows, and revive production and business activities. As of May 31, credit institutions have rescheduled debt repayments for 257,602 borrowers with total outstanding loans of over 336.6 trillion VND (14.61 billion USD), exempted or reduced interests for 676,690 customers with total outstanding loans of over 1.2 quadrillion VND, provided new loans with low interest rates totaling over 3.5 quadrillion VND for nearly 481,000 borrowers. Regarding the form of payment and transaction, Director of the SBV’s Payment Department Pham Tien Dung said non-cash payment activities have been expanded in the last six months. Payment transactions via Internet channels surged by 65.9 percent in volume and 31.2 percent in value, while payment transactions via smart phone jumped by 86.3 percent in volume, and 123.1 percent in value. Payments via QR Code increased by 95.7 percent in volume, and 181.5 percent in value, Dung added. The SBV said it will continue to keep close watch on the macro-economic and monetary situation, as well as local and global developments of the pandemic, thus giving appropriate orientations in credit management and structure, towards promoting sustainable economic growth and development. Notably, the banking sector will tighten control of credit in potentially risky areas such as real estate, build-operation-transfer (BOT) and build- transfer (BT) projects, and securities, Tu said. He asked credit institutions to intensify management of credit quality, and implementing measures to curb bad debts./. HCM City requires over US$42 billion for transport infrastructure upgrades Under the plan, in the 2021-2030 period, the city will invest in over 650km of roads, 211km of railroads, 81 big bridges, 15 major intersections, and seven projects under the Smart Cities programme. It will also complete highways and national routes connecting the city with the Key Southern Economic Zone. During the 2021-2025 period, the city will prioritise key and urgent projects with total investment capital of over VND553 trillion, of which the State budget will provide VND181 trillion and other capital sources VND372 trillion. The key and urgent projects for the 2021-2025 period include the HCM City-Moc Bai Highway, Ring Roads No 2 and 3, National Highways No 1, No 22, No 50, and No 13, several elevated roads, main intersections and bridges in high-density urban areas. A number of key and urgent infrastructure works will be completed by the end of this year, mostly in Thu Duc city. The city has set a target of raising the ratio of traffic land to urban land to 12.76% in 2021, and the average density of roads out of the city’s land area reaching 2.26 km per sq km. The HCM City People’s Committee has requested that sectors and localities develop specific programmes, plans, and projects on infrastructure development as part of their annual and five-year socio-economic development plans in the periods from 2021-2025 and 2026-2030 to ensure the effective implementation of the transport infrastructure upgrade project. Employees adapt to more 'agile workplaces' amid pandemic Amid the COVID-19 crisis, employers want to keep their staff safe while coping with challenges to maintain normal and effective operations, said human resources experts and business leaders at a recent meeting. To meet both business and individual concerns, most businesses and organisations have gradually shifted towards agile working environments, experts said at a recent virtual event co-organised by the global workforce solutions company ManpowerGroup and the American Chamber of Commerce (AmCham). "Agile working refers to individual and organisational practices that leverage technology and flexibility to enable employees and their organisations to better collaborate across departments, locations and working environments," said Nguyễn Thanh Hương, country HR manager at ManpowerGroup Vietnam. "This model should become a part of our everyday work culture with the goal of achieving an optimal balance between agility, productivity, performance, information security, compliance, client satisfaction, well-being, and much more." According to the Skills Revolution Reboot survey of 26,130 employers in 43 countries by the ManpowerGroup, three out of four employers require at least 50 per cent of their staff to work in the workplace all or most of the time, based on their individual roles. Yet most are also working to build new kinds of flexibility into roles traditionally seen as inflexible. Trần Thị Thu Thắm, head of Human Resources at Bosch Vietnam, said: “Agile working requires managers and employees alike to develop an even stronger culture of mutual trust and responsibility.” To keep their jobs, local workers need to know how to adapt to their working model to remain an integral and valuable part of their organisation. Thái Vân Linh, CEO & Founder of TVL Group, cited her practical experience in applying this model. "Agile working means how to work efficiently, to balance tight deadlines, give attention to detail, achieve target results, and balance work and personal life." The "What Vietnamese Workers Want in the New Normal” survey conducted by ManpowerGroup Vietnam in November and December 2020 surveyed 463 participants who said that COVID-19 should be a catalyst for a new future of work, which is flexible, diverse and oriented toward wellbeing. Vietnamese workers are united in what they want to prioritise for the future, including staying healthy, learning and developing new skill sets, keeping their job, and bringing more balance between work and life. As for the benefits of being in the official workplace, the respondents said they highly valued opportunities for collaboration, productivity and efficiency improvement, and appreciated the office as a way of separating work from home. However, a proportion of respondents preferred flexibility in terms of location and schedule, or working remotely full-time. Nearly 78 per cent of respondents placed significance on learning and career coaching. Amid current uncertainties, employability matters to workers and 72 per cent said that simply keeping their job was the most important priority. Work security and well-being have been identified as the most crucial factors that both Vietnamese workers in general and working parents in particular would like to focus in the "new normal". Thừa Thiên-Huế Province aims to build a lotus brand The central province of Thừa Thiên-Huế has applied several measures to preserve and sustainably develop Huế’s traditional lotus farming. The People's Committee of Thừa Thiên-Huế Province has worked with the Việt Nam Academy of Agriculture, the University of Agriculture and Forestry under Huế University and research centres to research, conserve and develop Huế's lotus gene resources through tissue culture method. The efforts aim to sustainably develop lotus cultivation and increase economic efficiency and income for people growing lotus in the province. The province has focused on high-quality and productive lotus varieties and provided lotus farmers with training courses on seed care, land improvement and production in accordance with VietGAP standards. In addition, the province has helped connect lotus growers with traders to ensure their products are consumed by supermarkets, tourist attractions and more in a bid to build a 'Huế Lotus Seed' trademark. The provincial People's Committee is aiming that by 2025, the province will expand the new lotus planting area from 650ha to 745ha, with high-yield lotus for seed accounting for 85-90 per cent of the area and Huế purebred varieties 10-15 per cent of the area. The average yield is estimated to be from 1,800-2,000kg of seed per hectare equivalent to an output of 1,200-1,400 tonnes of seed every year by 2025. In recent years, provincial farmers have converted inefficient rice-growing land and abandoned lowland land to lotus cultivation, bringing high economic efficiency. In Phong Điền District, the lotus growing area has expanded to about 355ha, concentrated in the communes of Phong Hiền, Phong An, Phong Hoà and Phong Chương and Phong Điền Township. Trương Duy Hoà's family in Phong Điền Township is one example of successful lotus farming. Hoà’s family converted their 3ha of rice farming land to lotus farming more than 10 years ago and the new plant has brought his family a stable income. After grasping the needs of the market this year, his family sowed earlier than usual. So while many households were still planting, his family was harvesting and selling lotus seed for more than a month. On average, he sold more than 200kg of lotus seed daily. At the beginning of the season, lotus seed costed VNĐ80,000 (US$3.5) per kilo, double the normal price. After deducting investment costs, the average income from lotus seed was about VNĐ120 million (US$5,200) per hectare, 4-5 times higher than from growing rice. In Quảng An Commune, Trần Hũu Đạo's family made a success of converting to lotus cultivation in 2018, on an area of more than 1ha of low-lying land that was inefficient for rice cultivation. According to Đạo, they plant lotus from February and harvest from June to August. It was not yet time to harvest the main crop, but thanks to good weather conditions, this year’s yield was estimated at about 4 tonnes per hectare, said Đạo. “The advantages of lotus are it is easy to grow and adapts to low-lying and waterlogged areas, requiring little investment and care but stable yield and easy-to-sell products, so profits are high,” said Đạo. “With the current price of fresh lotus seed at VNĐ40,000 (US$1.8) per kilo, my family would profit more than VNĐ100 million (US$4,400) in this year's lotus crop,” he said. In Quảng Điền District, the area cultivating lotus is about 60ha with more than 200 farmer households participating, mainly in Sịa Town and the communes of Quảng Vinh, Quảng Lợi and Quảng An. This year, thanks to the amount of alluvium deposited after the floods, the lotus plants in this area grew evenly and had good quality seed. Lê Văn Thiên, vice president of Farmers' Association of Quảng Điền District, said this year's lotus crop was good and well priced. “It is estimated that fresh unpeeled lotus seed costs VNĐ40,000 per kilo and finished lotus products cost VNĐ75,000-80,000 per kilo,” said Thiên. “Lotus cultivation has not only improved the lives of households but also created jobs for many local workers,” Thiên said. The association plans to keep working with local authorities and other sectors to encourage people to take advantage of the abandoned water surface, low-lying areas and inefficient soil to grow lotus in combination with fish farming to increase income, according to the vice president. The association will also promote the establishment of co-operative groups and professional associations to stabilise the output for lotus products as well as mobilise people to develop Huế’s lotus varieties to build a brand. Vietnam’s exports to EU surge amidst COVID-19 Trade in goods between Vietnam and the European Union (EU) has seen positive growth since the beginning of 2021, despite the impact of the COVID-19 pandemic. According to statistics of the General Department of Customs, Vietnam exported 16.1 billion USD worth of goods to the EU during January-May, while importing commodities worth 6.7 billion USD from the bloc, up 20.1 percent and 16.8 percent compared to the same period last year, respectively. The EU is currently Vietnam’s fifth largest trade partner and second biggest importer of Vietnamese goods, following the US. Last year, two-way trade reached 49.8 billion USD, down 0.1 percent year-on-year, and accounting for 9.13 percent of Vietnam's total foreign trade. With the EU-Vietnam Free Trade Agreement, Vietnam’s export to the bloc has bounced back since the end of 2020, said Tran Thanh Hai, deputy head of the Ministry of Industry and Trade’s Import-Export Department. Thanks to the preferential tariffs under the deal, footwear exports to the bloc’s 27 member countries increased by 19.2 percent year-on-year in the first quarter of 2021. Countries that saw surges included Spain (39.2 percent), Belgium (37 percent), Czech Republic (36.5 percent) and Sweden (30.8 percent). The agreement is also creating favourable conditions for the export of Vietnamese farm produce. In recent days, batches of fresh lychees have been shipped to the Czech Republic, Germany, France and Belgium. Tran Van Cong, Vietnam's agricultural counsellor in Europe, said that the first batch of lychee to Belgium marked an important milestone as a special “passport” proving the production capacity of the Vietnamese agricultural sector. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), European importers have shown more interest in Vietnamese seafood suppliers given tariff advantages from the EVFTA and the stable source of raw materials. Vietnam’s seafood exports to the EU reached over 380 million USD in the first 5 months of this year, up 15 percent y-o-y, with half of which, nearly 199 million USD, coming from shrimp, up 22 percent y-o-y./. Long An: Four new industrial clusters to be put into operation this year The southern province of Long An is set to get four industrial clusters this year, Vinh Khang, Tan My, Tu Phuong and Hiep Hoa, according to the provincial Department of Industry and Trade. Their developers are expected to clear the lands by the end of this month and then begin construction of infrastructure for wastewater treatment, traffic, water, drainage, and electricity, which are expected to be completed by the end of this year. Once completed, they will add nearly 200 hectares to the province’s availability of industrial lands. The province has 16 industrial parks with a total area of over 2,282ha and average occupancy of 89.2 percent. They house 796 foreign projects worth a total of 7.857 billion USD and 831 local ones worth 92.32 trillion VND (4.02 billion USD). It is also home to 22 industrial clusters with an occupancy rate of 86.5 per cent. There are 647 projects with a total investment of 16.128 trillion VND (701.2 million USD), including 60 foreign ones worth 209.6 million USD. According to its Department of Industry and Trade, the province’s industrial cluster development plan for until 2020 envisaged having 62 industrial clusters with a total area of more than 3,100ha by then, but currently only 22 industrial clusters have been put into operation. The department said it would focus on completing the province’s industrial cluster development plan for 2021 – 30 to attract more investment. Besides, it would monitor and ensure developers of infrastructure in the clusters finish the work in time, it added./. High trade deficit recorded over five months nothing to worry about Vietnam’s export industries posting a trade deficit over the opening five months of the year is not a worrying sign as most imported items are raw materials necessary for production, especially for the group of export goods, according to industry insiders. Over the past five months local businesses have accelerated their import of electronic components, raw materials and accessories for leather and footwear, textiles, electronics, machinery, tools and spare parts, phones and accessories, plastics, and farm produce as a means of boosting production activities. May alone saw Vietnam record a trade deficit of more than US$2 billion, thereby making the trade balance during the reviewed period reverse after a long period of securing a trade surplus. Meanwhile, the import turnover of goods surged by 36.4% to US$131.31 billion compared to the same period from last year. Most notably, the sharp increase in imported goods mainly came from foreign-invested businesses, with turnover reaching US$85.5 billion, an increase of 39.9% compared to last year’s corresponding period. Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), attributed the recent rise in imported raw materials and accessories to the recovery of the garment and textile industry. Indeed, export turnover increased by up to 15% throughout the reviewed period. In addition, the increase in import of production materials, especially electronics, high-tech items, and machinery and equipment is anticipated to create greater opportunities for businesses to boost their exports in the near future. Dang Hoang Giang, general secretary of the Vietnam Cashew Association (VINACAS), said that the import of raw cashew nuts also skyrocketed during the five-month period. The total imported volume of raw cashew from Cambodia soared by more than 500% in value whilst also exceeding last year’s import volume. Vinh Long seeks investment in major projects across the board The Cuu Long (Mekong) Delta province of Vinh Long is soliciting investment in large projects that use modern and environment-friendly technologies and bring high added value. It is calling for investment of over VND24.37 trillion (US$1.06 billion) in 10 projects in all three main sectors of the economy. Le Minh Tan, director of its investment promotion and enterprise support centre, said the province is inviting investment in key projects, including the VND2.9 trillion ($126.1 million) Binh Tan Industrial Zone (IZ) in Tan Quoi Town with an area of 400ha. In the agricultural sector, it is soliciting investment of around VND250 billion ($10.87 million) in a 50-100ha high-tech agricultural project in Vinh Long City. It is also promoting an agricultural production and processing project in Binh Minh Town on an area of 10.6ha and costing VND400 billion ($17.4 million). In the housing sector, the province is looking for investment of VND8.05 trillion ($350 million) in the 500ha My Hoa new urban project in Binh Minh and My Hoa communes and Binh Minh Town. There is also an urban and administrative project worth VND7.5 trillion ($326.1 million). The province is mobilising resources to promote tourism with the aim of turning it into a key economic sector by 2030. Its tourist and tourism revenues are increasing by 11.6 per cent and 25.7 per cent a year on average. The province has also begun to attract investment in supporting industries such as the production of automobile parts. This conforms with its desire to foster industrial production. To improve the quality and effectiveness of foreign investment, it is working to attract strategic investors from markets such as Japan, South Korea, Taiwan, Singapore, and the EU, Tan said. South Korea now has 18 investment projects worth nearly $90 million in the province, while Japan and Taiwan have invested $102.5 million and $239.2 million respectively. The province also targets major projects and those with high-added value and using advanced and environment-friendly technologies, especially in agri-industry, human resources training and agricultural-based tourism, he said. Local authorities would create optimal conditions for investors to know about key projects and incentives, and help them resolve investment obstacles, he added. They have been announcing support and incentives to encourage investment in tourism, building infrastructure, tweaking planning for tourist areas to attract more investments, and developing unique tourism products. Vinh Long last year issued investment certificates for 26 projects with a total investment of VND4.35 trillion and over $104 million, including six foreign-invested ones. Fertiliser prices continue to increase: MoIT Fertiliser prices are forecast to continue to grow for the rest of the year, caused by a number of factors including higher shipping costs, a representative of the Chemical Department said. Speaking at the Ministry of Industry and Trade (MoIT)’s monthly press conference held on Thursday, Luu Hoang Ngoc, deputy director of the MoIT’s Chemical Department said: "The fertiliser price fluctuation in 2021 is similar to that in 2008, and the prices will continue to increase from now until the end of the year." The main factor pushing up prices is higher cost to hire shipping containers, while imported fertilisers, such as diammonium phosphate (DAP), mono-ammonium phosphate (MAP) and urea, are mainly transported on containers. Currently, the cost to hire shipping containers has increased five times compared to the previous year. In addition, fertiliser supply in Southeast Asia has declined as many factories have entered the period of maintenance. The price of raw materials has increased on the world market so the price of domestically-made fertiliser products has also soared, according to the Chemical Department. At present, the Ministry of Agriculture and Rural Development (MARD) manages production, trading, and import-export of none organic and organic fertilisers. However, "the MoIT manages import-export activities and the domestic market, working closely with MARD to ensure supply," Ngoc said. According to Le Trieu Dung, director of the MoIT’s Trade Remedies Department, the strong increase in prices started early 2021. The reason has been mainly due to the increase in cost of material for production of DAP and MAP fertilisers, of which the price surged by two times for sulfur and 30 per cent for ammonia. However, after assessing supply and demand, the MARD and MoIT have found that there is enough fertiliser supply for domestic use. “The supply of fertilisers, especially DAP fertilisers, is still enough for the domestic needs," Dung said. "Specifically, the import of DAP and MAP fertilisers from the beginning of the year to now increased by 50 per cent, while the domestic production also increased by about 30 per cent.” In addition, the prices of domestically-produced DAP and MAP fertilisers are between VND8-10 million per tonne, lower than the price of imported fertiliser at VND14-15 million per tonne. This is also a factor helping to stabilise the domestic market. Over the past month, the MoIT has taken safeguard measures for imported DAP and MAP fertilisers to protect domestic production. After an investigation on import fertiliser, the ministry has issued a decision to impose taxes on those products from 2017, according to Dung. In the future, the MoIT will continue to coordinate with the MARD to monitor the fertiliser market and have measures to stabilise the market. Hundreds of planes left idle at Noi Bai, Tan Son Nhat airports Hundreds of planes are now left unused at Vietnam’s two biggest airports of Noi Bai and Tan Son Nhat. At present, airlines in Vietnam own 230 planes, up 24 against 2019. Despite having more planes, the airlines have seen a sharp fall in flight number due to the Covid-19 pandemic. Since May 1 as the fourth Covid-19 wave hit Vietnam, flights to Noi Bai International Airport have considerably dropped from the peak time of up to 530 flights with a total of 78,000 passengers daily on the occasion of Reunification Day Holiday (April 30). Currently, the airport serves around 120 flights, including cargo flights, with around 5,000 passengers per day. The Hanoi-HCM City air route which was considered as the world’s second-busiest in November last year just behind South Korea’s Jeju-Seoul, now only has 18 daily flights compared to 130 previously. Overnight parking demand for planes at Noi Bai and Tan Son Nhat airports has drastically increased. So, the Civil Aviation Authority of Vietnam has asked to use closed runways for parking. According to the Vietnam Aviation Business Association, local airlines would witness a total loss of VND15 trillion. The Ministry of Planning and Investment recently announced Vietnam Airlines losses in the first half of this year of VND10 trillion. The carrier’s overdue debt is VND6.24 trillion. The Ministry of Planning and Investment forecasted that the aviation sector would continue facing difficulties this year due to Covid-19. If the pandemic is brought under control this year, the sector’s operations would stabilise by 2024. Policy support needed to boost business growth: insiders Without a more effective business support package, the country’s goal of 6.5 percent in gross domestic product (GDP) growth for this year will be hard to be achieved as the GDP growth in the first six months of 2021 is forecast to reach only 5.8 percent, according to experts. Nguyen Xuan Phu, Chairman of Sunhouse Group, said that like many other large-scale firms, Sunhouse hopes to receive support in policy rather than financial assistance. The country currently has about 500 large-scale enterprises that contribute 60-70 percent to the State budget, making it impossible to provide a common support package for all of them, noted Phu, stressing that support in policy will be much more effective. Businesses need a smoother mechanism and simplier administrative procedures so that they can focus on production, as COVID-19 has created development opportunities for many firms, said Phu. Meanwhile, Than Duc Viet, General Director of May 10, another big-sized enterprise, said that the current support package has yet to be able to help businesses overcome difficulties although many areas are eying opportunities to rise due to recovering demand in the world market. Viet said that in 2020, May 10 and other firms in the garment-textile sector faced difficulties in both input and sale, in 2021, the situation has changed completely with abundant orders. About 90 percent of the company’s products are exported to the US, the EU and Japan with orders enough for production until the end of this year, but without favourable mechanisms and policies to help businesses to attract labourers and protect them against COVID-19, the firms can hardly complete their orders. Although the number of COVID-19 cases has exceeded 12,500, Vietnam has still been considered one of the most successful countries in the world in pandemic control. Nguyen Duc Kien, head of the Prime Minister’s economic advisory team, said that Vietnamese firms are eying great opportunities to win the world market when other large suppliers such as India, Bangladesh and Myanmar are struggling with the pandemic. The current fiscal, monetary and social security support has been no longer suitable to large-scale firms, he held, adding that it is necessary to design another support package – support in policy. Kien added that the current time is also a great chance for Vietnam to increase foreign direct investment (FDI) attraction. Along with the effective control of the pandemic, it is crucial to design new and stronger support policies to promote economic growth and complete the target of at least 6.5 percent GDP growth this year and following years, stressed Kien. Deputy Minister of Planning and Investment Tran Quoc Phuong said that the pandemic has changed the mindset of many big and strategic investors on the formation of a production hub to diversify supply chains and distributing the supply chains in the globe, including in Vietnam. According to Phuong, the support package for FDI companies cannot be the same as those for small and medium-sized enterprises, but it is necessary to give breakthrough policies and mechanisms. “We should not organise traditional roadshows or trade promotion events in other countries. So how we can persuade investors to pour a large amount of capital into Vietnam without having to visit the country? To do so, we must give another support package with assistance in policy and mechanism,” stated Phuong./. Farmers utilise e-commerce to boost sale of agricultural products Agricultural specialties of some provinces are being sold on the e-commerce platform Sendo, marking the first time cooperatives and farmers have directly put their produce on sale in the digital environment. The programme, co-organised by Sendo and the Vietnam E-Commerce and Digital Economy Agency (IDEA) under the Ministry of Industry and Trade (MoIT), enables cooperatives and farmers in the provinces of Bac Giang, Hai Duong, Vinh Long, Dak Lak, and Son La to directly sell their products to consumers, without intermediaries, thus ensuring competitive prices and freshness. The produce on sale are all in season such as plums of Son La, avocadoes of Dak Lak, lychees of Bac Giang and Hai Duong, and purple sweet potatoes of Vinh Long. Joining in this programme from June 21 to 26, farmers will receive the Sendo staff’s guidance on how to package and introduce their products via livestreaming so that they can gradually use e-commerce as a long-term distribution channel. Bui Huy Hoang, an IDEA official, said the agency is working with e-commerce platforms, including Sendo, to help boost the sale of Vietnam’s agricultural products, and the efforts will benefit more produce from across the country in the time ahead. The MoIT will also keep coordinating with relevant ministries and sectors to organise other programmes supporting the sale and brand building for agricultural products, including those providing e-commerce training./. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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Offshore wind power still has great potential
Offshore wind power still has great potential16:36 Many large corporations want to develop offshore wind power projects in Vietnam, but existing bottlenecks have made them hesitant to proceed. Under the Prime Minister’s Decision No 39 fixing wind power prices, offshore wind power is sold to the Electricity of Vietnam (EVN) at VND2,223 per kwh, or 9.8 cent. However, the price will no longer be applied after October 31, 2021. The development of offshore wind power is still on paper. Liming Qiao from QWEC said at a recent online workshop that Vietnam is leading Southeast Asia in terms of offshore potential, with 160GW of usable technical potential in offshore wind power. However, in the draft of the eighth national electricity development plan, Vietnam set a very modest target for offshore wind power development, just 2,000-3,000 MW by 2030. According to an expert, Vietnam is capable of having 10 GW prior to 2030 and the figure should be set as the target. Commenting about wind power prices around the world, she said that current prices have become much lower than previously. The cost will decrease when the total installation capacity in the market reaches a certain threshold. However, it is not easy to develop offshore wind power. Investors may have to spend 5-6 years on the development process, two years on the installation. A project can operate for 25 years. Most offshore wind power farms are located 60 kilometers off the coast, with average wind speed of 9 meters per second and water depth of up to over 50 meters. Andrew Ho from Denmark’s Orsted said once international investors are interested in a market, they want to see stable policies to plan their long-term investments in that market. This can be attained through regular dialogue with the Government and local authorities. The Government needs to set up a transparent legal framework for offshore wind power, because it is very difficult to build offshore wind farms, and is also difficult to transmit power ashore. In order to do these things, investors need to discuss this with many parties, including the Government, electricity buyers and local agencies. In some countries, foreign investors only have to only contact one agency authorized by the State to deal with the issues related to offshore wind power development. This is great for investors, as the State shares risks with investors which helps cut the electricity production cost, thus benefiting both the parties, he said. Which price?
QWEC suggested the Government of Vietnam continue applying the current price of 9.8 cent per kwh for the first 4,000-5,000 MW. “The Feed in Tariff (FIT) price will expire this November and the time from now to that day is not enough to calculate how high the next FIT price should be. However, enterprises can continue making investments with the current FIT if it is extended,” said Liming Qiao. She believes that after obtaining 5,000 MW of offshore wind power, Vietnam can shift to applying the bidding mechanism. Bernard Casey from Mainstream Vietnam said Ministry of Industry and Trade last year proposed that Government extend the FIT for two more years. The proposal has also been applauded by investors. However, the Government has not given an exact answer about whether to extend the FIT. According to Sebastian Haid Buhl from Orsted, bidding does not always bring good prices, i.e. lower than FIT. If there is no transition period, bidding prices will be even higher than FIT. Maya Malik, CEO of La Gan Offshore Wind Power Project, said that Vietnam doesn’t have supply chains, and its policies are not clear enough and it is difficult to use PPA (power purchase agreement) to borrow capital. All of this makes it difficult to make financial calculations for the project. If the power price is not high, it will be difficult to implement the project. She stressed the need to have a transitional period before applying bidding. According to an expert, to make profit, an offshore wind power project needs to have a scale of 400-500 MW and investment capital of $800-1 million or higher. The time needed to implement such a project is 5-7 years, from the beginning of development to operation. Who will build seaports to serve offshore wind power projects and install transmission lines to transmit electricity ashore? Maya Malik affirmed that the investor is ready to build transmission lines and would like EVN to upgrade the onshore grid to be capable of loading the project’s capacity. Sebastian also said if waiting for state’s companies to build transmission lines linking the mainland and the sea, the project will be delayed, so the investor would rather build transmission lines itself. The 9.8 cent per kwh is high enough to allow investors to do this. However, the onshore national grid also needs to be upgraded. As such, many foreign investors have shown their interest in Vietnam’s offshore wind power. They will consult with the Ministry of National Defence before following the next procedures to register projects, and strictly observe all the requirements to be set up by the ministry, ‘if the issues are transparent’. Meanwhile, some experts still are cautious about offshore wind power projects, saying that a lot of questions remain unanswered. For example, it will be not easy for project developers and EVN to negotiate the conditions to reduce generation capacity if the national grid doesn’t use up all the wind power capacity. They also said that offshore wind power is not cheap. The currently applied FIT price of VND2,223 per kwh is much higher than the average retail price of VND1,864.44 per kwh. There are still many things to consider when developing offshore wind power, which is clean and stable. VNN/Luong Bang |
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Vietnam yet to license Nano Covax COVID-19 vaccine for domestic use 14:46 The Ministry of Health (MoH) will license Nano Covax, the locally-produced COVID-19 vaccine, for domestic use in the event that the vaccine gathers full scientific data, according to a MoH official. Nanogen, the developer of Nano Covax, has proposed the Ministry of Health approve its COVID-19 vaccine for emergency use in Vietnam,
 Nanogen, the developer of Nano Covax, has proposed the Ministry of Health approve its COVID-19 vaccine for emergency use in Vietnam Dr. Nguyen Ngo Quang, deputy director of the MoH’s Sci-tech and Training Department, made the statement following Nanogen Pharmaceutical Biotechnology JSC proposing that its COVID-19 vaccine Nano Covax receive approval for emergency use locally. “The licensing of a vaccine for emergency use depends on many factors, and the MoH needs scientific data before it makes a decision,” Dr. Quang said. He noted that Nanogen’s Nano Covax vaccine has yet to pass through all phases of tests in order to prove it has immunogenicity and provides effective protection and safety. At present, Nanogen is in the process of carrying out the third phase of human clinical trials, with approximately 1,000 out of 13,000 registered volunteers being given their first shot of the vaccine so far. According to details given by Dr. Quang, with 1,000 people inoculated, this represents only a small number compared to the millions of people who will go on to receive the vaccine in future. The health official therefore stressed that in case Vietnam is not able to access vaccine imports ahead in August and September, then the MoH’s scientists will move to evaluate the results of Nanogen’s third phase and grant approval for Nano Covax to be used domestically in the event of an emergency. “The Ministry of Health and I myself fully support the research and development of local vaccines to ensure supply sources for domestic use, and it is only approved in case of emergency,” said Dr. Quang, “But if we are able to access imported vaccines such as Pfizer, Moderna, Sputnik V and others approved by the World Health Organisation, priority will be given to import sources.” The initial two testing phases of Nano Covax show that all injected volunteers have generated antibodies, whilst the vaccine itself is also effective against lineage B.1.1.7, known as the Alpha variant, which was first identified in the UK. In the third phase, developers will examine if the vaccine is effective against the mutated strain B.1.617.2, also known as the Delta variant, which originated from India. Vietnam has reached numerous agreements with several global vaccine manufacturers, including AstraZeneca, Pfizer/BioNTech, and Sputnik V, to secure 120 million doses of COVID-19 vaccines for local use. However, manufacturers have yet to make any pledges or commitments regarding delivery time, thereby making it difficult for Vietnam to secure sufficient vaccines in a timely manner. So far this year over 2.5 million doses of the AstraZeneca vaccine have been delivered to the country. To date, Vietnam has confirmed nearly 14,000 COVID-19 cases, including nearly 10,500 cases recorded during the latest outbreak which initially started in late April. VOV |
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Retailers join hands for Govt’s dual goal of containing COVID, boosting economy14:58 HCM CITY — A message from a woman in Hà Nội, Phạm Hoa, saying “I have bought all foods and necessary stuff through zalo” has excited many of her friends in recent days, especially those in HCM City, where a semi-lockdown and social distancing continues for a fortnight.  Trucks transporting litchi from Bắc Giang. Retailer companies are making efforts to give consumers convenient shopping condition during COVID-19 pandemic. — VNS Photo In recent weeks, after a new wave of the COVID-19 pandemic began, buying food and other essential goods for the house while still complying with the Ministry of Heath’s 5K message (Khẩu trang [facemask]- Khử khuẩn [disinfection] – Khoảng cách [distance] – Không tụ tập [no gathering] – Khai báo y tế [health declaration]) to protect themselves and their families is a common concern for housewives. Buying goods through zalo, the free messaging app, is not totally new but it was used only by small companies and sellers. But during the social distancing now it has been adopted by large retailers too. In Hoa’s case, she bought goods from MM Mega Market, a giant wholesaler with a presence around the country. “As soon as I send a message asking for things I want to buy, they reply and then ship products to my door.” She said each MM Mega Market store has its own zalo number, and “You can easily buy food and other stuff.” MM Mega Market’s zalo order indicates clearly that retailers are making every effort to join hands with the Government to successfully achieve its dual goal of containing the outbreak and keeping the economy on track. Ensuring adequate supply of goods and diversifying the purchasing methods and shopping experiences are among a series of effective measures retailers have taken. Besides, thanks to all this, customers can buy stuff while maintaining the mandated social distance, and merchants are able to earn some income. Speaking to Việt Nam News, MM Mega Market said it was boosting multi-channel sales to offer its customers convenient and safe shopping amid the pandemic. “MM Mega Market is making every effort to join hands with the Vietnamese Government and businesses to achieve the dual goal of containing the outbreak and keeping the economy on track,” Trần Kim Nga, foreign relation director at MM Mega Market, said. Shopee, the country’s top e-commerce platform, announced to see an increasing number of consumers using e-commerce amid the pandemic. To help customers and merchants, it has launched a number of promotional programmes for essential items. A programme called ‘Ở nhà không khó, Ship Shopee lo’ offers many products with a 50 per cent discount and, more importantly, free delivery. It has been around for weeks and will continue. Through another programme, ‘Shopee Mart-Siêu Thị 0 đồng tại nhà’, the platform offers a number of promotional programmes on foods, products protecting health and essential goods with free shipping. “We have worked closely with brands and sellers during this period to ensure that we offer buyers a wide selection of genuine products ranging from everyday items to high-end items that satisfy their needs,” a representative of Shopee told Việt Nam News. “At the same time, to help brands, sellers and businesses overcome difficulties caused by the epidemic, we have also rolled out many benefit packages. There are many free benefits for the seller.” "Shopee is strengthening its logistics system," he said. “We are working closely with our transport partners and are optimising the operation of our warehouse system,” he explained. “These enable sellers and brands to be more efficient at fulfilling orders, allowing them to maximise sales and improve customer satisfaction even during peak shopping time.” To keep customers amused amid social distancing, many e-commerce platforms also combining shopping with entertainment programmes. Home entertainment has become a new form chosen by people across the country. E-commerce platforms have constantly updated many forms of online entertainment such as game stores and interactive live-stream to amuse users. For instance, the Lazada Supershow at the beginning of this month attracted 17 million views, two million views on the Lazada app, a record number in the region, underlining the fact that Vietnamese users are embracing online shopping platforms for home entertainment. Lazada said the number of customers following LazLive during its summer festival, a function of livestream sale, increased four times year-on-year. The total value of orders on this channel increased 19 times. In addition to helping customers, Lazada also supports SMEs with e-commerce to help them overcome the pandemic-related difficulties. It helps farmers sell their produce on its platform. Each sector and company is making an effort to join hands with the Government in the fight agaisnt COVID, all with different plans but the same goals. — VNS
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VIETNAM BUSINESS NEWS JUNE 2315:12 Vietnam records 1.35 billion USD trade deficit in first half of June
 Vietnam reported a trade deficit of 1.35 billion USD in the first half of June as exports reached only 12.3 billion USD – down nearly 2 billion USD compared to the latter half of May, the General Department of Customs has announced. Among items posting the strongest turnover decline included computers, electronics and parts with 1.06 billion USD, down 800 million USD; machinery and equipment with 1.1 billion USD, down 260 million USD; and telephones and components with 1.96 billion USD, down 50 million USD. Since the beginning of this year to mid-June, the nation’s trade value surpassed 288.6 billion USD. Of the sum, over 143.3 billion USD came from exports, up 30 percent year-on-year while the remainder of 145.3 billion USD was from imports, up 36 percent. That resulted in a trade deficit of 1.96 billion USD, the department said. According to trade experts, the above-mentioned trade deficit was not a worrisome figure as enterprises ramped up their imports of input materials to meet their production demands. Tran Thanh Hai, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade (MoIT), said at the MoIT’s regular press meeting for the second quarter last week that the import of production materials currently accounted for a high proportion, especially in garment and footwear sectors, thus pushing up the import value, affecting the trade balance. The COVID-19 resurgence in late April had certain impacts on many production industries which had started to recover such as electronics and mobile phones. However, exporting enterprises which already had orders still had to import raw materials and accessories for production. Thus, an import increase should be considered a good sign rather than a cause for concern, Hai said. According to the MoIT, exports are set to increase by about 21.7 percent by year-end compared to the year’s respective targets of 4-5 percent. To this end, the ministry would continue to give priority to promoting trade connections between Vietnamese enterprises and foreign partners, and the introduction of made-in-Vietnam goods to domestic and international consumers. Particularly, it would continue working to promote overseas shipments, diversify both export and import markets, optimise opportunities generated by free trade agreements, and remove barriers to enter new markets. Last year, the country’s trade surplus hit a record high of 9.9 billion USD, the highest level seen in the past four years./. MoIT asks for cooperation in anti-dumping investigation on imported steel products The Trade Remedies Authority under the Ministry of Industry and Trade (MoIT) said that it had sent questionnaires on end-of-term review of anti-dumping measures against imported galvanized steel products originated from China and the Republic of Korea (RoK) to all foreign steel producers and exporters. Earlier, on June 4, the MoIT decided to conduct the end-of-term review of anti-dumping measures against galvanized steel products imported from China and the RoK. On March 30, 2017, the ministry issued a decision on the application of official anti-dumping measures on imported galvanized steel products in five years from April 14, 2017 to April 13, 2022. According to the Law on Foreign Trade Management and Decree 10/2018/ND-CP, for the end-of-term review, the investigation authority will comprehensively assess the possibility of imported goods being dumped and the possibility that the domestic industry will suffer material injury or be threatened to material injury if anti-dumping measures are removed. It will also consider the causal relationship between the possibility of dumping and the possibility of damage suffered by the domestic industry, as well as the necessity, rationality and socio-economic impacts of the continued application of anti-dumping measures. The MoIT also stated that the review will serve as a basis for the investigation authority to collect information and evaluate domestic producers' production and business activities, balance supply and demand, and monitor price movements of galvanized steel products in Vietnam, especially in the context that the steel market is experiencing strong fluctuations. Therefore, it can make recommendations on whether to continue applying anti-dumping measures or adjust the level of application in accordance with the law and based on the information and practical data collected. The authority advised all foreign producers and exporters to show full cooperation throughout the investigation process. It added that all information and data submitted by them will be kept confidential in line with the law. The deadline for submitting the answers is 5pm on July 26, 2021 (Hanoi time)./. Nearly 36 percent of public investment for agriculture disbursed in six months The agricultural sector has disbursed about 3.52 trillion VND (152.98 million USD) of public investment in the first six months of 2021, completing 35.83 percent of its yearly target, according to the Ministry of Agriculture and Rural Development (MARD). The MARD has planned to roll out a number of measures to remove difficulties and speed up the disbursement of capital for programmes and projects, thus boosting production and preventing natural disasters. Along with convening online meetings to seek ways to deal with problems in each project, the ministry has reviewed the plans for the implementation of particular projects for timely adjustments. The ministry has made flexible capital amendments for projects to ensure their highest disbursement. In May alone, it issued two documents on the adjustment of capital worth 412 billion VND for projects using Government bonds and official direct assistance (ODA) loans. It is likely to disburse 100 percent of the domestic capital allocated for 2021. According to the MARD, this year, the sector is allocated over 9.8 trillion VND (425.91 million USD) of capital, including 2.84 trillion VND worth of ODA./. Support required to grasp customs boon A preferential customs treatment can help export processing enterprises make powerful savings each year, but only a few manufactures meet the criteria to enjoy these incentives. These are three of the slightly more than 70 businesses which have fully met the criteria for preferential customs treatment by Vietnamese authorities, according to the Post-Clearance Inspection Department of the GDVC, the unit implementing the Priority Enterprise Programme. Jack Nguyen, partner at audit, accounting and consulting firm Mazars, told VIR that 70 is a relatively low number, considering that about 80,000 export-oriented processing enterprises are operating in Vietnam. “Many of these enterprises want to be recognised as AEOs and the ideal number should be in the range of 10-15 per cent of all enterprises operating in Vietnam,” he said. The Ministry of Finance has set six groups of conditions that companies must satisfy to apply for AEO treatment, including substantial export-import volumes, legal compliance, and more. Nguyen believed that it is in everyone’s interests that more FIEs are able to qualify for preferential customs treatment. “Customs authorities could guide FIEs on the procedures to qualify. Any sanctions applied to non-compliant FIEs should be done with the intent to help them achieve compliance rather than be an exercise in penalising them,” Nguyen said. Of the roughly 70 businesses enjoying AEO status in Vietnam, there are 14 from Japan, including Panasonic, Canon, and Sumidenso. South Korea contributes 12 names, including Samsung, the country’s largest exporter. Others are FIEs from the United States, Taiwan, Italy, Denmark, and Russia with Vietsovpetro, a Vietnamese-Russian oil venture. While most recognised foreign AEOs operate in the high-tech sector, many domestic enterprises are in the agricultural sector, especially the seafood segment. As one of the first recognised AEOs in 2011, Samsung Electronics Vietnam Co., Ltd. (SEV) based at Yen Phong Industrial Park in the northern province of Bac Ninh reported substantial benefits from the programme. A representative of SEV told VIR said that previously, the company had to submit about 360-600 declarations each month, each taking an hour to prepare. Now, all export batches are exempt from physical inspection and goods are cleared immediately. Additionally, SEV does not have to pay tax before customs clearance. Instead, it is allowed to delay payments until the 10th day of the next month. With contributions from the Priority Enterprise Programme, SEV’s export-import turnover increased from $13 billion in 2012 to nearly $18.5 billion in 2019. Similarly, Datalogic Vietnam Co., Ltd., located in Saigon Hi-Tech Park in Ho Chi Minh City, has also shared great benefits since being accredited in 2014. “The incentives save Datalogic around $500,000 a year. It has also allowed the company an on-time delivery rate from 89 to 98 per cent,” the company reported. New tax burden under Circular 40 finds resistance from e-commerce platforms Various e-commerce platform operators are voicing concerns about the latest regulation putting the burden on reporting and paying tax for their individual vendors. As soon as it was officially released a few days ago, the Vietnam E-commerce Association, representing e-commerce platforms, advised against the circular, arguing that operators only provide a platform for vendors to conduct business, they do not pay vendors income directly. Therefore, requiring e-commerce companies to pay taxes on behalf of others would be inappropriate. Echoing this, representatives of various e-commerce sites like Chotot and real estate platform Batdongsan.com also said that their websites’ role is to provide information on products being put up for sale or lease and are not directly involved in the transactions between sellers and customers. Therefore, they cannot supervise the entire operations of sellers and do not have any information related to their actual revenue, bank account details, or tax numbers. “We propose the tax authorities to reconsider requiring platforms which function only as intermediaries between buyers and sellers,” said a representative of a platform that does not offer a payment function. The Big 4 e-commerce platforms including Tiki, Lazada, Sendo, and Shopee allow users to make payments through their platforms via diverse payment options including cash on delivery, credit card, or a partner e-wallet. So far, the four giants have not made public comments on the new tax rules. Ta Thi Phuong Lan, deputy director of the General Department of Taxation's Department on SMEs, Business Households, and Individuals, said that while they do not directly pay income to vendors, e-commerce platforms have direct visibility over their operations, putting them in position to pay tax on their behalf. Ho Chi Minh City proposes 3-month delay for seaport fees Ho Chi Minh City Department of Transport has proposed delaying the collection of seaport infrastructure fees for three months to help businesses weather the COVID-19 storm. The city will start a pilot programme to collect seaport infrastructure fees on June 25 before official implementation begins on July 1. Due to the resurgence of COVID-19 in the city, several enterprises and business associations have proposed to delay the collection to support them during the tough time. Ho Chi Minh City Department of Transport has drafted a dossier to amend and supplement Article 1.5 of Resolution No. 10/2020/NQ-HDND on the fee rates for the use of infrastructure works, service works, and public utilities in the port border area in Ho Chi Minh City. Accordingly, the department has proposed to delay the collection for three months until October 1 instead of July 1 as scheduled. According to the report submitted to Ho Chi Minh City People's Council, the 3-month timeline is based on the scenario that the COVID-19 pandemic can be basically controlled in July. Thus, there will be two months for businesses to recover from the pandemic. Thus, foregoing an estimated VND723 billion ($31.43 million) in these three months, the department said that this is a "support for production and business enterprises as well as export-import enterprises to ensure the realisation of the dual goals of both drastically preventing the COVID-19 pandemic and promoting socioeconomic development". Before that, many businesses and business associations have sent requests to Ho Chi Minh City to consider delaying the fee collection time. In particular, the associations suggested reviewing the regulations on fees. Currently, the tax rate is being regulated differently for businesses that open declarations in and outside Ho Chi Minh City. SJM Holdings wants to develop $6 billion casino complex in Quy Nhon Binh Dinh People’s Committee is proposing the prime minister to assign the relevant ministries and authorities to support SJM Holdings Ltd. to develop a $6 billion resort and casino complex project in Quy Nhon city. The provincial leaders and representatives of the investors discussed solutions to survey the land and implementation plans. However, due to the COVID-19 pandemic, the investors are not able to arrange trips to Vietnam to survey the investment location. SJM Holdings wants to co-operate with a domestic enterprise to develop the project. Accordingly, the domestic partner would be in charge of completing the legal procedures and preparing the land plot for project implementation. Binh Dinh People’s Committee introduced SJM Holdings to Hung Thinh Group, the investor of Hai Giang Merry Land Quy Nhon project for co-operation. Hai Giang Merry Land Quy Nhon covers an area of 656 hectares and has a total investment capital of VND3.42 trillion($148.7 million). It includes international-standard hotels, resorts, and a high-end amusement area. South Korean group intends to develop three projects in Thua Thien-Hue Korea Land & Housing Corporation (KLHC) has just released its final report on the projects in Chan May-Lang Co Economic Zone in the central province of Thua Thien-Hue. In the second phase, the group will develop a high-tech industrial park with an area of about 700ha. In the third phase, the group will build an urban area of about 1,000ha. The total area of the three projects is about 1,815ha. In November 2019, Thua Thien-Hue signed an MoU with KLHC to invest and develop Chan May-Lang Co Economic Zone. At virtual meetings, provincial leaders have urged businesses to accelerate research and survey plans. Businesses must regularly provide research and progress reports so the province can faciltate the implementation of the projects. Previously, AEON Mall Vietnam Co., Ltd. and Thua Thien-Hue People's Committee signed an MoU to outline the pathway for the opening of a shopping mall in the locality with the total investment capital reaching $160 million. Nguyen Dai Vui, director of Thua Thien-Hue Department of Planning and Investment, said that the province is building a portfolio projects calling for investment in the 2021-2022 period. The province has adopted a project management software connecting the local authorities and businesses and helping investors track progress. Vincom Retail to merge two real estate subsidiaries capitalised over $264 million Vincom Retail JSC (HSX: VRE) has announced the merger of two wholly-owned subsidiaries in order to restructure the internal ownership of subsidiaries. After the merger, the charter capital of VCRMB is expected to increase to VND6.16 trillion ($267.83 million). VCRMB will inherit all assets, legal rights, and interests, as well as unpaid debts and other obligations of Ha Thanh. On June 23, VRE will hold its 2021 annual shareholders' general meeting. According to the published documents, the company's Board of Directors will present to shareholders a plan for 2021 with net revenue of about VND9 trillion ($391.3 million), after-tax profit of about VND2.5 trillion ($108.7 million), increases of 8 and 5 per cent compared to 2020. If the plan is approved, VRE will have completed 24.7 per cent of its revenue target for the first quarter and 31.2 per cent of its net after-tax profit target for 2021. According to its latest financial statement, as of March 31, the company currently owns four subsidiaries. In addition to VCRMB and Ha Thanh, VRE also owns all shares in Vincom Retail Southern Co., Ltd., and holds 97 per cent of Suoi Hoa Urban Development and Investment JSC. Regarding its first-quarter business results, VRE recorded a consolidated revenue of VND2.2 trillion ($95.65 million), up 32 per cent over the same period in 2020. Income from leasing property contributed VND1.7 trillion ($73.9 million) of this, up 18.2 per cent. Revenue from real estate transfer reached VND452 billion ($19.65 million), up 124.9 per cent, mainly from the handover of three large commercial townhouse projects, namely My Tho, Bac Lieu, and Uong Bi. VRE stocks closed the June 18 session at VND32,500 ($1.41), down 1 per cent against the previous day. Aquatic product exports increase by 26% in May Aquatic product exports of Vietnam increased sharply over the same period last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Among seafood exports, molluscs increased the most. Specifically, the export value of squid and octopus products reached US$216 million, up 13%; while bivalve molluscs reached US$48 million, up 44%. Of the total seafood export value in the first five months of 2021, marine fish products account for 75%, tuna increased by 22%, and other fish increased 53%. In the CPTPP market, Japan is the largest import market and also the largest single seafood importer of Vietnam, accounting for 20% of the total value of other seafood exports of Vietnam, reaching US$298 million. During the period, the export value to this market increased slightly at 1%. According to VASEP, seafood exports from Vietnam to the US reached more than US$113 million. In the past three months, the expanded vaccination against COVID-19 and the economic stimulus package of the US Government have been the driving force for the recovery of seafood consumption demand, not only in the food service and restaurants and hotels, but also in the retail segment. These factors are considered favourable conditions for Vietnamese seafood businesses to boost exports to this market. Exports of squid and octopus to the US is growing at a high rate. In May specifically, Vietnam’s octopus exports to the US rose at a "galloping" rate of 538% over the same period last year. Vietnam to build mobile app to diagnose plant diseases The Ministry of Agriculture and Development (MARD) is looking to build a mobile app that can identify plant pests through pictures taken out in the field and recommend control measures for farmers. The MARD’s Department of Plant Protection and Viettel Solutions are working together so that the app can be released and piloted on rice paddies in some provinces in the next three months, firstly in An Giang in the Mekong Delta. With this app, farmers only need to capture symptoms of the disease on their rice plants, then artificial intelligence will analyse the photos, compare them with the database and provide information on the pests. This way, farmers can access scientific information instead of relying on their own experience or seeking advice from pesticide sellers. After the experimental period, the two sides will make adjustments to the app so that its recognition will become more accurate. The app will be further enhanced to include other plants in the future. The app among the digital transformation efforts in the area of plant protection, which will provide farmers with complete and accurate agricultural knowledge, thus helping them to quickly identify pests and apply the most effective solution for their fields. Developing a growth scenario suitable for the new situation The GDP growth target of 6.5% in 2021 is becoming more and more challenging as the fourth wave of COVID-19 has spread to many localities with complicated developments. The successful response, prevention and control of the Covid-19 epidemic is an important factor that will play a decisive role in macroeconomic stability and economic recovery in the last months of the year.Two waves of the COVID-19 epidemic have reduced the country’s GDP growth in the first six months of 2021 from 6.22% as planned for in the operating scenario to about 5.8%. According to the Ministry of Planning and (MPI), the target of 6.5% growth for the whole year has become extremely challenging as the prospect of economic growth in the last months of the year still facesmany risk factors. The remaining two quarters of the year must reach a growth rate of more than 7% in order to achieve the full-year growth target. Assessing the impact of the fourth wave of the COVID-19 epidemic on the socio-economic situation, Dr. Can Van Luc and a research team from the Bank for Investment and Development of Vietnam (BIDV) said that there will be a very strong impact on the economy in many aspects such as: supply chain, consumption, import and export, employment, bad debt, budget revenue. GDP growth will slow down, to about 5.5% - 5.8% in the second quarter and about 5% for the first six months. In the last months of the year, growth will recover again, whole year growth is expected to reach 6.1% - 6.3%. According to Dr. Can Van Luc, this is a lower growth rate than expected, because this outbreak has had a direct impact on production areas such as Bac Giang and Bac Ninh, these two localities accounting for about 10% of industrial production and 15% of the total export revenue of the whole country. Notably, the fourth outbreak of the epidemic is the most dangerous ever, requiring the Government's executive response to soon adapt as many previous anti-epidemic experiences are no longer relevant. The strategy of epidemic prevention and control has been switched from defence to active attack, to avoid disrupting production and minimise the impact of the epidemic on socio-economic life. According to Dr. Nguyen Duc Kien, Head of the Prime Minister’s Economic Advisory Group, the Government’s point of view is that each locality should base their approach on the actual situation to have solutions to successfully implement the “dual goals”, then study and assess all impacts to replicate this throughout the country. For example, in Bac Giang province, even in the peak days of the outbreak, it was not necessary to blockade the whole province. Bac Giang’s lychee harvest fell at the same time as a strong outbreak, but the province proactively planned to respond by building safe lychee areas; vaccinating lychee growers and drivers to consumption points; proposed the Government to direct ministries, branches and localities to create a "green channel" so that lychees could be quickly approved at COVID-19 epidemic control checkpoints when all procedures for epidemic prevention and control were completed and opened multiple consumption channels on e-commerce platforms. In addition, many important issues were also handled very quickly by the Government, for example, decisions on a mechanism to import vaccines or having an unscheduled meeting to grasp the situation and quickly issue Resolution 60/NQ-CP on the application of a specific mechanism on licensing the exploitation of minerals as building materials for the construction of north-south expressway project to promote public investment. Issuing its comments on the evaluation of the results of the implementation of the socio-economic development plan and the state budget in the first six months of the year and the plan for the last six months of 2021 at itsrecent 57th session, the National Assembly Standing Committee suggested the Government take the initiative in formulating socio-economic development scenarios in the short and long term. At the same time, it is also necessary to re-evaluate major economic indicators and balances for the whole year, coordinating synchronously between fiscal and monetary policy, while maintainingmacroeconomic stability. The National Assembly Standing Committee also proposed the Government conduct a comprehensive review and assessment of policies to support people affected by the COVID-19 epidemic in order to make appropriate forecasts and proposals with more effective support policies; timely remove difficulties, develop epidemic prevention and control scenarios in industrial parks and export processing zones; concentrate resources on the research and application of science and technology in disease prevention and control, speed up the implementation of the “vaccine strategy” and recommend strong enough solutions to attack, control and prevent COVID-19 in the coming time. In particular, there must be a solution with a specific roadmap regarding the plan to vaccinate the population against COVID-19 to ensure effective disease prevention and control, creating a premise for socio-economic development. According to Minister of Planning and Investment Nguyen Chi Dung, in the last six months of the year, the Government will steadfastly implement the dual goals of fighting the epidemic while protecting people's health and promoting socio-economic development; focus on maintaining macroeconomic stability, controlling inflation, ensuring the major balances of the economy; close coordination between fiscal policy, monetary policy and other macro policies; closely monitoring price movements to analyse, forecast and review growth scenarios, and promptly proposing solutions to control inflation. The government will utilise all its resources to provide free vaccinations to the entire population in order to achieve herd immunity. Increasing cashless payments pose security risks to users Although Vietnam is moving toward a cashless society, with many new methods of cashless payments being deployed widely, new technologies and applications come with their share of security risks to the users. Data of the Payment Department of the State Bank of Vietnam showed that in the first quarter of 2021, 156.2 million transactions worth VND8,100 trillion were made via the Internet, increasing 55.9% in volume and 28.4% in value compared with the same period last year. Besides, 395.05 million transactions worth VND4,600 trillion were made via mobile phones, surging 78% in volume and 103% in value year-on-year. According to the Fintech and Digital Banking 2025 – Asia Pacific report by Backbase, mobile transactions are forecast to increase 400% in Vietnam by 2025, thanks to the booming digital economy. The trend could be accelerated by the effects of the Covid-19 pandemic, together with the Government’s policies that encourage digital transformation. In March, the Government approved the pilot application of Mobile Money, a service that enables users to transfer and receive money as well as make payments for low-value goods and services through mobile accounts. The pilot outcomes will be the basis for policymakers to draw and issue official regulations for the operation of mobile money services in Vietnam. Together with e-wallets, credit cards and Internet banking, mobile money services are expected to make cashless payments more popular, even in rural and remote areas. However, security risks come hand in hand with the surge in cashless payments. Many users have reported that they received malicious messages from cybercriminals disguised as banks in recent months. The messages warned them of suspicious transactions related to their accounts and asked them to log into their accounts using a link provided in the message. Some users did so and lost their money. According to Visa’s Consumer Payment Attitudes study in Vietnam, up to 51% of Vietnamese consumers worry about their phones being infiltrated with malwares and viruses and 41% are concerned about information exposure when third parties gain unauthorized access to their devices. These are barriers to an even greater adoption of digital payments that have to be addressed by innovations built around security. In 2020, Kaspersky blocked more than 673,000 phishing attempts aimed at small and medium sized businesses in 2020. Phishing is a social engineering technique used by cybercriminals to steal information from a user’s private computer, laptop or smartphone for stealing money or data. “The increase in our reliance on e-wallets and mobile banking apps invites greater interest from cybercriminals who are almost always after our money and our confidential data. As a result, we see an increase in sophisticated smishing and phishing attempts targeted at mobile banking users,” said Yeo Siang Tiong, general manager for Southeast Asia at Kaspersky. “We expect more of these incidents in the future, hence it is important to secure your devices and be aware of the risks online as we embrace a digital society,” he added. Another Covid-19 field hospital in Bac Ninh disbanded The Covid-19 Field Hospital No.3, which was earlier set up at the Thuan Thanh Medical Center in Bac Ninh Province, was disbanded yesterday afternoon, June 20, as the 300-bed hospital has fulfilled its task of providing medical treatment to coronavirus patients. The local competent forces in Thuan Thanh District disinfected and cleaned the hospital, ensuring that the medical center can resume its original function and comply with anti-Covid-19 regulations. The district reported the highest number of cases and was among the biggest coronavirus hotspots in this northern province during the fourth coronavirus wave, reported VnExpress. Earlier, the province set up four Covid-19 field hospitals at the Gia Binh District Medical Center, the Tien Du District Medical Center, the Thuan Thanh District Medical Center and the Bac Ninh Lung Hospital and the Bac Ninh Traditional Medicine and Rehabilitation Hospital. Among them, the one at the Gia Binh Medical Center was disbanded on June 14. At present, the province has four medical facilities providing Covid-19 treatment, with over 1,000 beds. Among the 658 active cases in the province, 14 were receiving intensive care treatment. Meanwhile, 843 others were declared free of the virus and discharged from the hospital. Tan Yen fresh lychees hit shelves in Japan Lychees grown in Tan Yen district, the northern province of Bac Giang have made their way to stores in Japan this year. The first shipment of early-ripening lychee was sent to the East Asian country at a ceremony at the end of May. From May 24-26, around 20 tonnes were exported to Japan. This is the second year that the local staple has been exported to this fastidious market, and the achievement is more special as it is attained during the COVID-19 pandemic. Chairman of the Bac Giang provincial People’s Committee Le Anh Duong said local authorities have taken measures to ensure the quality, food safety and hygiene of the fruit. Speaking at the ceremony, Phan The Tuan, vice chairman of the provincial People’s Committee said in the context of complicated changes caused by the COVID-19 pandemic, Bac Giang province has built strong lychee growing areas, especially in Tan Yen and Luc Ngan districts. The province has prepared necessary conditions to ensure absolute safety in terms of health, security and order for businesses, traders, and drivers entering Bac Giang to purchase and consume lychee. The first shipment of lychees exported to Japan, a large market with very high quality standards, has shown the locality’s determination, seriousness and responsibility in the process of producing and consuming lychee, he added. The authorities also actively worked with the Japanese Embassy in Vietnam to receive a Geographical Indication (GI) certificate for lychees grown in Luc Ngan district, making it the first Vietnamese product to obtain such certification from Japan. Since the pandemic has seen complicated developments, particularly as Bac Giang is now one of the country’s hotspots, the provincial authorities have well prepared for lychees consumption this year. Nguyen Viet Toan, Chairman of Tan Yen District People's Committee, said: “In 2021, in the context of the COVID-19, the district will focus on protecting lychee areas from the pandemic such as persuading local residents to refrain from travelling out of the areas, setting up checkpoints to control people and vehicles entering the concentrated lychee area, and keeping close health monitoring of local farmers as well as seasonal labourers working in fruit harvesting and transport.” This year, Bac Giang province has around 28,100 ha of lychees with an estimated output of more than 180,000 tonnes, an increase of 15,000 tonnes year-on-year. This includes 45,000 tonnes of early-ripening lychee harvested on an estimated area of 6,050 ha along with 135,000 tonnes of lychee from the main crop on an area of 22,050 ha. “The Tan Yen early-ripening lychee has the best quality so far, ensuring food hygiene and safety and not affected by COVID-19,” he added. The district cultivates lychee in an area of 1,329 hectares, 1,200 hectares of which are set aside for early-ripening lychee. Many traders have come to survey and sign contract to purchase early-ripening lychees, he said, stressing each kilogramme is sold at 25,000 - 30,000 VND (1.09 – 1.3 USD), particularly the price is 55,000 VND per kilogramme for the Japanese market, and the prices are expected to increase in the coming time. Last year, Bac Giang shipped 200 tonnes of thieu lychee to Japan. A year after Japan first opened its market to Vietnamese lychees, the export and consumption of the fruit have been going smoothly despite COVID-19, Vietnam’s trade office in the Northeast Asian country said. Vietnam began negotiating lychee exports to Japan in 2014. After five years, on December 15, 2019, Japan’s Ministry of Agriculture, Forestry and Fisheries announced that Japan had officially opened its market to Vietnamese lychees but also requested that the fruit undergo a strict plant quarantine process prior to export. In early June 2020, an agricultural expert from Japan was sent to Vietnam to monitor fruit packaging and sterilisation, completing the final step required by Japan for lychees to be shipped to the market. Thieu lychees have been exported to 30 countries such as China and the EU, Russia, the US and Canada. Lychee is the fourth kind of fruit from Vietnam that has successfully made inroad into the Japanese market, following dragon fruit, mango and banana./. Vietnamese lychee becomes “hot item” in Australia One kilo of Vietnamese fresh lychees was sold for 3,000 AUD (2,254 USD) at a special auction in Perth city of West Australia recently, which opened the Vietnamese Lychee Week held by the Vietnamese Trade Office in Australia. The auctioned lychees are chosen from the first batch of 17 tonnes of fresh lychees in the crop of 2021 that has just arrived in Australia. The auction, took place in MCQ supermarket on June 16, drew a large number of visitors who lauded the outstanding quality of Vietnamese lychee this year. Head of the Vietnamese Trade Office in Australia Nguyen Phu Hoa said that along with the high quality, this year, importers and distributors have paid great attention to packaging. The auction aimed to affirm the value of Vietnamese lychee and support the promotion of the trademark, he said, adding that all the money from lychee selling at the event will be sent home to support children in the lychee-growing regions. Prior to the harvesting season at home, the office had implemented the trademark-building programme to promote consumption of Vietnamese lychee in the largest market in the Oceania. In the Vietnamese Lychee Week, it has conducted a series of activities to advertise the Vietnamese lychee trademark. This year is expected to be a good year for Vietnamese lychee in Australia. The leading importer of Vietnamese farm produce in Australia, 4wayfresh, said that this week, an additional batch of lychees will arrive in West Australia as part of its plan to import 100 tonnes of lychees in this crop. In other states such as Victoria and South Australia, importers are importing fresh lychees from Vietnam to meet the market demand. Vietnamese lychee has been favoured by Australian consumers since the product was first sold in the country in 2015. Last year, 80 tonnes of the product was sold in the market. Ly Hoang Duy, Director of 4wayfresh, said that Vietnamese lychee has outstanding taste and quality thanks to improved storage and transport technology. The majority of consumers in Australia agree that this is the best of its kind in the market. This year, Australian importers plan to import 300-500 tonnes of Vietnamese lychee./ Rattan, bamboo, sedge exports surge by 76.8% over five months Vietnam’s rattan, bamboo, sedge, and carpet exports recorded a surge of 76.8% to reach US$356.47 million against the same period from last year, according to the General Department of Vietnam Customs. May alone saw the country rake in US$80 million from shipping these products abroad, an increase of 1% compared to April and a huge annual rise of 113.7%. During five months, the export of these products to the European Union rose 57.6% to US$68.73 million on-year, of which carpet exports to the demanding market saw a sharp increase with turnover reaching US$23.13 million, an annual rise of 133.6%. Meanwhile, Vietnam also grossed US$111.62 million from exporting similar products to the US, up 111.0% compared to last year’s corresponding period. Carpet exports to the US alone reached a total of US$58.90 million, climbing 119.7% from last year’s corresponding period. According to statistics compiled by the US International Trade Commission, import demand from the US for carpet products increased continuously throughout the 2010 to 2018 period, with India, Turkey, and China being the three major suppliers of the product to the market. Despite high demand for carpet imports coming from the US, market shares of the product from Vietnam remained low, rising from 0.02% in 2018 to 3.11% last year. According to industry experts, there remains bright prospects ahead for exporting Vietnamese handicrafts to the US market in the time ahead, particularly as American consumers are seeking to switch to importing handicrafts from other markets, with a view of looking torwards Vietnam as opposed to China. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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Health official calls for caution in vaccine authorisation 10:15 HÀ NỘI — The licensing of a COVID-19 vaccine, even for emergency use, must be based on sufficient scientific data, a Ministry of Health official has said.  Health staff give Nano Covax COVID-19 vaccine shot to a volunteer in the third phase of human trials of the vaccine on June 11. — VNA/VNS Photo Minh Quyết Deputy Director of the Department of Science, Technology and Training Nguyễn Ngô Quang was speaking in response to reports that Nanogen Pharmaceutical Biotechnology Joint Stock Company had called for an approval for emergency use for its COVID-19 vaccine Nano Covax, the most promising Vietnamese-made vaccine to date which has entered phase 3 human trials, amidst the severe fourth wave of infections in the country. Quang said before a vaccine can be widely administered to the people, the Ministry of Health needs data on safety, immunogenicity and protective efficacy. In the case of the Nanocovax vaccine, only 1,000 people have been administered the experimental shot in the phase 3 which started on June 11, still a small number, Quang said. The four vaccines that are granted conditional approval in Việt Nam - AstraZeneca, Sputnik V, Sinopharm's Vero Cell, and Pfizer - have passed phase 3 which involves 30,000-50,000 subjects. "In case Việt Nam does not have access to imported COVID-19 vaccine sources until August-September 2021, and if the pandemic situation in the country is still complicated, we will make [decisions] on the data proving the safety, immunogenicity and protective effect on the first 1,000 cases of injection and consider authorisation for emergency use." However, Quang also noted that "this is an option only to be considered in case of an emergency". Given that Việt Nam already has access to imported COVID-19 vaccines with clear research results such as Pfizer, Moderna, Sputnik V or other vaccines approved by the WHO, priority will be given to those imported sources instead of vaccines without enough data. “The view of the Ministry of Health as a whole and the view of myself as an individual is that we are fully supportive of the research and development of locally made vaccines to ensure supply of vaccines in Việt Nam. This is a very appropriate directive of the Government,” Quang said. "But we will bear the responsibility to explain to the people about whether this vaccine is effective or not, on what basis to say it is effective and why do we agree to license it? The goal of the health sector is to protect the health of the community, thus benefits and risks should be carefully weighed.” “This is us being extra cautious, not making it difficult for the enterprise,” Quang said. The current data shows the COVID-19 vaccine Nano Covax is safe and has immunogenic properties, but facts about its effectiveness have to wait for more research and further testing. To have enough scientific basis to evaluate a vaccine, it is necessary to follow up 36, 45 and 56 days after the first injection. Only on that basis, it is enough to meet the criteria to evaluate the immunogenicity and protective effect. So we can only evaluate a vaccine at least after two months from its first jab,", Quang said. First 1,000 jabs in third-phase trials of Nano Covax The administration of the first 1,000 shots in the third-phase trials of Nano Covax were given to about 880 volunteers in the northern region under the Hà Nội-based Việt Nam Military Medical University’s coordination and more than 120 others in the south under the co-ordination of the Pasteur Institute in HCM City. The shots were administered on a 6:1 ratio, which meant six people got the vaccine and one received a placebo, according to Lt. Col. Chu Văn Mến, director of the university’s Centre for Clinical Trials and Bioequivalence. The volunteers will have blood samples taken to test the generation of immunity by July 30, and data about the vaccine safety and immunity generation is set to be available by mid-September. After the first 1,000 volunteers, the trials of Nano Covax will continue on another 12,000 people on a 2:1 ratio, with two getting the vaccine and one the placebo. The third-phase trials, using only the 25mcg doses, will cover 13,000 volunteers aged between 18 and 75 nationwide. Results of the first two stages show good immunity generation in all volunteers, Mến noted. Nano Covax has been developed by the Nanogen Pharmaceutical Biotechnology JSC since May 2020. The first-phase trials began on December 18, 2020, while the second phase started on February 26 this year, and the third on June 11. Việt Nam also has several other vaccine candidates under development. — VNS |
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