VIETNAM BUSINESS NEWS JULY 715:55 Disbursement of public investment must be sped up in H2
The disbursement of public investment must be sped up in the second half of this year as an important solution to accelerate economic growth amid the COVID-19 pandemic, according to the Ministry of Planning and Investment. This was stressed in the Government’s Resolution No 63/NQ-CP issued in late June about major tasks to accelerate economic growth, speed up public investment and promote sustainable exports in the closing months of 2021 and early months of 2022. The ministry said that the disbursement rate of public investment was expected to be at least 60 per cent of the plan by the end of the third quarter and 95-100 per cent for the full year. The latest updates of the General Statistics Office (GSO) showed that more than VND295 trillion worth of investment from the State sector was realised in the first half of this year, accounting for 25.3 per cent of the plan and up by 7.3 per cent against the same period last year. The total realised investment in the economy, including the public investment, non-State sector and foreign direct investment (FDI) was estimated at VND1.169 quadrillion, up by 7.2 per cent against the same period last year. GSO’s Director Nguyen Thi Huong said that the increases in realised investment demonstrated the effectiveness of solutions to speed up disbursement of public investment, the Government’s policies to support enterprises as well as measures to receive the FDI inflow in the context that the COVID-19 pandemic was triggering a global production shift. Meanwhile, statistics from the Ministry of Planning and Investment showed that disbursed public investment totalled more than VND133.89 trillion in the first half of this year, making up for 29.02 per cent of the plan, compared to the rate of 34 per cent recorded in the same period of 2020. Three ministries and central-level agencies had disbursement rates of below one per cent while nine had not managed to disburse any. To achieve the goal in disbursing public investment in 2021, the Government asked relevant ministries and localities to enhance discipline and accountability of the leaders in the disbursement of public investment. Besides, the public investment allocation plan for different projects must be reviewed to ensure the implementation progress and ensure that the investments go to key and feasible projects. The focus must be placed on speeding up site clearance, removing difficulties, especially those related to land and natural resources, for public-invested projects. Each ministry, agency and locality must establish a working group in charge of pushing the disbursement progress, supervising and tackling bottlenecks in the disbursement. Public investment was identified among key drivers for economic growth in the context of the COVID-19 pandemic. In Resolution No 63/NQ-CP, the Government also raised other solutions to promote economic recovery in the remaining months of this year, including the formation of vaccine production industry, maintaining macro-economic stability, increasing national digital transformation and raising measures to support virus-hit citizens and enterprises. GSO’s statistics also showed that the Vietnamese economy expanded by 5.64 per cent in the first half of this year, much higher than the growth rate of 1.82 per cent recorded in the same period of last year. The National Assembly set the target for GDP growth at around six per cent this year but the Government set a higher goal at 6.5 per cent. Viet Nam's agriculture sector gains export growth in H1 Viet Nam’s agriculture sector gained export growth of agricultural, forest and seafood products in the first six months of this year despite difficulties caused by the COVID-19 pandemic. In the first half of the year, Viet Nam earned US$24.23 billion from exporting agriculture, forestry and seafood products, an increase of 28.2 per cent compared to that of the same period last year. During this period, the complicated development of the COVID-19 pandemic disrupted material supply chains all over the world and had negative impacts on the production, consumption and exports of farming products. However, Viet Nam’s agriculture made great efforts to achieve twin goals – ensuring COVID-19 prevention and control and maintaining growth in production and business. Of which, the export value reached $10.40 billion from major agriculture products, $4.05 billion from seafood products and $8.7 billion from forestry products, a year-on-year increase of 13.3 per cent, 12.5 per cent and 61.5 per cent, respectively. Key export farming products with growth in both export volume and value included rubber, tea, cashew, cassava and products made from cassava. Products with higher export value mainly thanks to growth in export volume included timber and wooden products, bamboo products and shrimp. China, the US, Japan and South Korea were the four major export markets for Vietnamese agricultural products. Of which, the US was the largest export market for Viet Nam's agriculture sector with a total export value of $6.7 billion, mainly from exports of timber and wooden products, a year on year surge of 59.8 per cent. China was the second largest market with an export value of $4.8 billion, 32 per cent higher than the same period of last year. Viet Nam’s agriculture sector saw a trade surplus of $3.14 billion in the first half of this year as the country spent about $21.09 billion importing agriculture products. The COVID-19 pandemic has been causing disruptions in consumption and exports of farming products, the Ministry of Agriculture and Rural Development (MARD) has actively boosted farming product exports to markets like Peru and Australia as well as studied free trade agreements (FTAs) to take advantages relating to agriculture product exports, said deputy minister of agriculture and rural development Nguyen Thanh Nam. The ministry co-operated with Vietnamese embassies and trade offices in countries to exchange market information for having forecasts and analysis in timely manner on market development during and post-COVID-19 pandemic. Viet Nam also created favourable conditions for Chinese traders to purchase lychee in Viet Nam. It also negotiated with China, Thailand and the EU to boost the exports of fruits and seafood products from Viet Nam. The ministry followed the production and consumption of farming products nationwide, especially in COVID-19-hit areas. Besides that, MARD, the Ministry of Trade and Industry and localities have also implemented measures to support farmers and enterprises in consuming agro products amid the COVID-19 pandemic. They help farmers sell farming produce to supermarket chains like Big C, AEON, Hapro and Vinmart. The farming products are available on e-commerce platforms like Alibaba, Amazon, Sendo, Voso and Shopee, Nam said. MARD expects the export revenue of agriculture, forestry and seafood products this year to reach about $45 billion, including $21.5 billion from main agriculture products, $14 billion from forestry and wooden products, $8.5 billion from seafood products and about $1 billion from other products. According to the General Statistics Office, in the first half of this year, the agriculture sector gained a GDP growth of 3.6 per cent in the first six months of this year. Meanwhile, its agriculture, forestry and fishery production value achieved an increase of 3.84 per cent. Coal stocks on an upswing thanks to rising prices The sharp increase in the price of raw coal has pushed coal stock prices up in June this year. In June alone, NBC shares of Nui Beo Coal JSC traded on HNX soared by more than 111 per cent compared to the previous month. There were many sessions in which NBC reached ceiling prices with strong increase in liquidity. In the trading session on June 18, NBC suddenly attracted cash flow with the liquidity nearly doubling compared to the previous trading sessions. At the end of the session, NBC hit the ceiling price with an increase of 9.89 per cent compared to the previous session. It became a historic session for NBC as the market price exceeded the par value after 6 years of trading below VND10,000 (US$0.4) per share. Currently, NBC is trading around VND14,500 per share. TDN shares of Vinacomin-DeoNai Coal JSC also had an impressive recovery in June as they increased by more than 63 per cent compared to May. TDN surpassed par value in the recent session on June 28 and is currently trading around VND10,500 per share. Other stocks in the coal industry also recorded an upswing in June such as TVD shares of Vang Danh Coal JSC, up by 57 per cent, MDC of Mong Duong Coal JSC rising by 46 per cent, THT of Ha Tu Coal JSC up by 36 per cent, TC6 of Coc Sau Coal JSC up by 45 per cent. Currently there are 13 coal stocks listed on the Ha Noi Stock Exchange (HNX) with the State shareholder being the Viet Nam Coal and Mineral Industries Group (TKV) owning over 50 per cent of capital. Notably in June, six out of 13 coal stocks have exceeded par value after many years of trading at low levels. If at the end of May, the stock market prices of many coal stocks were still around just VND5,000-7,000 per share, now most of them have risen to over VND10,000 per share. In a recent report, Yuanta Securities Vietnam attributed the strong increase in stock prices to the rising material coal prices, saying that the world coal price had surpassed the level of $120 per tonne, the highest since October 2011, due to supply constraints and a sharp increase in demand. Coal demand was increasing strongly in Asian countries such as China, Japan and South Korea. Coal prices soared nearly 44 per cent compared to the beginning of 2021, the company said. According to analysts, the upward trend in coal prices will continue at least till the end of 2021, due to strong demand from steel producers in China and many other countries after the pandemic. Previously, the declining coal prices on a global scale combined with dwindling reserves and a large annual welfare fund for employees made coal stocks gradually lost their attractiveness to investors. However, according to experts, investors need to be cautious when trading some coal stocks with rapid increases as the general outlook of the mining industry is still considered average in 2021. In fact, in the first trading sessions of July, profit-taking pressure increased causing most coal stocks to plummet, some stocks even fell to the floor prices. In terms of long-term investment, in addition to the wave of coal price increase, a plus point of coal stocks is that coal companies are paying annual dividends regularly. Some businesses even pay cash dividends of up to VND2,000-3,500 per share. Therefore, despite previous low market price and liquidity, coal stocks still attracted long-term investors. This year from May to July, coal enterprises begin to execute their 2020 dividend payment plan. Vietnam, ASEAN markets offer huge opportunities for European firms Vietnam, Malaysia and Thailand are the most attractive expansion destinations for European corporates, according to a recent survey conducted by Standard Chartered Bank. The survey said 88 percent of respondents expect business to go up in the next 12 months, on drivers such as a growing consumer market; free trade agreements; and a reliable supply base. In terms of target markets within ASEAN, 60 percent of survey respondents are focusing on expanding in Vietnam to capture sales and production opportunities, followed by Malaysia (53 percent) and Thailand (48 percent). The survey said that the Europe-AESEAN corridor could enable growth in six high-potential sectors, including pharmaceuticals production, consumption of consumer goods, automotive industry, green and digital solutions, renewable and clean energy and e-commerce. The optimistic outlook came even as 75 percent of respondents cited their understanding of regional regulations, payments and infrastructure as a significant medium-term barrier. Robert Newell, managing director for Europe global corporates at Standard Chartered Bank said that the ASEAN markets continue to offer huge opportunities for European companies, both for those looking to diversify and expand their investment and trade activities, and those who are well aware of the deep technological expertise and significant consumer base across the markets. Vietnam’s economic development drivers are still maintained despite of severe impacts of the COVID-19 pandemic. The country’s General Statistics Office announced that Vietnam’s GDP increased by 5.64 percent in the first six months of 2021./. Belgium tech giant looks to help Vietnam’s coconut industry <span style='font-size:13.0pt;mso-bidi-font-size:12.0pt;color:#003366'>browser not support iframe.<o:p></o:p></span> Vietnam harvests 1.3 to 1.4 billion coconuts each year but by-products have posed a major challenge to the environment. A Belgium-based tech giant has therefore planned to help the country in turning the coconut coir into charcoal for export. At a recent meeting with the Vietnamese Trade Commission in Belgium, the company proposed turning coir into charcoal, which would be suitable for Vietnam given the country harvests billions of coconuts each year. Vietnamese Trade Commission in Belgium has pledged to distribute information to relevant Vietnamese enterprises so they can work on the solution. With John Cockerill’s determination and resources, it is expected to help Vietnam’s agricultural sector on its path towards sustainability./. Vietnam, Egypt seek stronger trade, culture, tourism cooperation Vietnamese Ambassador to Egypt Tran Thanh Cong called on Egyptian investors to seek trade, culture and tourism cooperation opportunities in Vietnam during a business forum in Hurghada city in Red Sea province on July 6. At the event, Ambassador Cong said that Vietnam and Egypt have enjoyed growing traditional friendship with the signing of agreements in many areas after visits by senior leaders of both sides between 2017 and 2018. He introduced the economic situation in Vietnam as well as the great potential of the country’s tourism sector with attractive landscapes such as Ha Long Bay and Nha Trang beach. He held that Vietnam and Egypt boast high potential and advantages in boosting ties in various areas. Particularly, Red Sea governorate is a major tourism destination of Egypt with advantages in maritime economic development, he noted, advising local firms to explore investment opportunities in maritime economy and tourism in Vietnam. At the event, Egyptian firms proposed that the Vietnamese Embassy and the Red Sea Chamber of Commerce to support tourism firms in the locality to open their representative offices as well as restaurants and hotels in Vietnam, thus increasing the number of tourists to each other country. Some suggested that the two sides cooperate in producing products serving tourism activities, while showing their hope to learn from Vietnam’s experience in human resource training in all fields, including tourism. Earlier, during his working trip to Hurghada, Ambassador Cong met with Chairman of the Red Sea Chamber of Commerce Khaled Reda, during which both sides expressed their wish to further promote cooperation in agriculture, aquatic farming, garment and textile, and tourism. Khled Reda proposed that Vietnam create favourable conditions for businesses from both countries to access each other’s goods. He suggested the Vietnamese Embassy strengthen connectivity among enterprises of both sides via organising trade promotion conferences and forums. The same day, the Vietnamese Embassy delegation also met with leading firms of Red Sea governorate to introduce Vietnamese companies to them. Within the forum’s framework, the embassy held a culinary event and a photo exhibition to introduce the culture, nation and people of Vietnam as well as the country’s economic achievements after 35 years of renewal. The activities concluded on July 7./.
Long An leads country in attracting FDI The southern province of Long An led the country in attracting foreign direct investment (FDI) capital in the first half of this year, despite the COVID-19 pandemic. The province licensed 30 FDI projects with total investment capital of more than 3.3 billion USD, of which over 3 billion USD was poured into the Long An LNG power plants No 1 and 2. In addition, Long An also issued investment licences to 77 domestic projects with total registered capital of nearly 5.6 trillion VND (243 million USD). According to the provincial People’s Committee, relevant agencies have carried out a range of investment promotion activities, including arranging a trip for Japanese companies to local industrial parks and clusters, receiving a delegation of businesspeople from the Republic of Korea who came to explore the investment environment, and an event on the province’s orientation for hi-tech economic zone development which attracted big corporations from the RoK, the US and Germany. Local agencies have also inspected the pace of investment projects and promptly revoked licences of delayed projects. The province will continue to work to improve the local business and investment environment through measures to increase the Provincial Competitive Index (PCI) and maintain its ranking in either the “good” or “very good” group. The provincial administration will keep close contact with investors in order to timely handle any difficulties and obstacles that arise during their project implementation./. Vietnamese lychees make it onto UK supermarket shelves <span style='font-size:13.0pt;mso-bidi-font-size:12.0pt;color:#003366'>browser not support iframe.<o:p></o:p></span> Vietnamese lychees have hit UK supermarket shelves under the UK - Vietnam Free Trade Agreement (UKVFTA) and have found favour thanks to their rich aroma and sweetness. In the meantime, import duties levied on Vietnamese agricultural products fall sharply in the UK. Earlier, both FUSA and TT Meridian had a lot of experience in importing and exporting agricultural products to several EU countries such as the Czech Republic, France, and the Netherlands./. Switzerland supports Vietnam in training bank executives The State Bank of Vietnam (SBV) and the Embassy of Switzerland last week signed a bilateral agreement for the new Swiss Bank Executive Training programme (Swiss BET) to help build the capacity of Vietnamese bank executives. The programme, which will run from 2022 to 2027, will provide support with a grant of five million Swiss francs (about 5.4 million USD). The banking industry plays a central role in efforts to sustain the high rate of economic growth. As the sector is still prone to external instabilities, strengthening the banking sector to narrow the gaps with international standards is strategically important. The Swiss BET programme offers the instruments required by the Vietnamese banking and financial industry to improve management practices in respective institutions. Building on the success of the previous programme phases, Swiss BET will be governed by a partnership of the SBV and the State Secretariat for Economic Affairs (SECO). The Swiss Finance Institute (SFI), the project-implementing agency, will provide expert training. The SFI will train more than 240 Vietnamese bank executives and hundreds of central bankers on the latest state-of-the-art banking management practices./. Phu Tho’s export value surges 73.5 percent in six months Exports-imports in the northern mid-land province of Phu Tho continued increasing in the first half of this year thanks to its abundant stocks of materials and stable production-trade activities. According to the provincial Department of Industry and Trade, its export revenue surpassed 3.2 billion USD, up 73.5 percent year-on-year while imports surged 86.4 percent to 3.2 billion USD. Director of the department Nguyen Manh Hung said when the COVID-19 broke out, the department worked with agencies, authorities of districts and townships, and provincial business association to keep updated on the situation, suggest measures to help firms tackle difficulties, and step up production and trade. In the near future, the department will partner with the Ministry of Industry and Trade to offer support measures for businesses, access new markets, increase trade promotion and facilitate e-commerce. At the same time, it will continue to develop industrial products with competitiveness and industries of local strength, encourage the adoption of clean and eco-friendly technologies, and assist local enterprises in expanding export markets. Tran Dai Thang, head of the provincial customs department, said the department is facilitating customs clearance for enterprises. This year, the province strives to increase the total retail revenue of goods and consumer services to more than 37.2 trillion VND (1.62 billion USD), export value to 4.5 billion USD and import value to 4.2 billion USD./. Vietjet offers millions of 77-percent-off tickets flying from Hanoi Budget carrier Vietjet is offering an attractive promotion programme "Double day, Super sale, Let's Vietjet". Under the programme, on July 7, 2021, customers applying the promotion code "FlyDeal77" will get 77 percent discount on Eco fares, excluding taxes and fees. Promo code is applied to all routes departing from Hanoi to attractive destinations including Da Nang, Da Lat, Phu Quoc, Quy Nhon,etc, with the flexible flight period from September 7 to December 31, 2021. Moreover, all passengers purchasing tickets and fly with Vietjet from now until July 31, 2021 will receive 15kg free checked baggage. Passengers can easily buy tickets at the website www.vietjetair.com, Vietjet Air mobile app, Facebook at www.facebook.com/vietjetvietnam (section “Booking”) or ticket offices and official agents. Payment can be easily made with Visa/ Master/ AMEX/ JCB/ KCP/ UnionPay cards; or with any ATM card issued by 34 Vietnamese banks (registered with internet banking), e-wallet and QR payment. In particular, passengers can enjoy free payment fees when booking and paying via Vietjet SkyClub - Vietjet’s exclusive program for loyal customers. Passengers must fully comply with the mandatory health declaration within 24 hours before departure time via https://tokhaiyte.vn, NCOVI app or Bluezone app before getting to the airport, save and show the information when checking as well as wear face masks during your flight to protect yourself and your community. Vietjet also offers the “Fly Safe” insurance free for all passengers with 24 hours accident insurance benefits up to 20 million VND, supporting living expenses, loss of income due to mandatory quarantine by the pandemic from 1 million VND per day. Import-export turnover likely to hit US$600 billion this year With total import and export turnover of goods surging by 32.2% to US$316.73 billion in the first half of the year, Vietnam is likely to gross US$600 billion in import-export turnover throughout the year, according to industry insiders. Economists have therefore emphasised that the manufacturing and agro-forestry-fisheries sectors are anticipated to become two major pillars for Vietnamese exports moving into the second half of the year. Nguyen Anh Duong, head of the Central Institute for Economic Management (CIEM)'s General Research Department, believes there is plenty of room for the country to boost exports in the near future due to the COVID-19 pandemic being brought under control in several major Vietnamese export markets, including the United States and the EU. Furthermore, as one of the country’s crucial export markets, China has also been enjoying a strong recovery in the post-pandemic period, a factor which is expected to offer fresh impetus for the expansion of exports moving forward. Moreover, there are also bright prospects ahead for the country’s exports of electronics as they strive to bounce back due to large corporations like Apple and Samsung projecting that smartphone consumption will enjoy positive signs ahead in the second half of the year, Duong noted. Despite the nation recording a trade deficit of US$7.7 billion during the first half of the year, it should not be considered a matter of concern due to the country importing goods mainly for production and export activities, Duong added. Tran Thanh Hai, deputy director of the Import-Export Department under the Ministry of Industry and Trade, pointed out that Vietnamese COVID-19 containment efforts in industrial parks situated in pandemic-hit localities such as Bac Ninh and Bac Giang have served to restore production activities at factories there. In addition, the country’s relentless efforts in deploying its vaccination campaign and the effective enforcement of free trade agreements (FTAs), especially new-generation FTAs, are expected to accelerate import-export activities in the near future, according to economists. Vietnam, UK set US$10 billion trade target over next five years Trade turnover between the nation and the UK surged by 25% during the first half of the year, with both sides aiming to double the bilateral trade value to US$10 billion within the next five years, according to Vietnamese Ambassador to the UK Nguyen Hoang Long. His remarks came during the course of an online meeting held on July 5 with members and partners of the Vietnam-UK Friendship Network (VUKN), during which Ambassador Long reviewed the latest achievements in joint ties, especially in the fields of trade, education, security and defence, and people-to-people exchanges. The Vietnamese diplomat quoted British Foreign Secretary Dominic Raab during the latter’s visit to the country in June as saying that the UK considers the nation to be its best friend, best trading partner, and best strategic partner. In response, the Ambassador affirmed that achieving this is his goal during his working term in the UK. He went on to highlight the great potential that exists for broader trade co-operation between both sides amid the country, a large potential market, entering a new stage of economic development. Indeed, the goal of GDP per capita reaching US$3,500 has been set for 2025, doubling to US$7,000 by 2030. As one of Vietnam's leading partners, the UK is capable of meet Vietnamese economic development needs in key fields such as science and technology, Ambassador Long added. The diplomat also affirmed that education is prioritised in terms of bilateral co-operation, with the UK currently making up the nation’s leading partner in the field of education, with 74 transnational education schemes run by 23 British universities. Co-operation security and national defence have also seen greater development as the UK is increasing its presence in the East Sea and Southeast Asia. As such, it regards Vietnam to be a key partner within the Indo-Pacific region. During the course of the meeting, Ambassador Long also revealed goals and an action plan during his tenure, especially the Vietnam Year programme in the UK in 2023 when both sides will celebrate 50 years of their diplomatic ties. For his part, Warwick Morris, president of the VUFN, said that the two countries can ramp up co-operation in the medical field, especially in the fight against the global COVID-19 pandemic, as well as in other areas such as science, technology, and mechanics. The meeting was jointly organised by the Vietnamese Embassy in the UK and VUFN, whilst it also featured the participation of the UK Prime Minister's Trade Envoy, British MPs Heather Wheeler and Wayne David. This is in addition to more than 70 representatives from the UK Foreign and Commonwealth Office foreign embassies in the UK, along with British and Vietnamese organisations, associations, businesses, and universities. ADB helps boost private sector development in Vietnam The Asian Development Bank (ADB) has approved US$4.6 million in technical assistance to help the Vietnamese Government strengthen public–private partnerships (PPPs), private sector development, and state-owned enterprise (SOE) reform. This technical assistance will be used to provide policy advice, assist preparation for infrastructure projects, and strengthen institutional capacities as a means of enhancing sustainable economic growth. The financing includes a US$2.7 million grant given by the Canadian Government, along with a sum of US$1.9 million from the Australian Government, both of which will be administered by ADB. “Vietnam has achieved impressive socio-economic development over the past three decades by maintaining high economic growth gained from its structural reforms,” said Donald Lambert, principal private sector development specialist of the ADB . “To meet the targets of its upcoming Socio-Economic Development Strategy (SEDS) from 2021 to 2030, maintain growth rate of between 6 - 7%, and to achieve the Sustainable Development Goals, Vietnam will need to further accelerate economic reforms, expanding the role of the private sector in driving the country’s development”, he added. Between 2011 and 2020, Vietnam invested an estimated US$117 billion in infrastructure. However, its infrastructure remains underdeveloped in comparison to its regional peers. In order to update this, the country will need to mobilise an estimated US$237 billion between 2021 and 2030 to close the infrastructure deficit, a sum which is US$49 billion more than the historical spending trajectory. Upon recognising the potential of the private sector to help close the infrastructure deficit, Vietnamese SEDS for the 2021 to 2030 period will prioritise removing barriers to create greater competition and develop a supportive environment. This is being done with the primary aim of increasing the private sector’s contribution to the economy, including a larger role in infrastructure development. Moving forward, ADB’s new technical assistance will help to deliver policy advice on PPPs and private sector development, along with piloting projects that embed the G20 Quality Infrastructure Investment principles, whilst strengthening PPP and private sector development institutional capacities. Rubber exports surge in first half of 2021 Vietnam raked in US$1.15 billion from exporting approximately 681,000 tonnes of rubber in the first half of the year, with China continuing to increase rubber imports from the country, according to the Import-Export Department under the Ministry of Industry and Trade. These figures represented a rise of 41.3% in volume and an increase of 79.9% in value compared to the same period from last year. June alone saw the nation ship roughly 130,000 tonnes of rubber worth US$221 million abroad, marking an increase of 57.1% in volume and 54.2% in value compared to the previous month. Indeed, the average export price reached US$1,700 per tonne, a drop of 1.9% compared to May, but a significant rise of 42.8% compared to June, 2020. Statistics compiled by the General Administration of Customs of China indicated that China's rubber imports reached US$5.14 billion during the opening five months of the year, an increase of 29.8% compared to the same period from last year. In addition, Vietnam is among the five largest markets supplier of rubber to China, alongside the likes of Thailand, Malaysia, Japan, and Indonesia. Furthermore, the country was the second largest rubber supplier to the northern neighbour throughout the reviewed period with US$770.01 million, an annual rise of 77.3%, with the country’s rubber market share as part of China’s total import value accounting for 15%. During the first half of the year, China's natural rubber imports reached US$1.49 billion, up 49.5% against the same period from last year, with the majority coming from markets such as Thailand, Malaysia, Indonesia, the Ivory Coast, and Vietnam. Moreover, Vietnam made up the fifth largest natural rubber provider to the Chinese market during the five-month period, with turnover reaching US$88.37 million, an annual rise of 112.1% with the country’s natural rubber market share making up 5.9% of China's total import value. The northern neighbour’s imports of natural rubber and synthetic rubber reached a figure of US$2 million, an annual rise of 11.5%, with the nation being one of the five largest suppliers of these products to China, alongside Thailand, Malaysia, Myanmar, and Indonesia. Meanwhile, Vietnam also represented the second largest supplier of natural and synthetic rubber mixtures to the Chinese market in the reviewed period, with turnover reaching US$677.28 million, up 74.6% compared to last year’s corresponding period. As such, the country’s market share of these products accounted for 33.8% of China's total import value. Vietnamese economy predicted to maintain 6.7% growth this year United Overseas Bank (UOB) of Singapore has maintained its forecast that the Vietnamese economy will expand by 6.7% over the course of the year 2021. The bank recently released a report detailing economic growth during the second quarter, noting the country’s economic growth trajectory has remained on track. Vietnam’s fourth outbreak of COVID-19, which initially started on April 27, has resulted in movement restrictions and lockdowns which have caused great disruption for a range of business and manufacturing operations, it said. UOB said it believes that the recent COVID-19 outbreaks, coupled with the discovery of new variants, certainly pose a downside risk to the economy, particularly as vaccination rates are low compared to neighbouring countries. Most notably, the second quarter of the year has seen GDP growth stay strong, hitting 6.6%. Furthermore, exports continued to record growth, whilst foreign direct investment (FDI) inflows remain upbeat this year, a reflection of investor confidence and Vietnamese relevance within the global supply chain. Moving forward, UOB forecast that Vietnamese GDP growth will likely reach 6.7% this year, higher than the 6% target set by the National Assembly. Bright spot in FDI attraction in first half of 2021 The newly and additionally registered capital poured into Vietnam by foreign investors during the first half of the year has witnessed an upward trajectory, despite a decline in capital contribution and share purchases, according to the Ministry of Planning and Investment (MPI). Out of the total of US$15.27 billion in FDI attraction in six months, newly-registered capital reached US$9.55 billion, an annual rise of 13.2%, while adjusted capital increased by 10.6% to reach US$4.12 billion. Meanwhile, capital contribution and share purchases by foreign investors dropped 54.3% compared to the same period from last year to US$1.61 billion. Pham Dinh Thuy, director of the Industrial and Construction Statistics Department, emphasised that newly and additionally registered capital by foreign investors has increased sharply by 13.2% and 10.6%, respectively, year on year. The rise is considered a bright spot in the overall FDI picture in the reviewed period, despite the complicated development of the COVID-19 pandemic, said Thuy. He also noted that the processing and manufacturing sectors have attracted US$6.98 billion, taking the top spot among 18 industries in relation to FDI attraction. Favourable indicators, such as political stability, strong economic growth, extensive international economic integration, success in COVID-19 containment efforts, and the improved business climate are all expected to create additional opportunities for Vietnam to attract greater FDI in the coming months, according to experts. They pointed out that Vietnam represents an attractive destination in terms of the fourth wave of FDI attraction amid increasingly fierce competition regarding FDI attraction among countries globally. Economists advised local firms to become more proactive and creative while striving to improve the overall quality of human resources in order to take full advantage of opportunities from the fourth wave of FDI. UK emerges as 15th largest foreign investor in Vietnam The United Kingdom has so far invested in 424 projects in Vietnam with a combined capital of US$3.9 billion, ranking 15th out of 140 countries and territories globally that have injected investment into the Southeast Asian nation, according to the Ministry of Planning and Investment (MPI). These figures were released by Do Nhat Hoang, director general of the MPI’s Foreign Investment Agency, during a recent trade promotion conference aimed at attracting more UK businesses to invest in the Vietnamese market. Among the UK – invested projects, the processing and manufacturing sectors take the lead with 118 projects worth US$1.5 million, followed by the real estate, mining, wholesale and retail sectors. There are bright prospects ahead in terms of attracting additional investment from the UK, especially following the signing of a free trade agreement between the two countries (UKVFTA) in December 2020, Hoang said. In addition, in his opinion, the Vietnamese market represents an attractive destination for several foreign investors due to political stability, high economic growth, competitive production costs, an abundance of human resources, extensive international economic integration, incentive investment policies, along with a strategic geographical location within Southeast Asia. At present, Vietnam is currently calling for increasing investment in sectors such as renewable energy, the processing & manufacturing industries, biotechnology, and electronics. Most notably, the country is keen to co-operate with the UK in the field of electronics. It now ranks 12th in the world and third in ASEAN in terms of exporting electronic equipment, with 95% of production value coming from foreign-invested firms. To facilitate greater foreign investment, especially investment from the UK, Hoang said Vietnam has developed a human resource training scheme to meet the various demands of investors, while improving the local business climate, fine-tuning legal framework, and hosting a number of seminars aimed at strengthening trade exchanges between both domestic and foreign firms. GVR looks to boost industrial zone development The Viet Nam Rubber Group (GVR) targets to earn revenue and profit of VND26.9 trillion (US$1.17 billion) and VND4.56 trillion this year, respectively. It plans to spend VND2.4 trillion to pay 2020's dividend at a rate of 6 per cent. This year, the company plans to spend about VND2.63 trillion on investment, of which about VND578 billion is invested in basic construction projects and the remaining VND2.05 trillion is for long-term financial investment. The information was released at the annual general meeting of shareholders held late June. Responding to shareholders about the roadmap for land conversion in the near future, the management board said that GVR’s main area in the 2021-2025 period will be industrial zone development, which is expected to bring more benefits and profits for the group. GVR will also continue the traditional business of exploiting and selling rubber latex and processing and manufacturing industrial wood products. In the long term, the conversion of rubber plantation land into industrial parks can help GVR become one of the largest industrial developers in the Southern region besides Becamex, Tin Nghia, Sonadezi and VSIP. Speaking with shareholders about this new segment, the management board said that the advantage of GVR was owning an abundant rubber land fund, mainly in the provinces of Dong Nai and Binh Duong, while the land fund for industrial parks in these areas is inadequate. It is estimated that the area for lease of industrial land is expected to achieve a 5-year annual compound growth rate (CAGR) of 17 per cent, while the current main business of GVR - rubber latex production - only achieves a 5-year CAGR of 3.6 per cent. GVR will also sell about 2,686 hectares of industrial land in the next five years, an increase of 76 per cent compared to the total sales of industrial land in the 2016-2020 period. By the end of 2020, GVR had managed a domestic rubber area of roughly 87,000 hectares. Last year, the industrial zone segment contributes VND1.52 trillion in revenue and VND821 billion in profit. HCM City to build 668-ha industrial park in Binh Chanh HCM City authorities have proposed the construction of a “highly competitive” Pham Van Hai Industrial Park (IP) covering 668 hectares in Binh Chanh District as part of a master IP plan until 2025. Under the proposal, the 668ha area (which was previously planned for 330ha only) would form a centralised IP and replace three other planned IPs, including the 200ha Bau Dung and 175ha Phuoc Hiep in Cu Chi District and the 300ha Xuan Thoi Thuong in Hoc Mon District. The three IPs were approved in 2008 but have not been implemented due to a lack of investors, and the plan for land acquisition and compensation has not been mapped out. In 2018 the city received approval to convert 668 hectares in Pham Van Hai Commune into industrial land. However, the land allocated for construction of Pham Van Hai IP remains agricultural land, which is now managed and used by the HCM City Plants Company. The area covered with alum soil is only useful for short-term crops with high alum tolerance like sugarcane, cassava, bananas and production forests, as well as industrial crops such as rubber, tea plants, and hybrid acacia and cajuput trees. Because of the low land-use efficiency and economic value, continued cultivation would not be commensurate with the land value of the area. Pham Van Hai IP will focus on science and technology, start-ups, and the supporting industry, according to the city’s People’s Committee. The Pham Van Hai IP is expected to attract more investors, especially those in the hi-tech, electronics and mechanics fields and supporting industry, and become a highly competitive and qualified industrial park. The new IP will have convenient traffic connections and infrastructure and will be accessible to main roads such as Highway 1A, HCM City – Trung Luong Highway and the Ring Road 3, which crosses the industrial park and connects with the Mekong Delta province of Long An. According to Vo Van Hoan, vice chairman of the People’s Committee, total industrial land of 7,000 ha have been allocated for HCM City. Four out of 23 IPs have not been implemented under the master IP plan, including the three that will be replaced. Long-delayed IP projects have seriously affected residents of Cu Chi and Hoc Mon districts. According to Hoc Mon District authorities, more than 2,000 households living within these projects’ borders have been affected. In meetings with voters, residents of Cu Chi and Hoc Mon districts have constantly asked the city authorities to remove the planning of these delayed IPs. According to the master plan for IP development by 2025, the city is shifting its economic structure towards services, industry and urban construction, focusing on high-tech industries and services. It will make existing zones green and clean and build new hi-tech zones for supply industries, with priority given to current investors and industry 4.0 technologies. An urbanisation rate of 80-90 per cent is expected by 2030. Accordingly, the city will restrict the use of land for agricultural cultivation. HCM City has 17 EPZs and IPs with a combined area of more than 2,570ha. Companies aware of psychological effects of work from home, focus on work-life balance The staff at Vero, a PR agency in HCM City, thought the new creative director was fun as he rapped at his welcome party. They had thought the party would be boring since due to COVID-19 everyone was working from home, but it turned out to be exciting. Ivy Nhi Chau, media engagement lead, possibly spoke for everyone when she said: “Everything was normal like it used to be in office. The only oddity about the event was that it was online.” Vero is one of many companies in the city that have switched to working from home amid the pandemic since the beginning of June. Based on the nature of work, some have half of their staff coming into office while others allow everyone to work from home. In fact, working from home has been common since the COVID-19 pandemic first hit last year, but after the fourth and latest wave brought the Delta variant of the virus, it has become more common. It is almost a month since people stopped going to office. With people increasingly cooped up at home, managers are trying to help workers achieve work-life balance. Vu Quan Nguyen Masse, brand and culture director of Vero, told Viet Nam News: “Vero also has offices in Thailand, Indonesia, and Myanmar, so we have been able to share our experiences and tips from each office about work-from-home (WFH) policies. “Since the first outbreak, we have maintained a flexible WFH policy that allows any team member to work remotely on any day as long as they arrange things with their team. “So when the virus returned to HCM City, we were prepared for it. Our efforts this time have focused on ways to keep the office spirit strong.” He cited the example of his company recently organising an online team lunch where it sent healthy food to employees’ homes, and all of them joined an online chat and had some fun activities. “Our new creative director showed off his rapping skills, several of us spoke about our favourite entertainment, and we had a lively competitive pub quiz. Now we are preparing care packages for everyone since we have learnt that working from home for long can take a toll on people’s health.” The company has also organised eight online workshops and talks by both employees and guests, and started an internal social media account on Instagram for Vero team members across ASEAN to share moments from their lives and help everyone stay connected, he said. “For deeper care for our team’s wellness, we have an online mental health counselling programme since the end of 2020. This programme provides a fund for team members to anonymously book and consult professional psychologists and counsellors. We have also implemented an extra ‘Wellness Day Off’ so that team members can take time for themselves. “Overall, we believe that any policy which helps reduce friction in the workflow is bound to help us adapt – and even thrive – in this new style of work.” Fision Event and Communication Company helps its staff balance work and life by having online parties and also yoga classes. Nguyen Ha Thanh, its managing director, told Viet Nam News: “We actually have no WFH policy as we all know that we tend to work more at home when the gap between work and life fades as we stay all day in one place.” “The chat board is fulfilled with personal updates. We even hosted a surprise birthday party on Zoom for one of our interns with gifts, a cake and celebrations. There are employees who need to show up at office for stuff, and when that happens we stagger time slots so that the risk of direct meetings is limited.” In addition to keeping everyone positive and healthy, the company organises online yoga classes. “The class is organised three times per week. All free. We also have a SWEET ON ME scheme so that everyone can get treated to some desserts occasionally.” A bank in HCM City chooses another way to help its staff feel secure. Soon after city authorities applied circular No 15 against COVID-19 and encouraged people to work from home, the bank switched to two shifts, an employee, who asked not to name her or the bank, told Viet Nam News. She said the employees have been divided into two teams for the shifts. “Due to the nature of certain people’s work, not everyone can work from home unlike in some companies. We have to work in turns. Each employee goes to the office for one or two weeks.” In order to ensure staff convenience in case the building is quarantined, the bank decided to install cubicles with bathrooms, she said. “The situation in the city is serious, and we deeply appreciate the bank’s efforts, which make us feel more secure.” Ivy Nhi Chau said: “Working from home is not new to us any more. Since the first wave of Covid-19, my company has encouraged us to work from home at least two days a week since it understands that in a creative agency environment, freedom and flexibility can have a major effect on the quality of people’s work and their overall happiness. It is something I appreciate a lot.” "The staff are all used to collaborating and holding meetings online via Microsoft Teams or Zoom, and everyone is aware of their tasks, and so things go smoothly," she said. “It also helps that our culture team takes time to talk to each of us, reminds us to care for our well-being, and creates some fun online activities to help us stay connected.” More than VND31.8 trillion raised through G-bond auctions in June The State Treasury mobilised more than VND31.8 trillion (US$1.38 billion) via 18 government bond (G-bond) auctions on the Ha Noi Stock Exchange (HNX) in June, down 28 per cent month-on-month. Interest rates for bonds of seven, 10, 15, and 20 years decreased by 0.01-0.09 per cent annually, while those for bonds with 30-year maturity remained unchanged. In the first six months of 2021, the State Treasury raised VND141.493 trillion through G-bonds, equivalent to 40.4 per cent of the yearly target. On the secondary market, bonds worth more than VND270.9 trillion were sold in June. The average trading value reached VND12.314 trillion per session, up 16.7 per cent on-month. The total volume traded via repos made up 28.73 per cent of the total. Foreign investors’ purchases accounted for 1.54 per cent of the total value in June, with net sales exceeding VND3.71 trillion. Amost no change under new trading regulations at HoSE The Ho Chi Minh Stock Exchange (HOSE)'s Decision 352/QD-SGDHCM on securities trading regulations at HOSE officially took effect from Monday. Under the new decision, HOSE adopted almost no changes to trading regulations on HOSE. The price fluctuation range during a trading day for stocks, closed-end fund certificates and ETF certificates is regulated to be 7 per cent compared to the reference price, the same as previously. The price fluctuation range for stocks, closed-end fund certificates, and ETF certificates on the first trading day is 20 per cent compared to the reference price on the first trading day. When paying dividends or a bonus in treasury shares to existing shareholders, the price fluctuation range of stocks and closed fund certificates during the ex-dividend trading day is 20 per cent compared to the reference price. When offering treasury shares to existing shareholders, the price fluctuation range will not be adjusted on the ex-dividend date. The even-lot transaction for order matching method is 100 shares, closed-end fund certificates, ETF certificates or warrants. Each even-lot trading order must not exceed a maximum volume of 500,000 shares, closed-end fund certificates and ETF certificates warrants. The only adjustment under the new regulation is that it further stipulates the correction and cancellation of orders for order matching transactions. In case of necessity, HOSE has the right to request a member securities company to suspend the correction or cancellation of orders after being approved by the State Securities Commission. From Monday, HoSE put the new transaction system provided by FPT Corporation into official operation. The new system is expected to handle 3-5 million orders per day. Long haul barriers predicted for exports The global demand has seen signs of recovery in recent weeks, helping Vietnam’s export activities record growth of 28.4 per cent on-year – however a lack of raw materials, increasing logistics, and pandemic-related risks in factories remain a concern for such export activities for the foreseeable future. In the first six months of 2021, the total turnover import and export of goods reached $316.73 billion, up 32.2 per cent on-year, of which export reached $157.63 billion, up 28.4 per cent. Regarding the export market so far this year, the United States is Vietnam’s largest export market with a turnover of $44.9 billion, up 42.6 per cent on-year, following China with $24.4 billion, up 24 per cent. The EU market and Southeast Asia reached $19.3 billion and $13.8 billion, up 17.4 and 26 per cent, respectively. With its 70 per cent of population living on agricultural activities, Vietnam saw the total export turnover of the agricultural sector in the first six months of 2021 exceed the set plan, achieving a high result of $24.23 billion, up 28.2 per cent on year, of which the main agricultural products hit $10.40 billion, up 13.3 per cent, and seafood attained $4.05 billion, up 12.5 per cent. Phan Thi Thanh Xuan, general secretary of the Vietnam Leather, Footwear and Handbag Association (Lefaso), said the traditional export markets of Vietnamese leather and footwear items have enjoyed mass vaccination programmes leading to consumer demand recovery. By the end of the second quarter, orders in the industry’s traditional export markets of the US and EU increased by about 10 per cent. Footwear and handbag exports earned $10.4 billion over the period and are included in the 25 items with export turnover of over $1 billion, accounting for 88.9 per cent of total export turnover. Meanwhile, Hoang Ngoc Anh, general secretary of the Vietnam Textile and Apparel Association, said that the industry is still greatly affected by general trends of instability of orders due to the pandemic. Currently, textile production is recovering positively and export turnover is increasing continuously and likely to reach the $39 billion target for 2021 because enterprises enjoyed many orders. However, Ngoc Anh added that the biggest difficulty for businesses is the lack of high-quality workers and the pressures on pandemic prevention in the locality and factories due to the risk of community infection. At last week meeting with members, Xuan of Lefaso shared that leather, footwear, and textiles have many similarities and, therefore, the same obstacles during pandemic restrictions. Currently, businesses have no shortage of orders, but processing prices are forced to decrease while input costs are increased greatly. “With the current complicated situation, vaccines are the only long-term solution to save businesses. Businesses are most looking forward to the time when the vaccine arrives in Vietnam on a larger scale,” Xuan said An SSI Securities Corporation seafood report pointed out that thanks to the recovery in exports, most of the leading companies in the seafood industry had strong revenue growth, but net profits fell due to faster increases in input material costs than average selling prices, and higher logistics costs in the first quarter of 2021. It added that when vaccination programmes were rolled out in the EU and North America, purchasing power recovered strongly. However, due to the increase in demand for goods, the request for shipping by sea also continues to increase and the freight rate has remained at a high level since the beginning of the year, according to Ministry of Industry and Trade. In the first six months of 2021 the trade deficit was $1.47 billion, mainly due to the import of input materials for production of export goods and domestic consumption. The deficit reflects Vietnam’s high dependence on imported inputs in processing and manufacturing. China was the largest supplier to Vietnam followed by South Korea, ASEAN, Japan, the European Union, and the US. The dependence on imported raw materials from a number of markets has placed a heavy burden on enterprises. For instance, domestic steel prices increasing sharply by nearly 50 per cent are the result of dependence on imported raw materials. Along with iron and steel, other industries such as electronics, textiles and footwear, and agricultural have been less active in sourcing raw materials. Shortages derailing top tech retailers The prolonged shortage of electronic components across the globe is growing more pronounced as leading local technology retailers like Mobile World and FPT Shop have experienced depletion in supply. Phong explained that to cope with the adversity, the retailer had consistently stored goods to serve the work-from-home demand as the pandemic expanded. However, how to contrive a supply of goods from the third quarter is now questionable as stockpiles have been reducing. Nguyen The Kha, managing director of FPT Shop’s Mobile Telecom Department, admitted that preparing goods for sale during the third quarter is expected to be tricky because its inventory as of late May was enough for operations for only 30-45 days before new orders landed. For smaller retailers, including those selling parallel imports, the adversity is similar. Talking to VIR, Dang Quoc Tuan, director of iShop Vietnam – which specialises in Apple’s parallel imports – said that it has experienced depletion since the first quarter this year. “The supply of Apple items in Singapore and Hong Kong are reducing, so it has been hard to purchase enough goods,” said Tuan. “Additionally, the local interest in Apple products has fallen away due to COVID-19. For old Apple models, we have carried out many sales promotions but failed to lure in customers like in previous years.” The shortage of smartphones and laptop items have also ballooned prices significantly. In a letter sent to partners in Vietnam, Taiwan-based laptop maker Acer noted that its plan of growing laptop prices will take place imminently due to the enlarging costs for manufacturing spare parts. To date, the local prices of some Acer laptop models are up nearly 5-10 per cent, to as much as $1,000. Taiwanese laptop rival Asus recently published a scheme of increasing laptop prices by 5-10 per cent from the second quarter also, for the same reasons. Meanwhile, American giant Dell has yet to reveal any similar plan during this time. However, its current laptop products are on trade at prices increasing by up to $100 against last year. “Local consumers will experience the soaring costs for laptops as of the end of this year,” said Nguyen Ngoc Dat, managing director of the Di Dong Viet chain. “These laptop prices depend on the speed of recovery in manufacturing hubs across the globe.” Nguyen Lac Huy from the Communications Department of CellphoneS said that goods have been preferred for export to the United States and the European Union where working from home had been mostly compulsory for a long period of time. The situation has therefore impacted the shipment of goods to Vietnam. Marco Förster, international business advisory manager from Dezan Shira & Associates, believed that the shortage of laptop and smartphone products has more to do with the global semiconductor supply crunch and only partly with the current outbreak in Vietnam. “With plenty of nations implementing stricter social distancing measures amidst the spread of the health crisis, employers and also educational institutions are forced to send their staff and students home,” said Förster. “This has caused the rising domestic demand for laptops and electronic equipment.” The serious shortage of semiconductors has led electronics manufacturers to cut production and lay off workers. Apple’s latest iPhone came with month-long delays and similarly, the release of Samsung’s flagship Galaxy model has been delayed to Q4 of this year. Förster claimed that the shortage will likely follow well through 2022 as Taiwan’s TSMC, which is controlling close to 54 per cent of the foundry market since the third quarter of 2020, cannot find a short-term solution to manage the bottleneck caused by the semiconductor product shortage. It is expected that mass vaccination efforts during the pandemic will eventually lead to recovery in supply of such electronic items. With Intel increasing its Vietnam chip investment by nearly 50 per cent earlier this year and Taiwanese Apple supplier Foxconn eyeing a $700 million expansion of its operations in the country, Vietnam hopes to find itself amidst the web of tech-supply chains. “These facilities are growing not just as a countermeasure to the current chip crunch but also as an act to diversify supply chains out of China. If slow vaccinations continue to cause these facilities to run at limited capacities it will have an additional negative effect on the electronics market,” Förster stated. Market intelligence group TrendForce expected global laptop shipment for 2021 to reach 217 million units, an 8.1 per cent increase on-year. TrendForce believed that this year will likely see a relatively strong wave of device replacement demand as well as growth in emerging markets. Assuming that materialises, global smartphone production for 2021 is forecasted to increase by 9 per cent to 1.36 billion units. Vietnam’s industrial production index up 9.3% in first half of 2021 The index of industrial production (IIP) in the first six months of 2021 rose by 9.3% compared to the same the period last year, according to the Ministry of Industry and Trade. In other industrial sectors, power generation and distribution increased 8.6% while water supply and waste treatment went up 6.8%. The mining and quarrying sector declined by 6%, driven by a 10.1% decrease in crude oil and natural gas production, and a 4.4% fall in the mining of hard and brown coal. Data released by the MOIT showed strong growth in some sectors such as metal production (up 37%), motor vehicle manufacturing (up 33.1%), manufacturing of equipment and machinery (up 17.2%), and leather production (up 12.9%). Other notable sectors with solid increases in their IIP included computers, electronic and optical devices, and paper and electric devices. In June alone, industrial production climbed by 0.5% as against the previous month and 6.8% compared to the same month in 2020. Economic growth inspired by global recovery and effective policies Despite lower-than-expected economic growth for the first six months of 2021, the government has decided not to adjust its growth target for the entire year, while pinning high hopes on an global economic recovery given the domestic economy remaining quite open to international trade, and also on its pro-business policies inspiring the business community. The Vietnamese economy has bounced back visibly from 4.48% in the first three months of the year to 6.61% in the second quarter. The economy grew 5.64% as compared to merely 1.81% in the corresponding period last year. Last November, the National Assembly (NA) set a target of 6% of economic growth for the whole year, while the government did the same in January 1. Prime Minister Pham Minh Chinh has ordered that all localities must devise their own economic growth scenarios for the last half of the year, based on the freshly-announced scenarios of the Ministry of Planning and Investment (MPI). The MPI last week reported to government its two economic growth scenarios for the last six months of the year. In the first scenario, so as to reach the growth goal of 6% for this year, the economy needs to grow 6.2% in the third quarter, and 6.5% in the fourth quarter. In the second scenario, in order to climb by 6.5% in 2021, the economy needs to ascend 7% in the third quarter, and 7.5% in the fourth quarter. This would mean that there is no plan to adjust the economic growth rate for the entire year, despite the numerous difficulties ahead, with the speed of vaccination remaining slow. "All efforts must be made to accomplish the goals set by the NA and the government. The government is directing all ministries, agencies, and localities to drastically implement measures and tasks carved out in the resolutions of the Party, the NA, and the government," said a government report on Vietnam's economy recently sent to the NA's Standing Committee. The MPI reported that in the first six months of this year 2021, the agro-forestry-fishery sector increased 4.11% year-on-year, remaining a bright spot on the economic growth picture. Meanwhile, the industrial and construction sector ascended 10.28% year-on-year, and the service sector rose 4.3%. "In addition, business activities are expected to continue facing difficulties. They need further support from the state," said MPI Minister Nguyen Chi Dung. "The trend of businesses that have withdrawn from the market will likely stay at a relatively high level." In a specific case, state-owned Vietnam National Coal and Mineral Industries Group (Vinacomin) reported that in the first half of this year, its total revenue is estimated to have been VND64.61 trillion (US$2.8 billion), down 2% year-on-year. Of which, revenue from coal was VND37 trillion (US$1.6 billion), down 9%, while production and consumption of natural minerals totalled about VND7.99 trillion (US$347.4 million) - up 38%; production and sale of electricity hit VND7 trillion (US$304.3 million) - down 5%; and consumption of coal hit 22.53 million tonnes, down 5% year-on-year. The General Statistics Office (GSO) announced that in the first six months of 2021, 70,200 enterprises nationwide halted operations and are awaiting disbandment, up 24.9% as compared to the same period last year. On average, each month witnessed about 11,700 businesses leaving the market. "However, the momentum for economic growth in 2021 will continue coming from the industrial-construction and the service sector, especially from processing and manufacturing industries, an increase in investment and expansion of trade activities through effectively taking advantage of free trade agreements that Vietnam have signed with foreign partners," Minister Dung said. The government hopes its policies in favour of enterprise will help businesses strengthen their confidence and performance. "In the context of COVID-19 becoming increasingly complicated, Vietnam is the only economy in the globe that have been raised to a 'positive' rating in terms of its economic outlook by the three global rating firms of Moody's, S&P and Fitch," Minister Dung said. The World Bank Group recently ago enacted its Global Economic Prospects report for June 2021, forecasting that Vietnam's economy will grow at 6.6% in 2021 and 6.5% next year, relatively high given the pandemic is now raging in the economy. "Vietnam has been successful in containing COVID-19 and has benefitted from fiscal measures supporting public investment and robust foreign direct investment (FDI) inflows," the report read. "Among the smaller ASEAN countries, only Vietnam has seen output surpassing pre-pandemic levels. Mobility around retail areas remains subdued, reflecting the continued spread of the virus amid the slow progress of vaccination. Consumer spending has therefore been lagging, but industrial output has mostly recovered, helped by a quick rebound in regional goods exports." At present, Vietnam's economic growth relies on the recovery of the global economy as its GDP value is equal to 63% of its total export-import turnover. Thus, a positive impact from new demand-stimulus bailouts in big economies in the world who are Vietnam's trade partners is hoped to push up demand for Vietnam's goods. Additional fiscal solutions announced in some nations in the past few months will add to the overall support this year, including in the US, Japan, Germany, Canada, and India. Many nations have also extended their current income support schemes, or are planning for their reintroduction, as in Brazil. In Europe, spending of €2.018 trillion (US$2.45 trillion) from the Next Generation recovery fund is due to begin later in 2021, but the total discretionary fiscal stimulus this year appears likely to be relatively mild, at around 1% of GDP in the euro area, despite considerable capacity. The extent of fiscal support in the US for 2021 is set to be remarkably bigger than in many other nations. The Consolidated Appropriations Act passed in December 2020 contained temporary solutions valued at US$900 billion or 4% of the US' GDP. It is largely centred on emergency assistance for households and the unemployed. In March, US President Joe Biden signed the US$1.9 trillion American Rescue Plan Act into law, sending much-needed aid to millions of Americans still struggling due to the COVID-19 pandemic. The American Rescue Plan provided US$1,400 direct payments to individuals making up to US$75,000 annually, US$350 billion in aid to state and local governments and $14 billion for vaccine distribution. The bill also provides US$130 billion to elementary, middle and high schools to assist with their safe reopening. The government last week enacted a resolution on enacting 12 policies worth over VND26 trillion (US$1.13 billion) to support employees and employees vulnerable to the COVID-19 pandemic. This is the second support package after the first, valued at VND62 trillion (US$2.69 billion), was released in April 2020. It is expected tens of millions of people will benefit from the second package. Deputy Prime Minister Le Minh Khai last week inked and enacted the government's hallmark Resolution No.63/NQ-CP on the key tasks and solutions for boosting economic growth, public investment disbursement, and sustainable exports in the remaining months of 2021 and in early 2022. "Economic growth in the first months of this year has failed to reach the set target, with slow disbursement of public investment, while the trade balance is tending to shift to a deficit, with rising pressure in terms of inflation. Production and business activities in many sectors have been seriously affected, with the life of many people facing difficulty, especially in pandemic-hit areas and amongst labourers in industrial zones affected by the pandemic," read the resolution. The resolution hopes for bigger efforts to accomplish all goals set by the NA and the government, pushing back COVID-19, and completing vaccination as soon as possible. Vietnam, ASEAN markets offer huge opportunities for European firms Vietnam, Malaysia and Thailand are the most attractive expansion destinations for European corporates, according to a recent survey conducted by Standard Chartered Bank. The survey said 88 percent of respondents expect business to go up in the next 12 months, on drivers such as a growing consumer market; free trade agreements; and a reliable supply base. In terms of target markets within ASEAN, 60 percent of survey respondents are focusing on expanding in Vietnam to capture sales and production opportunities, followed by Malaysia (53 percent) and Thailand (48 percent). The survey said that the Europe-AESEAN corridor could enable growth in six high-potential sectors, including pharmaceuticals production, consumption of consumer goods, automotive industry, green and digital solutions, renewable and clean energy and e-commerce. The optimistic outlook came even as 75 percent of respondents cited their understanding of regional regulations, payments and infrastructure as a significant medium-term barrier. Robert Newell, managing director for Europe global corporates at Standard Chartered Bank said that the ASEAN markets continue to offer huge opportunities for European companies, both for those looking to diversify and expand their investment and trade activities, and those who are well aware of the deep technological expertise and significant consumer base across the markets. Vietnam’s economic development drivers are still maintained despite of severe impacts of the COVID-19 pandemic. The country’s General Statistics Office announced that Vietnam’s GDP increased by 5.64 percent in the first six months of 2021. Agricultural sector strengthens deep processing to increase added value Vietnam is the 17th world’s largest agro-forestry-fishery exporter. However, because of raw export, most Vietnamese goods are of low value. For instance, although export turnover reached US$41.25 billion last year, it merely accounted for less than 2 percent of the import value of agro-forestry-fishery products of the world. The Ministry of Agriculture and Rural Development also confirmed that this development process still has many uncertainties with unsustainable growth. It has not met the requirements of centralized, large-scale, and high-standard commodity production from the international market. The agro-forestry-fishery processing industry has not developed strongly yet, especially in the preservation, deep processing, and supporting industry. Post-harvest losses remain high. It has not yet created a solid production link in the value chain to promote the mechanization and application of high technology to reduce intermediary costs to increase added value. Currently, the whole country has about 7,500 enterprises that process agricultural products on an industrial scale associated with export and thousands of small processing establishments and households. It is estimated that these economic sectors are capable of processing, preliminarily processing, and preserving about 120 million tons of materials of agro-forestry-fishery products each year. However, the Agro Processing and Market Development Authority under the MARD said that only 20-30 percent of enterprises and establishments export through deep processing. For instance, Vietnamese coffee is exported to more than 80 markets around the globe, with a total annual output of 11.6 million-11.8 million tons, a turnover of about $2.6 billion-$2.8 billion. However, the value remains at a low level because of the large proportion of coffee beans. Mr. Le Minh Hoan, Minister of the MARD, said that agro-processing activities had received special attention from the Government, enterprises, and society. Therefore, the agricultural sector must open more ways to export agricultural products, determine a development direction, create added value, and solve the problem of excess supply to reduce pressure on farmers, who often face the situation of bumper crops, low prices. Lately, the Prime Minister issued Directive No.25/CT-TTg on tasks and solutions to develop the agro-forestry-fishery processing industry and mechanize agricultural production. The domestic deep-processing ability of agricultural products still has great potential, so the problem here is to create a stable environment and policies to stimulate investment capital flows. The State and enterprises should join hands to connect, expand the market, and research technology for post-harvest processing and preservation to improve the value of agricultural products. It is essential to establish a market mindset to adapt to the new normal market context, build logistics infrastructure, cold storage, and storage, and make the planning of raw material growing areas attached with processing in localities. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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Farm produce exports: specialties reach new markets15:44 Despite Covid-19, Vietnam’s farm produce exports still achieved impressive results, especially litchis.  The H1 report of the agriculture ministry showed that despite the complicated developments of the Covid-19 pandemic which have adversely affected socio-economic life, caused global supply disruptions and directly affected production and export, Vietnam’s farm produce exports still exceeded the plan. In H1, Vietnam’s exported $24.23 billion worth of farm produce, an increase of 28.2 percent over the same period 2020. Of this, the export of major produce brought turnover of $10.4 billion, up by 13.3 percent, seafood exports $4.05 billion, forestry products $8.7 billion, up by 61.5 percent. China, the US, Japan and South Korea were the major biggest consumers of Vietnam’s farm produce. The US has become the biggest client of Vietnam, consuming $6.7 billion worth of products, up by 60 percent, or 27.9 percent of Vietnam’s farm produce export value, followed by China, consuming $.475 billion, up by 32.1 percent, or 19.6 percent of total export value. The Ministry of Agriculture and Rural Development (MARD) said Vietnam’s farm produce exports increased thanks to the efforts to open new markets such as Peru and Australia, and the proactive research, prediction and exploitation of FTAs. The cooperation with embassies and commercial affairs divisions in key target markets of Japan, South Korea, the US, EU and China to exchange and provide information was also helpful in defining timely solutions. Relevant agencies created most favorable conditions for Chinese businesses to enter Vietnam, and negotiate with Vietnamese businesses and collect litchis. They also negotiated with other countries to connect and promote fruit and seafood exports to China, Thailand the EU. Despite Covid-19 and restricted travel, Hai Duong and Bac Giang still smoothly exported litchis to China. Their litchi specialties were welcomed in the choosy markets of Japan, Australia, Singapore and the EU. In Japan, Vietnam’s litchis were displayed at over 300 supermarket shelves at m prices of VND350,000-500,000 per kilogram. The first consignment of litchis to Japan sold out in several hours. Vietnam’s litchis were the topic of discussion at many meetings with Japanese partners this year. The information about litchis is regularly updated on the news websites of the Japanese community in Japan, according to Vu Hong Nam, Japanese Ambassador to Japan, who attended an online conference on Bac Giang’s litchis consumption in early June. Nam then estimated that 1,000 tons of fresh litchis would be exported to Japan this crop.
At a recent auction in Perth City of Australia, one box of fresh litchis was sold at 3,000 AUD, or VND52 million. Vietnam’s litchis were also sold at high prices of up to VND500,000 per kilogram, in some other choosy markets in Europe, such as France, Germany and the Netherlands. Domestic market MARD reported that products such as litchis, pangasius (catfish), fish farmed in reservoirs and cooperatives’ safe aquatic products were put on sale at large supermarket chains such as Big C, Aeon, Hapro and Vinmart. Farm produce have also been displayed in a new market – e-commerce websites, including Alibaba, Amazon, Sendo, Voso, Shopee and Postmart. Speaking at a conference on digital transformation in agriculture and rural development on June 18, Chu Quang Hao from Vietnam Post said there have been ‘big changes’ on voso.vn (Viettel Post) postmart.vn (VnPost) The number of people entering the trading floor has increased sharply, from several thousands of visitors a day to hundreds of thousands. Since June 1, there have been 4.6 million visits to learn about litchis and 36.000-37,000 orders have been placed each day. “Litchis sell very well in Tay Ninh. The supply cannot satisfy the demand sometimes,” Hao said, adding that about 8,000 tons of litchis will be consumed via e-commerce platforms this year. The figure is just 4-5 percent of total litchi output, but it is unprecedentedly high. After litchis, Son La’s mango and plum have also been brought to e-commerce sites. Localities have been promoting online sale in order to boost sales. MARD Minister Le Minh Hoan said the story about litchis should prompt enterprises and farmers to think of a new development and farm produce consumption for the time to come. He went on to say that the biggest lesson from the litchi crop is not how many tons of litchis have been sold, but which model Vietnam should apply to obtain sustainable value in farm produce consumption. This is a new way of thinking – activating a system of exchanging information, and connecting data about demand and supply to boost distribution. This will drive farmers and enterprises to a transparent and smart agriculture. Producers will understand the market demand about output, standards and distribution methods. And consumers will know the origin of products, and distributors and retailers know the status of material growing areas at different moments. “We don’t wait for the harvesting time to calculate how we will distribute farm produce. We can do that and draw scenarios on distribution based on predictions and information,” he said. VNN/Tam An |
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VIETNAM BUSINESS NEWS JULY 815:59 Steering committee set up to ensure goods supply for HCM City, southern provinces Minister of Industry and Trade Nguyen Hong Dien requested the establishment of a steering committee to ensure sufficient essential goods supply for Ho Chi Minh City and other localities in the south as the total caseload in the city topped 8,000 on July 7. The steering committee is headed by Deputy Minister of Industry and Trade Do Thang Hai, and eight members are leaders of relevant departments. It is assigned to regularly contact the People's Committees, the Departments of Industry and Trade and related agencies of HCM City and southern provinces hit by the pandemic for coordinating the distribution of essential goods and services as well as adopting solutions to avoid disruption of essential goods and services supply. The committee will connect with manufacturers, distributors and retailers to ensure sufficient of goods for local people in any circumstance. Online trading would also be supported. The committee will coordinate with relevant forces, including the police, to assure an uninterrupted flow of goods between HCM City and other localities. Dien said that localities could consider reopening traditional markets but the use of coupons should be applied. The market management force is requested to work with related agencies to facilitate the circulation of goods and prevent overcharging and the sale of low-quality goods. The Electricity Regulatory Authority and the Vietnam Electricity Group would take charge of regulating electricity to ensure supply for medical facilities, quarantine centres in HCM City and other southern localities./. Vietnam Airlines signs 173.7-mln-USD credit deal with three banks National flag carrier Vietnam Airlines on July 7 signed a credit deal – worth total of 4 trillion VND (173.7 million USD) – with three commercial banks, which are expected to weather the financial impact of the COVID-19 pandemic. Under the agreement, the Southeast Asia Commercial Joint Stock Bank (SeABank), the Vietnam Maritime Commercial Joint Stock Bank (MSB) and the Saigon - Hanoi Commercial Joint Stock Bank (SHB) are committed to providing the carrier with zero-interest loans refinanced by the State Bank of Vietnam. Despite the recovery of the domestic aviation market, Vietnam Airlines said, it has lost more than 60 percent of revenue due to travel restrictions and border closures induced by COVID-19. Last year, the airline posted a revenue of over 40.61 trillion VND, down 59 percent from 2019. The carrier operated around 96,500 flights during the year, a drop of more than 48 percent as compared to the previous year. It served 14.23 million passengers and handled nearly 195,000 tonnes of cargo, decreases of 51 percent and 47 percent, respectively. Vietnam Airlines, which is 86.19 owned by the government, is taking necessary steps to issue 8 trillion VND worth of ordinary shares to existing shareholders by the end of third quarter of this year./. Vietnam now world’s second largest fuel pellet exporter
Vietnam exported around 3.2 million tonnes of fuel pellets of various types last year, making it the world’s second largest exporter of the products, according to the General Department of Customs. The Vietnam Timber and Forest Product Association (VIFOREST) reported that Vietnamese pellets were mostly exported to Japan and the Republic of Korea to provide input for thermal power production. Pellets are biomass fuel generally made from wood wastes, such as wood shavings, sawdust, and logging residues; and agricultural wastes, for example, rice husks, corn stover, sugarcane bagasse, and coffee pulps. The country’s shipment of pellets rocketed to 3.2 million tonnes last year from just 175.5 tonnes in 2013. The export revenue increased 15.3 fold from nearly 23 million USD in 2013 to 351 million USD in 2020. Vietnam has about 80 pellet factories and production facilities, mostly in the southeastern and northeastern regions, with combined capacity of close to 4.5 million tonnes per year. The VIFOREST forecast the global demand for pellets is likely to spur about 250 percent over the next decade, to 36 million tonnes in 2030./. Banks report high profit in H1 despite COVID-19 Many banks have reported high profit in the first half of 2021 despite impacts of COVID-19 pandemic. Tien Phong Commercial Bank (TPBank) announced that its revenue surged 27.74 percent over the same period last year to over 6.23 trillion VND (270.42 million USD), with pre-tax profit reaching over 3 trillion VND (130.22 million VND), up 47.8 percent year on year. The bank also enjoyed good signs in many other business indicators, with total assets hitting more than 242 trillion VND, close to its target of 250 trillion VND for the whole year. Meanwhile, the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) posted a 74 percent rise in pre-tax profit to about 13 trillion VND. With the result, the bank has completed three fourths of its yearly target of 16.8 trillion VND in profit. The SSI Securities on July 5 reported that the majority of banks under its watchlist enjoyed high profit, including MSB, ACB and VPB. Techcombank, BIDV, and HDB were also predicted to post positive growth in the second quarter and the first six months of 2021. In its recent report, Yuanta Securities Vietnam forecast that the credit growth of the whole sector will reach 12-13 percent this year. Earlier, experts from Viet Dragon Securities (VDSC) predicted that the banking sector will experience a period of high profit this year with growth of 27 percent despite the COVID-19 pandemic./. Ho Chi Minh City – Phu Quoc flights temporarily suspended The Ministry of Transport has approved the temporary suspension of flights between Ho Chi Minh City and Phu Quoc island city in Kien Giang province. Deputy Minister of Transport Le Anh Tuan signed a decision on the suspension of flights beginning at 0:00 on July 8 until further notice. The move came as HCM City is recording a large number of COVID-19 cases in recent weeks. "The Civil Aviation Administration of Vietnam shall notify airlines, relevant agencies and units for information and implementation; and at the same time consider and settle at the request of the airlines and the relevant State agencies on arranging special flights to transport health workers, medical supplies and equipment", the Ministry of Transport said. The Ministry of Transport tasked the Civil Aviation Administration of Vietnam to coordinate with relevant agencies and units under the People's Committee of Kien Giang province to monitor the COVID-19 situation to make adjustments to flights to/Phu Quoc Airport in a timely manner. The Ministry of Transport had previously agreed to suspend flights from HCM City's Tan Son Nhat International Airport to Ba Ria – Vung Tau, Thanh Hoa, Quang Ninh, Hai Phong, Gia Lai, Quang Binh, Nghe An, Quang Nam, and Thua Thien – Hue./. Reference exchange rate up 15 VND The State Bank of Vietnam set the daily reference exchange rate at 23,190 VND per USD on July 8, up 15 VND from the previous day. With the current trading band of +/- 3 percent, the ceiling rate applied to commercial bank during the day is 23,886 VND/USD and the floor rate 22,494 VND/USD. On the contrary, the rates listed at major commercial banks all increased. At 8:30 am, Vietcombank listed the buying rate at 22,890 VND/USD and the selling rate at 23,120 VND/USD, both up 20 VND from the rates on July 7. BIDV added 5 VND to both rates, listing the buying rate at 22,915 VND/USD and the selling rate at 23,115 VND/USD./. Bac Giang moves to improve Yen The hill chicken trademark Yen The district in northern Bac Giang province provides the market with around 12-14 million hill chickens worth 1.5 trillion VND every year, turning free-range chicken farming into sustainable livelihoods for local people. Local authorities have focused on strengthening trade promotion activities and building the “Ga doi Yen The” (Yen The hill chicken) brand name, which has been protected and recognised in Laos, China, and Singapore. In the domestic market, the hill chickens have become popular among customers in many cities and provinces nationwide. To boost consumption, Bac Giang targets both domestic and export markets but top priority is given to domestic markets, especially in Hanoi and major cities. It is also looking to export Yen The hill chickens to ASEAN and China in the near future. The district will also continue restructuring chicken varieties in farming to improve quality, towards making inroads into more difficult markets such as Japan and Europe. According to the Secretary of the district Party Committee Bui The Chung, the local authority will pay due regard to promoting its potential and strengths and taking measures to improve quality, contributing to boosting the incomes of local people. Under its agricultural production development strategy to 2030 and on the basis of restructuring agricultural production towards improving the quality and value of products, including Yen The hill chickens, the district has made efforts to promote production links and renovate breeding methods. It also adopted mechanisms to encourage the development of enterprises, cooperatives, and cooperative groups in husbandry, thus building agricultural production value chains. The district authority has created the necessary conditions for households, businesses, cooperatives, and cooperative groups to access credit for livestock production and processing and to form closed chains in producing, processing, and marketing Yen The hill chicken products. In the future, Yen The district will promote the transfer of scientific and technical advances in raising and processing Yen The hill chickens in order to improve quality, ensure food safety and hygiene, and increase competitiveness. Priority will be given to applying and transferring new, advanced high technologies in raising and processing hill chickens, expanding hill chicken production areas in accordance with VietGAP standards, and forming safe hill chicken production areas. The district will also encourage businesses, organisations, and individuals to invest in developing breeding and processing facilities in order to diversify processed products. The locality has paid heed to introducing and promoting the product in parallel with expanding the market through effectively implementing policies and mechanisms on supporting the protection of intellectual property rights, trademark protection, geographical indications, and product brands for products made from Yen The hill chicken. It has also built a mechanism to support the development of the Yen The hill chicken brand to meet the standards of the national “One Commune, One Product” (OCOP) programme. Yen The is a mountainous district in Bac Giang province with an area of more than 300 sq km, mainly hills and semi-mountainous land suitable for agricultural and forestry development in combination with livestock. The locality quickly identified hill chickens as its main livestock group, and planned a high-quality, large-scale production area. Yen The hill chicken was granted a certificate of trademark registration by the National Office of Intellectual Property at the Ministry of Science and Technology in 2011. It was the first livestock product in Vietnam to be provided with trademark and monopoly protection. The district's chicken products have continuously won prestigious prizes since 2011, and were among four Vietnamese products to receive “The best products and food of Southeast Asia-ASEAN” Cup in 2013. To sustainably maintain and develop products, the district has issued and implemented projects to support their sustainable development in line with VietGAP standards in the 2013-2015 and 2016-2020 periods. The district’s chicken numbers are maintained at 4-4.5 million heads, primarily in Tien Thang, Canh Nau, Tam Tien, and Dong Vuong communes. The locality has also planned hi-tech concentrated breeding areas in Dong Tam, Dong Ky, Canh Nau, Tien Thang, Tam Hiep, and Tam Tien communes, and developed large-scale hill chicken farming models./. Ho Chi Minh City – Phu Quoc flights temporarily suspended The Ministry of Transport has approved the temporary suspension of flights between Ho Chi Minh City and Phu Quoc island city in Kien Giang province. Deputy Minister of Transport Le Anh Tuan signed a decision on the suspension of flights beginning at 0:00 on July 8 until further notice. The move came as HCM City is recording a large number of COVID-19 cases in recent weeks. "The Civil Aviation Administration of Vietnam shall notify airlines, relevant agencies and units for information and implementation; and at the same time consider and settle at the request of the airlines and the relevant State agencies on arranging special flights to transport health workers, medical supplies and equipment", the Ministry of Transport said. The Ministry of Transport tasked the Civil Aviation Administration of Vietnam to coordinate with relevant agencies and units under the People's Committee of Kien Giang province to monitor the COVID-19 situation to make adjustments to flights to/Phu Quoc Airport in a timely manner. The Ministry of Transport had previously agreed to suspend flights from HCM City's Tan Son Nhat International Airport to Ba Ria – Vung Tau, Thanh Hoa, Quang Ninh, Hai Phong, Gia Lai, Quang Binh, Nghe An, Quang Nam, and Thua Thien – Hue./. Firms offered recommendations to boost exports to EU Europe is a large market for Vietnamese goods, but businesses need to grasp its quality standards and consumption trends so as to fully capitalse on this market, heard an online workshop held on July 7. Nguyen Tuan, Deputy Director of the Investment and Trade Promotion Centre of Ho Chi Minh City, said trade between Vietnam and Europe has recorded encouraging results in the recent past, and it is forecast to grow even more strongly thanks to the EU - Vietnam Free Trade Agreement (EVFTA). Bilateral trade turnover saw a 12-fold increase from 4.1 billion USD in 2000 to nearly 50 billion USD in 2020. Vietnam’s exports to the EU surged by 13-fold from 2.8 billion USD to 35.1 billion USD during the period. Last year, Vietnam posted about 29 million USD in trade surplus with the EU despite the COVID-19 pandemic. The main importers of Vietnamese goods include Germany, France, and Poland. Tuan said as the pandemic is still wreaking havoc on the global economy and trade, Vietnam, including HCM City, has been working hard to connect local enterprises with foreign markets via online platforms and new sale channels. As a result, trading has been maintained, thus keeping supply chains uninterrupted. Adam Koulaksezian, Director of the French Chamber of Commerce and Industry in Vietnam (CCIFV), noted Vietnam currently ranks 15th in the world and first in ASEAN among trade partners of the EU. Thanks to the EVFTA that took effect in August 2020, tariff barriers have been lifted for a number of exports from both Vietnam and the EU, creating momentum for bilateral trade. Export and import between the two sides have been on the rise and predicted to grow further in the time ahead, which will be a great opportunity for Vietnamese exporters in many industries, he said. However, Koulaksezian added, EU consumers are paying more attention to sustainability, including origin traceability of products, corporate social responsibility, and environmental protection. Therefore, Vietnamese businesses should ensure the sustainability of their products and build an export strategy matching the demands and trends in foreign markets. Pointing out certain challenges to bilateral trade, Business Support Service Director at CCIFV Nguyen Dac Boi Quynh said the complex COVID-19 situation, especially in southern Vietnam where many wood and aquatic product processing firms are located, is forcing businesses to simultaneously implement social distancing and sustain production. Other challenges include the requirements for product origin traceability and different types of certificates, and the fast-changing consumption trends in the EU. Sharing her business’s experience, Pham Thi Hong Quang, Director of the Viet Source Handicraft Co. Ltd, said the company has built its infrastructure meeting importers’ requirements, shifted to online marketing in the face of the pandemic, and stay updated with new consumption trends in the EU, which has helped its shipments to this market increase 20 percent from the pre-pandemic period. She recommended enterprises that want to access this market to make proper investment right from the beginning to meet quality requirements, update themselves with consumption trends, and make use of modern marketing channels./. Rubber group looks to boost industrial zone development The Vietnam Rubber Group (GVR) targets to earn revenue and profit of 26.9 trillion VND (1.17 billion USD) and 4.56 trillion VND this year, respectively. It plans to spend 2.4 trillion VND to pay 2020's dividend at a rate of 6 percent. This year, the company plans to spend about 2.63 trillion VND on investment, of which about 578 billion VND is invested in basic construction projects and the remaining 2.05 trillion VND is for long-term financial investment. The information was released at the annual general meeting of shareholders held late June. Responding to shareholders about the roadmap for land conversion in the near future, the management board said that GVR’s main area in the 2021-2025 period will be industrial zone development, which is expected to bring more benefits and profits for the group. GVR will also continue the traditional business of exploiting and selling rubber latex and processing and manufacturing industrial wood products. In the long term, the conversion of rubber plantation land into industrial parks can help GVR become one of the largest industrial developers in the southern region besides Becamex, Tin Nghia, Sonadezi and VSIP. Speaking with shareholders about this new segment, the management board said that the advantage of GVR was owning an abundant rubber land fund, mainly in the provinces of Dong Nai and Binh Duong, while the land fund for industrial parks in these areas is inadequate. It is estimated that the area for lease of industrial land is expected to achieve a 5-year annual compound growth rate (CAGR) of 17 percent, while the current main business of GVR - rubber latex production - only achieves a 5-year CAGR of 3.6 percent. GVR will also sell about 2,686 hectares of industrial land in the next five years, an increase of 76 percent compared to the total sales of industrial land in the 2016-2020 period. By the end of 2020, GVR had managed a domestic rubber area of roughly 87,000 hectares. Last year, the industrial zone segment contributes 1.52 trillion VND in revenue and 821 billion VND in profit./. Forestry product exports expected to reach 15.5 bilion USD in 2021 It is forecast that the total export turnover of wood and forestry products for the whole year will reach 15.5 billion USD, a year-on-year increase of 17 percent. The figure was revealed by Bui Chinh Nghia, Vice General Director of the Vietnam Administration of Forestry ( VNFOREST) under the Ministry of Agriculture and Rural Development, at a conference held on July 7 to review its performance in the first half of the year and set tasks for the second half of 2021. The export value of wood and forestry products in the first six months of this year was estimated at 8.71 billion USD, up 61.6 percent compared to the same period last year, the conference heard. Wood processing enterprises continued to push up the export of products with high added value such as kitchen cupboards and furniture, Nghia said, adding that these are also products that have achieved a great growth rate of 40 percent. While appreciating the good results gained by the VNFOREST over the past six months, Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said it should not rest on its laurels as the industry has been facing challenges from the impacts of the COVID-19 pandemic and natural disasters. Trade barriers would directly affect export activities, he added. Thus, the deputy minister demanded the administration to build scenarios for the forest industry to cope with emerging challenges. Regarding the US's investigation into some wooden products imported from Vietnam, Doanh said that the wood manufacturing and processing industry needed to be more cautious to show other countries that Vietnam is moving towards transparent trade and is a reliable partner. To gradually meet the demand for transparent domestic raw materials, the VNFOREST plans to issue a certificate of sustainable forest management, Nghia said. The administration will work closely with the Programme for the Endorsement of Forest Certification (PEFC) to accelerate the recognition of the national forest certification system and link with the PEFC forest certification. It is reported that the area of the newly-planted forest has so far reached 108,258 ha, accounting for 41.6 percent of the plan and that of the whole year is expected to hit 260,000 ha, meeting the year’s target. As many as 109 forest fires and 1,329 forest-related violations were recorded in the first six months of the year. The damaged forest area was 1,210 ha, a decrease of 53 percent compared with the same period last year. Of which, 283 ha were damaged by forest fires and 672 ha due to illegal deforestation. The administration will strengthen the forest protection and management to meet the target of reducing the number of violations by 10 percent and the damaged forest area by 20 percent compared with last year’s figures./. Australia – a potential market for Vietnamese organic agricultural products The potential for organic agricultural development in Vietnam is still great and the opportunity for organic agricultural products from Vietnam to enter Australia is very promising in the near future, said Nguyen Van Kien, Director of Canberra-based Mekong Organics Company. Mekong Organics has been selected by the Australia government to implement a project to promote the development of organic agricultural technology, certification and trade between Vietnam and Australia within the framework of the Australia-Vietnam Enhanced Economic Engagement Grant (AVEG) pilot programme. Kien, who is also a senior lecturer at the Australian National University and has worked for 20 years at Vietnam's An Giang University, said that by accessing reports of many new scientific studies on the organic agricultural industry he realised that the potential for organic agriculture in Vietnam is still very large, with the current growth trend of the organic industry in the world, especially in the US, Europe, Canada and Australia markets. Vietnam's Mekong Delta has many advantages to shift to ecological and organic agriculture to be on par with leading agriculture in the region and the world, he told the Vietnam News Agency (VNA). The shift from low-quality to high-quality agricultural production was very urgent to improve farmers' incomes as well as the environment for communities, and adapt to climate change, he said. According to Tim Marshal, General Director of TM Organics Company, and Chairman of the Organic Certification Authority of the National Association of Sustainable Agriculture Australia, the market for organic agricultural products in Australia reached 2.5 billion AUD (equivalent to nearly 2 billion USD) in 2019. This market has been constantly growing, with a wide variety of products such as processed and beauty products, and garments appearing more and more in farmers' markets, supermarkets, restaurants and cafes. However, domestic production in Australia has not yet met the needs of consumers. Due to lower supply than demand in the organic agricultural product market in Australia, Kien said that the potential for organic agricultural products from Vietnam to enter this market is quite high in the coming years, especially processed products such as sauces, jams, canned fruits, dried or frozen vegetables. While processed products can be easily imported into Australia, it is difficult for raw products because they had to meet very high biosecurity requirements for imported agricultural products, he added. Kien said the project will focus on a training course for 200 learners who are businessmen, students, farmers and lectures on production and processing and trade in organic agricultural products based on experience from Australia. During the course which will be organised in November this year, the learners will be able to access Australia's organic standards, biosafety standards when exporting to this country, and information on the organic agricultural market. The orginisation of a forum between Australia and Vietnam will also be included, he said, adding that it will provide a opportunity for farmers and businesses of the two countries to introduce organic products./. Indonesia halts anti-dumping measures on cold steel sheets from Vietnam The Indonesian Government has moved to stop applying anti-dumping measures on a number of cold–rolled steel sheets originating or imported from Vietnam, according to the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam (TRAV). Following this decision, cold-rolled steel sheets imported from the Vietnamese market will not be subject to anti-dumping duties of up to 49.2%. This comes following an anti-dumping investigation initiated by the Indonesian Anti-Dumping Committee (KADI) in August 2019, before being completed in February this year. According to data compiled by the Indonesian investigating agency, Indonesia imported approximately 365,000 tonnes of cold rolled steel sheets from Vietnam worth roughly US$290 million annually throughout the investigation period. The TRAV indicated that this represents a positive result for Vietnamese exporters that have fully co-operated with KADI for nearly two years as they have consistently provided sufficient information at the request of the Indonesian investigating agency. During the investigation period, the Ministry of Industry and Trade (MoIT) has been closely monitoring developments of the case and acted promptly to assist Vietnamese firms protect their legitimate interests. Both the MoIT and the TRAV have sent letters to relevant Indonesian agencies to calculate and determine the dumping margin in line with the World Trade Organization (WTO) and international practices. The MoIT has also directed the Vietnamese Trade Office in Indonesia to attend public hearings and use them as platforms to voice their support for Vietnamese businesses. Moving forward, the TRAV will continue co-ordinating alongside the Vietnam Steel Association and related firms as they monitor the latest developments in export markets and the Indonesian market in order to take timely measures. Vietnam, New Zealand urged to take full advantage of FTAs As members of several free trade agreements (FTAs), both Vietnam and New Zealand can seize upon opportunities to promote economic development and connect supply chains within FTAs to export goods to markets of partner countries, according industry insiders. Since both countries first established the Comprehensive Partnership in 2009 and signed the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) in 2010, there have been a range of significant changes in terms of economic relations, with bilateral trade witnessing robust growth over the past decade. Last year, despite the adverse impact caused by the COVID-19 pandemic, bilateral trade surged by 6.9% to reach NZD1.93 billion compared to 2019. Vietnam also represented the 16th largest partner in importing goods from New Zealand. New Zealand’s major imports include electronic products, garments, footwear, wooden products, tropical agricultural products, and aquatic products, while key Vietnamese imports from New Zealand include raw milk and dairy products, wine, along with garments and textiles. Duong Phuong Thao, Vietnamese Trade Counselor in New Zealand, noted that both sides are members of new-generation free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). In addition to the AANZFTA, these FTAs can serve to greatly elevate bilateral trade in the near future. It can therefore be considered that the two nations can seize upon these opportunities to enhance capacity building in agricultural production, apply higher food safety standards as a way of improving product quality, and transfer processing technology in agricultural and aquatic products to boost exports to markets of partner countries. Due to these factors, local businesses are advised to closely co-ordinate with their import partners to ensure that their goods meet the stringent regulations set in terms of the rule of origin, as well as undergoing quarantine set by the demanding markets in future, according to the Vietnamese Trade Office in New Zealand. HCM City to trial mobile sales of essential goods as lockdowns restrict consumers’ access The HCM City Department of Industry and Trade plans an itinerant sales programme that will sell goods around the city since many traditional markets, supermarkets and food stores are closed to combat the COVID-19 pandemic. Nguyen Thi Ngoc Thuong, sourcing department manager at Bach Hoa Xanh retail chains, said people's food needs are at more than 200% compared to the time of no epidemic. To meet the demand, her chain has increased its inventories in the city by 180 per cent, with a focus on pork, vegetables, tubers, and fruits. "We can further increase stocks if needed and offer online shopping and home delivery. We will meet demand.” Phan Van Dung, deputy general director of Vissan, said his company would increase the supply of fresh pork to make up for the shortfall caused by the closure of Hoc Mon Wholesale Market. Vissan now sells 120-150 tonnes per day, 30 tonnes more than in June and 70-80 tonnes higher than in the pre-COVID period. Nineteen cases were detected at the Hoc Mon Wholesale Market and more were contact traced in other places, forcing the district People’s Committee to close it. Hoc Mon used to be one of the city’s three largest wholesale markets, distributing 3,500-4,000 tonnes of pork, 2,000 tonnes of vegetables and 1,000 tonnes of fruits every day. But Thuong pointed out that the fact many Bach Hoa Xanh stores have to be temporarily closed means customers have less access to food. Bach Hoa Xanh, Saigon Food Company and Ba Huan Company are therefore urging the government to consider mobile sales in areas that have been closed down and at the sites of temporary traditional markets that have been closed. Dung said Vissan has the equipment and vehicles to go to five to 10 locations a day, but pointed out that local authorities need to identify the locations to mitigate the threat of Covid prevention. Saigon Food Company and Ba Huan Company also said they are willing to sell at industrial parks and residential areas that are locked down if local authorities provide support. Of the 234 traditional markets in the city, 93 have been closed on safety grounds. Farmers need training to develop digital agriculture Farmers need more training on digital technology to bring the industry to another level, experts have said. Nguyen Duc Tung, general secretary of the Viet Nam Digital Agriculture Asociation (VIDA), made the statement said at a launch ceremony for a report on digital transformation in agriculture in Ha Noi yesterday. “Viet Nam has adequate facilities and infrastructure to implement digital transformation in the agricultural sector,” he said, adding that farmers’ technology adaption was among the factors that needed most attention when building digital agriculture. According to the report, although Viet Nam was an agricultural country, Vietnamese agriculture has still not had strong development due to many internal and global problems. The multi-dimensional impact of the Fourth Industrial Revolution and the COVID-19 pandemic has forced the economy and agriculture to transform, according to the report. The report said though digital transformation was inevitable and the first results of the change have shown potential, the digital transformation process of agricultural production was still long and full of challenges. The report considered the e-government programme of the Ministry of Agriculture and Rural Development and other regulations in data sharing as positive points in the process, but the weakness of the system was that agricultural data was not connected from the local to national level while there was a lack of human resources to use technology in farming. Most agriculture students don’t know much about technology, Tung said. At the same time, links between enterprises in the value chain and ties those in the chain need to ensure better harmony in terms of benefits and responsibilities, according to the report. The report said the lack of funding for digital transformation was a problem faced by most businesses, especially small and medium-sized firms, the most common business type in Viet Nam. According to VIDA, the report provides an overview of local agriculture by approaching the core stakeholders of the industry like farmers, businesses and policymakers through online surveys and in-depth face-to-face interviews on the digital transformation process in Viet Nam. VIDA's goal in the coming years is to develop the annual report to become a total solution for the digitisation of the agricultural sector. Tung said the report is hoped to the premise for the development of business evaluation indicators in the industry. VIDA’s report also recommended building a common and uniform database, developing infrastructure with the participation of many parties, developing policies to support capital investment for businesses, developing an innovation system focusing on new technology, and promoting awareness through communication. Despite the COVID-19 pandemic, Viet Nam saw a year on year increase of 30.3 per cent in agro, forestry and seafood product exports to US$22.83 billion in the first five months of 2021, reported the Ministry of Agriculture and Rural Development (MARD). HCM City assures supply of essential goods to remain normal despite wholesale markets closure The HCM City Department of Industry and Trade said it has plans to ensure uninterrupted supply of essential goods to meet consumer demand though all three of the city's largest wholesale markets have been closed. Binh Dien Wholesale Market in District 8 was closed on Tuesday morning after recording at least 39 cases of COVID-19 through mass testing, and will reopen when it can comply fully with the pandemic prevention and control protocols. Traders there have been told to switch to online sales and have their products delivered to customers’ homes until then. The city will also strengthen mobile sales to ensure there is an adequate supply of essential items like food. The department has worked with businesses and district administrations to ensure no small trader hikes prices. Whatever the situation, authorities and key businesses would ensure supply is always adequate provided people do not hoard, Nguyen Nguyen Phuong, deputy director of the department, said. With the three largest wholesale markets in the city having to temporarily shut down, Thu Duc and Hoc Mon being the others, goods coming from provinces to the city will go directly to traditional markets. The department said the 1,962 food supply points (106 supermarkets, 220 traditional markets and 1,636 convenience stores) in the city have plans for stockpiling to ensure supply of food and other essential items is adequate. The city also plans to strengthen the capacity of traditional markets as well as modern distribution systems to maintain their key role in distributing essential goods. Bui Ta Hoang Vu, director of the department, said the city held a meeting with Tay Ninh Province to set up a buffer zone for transhipment of goods between the two places. Goods coming from Tay Ninh to the city will be gathered in a place between Cu Chi and Trang Bang it will disinfect districts where both they and the vehicles transporting them before they are brought to traditional markets. The 30-hectare Binh Dien Wholesale Market has thousands of stalls selling mainly seafood, pork and vegetables. It has around 20,000 people working every night during normal times, but during social distancing only 9,000-12,000 people were allowed to work there, yet the risk of spread of infection remained very high. It has thousands of stalls, and some 5,000 cars and trucks and 2,000 three-wheelers enter it every day. Eight thousand tonnes of fruits and vegetables come to the city’s three wholesale markets every day, meeting 70 per cent of demand. Supermarkets, shopping malls and other retailers supply the remaining 30 per cent. Shares edge higher, foreign investors net buy over $90.3 million The market ended higher on Wednesday with the VN-Index recovering from the previous session's losses. Meanwhile, foreign investors flocked back to the market with a net buy value of more than VND2 trillion. The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSe) surged 33.76 points, or 2.49 per cent, to 1,388.55 points. The index lost more than 56 points, falling below the key level of 1,400 points, as selling forces weighed on the market in the last trading hour of Tuesday. The market's breadth stayed negative as 226 stocks decreased, while 147 stocks rose and 40 ended flat. The liquidity remained high with nearly 740 million shares traded, worth nearly VND24.87 trillion (US$1.1 billion). The rally was thanks to recoveries in large-cap stocks. The VN30-Index posted gains of 50.35 points, or 3.38 per cent, to 1,538.77 points. Of the 30 biggest stocks in the VN30 basket, 26 stocks rose while only four slid. Stocks across all sectors jumped sharply yesterday. In the top five stocks influencing the market's rally, Vinhomes JSC (VHM) was the biggest gainer in market capitalisation, up 6.07 per cent. It was followed by PetroVietnam Gas JSC (PVGas, GAS), Techcombank and Hoa Phat Group (HPG), up 6.64 per cent, 4.81 per cent and 3.96 per cent, respectively. Other stocks like Vietjet Aviation JSC (VJC), FPT Corporation (FPT) and Mobile World Investment Corporation (MWG) also witnessed good performance, with MWG shares hitting the maximum daily gain of 7 per cent. After the VN-Index broke through the short-term support level of around 1,380 points, the index's technical signals were weaker and the next support zone is 1,325 points, said analysts from Saigon - Hanoi Securities JSC (SHS). Based on Elliott theory, the market might enter the corrective wave A with a target of around 1,210 points. However, after strong correction sessions, the market often has technical recoveries to claim back some losses, SHS added. On the Ha Noi Stock Exchange (HNX), the HNX-Index also inched 0.41 per cent higher to 319.83 points, boosted by gains in large-cap stocks. The HNX30-Index, tracking the 30 biggest stocks on the northern bourse, increased 1.01 per cent to 498.17 points. During the session, over 168.93 million shares were traded on HNX, worth nearly VND3.9 trillion. While foreign investors were net buyers on HoSE, with a net value of VND2.08 trillion, they net sold a value of VND47.27 billion on HNX. Prescription drug sales down amid COVID contagion fears Growth in prescription drugs from the first quarter to the third quarter of 2020 have decreased by 10-15 per cent compared to 2019 and fear of COVID-19 is to blame, according to SSI Securities. Hospital admission procedures have also become stricter during the pandemic restricting the number of patients who are visiting the facilities for periodic health check-ups. This, in turn, has greatly affected the number of people buying medicine. The pharmaceutical industry has long been considered a stable growth industry, but since the beginning of the pandemic, these factors have seen significant declines in the prescription drug sector. In 2020, the growth rate of this channel was just five per cent, significantly lower than the figure of more than 10 per cent the previous year. In contrast to the decline in prescription drug sales, over the counter (OTC) drug sales recorded remarkable growth. This was particularly notable in sales of pain relievers, antipyretics, antiseptics, and hand sanitiser. OTC drug prices are not affected by the Law on Bidding, which creates favourable conditions for pharmaceutical enterprises to promote and exploit this product line, according to Phu Hung Securities Corporation. According to a survey by the Vietnam Report, about 71.4 per cent of enterprises participating in the survey chose to develop and expand OTC channels to compensate for the shortage of sales in prescription drugs. Businesses with well developed OTC sales channels all recorded positive results in the first quarter of this year. Traphaco Pharmaceutical Joint Stock Company (TRA), for example, recorded a VND55.2 billion (US$2.4 million) in profit after tax in the first quarter of 2021, an increase of about 40 per cent over the same period in 2020. Many businesses, however, that did not have strong OTC sales at the beginning of the pandemic have suffered losses. Ben Tre Pharmaceutical Joint Stock Company (DBT), for example, recorded a loss of VND328 million in the first quarter of this year opposed to a VND6 billion pre-tax profit in the same period last year. COVID-19 VACCINES In early June 2021, the Ministry of Health announced a list of 36 medical facilities eligible to import and preserve COVID-19 vaccines, including many companies listed on the stock exchange. These included Vimedimex Binh Duong Pharmaceutical JSC (VMD), Ben Tre Pharmaceutical JSC (DBT), Central Pharmaceutical Company No.1 JSC (DP1), Danang Pharmaceutical Medical Equipment JSC (DDN) and Codupha Central Pharmaceutical JSC (CDP). Almost immediately after the announcement, pharmaceutical stocks received a much needed boost. VMD, for example, saw an increase from VND23,700 per share on June 1 to VND34,130 per share on June 9. A 44 per cent increase, before sliding back to its current value of VND26,500 per share. Similarly, DDN recorded five consecutive sessions of gains from June 2 to June 8. This saw an increase of 35 per cent, from VND13,200 per share to VND22,000 per share, before closing Wednesday at VND13,500 per share. This was still 17 per cent above its share price in early June. DBT shares also increased dramatically over the same period. Shares rose for six consecutive sessions by 42 per cent, rising from VND13,150 to VND18,350 per share only to drop back to around VND13,350. A 9 per cent increase compared to early June. Notably, DBT has also completed the capital divestment from Nha Trang Vaccine and Biological Products JSC successfully (BIO), selling 4.4 million shares or the equivalent to 51 per cent of BIO's charter capital. BIO was considered a "dead" stock due to failing to witness any transactions after joining the Unlisted Public Company Market (UPCoM) in August 2018. However, this changed quickly amid the pandemic with the stock receiving much more attention from investors. On May 27 of this year, BIO hit VND152,450 per share, an increase of 1,594 per cent compared to VND9,500 per share recorded on April 20, 2021. Currently, BIO has cooled down significantly, trading around VND41,000 per share. Mergers and acquisitions are also believed to be impacting stock prices in recent months. On June 7 this year, Pymepharco JSC (PME) announced that Stada Service Holding BV of Germany had made a public offer to buy nearly 356,000 PME shares. This is the equivalent to 0.47 per cent of the company's charter capital. As of March 26 this year, Stada Service Holding BV held 99.53 per cent of capital in PME. This acquisition would give the German financiers full ownership of PME’s capital. Viet Nam's pharmaceutical market is currently valued at $7.4 billion covering 22,000 different types of drugs. According to Fitch Solutions, growth in Viet Nam's pharmaceutical industry will reach 8.7 per cent in 2021. SSI Securities also forecast a growth rate of 15 per cent higher than the pharmaceutical industry's average growth rate of 11.8 per cent, over the 2018-2019 period. These strong growth figures are partly attributed to Viet Nam's rapidly ageing population and big increases in per capita income. Foxconn forced to re-employ at outside locations Major manufacturers of some of the world’s most sought-after products are scrambling to spread production efforts elsewhere due to prolonged pandemic impacts in India and Vietnam in particular. Fuyu Precision Component Co., Ltd. – a facility of Foxconn Singapore – has struggled with pandemic-related restrictions at Quang Chau Industrial Zone (IZ) since the latest outbreak hit the north of the country and major manufacturing sites in May. A Foxconn Vietnam representative confirmed to VIR that the company has yet to resume at full capacity because a large volume of the labour force was isolated. In mid-May, Bac Giang People’s Committee asked entire tenants in four IZs to suspend operations in order to prevent the spread of the pandemic. They include Fuhong Precision Component (in Dinh Tram IZ) and New Wing Interconnect Technology (in Van Trung IZ) started to resume operations in part by the end of the month. It was also reported in June that production in one Indian iPhone plant was halved after more than 100 Foxconn employees tested positive. The difficulties in daily operations for Fuyu and others mean that the suppliers are having to ramp up operations in locations with fewer restrictions in order to reach their targets, especially in China. A representative of the Ministry of Planning and Investment’s Foreign Investment Agency noted that factories on the Chinese mainland are possibly being tasked with assembling new iPhones in order to release them as scheduled in the fall. However, China may not necessarily be the long-term destination for Apple suppliers due to high labour costs – one of the reasons diversification from China was taking place before the pandemic. Media reports have added to the assumption that Foxconn in China is ramping up operations to offset the decrease in capacity from the Indian and Vietnamese markets. Global Times reported that Foxconn has also been ramping up recruitment on the Chinese mainland amid COVID-19 resurgences in India and Vietnam, causing major disruptions in both production lines and supply chains. “This isn’t a temporary move but one that will last for six months or even a year,” a source from Foxconn told Global Times last month. Analysts noted that Foxconn may also be hiring for the mass production of new Apple products like iPhones, as orders flow back to China. The Foxconn factory in Zhengzhou in central China raised its bonus for new workers to over $900 from the previous $550 per person at the end of May. New workers will get the bonus if they work for at least 55 days within a period longer than 90 days, according to a recruitment notice from the factory in mid-June. Similarly, iPhone production hub Shanghai Pegatron recently raised its recruitment bonus, with a rebate increased from $850 up to $1,300 to meet the manpower demand in the upcoming peak season. Last year, Apple moved about eight factories and production lines from China to both India and Vietnam. Its partners have poured billions of US dollars to build new factories and purchase machines – however, COVID-19 has posed as a huge challenge for iPhone production, not only in these markets but in Taiwan as well. The ongoing events are somewhat of a backwards step for Foxconn’s plans. In January, Bac Giang People’s Committee granted an investment certificate for the Fukang Technology Factory project of Foxconn worth $270 million. The factory would be located in Quang Chau IZ with the goal of manufacturing and processing tablets and laptops with a capacity of about eight million products per year. However, construction has yet to be kicked off and there is no current timeline for operations. Speaking at the ceremony to receive the certificate, a company representative said that the company was to add 10,000 positions in Vietnam this year. In early 2021, Foxconn indeed posted recruitment notices for the positions of electronic component assemblers and engineers for its factories in both Bac Ninh and Bac Giang. In an interview last week with Hoang Sy Tuan, deputy director of the Investment Trade Tourism Promotion Agency of the north-central province of Thanh Hoa, he noted that Foxconn was still considering three locations offered by Thanh Hoa People’s Committee to develop a $1.3-billion project to produce electronic parts for Apple. The locations include Nghi Son Economic Zone in the west of the province and another one in Thieu Hoa district. Once complete, the plants could generate 100,000-150,000 jobs and $10 billion in export revenues per year. “The agency often contacts Foxconn to support it to understand more about the investment environment of the province. The investor will arrive in the province for field surveys once the pandemic is controlled,” Tuan said. New assistance under ADB to boost private sector development in Vietnam A new $4.6 million technical assistance package from the Asian Development bank will help the government of Vietnam to strengthen public-private partnerships, private sector development, and state-owned enterprise reform. “Vietnam has achieved impressive socio-economic development over the past three decades by maintaining high economic growth gained from its structural reforms,” said ADB principal private sector development specialist Donald Lambert. “To meet the targets of its upcoming Socio-economic Development Strategy (SEDS) 2021-2030, maintain the growth rate of 6-7 per cent, and achieve the Sustainable Development Goals, Vietnam will need to further accelerate economic reforms, expanding the role of the private sector in driving the country’s development.” Between 2011 and 2020, Vietnam invested an estimated $117 billion in infrastructure. However, its infrastructure remains underdeveloped compared to its regional peers. The country will need to mobilise an estimated $237 billion by 2030 to close the infrastructure deficit, which is $49 billion more than the historical spending trajectory. Recognising the potential of the private sector to help close the infrastructure deficit, Vietnam’s SEDS 2021-2030 prioritises removing barriers to open competition and developing a supportive environment to increase the private sector’s contribution to the economy, including a larger role in infrastructure development. The ADB’s new technical assistance will help by delivering policy advice on public-private partnerships (PPPs) and private sector development, piloting projects that embed the G20 Quality Infrastructure Investment principles, and strengthening PPP and private sector development institutional capacities. Efficient growth strategy boosts valuation of Masan stocks Valuations of Masan Group's MSN stock have been rated 20 per cent higher than the current trading price according to securities companies and investment banks. At the same time, the company also shared more about the strategy of developing the Point of Life consumer-retail platform, especially promoting the integration from offline to online after the cooperation agreement with Alibaba. After this meeting on July 5, Viet Capital Securities (VCSC) raised MSN's target price. In its assessment summary VCSC said, “We currently rate MSN with a buy recommendation at a target price of VND142,500 ($6.19),” said VCSC. In May 2021, VCSC gave a buy recommendation of VND121,600 ($5.28). Currently, MSN is trading at VND110,000 ($4.78). According to VCSC, Masan has conducted two deals to increase its ownership in TCX. Specifically, it spent $350 million to buy treasury shares with TCX valued at $7.3 billion. Also, Masan spent $50 million to acquire secondary shares of TCX with a valuation of $7.3 billion. “It is worth noting that $7.3 billion is also the valuation at which Alibaba and other investors have invested in TCX. A consortium led by Alibaba has injected $400 million to scoop up a 5.5 per cent stake in TCX,” VCSC added. In the long term, Masan aims to increase VinCommerce's total commercial margin above 30 per cent from the current 20 per cent by negotiating terms with suppliers, sharing revenue with Phuc Long kiosks located in VinMart and VinMart+ stores, as well as building VinCommerce's own brand portfolio. While Masan has yet to release its semi-annual financial statement, its Board of Management (BoM) said that although VinCommerce has closed several underperforming stores in 2020, sales growth at existing stores kept its revenue unchanged compared to the previous year as the COVID-19 outbreak has accelerated the transition of consumers to modern retail channels. Although VinCommerce posted positive earnings before interest, taxes, depreciation, and amortisation (EBITDA) since the end of 2020, it still incurred a net loss. VCSC called this loss "planned", with the BoM planning for a net loss of about VND1 trillion ($43.44 million) in 2021 for the subsidiary, an improvement compared to the loss of VND3.2 trillion ($138.97 million) in 2020. VCSC noted that many securities companies and institutional investors have placed high expectations on Masan's strategy to develop an offline-to-online retail model. In particular, Masan is accelerating its Point of Life platform that will serve the essential needs of consumers from groceries to financial services (payment, credit card, investment) through cooperation with Techcombank. It will also expand its service offering to meet other needs in the future such as healthcare, education, and entertainment. Specifically, in the first half, Masan cooperated with Alibaba and Lazada to promote online grocery sales. The company also formed a strategic cooperation with Phuc Long to develop Phuc Long Kiosks at VinMart+ stores. By the end of June, around 50 VinMart+ stores have set up Phuc Long kiosks. The kiosks will share 20 per cent of their estimated VND5 million ($220) daily revenue with VinComerce. Under the cooperation, 1,100 Phuc Long Kiosks will be set up in VinMart+ locations by the end of the year to contribute an expected 4 per cent to the EBITDA margin of the VinMart+ system. In addition, Masan launched a pilot model intergrating Techcombank's financial services and Phuc Long Kiosks at VinMart+ in Hanoi. It set the goal of increasing the number of VinCommerce points of sale (VinMart and VinMart+) to 3,000 by the end of 2021, reinforcing its leadership in terms of scale and profit. To finance the above strategies, TCX is expected to continue to raise $300-400 million in the second half of the year. In a press release from July 1, Danny Le, general director of Masan Group said that, “2021 will mark a turning point for VinCommerce when this retail system starts to turn a profit. Our top priority is to re-expand our point-of-sale system to build a leading retail chain in terms of scale while maintaining the momentum of improving profitability. This is the foundation for us to increase investment to accelerate our offline-to-online integration strategy. Based on TCX’s projected business results in 2021 and the growth potential of the offline-to-online integration platform, TCX's current valuation does not accurately reflect its value." Another company, Mirae Asset Securities, also issued a report on July 5 raising the target price of MSN to VND131,000 ($5.69). Previously, in January 2021, Mirae Asset Securities rated MSN with a valuation of VND120,000 ($5.21). Similarly, HSC also announced a new valuation for MSN shares at VND134,000 ($5.82) in its report published on July 2. On July 7, Credit Suisse raised MSN's forecast for earnings per share (EPS) in 2021 and 2022 at 38 and 5 per cent, respectively, against the previous forecast. This investment bank also raised MSN's target price to VND137.000 ($5.95). Business management change to adapt to new HR realities The pandemic causes businesses to convert their operating model from a triangular to a circular model where management gives direction, facilitate, and empower subordinates to take responsibility for implementation. HR management models under the new norm will shift from a triangular to a flexible circular model. That is, instead of managing from the top down through many different management levels, making processes lengthy, the pandemic caused businesses to switch to a new model where the management only provides directions while facilitating and empowering subordinates to take responsibility for implementation. HR is no longer managed by departments based on the original job description but are managed on a project-basis, based on the skills employees possess. This governance model helps businesses quickly and flexibly change according to market realities as there are still many uncertainties ahead. Accordingly, global HR management trends are moving towards a multi-stakeholder approach, re-skilling, employee experience improvement, science-based decision-making, focusing on employee happiness, as well as applying automation and new technology. Talentnet also emphasised four salient features of Vietnam's labour market amid the new normal. Firstly, a young and well-educated workforce is starting to emerge into dominance. Secondly, enterprises are looking at the role of HR during the crisis to review and re-evaluate the costs and benefits of HR investment. Thirdly, talent shortage is happening at all levels in both Vietnamese and foreign companies, not only on the senior personnel level. Therefore, many businesses have invested heavily in programmes to attract and retain talent. Finally, due to the impact of the pandemic and the trend of digital transformation, recruitment demand in the digital and e-commerce segments is increasing. According to the General Department of Statistics, in the first half, the number of employees in new enterprises also increased by 1.3 per cent over the same period, focusing on the industries such as retail, wholesale, repair, processing, and manufacturing. Remarkably, since the first outbreak of COVID-19 pandemic, 32.1 million workers aged 15 and over in Vietnam have been negatively affected. 69 per cent have reduced working hours, reduced income or lost jobs, mainly in the service and manufacturing sectors (76 per cent). It is predicted that the top five sectors with the highest labour shortage in Vietnam in 2021 will be real estate, finance and banking, manufacturing, and technology-related fields like IT, e-commerce, fintech, and proptech. Recruitment demand in the first half of 2021 focuses on industries such as finance, banking, insurance, real estate, and construction. Notably, while healthcare and pharmaceuticals are the hot industries in the south while high-tech and IT are the hottest in the north. In particular, there are a lot more openings for project managers in the north than in the south. However, according to the Talentent-Mercer remuneration survey in Vietnam in 2021, 20 per cent of surveyed enterprises plan to hire more employees. Meanwhile, 10 per cent of businesses plan to reduce the number of employees, focusing on service industries heavily affected by the pandemic such as restaurants, customers, and transportation. 70 per cent of businesses would not change the number of employees but focus on training to help employees keep up with market demands. Construction cost hikes exacerbate real estate delays The skyrocketing price of construction materials has been affecting real estate projects in Vietnam, delaying their progress and raising property prices even further. Since the beginning of 2021, steel has seen runaway price growth to now stand at nearly VND18 million ($780) per tonne, 40-50 per cent higher than quotes from the end of 2020. In particular, some steel producers have increased prices six times within as little as 10 days. Meanwhile, the cost of cement also increased by VND30,000-50,000 per tonne ($1.30-2.20), and the price of sand nearly doubled. In the face of rising construction costs, many investors said they would have to delay some projects and adjust the prices of their products. Nguyen Hoang, director for research and development of DKRA Vietnam, said that the increase in the cost of construction materials will certainly impact real estate projects being implemented, as well as both contractors and investors. “Costs increase at the expense of initial profit expectations, which could slow down the construction process at some projects or force developers and contractors to re-negotiate terms,” Hoang said, adding that the effects would reduce market supply towards the end of the year. Other projects, he added, may pause to wait for prices to climb down. However, this will jeopardise construction progress and could negatively affect buyers. Several disputes have already arisen between developers and buyers regarding the slow process at projects like Sunshine City Saigon, funded by Sunshine Group, in which buyers are requesting that their deposits are returned. Meanwhile, Lim Hua Tiong, CEO of Frasers Property Vietnam, told VIR that increasing material prices generally affect a project’s profitability, planning, and in the worst-case scenario can lead to delays in construction and handovers. “The sudden and unexpected spike will affect contractors with insufficient cash reserves to purchase materials to proceed with the construction,” said Hua Tiong, adding that the hike will, however, eventually stabilise within inflation range. His expectations are supported by a recent study by S&P Global which expects steel prices to soften in the second half of 2021. At the same time, Hoang from DKRA warned that some developers could resort to cost- and profit-saving solutions such as switching to cheaper building materials. According to the Vietnam Association of Realtors, the price of apartments could increase 10-15 per cent due to material prices, instead of the 4-6 per cent originally forecast. Hoang from DKRA suggested developers and contractors utilise their back-up budget on time to cope with the increased price of construction materials. “They should also diversify their sourcing of irreplaceable construction materials and discover suitable alternatives while ensuring the quality of the construction,” Hoang explained. Hua Tiong of Frasers Property added, “Investors and developers should continue to utilise their expertise and experience to plan, develop, and manage the project and work closely with their contractors to ensure timely project implementation. It is also important for developers to have a strong balance sheet and cash reserves to tide over any economic shocks or adverse market conditions.” At the same time, he said the current spike in construction material prices is only a short-term effect. “Rising land prices and delayed projects approval typically remain a bigger issue in Vietnam’s real estate market,” Tiong said. He added that as a foreign developer, he hoped that there would be continued focus on establishing more transparent approval processes for policymakers. Over 140,000 new stock trading accounts opened in June The Vietnamese stock market continues to attract retail investors with over 140,000 new accounts opened in June. The large majority (140,054) of these new accounts were opened by domestic individual investors. The number of new accounts opened by domestic institutional investors also increased for the third consecutive month, reaching 139 new accounts. "However, the number of openings by foreign investors has decreased. Foreign individual investors only opened 280 new accounts, against the 423 in May, while the number of accounts closed by foreign organisations outnumbered newly opened ones. Specifically, there were 25 new accounts and 28 recently closed accounts," BVSC said. The number of new accounts remained high in June, showing the excitement of the domestic stock market. Earlier this week, the new infrastructure developed by FPT was officially implemented at the Ho Chi Minh City Stock Exchange. The adoption of the trading system of the Korean Exchange is also set to take place between June 14 and August 6, with the official launch expected in the third or fourth quarter of this year. Promoting tourism development in new situation Implementing the Government’s Resolution No. 50/NQ-CP dated May 20, 2021 on the Action Programme to implement the Resolution of the 13th National Party Congress, the Ministry of Culture, Sports and Tourism (MoCST) has developed an action programme for tourism development during the 2021-2025 period. The programme sets out the specific goals and tasks to create a high level of consensus in terms of the awareness and action of the whole tourism sector and related industries on the roadmap to turn tourism into a spearhead economic sector of the country. During the 2016-2019 period, Vietnam witnessed the rapid growth of domestic tourism with record numbers in both international and domestic arrivals and total revenue. However, the smokeless industry then faced a precarious situation due to the impact of the COVID-19 pandemic as well as the general downturn in global tourism. About 90% of tourism businesses were forced to close and total revenue from tourists decreased by over 60%. The above situation posed a problem for tourism’s sustainable development. The sector needs to identify specific and methodical steps to overcome difficulties while creating strong motivation for the restoration and breakthrough of tourism. Regarding this, at a conference held by the MoCST to finalise the action programme for tourism development during 2021-2025 period, Minister Nguyen Van Hung affirmed it is necessary to change the mindset and approach to tourism to restructure the tourism market and acknowledge the importance of the domestic tourist market. How to take advantage and exploit the market of nearly 100 million people in the country is what the action programme examined, so that tourism industry can develop in a sustainable and balanced manner. In addition, the problem of quantity and quality also needs to be re-examined. The tourism sector should focus on increasing visitors to Vietnam as well as their contributions to the country’s economy instead of boosting solely the number of tourists. On this basis, the action programme for tourism development during the 2021-2025 period sets out seven key tasks including: the review, evaluation and completion of policies on tourism development; the application of science-technology and digital technology into the tourism industry; investment in infrastructure serving tourism; the development of products and the management of service quality; support for businesses to restore and develop amidst the pandemic; the development of high-quality human resources; the enhancement of promotion activities and international cooperation. These tasks are to be solidified by 17 key projects and tasks. According to the experts, the action programme provides fundamental solutions to help the tourism sector overcome its difficulties while creating long-term development momentum in the future. Of which, many contents have been considered to closely grasp the actual situation, solving immediate backlogs, such as: policies to support businesses and tourism workers to overcome difficulties caused by COVID-19 and associated with financial support measures, tax exemptions and reduction, preferential loans, debt rescheduling, debt freezing, job supports, proposals to reduce fees for procedures, the reduction of business deposits, and the digitisation and application of modern technologies to create a smart tourism ecosystem. A representative from the Vietnam Tourism Association has also made proposals to promote tourism following the pandemic, focusing on the attraction of key target markets and the enhancement of promotion activities in these markets. In the immediate future, to make preparations for the application of “vaccine passports” to welcome international guests, it is crucial to increase the vaccination rate for those operating in the tourism sector. In addition, the relevant agencies and enterprises should pay much attention to stimulating tourism demand in this “new normal” situation. In the context of the COVID-19 epidemic, tourism stimulation must be understood in a new sense with the goal being the sustainable growth of visitors and price reduction while improving service quality and adding new types of services. The Departments of Tourism and of Culture, Sports and Tourism in provinces and cities also noted several suggestions: specific guidance is needed on the establishment of tourism development funds in localities; amendment and supplementation of new regulations and detailed guidance on legal provisions related to investment and business activities in tourism sector is key; a balance of budget packages to support provinces to invest in their transport infrastructure especially in key economic regions is required. Firms offered recommendations to boost exports to EU Europe is a large market for Vietnamese goods, but businesses need to grasp its quality standards and consumption trends so as to fully capitalise on this market, heard an online workshop held on July 7. Nguyen Tuan, Deputy Director of the Investment and Trade Promotion Centre of Ho Chi Minh City, said trade between Vietnam and Europe has recorded encouraging results in the recent past, and it is forecast to grow even more strongly thanks to the EU - Vietnam Free Trade Agreement (EVFTA). Bilateral trade turnover saw a 12-fold increase from US$4.1 billion in 2000 to nearly US$50 billion in 2020. Vietnam’s exports to the EU surged by 13-fold from US$2.8 billion to US$35.1 billion during the period. Last year, Vietnam posted about US$29 million in trade surplus with the EU despite the COVID-19 pandemic. The main importers of Vietnamese goods include Germany, France, and Poland. Tuan said as the pandemic is still wreaking havoc on the global economy and trade, Vietnam, including HCM City, has been working hard to connect local enterprises with foreign markets via online platforms and new sale channels. As a result, trading has been maintained, thus keeping supply chains uninterrupted. Adam Koulaksezian, Director of the French Chamber of Commerce and Industry in Vietnam (CCIFV), noted Vietnam currently ranks 15th in the world and first in ASEAN among trade partners of the EU. Thanks to the EVFTA that took effect in August 2020, tariff barriers have been lifted for a number of exports from both Vietnam and the EU, creating momentum for bilateral trade. Export and import between the two sides have been on the rise and predicted to grow further in the time ahead, which will be a great opportunity for Vietnamese exporters in many industries, he said. However, Koulaksezian added, EU consumes are paying more attention to sustainability, including origin traceability of products, corporate social responsibility, and environmental protection. Therefore, Vietnamese businesses should ensure the sustainability of their products and build an export strategy matching the demands and trends in foreign markets. Pointing out certain challenges to bilateral trade, Business Support Service Director at CCIFV Nguyen Dac Boi Quynh said the complex COVID-19 situation, especially in southern Vietnam where many wood and aquatic product processing firms are located, is forcing businesses to simultaneously implement social distancing and sustain production. Other challenges include the requirements for product origin traceability and different types of certificates, and the fast-changing consumption trends in the EU. Sharing her business’s experience, Pham Thi Hong Quang, Director of the Viet Source Handicraft Co. Ltd, said the company has built its infrastructure meeting importers’ requirements, shifted to online marketing in the face of the pandemic, and stay updated with new consumption trends in the EU, which has helped its shipments to this market increase 20 percent from the pre-pandemic period. She recommended enterprises that want to access this market to make proper investment right from the beginning to meet quality requirements, update themselves with consumption trends, and make use of modern marketing channels. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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Ministries want to amend luxury tax policy to ease automobile prices10:26 The prices of domestically assembled automobiles are expected to go down once the luxury tax policy is amended. Strategic small-capacity and fuel saving models will be given priority.
 A number of agencies, enterprises and voters have sent documents to the Government and Ministry of Finance (MOF), asking to design preferential policies to develop certain strategic automobile lines. Strategic car lines have small capacity, fuel savings, and are environmentally friendly. MOF is joining forces with MOIT to work on policies and measures to support and encourage the development of automobile manufacturing and assembling, and increase the added value created domestically. MOF said it will study, assess and propose tax policies for strategic car lines during the process of amending of the Special Consumption Tax Law in the time to come. At present, the luxury tax on the cars with 9 or fewer seats is based on cylinder capacity. The cars with engines of under 1.5L are subject to a tax rate of 35 percent; while over 1.5-2.0L 40 percent, over 2.0-2.5L 50 percent, above 2.5-3.0L 60 percent, over 3.0-4.0L 90 percent, above 4.0-5.0L 110 percent, above 5.0- 6.0L 130 percent and above 6.0L bear the high tax rate of 150 percent. As for PHEV and EV, the luxury tax rates are equal to 70 percent of the cars of the same kinds using petrol. The luxury tax is one of the important policies that automobile manufacturers expect to be amended the most. In 2017, MOIT proposed the exemption of luxury tax on car parts made domestically, saying that the policy, if approved, would allow automobile assemblers to cut production costs, thus helping them reduce selling prices and improve competitiveness in the market. However, no final decision has been made and agencies are still studying the luxury tax policy. In early 2019, in the draft of the law on amending and supplementing articles on the luxury tax, MOF proposed a new luxury tax calculation method: a taxable price for cars with 9 or fewer seats, made and assembled in Vietnam, would be the price at which manufacturers sell their products minus the value of domestically made components and spare parts. Experts, applauding the proposed policy, said it would encourage enterprises to seek domestically made car parts instead of imports, thereby helping supporting industries and increasing the localization ratio. There are large-scale investment projects in automobile and car part manufacturing in Vietnam. By creating chassis from plate steel and other components, businesses could obtain a localization ratio of 40 percent. Experts estimate that if the luxury tax on domestically made car parts is exempted, car prices would decrease by 20 percent. VNN/Tran Thuy |
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Exports increase sharply, but concerns persist about trade deficit 15:06 Vietnam’s merchandise trade balance in the first half of the year resulted in a trade deficit. Last year, it had a trade surplus for the same period.
 Exports increase sharply, but concerns persist about trade deficit The Ministry of Investment and Trade (MOIT) report on the industry and trade development showed an estimated excess of imports over exports of $1 billion in June. As such, Vietnam had a trade deficit of $1.47 billion in the first half of the year, while it witnessed a trade surplus of $5.86 billion in H1 2020. The domestic economic sector had a trade deficit of over $15 billion, while the foreign invested one, including crude oil, had a trade surplus of $13.54 billion. According to MOIT, Vietnam’s export activities in the first six months of the year still maintained a high growth rate over the same period last year. The exports were described as relatively sustainable, based on uniform growth in all important business fields, including electronics, textile and garment, machines and equipment, seafood, and growth from all important markets, including the US, China and EU. The ministry predicted that import/export activities will continue to be bustling in the time to come, when FTAs (free trade agreements) are implemented in a more comprehensive and effective way. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EFTA) and UK-Vietnam Free Trade Agreement (UKVFTA) create favorable conditions for Vietnam to enter other markets with preferential tariffs, which will help boost exports. Export price increases will also help add to higher export value. The US and Europe have begun step by step removing restrictions after reaching a certain percentage of vaccinated people. A recovery in demand for goods in the world market will allow Vietnam to boost the export of industrial consumer goods.
Trade deficit “The US and Europe have begun step by step removing restrictions after reaching a certain percentage of vaccinated people. A recovery in demand for goods in the world market will allow Vietnam to boost the export of industrial consumer goods”.
Nguyen Viet Phong from the General Statistics Office (GSO) pointed out that imports of consumer goods have increased sharply and the prices of imports have also risen. In the first six months of the year, Vietnam spent nearly $1.8 billion to import CBU (complete built unit) cars, an increase of 94.7 percent over the same period last year. The high imports of consumer goods will weaken the competitiveness of domestically made products. The prices of imports that serve domestic production were higher than the same period last year. The prices of imported computers, electronics and electronic components increased by 1.62 percent, equipment, machines and components by 0.56 percent, fabric 1.65 percent, and steel 7.65 percent. MOIT’s report showed a sharp increase in products that need control and restriction in imports. The import turnover of this group of products reached $10.3 billion in H1, up by 42.3 percent over the same period last year. Of this group, import turnover of vegetables and fruits increased by 17 percent, sweets and cereal products 38 percent, and CBU cars (with less than 9 seats) 67.3 percent. “If Vietnam doesn’t have solutions to restrict the trade deficit, a long lasting trade deficit, especially high imports in consumer goods, will have a negative impacts on the economy,” he said. “This would cause a waste of foreign currency spending and affect domestic products." However, MOIT said the trade deficit is not worrying. In general, the import of input materials for domestic production are always high in the first half of the year and then decrease in the remaining months. Vietnam’s exports reach their peak in the second half of year. The demand for Vietnam’s exports is expected to continue rising in H2, especially the demand for electronics, equipment and machines, wooden furniture, textiles and garments and seafood. The trade balance is expected to see improvement in the time to come. However, the ministry warned that import/export activities may bear negative impacts from the fourth Covid-19 outbreak in many localities, including major manufacturing centers such as Bac Giang, Bac Ninh, Hanoi and HCM City. Meanwhile, Asia continues to be a COVID epicenter with new cases on a rapid rise. Therefore, enterprises need to make great efforts to improve their competitiveness and capability to adapt to new circumstances and grasp new opportunities. Le Quoc Phong, former Deputy Director of the Vietnam Center for Industry and Trade Information under MOIT, noted that Vietnam’s trade deficit is still small. Vietnam is undergoing industrialization and modernization, so demand for imports is very high. As Vietnam mostly does outsourcing and assembling, it needs to import components and input materials in large quantities for domestic production. The small excess of imports over exports is not a big problem. “Looking at the structure of imports, one can see that Vietnam mostly imports means of production. The imports of consumer goods have also increased, but they just account for a small proportion of total import turnover,” Phong added. MOIT’s report showed that in H1, Vietnam’s export turnover was estimated at $157.63 billion, up by 28.4 percent over the same period last year. Import turnover was $159.1 billion, up by 36.1 percent. VNN/Luong Bang |
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VIETNAM NEWS HEADLINES JULY 915:13 Vietnam’s Covid-19 tally soars by 609 The Ministry of Health this afternoon, July 9 reported 609 more Covid-19 cases, with 603 domestic and six imported cases, taking the country’s tally to 25,419. Of the imported cases, three cases were confirmed in Ha Tinh Province, two in Quang Nam and one in Kien Giang. Among the latest domestic infections, HCMC continued to account for the most, 479, followed by Binh Duong with 66, Dong Nai with 17, Bac Giang with nine, Tra Vinh with eight, Bac Ninh and Quang Ngai with seven each, Ba Ria-Vung Tau with four, Hanoi with two and Vinh Phuc, Bac Lieu, Lam Dong and Thanh Hoa with one each. As many as 480 cases were detected at quarantine centers or in areas under lockdown. With the new locally-infected Covid-19 cases, HCMC’s count amounted to 9,895 in the current fourth coronavirus wave, which began on April 27, while Binh Duong Province’s cases topped at 1,119. The latest domestic cases raised the country’s total number of infections in the fourth wave to 21,943. In related news, the Department of Endocrinology at the Dong Nai General Hospital, with over 100 medical workers, patients and caregivers, has been put under lockdown after a female doctor of the department tested positive for Covid-19. The Covid-19 case was detected through screening for 1,500 medical workers at the hospital, with the unknown source of infection, the Dong Nai Department of Health said today. In another development, the Haiphong government has decided to ease anti-Covid-19 measures in Vinh Bao District, which reported the largest number of Covid-19 infections in the city, as the district had undergone 14 consecutive days without fresh Covid-19 cases. The decision was aimed at putting socio-economic activities and residents’ daily lives back on track. At the district’s communes practicing social distancing under the prime minister’s Directive 15, several non-essential services will resume operations from 6.00 a.m. on July 10, but must comply with Covid-19 safety protocols, while nightclubs, bars, karaoke and massage parlors and pubs will remain shut. Meanwhile, the communes of Ly Hoc, Hoa Binh and Cong Hien will stop applying Directive 16 on social distancing and follow Covid-19 infection prevention and control measures in line with Directive 15 instead, which is less stringent than the former. Health Minister proposes HCMC lock down high-risk areas Minister of Health Nguyen Thanh Long has proposed HCMC lock down high-risk areas, while the entire city will practice social distancing under the prime minister’s Directive 16 from tomorrow, heard an online anti-Covid-19 meeting today, July 8. The city’s fight against Covid-19 will decide the success or failure of suppressing the pandemic in nearby provinces such as Binh Duong, Dong Nai and Long An and the country, Long said, proposing some solutions to prevent the spread of Covid-19. Covid-19 tests should be conducted every five or seven days at high-risk areas, said Long, while other parts of the city should take group samples in households for testing. The Ministry of Health will dispatch some 10,000 medical workers to HCMC to help the city collect samples for testing and treat Covid-19 patients. Besides, Minister Long said that HCMC should prepare 50,000 beds at treatment areas for Covid-19 patients who are asymptomatic as these patients account for 70% of the total number of patients reported in the city. All hospitals citywide must make themselves ready to treat ill patients, while Cho Ray Hospital, the HCMC Hospital for Tropical Diseases, Hospital 115 and Gia Dinh People’s Hospital will be in charge of treating seriously ill patients. Also, Long said that in July, some 8.7 million doses of Covid-19 vaccine would arrive in Vietnam and HCMC and nearby provinces would be prioritized for vaccination. The city should run a number of vaccination sites, especially at some residential areas, and arrange different time frames to avoid mass gatherings and ensure safety. Chairing the online meeting, Prime Minister Pham Minh Chinh asked HCMC to adopt more drastic anti-virus measures and make all-out efforts to ward off community spread. Since the current fourth wave of Covid-19 emerged on April 27, HCMC has reported over 8,500 domestic Covid-19 cases to become the country’s largest coronavirus hotspot. 13th Party Central Committee wraps up third plenum The third plenum of the 13th Party Central Committee concluded on July 8 afternoon with the adoption of a resolution, completing all of its working programme after four days. Delivering his closing speech, Party General Secretary Nguyen Phu Trong said the committee acknowledged the efforts of the entire Party, people and army in the implementation of the Resolution of the 13th National Party Congress; the successful organisation of the elections of deputies to the 15th National Assembly and to People's Councils at all levels for the 2021-2026 term; and especially in COVID-19 prevention and control work during the current fourth wave of outbreaks. In the first half of the year, the nation continued pressing ahead with the dual targets of pandemic combat and socio-economic development, taking care of the people's life, while maintaining defence, political security, social safety and order, and promoting external activities in line with global developments of the epidemic. However, Vietnam did not fulfill its socio-economic goals set for the period. The nation faced a host of challenges and difficulties amid increasingly complicated pandemic situation. The Party chief emphasised that the socio-economic development plan should continue to be supplemented and clarified, ensuring an appropriate proportion of spending on development investment and regular expenditure. It is necessary to attach importance to the participation of the whole political system; and to inspection, prevention and combat of corruption and wastefulness, he added. The Party chief directed tightening disciplines and intensifying the fighting against corruption and vested interest in public investment. The Central Committee unanimously agreed on the nomination of 23 additional candidates for a number of positions in the state leadership in the 2021-2026 term./. 376 Covid-19 patients in critical, extremely critical conditions As of July 7, 270 Covid-19 patients were reported to be in critical condition and 106 others in extremely critical condition, making up 3.3% and 1.3% of the total Covid-19 cases, according to the treatment subcommittee under the national steering committee for Covid-19 infection prevention and control. Nine patients are at risk of death. As of this morning, the country’s Covid-19 deaths reached 105, including 70 in the current outbreak, double that of the figure in the third Covid-19 wave. In the first two Covid-19 waves, the country had no Covid-19 deaths. At a meeting on July 7, Minister of Health Nguyen Thanh Long asked localities to establish intensive care units to treat critical Covid-19 patients, with one in Dong Nai and one in Can Tho to be set up first. Long added that the Delta coronavirus variant might raise the death rate, so cities and provinces must focus on the treatment of critical patients. The ministry is drawing up plans for the worst scenarios and reviewing equipment, ventilators, extracorporeal membrane oxygenation machines, oxygen, medicines and protective suits. Minister Long said the number of new Covid-19 cases might surge in the coming days. Dong Nai, Binh Duong, Quang Ngai, Phu Yen, Dong Thap, Long An and Tien Giang have also become pandemic hotspots. He asked these localities to prepare test kits and increase their testing capacities. The Ministry of Health will create favorable conditions for the import of test kits and improve the local test kit production. In HCMC, Long asked the city to test residents in areas under lockdown every three days and those in areas at a high risk of infection every seven days. Record 1,307 local COVID-19 infections reported, fourth wave tally nears 21,000 Viet Nam on Thursday recorded 1,307 domestically transmitted COVID-19 infections, the highest daily rise the country has ever seen. The majority of new cases are in the country's coronavirus epicentre HCM City (with 915 cases) and southern provinces – Bình Dương (135), Đồng Tháp (108), Khánh Hoà (28), Phú Yên (24), Vĩnh Long (17), An Giang (11), Cà Mau (11), Bình Phước (3), Trà Vinh (2), Kiên Giang (1), Bình Thuận (1), Bến Tre (1), Tây Ninh (1), and Hậu Giang (1). Some Central Highlands and central region provinces also reported new community cases – Quảng Ngãi (14), Lâm Đồng (3), Gia Lai (3), and Nghệ An (1). Three northern localities with stabilising situations recorded single-digit rises in local cases – Bắc Ninh with eight patients, Bắc Giang with nine, and Hà Nội with five. There were also seven imported COVID-19 cases detected today. All in all, Việt Nam’s ongoing fourth wave of infections that emerged since late April, characterised by the dominance of highly infectious Delta variant of coronavirus, has reached 20,863 cases, pushing the national tally since the beginning of the pandemic past the 24,000 mark (currently at 24,385 confirmed cases). The health ministry also reported 393 recoveries, bringing the country’s total to 8,950. 105 COVID-19 fatalities have been recorded in Việt Nam so far, 70 in the fourth wave. HCM City pilots home quarantine of F1 cases
The Ho Chi Minh City People’s Committee on July 8 issued a document guiding pilot quarantine of F1 cases at home amid the rapid and complicated developments of the COVID-19 pandemic in the southern hub. F1 cases comprise those who have had close contact with COVID-19 patients and wore medical masks, have rapid negative results to coronavirus SARS-CoV-2 while waiting for PCR tests, or have already finished two-week quarantine at concentrated facilities and tested negative to the virus on the 14th day of quarantine. The municipal People’s Committee asked localities to follow the Health Ministry’s guidelines in terms of infrastructure and equipment for medically-monitored people, persons living in the same houses and health workers. Samples for testing must be collected at least five times on the first, seventh, 14th, 20th and 28th days since quarantine, or at least twice on the 20th and 28th days for those who have finished two-week quarantine. The municipal Department of Information and Communications was asked to partner with the Health Department to adopt technological advances to better manage home quarantine. As of July 8 morning, the city recorded 53,191 people undergoing quarantine, 15,007 of them are in concentrated quarantine facilities and the remainders at home or places of residence./. Vietnam adds 425 cases to national COVID-19 tally Additional 425 COVID-19 cases were added to the national tally from 6:30pm on July 8 to 6am on July 9, raising the caseload to 24,810. Among the new infections, two were imported. Up to 350 cases were recorded in Ho Chi Minh City, while the remainders were found in Long An, Dong Nai, Phu Yen, An Giang, Khanh Hoa, Bac Ninh, Vinh Phuc, Gia Lai and Bac Lieu. As of July 9 morning, the country reported 22,910 domestic cases. The number of infections since the fourth wave of the pandemic broke out in late April amounted to 21,340, of whom 6,176 have been given the all-clear. The health ministry’s Medical Examination and Treatment Department said 8,950 patients have recovered, and the national COVID-19 death toll has reached 105. Among the active patients, 333 have tested negative to the coronavirus once, 203 twice, and 80 thrice. Another 22,647 people were vaccinated on July 8. As of 4:00pm on July 8, nearly 4 million vaccine doses had been administered. A total of 249,532 people have received full two shots./. Vietnamese rescuer honoured with IMO bravery award A search and rescue officer from Vietnam has been selected to receive the 2021 IMO Award for Exceptional Bravery at Sea, after saving the lives of four people from a sunken cargo ship in extreme weather and heavy seas. Tran Van Khoi, 47, works at the Regional Maritime Search and Rescue Coordination Center No.II based in Da Nang. While on duty on October 9, he and colleagues braved extreme weather and heavy seas to rescue four sailors in the sunken cargo vessel Vietship 01. They also received phone calls from President Nguyen Xuan Phuc to commend them on the bravery act. In 2021 there are a total of 37 nominations for the above award, submitted from 23 member countries and four NGOs. During an online meeting of the 125th session from June 28 to July 2, the IMO jury agreed to award the 2021 "IMO Award for Exceptional Bravery at Sea" award to Vietnam's Tran Van Khoi. The award ceremony will be held according to the plan proposed by the IMO secretary general./. Vietnam calls for sharing of information on COVID-19 vaccines Foreign Ministry spokesperson Le Thi Thu Hang said amid increasing complicated COVID-19 situation, Vietnam hopes countries and international organisations to increase the sharing of information, technology, finance and medical supplies, especially vaccines, to jointly prevent and control the pandemic and soon bring life back to normal. Hang said that to date, Vietnam has received four types of vaccines, including nearly 4.4 million doses of AstraZeneca from the COVAX programme and through purchase, along with 1.4 million doses of the vaccine donated by the Government of Japan; 2,000 doses of Sputnik V donated by the Russian Government; 500,000 doses of Vero-Cell by Sinopharm donated by the Chinese Government. On July 7, the first batch of close to 100,000 doses of the Pfizer vaccine arrived in Vietnam, she added. According to the spokesperson, the COVAX programme has also committed to give priority to Vietnam in its upcoming vaccine allocations. It will deliver to Vietnam 2 million doses of the Moderna vaccine provided by the US Government through the mechanism, which are expected to arrive in Vietnam this week. Regarding the use of the 500,000 doses of Vero-Cell vaccine donated by China, Hang said Vietnam will use the vaccine in accordance with the Vietnamese Government’s Resolution 21/NQ-CP issued on February 26 on COVID-19 vaccine procurement and use. She added that at the same time, in response to the request of the Chinese side, Vietnam will vaccinate Chinese citizens working in Vietnam./. Vietnam urges settlement of security, humanitarian issues in West Africa, Sahel A Vietnamese representative called for the settlement of security and humanitarian challenges in West Africa and the Sahel while attending the United Nations Security Council (UNSC)’s meeting on July 8. The event was also attended by Annadif Khatir Mahamat Saleh, the UN Secretary-General’s Special Representative in West Africa and the Sahel and head of the UN Office for West Africa and the Sahel (UNOWAS); and Chantal Ayemou, President of the Cote d’Ivoire Network for the Defence of the Rights of Children and Women. Speakers said over the last six months, West Africa and the Sahel witnessed certain political progress, notably the successful parliamentary and presidential elections in such countries as Niger, Benin, Ghana, Guinea, Cote d’Ivoire, and Burkina Faso. However, they noted, the security situation in the region has continued recording complex developments as a result of growing terrorism and violence among communities. They recognised the good response to COVID-19 by countries in West Africa and the Sahel but also voiced concern that the pandemic has pushed these nations into serious recession, reversed economic and poverty alleviation achievements, and hampered efforts to obtain the Sustainable Development Goals. Saleh emphasised his concern about food insecurity and trans-national crime in many regional countries, along with piracy in the Gulf of Guinea. For her part, Ayemou highlighted several strides in ensuring the rights of women and children in West Africa and the Sahel but also pointed out numerous challenges to this process, especially in securing access to education and healthcare for women. At the meeting, held every six months, UNSC member states condemned the attacks against civilians, UN staff, and UN peacekeepers in the region. They highly valued and affirmed their support for activities of UNOWAS and the G5 Sahel force. They also called on the African Union (AU) and the Economic Community of West African States (ECOWAS) to keep coordinating with the UNOWAS in maintaining regional peace, security, and development. Minister Counselor Nguyen Phuong Tra, Deputy Permanent Representative of Vietnam to the UN, recognised the political process in the region, particularly the recent establishment of new governments and parliaments in some countries. She shared concerns over the security and humanitarian situation in West Africa and the Sahel while condemning the attacks against civilians there. The diplomat appealed to all stakeholders to strengthen the protection of civilians and UN staff and peacekeepers and ensure that civilians’ legitimate interests and humanitarian aid activities are not impeded. Vietnam highly values efforts by the UN, UNOWAS, regional organisations, and the G5 Sahel force to contribute to peace, security, development, and promotion of the political process in the region, Tra stressed. She called for the enhancement of preventive diplomacy, early warning, conflict prevention, and reconciliation during the settlement of regional conflicts, with threats posed by climate change to regional security taken into account./. Fifth Italian Design Day taking place in July The Italian Embassy in Hanoi is organising several events in the framework of the 5th Italian Design Day in Vietnam on July 8 and 9. The Italian Design Day initiative has received warm response from many countries in the world, including Vietnam. Each year, 100 Italian cultural ambassadors in 100 cities will showcase and exchange ideas with art enthusiasts, architects, designers and landscape architects to seek answers for intriguing questions regarding future cities and sustainable development. Ambassador of this year's Italian Design Day - architect Massimo Roj will join the webinar from Milan to provide young Vietnamese architects and the public with an overview of trends as well as solutions for some urban revitalising projects in Italy, Vietnam and other countries./. HCM City ensures supply of essential items during social distancing Many people in Ho Chi Minh City have been in fear of food shortages over recent days, since COVID-19 triggered the closure of wholesale markets which were linked to a growing number of infections. The city’s Department of Industry and Trade therefore identified a number of solutions to guarantee sufficient supply of essential items for local residents. The Binh Dien, Thu Duc, and Hoc Mon wholesale markets in District 8 provide 70 percent of Ho Chi Minh City’s food supply but were forced to temporarily close due to COVID-19. The market’s wholesalers have to transport their goods elsewhere and change their sales methods. Modern distribution networks also played an important role in getting products to retailers after disruptions were seen in food supply at wholesale markets. With the sound production capacity of local enterprises and solid supply chains from other localities, there have been no shortages of foodstuffs or essential goods in Ho Chi Minh City. Though more than 100 markets and 65 supermarkets and convenience stores were shut due to COVID-19, goods were readily available at the 1,900 other shops in the city. With concerted efforts from the trade sector, there will be no shortages of essential items during social distancing. As the pandemic has become more complex, local people should remain vigilant and not go out to buy non-essential items./. Summer days spotlighted at Hanoi exhibition The vibrant shades of summer are highlighted at a painting and sculpture display at the Exhibition House at No. 16 Ngo Quyen Street in Hanoi. Paintings of corners of Hanoi’s Old Quarter under the shades of towering trees and tranquil paddy fields, or sunny yard or summer – inspired sculpture are available for contemplation. The exhibition will run until July 16./.
Ho Chi Minh City – Phu Quoc flights temporarily suspended The Ministry of Transport has approved the temporary suspension of flights between Ho Chi Minh City and Phu Quoc island city in Kien Giang province. Deputy Minister of Transport Le Anh Tuan signed a decision on the suspension of flights beginning at 0:00 on July 8 until further notice. The move came as HCM City is recording a large number of COVID-19 cases in recent weeks. The Ministry of Transport tasked the Civil Aviation Administration of Vietnam to coordinate with relevant agencies and units under the People's Committee of Kien Giang province to monitor the COVID-19 situation to make adjustments to flights to/Phu Quoc Airport in a timely manner. The Ministry of Transport had previously agreed to suspend flights from HCM City's Tan Son Nhat International Airport to Ba Ria – Vung Tau, Thanh Hoa, Quang Ninh, Hai Phong, Gia Lai, Quang Binh, Nghe An, Quang Nam, and Thua Thien – Hue./. Vietnam National Administration of Tourism, La Vie launch novel programme The Vietnam National Administration of Tourism (VNAT) and La Vie Co., Ltd. have launched an initiative that helps people sit at home and still get a glimpse of the beauty of the country’s nature amid the raging COVID-19 pandemic. They have selected more than 100 natural wonders and presented them through a limited edition collection of La Vie mineral water. Customers can choose from more than 100 different labels featuring scenic spots such as the ‘four great peaks’ of the north-west and the mysterious caves of the ‘Kingdom of Caves’ in central Quang Binh province. A spokesperson for the Vietnam National Administration of Tourism said the initiative is among activities to promote the beauty of Vietnam to tourists in a new and unique way. A Nestlé Group company, La Vie has been a pioneer in environmental initiatives./. HCM City assures supply of essential goods to remain normal Ho Chi Minh City’s Department of Industry and Trade said it has plans to ensure uninterrupted supply of essential goods to meet consumer demand though all three of the city's largest wholesale markets have been closed. Binh Dien Wholesale Market in District 8 was closed on July 6 morning after recording at least 39 cases of COVID-19 through mass testing, and will reopen when it can comply fully with the pandemic prevention and control protocols. Traders there have been told to switch to online sales and have their products delivered to customers’ homes until then. The city will also strengthen mobile sales to ensure there is an adequate supply of essential items like food. The department has worked with businesses and district administrations to ensure no small trader hikes prices. Whatever the situation, authorities and key businesses would ensure supply is always adequate provided people do not hoard, said Nguyen Nguyen Phuong, deputy director of the department. With the three largest wholesale markets in the city having to temporarily shut down, Thu Duc and Hoc Mon being the others, goods coming from provinces to the city will go directly to traditional markets. The department said the 1,962 food supply points (106 supermarkets, 220 traditional markets and 1,636 convenience stores) in the city have plans for stockpiling to ensure supply of food and other essential items is adequate. The city also plans to strengthen the capacity of traditional markets as well as modern distribution systems to maintain their key role in distributing essential goods. Bui Ta Hoang Vu, director of the department, said the city held a meeting with Tay Ninh province to set up a buffer zone for transhipment of goods between the two places. Goods coming from Tay Ninh to the city will be gathered in a place between Cu Chi and Trang Bang it will disinfect districts where both they and the vehicles transporting them before they are brought to traditional markets. The 30-hectare Binh Dien Wholesale Market has thousands of stalls selling mainly seafood, pork and vegetables. It has around 20,000 people working every night during normal times, but during social distancing only 9,000-12,000 people were allowed to work there, yet the risk of spread of infection remained very high. It has thousands of stalls, and some 5,000 cars and trucks and 2,000 three-wheelers enter it every day. Eight thousand tonnes of fruits and vegetables come to the city’s three wholesale markets every day, meeting 70 percent of demand. Supermarkets, shopping malls and other retailers supply the remaining 30 percent./.
2022 AFC U23 Asian Cup qualification draw slated for July 9 A draw for the 2022 Asian Football Confederation (AFC) U23 Asian Cup qualification will take place in Kuala Lumpur, Malaysia, at 2pm (Vietnam time) on July 9, the Vietnam Football Federation said on July 8. A total of 43 teams will compete at the competition, including 20 East Zone squads from East and Southeast Asia, which will be divided into five groups of four, according to the AFC. Taiwan (China), Indonesia, Mongolia, Singapore and Thailand will be hosts of such groups. Vietnam are in Pot 1 out of the four seeded groups in the East Zone, together with the Republic of Korea, Australia, Thailand and the Democratic People’s Republic of Korea. Meanwhile, Bahrain, Jordan, Kuwait, Qatar, Tajikistan and the United Arab Emirates will be hosts in the West Zone. The qualification will be held from October 23 to 31, 2021. Due to COVID-19, in each group, teams play each other in a round-robin format. The eleven group winners and the four best runners-up qualify for the final tournament, slated for next June in Uzbekistan./. Farmers need training to develop digital agriculture Farmers need more training on digital technology to bring the industry to another level, experts have said. Nguyen Duc Tung, general secretary of the Vietnam Digital Agriculture Association (VIDA), made the statement said at a launch ceremony for a report on digital transformation in agriculture in Hanoi on July 7. “Vietnam has adequate facilities and infrastructure to implement digital transformation in the agricultural sector,” he said, adding that farmers’ technology adaption was among the factors that needed most attention when building digital agriculture. According to the report, although Vietnam was an agricultural country, Vietnamese agriculture has still not had strong development due to many internal and global problems. The multi-dimensional impact of the Fourth Industrial Revolution and the COVID-19 pandemic has forced the economy and agriculture to transform, according to the report. The report said though digital transformation was inevitable and the first results of the change have shown potential, the digital transformation process of agricultural production was still long and full of challenges. The report considered the e-government programme of the Ministry of Agriculture and Rural Development and other regulations in data sharing as positive points in the process, but the weakness of the system was that agricultural data was not connected from the local to national level while there was a lack of human resources to use technology in farming. Most agriculture students don’t know much about technology, Tung said. At the same time, links between enterprises in the value chain and ties those in the chain need to ensure better harmony in terms of benefits and responsibilities, according to the report. The report said the lack of funding for digital transformation was a problem faced by most businesses, especially small and medium-sized firms, the most common business type in Vietnam. According to VIDA, the report provides an overview of local agriculture by approaching the core stakeholders of the industry like farmers, businesses and policymakers through online surveys and in-depth face-to-face interviews on the digital transformation process in Vietnam. VIDA's goal in the coming years is to develop the annual report to become a total solution for the digitisation of the agricultural sector. Tung said the report is hoped to the premise for the development of business evaluation indicators in the industry. VIDA’s report also recommended building a common and uniform database, developing infrastructure with the participation of many parties, developing policies to support capital investment for businesses, developing an innovation system focusing on new technology, and promoting awareness through communication. Despite the COVID-19 pandemic, Vietnam saw a year on year increase of 30.3 percent in agro, forestry and seafood product exports to 22.83 billion USD in the first five months of 2021, reported the Ministry of Agriculture and Rural Development (MARD). Press freedom in Vietnam - Undeniable objective reality This year, the Reporters Without Borders (RSF) organisation once again issued biased, unobjective, and completely groundless assessments when listing Vietnam among the countries with little media freedom. The RSF assessments are far from new but repeat the old mindset from the previous years and show that this organisation has turned a deaf ear to the reality of the protected freedom of speech and the press in Vietnam. It is a fact that the State of Vietnam has always worked to protect and promote fundamental human rights, including the right to freedom of speech, the press freedom, and the right of access to information, which were regulated in the Constitution and related legal documents and have been practiced in the political, economic, and social aspects in the country. Ensuring all citizens can practice the right to freedom of speech and of the press under legal regulations is a consistent policy of the Vietnamese Party and State.
Over the past years, the State has made unceasing efforts to complete the legal system so as to facilitate and protect citizens’ fundamental rights relevant to the freedom of speech. The rules set in the revised Press Law and the Law on Access to Information, both adopted in 2016, completely match international documents on human rights and the right to freedom of speech and of the press. It is regrettable that the RSF has intentionally ignored the legal documents enforced in Vietnam for many years. The freedom of speech, freedom of the press, and freedom of information in Vietnam are also clearly reflected in the development of diverse types and content of the press. In Vietnam, there are now about 41,000 personnel working in the media sector, 779 press agencies, and 72 others licensed to operate in radio - television broadcasting with 87 radio and 193 TV channels. Press freedom in Vietnam - Undeniable objective reality hinh anh 2 In recent years, activities of press outlets in Vietnam have demonstrated the right to freedom of speech and become an important bridge linking the country with international friends. Even international media pointed out the “information transparency” factor for many times when reporting on the measures helping Vietnam to contain the COVID-19 outbreaks in 2020. Many foreign newspapers also highly valued the Vietnamese Government’s effective use of social media and information technology for the pandemic fight. David Hutt, a British journalist covering Southeast Asian politics, also held that when the pandemic broke out, the Party and State of Vietnam were highly transparent and open in sharing and updating data about COVID-19, which is one of the reasons why Vietnamese people put their trust in the anti-pandemic measures taken by the Government. Besides, the RSF has intentionally turned a blind eye to the fact that Vietnam was recognised as one of the countries with the fastest growth in internet usage, with more than 68 million internet users, or 70 percent of its population. The internet freedom and the freedom of expression on social networks have always been practiced within the legal framework in order to guarantee cybersecurity and prevent the abuse of social networks to violate Vietnamese law or create a pretext for external forces to intervene in the country. In Vietnam, no one is brought to trial or arrested just for expressing their opinions or protecting human rights. Only the ones who take advantage of the freedom of speech or of the press to infringe the State’s interests, the rights and legitimate interests of collectives or individuals, and break the law are handled as in line with legal regulations. That matches international law as well as law in many countries. It is obvious that the guaranteed freedom of speech and of the press in Vietnam is an undeniable reality. The RSF has intentionally negated the Vietnamese Party and State’s efforts in this regard to make wrong and groundless assessments. Its arguments show that this organisation, with bad intentions, is distorting and twisting the truth about the freedom of the press in Vietnam. The RSF itself is running counter to the journalism principle of respecting and not distorting the truth./. Festival promotes culture of Mong ethnic group A festival highlighting the culture of the Mong ethnic group is scheduled to be held in September in the Central Highlands city of Lai Chau, with the participation of 14 cities and provinces. The three-day festival, in its third edition, will feature artistic activities and a fashion show, along with a famtrip to scope out community-based and eco-tourism in Lai Chau province. There will a conference promoting investment, trade and tourism in the locality, the Ministry of Culture, Sports and Tourism said. The schedule would be adjusted to match the latest COVID-19 situation, according to the ministry./. Dong Thap works to preserve bio-diversity in agriculture Preserving and developing bio-diversity in agriculture production and wetlands have been a priority of the Mekong Delta province of Dong Thap over the years. The province has surveyed eco-systems to identify the specific areas and species of plants and animals that should be preserved, including lotus, water lily, cajeput trees, bamboo and other indigenous plants, especially rice varieties. Vice Chairman of the provincial People’s Committee Huynh Minh Tuan said that the province is also focusing on developing animal husbandry, aquaculture and plants in the Dong Thap Muoi (Plain of Reeds) area in the Tram Chim National Park, and some other eco-tourism sites. Fish and other aquatic species, for example, were often released into the wild on public holidays. The province releases more than 2 million fish of various species into the wild each year. At the same time, focus will be on the reproduction of indigenous plants and animals that have high value, and the use of advanced techniques in agricultural production to promote bio-diversity, thereby raising public awareness of the work and sustainable bio-diversity in agriculture production. Dong Thap is also stepping up the building travel tours in tandem with environmental protection./. Ben Tre’s export turnover up 14.1 percent in six months Export turnover of the Mekong Delta province of Ben Tre reached more than 656 million USD in the first half of 2021, up 14.11 percent from the same period last year. According to Director of the provincial Department of Industry and Trade Nguyen Van Be Sau, the structure of export goods of the province continued to improve towards reducing export of raw materials and increasing shipment of processed and industrial products, creating conditions for local goods to participate more deeply in the global production and supply chain. Main exports of the locality saw high growth in value compared to the same period last year, with coconut products increasing by 15.14 percent, garments, 91.92 percent; handbags, 27.61 percent; and electronic products and spare parts, 14.63 percent. Tran Ngoc Tam, Chairman of the provincial People’s Committee, attributed the positive results to the adoption of measures aimed at supporting enterprises in maintaining sustainable growth in potential export markets. Bui Duong Thuat, Director of Mekong Fruit Import-Export Company in Chau Thanh district’s Huu Dinh commune, said the company has exported nearly 3 million fresh coconuts to the United States, Canada, Taiwan (China), Japan, the Republic of Korea and Singapore since the beginning of this year. It has aligned with 300 households in Chau Thanh and Giong Trom districts to purchase coconuts with an area of about 200 hectares. Thuat said that the company’s exports were not affected by the COVID-19 pandemic but it faced difficulties due to high transportation fees and lack of containers. Ben Tre aims to generate 845 million USD from exports in the last six months of this year to bring the total export earnings in 2021 to 1.5 billion USD. To this end, the department plans to ramp up trade promotion to help local producers expand their markets. Businesses will be assisted to speed up investment in new projects to increase production capacity, creating favourable conditions for the application of science and technology advances in production to improve the competitiveness of enterprises in the international arena. The province has about 130 exporters and its products are found in 128 countries and territories./. Vietnam upholds reconciliation to end violence in DR Congo Ambassador Pham Hai Anh, Deputy Permanent Representative of Vietnam to the United Nations, reiterated the need to promote reconciliation in a bid to put an end to violence and address security challenges in the Democratic Republic of Congo. Addressing a meeting of the UN Security Council (UNSC) on July 7 to discuss the situation in DR Congo and activities of the UN Stabilisation Mission in the African nation (MONUSCO), the ambassador stressed the importance of intensifying efforts to address root causes of the instability in the east DR Congo, including prevention of illegal acts related to natural resources and promotion of socio-economic development. He upheld the vital role of regional cooperation and support of the international community to help authorities and people of DR Congo to surmount current hardships. Bintou Keita, the Secretary-General’s Special Representative for the DR Congo and MONUSCO head, briefed participants on the situation in the country in the recent three months. She reported that a new coalition government, which took power this April, has exerted efforts in State management reforms and ensuring security and socio-economic development. The new government has continued to bolster bilateral and regional relations in an attempt to tackle common security challenges and foster integration. However, the east of DR Congo continues to see complicated security situation, primarily due to illegal natural resources exploitation and smuggling of armed groups, and ongoing violence between communities in some provinces, Keita added. Instability, diseases and natural disasters have dealt a blow to humanitarian activities in the recent past, while the adverse impact of COVID-19 on socio-economic development hinders local people’s access to fundamental services, especially in the health sector. Participants acknowledged the commitment of DR Congo’s government in promoting reforms, and maintaining stability and development. They also expressed a concern about security in the eastern provinces and worsen humanitarian crisis in the past months. At the meeting, delegates also extended condolences to Haiti for the assassination of President Jovenel Moise which occurred the same day./. Pandemic-hit Bac Giang province returning to normal The northern province of Bac Giang, which was the country’s biggest COVID-19 hotspot, is returning to normal after it basically put the pandemic under control. The province has to date registered 5,700 COVID-19 cases since the fourth wave of outbreaks hit the country on April 27. Over the past days, fewer infections, even zero cases, were reported. It is working hard to complete the dual goal of pandemic containment, and production recovery and socio-economic development. Vice Chairman of the provincial People’s Committee Phan The Tuan told the Vietnam News Agency (VNA) that as of June 30, Bac Giang had counted 481 FDI projects with total registered capital amounting to 6.82 billion USD. The locality had suspended the four industrial parks of Quang Chau, Van Trung, Song Khe-Noi Hoang and Quang Chau, to prevent pandemic spread, according to the official. Many FDI firms have donated machines and medical equipment in service of the pandemic combat in the locality, while contributing nearly 10 billion VND (433,453 USD) to the national COVID-19 vaccine fund. During the outbreak, Bac Giang prioritised the production of essential goods and the operation of enterprises that join the global supply chain, Tuan said. Businesses in the locality allowed only employees testing negative for the coronavirus to work, offered accommodations and pick-up and drop-off services, and divided workers in groups in an efforts to prevent pandemic spread. The firms have also established groups in charge of COVID-19 prevention and control, and conducted testing for their employees. The model has proven effective, Tuan said, further explaining that it has helped to maintain production and control the pandemic. As of the end of July 5, 160 businesses, mostly FDI firms at industrial parks, with 60,000 workers, had resumed operations, according to the official. Tuan said Bac Giang has set up a steering committee for the restoration of industrial production, trade and services, along with working groups tasked with guiding enterprises in COVID-19 prevention and control, and removing difficulties in production and business./. Vietnam, Canada hold bilateral defence consultation The 2021 Vietnam - Canada defence consultation took place via videoconference on July 7, highlighting that defence cooperation has been carried out effectively and reaped encouraging outcomes, the Quan doi Nhan dan (People’s Army) daily reported. The Vietnamese delegation included Lt. Gen. Vu Chien Thang, Director of the Foreign Relations Department at the Ministry of National Defence, along with representatives of the ministry’s agencies, and the military attaché of Vietnam to the US and Canada. The Canadian side was led by Assistant Deputy Minister (Policy) at the Department of National Defence Peter Hammerschmidt, who was joined by the military attaché of Canada to Vietnam. The officials affirmed that defence cooperation between the two countries has continually received attention from the two ministries’ leaders and been implemented fruitfully. They agreed to maintain the annual defence consultation and defence policy dialogue, increase high-level meetings, while strengthening ties in personnel training, UN peacekeeping operations, and maritime security. Thang expressed his hope that the Canadian Department of National Defence will pay attention to and support the cooperation fields Vietnam has demand for such as war aftermath settlement, defence industry, military medicine, humanitarian aid, and disaster relief. He stressed that Vietnam will back Canada, on the basis of ASEAN’s consensus principle, when the latter takes part in the bloc’s cooperation mechanisms. At the consultation, the two sides also discussed and reached an agreement on the defence cooperation plan for 2021 - 2023, as well as the preparations for the Vietnam - Canada defence policy dialogue at the deputy ministerial level this year./. France-Vietnam Parliamentarians’ Group affirmed continued support for Vietnam The France-Vietnam Friendship Parliamentarians’ Group in the French Parliament will continue coordinating closely with the France – Vietnam Parliamentary Friendship Group of the Senate to support Vietnam in strategic issues in the coming time. The statement was made by Stephanie Do, President of the France-Vietnam Friendship Parliamentarians’ Group, during her reception for Vietnamese Ambassador to France Dinh Toan Thang on July 7. She expressed her delight at fine development steps in the bilateral relationship, reflected through recent discussions of the two countries’ high-ranking leaders amidst the COVID-19 pandemic. Ambassador Thang acknowledged contributions made by Stephanie Do and her group to developing the diverse and multifaceted cooperation between the two nations in general and the two legislative bodies in particular. He thanked the group for canvassing the European Parliament to approve the EU-Vietnam Free Trade Agreement, and for organising activities on Vietnam’s topic issues. He showed his hope that group will continue helping Vietnam through encouraging EU member countries to pass the EU-Vietnam Investment Protection Agreement, supporting the settlement of fisheries-related issues in the Vietnam-EU relations. The diplomat affirmed Vietnam always attaches importance to its relations with strategic partners, including France. At the meeting, both sides agreed to maintain efforts to speed up delegation exchanges and prepare for the 12th Vietnam - France decentralised cooperation conference slated to be held in Hanoi in late 2022./. Hanoi: 444 public services added to national public service portal As many as 444 online public services were added to the national public service portal in the first six months of 2021, according to a report of the Hanoi People’s Committee. The report said 14 administrative procedures were replaced while 175 others were abolished in the period. Meanwhile, 100 percent of administrative procedures were processed through the one-stop-shop mechanism, it added. According to the report, the city’s public service portal received over 1 million administrative records in the January – June period, with the rate of that processed on-time reaching 91 percent. The municipal authorities are providing 1,217 online public services at level 3, and 468 at level 4./. Flyers from/to HCM City must provide negative COVID-19 test result: CAAV Air passengers are required to present a valid negative coronavirus test result before travelling from/to Ho Chi Minh City, according to a new directive by the Civil Aviation Authority of Vietnam (CAAV) on intensifying COVID-19 response. The CAAV requests all airport employees, especially those working at HCM City’s Tan Son Nhat International Airport, to get at least one dose of COVID-19 vaccine or have proof of a negative COVID-19 test conducted no more than 72 hours. Both rapid antigen and PCR test evidences are accepted. The same policy is applicable to aircrew serving on flights from/to HCM City, who are also advised to refrain from leaving the airport to travel to the city. The aircrew should stay inside Tan Son Nhat International Airport before boarding the next flight, the directive says, adding that surfaces of air cargoes from/to the city must be disinfected. It also ordered a halt of international flights to HCM City, except for those receiving permission of the National Steering Committee on COVID-19 Prevention and Control. The CAAV requests airlines to instruct passengers to keep physical distance at airports, and increase the number of in-service airside transfer buses to make sure their passenger load does not exceed 50 percent of seating capacity per trip. On July 8 afternoon, the authority issued an urgent notice requesting a reduction of seats available for sales on flights between HCM City and Hanoi, following a spike in COVID-19 cases in the country’s southern hub over the recent weeks. Accordingly, national flag carrier Vietnam Airlines must sell no more than 700 seats on its flights between the two major cities in each direction daily while the limit for Pacific Airlines, Bamboo Airways and Vietjet Air ranges from 200 – 400 seats per day. There are no restrictions on cargo flights, the notice adds. The policy is applied from 0:00 hours July 9 throughout July 23./. Copper artefacts unearthed in central Nghe An province The unearthed artefacts include three copper pots of different sizes and one copper kettle. While the pots have no handles and are decorated with lizard figures, the kettle has its spout and handle decorated with the patterns of a dragon head and dragon tail. After receiving the information about the discover on June 30, Quy Hop district’s authorities directed the Bureau of Culture and Information to work with Chau Ly commune’s authorities to verify the artefacts. The artefacts are being temporarily preserved and managed by the Chau Ly authorities while waiting for appraisal by superior authorities. The Quy Hop authorities has also notified the provincial Department of Culture and Sports of the discovery. The Nghe An Museum said that will send specialists on relics and antiquities to appraise the artefacts. A representative of the heritage management department of the Nghe An Department of Culture and Sports said the kettle with dragon handle is believed to date from the Tran dynasty (1225–1440) and the pots, based on their designs and patterns, could be from the Le dynasty, around 500 years ago. “These are precious artefacts of scientific and historical value associated with the development of Quy Hop district,” he said. Previously, the district also discovered precious antiques such as bronze drums or bronze Buddha statues. Vietnamese painter portrays women’s inner beauty Women's aspirations for life and their emotions are the inspiration behind Vietnamese painter Nguyễn Hiển’s art, which will be displayed in Hà Nội from today. Due to the current COVID-19 pandemic, the inauguration ceremony of the exhibition, entitled Vô Hình & Hữu Hình (Invisible & Visible), will not be held but the event will open to limited visitors to avoid gatherings. Invisible & Visible is a joint exhibition between Hiển and another colleague, but the painter considers it as his solo exhibition as their paintings are displayed in two different spaces. He himself has nearly 30 paintings exhibited this time, all of which were painted from 2018 till 2021. “This is the period when I develop a new style of painting and I really like it," Hiển said. It fits who I am and my personality. I paint women with a suppressed mood, wanting to explode to get out of that deadlock.” Artist Nguyễn Hiển is pictured next to one of his paintings. Photo tuoitrethudo.com.vn “To the women in my paintings, I paint the beauty that I find in them. I reckon that beauty is more than just appearances. Instead, beauty is found in the interior, patience, endurance and sacrifice. In addition, women also have the beauty of intense desires for love and silent emotions. “I might love women in my own way. To me, Vietnamese women are very admirable. I have been obsessed with the little women driving their children on motorbikes in the middle of heavy traffic, which looks extremely dangerous. What is the joy of those women? What do they yearn for? I pondered and painted about their silent desires. How can the naked women in my paintings be attractive when deep inside them is always unresolved anxiety,” the painter said. Invisible & Visible was originally scheduled to take place in May but postponed until July due to the fourth outbreak of the pandemic. However, during the time waiting for his solo exhibition to officially take off, Hiển has finished many paintings all of which are named Chờ Đợi (Waiting) and numbered like Waiting 1 or Waiting 2. The exhibition at 29 Hàng Bài Exhibition Hall will open until July 13. Born in 1974 in Hải Phòng City, Hiển graduated from the University of Industrial Fine Arts in 2001 and later became a member of the Viêt Nam Fine Arts Association. The painter who is now based in HCM City has had his artworks exhibited in many prestigious events such as the National Fine Arts Exhibition in 2010, the exhibition of the Viêt Nam Fine Arts Museum in 2012, and group exhibitions held in the UK and Malaysia in 2015 and 2016, respectively. Thu Duc City issues grocery cards, limits shoppers in traditional markets Thu Duc City in HCM City is handing out grocery cards and numbered tickets to limit the number of shoppers inside traditional markets. The initiative aims to create a safe environment for market traders and shoppers, ensuring that supply of essential goods remains smooth amid social distancing within the markets. Thirty-four wards and traditional markets are tasked with preparing grocery cards on which shoppers register and enter their personal info when they enter the markets. The cards come with QR codes to quickly identify each shopper in future shopping trips. Numbered tickets are handed to shoppers at the markets’ entry, and are used to manage and limit the number of people inside at any given time. City wards and markets have been told to seal off non-main entry gates to create smooth, one-way routes. Staff will focus on the main gates to manage the tickets, cards and number of entries. Shoppers have to maintain a minimum of 1.5 metres distance from others, and cannot enter the markets without the assigned cards. Many markets in Thu Duc City have carried out this initiative, issuing more than 5,500 cards to shoppers. Other markets are making preparations to carry it out in the near future. HCM City is the number one COVID-19 hotspot in the country, with more than 8,500 cases. It has been under a social distancing order since May 31, and began a lockdown for 15 days starting from July 9 midnight under Government Directive 16. As of July 7, 122 traditional markets in the city had been closed, accounting more than half of the number in the city. The city’s three wholesale markets have been closed as well. Many markets around HCM City have been assigning grocery cards to shoppers at traditional markets, some of which have been doing so for more than a month. Five types of Coronavirus spread in Ho Chi Minh City There have been five types of Coronavirus reported in the virus hotspot of Ho Chi Minh City, according to Ho Chi Minh City Centre for Disease Control (HCDC). HCDC's deputy director Nguyen Hong Tam revealed at a meeting on July 8 that the five Coronavirus types are from Europe, the UK, South Africa, Uganda, and India. "The city is now facing the fast spreading of the highly contagious Indian Delta strain in the on-going fourth virus outbreak," Tam said. "As of Thursday evening, we have recorded 9,066 Covid-19 infections since the fourth outbreak started in late April." Ho Chi Minh City has imposed a 15-day social distancing period starting from July 9. The city has prepared for a scenario of up to 15,000 Covid-19 patients as hundreds of new cases are reported daily in recent days. Hanoi authorities to provide financial support for Covid-19 screening tests Hanoi People's Council has issued Covid-19 prevention regulations in which the authorities will provide Covid-19 screening tests for free for people who must be tested by the requests of the city authorities. The cost will come from the state budget. In case there are sponsors or other sources of funding, the money that comes from the state budget will be reduced. Hanoi People's Council had also reached an agreement on various special funding amid the Covid-19 pandemic including financial aid for meals and other support for frontline workers. On July 7, the Ministry of Health sent an official document to the provincial and city people's committees, departments of health about the costs of several types of Covid-19 tests such as the rapid test and the Real-time PCR tests. Hanoi suspends public transport to 14 localities Hanoi has requested the halt of public transport from the city to 14 Covid-19-hit cities and provinces from today, July 8. The move has been issued amid the pandemic outbreaks in many southern localities. Hanoi has banned the operations of taxis, app-based car services, buses and coaches from 14 cities and provinces of HCM City, Binh Duong, Dong Nai, Khanh Hoa, Phu Yen, Dak Lak, Quang Ngai, Quang Ngam, Danang, Thua Thien-Hue, Ha Tinh, Nghe An, Thanh Hoa and Ha Nam. This rule is not applied to vehicles transporting company workers. The suspension will be valid until the listed localities do not record any local Covid-19 infections for 14 consecutive days or until further notice. Local stations are asked to tighten control over vehicles to detect violations. From 6 pm today, residents in Hanoi were also banned from doing exercises outdoors. They are advised to go out only in necessary cases for Covid-19 prevention. Earlier, people in Hanoi were allowed to do exercises outdoors again as the pandemic in the city had been brought under control. Exhibition honours Hanoi’s public security force An exhibition entitled “75 Years of the Capital City’s Public Security Force - Historical Milestones" officially opened in Hanoi on July 7. On display are nearly 200 photos, documents and artifacts that briefly introduce the process of formation and development as well as the outstanding feats of the People's Security Force of the whole country in general and the capital city in particular. Thereby, they affirmed the correct and wise leadership of theParty and State towards the task of protecting national securityand building a regular, elite, modern people's public security force along with the core role of the people’s security force in the cause of security and order protection. The exhibition also aims to honour the generations of officers and soldiers of the public security force in Hanoi in the revolutionary cause of the nation. The event is also expected to contribute to political and ideological education as well as the promotion of traditional history among younger generations today. The exhibition will last until July 16. Colourful mural paintings in fishing village Following uncountable rainy and sunny seasons, the brilliant mural paintings in Canh Duong Village, Cảnh Hoa Commune, Quang Trach District in the central province of Quang Binh have faded over time; however, the echoes of a land imbued with its coastal cultural identity still seem to hold on visitors and coax them into scheduling a return date. The fishing village at the mouth of Loan River is familiar to many people through the song “Quang Binh, que ta oi” (Quang Binh, my homeland) with its romantic lyrics. Since 2018, visitors have come to Canh Duong because it is famous as the first mural village of the land of “hot winds and white sand”. Around 50 vivid attractive 3D mural paintings are on display along the road from the ancient temple to the entrance to the sea, each wall and gate of local households are no longer gray concrete slabs. The vibrant art tells the history of the village’s development. Several murals depict ancient times when the village was established, while many others reflect strong fishermen reaching out to the sea or locals paying their respects in the Cau Ngu (Whale Worshipping) Festival, hoping for a peaceful sea and bountiful harvest. Through many mural paintings, people can see the locals’ pride in their tradition of a scholarly land honoured as one of the eight famous villages of Quang Binh Province. It is also well-known for its revolutionary spirit during the war against the French colonialists. The colourful paintings which record the daily life of the people in this coastal land are also equally attractive. Visitors will be interested in these idyllic scenes with basket boats on the shore, fishing activities as well as images of beautiful smiling babies and bicycles leaning on the village roads. They are rustic but familiar. Another indispensable part of the journey to Canh Duong village is the Linh Ngu temple, the temple dedicated to the village’s ancestors and the adjoining whale cemetery which has been the resting place of whales for hundreds of years. Canh Duong has also a space to display two large fish skeletons in their original shape so that visitors can understand the origin of the name “Village of Whales” that locals call this land. Thuan Kieu Plaza requisitioned as Covid-19 field hospital HCMC is setting up its fifth Covid-19 field hospital at Thuan Kieu Plaza, now known as the Garden Mall, in District 5, to provide medical treatment to Covid-19 patients, given the city’s cases exceeding 8,500. This morning, July 8, tens of workers were dispatched to the three-tower complex to start work on the field hospital which a source familiar with the situation said will occupy two of the 33-story three towers. The workers were asked to make mandatory health declarations before entering the site, the local media reported. Many areas of the complex were disinfected yesterday, while construction materials have been gathered at the location since yesterday afternoon. The installation at the field hospital is expected to take a week. Once completed, the relevant units will gather medical supplies and hand over the field hospital to the HCMC Department of Health. The Thuan Kieu Plaza was built in 1994, with a floor area of some 100,000 square meters in the district’s Ward 12. It has hundreds of apartment units and functional rooms. Earlier, the city had requisitioned the 1,000-bed dormitory of the National Defense and Security Training Center and the 4,000-bed dormitory Zone A, both under the Vietnam National University-HCMC, as Covid-19 Field Hospital No.1. Besides this, the city converted resettlement apartment buildings in Thu Duc City, District 12, and Binh Chanh District into three Covid-19 field hospitals, with a total of around 10,000 beds to provide treatment for coronavirus patients. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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VIETNAM BUSINESS NEWS JULY 1015:36 Pork imports surge during first half of 2021 Pork items were mainly imported from markets such as Russia, the United States, India, the Netherlands, and Poland, with Russia making up the largest supplier. Throughout the Jan-May period Vietnam imported 45,700 tonnes of meat and meat products worth US$97.4 million from Russia, up 437.5% in value year on year. The first half of the year saw Vietnamese livestock exports increase by 9.2% to US$196 million, of which the export of milk and dairy products rose by 35% to reach US$60 million, whilst the export of meat and meat products soared by 30.8% to US$54.6 million. Nguyen Van Trong, deputy director of the Department of Livestock Production under the MARD, said due to the impact of the African swine fever, the amount of pork imported from abroad to Vietnam has recorded a sharp increase since 2019. Trong also noted that the increase in pork imports should not be considered a matter of concern as the import volume merely makes up 4% of the country’s total meat imports. Indeed, due to a sharp decline in pork consumption, the amount of meat imported this year is anticipated not to be equal to last year’s figures. Furthermore, the price of imported pork remains relatively cheap, fluctuating at around VND50,000 per kilo, thereby resulting in the price of live hog plummeting. However, consumers are forced to purchase fresh pork at high prices, ranging between VND120,000 and VND130,000 per kilo at markets, Trong said. This situation can largely be attributed to the emergence of many intermediary stages in the process of distributing pork to local markets. Pham Cong Thieu, director of the National Institute of Animal Sciences, said it is necessary to limit pork imports in the future to promote the domestic husbandry industry. Gov’t renews criteria for classification of SOEs Deputy Prime Minister Le Minh Khai has recently signed Decision No. 22/2021-QD-TTg on the criteria for classifying the wholly State-owned enterprises, partially State-owned enterprises undergoing restructuring in 2021-2025. Uder the decision, the State shall hold 100% of charter capital in SOEs operating in 13 fields and sectors including mapping services for national defense and security, manufacture and sale of industrial explosives, electricity transmission, national electricity system dispatching, management of electrical grids, construction and operation of major power plants, and national defense and security, lottery business, printing and manufacture of notes and gold bullion and golden souvenir, credits in service of socio-economic development, deposit insurance, bad debt settlement associated with restructuring the system of credit institutions among others. The State shall hold 65 percent of charter capital in SOEs undergoing privatization and restructuring and operating in seven fields and sectors, including management and operation of airports and airfields, large-scale mining exploitation, finance, banking (excluding insurance, securities, fund management companies, finance companies and financial leasing companies). The State shall hold between 55 percent and 65 percent of charter capital in SOEs undergoing privatization and restructuring and operating in seven fields and sectors namely exploitation, production, and supply of clean water and drainage in urban and rural areas, manufacture of basic chemicals, air transportation and others. The decision shall take force from August 19, 2021, replacing Decision No. 58/2016/QD-TTg dated December 28, 2016 of the Prime Minister on criteria for classification of SOEs. Binh Thuan develops plan to consume 440,000 tons of dragon fruit Authorities in the South -Central Province Binh Thuan have been developing a plan to help farmers to consume 440,000 tons of dragon fruit as the coronavirus epidemic has hit the fruit export. The new coronavirus has put a dent in Vietnam's exports as the outbreak forced authorities to temporarily close border crossings, disrupting the crossborder trade of fruits and vegetables whereas from now until the end of 2021, farmers in Binh Thuan Province will harvest about 440 thousand tons of dragon fruit. The People's Committee of Binh Thuan province has just built a plan to connect farmers and enterprises for the promotion of agricultural products consumption, especially dragon fruit. According to statistics, Binh Thuan province, which is the country’s largest dragon fruit producer with over 33,700 hectares, yields 700, tons. Accordingly, the plan built by the provincial People’s Committee aims to sell all dragon fruit at reasonable prices. All related competent agencies were asked to focus on boosting consumption of dragon fruit in the country and exports via official and unofficial channels. Simultaneously, the People’s Committee asked enterprises to join hands in helping farmers to sell the fruit by processing the fruit and preserving it. In addition to dragon fruit, the province has developed a plan to sell other agricultural products and fish such as rubber, shrimp, and other aquatic products. Cement, tiles and glass production see massive surplus Cement, tile and construction glass are seeing excess supply over demand, according to the Ministry of Construction. Thanks to high investment in the three industries, the combined total output has already nearly reached their output target for 2025. In 2020 cement manufacturers in Vietnam produced over 104 million tonnes of cement, but only 62 million tonnes were sold in the domestic market, and 38 million tonnes were exported. According to the Vietnam Cement Association, domestic demand is slowing down, leading to fierce competition between suppliers in the country. Exports of cement and clinker in the first five months of the year rose by 50 percent year-on-year. This is because the country had expanded its cement exports in developing countries, said Luong Duc Đức Long, vice president cum general secretary of the association. However, he said that export of cement to these markets was unsustainable because these countries were also focusing on developing their domestic cement industries. The construction glass industry is also seeing higher supply than demand, with an excess output of 80 million square metres in 2020. Several manufacturers have had to close down some of their production lines. Meanwhile, tile manufacturers in Vietnam produced 560 million square metres worth of tiles in 2020, but only 465 million square metres of them were sold. Domestic tiles also have to compete with imported tiles that are not certified or closely monitored for quality and pricing, according to the Vietnam Building Ceramic Association. Chinese tile products, which account for up to 25 percent of Vietnam’s market, are sold very cheaply. According to construction material manufacturer CMC Joint Stock Company, which recorded a 14 percent drop in revenue in 2020, excess supply over demand contributed to harsh competition last year, with businesses making large price cuts just to get rid of their stock. Nguyen Van Sinh, deputy minister of construction, said that proposed investment projects in these three industries should be reconsidered, and localities should seek opinions from state authorities to avoid excessive investment and waste of manpower. He said that investment in cement production in large cities and areas in need of environmental protection should be limited./. Vietnam Airlines, Viettel team up to offer in-flight internet service The Viettel Military Industry and Telecoms Group will provide internet connectivity to aircraft operated by Vietnam Airlines using an air to ground (ATG) network as part of their freshly signed strategic cooperation deal for 2021 – 2025. Under the pact, Viettel will support the national flag carrier in digital transformation, including the offering of systems for business management, infrastructure services and IT. Another system for customers’ self check-in will also be built. Vietnam Airlines will continue to provide products and services for Viettel under a preferential trade policy as well as coordinate with the telecom services provider to build a service ecosystem for customers of both sides. Viettel has become a priority partner of Vietnam Airlines in freight transport to promote the development of a logistics and e-commerce center. The two will study a plan to establish a joint venture company to consolidate and expand cooperation in the future, contributing to boosting the national socio-economic development. Acting Chairman and General Director of Viettel Major General Le Dang Dung said the cooperation will not only generate new experiences to passengers but also bolster the growth of both businesses in contribution to realising the nation’s digital transformation goals. Vietnam Airlines and Viettel have cooperated since 2013 for the development and diversification of products and services as well as the enhancement of business performance to strengthen their leading positions in the fields of aviation and technology./. Dong Thap launches agricultural products website The southern province of Dong Thap launched a website to sell the provincial agricultural products and specialties at htxdacsandongthap.com on July 7. Ngo Chi Cong, a representative of the Dong Thap Specialty Cooperative, said the website currently offers more than 220 agricultural products and local specialties from 50 small and medium enterprises (SMEs) and cooperatives. He said e-commerce channels would help the SMEs, cooperatives and production facilities sell their products in the context of COVID-19, adding it is also time for them to participate in the digital transformation process. Earlier, the cooperative partnered with websites, social networks and e-commerce platforms to advertise on Google to increase the sales performance of businesses. In the future, the province may expand cross-border sales in Southeast Asian countries, said Cong. Huynh Lam Ho, co-founder and CEO of the Haravan Technology Company, which works with the province's businesses in implementing e-commerce and omnichannel retail solutions for 2021-2025, said for businesses to implement digital transformation in multi-channel sales and commerce effectively, besides the technology and training, equipping local businesses and their staff with digital and e-commerce knowledge is key. According to the agreement between the Dong Thap Department of Industry and Trade and Haravan, firms in the province will be supported in digital transformation and e-commerce./. Vietnamese and Indian enterprises look for business opportunities The strengthening of trade exchange between Vietnam and India not only by the traditional method but also in the online format has contributed to promoting the comprehensive strategic partnership between the two countries, said Hoang Minh Chien, deputy head of the Vietnam Trade Promotion Agency (VIETTRADE) under the Ministry of Industry and Trade. He made the statement at the Vietnam - India trade exchange conference which was held virtually by VIETTRADE and the Vietnamese Embassy in India on July 9. According to Chien, in the context of the COVID-19 pandemic, the agency has promoted the organisation of a number of online trade promotion programmes with India and has always received the effective coordination and support of Indian trade promotion organisations including Indian Importers Chambers of Commerce and Industries, the Gujarat Chamber of Commerce & Industry, the Vietnamese Embassy in India, the partners and businesses of the two countries. Do Thanh Hai, Counselor at the Vietnamese Embassy in India, said that textiles and garment, pharmaceuticals, supporting industries, renewable energy sector, and agricultural products are the driving force for trade relations, and many other industries have great potential. However, to turn the potential into reality, it was necessary for relevant authorities and the business community to involve in, he said, adding that online trade exchange events are an important channel for enterprises of the two countries to seek find business opportunities. Hiren Gandi, Chairman of the Food Committee of Gujarat Chamber of Commerce & Industry, recommended that Vietnamese enterprises should use legal commercial contracts when exporting to India to avoid disputes and protect themselves from fraud, false commitments and overcome business risks. The right legal contracts can help prevent businesses from up to 80 percent of commercial disputes, he said. Gandi emphasised that Vietnamese enterprises should not use brokers or agents because they have no legal value. He also advised them to check the financial capacity of the buyers and raised the issue of the right to handle logistics-related issues in commercial contracts. At the conference, Atul Kumar. President of the Indian Importers Chamber of Commerce and Industry, Srinivasa Murthy, Honorary Consul of Vietnam in Karnataka, India, and Bui Trung Thuong, Counselor at the Vietnam Trade Affairs Office in India, also introduced business opportunities for Vietnamese businesses in the Indian market as well as sharing experiences for successful business cooperation with Vietnamese enterprises to Indian counterparts. Experts said Vietnamese businesses have many opportunities to export to India. At the same time, Vietnam is also a potential market for Indian investors to do business in the fields of agricultural products, food, automobiles and energy. Virtual exchanges were also be held during the conference to support businesses in introducing their products and learned about the partner’s demand, thereby looking for business cooperation opportunities./. Kien Giang: goods exports up 11 percent The export turnover of the southern province of Kien Giang reached over 380 million USD in the first half of this year, meeting 50.7 percent of the year’s target and up 11 percent compared to the same period in 2020. According to provincial Department of Industry and Trade, the locality's main exports included rice (133.36 million USD), vegetables (11.72 million USD), seafood (112.6 million USD), and leather and footwear (72.86 million USD). Kien Giang's products are exported to 43 countries and territories, with major markets being Ghana, the Republic of Korea, Japan, Hong Kong (China), Belgium, the Philippines, China and Thailand. As the COVID-19 pandemic is developing complicatedly, the province has synchronously carried out various measures to realise the dual targets set by the government. Among those are keeping a close watch on businesses' activities to promptly remove obstacles facing them and supporting them in expanding markets and increasing exports. Kien Giang aims to earn 750 million USD from exports this year./. Vietnamese Edtech startup receives 2 mln USD from Alibaba-backed capital fund Educa Corporation, a Vietnamese educational technology (Edtech) startup, has raised 2 million USD in a Series A funding round from Singapore-based ReDefine Capital Fund. Founded in 2018, Educa Corporation uses technology to tackle challenges in learning English for Vietnamese students. Its flagship offering is Edupia, an English learning app targeted primary school students. Three years after the debut, Educa now has half a million paid users. With the new funding, the corporation plans to heavily invest in infrastructure development and R&D with an aim of achieving two million paid users, out of 20 million Vietnamese students, by 2025. It also wants to reach out to new markets in Southeast Asia. The company has been developing a number of new products targeting new customer segments, including Educa Tutor and Babilala – an English self-learning app for kids aged 3 – 8. ReDefine Capital Fund is backed by Alibaba and Ant Financial with hundreds of millions of USD. Last year, it invested 50 million USD in Seedcom, which operates coffee chain The Coffee House and women’s accessories chain Juno./. Vietnam Airlines pilots digital health passport The national flag carrier Vietnam Airlines hopes that if the trial of "Digital health passport" is implemented successfully, the Government will consider and recognize this solution, towards promoting resumption of international routes. The pilot launch of digital health passport by Vietnam Airlines is a part of the cooperation agreement signed by the national flag carrier and the International Air Transport Association (IATA) in May. To be eligible to participate in the programme, passengers must be over 18 years old and have a certificate of negative COVID-19 test results issued by testing facilities registered with IATA. Those who want to participate in the programme should register on Vietnam Airlines’ website at least three days before their planned departure, download the IATA Travel Pass app to their mobile phones, create a digital ID comprising their photo and passport information and fill in flight details to receive information on entry requirements at the destination. Before departure, passengers will be required to get tested at eligible clinics based on the IATA registry, then share the test results digitally and confirm flight status with the airline ahead of arriving at the airport. This application is still in the development and testing stages, so passengers will still have to show hard copies of the COVID-19 test results at the request of authorities in the destination country. To make it easier for passengers to use the application, Vietnam Airlines provides instructions with illustrations on its website at https://www.vietnamairlines.com/vn/en/plan-book /experience/iata-travel-pass. The IATA Travel Pass is being piloted by many airlines around the world thanks to its feature of ensuring consistent information between parties including governments, testing facilities, airlines and passengers. The electronic health passport has officially come into effect for EU member states from July 1, 2021, gradually opening the door for free travel within the Union and to international passengers./. Anti-dumping tax levied on sorbitol products from China, India, Indonesia The Ministry of Industry and Trade (MoIT) has decided to impose an anti-dumping tax ranging between 39.63-68.5 percent on sorbitol imports from China, India and Indonesia. The MoIT started the anti-dumping investigation in December 2020 based on the assessment results of dossiers submitted by the domestic industry in September 2020, requesting for the imposition of anti-dumping measures against these products. During the seven months of preliminary investigation, the MoIT has coordinated with relevant agencies to carefully evaluate the allegations, including dumping acts by exporters of China, India and Indonesia and damage to the Sorbitol production industry of Vietnam. The investigation results indicated that the volume of dumped sorbitol imports increased in the period from April 1, 2017 to March 31, 2020, causing pressure on the operation of the domestic manufacturing industry. It was reflected in such criteria as output, capacity utilisation, inventory, market share, domestic sales and revenue, profit and ability to raise capital. During the investigation period, these indexes showed a downward trend compared to the previous time. In the coming time, in order to come to a final conclusion on the case, the ministry will continue to work with relevant parties to collect information to assess the comprehensive impact of the case on related parties, including end consumers. The investigation is expected to be finished in the third quarter of 2021. Sorbitol, also known as glucitol, is generated from refined glucose under high temperature and pressure, hydrogenated with nickel, which is often used in medicine production, food and cosmetic industry./. Remittance to HCM rise despite COVID-19 pandemic Oversea remittances to Ho Chi Minh City were worth 3.2 billion USD in the first six months of this year, despite the COVID-19 pandemic roiling on many economies around the world. Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s HCM City branch, said the figure represented a 22.34 percent increase year-on-year. This was a positive growth at a time when the COVID-19 pandemic has seriously affected the global economy, he said, adding that the remittances were mostly poured into production and business activities. The money flow has not only supported the city’s economic development but also contributed to stabilising the supply of foreign currency in the city and Vietnam in general, Minh said. It is forecast that remittances to HCM City will reach 6.5 billion USD this year, up 6.5 percent compared to last year’s figure which stood at 6.1 billion USD. Vietnamese abroad sent home 17.2 billion USD worth of remittances in 2020, making the country the third-largest remittance recipient in East Asia and Pacific region, according to the Migration and Development Brief released earlier in May by the World Bank and the Global Knowledge Partnership on Migration and Development (KNOMAD). This represents a rise of nearly 3 percent over 2019, a very positive result compared to the previous forecast in the context of the COVID-19 pandemic. Vietnam came after China in remittances last year which received 59.5 billion USD, while the Philippines raked in 34.9 billion USD. With remittances equivalent to 5 percent of the country’s gross domestic product (GDP), Vietnam was among the top 10 countries in the region by the share of GDP./. Top 10 prestigious insurance companies in Vietnam in 2021 announced Meanwhile, firms like Bao Viet Insurance Corporation, PVI Insurance, Post and Telecommunication Joint Stock Insurance Corporation, Petrolimex Insurance Corporation, and Military Insurance Corporation were named on the top 10 non-life insurance firms. Commenting on the Vietnamese insurance market in the current period amid impacts of the COVID-19 pandemic, Vietnam Report General Director Vu Dang Vinh said that despite the downturn in the world insurance market, the domestic insurance sector has seen impressive growth. Last year, insurance companies paid over VND48.2 trillion (US$2.09 billion) of benefits to customers, up 11.4% over 2019, he noted. In 2021, more than 50% of insurance firms made decisions relating to digital transformation, customer managing and approaching, and insurance product development, he added. Businesses encouraged to export organic farm products to North Europe Local businesses have been advised to develop organic food in an effort to boost fruit and vegetable exports to Nordic countries, according to the Vietnamese Trade Office in Sweden. Due to having a cold climate throughout the year, Nordic countries are forced to import fruit and vegetables from other nations, a factor which has created an array of opportunities for Vietnamese fruit and vegetable exporters to gain a foothold in these countries. Most notably, the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) in August, 2020 brought about a range of advantages for domestic firms as import duties levied on fresh fruit and vegetables are slashed to 0%. Nordic consumers have a habit of purchasing safe and organic products, with the consumption of organic food in this market anticipated to enjoy a three-fold increase by 2030. Nguyen Thi Hoang Thuy, Vietnamese Trade Counselor in Sweden, points to the fact that demand for prepackaged convenience products continues to grow and become more popular in these countries. Furthermore, she says Nordic consumers are also interested in tropical fruit and vegetables, such as bananas, melons, pineapples, sweet peppers, and lemons, which have a high demand for import all year round. These factors are anticipated to create a range of opportunities for local businesses to boost their export of fruit and vegetables to these countries in the near future, notes Thuy. According to the Vietnamese Trade Office in Sweden, new suppliers of fruit and vegetables from Vietnam are expected to find it difficult to penetrate the Nordic market due to fierce competition between multinational corporations and logistics companies. Moreover, consumers in this market tend to prefer vegetables grown in the European region due to the low cost of transportation and lower prices in general. Other factors include geographic distance and a lack of direct flights to North Europe making it difficult for local businesses to export fresh fruit and vegetables to this market. Thuy therefore advises domestic firms to develop niche markets, push the export of organic products, comply with stringent regulations set by importers, and develop brands as a means of enhancing the consumer experience. Digital transformation backs retail growth in H1 Revenue from retail trades and services increased 4.9 per cent to over VND2.46 quadrillion (US$107 billion) in the first half of this year, according to the General Statistic Office (GSO). Retail sales surpassed VND1.98 quadrillion, accounting for 80 per cent of the total retail sales of consumer goods and services, up 6.2 per cent year-on-year, the GSO said. These encouraging figures were mainly attributed to businesses and firms that quickly adapted to the “new normal” as a result of the COVID pandemic. Actively applying technological solutions in trading and payments along with undergoing digital transformations has been an important part of promoting growth in the retail sector and maintaining stability for the business community, according to Vice chairman of the Viet Nam Chamber of Commerce and Industry, Hoang Quang Phong . Phong said the rapid changes in technology have enabled retail companies to optimise their resources and place consumers at the centre of their businesses. This has helped them to survive, to stabilise their operations, and to thrive throughout the COVID-19 pandemic. The Internet of Things (IoT), Big Data, AI and Machine Learning have allowed businesses to provide customer service in unique and exciting ways They have helped to optimise management strategies as well as supply chains maximising revenues. Do Khac Cuong, Sales Director of Corporate Banking and Partner Channel Manager, at Microsoft Vietnam, says that the data points to incorporating the customer experience into an organisations digital transformation is key. In a survey of 800 business executives, conducted by The Economist and Microsoft, respondents in the retail industry said that improving the customer experience was the top factor driving their digital transformation. The survey also showed that retailers that deploy online shopping channels and have a deep understanding of their customers managed to better survive the impact of the pandemic. On the other hand sales of accommodation and catering services reached VND224 trillion from January to June, down 3 per cent year-on-year. They made up 9.1 per cent of the total revenue. Tourism revenue also experienced a decline of 52 per cent to VND4.5 trillion. Viet Nam has yet to reopen the borders for international visitors and at the same time, some localities have implemented social distancing, discouraging domestic tourism. Meanwhile, revenue from other services reached VND2.49 trillion, marking a jump of 4.4 per cent. Previously, trade economists forecast that Viet Nam's retail market would likely rebound strongly predicting 11 per cent revenue growth in 2021, outperforming any other Southeast Asian country. Small flats still on the agenda for new builds but concerns remain The Ministry of Construction will continue to limit the floor-area of new apartments to no less than 25sq.m, according to a new circular on technical regulations for apartment buildings. The regulations are a part of the ministry's Circular No 03/2021/TT-BXD on national technical regulations on apartment buildings (QCVN 04:2021/BXD) that took effect from July 5, 2021 and replaced the Circular No 21/2019/TT-BXD. In both the new and old circulars, the ministry has stipulated that the minimum usable area of an apartment in housing projects is not less than 25sq.m. In addition, for commercial housing projects, the proportion of apartments with an area of less than 45sq.m should not exceed 25 per cent of the total number of apartments in the project. Le Hoang Chau, chairman of the HCM City Real Estate Association (HoREA), said that small-scale apartments in any high-end, mid-end or affordable housing project have the lowest total cost compared to other apartment sizes. The price of a high-end housing project is about VND45 million per sq.m, so the price of a small apartment with an area of about 30sq.m in this project is only VND1.35 billion. Young people just starting work can afford these, Chau said. Meanwhile, affordable apartments with a price of VND25 million per sq.m have a value of VND750 million. That is a very affordable price, meeting the needs of many people, he said. Doan Chi Thanh, general director of Hoang Anh Saigon Company, says this is good news for business. In a housing project, small apartments are often purchased due to their lower purchase price compared to large-area apartments. However, there is not a big enough supply of small apartments to meet demand due to the limited number of small apartments in new development projects. This pushes up the per square meter price of this market segment roughly 5-10 per cent more than of large-area apartments. Many projects, as a result, have small-area apartments with a price of VND40-50 million per sq.m. Many experts believe that a 25-sq.m apartment is not the answer to the problem of a lack of housing for low-income people in urban areas. The price for this kind of apartment is still far beyond the reach of many people. Architect Ngo Viet Nam Son said many countries have regulations on small apartments with the minimum being a 21sq.m flat in China, 24sq.m flat in the Philippines, and 27sq.m flat in the UK. Small apartments have a bedroom, living room, kitchen and one toilet. These apartments are built for just one person. That said, these countries also have very specific regulations for this type of apartment, including the criterion that only one person can live there, Son said. Meanwhile, Viet Nam has regulations that allow the construction of a 25-sq.m apartment, but does not yet have specific regulations on limiting the number of people living in that apartment. Small apartments can accommodate one or two person(s) and even a family of three. This puts pressure on social infrastructure and transport, he said. Do Thu Hang, director of Research, at Savills Vietnam said depending on the scale of the project, small apartments will create pressure in terms of overall operation. This includes demand for electricity, water, waste treatment, fire prevention or the need to use common utilities. The 25-sq.m "micro" apartment also poses a challenge in terms of managing the number of people living in the apartments, with security and public safety. The planning approval by the competent state agency must also have important criteria, Chau said. Including land use, construction density, the number of floors and especially the population of the project. Chau also notes that the management and operation of the apartment management board also plays a direct role, contributing to limiting negative impacts on infrastructure. Ministry to create favourable conditions for agricultural firms to promote exports The Ministry of Agriculture and Rural Development said it would create favourable conditions for firms to promote exports of agricultural products by reducing the number of product categories subject to quarantine inspection as well as applying technology to speed up the customs clearance process. Deputy Minister Nguyen Hoang Hiep said there were still problems in the certification of quarantine inspections of plants and agricultural products for export and import, even though the number of harmonised system (HS) codes which were subject to checks was reduced to 157 from 300. Further efforts would be made to reduce the number of HS codes of plant and agricultural products subjected to quarantine checks, Hiep said, adding that the time for inspections to be carried out must also be cut by using advanced technology to aid businesses. In international practice, fresh products are subject to quarantine inspection while processed products are subject to food safety checks. Currently, international practices are applied for plant products while animal products still have to undergo quarantine inspection for both fresh and processed products. Hiep said the ministry asked the Department of Animal Health to review the process for the application of international practices to ensure that products are safe and enterprises have the best environment to operate in. Nguyen Hoai Nam, Deputy General Secretary of the Viet Nam Seafood Exporters and Producers, said seafood companies wished to receive support from the Government to remove the European Commission’s 'yellow card' as soon as possible. According to Nguyen Thanh Son, President of the Animal Husbandry Association of Viet Nam, many instructions to implement the Law on Husbandry, which took effect from the beginning of 2020, must be clarified. Son said several standards were not appropriate to reality, which wasted time and increased costs for enterprises. Tran Quang Trung, President of the Viet Nam Dairy Association, urged the ministry to consider removing the regulation on quarantine checks on imported processed dairy products. Vu Thi Mai Hien, Deputy Director of the ministry’s Legal Department, said some regulations about certification for enterprises were being reviewed. According to Hiep, the ministry would also enhance the administrative reforms and improve the attitude of civil servants to create favourable conditions for enterprises. Micro-entrepreneurs learn digital skills to survive amid COVID In the northern and north-central parts of the country, Go Digital ASEAN has helped thousands of micro-entrepreneurs improve their capacity to use digital applications to market their products online and access business information and networks to better manage and expand their businesses amid the COVID-19 pandemic. Vu Thi Anh Tho, who runs a watch shop in Nam Dinh City, told Viet Nam News: “Before COVID-19, I had a steady stream of direct customers. Once the pandemic began and social distancing set in, I lost a significant number of customers. My family’s income reduced accordingly. “I have learnt many things, thanks to the training programme, but my greatest gain has been increasing the sales of my products through e-commerce, which I had never thought of before. “A particular lesson on e-commerce channels left a strong impression on me as it provided me with business ideas on using various digital channels to promote my products and boost my income during COVID-19. “I have begun using sites like Lazada and Shopee to sell my products. I have attracted a significant number of customers through them, and I now also know how to facilitate secure internet banking transactions. “I would like to expand my online sales through more digital channels like Zalo and Tiki, and also onboard more products on my platform to better appeal to and serve customers.” Speaking to Viet Nam News, another trainee in the programme, Nguyen Thi Chuan, who farms, processes and sells fish in Dien Chau District, Nghe An Province, said earlier she used to sell her products only in her commune or nearby areas. “Through the training programme, I learnt how to make videos to advertise my products on Facebook and Zalo. So customers in many northern and southern provinces and cities, including Ha Noi and HCM City, know about my products and place orders. My family’s income has increased accordingly. “The training programme was very useful and helped me understand digital technology to interact better with customers, know their feedback, get market information, and expand my market.” Vu Thi Binh of Bac Giang City said: “My family has an agency selling rice noodles and rice pancakes. Most of my customers already have access to digital technology. Now I must also gradually get used to it. “After the training we learnt methods and ways to advertise products, and post or write reasonable content to promote products. At first it was confusing, but once we got used to it, it became very easy. “Thanks to the posts and product descriptions on the internet, my customers have contacted me and placed orders. I am very excited.” They are among nearly 65,000 entrepreneurs and underemployed youths in Viet Nam who have benefited from the Go Digital ASEAN project. Approved by the ASEAN Coordinating Committee on Micro, Small, and Medium Enterprises and implemented by The Asia Foundation with support from Google’s philanthropic arm, Google.org, the project is designed to equip micro and small enterprises and underemployed youth with crucial digital skills and tools, especially in rural and isolated areas, expand economic opportunity across ASEAN member states and mitigate the negative impacts of COVID-19. Micro, small and medium enterprises account for 99 per cent of all businesses in the region and employ more than 80 per cent of the workforce, but a majority of small business owners, and underemployed youth, in rural areas use their smartphones for communication and entertainment rather than for business. Launched a year ago, the project aims to train up to 200,000 individuals across the region, 60 per cent of them women, broadening participation in the digital economy and creating a more inclusive ASEAN region. Filip Graovac, Vietnam deputy country representative at The Asia Foundation, said: “With support from our partners [Tinh Thuong One-member Limited Liability Microfinance Institution and Vietnet Information Technology and Communication Centre], the programme has been very successful in Viet Nam and as of June 2021 we have trained 65,000 entrepreneurs and underemployed youth, 80 per cent of which are women, in the northern and north-central parts … in digital skills like online job search, basic social media marketing and online safety and security.” Marija Ralic, APAC lead, Google.org, said: “COVID-19 has certainly impacted millions of people directly and billions more through the impact on the regional economy. Reports have shown that over 81 million people have lost their jobs here in APAC, with another 25 million seeing their incomes shrink to poverty levels, and the numbers continue to rise. “With continued economic challenges, rising unemployment, and a demand for new skills, we recognise technology can help people find work, keep businesses going and learn new skills. As the pandemic wore on, so has our strategy. We quickly pivoted our efforts to focus on economic relief and recovery by focusing our efforts on supporting digital training and upskilling programmes that will benefit impacted businesses by the pandemic. “Just like the Go Digital ASEAN programme, collaboration and support of non-profits, the public sector and government agencies are critical to combat the pandemic.” Graovac said: “While technology has empowered hundreds of millions of people across Southeast Asia, many more are struggling to survive, and are urgently looking for ways to adapt their business to reach new markets. Mastering the new digital landscape has become increasingly important to the future of Viet Nam’s digital economy.” The Asia Foundation and its partners would continue to run the programme and train another 16,650 people this year, he said. “We are aware that the demand for digital skills, especially during the COVID-19 crisis, is extremely high.” HCM City logistics companies unhappy with COVID isolation of ports Logistics firms are worried transport of cargo to and from the Vietnam International Container Terminals will be disrupted by the lockdown of HCM City’s District 7 where it is situated. Tan Thuan Dong Ward and a part of Tan Thuan Tay Ward and Binh Thuan Ward in the district have been locked down since 6pm on July 8. A major logistics firm said paperwork and other procedures related to COVID-19 testing for container truck drivers to enter the port are inconsistent. Besides, ships cannot dock for loading and unloading, goods owners cannot enter the port for customs procedures and there is a shortage of workers for loading and unloading due to travel restrictions. Saigon Port Joint stock Company, which operates Tan Thuan Port, Tan Thuan Dong Port, Ben Nghe Port One-Member Limited Company, and Vietnam International Container Terminals (VICT) have called on the city and District 7 administrations and other relevant departments and agencies to find a solution. They want the authorities to allow them to proactively implement measures such as issuing letters to workers confirming they are working at the port so that they can pass through the District 7 health quarantine and control stations, customers to submit a work order to the stations to visit ports and drivers of container trucks to make a medical declaration to pass. Truong Nguyen Linh, deputy general director of the First Logistics Development Joint Venture Company, which owns and operates VICT, said there is an ongoing problem related to employees and drivers furnishing a negative COVID-19 test certificate since it is expensive. Speaking to Tuoi Tre Online, a spokesperson for the Vietnam Logistics Business Association (VLA), said not only VICT but also Tan Thuan Dong and Saigon Port are facing difficulties, and isolating seaports like residential areas is unreasonable since it would greatly affect supply chains. VLA has written to the departments of Transport, and Industry and Trade to resolve the difficulties faced by ports and logistics companies. Viet Nam’s economy to surpass Singapore's by 2030: DBS Bank Viet Nam’s economy is expected to grow by between 6-6.5 per cent over the next decade. If it does, it will surpass Singapore by 2030, DBS Bank experts have said. Last year, Viet Nam’s economy was worth US$343 billion while Singapore’s was $337.5 billion, and Malaysia’s hit $336.3 billion. This ranks Viet Nam the 40th largest economy globally and fourth in the Association of Southeast Asian Nations (ASEAN). In their latest forecast, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) said Viet Nam was on track to outpace both Malaysia and Singapore this year. Despite two waves of COVID-19 in the first half of this year heavily impacting industrial hubs, Viet Nam’s still posted gross domestic product (GDP) growth of 5.64 per cent. Its export revenue rose 28.4 per cent compared to the same period last year. Although GDP expanded slower than expected, it was still much higher than the 1.82 per cent recorded in the same period last year. This suggests that policies, strategies and directives aimed at both controlling the pandemic and ensuring socio-economic development have been effective. Standard Chartered on Thursday also released a survey that said that ASEAN companies focusing on intra-regional opportunities expect to experience robust growth over the next 12 months. The survey was a part of its “Borderless Business: Intra-ASEAN Corridor” report that explores high-potential opportunities for cross-border growth within the region. The most important drivers for expansion across the region, according to the senior executives surveyed, were: access to the large and growing ASEAN consumer market, access to a global market enabled by a network of Free Trade Agreements, and availability of abundant and skilled workforce. In addition, the Regional Comprehensive Economic Partnership (RCEP) is expected to attract more investment in ASEAN, with all respondents saying they are planning to increase their investments over the next 3-5 years. Furthermore, 80 per cent of the surveyed respondents said they were focusing on expanding in Singapore to capture sales and production opportunities, followed by Thailand, and then Viet Nam. As ASEAN companies look to invest across the region, Singapore is considered the most desirable market for companies to set up to host their regional sales and marketing teams, headquarters, and research and development teams. The survey also identifies a wide range of risks in the region including: COVID-19 and/or other health crises, geopolitical uncertainty and trade conflicts, and a drop in consumer spending. Furthermore, respondents said that adapting their business model to industry practices and conditions within ASEAN, building relationships with suppliers, and adapting supply chain logistics, as well as understanding regional regulations, payment methods, and infrastructure, are the most significant challenges they face in the next 6-12 months. To drive resilient and rebalanced growth in ASEAN and to mitigate these risks and challenges, the surveyed executives said entering new partnerships and joint ventures to increase their market presence would be key. They also said that sustainability and environmental; social, and governance initiatives; and executing digital transformation programmes are the most important areas their companies will focus on. To further support their growth, these companies say they are seeking banking partners with strong cash management capabilities, one-stop corporate financing and capital-raising services, and extensive trade financing services. Michele Wee, CEO, Standard Chartered Vietnam, said: “Viet Nam continues to offer appealing business and investment opportunities given its strong fundamentals – robust economic growth, a sizable domestic market, low labour costs, an abundant workforce, free trade agreements, and strategic location. ” Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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National tally crosses 30,000 following detection of 622 more new cases 10:45 An additional 659 domestic and 3 imported cases were recorded over the past 12 hours to 6 a.m on July 12 morning, with Ho Chi Minh reporting the highest number of infections at 544, said the Health Ministry.
 Ho Chi Minh City remains the nation’s largest epicentre of the virus, with more than 13,550 cases being found during the latest COVID-19 wave. 478 out of 659 newly detected cases were detected in isolation or areas currently under blockdown. The domestic cases included Ho Chi Minh City (544), Tien Giang (43), Khanh Hoa (27), Vinh Long (26), An Giang (8), Binh Phuoc (5), Phu Yen (4),and one each in Hue and Nghe An. Vietnam has to date reported a total of 30,478, including 1,927 imported infections and 28,551 local cases. As many as nearly 27,000 have been documented since April 27 when the fourth wave of the pandemic initially broke out in the country. One day earlier, the country logged a total of 1,953 new cases of COVID-19, with Ho Chi Minh City taking the top spot at 1,397, followed by the southern province of Binh Duong at 234. The Ministry of Health also announced the discharge of a further 71 COVID-19 patients, raising the total number recoveries to 9,275. According to the Ho Chi Minh City Department of Health the 5th vaccination drive is set to be conducted within two or three weeks in the time ahead, with around initial 1 million doses of COVID-19 vaccine to be administered. The HCM City Center for Disease Control said that these vaccines include one million doses of the Moderna vaccine donated by the US through the Covax facility, and 100,000 doses of the Astra Zeneca COVID-19 vaccine from the Japanese Government's funding. The group prioritized for this vaccination drive are vulnerable people and those living in very high-risk areas. The Vietnamese Government last month adopted the emergency use of the Moderna vaccine, the fifth after Russia's Sputnik V and those made by the U.S.'s Pfizer and Germany's BioNTech, China's Sinopharm and British-Swedish firm AstraZeneca. Moreover, 12 provinces have stayed free of COVID-19 for a period of 14 consecutive days amid the ongoing fourth outbreak, while 8 provinces have recorded no secondary infections. Over 4 million people have been vaccinated against COVID-19 to date, of which more than 277,450 have received two shots. Nearly 12,734 people were inoculated against the virus on July 11 alone in five Vietnamese localities. VOV |
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VIETNAM BUSINESS NEWS JULY 1211:01 Remittances to HCM City rise by 22.34% in first half of 2021
Remittances to HCM City topped US$3.2 billion in the first half of the year, a 22.34 per cent increase year-on-year. Nguyễn Hoàng Minh, deputy director of the State Bank of Việt Nam’s HCM City office, said the growth was impressive considering the difficulties posed by the COVID-19 pandemic. The remittances went mainly into manufacturing and other businesses, and ensure there was no foreign currency supply volatility, he said. This year the city is expected to get around $6.5 billion worth of remittances. For many years they have been rising, and the city accounts for half of the country’s remittances. Around two million people hailing from HCM City live abroad, and last year they sent home US$6.1 billion, up 15 per cent from 2019, before the pandemic struck. Banks have been making investments to improve remittance services and launching promotional programmes to attract more of them. Việt Nam received US$17.2 billion worth of remittances last year, the third highest in the East Asia and Pacific. They have grown at an average of 6 per cent annually. Reference exchange rate down 3 VND at week’s beginning The State Bank of Vietnam set the daily reference exchange rate at 23,198 VND per USD on July 12, down 3 VND from the last working day of previous week (July 9). With the current trading band of +/- 3 percent, the ceiling rate applied to commercial bank during the day is 23,893 VND/USD and the floor rate 22,502 VND/USD. The rates listed at commercial banks stayed stable. At 8:20 am, Vietcombank listed the buying rate at 22,870 VND/USD and the selling rate at 23,100 VND/USD, unchanged from the rates on July 9. BIDV also kept both rates unchanged, listing the buying rate at 22,905 VND/USD and the selling rate at 23,105 VND/USD. Similarly, Vietinbank maintained the buying rate at 22,885 VND/USD and the selling rate at 23,105 VND/USD, the same as on July 9. During the week from July 5-9, the daily reference exchange rate fluctuated variably and ended the week up 11 VND./. Tea exports to China, India rise sharply The opening five months of 2021 saw Vietnam’s tea exports to China and India rise considerably, recording increases of 87.7% and 457.5% year on year respectively, according to the Ministry of Industry and Trade (MoIT). Data from the MoIT show China imported 4,550 tonnes of Vietnamese tea valued at US$6.76 million during the reviewed period, up 104.8% in volume and 87.7% in value year on year. Meanwhile, India purchased 1,400 tonnes of tea from Vietnam for US$1.74 million, up 560.5% in volume and 457.5% in value. Experts said the recent resurgence of the SARS-CoV-2 virus and prolonged drought seriously affected the tea industry of India, a global tea exporter, forcing it to import large volumes from other countries, including Vietnam,for re-export. The MoIT data also indicate that Vietnam shipped 58,000 tonnes of tea abroad worth US$95 million in the first half of 2021, up 0.1% in volume and 5% in value compared to the same period in 2020. The average export price of tea rose 4.8% to US$1,643 per tonne in the first half of 2021. Vietnam’s tea exports are anticipated to enjoy good prospects in the second half as the global economy is recovering from the COVID-19 pandemic, stimulating the demand for tea. In addition, local businesses are greatly benefitting from preferential tariffs following the implementation of free trade agreements such as one between Vietnam and the European Union (EVFTA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Project launched to sort out outstanding tourism firms and service providers The Vietnam National Administration of Tourism (VNAT) recently launched the ‘Vietnam Tourism Yellow Pages’ project on the occasion of the 61st founding anniversary of the country’s hospitality sector (1960-2021). The project is among VNAT’s efforts to promote digital transformation in the tourism sector in Vietnam and increase added value from the digital environment. As a tourism management agency, VNAT targets to build a digital platform to create favourable conditions for consumers to connect with and access updated information on tourist service providers. Accordingly, the ‘Vietnam Tourism Yellow Pages’ project is designed as a channel for tourism brands to approach customers and advertise their safe and high-quality products and services. The listed brands need to meet certain criteria such making their products and service prices public, accepting payment online, and handling complaints of tourists regarding their service quality. The project is also connected to other tourism digital platforms in the VNAT’s smart tourism ecosystem, including the COVID-19 safety self-assessment system such as the Covid-19 safety registration and self-assessment system and an app on safe tourism, which have seen the registration of all 64 provinces and cities in the country. Market expected to continue to correct this week: expert On the Ho Chi Minh Stock Exchange (HoSE), the benchmark VN-Index closed last Friday at 1,347.14 points. For the week, the index lost more than 4.5 per cent. The HNX-Index on the Ha Noi Stock Exchange (HNX) edged down in the last trading session to 306.73 points. The index dropped 6.4 per cent last week. Market liquidity on the two exchanges increased compared to two weeks ago, with an average of VND28.9 trillion (US$1.3 billion) trading per session. Trading value on HOSE jumped 8.5 per cent to VND127.2 trillion, while that on HNX gained 8.4 per cent to nearly VND17.4 trillion. BOS Securities Corporation (BOS) said the fall in the last session caused most technical indicators to give signals of a formation of a correction trend in the short term. The scenario of a deeper plunge to the range of 1,310 - 1,320 points may occur before the market finds a new balance point, which should be noticed by investors in the coming sessions. BOS recommends investors continue to prioritise risk management and keep the stock proportion in portfolios at a balance or low level. Meanwhile, after investigating supply and demand, Viet Dragon Securities Corporation (VDS) said the benchmark was still negatively affected by the recent fall. The index tested 1,335 point-level again and the liquidity increased back to the 50-day average, showing a strong struggle at this support zone. However, in general, the selling pressure slightly overweighted the cash inflow into the market, so there are still risks of a downward trend after breaking above 1,335 points. VDSC recommends investors be cautious until there are enough support signals. At the same time, investors should continue to restructure their portfolios to minimise the risks. Based on Elliott's theory, analysts from Saigon - Hanoi Securities SJC (SHS) expect that the fifth wave has ended and entered the correction period with the target of around 1,210 points. Therefore, the market is likely to continue to correct to lower ranges to seek demands at low prices. According to SHS, the next support level of the market is around 1,330 points and the psychological level of 1,300 points can be tested this week. SHS recommends that investors who have taken profits in the previous weeks can try to take long positions if the market corrects to around 1,300 points. Investors who have reduced their stock proportions in portfolios during the last rallies can hold their stock portfolio at a low level and wait for deeper corrections to buy-in. Last week, most sectors inched down, excepted for the retail sector which was up 2.6 per cent in market capitalisation. Of which, Mobile World Investment Corporation (MWG) rose 12.6 per cent, Digiworld Corporation (DGW) up 9.9 per cent and FPT Digital Retail JSC (FRT) up 5.8 per cent. Oil and gas stocks posted the biggest loss, down 10.5 per cent in market capitalisation. It was followed by material stocks and bank stocks, down 10 per cent and 7.1 per cent, respectively. On the flip side, foreign investors continued to net buy last week, which was a positive signal in the market, buying a total value of more than VND2.5 trillion. Ha Noi house owners live in rentals to lease out properties for profit As renting a house is increasingly common among millennials, more and more rental opportunities have popped up. Kien and his wife lived in a villa they own in Linh Dam area, Hoang Mai District, southern Ha Noi, three years ago but then rented it out and decided to live in a rented apartment in Cau Giay at a cost cheaper than they charge their tenants. "My wife and I really like to live in a rented place as it is close to the school for our children, and close to where my wife works while I can spend my assets and money to invest," Kien said. Nguyen Viet Dung, who works for a bank in Ha Noi also leases out his villa in Van Quan area, Ha Dong District and a house on Lang Ha Street and lives in rental in Dong Da District. Dung told Viet Nam News: "I feel comfortable when renting a mid-range apartment in the centre of the city, though people keep asking me why when I have houses of my own I still live in a rented apartment, and why would not I buy the apartment.” David Jackson, general director of Colliers Vietnam, said the previous generation considered housing as a stable value-added asset, now as millennials have become the main workers in society and gotten married, they have their own different housing needs. Apartments are chosen by most young people today as the prices are considered better in locations more suited to their work and active lifestyle than where townhouses are found. Condominiums are also often closer to important social amenities such as schools, hospitals or shopping malls. Dung said renting was convenient, but from an investment point of view, he would never buy an apartment as an accumulative asset but instead spend his money on a separate house or villa. “The value of an apartment building will go down over time but the prices of separate places will always go up.” Along the same line of thinking, Nguyen Bich Lien sold her ninth-floor apartment in Bac Tu Liem District for more than VND1.3 billion and put her money into two plots of land in Nam Dinh and Thua Thien-Hue provinces. She rents an apartment in the centre of My Dinh District for VND7 million per month. "I saw a loss when spending on an apartment building so I put money into residential land in the provinces, hoping the price would increase in the next three to five years. If I had kept the apartment, its price would go down after five years and I would have had to pay more for the travel cost for me and my children, working and studying in My Dinh where my children could access higher-quality schools.” Born in Ha Noi in 1988, Doan Manh has lived in a rented house in the capital for the last 10 years, during which he married and had two children. In the past, men like Manh would have seen living in the house they owned as essential. He said: "My principle is that money must be circular instead of being put into a house you live in. "If you buy an apartment for VND1.5 billion, while the rent of such a house is only VND5 million per month, if you put that VND1.5 billion into a bank savings account, you can get more than VND8 million interest per month or if you invest it in real estate, the profit rate will be more than the rent of VND5 million many times." Phan Cong Chanh, a real estate expert, said leasing out an owned house and living in rented accommodation is not accessible to everyone, especially those who consider houses as fixed assets for them and the next generations. Tax watchdog aims to better manage real estate tax transactions Tax authorities are aiming to improve tax management of property transactions to prevent tax avoidance and increase State budget collection. The General Department of Taxation under the Ministry of Finance asked local tax departments to focus on inspecting tax declaration documents from enterprises and individuals involved in real estate to identify those who at high risk of tax avoidance so inspections can be carried out. Local notary offices would be asked to provide tax departments with a monthly list of organisations and individuals who implemented contracts related to property transactions and business to supervise tax declarations and payments. Local tax departments must also ask local departments of natural resources and the environment to provide information about the transfer of property projects, projects opened for sale, land ownership transfers and land-use purpose conversions. Cooperation between local tax departments and police was also important to enhance tax management of individuals and organisations who leased out their properties. Experts have said tax losses in property transactions come from the difference between the market price and the regulated price frame. To avoid paying high taxes, real estate purchase contracts are often declared at a very low value, many times lower than the agreed value between the sellers and the buyers to avoid taxes. Do Linh, a real estate broker, said nearly all real estate contracts did not mention the actual transaction value, the notarised contract was only for carrying out the procedures for ownership transfer. The taxes and fees would be calculated based on regulated land price frames. Doan Hong Nhung from Viet Nam National University, Ha Noi, said the land price frame did not reflect the market price that has existed for many years and this problem must be tackled in the coming amendment of the Law on Land. This difference has created conditions for people to avoid paying taxes that should be paid to the State when buying and selling real estate, Nhung said. Former Deputy Minister of Natural Resources and Environment Dang Hung Vo said international experience showed that tax was the most efficient tool to regulate the real estate market and increase revenue for the State budget. It was necessary for Viet Nam to improve the tax policies for the real estate market, he said. Cooperation between the tax watchdog, the police and notary offices was important to prevent tax avoidance in real estate and transactions, as well as increase transparency, which would also help reflect a more accurate view of the market so State management agencies could use appropriate policies. Still, the fundamental solution was to bring the land price frame closer to the market price through the organisation of an independent land valuation council in each locality. IFC lends $100 million to OCB to boost climate finance in Viet Nam IFC’s investment will help OCB improve its outreach to SMEs in Viet Nam, which are facing a financing gap of $21 billion, equivalent to 11.2 per cent of the country’s GDP. With IFC’s support, OCB expects to double its SME lending portfolio by 2024 by leveraging its digital banking platform and developing products that cater to the sector’s needs. Some areas that SMEs are seeking financing for include renewable energy, energy efficiency, and climate-smart solutions, which can help them grow sustainably while contributing to reducing greenhouse gas (GHG) emissions. The current share of climate financing – as a percentage of total bank financing – in Viet Nam is just about 5 per cent or $10.3 billion and is expected to increase significantly in the coming years. As the country aims to reduce GHG emissions by 9 per cent by 2030 to mitigate climate change impact, this presents a $753 billion climate-smart investment opportunity for Viet Nam between 2016 and 2030, according to an IFC study. To help OCB tap into this huge lending potential, $50 million of the funding will be earmarked for climate-friendly projects, creating new options for businesses to obtain green financing. While the State Bank of Viet Nam has been promoting green banking over the past few years, the climate-finance market is still young and banks are now considering a systematic approach toward climate finance. “IFC sees banks as a major force in fighting climate change in emerging markets such as Vietnam since they can strategically expand financing for climate-smart initiatives,” said Kyle Kelhofer, IFC Country Manager for Viet Nam, Cambodia, and Laos. “By supporting commercial banks in Viet Nam to establish a viable climate-finance portfolio, IFC is facilitating the development of a climate-finance market, attracting international lenders and further supporting Viet Nam’s shift to a low-carbon and resilient growth model.” Vietnam’s frozen pork imports increase Vietnam imported around 70,000 tonnes of frozen pork and poultry by-products worth USD727 million in the first six months of this year, up 51.5% on-year. According to the Ministry of Agriculture and Rural Development, Russia, the US, India, the Netherlands and Poland were the biggest suppliers of pork and poultry products to Vietnam. Among those, Russia topped with 45,700 tonnes valued at USD97.4 million, up 437.5% on-year. Meanwhile, between January and June this year, Vietnamese poultry product export value reached an estimated USD196 million, up 9.2%. Nguyen Van Trong, deputy director of the Livestock Breeding General Department, said that since 2019, due to the impact of the African Swine Fever, Vietnam had imported more meat products. In 2020, Vietnam imported over 141,000 tonnes of pork worth USD334.4 million, up 502.9% in value against 2019. Frozen pork prices range between VND60,000-130,000 per kilo, some 50% lower than locally-produced pork. Trong added that imported pork now accounts for 4% of the country’s total pork, so it is not big enough to dominate the local pork product market. The higher frozen pork imports have helped to reduce domestic pork prices, but in reality, many people still had to buy pork at high prices at 120,000-130,000 per kilo, Trong said, blaming this on intermediate distribution channels. However, due to the ongoing Covid-19 spread, Vietnam’s meat consumption has decreased, so the country’s meat imports would be lower this year. Pham Cong Thieu, head of the animal sciences institute, also suggested lower meat imports amid reduced demand due to the pandemic. Vietnam’s economy to surpass Singapore's by 2030: DBS Bank Vietnam’s economy is expected to grow by between 6-6.5 percent over the next decade, and at this pace, it will surpass Singapore by 2030, DBS Bank experts have said. Last year, Vietnam’s economy was worth 343 billion USD while Singapore’s was 337.5 billion USD, and Malaysia’s hit 336.3 billion USD. This ranks Vietnam the 40th largest economy globally and fourth in the Association of Southeast Asian Nations (ASEAN). In their latest forecast, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) said Vietnam is on track to outpace both Malaysia and Singapore this year. Despite two waves of COVID-19 in the first half of this year heavily impacting industrial hubs, Vietnam still posted gross domestic product (GDP) growth of 5.64 percent. Its export revenue rose 28.4 percent compared to the same period last year. Although GDP expanded slower than expected, it was still much higher than the 1.82 percent recorded in the same period last year. This suggests that policies, strategies and directives aimed at both controlling the pandemic and ensuring socio-economic development have been effective./. Bac Giang earns over 296 million USD from lychee sales in 2021 crop The 2021 Thieu lychee crop has generated over 6.8 trillion VND (over 296 million USD) in revenues from fruit sales and related services for the northern province of Bac Giang, according to the provincial People’s Committee. Farmers in the province sold more than 215,000 tonnes of Thieu lychee this year, up over 50,000 tonnes from the 2020 crop, for an average price of 19,800 VND (0.86 USD) per kg. Of the amount, 126,000 tonnes (58.6 percent) were sold on the domestic market and more than 89,000 tonnes (41.4 percent) were export. Besides the traditional market of China, Bac Giang’s Thieu lychees have also found their way into many other countries such as Japan, the US, Australia, and those in Southeast Asia, the EU and the Middle East. Bac Giang plans to keep the area under Thieu lychee stable at 28,100 ha in the 2022 crop while expanding the acreage of lychee cultivated under VietGAP and GlobalGAP standards as well as the areas with cultivation area codes for export to the US, Japan and China. The province will continue to encourage the application of advanced cultivation techniques for better fruit quality and higher value, towards increasing export of the local specialty fruit./. SBV demands interest rate reduction this month Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu has asked the Vietnam Banks Association (VNBA) to campaign lenders to slash interest rates immediately this month. The COVID-19 pandemic has taken a heavy toll on the economy and banks’ operation over the last 18 months and it is likely to evolve complicatedly, making it important for the country to fight COVID-19 and boost economic recovery at the same time, Tu said. As the pandemic lingers on, more and more enterprises are in trouble with declining resilience, he said, noting that it necessitates stronger and more active aid from all banks for the affected through debt restructuring and interest rate reduction. The official emphasised that the banking system should continue providing active and substantive support to businesses and at the same time, maintain its financial capacity and security of the national finance. The SBV will maintain flexible monetary policies and incorporate them with other fiscal and macro-economic policies to keep inflation under control, and stabilise the economy and support economic recovery, he added./. Honda Vietnam sees higher auto sales but less motorbike deliveries in June Honda Vietnam posted an 8.9-percent increase in retail sales of automobiles but a 16.9-percent drop in that of motorbikes in June, the firm announced on July 10. It sold 1,550 automobile units last month, up 8.9 percent month on month but down 51.4 percent year on year Honda City remained the most sought-after model, with 802 vehicles delivered to customers, accounting for 51.7 percent of the total sales. Meanwhile, 149,853 motorbikes were sold during the month, down 16.9 percent month on month and 14.2 percent year on year Wave Alpha was the bestseller, with 32,578 units, or 21.7 percent of the total, while Vision was the most popular scooter, with 38,542 units delivered, or 25.7 percent. Honda Vietnam also exported 17,151 motorbikes to foreign markets./. HCM City needs nearly 29.8 billion USD for mid-term public investment plan Ho Chi Minh City needs nearly 686 trillion VND (29.8 billion USD) for its mid-term investment plan for the 2021-2025 period, according to the municipal People’s Council. Of the sum, the city’s budget is estimated at 672.86 trillion VND, which will be earmarked for over 5,000 projects in line with the southern hub’s socio-economic development plan. More than 13 trillion VND is projected to come from the State budget. Priority will be given to programmes fostering collective economy and cooperatives in the 2021-25 of the city. The municipal People’s Council assigned the People’s Committee to keep a close eye and suggest the Prime Minister and centrally-run agencies consider and supplement the mid-term public investment plan in the period and the State budget, so as to help the city carry out the projects. The Committee has requested reviewing the projects, especially new ones, in a bid to ensure effectiveness./. Bac Lieu prioritises renewable energy The Mekong Delta province of Bac Lieu has chosen renewable energy as one of its top priorities, aiming to restructure the economy towards green growth and sustainable development. To capitalise on its potential and strengths, the province has taken the initiative in proposing that the Government leave the Cai Cung coal-fired power plant complex out of the national power development plan. The move is viewed an important premise which is hoped to draw investment from new domestic and foreign businesses to clean and renewable energy. According to Director of the Bac Lieu Department of Planning and Investment Huynh Chi Nguyen, the province is home to the 99.2-MW Bac Lieu wind power plant that was built with an investment of over 5.5 trillion VND (239 million USD). It is the sole offshore wind power project in Vietnam at the moment. He added that the province has attracted 19 other wind power projects with a combined capacity of more than 4,000 MW. Bac Lieu is striving to raise its total capacity of power sources to about 9,780 MW by 2030, of which wind power constitutes 5,000 MW, solar power 1,550 MW, and gas power 3,200 MW. Annual power output is projected to hit 31 billion kWh by that year. At the same time, the province is building a power network able to connect with neighbouring localities and the Mekong Delta region as a whole, thereby ensuring safe supply. That Bac Lieu is striving to become a clean and renewable energy hub of the Mekong Delta and the country at large demonstrates that it is determined to ensure national energy security as well as offers stable and high quality energy at reasonable costs for socio-economic development. Vice Chairman of the provincial People’s Committee Pham Van Thieu said that in the coming time, Bac Lieu will continue to develop energy sources in a self-reliant manner, ensuring efficiency and sustainability. The province will also work to guarantee appropriate power distribution in line with requirements on environmental protection, and review power consumption, along with creating optimal conditions for the private sector to engage in the sphere. Bac Lieu boasts huge potential and advantages in renewable energy development as it has a coastline of 56 km, alongside wind of an average speed of nearly 7 metres per second all year round. It has an average annual amount of sunshine hours of over 2,900, coupled with a relatively even terrain and is barely affected by natural disasters./. Electricity corporation, Singaporean group sign strategic cooperation agreement The Electricity of Vietnam Generation Corporation No. 2 (EVNGenco2) inked a strategic cooperation agreement with Sembcorp Industries of Singapore to explore a strategic partnership on July 11 in Can Tho city. The signing ceremony was held both online and in person with the participation of the Vietnamese Ambassador to Singapore, the Consulate General of Singapore in Ho Chi Minh City, and representatives of relevant authorities. The document focuses on several key areas of cooperation such as corporate governance, digital transformation and renewable energy projects in Vietnam. Those are Sembcorp Industries’ strong fields and the development strategy orientation of EVNGenco2 in the coming time. Therefore, EVNGenco2 views the strategic cooperation with Sembcorp a top priority in its efforts to realise its development goals./. All Viettel products win awards at 2020 IT World Awards All 12 of Viettel Group's products and services competing at the IT World Awards 2021 have won awards, making it become the Vietnamese firm with the most prizes. This was the second year all of its products and services participating in the award won prizes. The awarded products and services are in sectors that have been prioritised for digital transformation by the Government such as healthcare, finance and network security. The awarded products and servcies include Viettel's telehealth remote medical examination and treatment system, the Viettel Cloud computing platform, the All in One Customer and Revenue Management System, and the ViettelPay Digital Banking Platform. Viettel has been the pioneer in bringing Vietnamese information, communication and technology (ICT) products and services to compete with big names in the world such as IBM, Google and Verizon. The company has had 35 products win awards from the event since first entering in 2016. The IT World Awards are an annual event organised by Network Product Guide to honour outstanding achievements of the world ICT industry since 2006. The award has always drawn attention from global big IT groups such as Samsung, Ultimate Software Dell, Cisco. In Viet Nam, Viettel was the first firm to participate and receive awards at the IT World Awards. VNPT has new CEO and now aims for higher revenue in 2021 The Commission for the Management of State Capital at Enterprises on July 8 appointed Huynh Quang Liem as the new CEO of VNPT. Lien was born in 1970 and joined VNPT in 1992. He took a number of positions at VNPT, including director of VNPT's Ho Chi Minh City branch from 2015 to 2017. Before his new position as the CEO of VNPT, he was deputy general director of VNPT Group since March 2017. On March 15, Lien was elected as acting CEO of VNPT. Liem graduated from Ho Chi Minh City University of Technology and has a Master of Electronics and Telecommunications of New South Wales University (Australia). In 2020, VNPT saw its net revenue and after-tax profit fall 3 per cent and 0.24 per cent, respectively, compared to 2019. In 2021, VNPT set its revenue target at VND45.16 trillion ($1.96 billion), which would mean an up of 5 per cent on-year. Khanh Hoa wants to build $561 million expressway The People's Committee of Khanh Hoa province in Vietnam’s south-central coast has just submitted Official Letter No. 5919/UBND-XDND to the prime minister proposing the implementation of the Van Phong-Nha Trang project belonging to the Eastern Part of the North-South Highway network. The leaders of Khanh Hoa People's Committee proposed that the PM assigns the province to take on the implementation of this major highway project in the next five years, with the participation of state budget capital as regulated. "Khanh Hoa province also would like to borrow bond sources for land clearance work from the government because the locality still faces many difficulties and issuing local bonds remains not feasible," said an official letter signed by Nguyen Tan Tuan, Chairman of Khanh Hoa Province People's Committee. According to Decision No.326/QD-TTg from 2016 on approving the development planning of Vietnam's highway network up to 2020, the scale of the Van Phong - Nha Trang section within the North-South Highway network in the Eastern Spur – which spans from northern mountainous province of Lang Son (Huu Nghi border gate) to Ca Mau province in the southernmost features four lanes – will have a 24.75m wide roadbed with designed maximum speed for vehicles of 100-120km per hour. To match the burgeoning transportation needs, balance resources, and ensure investment efficiency, the project management board proposed the project to consist of different investment phases, in which phase 1 involves building four lanes with limited traffic. The roadbed in this phase would be 17m wide, with an emergency stop for every 4-5km, operating according to the newest highway standards. The project is proposed to be invested in the form of a public private partnership, with the estimated total investment value excluding loan interest reaching VND12.9 trillion ($561 million). If approved by the competent authority, the project will begin to select investors in early 2022 and start its construction after about six months, with completion and opening to traffic set for the end of 2024. Coal conundrum ahead forces Vietnam to rethink priorities While the pressure on the environment and issues like climate change are increasing, it remains difficult for Vietnamese companies and the government to turn away from fossil fuels completely. However, experts warn that while a strong reliance on them will only increase related problems, using state-of-the art technology would count most. State-owned Electricity of Vietnam (EVN) and Vietcombank on June 30 signed a credit contract to finance the Quang Trach 1 thermal power plant with a total investment of $1.78 billion. Nghiem Xuan Thanh, chairman of the board of directors of Vietcombank, said that it will grant credit worth $1.17 billion to EVN, which will be disbursed over four years, with the loan term set for 15 years. Existing technology allows to minimise the impact of coal-fired power on the environment, said Nguyen Tai Anh, deputy general director of EVN. According to Tai Anh, the Quang Trach 1 plant will be equipped with modern technology to ensure environmental protection. Additionally, the plant will use synchronous systems of wastewater treatment, gas exhaustion, and dust filtration. Among these, the gas emissions will comply with Vietnam’s environmental standards that are equivalent to those of the World Bank. EVN has chosen advanced technology for Quang Trach 1 to minimise emissions to the environment, but this also renders the entire project more expensive. For example, Japan’s coal-fired power technology has a roughly 10-20 per cent higher investment cost than the plants that Vietnam is investing in. That means a 1,200MW plant that would normally require an investment of about $2.2-2.4 billion, would then cost an additional $220-480 million, which of course, would be reflected in the cost of electricity. The low cost and advantages allow coal-fired power to maintain its position in the development strategy of Vietnam. Truong Duy Nghia, chairman of the Vietnam Association of Thermal Science and Technology, said that coal-fired thermal power has the lowest cost (about 7 US cents per kilowatt-hour). Moreover, the investment capital is not too high, equivalent to around $1,500 per kWh, lower than hydroelectricity, solar, wind, and nuclear power. The electricity output is large, meeting the demand amid the current high economic development in Vietnam. Another advantage, according to Nghia, is that the construction of a coal-fired power plant is not as complicated as hydroelectricity. Coal-fired power plants only need to be located near a river with a large flow, or along the coast. The construction of such a plant would also only take about three years. With these advantages, it comes as no surprise that in recent years, the south-central region of Vietnam has established several coal-fired power plants, such as the Vinh Tan plant in Binh Thuan province, with a total capacity of over 6,200MW. As such, EVN continues to put its faith in coal power, while many countries and institutions around the world decided to turn away from this type of energy to switch to solar and wind power – not only are these renewables more eco-friendly but the prices of these sources are becoming more competitive. The Renewable Energy Policy Network for the 21st Century report showed that renewables are increasingly cost-competitive compared to fossil fuels. By the end of 2018, electricity generated from newly invested solar and wind power plants had become more economical than electricity from fossil fuel-powered plants in many parts of the world. In addition, in some locations, it is more cost-effective to build solar and wind power plants than to continue operating existing fossil fuel power plants. Data from the International Renewable Energy Agency also showed that the price of electricity from solar and wind power declined dramatically from 2010 to 2019. On average worldwide, the price of solar power has decreased by 82 per cent, with the price of onshore and offshore wind falling by 39 and 29 per cent, respectively. According to the Institute of Energy under the Ministry of Industry and Trade, Vietnam’s electricity system ensured supply for socioeconomic development and national security in the last decade. The average commercial output per capita increased from 982 kWh in 2010 to 2,320 kWh in 2020. The transmission has also been meeting the requirements of power source projects within the entire power system. With the backup rate of power sources in 2020 reaching 22.2 per cent, the system also ensures power supply for the current demand. In Vietnam, coal-fired power is currently the main source of electricity, and the installed capacity increased significantly from about three gigawatts in 2010 to 20.2GW in 2019, accounting for about 36 per cent of total installed capacity. The total output of coal power plants in 2019 stood at about 120 billion kWh, accounting for about 50 per cent of the total distributed output. Currently, there are 32 coal-fired power plants in operation in Vietnam, most of which are located in the northeast, near the coal mines in Quang Ninh province. Besides these, there are eight factories under construction and 27 factories planned. However, this impressive growth in coal power also means that Vietnam has been and will pay significant environmental costs. The establishment of coal-fired power centres in Vinh Tan, Duyen Hai, and Mong Duong also led to the emergence of environmental pollution like ash and fine dust, which could cause serious health problems for the people in the surroundings. Dr. Tran Ba Quoc from the High-tech Research and Development Institute at Duy Tan University said that burning fossil fuels emits much hazardous waste into the atmosphere. “Coal combustion in thermal power plants emits 84 of 187 hazardous wastes in the air as determined by the US Environmental Protection Agency. Many other studies from India, China, and Europe also warn that burning coal releases many harmful pollutants into the atmosphere,” Quoc explained. Studies have shown that the full operation of all coal-fired power plants in Vietnam can render the concentration of dust in the air 30-300 times higher than Vietnamese standards. Surveys with people living in provinces with coal-fired power plants such as Thai Binh, Quang Ninh, Haiphong, Ha Tinh, Tra Vinh, Binh Thuan, and many others show that the air quality has been getting worse since the plants came into operation. However, coal-fired power is still meant to contribute a significant proportion to Vietnam’s energy production. According to the Power Development Plan VIII (PDP8), by 2030, the total installed capacity of coal-fired power plants will be nearly 17,000MW, 19 per cent higher than in 2020 (14,300MW). Quoc said that if Vietnam continues to build coal-fired power plants, it is inevitable that air quality will continue to be affected more strongly. According to scientific simulation results, if coal-fired power plants are developed according to the PDP8, by 2030, the concentration of harmful substances released into the environment will be up to 8.6 times higher than in 2011. “Vietnam needs a sustainable power scheme that ensures both energy and environmental security. Long-term exposure to air pollution will increase the likelihood of diseases. Thus, these negative effects should be considered in the decision-making process related to coal-fired power development in Vietnam,” Quoc argued. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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VIETNAM BUSINESS NEWS JULY 1315:49 Khanh Hoa proposes developing Van Phong-Nha Trang expy project
 Khanh Hoa Province has sought the Government’s approval to develop the Van Phong-Nha Trang expressway project, which is part of the North-South Expressway project during the 2021-2025 period, under the public-private partnership (PPP) format, a Transport Ministry representative said today, July 9. The south-central province sought to borrow loans from the Government’s bond issues to implement the site clearance work, as it is facing financial obstacles and planned to mobilize PPP capital for the construction. According to the project’s prefeasibility study submitted to the ministry, the 83-kilometer project will start from Van Ninh District’s Van Tho Commune to Dien Khanh District’s Dien Tho Commune. The four-lane Van Phong-Nha Trang expressway will allow vehicles to travel at 100-120 kilometers per hour, requiring a total investment of VND12.906 trillion. Once the investment for the project is approved, the province will begin investor selection in early 2022. Then it will start work on the project six months later and put the project into service by late-2024. It will connect with other subprojects of the North-South expressway such as the Nha Trang-Cam Lam and the Cam Lam-Vinh Hao expressways in the south-central provinces of Khanh Hoa and Binh Thuan. VNA to pilot digital health passport this week The national flag carrier Vietnam Airlines (VNA) has announced that it will pilot the International Air Transport Association’s (IATA) Travel Pass mobile app for digital health verification on two VN301 flights, which will depart from Japan’s Narita airport to Danang on July 15 and 23. The move is aimed at implementing the cooperation agreement signed by VNA and IATA in May this year, reported VietnamPlus. The IATA Travel Pass is a mobile app that allows air passengers to store and manage their Covid-19 testing and vaccination certificates. The app is available on the iOS and Android stores. Passengers who want to participate in the pilot program can register on the official website of the carrier at least three days before their departure, download the IATA Travel Pass app, create their account and insert their flight information into the app. In addition, passengers eligible to join the program must be over 18 years of age and have a negative Covid-19 test certificate issued by testing units that have registered with IATA. As the app is in the trial period, passengers will need to show a physical copy of their Covid-19 testing results upon the request of authorities in the destination countries. Passengers can visit the carrier’s website at https://www.vietnamairlines.com/vn/vi/plan-book/experience/iata-travel-pass for more information on the use of the digital health app. Digital health passports took effect in member countries of the European Union from July 1 this year, which has gradually paved the way for efforts to lift travel restrictions in the bloc. VNA hopes that if the pilot program is successful, the Government will consider implementing this mechanism on a larger scale, thus accelerating the reopening of regular international flights to Vietnam in the upcoming period. MB achieved record low bad debt ratio in H1 The information was released at the bank’s conference to review business results in the first six months of the year in Ha Noi on Saturday. MB accelerated the handling of bad debts and increased risk provision in the six-month period. The ratio of the risk reserve fund to bad debts reached 311 per cent, more than double the level at the end of 2020. This means MB has a very high “defensive” ability when having bad debts. With the above results in terms of safety in terms of credit quality, MB and Vietcombank are the two banks with the highest ratio of bad debt provision in the entire banking industry. Luu Trung Thai, MB’s vice chairman of management board cum general director said by the end of June, the total asset of MB Group (including MBBank and subsidiaries) reached more than VND524 trillion (US$22.7 billion), increasing 5.9 per cent from the beginning of the year. Of which, credit rose by 10.5 per cent to VND340 trillion. Its consolidated revenue in the January-June period exceeded VND22.9 trillion, representing a 44 per cent year-on-year increase. Of which, the pre-provision revenue alone reached more than VND14.6 trillion, up 44 per cent from the same period last year. MBGroup's pre-tax profit post high growth. MB has also enjoyed a top business performance in the period with a return on asset (ROA) ratio of 2.48 per cent and a return on equity (ROE) ratio of 23.28 per cent. The bank's governance indicators also maintained good levels like the cost-to-income ratio (CIR) of about 28.6 per cent, the non-interest income ratio of more than 30 per cent and the average before-tax profit per capita was 1.6 times higher than the same period last year. Thai said its newly issued international credit card market share reached 17 per cent in the period, the highest level in the country. Its subsidiary companies also saw high business results, like Military Insurance Corporation (MIC) becoming among the top five insurers in the country. Notably, MB has many outstanding products and services relating to digital transformation that contributed to its high growth in the period like MB SmartBank and opening a bank account on MB app through electronic know-your-customer (eKYC). It is expected that MB would have five million new users using its app by the end of this year, triple the figure in 2020. MB has also donated more than VND100 billion so far for the Government’s COVID-19 prevention efforts. The Government issued Resolution No 63/NQ-CP on key tasks and solutions to promote economic growth, public investment disbursement and sustainable exports in the year-end months and the beginning of 2022. Of which, the Government asked the State Bank of Viet Nam to work with ministries to propose credit policies to support businesses, people and those affected by COVID-19. Amid the pandemic’s complicated developments, both economic sectors and credit institutions face risks of increasing bad debt ratios. This is why each bank working to overcome difficulties to have positive business results is crucial. Deputy Governor of the central bank, Dao Minh Tu asked banks to implement two targets of enhancing supports to the economy, businesses while ensuring the safety for the banking system not only in short-term but also medium and long term period. ABBANK gets central bank green light to hike charter capital The proposal has been approved by the State Bank of Vietnam. The issuance will be divided into two phases. In the first, it will issue 114.26 million shares to existing shareholders at VND10,000 per share at a rate of 20 per cent, and another 11.43 million to employees under an ESOP scheme. In the second, it will issue bonus shares to existing shareholders by capitalising undistributed profits of VND2.26 trillion and VND183.4 billion from additional chartered capital reserve fund. They will add up to nearly 243.95 million shares. Dao Manh Khang, the lender’s chairman, said: “Through this capital increase, ABBANK's financial potential will be strengthened to serve the needs of its business expansion and it will invest in key projects, including digital applications, to improve its competitiveness. “The consensus among shareholders to increase the charter capital, including the issuance of bonus shares instead of cash dividends, shows their trust in ABBANK's development potential.” The bank’s pre-tax profits went up by 85 per cent in the first half to VND1.16 trillion ($50.4 million). Licogi 13 to transfer entire stake in Quang Tri Solar Power Company The value of the transfer is expected to reach more than VND456 billion (US$19.9 million). VN Green Holdings is a foreign organisation with more than 25 years operating in Viet Nam, with financial potential and investment experience in many fields. The acquisition of the stake in Quang Tri Solar Power Company is part of its energy investment strategy, demonstrating a strong commitment to sustainable investment in Viet Nam. Quang Tri LIG solar power plant has a capacity of 49.5MWp with a designed output of 67,960 MWh per year. The plant has been in operation since May 2019, fully enjoying the Government's incentives in renewable energy. Quang Tri Solar Power Company Limited currently has a charter capital of nearly VND242 billion, wholly owned by LIG. In 2020, LIG established three companies in Quang Tri, LIG Quang Tri Solar Power JSC, LIG Energy JSC and Licogi 13 Solar Power Company Limited. However, due to failing to meet the prescribed conditions, the above units were dissolved. On the stock market, LIG is currently traded at VND7,000 per share, up nearly 15 per cent compared to early this year. HNX approves the listing of Phuoc An Port on UPCoM The reference price on the first trading day is VND10,100 (US$0.44) per share. Phuoc An Port project is located in Nhon Trach district in the southern province of Dong Nai, which is the center of the Southern key economic region with a total investment of up to VND19 trillion, including two zones. Phuoc An Port, the first zone, covers an area of 183ha, berth length of 3,050m, including six container berths and four general berths, receiving cargo ships of 60,000DWT, capacity of 2.5 million TEU per year and 6.5 million tonnes of goods per year. The second zone is the Port Logistics Service Area with an area of over 550 hectares, including a modern road system and convenient inland waterway system. In 2017, the company's profit after tax was nearly VND11 billion, but in 2018, it lost more than VND13 billion. The figure in 2019 was nearly VND18, and nearly VND14 billion in 2020. By the end of 2020, the company's cash and cash equivalents reached more than VND45 billion, down VND673 billion compared to the beginning of the year, of which mainly were deposits at banks. Coffee exports enjoy price surge over five-month period Vietnam’s coffee exports during the five months of the year declined by 3% to US$1.3 billion, despite recording an increase of 7.6% in price compared to the same period last year, according to figures released by the General Department of Vietnam Customs. May alone saw local coffee exports decrease by over 1% in terms of both volume and value compared to the previous month. However, the coffee export price witnessed a slight increase by 0.2% to US$1,869.3 per tonne. During the five-month period, the country exported 715,263 tonnes of coffee worth US$1.3 billion, a drop of 12% in volume, but marking a rise of 7.6% in price compared to the same period from last year. The German market was the primary recipient of Vietnamese coffee exports during the reviewed period, with turnover reaching US$178.67 million, accounting for 14% of the nation’s total coffee export turnover, while the export price also witnessed an annual rise of 15.6% from the same period last year. Southeast Asia represents the second largest consumer of Vietnamese coffee in the opening five months of the year with turnover at US$149.67 million, down 3.5% in volume but up 6.7% in turnover, while the export price also enjoyed an annual rise of 10.6%. Coffee exports to the US also decreased 24.7% in volume to US$101.09 million, down 18.6% in value but up 8.1% in price. Elsewhere, the Chinese market can be viewed as the only bright spot in terms of local coffee exports with turnover increasing by 52.7% to US$52.8 million, up 61% in volume. Nearly 78 pct of manufacturing, processing firms expect stable, better performance in Q3 Some 39.2 percent of surveyed manufacturing and processing enterprises expect better performance in their production and business in the third quarter of 2021, and 38.6 percent believe to enjoy stable production and business, according to a survey recently conducted by the General Statistics Office (GSO). Meanwhile, 22.2 percent of responded enterprises predict they may face more difficulties than the period quarter. The GSO said that industrial production in the second quarter reported positive growth as production and business activities were maintained and gradually recovered, with the added value up 11.45 percent year-on-year. In the first half of this year, the industrial sector’s added value is estimated to increase by 8.91 percent year-on-year, of which the manufacturing and processing industries grew by 11.42 percent. At present, major groups are planning to invest in Vietnam, mainly in electronic production and component manufacturing. As of June 30, the inventory rate of the manufacturing and processing industries increased by 24.3 percent year-on-year. To address inventory and boost production, the Ministry of Planning and Investment proposed localities continue stepping up administrative procedure reform and simplifying specialised inspection procedures. On June 1, the number of labourers working in industrial firms decreased by 1.4 percent month-on-month, and 1 percent year-on-year./. Biendong POC exceeds revenue target in H1 Bien Dong Petroleum Operating Company (Biendong POC), a subsidiary of the Vietnam Oil and Gas Group (PetroVietnam), has reported that its revenue in the first six months of 2021 exceeded the set plan by four percent. The company’s gas exploitation output reached 41 percent of the yearly plan. After nearly eight years of operation, Biendong POC’s total accumulated revenue hit 3.88 billion USD, 311 million USD higher than the combined investment and operation cost. With synchronous measures, Biendong POC has overfulfilled most of its targets in the period. The application of modern technology in management and administration as well as production has helped the firm improve its production and business activities despite complicated developments of the COVID-19 pandemic. According to Sergey Raykhert from Gazprom, its partner, Biendong POC has safely and effectively operated rigs amid difficulties caused by the COVID-19 pandemic in the first half of 2021. General Director of Biendong POC Ngo Huu Hai said the enterprise will continue with comprehensive solutions to ensure its stable operation in the remaining months of the year./. The VinFast Commercial and Services Trading Co. Ltd officially put its branches in the US, Canada, France, Germany, and the Netherlands into operation on July 12. The move aims to prepare for the debut of Vinfast’s electric cars in those markets and is a step towards the goal of turning VinFast into a global smart electric car manufacturer. The US, Canada, France, Germany, and the Netherlands are five key markets in the firm’s business expansion plan. VinFast has reportedly worked to quickly complete its operation apparatus in these countries over the past year. Apart from the key management posts held by Vietnamese, the company has recruited a number of experienced automobile and business experts from major car makers like Tesla, BMW, Porsche, Toyota, and Nissan to complete its system, expand the network of partners, and prepare for the debut. Vinfast has also tailored its business strategies to the specific characteristics of each market. The Vietnamese car maker is set to launch two smart electric car models, VF e35 and VF e36, globally in March 2022. CEO of the company Thai Thi Thanh Hai said VinFast considers North America and Europe’s road maps for banning internal combustion engine cars to switch to electric vehicles as a great chance for it to conquer global markets. Earlier, its first electric car model, VF e34, set a record in the Vietnamese market when over 25,000 orders were made in just a short period of time after the launch./. Hoc Mon and Binh Chanh power companies of the Ho Chi Minh City Power Corporation (EVN HCMC) have completed power supply to new COVID-19 treatment hospitals set up in the two districts. According to EVN HCMC, a mobile transformation station with a capacity of 400 kVA, and a 250-KVA generator were installed in the COVID-19 treatment hospital No.5A in Hoc Mon district. Meanwhile, seven transformation stations and two generators were installed to ensure power supply for a COVID-19 treatment hospital in Vinh Loc B commune in Binh Chanh district. Another mobile transformation station with a designed capacity of 560 kVA was provided for a COVID-19 treatment hospital in Binh Hung commune. Earlier on July 10, the Thu Duc power company put 11 transformation stations with a total capacity of 22MWA into operation in six resettlement areas in An Khanh ward, which are being used as a temporary hospital and concentrated quarantine areas. According to EVN HCM City, the firm has ensured power supply for more than 150 facilities serving COVID-19 prevention and control in the city, including temporary hospitals, medical stations, concentrated quarantine sites, COVID-19 check points and 538 vaccination facilities./. Deputy PM urges Mekong Delta localities to raise guard against COVID-19 Deputy Prime Minister Vu Duc Dam on July 12 asked Mekong Delta localities to raise guard against COVID-19 given a surge in local infections. All of returnees from pandemic-hit areas have to make health declarations truthfully to facilitate the testing and quarantine work, Dam, who is also head of the National Steering Committee for COVID-19 Prevention and Control, said at an online meeting with representatives from 12 cities and provinces in the Mekong Delta region. Each locality should review their medical equipment, the capacity of concentrated quarantine and treatment facilities, and personnel for COVID-19 testing, the Deputy PM said. He asked the cities and provinces to step up screen tests in hospitals, promptly activate monitoring systems to get information about people displaying COVID-19 symptoms, and improve testing capacity. The localities were also requested to re-organise treatment systems for COVID-19 patients, who, Dam said, should be classified into three groups – patients with no or mild symptoms, patients with symptoms, and patients in critical conditions. At the meeting, the participating officials shared difficulties in pandemic prevention and control in their localities, mainly relating to testing capacity. Deputy Minister of Health Do Xuan Tuyen said the localities are expected to record more COVID-19 cases in the time ahead, and urged them to better assign tasks, and seriously observe quarantine and lockdown regulations./. Petrol price up 850 VND per litre on July 12 The Ministry of Industry and Trade (MoIT) and the Ministry of Finance (MoF) announced the adjustment of petrol prices to be over 850 VND higher per litre at 3pm on July 12. Accordingly, the price of bio-fuel E5 RON 92 is 20,610 VND per litre, an increase of 850 VND; and that of RON95-III, 21,783 VND, a rise of 867 VND per litre. The price per litre of diesel 0.05S is 16,537 VND, up 418 VND. According to the two ministries, the prices of petrol and oil in the global market had been fluctuating, mostly increases, for the past 15 days. Announcements regarding fuel price changes are scheduled every 15 days to keep up with swings in the global market./. VAMA members see fall in car sales in June Members of the Vietnam Automobile Manufacturers’ Association (VAMA) sold 23,587 vehicles in June, down 8 percent month-on-month. They included 15,802 passenger cars, down 10 percent from May; 7,131 commercial vehicles, down 5 percent; and 654 special-use vehicles, down 25 percent, the association said on July 12. The numbers of domestically-assembled vehicles and imported completely-built-up units sold in the month stood at 13,365 and 10,222, respectively, down 3 percent and 13 percent. Toyota topped the list of best-selling brands with 5,127 vehicles, followed by Kia (3,290), Mazda (1,862), Honda (1,550) and Ford (1,284). VAMA members’ sales totalled 150,481 units in the first half of this year, up 40 percent year on year, with passenger cars up 37 percent year-on-year, commercial vehicles up 48 percent, and special-purpose vehicles up 68 percent. Apart from VAMA members, other brands were also present in Vietnam’s auto market, such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan Subaru, Volkswagen and Volvo, but they have not posted their business results./. Soc Trang develops cattle farming Cattle breeding has long been the strength of the Mekong Delta province of Soc Trang, contributing to raising the living conditions of many local households, especially those belonging to the Khmer ethnic minority group. According to the provincial Department of Agriculture and Rural Development, as a Mekong Delta locality that has a hot and humid climate and is less prone to flooding, Soc Trang is very convenient for cow farming. Thanks to the province’s project on dairy farming development for 2013-2020, by the end of 2020, the total herd of dairy cows in the province had reached more than 10,000 heads, over 5,300 heads higher than that in 2013. Meanwhile, local households are raising 44,000 heads of beef cattle. The traditional husbandry has generated jobs to over 15,000 locals in rural and Khmer-inhabited areas, thus contributing to poverty reduction and agricultural development. Vuong Quoc Nam, Vice Chairman of the provincial People’s Committee, said that in the coming time, the locality will continue developing cattle farming projects, and increasing State management in carrying out the projects. He stressed the need to pay more attention to high-efficient husbandry models./. Kien Giang attracts investment in tourism projects <span style='font-size:13.0pt;mso-bidi-font-size:12.0pt;color:#003366'>browser not support iframe.<o:p></o:p></span> The southern province of Kien Giang has lured over 1 trillion VND (43.4 million USD) worth of investment in tourism projects spanning over 21 hectares in the first half of this year, according to the provincial Department of Tourism. The department said that the resurgence of COVID-19 has led to difficulties in attracting tourism investment. Phu Quoc island city ranked first in investment attraction with 283 projects, of which, 42 projects have come into operation. The province is supporting and creating favourable conditions for businesses to accelerate the implementation of projects. It is pushing forward with the construction of transport infrastructure to better serve tourism and attract investment. In the first six months of this year, Kien Giang welcomed over 2.3 million tourist arrivals, reaching 33 percent of the yearly target, with an estimated total revenue of more than 2.68 trillion VND. In the remaining half of the year, the province sets a target of receiving 3.1 million to 5 million visitors, depending on the development of the COVID-19 pandemic./.
Thanh Hoa has 24 more provincial-level OCOP products The north central province of Thanh Hoa recently announced 24 products meeting standards of its “One Commune-One Product” (OCOP) programme, raising the total number of such products to 76. According to Bui Cong Anh, deputy head of local coordinating office for new-style rural area building, most of the products selected for classification as OCOP products tend to develop well and can compete with similar products in the market. Of these, four products were given four stars, including Viet Trang sedge products of Viet Trang Import and Export Ltd. Co. in Nga Son district; Quy Chau bronze drum of Dong Son Che Dong Traditional Bronze Casting Company Limited; Toan Linh bronze drum of Tra Dong village’s traditional craft bronze casting Co. Ltd in Thieu Hoa district; and FUWA3e floor cleaner of FUWA Biotech Co. Ltd in Thanh Hoa city. Shrimp paste of Khue Cac Co. Ltd (Hoang Hoa district), Solanum procumbens tea (Trieu Son district) and Nong Phu broom of Nong Phu Trading and Service Company Limited (Vinh Loc) were recognised as three-star OCOP products. Of 16 new products, three meet four-star standards. They include Nam Giao cantaloupe of Tay Do Agricultural Cooperative (Vinh Loc district); TODIKA supplementary food and Cordyceps sinensis of Thao Ngoc Viet Joint Stock Company (Nghi Son town). Anh said that as many as 76 products from localities in the province have been certified as meeting OCOP standards since 2018. After recognising as OCOP products, most businesses have expanded their production scale and their produce are well received and appreciated by consumers. In order for the programme to develop sustainably and effectively, Thanh Hoa province always pays attention and strictly implements the evaluation and ranking steps to ensure they met quality standards, he said, adding that the province aims to rate about 80 OCOP products by the end of this year. The implementation of the OCOP programme in Thanh Hoa has obtained positive results, according to participants at a meeting held to review the province’s implementation of the programme in the 2018-2020 period. OCOP products have seen improvements in terms of quality, design, packaging and traceability, they said. Many OCOP products of Thanh Hoa are exported to foreign countries such as Russia, the Republic of Korea, South Africa, Switzerland, Sweden, the United States, Japan and China. Le Gia shrimp paste from Hoang Hoa district’s Hoang Phu commune has been exported to Russia, the Republic of Korea, Taiwan (China) and South Africa. Bamboo straws have been shipped to Switzerland, Sweden, and the United State. Handicrafts and other products made from sedge are sold in 64 supermarkets in the United States. A preliminary survey conducted on enterprises engaged in the programme showed that their turnover growth on average increased more than 15 percent after their products were recognised as OCOP goods. Le Duc Giang, Vice Chairman of the provincial People’s Committee, said Thanh Hoa province has taken part in trade fairs held in the province and other localities to stimulate the production and consumption of OCOP products. Last year, it has established six sites for showcasing and selling OCOP products. Via these sites, outstanding rural products from the province will have access to more consumers, providing a basis for cooperatives, businesses, producers and farmers to continue improving goods’ quality and design to meet customers’ increasing demand. Over the past three years, Thanh Hoa has spent over 114 billion VND (4.9 million USD) supporting the implementation of the OCOP programme. Of these, more than 18.2 billion VND (791,622 USD) came from the central budget, 36 billion VND (1.5 million USD) from the local budget and the rest from producers. In the 2021-2025 period, the province is striving to have at least three OCOP products rated as five stars, more than 100 as three and four stars, he said. It will complete the application of information and technology in the production and trading of OCOP products. Each district will have at least one showroom which displays and sell these products. Creative design centres will also be formed in association with OCOP products promotion during the period. The OCOP was initiated by the Ministry of Agriculture and Rural Development in 2008, following the model of Japan’s “One Village, One Product” and Thailand’s “One Tampon, One Product”. It is an economic development programme for rural areas focusing on increasing internal power and values, which is also meant to help with the national target programme on new-style rural area building./. Exporters face slew of difficulties due to COVID Though exports remain strong, several sectors face difficulties due to the COVID-19 pandemic and require support from the Government if they are to sustain the growth, experts said. Vietnam is benefiting from the disruption of global supply chains, and manufacturers are seeking to diversify supply, including from Vietnam. Global demand is recovering and this is an opportunity for Vietnam to boost its exports of consumer and industrial products, according to the Ministry of Industry and Trade. It forecast Vietnam's foreign trade to remain robust as free trade agreements are gradually being implemented in a more comprehensive and effective manner. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the EU-Vietnam Free Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement will continue to smooth the way for Vietnamese goods to enter partner markets with preferential tariffs. Yet Pham Xuan Hong, Chairman of the Ho Chi Minh City Association of Garment, Textile, Embroidery and Knitting, said he remains worried since some members have had to suspend production since they are in a lockdown area or their workers are isolated for living in such areas. “Though [the impact] is not too serious yet, there is cause for worry since we do not know when the pandemic would be controlled. If social distancing is prolonged, it will definitely affect export orders signed with foreign partners.” Truong Dinh Hoe, Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said he has petitioned the Ministry of Agriculture and Rural Development to resolve the problem of lack of containers for exports and reduce the growing freight rates. In April freight for a 40-foot container to the west coast of the US was around 5,000 USD, but now it is more than 10,000 USD. It used to be less than 1,000 USD during pre-pandemic times Freight rates to Europe are also at high levels of 7,000-8,000 USD. Tran Van Linh, Chairman of the Thuan Phuoc Seafood and Trading Corporation, said that marine transportation fees were at unreasonably high levels but import-export companies like his had to accept them. Cancellation of orders or failure to deliver in time would undermine the company’s prestige and efforts to find customers in future. Truong Tien Dung, Director of the Sai Gon Aquatic Products Trading Joint Stock Company, said despite the increase in transport costs, it would be impossible to negotiate increases in products prices because COVID has caused consumers in places like the US and the EU tighten their purse strings. But the high transport costs are eating into companies’ profits, and not just the seafood sector but also others’ exports would be hit hard, he warned./. Businesses urged to devise strategy to cope with EU imposition of VAT Local firms have been advised to develop a long-term strategy when exporting to the EU market due to value added tax (VAT) being officially applied for online B2C transactions of suppliers from third countries to its customers, according to the Vietnam Trade Office in Belgium and the EU. At present, EU members have established the Import One Stop Shop (IOSS) System aimed at conducting customs clearance for online transactions valued at EUR150 or less. Nguyen Thi Minh Huyen, deputy director of the Department of E-commerce and Digital Economy, said the latest regulations will contribute to the development of e-commerce transactions and serve to create an equal competitive environment among various businesses both inside and outside of the EU. However, amid growing e-commerce transactions, the new EU rule will affect both EU consumers and businesses who process B2C transactions via online platforms or from a third country outside of the EU. Furthermore, with the EU's VAT calculation method, local firms are anticipated to face a number of hurdles when exporting their agricultural products or goods to the EU market moving forward. Huyen noted that the new regulation is expected to lead to higher costs for e-commerce transactions, thereby leading to numerous difficulties for businesses. The European-American Market Department has therefore advised local online sellers to apply for business registration in an EU member state in the event they wish to sell products to the EU, while simultaneously declaring transactions according to the IOSS website of each member state. Novaland issues US$300 million of international convertible bonds Novaland Investment Group Corporation (Novaland, NVL) has successfully issued US$300 million of international convertible bonds for foreign investors, without warrants and collateral, and will be listed on the Singapore Stock Exchange (SGX). They are 5-year bonds, starting from the date of issuance (maturity in 2026) with a fixed interest rate of 5.25 per cent per year. Under the terms, these bonds are convertible into common shares. The exchange price is VND135,700 per share, 15 per cent higher than the closing price at the offering date of July 7. On July 7, the market price of NVL shares was VND118,000 per cent share. The par value of each bond is $200,000. Credit Suisse (Singapore) Limited is the exclusive global manager and exclusive book builder for Novaland's fundraising this time. The issuance received interest from many reputable international investors with the registration value higher than its issuance plan. The real estate developer said that the capital mobilised from the issuance is used for developing key projects and increasing the land fund to complete the profit plan in the next three years. Moreover, the success of this transaction will strengthen Novaland's debt structure as its medium and long-term debts rise significantly. SeABank issues 110 million shares for dividend payment Southeast Asia Commercial Joint Stock Bank (SeABank, SSB) said that it will issue more than 110 million additional shares to pay 2020’s dividend at a rate of 9.12 per cent, as well as issue 23.5 million shares for employees (ESOP). The capital to issue dividend stocks is from the accumulated undistributed profit after tax according to the consolidated audited financial statements for 2020. The last registration date to exercise the right to receive dividend stocks is July 26 with a rate of 9.12 per cent. In June, SeABank was approved by the State Bank of Vietnam (SBV) and the State Securities Commission (SSC) to increase the maximum charter capital by more than VND2.697 trillion through the form of stock issuance to pay dividends from 2020’s retained earnings after allocating provision funds, issuing stocks for existing shareholders and preferred shares for employees. In March, the bank was officially listed on the Ho Chi Minh Stock Exchange (HoSE) with ticker symbol SSB. Insurance companies performing well, but cautious about business prospects in H2 Insurers have become more cautious about their business prospects in the second half of the year according to a survey conducted by the Viet Nam Report (VNR). In Viet Nam, following the growth momentum of 2020, 75 per cent of insurance enterprises participating in VNR's survey recorded positive results in 2021. In the fourth wave of the COVID-19 outbreak, however, insurers have become more cautious about their business prospects. Only slightly more than half are optimistic about their business results in the second half of the year, a significant reduction from just over the 90 per cent recorded last year. Meanwhile, the number of insurers who think that business would be more difficult has increased sharply from 4.8 to 35.3 per cent of respondents. The VNR survey showed that insurers are facing five big challenges including: increasing competitiveness in the industry, risks caused by natural disasters and extreme weather conditions, pandemics, decreased income of its client base, and insurance fraud. According to the General Statistics Office, about 22.2 million workers lost income due to the impact of COVID-19 in 2020. In the first quarter of 2021 alone, this number reached 6.5 million people, approximately one-third of 2020’s whole year figure. However, this does not mean that the door for growth opportunities is closed. VNR's survey indicates three growth drivers for the industry. These include: people's awareness and understanding of insurance increasing; technology being developed and applied to improve the insurance industry’s value chain; and the diversification of insurance distribution channels. Awareness of and about insurance has been a big contributor in growth in the industry, according to 70.6 per cent of surveyed enterprises, a sharp increase from 61.9 per cent in 2020. It’s believed that this has been driven by COVID-19 pandemic, which has brought to the fore the vulnerability of people’s personal finances. That said, the insurance penetration rate/GDP in the country is still relatively low. In 2020, Viet Nam had 11 per cent of the population participating in life insurance, with the average insurance premium-to-GDP ratio up by 3 percent. With this momentum, by 2025, it is estimated that 15 per cent of the population will participate in life insurance generating an expected revenue of 3.5 per cent of GDP. VNR said in the next normal period, risk management - the core value of the insurance industry - will be different due to fundamental changes in perceptions and behaviours of economic agents. COVID-19 has increased the need for industry stakeholders to more greatly engage with their customers. This is creating a profound shift towards a holistic service approach focused on risk management and prevention. COVID-19 can help boost the use of new technology in manufacturing With production and supply chain disruptions caused by the COVID-19 pandemic, producers and consumers have to find ways to adapt. One method is increasing the use of high technology and AI (Artificial Intelligence). Ho Minh Duc, CEO of VBee, a Vietnamese tech company providing AI text-to-speech services, said that the pandemic is providing impetus for companies and customers to change their mindset towards the application of technology. With continuing difficulties caused by COVID-19, especially the ongoing fourth wave of infections, manufacturing industries are also facing a shortage of workers due to movement restrictions and social distancing measures. This provides a chance to promote the use of technology and AI systems in mass production to cut costs and increase efficiency. Wang Yu, a research fellow at the College of Intelligence and Computing, Tianjin University, said COVID-19 posed both threats and opportunities to manufacturing industries. “As all sectors, including manufacturing companies, have suffered huge losses from the pandemic, they realise the importance of AI and intelligent manufacturing,” Wang said during “The Future of AI in Manufacturing Industries” webinar, recently held by the China Daily, China's Tianjin Municipal People's Government Information Office and Asia News Network. A survey conducted by Wang’s team on more than 470 manufacturing enterprises in Tianjin, China, in 2020 showed that companies are paying more attention to advanced manufacturing with 45 per cent of them planning to apply tech in production, while 65 per cent already did. In Viet Nam, many industrial zones like those in Bac Giang Province have become COVID-19 hotspots during the latest outbreak. According to the People’s Committee of Bac Giang Province, the pandemic has caused a daily loss of VND2 trillion (US$86.8 million) and forced more than 140,000 workers to stop working. When workers can’t come to factories, the production process is disrupted, as Viet Nam’s manufacturing industries are still labour-intensive, affecting the economy as a whole. Phan Thi Thanh Xuan, General Secretary of Viet Nam Leather, Footwear and Handbag Association (Lefaso), said that restructuring is necessary for businesses during this tough period if they want to survive. Technology is one solution to reduce the dependence on workers. “Despite rising orders, the industry still faces many difficulties from higher material prices to a scarcity of workers,” Xuan said. “Companies will come up with restructuring plans, including the application of technology, to reduce the number of workers in factories, and to increase production capacity and efficiency.” In order to not create issues for labourers when they return to factories, technology should be applied to processes which do not require a lot of workers, Xuan added. During the webinar, Neale G. O'Connor, professor and head of the Department of Accounting, Monash University Malaysia, said that intelligent manufacturing will also help with fault detection, quality control and attention to detail. However, in Viet Nam, technology and AI are currently used mostly in the finance and banking industry, as well as healthcare and agricultural sector, said Duc. "Rarely do we have technology companies making AI products for manufacturing industries," Duc added. “It will be a challenge for both technology firms and manufacturing enterprises." Corporate culture is a crucial factor. If a company’s leader and every employee are willing to take risks and make changes, they will be ready for AI. When there is demand, supply will surge. In Viet Nam, not many tech start-ups aim for industrial zones, therefore supply sources for the field are limited, Duc said. “If it is about payment or logistics solutions, tech start-ups will jump in,” Duc said. “But when it comes to production lines, they hesitate because they are short of knowledge, while it is difficult to approach manufacturing enterprises, especially ones with self-contained production lines.” “We received orders from some producers for security cameras with fire alarms, environmental sensors, and automatic lighting systems to cut costs, but they are just small links in a chain.” Moreover using tech may consume a large amount of capital which normally only big companies are willing to invest, while small and medium sized enterprises (SMEs) are reluctant to participate. The number of SMEs accounts for roughly 97 per cent of the country’s total companies. Companies also have to send their workers to training sessions to operate new systems and need to invite experts to assist and guide them in using the technology. AI requires big data to gain expected results and enterprises have to ensure the quality of input information. Data processing, which requires extensive intervention for AI projects, also needs a highly qualified IT workforce. That is another challenge for Vietnamese companies. "The work force for the IT industry has always been scarce in Viet Nam, especially for new technology and AI," Duc said. "Thus, training centres and schools need to cooperate to build an ecosystem for new technology and encourage young people to join this tough industry." Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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Construction ministry gives opinion on transfer of part of multi-billion dollar super-project10:49 The Hanoi Construction Department has sent a dispatch to the Ministry of Construction (MOC), asking for guidance on procedures that parties have to follow to transfer a part of the Ciputra urban area project.  In reply, MOC said that, regarding transfer of whole or part of a real estate project, before the 2020 Investment Law took effect, involved parties had to comply with the Article 50 of the 2014 Law on Real Estate Business. The article says for real estate projects whose investment is decided by provincial authorities, the people’s committees of cities and provinces make decisions on transfer of whole or part of the projects. Meanwhile, the PM makes decisions on allowing transfer of whole or part of real estate projects whose investment is decided by the PM. Since the 2020 Investment Law took effect, the issue of transferring projects has been addressed by the Article 75 of the 2020 Investment Law with amendment and supplement to the Article 50 of the 2014 Law on Real Estate Business. In some cases, the dossiers on the transfer of whole or part of real estate projects were submitted in accordance with the 2014 Law on Real Estate Business, before the effective date of the 2020 Investment Law, and the deals have not been completely wrapped up. The way of handling the cases, according to MOC, is mentioned in the Article 115 of the Government’s Decree 31 which guides the implementation of some articles of the Investment Law. If investors had submitted dossiers for the transfer procedures in accordance with the laws on real estate business prior to January 1 and follow the transfer procedures stipulated in Investment Law, they can choose either to continue to apply the procedures in accordance with the real estate business law or the investment law. MOC has asked the Hanoi Construction Department to compare the specific case with the regulations to strictly comply with the laws.
Ciputra, or Nam Thang Long urban area, is developed by Nam Thang Long Urban Area Development Co Ltd, a joint venture between UDIC and Ciputra Group. It is the first large urban area in Hanoi meeting international standards, designed in accordance with the master development plan of the capital city, covering an area of 300 hectares and capitalized at $2.1 billion. Prior to that, a problem arose related to the investor’s attempt to adjust the planning for the second phase of the project. This faced opposition from residents in the urban area. The PM then asked ministries and branches to clarify the planning adjustment. In September 2020, the Government Office released a report after checking foreign invested projects capitalized at over VND5 trillion. The report said the Hanoi People’s Committee asked the PM to allow the investors of six real estate projects capitalized at hundreds of millions of dollars to billions of dollars to adjust and transfer a part of their projects. The developer of Nam Thang Long Urban Area project asked for permission to transfer three component projects which inherit the conditions on non-reimbursable transfer. The Hanoi authorities also asked for permission to transfer three component projects at Tay Ho Tay (Western West Lake) registered by THT Development Co Ltd. As for the projects developed Gamuda Land Vietnam, the investor wanted to adjust the Yen So Park project by splitting the project, adjusting the project in accordance with the adjusted planning and transfer one component project in C2 urban area of Yen So Park. Meanwhile, Blemheim Group asked for permission to adjust the green technology city project, as the project was still under the site clearance process. Lotte Properties Hanoi, the developer of Lotte Mall Hanoi, wanted to adjust the scale and the operation duration of the project to 50 years since the day of land allocation. Another super-project is the smart city project developed by North Hanoi Smart CityDevelopment JSC, an enterprise established with capital contributed by BRG and Sumitomo. VNN |
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Young man captures touching photos of needy people amid pandemicCập nhậtlúc 10:55 Over the past year and a half, people across the world have found various ways to try and inspire themselves and others to get through the tough times and isolation of social distancing. Nguyen Ky Anh, 26, an interior designer, who resides in HCM City, has found his own way: taking photos of hard-working people on the streets. His photo project, titled Sài Gòn Moments, captures wrinkles on the faces and the hard work of street sellers, whose eyes and smiles contain hope for a better future.  Needy people express their happiness in Anh's photos. Photo courtesy of Nguyen Ky Anh “HCM City is now experiencing the most serious ever situation of the pandemic,” he told Việt Nam News. “More than anyone else, homeless people and poor labourers have faced challenges.” “Also due to the pandemic, I have more free time from work to carry out the project to capture the life of people I see every day on the way to work,” he said. He spends time talking to each person he photographs to try and understand their story.
Anh then posts the photos on his Facebook account with a caption and instructions on how to find the person pictured so people can support them if they want. The captions aim to show the difficulties each subject faces, for example, "grandmother Huong, 72 – lonely, without parents, no offspring, gathers bottle racks at night on Nguyen Thi Thap Street", or "Uncle Minh, 63, offers bike service, no family, no relatives" and Uncle Dien, photographer at the Notre Dame, 80, lonely but always happy. Each person is shot close-up from various angles using natural light sources. “I consider it my special support to such needy people, for whom I should spare no efforts to ease their life if I can,” he said. So far, Anh has taken photos of 10 people and plans to keep the project going indefinitely. Anh mostly takes the photos at midday or at night and has given many of them some money from himself and his friends to support them. “I hope with my photos and writing on my Facebook, they can receive more support from our community,” he said. Anh said he was not doing the project for himself. “I just want to take simple photos of the characters at work,” he said. “I hope I can send some of my feelings in the photos. The project will be a highlight of my youth journey. Quoc Dai, a fan of the photographs, admires Anh’s compassion.
“He must have great sympathy for the needy to take such photos,” he said. “I’m moved looking at thin old women selling things on the streets or disabled men working as lottery sellers. They are so inspiring with their efforts in life.” Nurturing soul The Dong Thap-born man said he would soon post pieces of writing and clips on the needy people on his YouTube channel '1st.themoments' to share more about the characters. Anh is a popular name among young travellers and is known as a travel blogger involved in community projects. A graduate of the HCM City University of Architecture in interior design, Anh now works at the Holm Decor Company. He took up photography as a second-year student and then became chairman of the university’s Photography Club. He was also responsible for the PR images of the university’s youth union. Anh has travelled widely and written a lot. “Being young, I want to explore and do whatever I want,” he said. “I feel the world is so big and I’m so small. I’d better step out of my safety zone to reach more regions and feel the diverse beauty of life.” Among the regions he has been to, Anh was most impressed by Ha Giang Province and Hue City. He captured Ha Giang in a photo collection titled Golden Season- Relaxing Season featuring the beauty of the local karst plateau, terrace rice fields and people. Hue was featured in a collection titled The Good Old Dynasty focusing on its heritage value.
“I felt much moved to visit the former royal capital with long-lasting architectural beauty,” he said. Anh likes to capture images of reality around him, while natural beauty or people can also inspire him to take photos. “At a young age, I liked literature,” he said. “I’m sensitive, love beauty and emotions. I care lots about small details as they make up the general images."
“I also nurture my artful soul with experiences in trips,” he said. “Each trip brings different stories, which help form my ideology and diversified view.” Vietnam News |
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VIETNAM BUSINESS NEWS JULY 1416:11 Proposal to establish cargo airline rejected The Civil Aviation Authority of Vietnam (CAAV) has rejected IPP Air Cargo JSC’s proposal to establish an airline specializing in cargo transport, saying that the establishment of new airlines will only be considered after 2022, once the aviation market recovers. According to CAAV, the delay in the consideration of the establishment of the cargo airline is aimed at minimizing the supply-demand imbalance amid the Covid-19 pandemic, affecting the local aviation sector’s sustainable development, the local media reported. The authority will continue keeping a close watch on the market and the developments of the pandemic and report to the Ministry of Transport about the possibility of the establishment of a cargo airline after 2022. Vietnamese air carriers have been operating flights transporting cargo and even loading cargo in cabins, to increase their revenues during the pandemic. As of June 28, seats on nine aircraft have been removed so that they can be used to transport cargo, comprising five of Vietnam Airlines and four of Vietjet. In addition, some aircraft have been allowed to transport cargo without removing their seats. The proportion of air carriers’ revenue from cargo transport activities during the pandemic period has tripled that of the pre-pandemic period. IPP Air Cargo, whose chairman is businessman Johnathan Hanh Nguyen, is an arm of Imex Pan Pacific—a retailer that makes up nearly 70% of Vietnam's luxury items market. IPP Air Cargo airline has a total investment of VND2.4 trillion, including 30% of IPP Air Cargo JSC’s equity and 70% mobilized. IPP Air Cargo expected to be granted the air transport license in the third quarter of this year and launch its first flight in the second quarter of next year. If approved, IPP Air Cargo will operate five planes in its first year of operation, seven in the second year and 10 in the third year. Market rebound led by surging large-caps On the Ho Chi Minh Stock Exchange (HoSE), the benchmark VN-Index edged up 0.10 per cent to close at 1,297.54 points. Market breadth was positive as 112 stocks declined while 265 increased. Market liquidity was lower than Monday with a trading value of more than VND15.9 trillion (US$690.8 million), equivalent to some 539.6 million shares traded on the southern market. After a sharp drop on Monday, the Vietnamese market rebounded Tuesday with the support of large-cap stocks. “The bottom-fishing cash flow has returned to the market but cautious sentiment still prevailed, hindering the growth of the indexes. The market in the morning session continuously struggled around the reference level,” said financial news site cafef.vn. Banking stocks traded differently with Vietinbank (CTG), Vietcombank (VCB), Vibank (VIB) and Lien Viet Post Bank (LPB) all dropping. Military Bank (MBB), Maritime Bank (MSB), VPBank (VPB) closed at the reference level while Asia Commercial Bank (ACB), Bank for Investment and Development of Vietnam (BID), HDBank (HDB) and Techcombank (TCB) recovered at the end of the session. Securities stocks also performed well such as SSI Securities Corporation (SSI), VNDirect Securities Co (VND) and MB Securities (MBS). Notably, penny stocks were the darlings of the market with some strong gainers like Truong Thanh Furniture Corporation (TTF), Hoang Quan Consulting-Trading-Service Real Estate Corporation (HQC), and Dong A Plastic Joint Stock Company (DAG). They all hit the ceiling prices. “The VN-Index struggled around reference level in the morning and although selling pressure increased in the afternoon session, the demand appeared at the end of the session and helped the index close with a slight gain,” said BIDV Securities Co. “Investment cash flow increased again although foreign investors were net sellers on both HoSE and HNX. “In addition, market breadth turned positive with liquidity declining compared to the previous session. According to our assessment, the current demand is still not strong enough to help the index reverse and the market may still see slight drops this week,” it said. The VN30-Index, tracking the 30 biggest stocks in market value, decreased 0.15 per cent to 1,440.87 points. Nineteen of the VN30 basket rose, while three stocks decreased. On the Ha Noi Stock Exchange (HNX), the HNX-Index rose 1.27 per cent to close at 296.70 points. Nearly 100.8 million shares were traded on the northern bourse, worth VND2 trillion. Vn-Index may recover from 1,260 Following a sharp decline of 50.84 points or 3.77% in yesterday’s trading session to 1,296.3, securities firms expect the benchmark Vn-Index to continue declining to around 1,260 before recovering. Since the launch of the new trading system on the Ho Chi Minh City Stock Exchange (HoSE) on July 5, the Vn-Index has witnessed major declines of 3.99% on July 6, 2% on July 9, and 3.77% on July 12 at the latest. Overall, the index lost a total of 123.97 points, or 8.73% in the past six trading sessions, causing evaporation of over VND464.3 trillion (US$20.16 billion) in HoSE’s market capitalization. Experts shared the view that such decline came from investors’ concern over the current Covid-19 situation that could pose severe consequences on enterprises’ performance, and eventually the economy. This came from the fact that the pandemic evolution was the main factor causing several dips of the Vn-Index in the past, with the largest plunge of 74 points or 6.67% on January 28. SHS Securities Company said there remained some positive sides in yesterday's session, however, including a sharp rise in market liquidity at an all-time high of VND37.1 trillion ($1.61 billion) and foreign investors returning to a net purchase position of over VND1.4 trillion ($61 million). Several correction phases brought the price-to-earnings (P/E) ratio of the Vn-Index to 16.5x, which is considered attractive given the market’s P/E at 18x in past months. “Investors could start buying in when the Vn-Index returns to the supporting zone of 1,260,” it noted. Viet Capital Securities also expects investors to jump back to the market when stocks are at low-zone value, especially those with the largest market cap in Vn30 Index. “If the Vn30 Index could return to the 1,460-mark, there is a high chance of recovery, otherwise, the market may face further correction periods,” stated the securities firm. Vietcombank Securities noted recent sell-offs in the past sessions provides an opportunity for market stability, as such, investors could look at stocks with healthy financial conditions and low decline level compared to the average, noting they could lead the market recovery once good news arrives.
Banks reach consensus on cutting rates for virus-hit enterprises Commercial banks have agreed to lower their lending rates to support enterprises that have been badly affected by the COVID-19 pandemic following a meeting of the Vietnam Banks Association (VNBA) with its members. They met on July 12 to discuss and reach consensus on the implementation method and the period for cutting rates on current loans in the final five months of 2021. According to VNBA General Secretary Nguyen Quoc Hung, it is now very difficult to reduce interest rates, but banks need to share the difficulty with enterprises. Techcombank Deputy General Director Pham Quang Thang said his bank has been active in debt restructuring and relief to ensure its customers have adequate cash flow during the difficult times. Techcombank has been constantly reducing its lending rates since the pandemic began in 2020, to under 4.5% for priority areas and 6-7% for essential economic sectors. He added that the rate cuts should be focused on essential enterprises and with a large labour force, and should not apply to profit-making property enterprises, exporters and car buyers. For its part, Agribank plans to lower its lending rates by 0.5 percentage points on some loans and 2-2.5 percentage points on others. On average the lending rates will be reduced by about 1 percentage point, said Nguyen Viet Manh, a member of Agribank’s board of directors. At the meeting, banks agree that the rate cuts will target those affected by COVID-19 and appropriate reductions will be made depending on the borrowers. Rate cuts will begin as soon as this month and continue until the end of 2021. Pham Thanh Ha, Director of Monetary Policy at the State Bank of Vietnam, spoke highly of banks’ consensus but noted that banks still have to give priority to preventing bad debts due to the delayed impact of the pandemic on the banking system. MPI proposes government to approve $1.75 billion Metro Line 3 The Ministry of Planning and Investment (MPI) has requested the prime minister’s approval to develop the Metro Line 3 project (Hanoi Railway Station-Hoang Mai Station) with the total investment capital of $1.75 billion. The majority of the capital for Metro Line 3 will be mobilised from loans, including $940.8 million from the Asian Development Bank (ADB), $232.8 million from the French Development Agency (AFD), and $305.08 million from Germany's KfW Development Bank. The remaining $274.1 million will come from Hanoi’s budget. Metro Line 3 will be 8.7km long, a little more than 8.13 km of which will run underground, with the rest being an open tunnel section leading to the depot area. According to the project proposal, the metro line will include dual underground tunnels connecting Tran Hung Dao-Tran Thanh Tong-Kim Nguu-Tam Trinh, and a 10-hectare depot area located near Yen So pumping station. The MPI requested the government to assign Hanoi People’s Committee to co-operate with the ADB, AFD, and KfW to conduct the pre-feasibility study for the project to serve as the basis for the implementation of the next steps. Hanoi's public transport infrastructure development planning includes a total of eight lines. The first line would be the 13km Cat Linh-Hadong section running from downtown Dong Da district to Yen Nghia in Hadong district in the south-western part of the city. The construction of the section began in October 2011 and was originally scheduled for completion in 2013. However, several hurdles, including loan disbursement issues with China, were only resolved in December 2017, stalling the process for years. The second line running between Nhon and Hanoi Railway Station will have 10 trains imported from France. The entire metro line will 12.5km, 8.5km of which will be elevated and 4km will be underground. It will run through North Tu Liem, South Tu Liem, Cau Giay, Ba Dinh, Dong Da, and Hoan Kiem districts. At present, the construction is being implemented. Quang Ninh discloses criteria for $2 billion LNG power project Along with the criteria on financial potential and experience, investors looking to develop the $2 billion Quang Ninh liquefied natural gas (LNG) power project will have to comply with 10 other criteria. Quang Ninh Department of Planning and Investment issued the selection criteria for the investor of the LNG project. Notably, the investor will need to have a minimum equity of no less than 15 per cent of the project’s total investment value ($300 million at the current valuation of the project). In case the investor is a joint venture, the joint venture’s equity must be equal to the total equity of the investors joining the consortium. If any member of the consortium fails to comply, the joint venture will be assessed as not meeting the equity requirement. The leading investor in the consortium must have a minimum capital ownership ratio of at least 30 per cent and the remaining members must have a minimum equity ratio of 15 per cent each in the consortium. There are several other strict requirements for investors. Notably, the investor must commit to not require guarantees on power purchase agreement (PPA) and to negotiate a PPA with Electricity of Vietnam. Besides, the investors have to commit to putting the project into operation by the third quarter of 2027. In case they miss the deadline, the project will be revoked without compensation, except where the law prescribes it. Quang Ninh asked interested investors to commit to not buy, sell, or transfer the project in any form until the plant is put into operation and receives its commercial operation certificate (COD). In case of violation, the project will be revoked without compensation. Businesses are also required to establish a local business, show proof of fulfilled tax obligations, commit to complying with regulations on security and national defence, among others. The investors are also required to apply advanced and modern technologyand comply with the project's technical requirements set by Vietnamese technical standards and regulations. In case the current Vietnamese standards are not available, they will have to apply the most widely applied international standards. The deadline for investors to submit their project implementation registration document is July 29. Investors proposes $4.59 billion Vung Ang III plant The joint venture of Siemens Energy, KG Electric Power Corporation, and Power Engineering Consulting JSC 2 (PECC2) proposed to develop the $4.59 billion Vung Ang III Thermal Power Plant. The thermal power plant is expected to be located in Vung Ang Economic Zone of the central province of Ha Tinh with a capacity of 3.2GW that will be expanded to 4.8GW. The facility will import 2.2 million tonnes of liquefied natural gas (LNG) per year. The construction is expected to be completed in 2026-2027. According to Ha Tinh People’s Committee, in April, the investor held a working session with the provincial leaders and present the pre-feasibility report of the project. In late June 2021, Ha Tinh People’s Committee submitted a proposal to the Ministry of Industry and Trade to switch the planning of Vung Ang III Power Centre from coal-fielded power to LNG and increase the capacity of the centre from 2.4GW to 4.8GW. Vung Ang Power Centre combines several power plants. While Vung Ang I is already in operation with two turbines and a total capacity of 1.2GW, its neighbour Vung Ang II invested by Kepco will commission its first unit in 2024 and the second one in 2025. The 1.2GW Vung Ang II is expected to emit 6.6 million tonnes of greenhouse gases per year. Throughout its 30 years of operating life, it will produce a total of 200 million tonnes of greenhouse gases. Government asks provinces to ensure sufficient materials for North-South Expressway Amid a shortfall of materials, the government has asked relevant cities and provinces to take urgent action to ensure sufficient materials for the construction of the Eastern Cluster of the North-South Expressway project. In Document No.179/TB-VPCP dated July 8, Deputy Prime Minister Le Van Thanh asked relevant provinces to check local mines and grant licenses for mining certain minerals to produce common building materials so as to provide enough materials for the project. The construction of some sections of the Eastern Cluster of the North-South Expressway (2017-2020) is a key national key project. However, progress remains slower than expected, hampered by COVID-19, the rising price and limited supply of building materials, and the slow granting of mining licenses, among others. Worse still, four sections of the project have not been kicked off yet, including the two public-private partnership sections of Nha Trang-Cam Lam and Cam Lan-Vinh Hao. To ensure project progress as requested by the National Assembly and the government and thus enable the target of developing about 5,000km of expressways by 2030, including the completion of the Eastern Cluster of the North-South Expressway project by 2025, Thanh also asked cities and provinces to fast-track site clearance, build resettlement areas, and hand over cleared land to contractors by July 30. as committed earlier. The Ministry of Transport has been asked to work with other ministries and relevant agencies to deal with problems facing localities, businesses, and contractors while studying alternative sources of materials and working with relevant units to ensure project progress. The ministry will also need to submit monthly reports to the deputy prime minister. In addition, he asked the Ministry of Natural Resources and Environment to soon deal with problems related to mines and make an environmental impact assessment report while establishing inspection groups to strictly fine any violations and then report to the prime minister before August 15. Meanwhile, the Ministry of Construction is asked to soon check and deal with proposals related to prices of building materials and steel prices, and issue timely guidance. Billionaire Tran Ba Duong withdraws from Hung Vuong Tran Ba Duong, chairman of THACO, sold his entire 11.26 million shares in Hung Vuong JSC (UPCoM: HVG), equalling 4.96 per cent of the group’s charter capital, after it proved unable to rescue the company. Along with Tran Ba Duong, Tran Oanh Manufacturing and Trading Co., Ltd. also sold 8.6 million shares or 3.79 per cent in this group. At the time of the deal, Hung Vuong's shares were traded at VND2,300 (10 US cents). In January 2020, Thadi Agriculture Farming Processing & Distribution JSC (Thadi) – a subsidiary of THACO – and other shareholders of THACO bought a 35 per cent stake of Hung Vuong with the intention of supporting Hung Vuont overcome its difficulties. To this effect, the two parties established a joint venture that is 65 per cent owned by Thadi. The latter also assigned senior personnel to hold important positions at Hung Vuong, including vice chairman of the board of directors, financial director, and technical experts. The joint venture invested VND2 trillion ($86.96 million) in breeding mother pigs in An Giang and Binh Dinh provinces while Thadi will invest in developing a pig farm (1.2 million pigs per year) meeting Development Food Security Activities (DFSA) standards. Despite high ambitions at the beginning, Thadi's support had little effect. By Agugust 2020, Hung Vuong was forced to move from the Ho Chi Minh City Stock Exchange to the Unlisted Public Company Market. Since then, HVG shares dropped from VND5,400 to VND2,600 (23.47-11.30 US cents). In the last two months of 2020, Thadi divested its entire holdings in Hung Vuong, leaving only THACO shareholders at the company. In 2019, the corporation reported a loss of VND1.12 trillion ($48.7 million) and accumulated losses of VND1.74 trillion ($75.65 million). Its equity capital was about VND660 billion ($28.7 million) with total debts reaching VND7.1 trillion ($308.7 million). The corporation has delayed publishing audited financial statements for 2020. Hung Vuong was established under the name of Hung Vuong Co., Ltd. in September 2003 as a processing plant of pangasius for exports. After 15 years in the industry, Hung Vuong JSC currently runs a production system from breeding, aquaculture, and processing to cold storage and exporting. MARD proposes price stabilisation measures for animal feed to protect small farmers Increasing animal feed prices and declining livestock and poultry selling prices will shut down small household farmers, leaving their market share to giants, unless regulatory intervention is made in time. While animal feed is becoming more expensive, the price of live hogs has been decreasing sharply in recent months, pushing household farmers into deeper losses and narrowing their market share. Last week, the price of live hogs was around VND60-65,000($2.60-2.82) per kilogramme in the north and VND54-62,000 ($2.35-2.70) in the south, decreasing by 40 per cent against the peak in May 2020 (VND105,000~$4.57 per kg), and by 20 per cent over April 2021 (VND77,000 - $3.35 per kg). In a talk with media, Nguyen Van Thanh, director of livestock company Thanh Do Nghe An Co., Ltd. said that breeding costs are VND50,000 ($2.17) per kg at large-scale farms and is VND65,000 in small-scale farms that have to buy seeds. “This means household farmers made no profit in the past few months and are starting to suffer losses on live hogs and chicken in recent weeks,” said Thanh. A representative of Anova Feed said the lower the price of live hogs go, the heavier the losses of household farmers will be. “The smaller household farms are, the more losses they are suffering,” he said, explaining that all husbandry costs are rising, including labour costs, services, seeds, and animal feed. According to the General Department of Vietnam Customs, in the first half of the year, a total of 10.8 million tonnes of animal feed materials were imported into Vietnam valued at $3.84 billion, a rise of 32.7 per cent in volume and 50.3 per cent in value against the previous year. In addition to increased imports, the local selling price of animal feed has also been soaring since the end of 2020. In fact, the price of animal feed, a market which is dominated by foreign-invested firms like C.P. Vietnam, Cargill, Japfa, CJ, and De Heus, has been raised eight consecutive times since last November by VND300-500 (1.3-2.17 US cents) per kg each time. Nguyen Kim Doan, vice chairman of the Dong Nai Animal Husbandry Association said that this is the first time ever that the price of animal feed rose each month for almost three quarters. “There is no signal that the increase would stop, which is making farmers worried enough to begin thinking about quitting the industry,” he said. “In the future, there will be fewer small-scale farms, while husbandry companies that can manage the whole supply chain will expand their market share. This is also the general trend over the world,” he added. Amid the sharp increase in animal feed prices, Duong Manh Hung, director of the General Statistics Office’s Agriculture, Forestry, and Fishery Statistics Department said that they are planning to propose price stabilisation measures for animal feed. Specifically, relevant authorities may review and adjust import taxes and value-added tax for animal feed and materials. “Besides that, we should encourage local businesses to participate in animal feed production to reduce the domination and price control of foreign-invested firms,” emphasised Hung. Nguyen Van Trong, deputy director general of the Ministry of Agriculture and Rural Development’s Department of Livestock Production said that the ministry had already proposed price stabilisation measures for animal feed in 2018. He added that materials make up 80-85 per cent of total costs in animal feed production and animal feed accounts for 65-70 per cent of total breeding costs. The COVID-19 pandemic has interrupted the global supply chains and revealed weaknesses in material management in the husbandry. “The Department of Livestock Production often encourages supply chains to manage and save costs. Additionally, the market needs some control and support from the state to stabilise prices,” said Trong. “We have not paid enough attention to developing domestic materials for animal feed production, which should be changed soon to avoid dependency on imported materials and foreign animal feed producers." European firms remain confident in Việt Nam’s long-term prospects Despite short-term challenges, European business leaders remain confident in Việt Nam’s long-term prospects. The fourth wave of COVID-19 in Việt Nam has knocked the confidence of European business leaders, according to new data from the EuroCham Chamber of Commerce (EuroCham) Business Climate Index (BCI). Before the fourth wave struck, the BCI had almost climbed back to pre-pandemic levels, reaching 73.9 in quarter one. However, this latest outbreak and the spread of new variants have seen the Index fall almost 30 points in quarter two to 45.8. This is a significant drop, though not as steep as during the first outbreak of the pandemic in 2020. The fourth wave has also led to increased pessimism about the short-term outlook of Việt Nam’s business environment. Just one-fifth of EuroCham members (19 per cent) believe that the economy will stabilise and improve in the next quarter. That’s down from almost two-thirds (61 per cent) in quarter one. However, business leaders remain confident about the future prospects of their own companies. More than half (56 per cent) anticipate an improved or neutral performance in quarter three. And eight-in-ten (80 per cent) plan to maintain or increase their headcount and investment. The BCI also shows the urgent need for Việt Nam to roll out a mass vaccination programme. More than half of business leaders (58 per cent) predict that their companies would see a significant, negative impact if their staff could not be vaccinated in 2021. Meanwhile, almost half (44 per cent) have not been approached to prepare for vaccination. EuroCham and its nine business associations asked their members if they would be willing to cover the cost of vaccinating their own staff. Of the 430 who responded – representing around one-third of the chamber’s total membership and around 95,000 staff – 399 said they would be prepared to do so. With full vaccination requiring two shots, this suggests that at least 190,000 doses will be needed just to vaccinate the direct staff of these companies alone. However, the true number of doses required could reach over half a million if all European enterprises and their staff were taken into account. Meanwhile, 259 of those who responded are also willing to cover the cost of vaccinating the families of their staff members. When these dependents are taken into account, the true number of doses required will be much higher. EuroCham Chairman Alain Cany said: “The EuroCham BCI reaffirms the urgent need for Việt Nam to accelerate vaccinations. Local lockdowns, social distancing, and travel restrictions are not permanent solutions and will cause significant economic harm over the long-term, as our data shows.” “There is no route out of this fourth wave without an ambitious and accelerated mass vaccination programme which will enable normal life to resume. European companies are prepared to cover the cost of protecting their own staff – this will help to speed up vaccination while also reducing the financial and administrative burden on the state. But we need access to sufficient supplies. EuroCham is using all the tools at our disposal to support Việt Nam in procuring enough doses, and we are confident that business confidence will rebound as soon as we can achieve mass vaccination.” The BCI is a regular barometer of European business leaders and their views of the trade and investment environment. Each quarter, it tracks the performance of EuroCham’s member companies and their perceptions of the economic outlook in Việt Nam. The fieldwork and data collection for the BCI is conducted by YouGov Vietnam. Thue Quist Thomasen, CEO of YouGov Vietnam, added: “Despite the short-term shock of this fourth wave, the data shows that Việt Nam’s long-term prospects remain positive. European business leaders are predicting maintaining or increasing their staff and investment plans – even in the midst of this current outbreak – which demonstrates a continued confidence in Việt Nam’s trade and investment environment.” Businesses urged to devise strategy to cope with EU imposition of VAT Local firms have been advised to develop a long-term strategy when exporting to the EU market due to value added tax (VAT) being officially applied for online B2C transactions of suppliers from third countries to its customers, according to the Vietnam Trade Office in Belgium and the EU. The move will see goods originating from a third country subject to VAT, whilst they must also conduct customs declarations when being imported to the EU market as of July 1. At present, EU members have established the Import One Stop Shop (IOSS) System aimed at conducting customs clearance for online transactions valued at EUR150 or less. Nguyen Thi Minh Huyen, deputy director of the Department of E-commerce and Digital Economy, said the latest regulations will contribute to the development of e-commerce transactions and serve to create an equal competitive environment among various businesses both inside and outside of the EU. However, amid growing e-commerce transactions, the new EU rule will affect both EU consumers and businesses who process B2C transactions via online platforms or from a third country outside of the EU. Furthermore, with the EU's VAT calculation method, local firms are anticipated to face a number of hurdles when exporting their agricultural products or goods to the EU market moving forward. Huyen noted that the new regulation is expected to lead to higher costs for e-commerce transactions, thereby leading to numerous difficulties for businesses. The European-American Market Department has therefore advised local online sellers to apply for business registration in an EU member state in the event they wish to sell products to the EU, while simultaneously declaring transactions according to the IOSS website of each member state. EU increases imports of wooden products from Vietnamese market Vietnam's timber and wooden products to the EU market during the first half of the year surged by 36.4% to US$314 million compared to the same period last year and is projected to experience an upward trajectory ahead in the second half of the year, according to industry insiders. Economists note that the economic rebound occurring in EU countries moving into the post-COVID-19 period will be one of the main factors that will serve to bolster the export of timber products moving forward. Furthermore, the comprehensive and effective enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) has helped local firms to receive a greater number of orders from foreign partners, especially from the US and the EU, said Bui Chinh Nghia, deputy general director of the Vietnam Administration of Forestry (VNFOREST). The demand for repair and the completion of new houses typically increases sharply at the end of the year, thereby providing greater opportunities for wood exports to the EU market in order to meet growing demand. Moreover, the EU’s import demand for wooden furniture featuring attractive designs at competitive prices is projected to enjoy vigorous growth in the future due to the demand for housing repairs increasing over the remaining months of the year. Economists therefore project that there remains plenty of room for Vietnamese wood exports in the near future as the market share of Vietnamese wooden furniture in the demanding market still accounts for a low proportion. Many experts believe that the local wood industry will be able to greatly benefit from the enforcement of the EVFTA due to substantial reduction in non-tariff barriers, origin traceability and reputation for Vietnamese wood brands. The import of cutting-edge machinery and equipment through the EVFTA will also help to increase the productivity and competitiveness of the Vietnamese wood industry in the EU market. Insiders anticipate that the export of timber and wood products will face numerous challenges amid ongoing complicated developments relating to the COVID-19 pandemic in the EU market, leading to high costs in terms of logistical services and imported raw materials, as well as a shortage of empty containers. 25 export commodities earning above US$1 billion each in first half The first half of the year saw Vietnam record 25 commodities with export turnover of over US$1 billion each, making up 88.9% of the total, according to the Ministry of Industry and Trade. Mobile phones and spare parts topped the list with US$25.1 billion, an annual rise of 14.2%, followed by electronic products, computers and components with US$23.7 billion, marking an increase of 22.1%. Machinery, equipment and spare parts, along with garment-textile groups, stood at US$17 billion and US$15.2 billion in export revenue, respectively. Furthermore, the export revenue of footwear hit US$10.4 billion, up 27.8%, while wood and wooden products reached US$8.1 billion, representing a rise of 61.1%. Elsewhere, transport vehicles and spare parts were at US$5.4 billion in export revenue, a boost of 42.8% year on year. Data from the Minitry of Industry and Trade show Vietnam’s total export value between January and June was estimated at US$157.63 billion, an increase of 28.4% from last year’s corresponding period. The United States emerged as Vietnam’s biggest export market in the period with US$45.1 billion, marking an annual climb of 43.3%. China came second with US$24.6 billion, up 25.1%, followed by the EU with US$19.3 billion, a rise of 17.4%. Meanwhile, ASEAN posted an export turnover of US$13.8 billion, up 26.3%, the Republic of Korea with US$10.5 billion, up 15.2%, and Japan with US$9.9 billion, an increase of 6.9%. Vietnam, Venezuela to step up economic and trade ties Venezuela aspires to strengthen connectivity with Vietnamese businesses, especially in the fields of large-scale cow husbandry and farming, wood processing, and glass manufacturing for household utensils, according to Venezuelan business representatives. The business representatives made the statement during a recent meeting with a Vietnamese delegation during their visit to Monagas state aimed at ramping up economic and trade ties between the two countries. Monagas Governor Yelitza Santaella affirmed that both sides have developed a close friendship and ties across multiple aspects, such as politics, economy, culture, and social affairs, adding his hopes that Vietnam will implement strategic investment projects to fully tap into each other’s potential, especially in Monagas’s strong fields. In response, Vietnamese Ambassador to Venezuela Le Viet Duyen pledged to strive to enhance cooperation in politics, diplomacy, culture, and trade between the two countries, He revealed that Vietnam’s GDP has reached US$343 billion after 35 years of implementing the Doi Moi (Renewal) process, meaning the country is ranked among the world’s 40 largest economies and puts it fourth in Southeast Asia. The Vietnamese diplomat went on to emphasise that as one of the major production hubs in both the Asia-Pacific region and the world, Vietnam is currently the second largest exporter of rice and coffee globally, and the world’s largest exporter of cashew nuts, peppers, and a range of other agricultural products. According to the Ambassador, there remains plenty of room for greater cooperation between the two countries, as Vietnam is one of the world's leading manufacturing and exporting centres of high-tech products, smartphones, and electronic goods. In addition, it is also one of the major furniture manufacturing centres in the world, a factor which is expected to create greater opportunities to promote the export of wooden products moving forward. At the seminar, Ambassador Duyen and Governor Santaella voiced their support for the establishment of branches of the Venezuela-Vietnam Chamber of Commerce (CAVENVIET) and the Venezuela-Vietnam Friendship Association in Monagas state, in order to further enhance connectivity between people and businesses of the two countries. For his part, Governor Santaella pledged to do his best to create favourable conditions for Vietnamese businesses to operate and invest in several potential fields in Monagas state. It is anticipated that there will be a specific focus on large-scale agricultural production such as dairy cows, beef cattle, and industrial crops, he said. HCM City strives to increase vegetable, fruit supply Businesses and authorities in HCM City are working to ensure supply and prices of vegetables and fruits remain steady despite a panicked populace buying them in bulk to stockpile following the closure of the city’s three wholesale markets and nearly two-thirds of traditional markets. Supply of vegetables and fruits are now being affected by the closing of the city's wholesale markets and many traditional markets, where most of such products are sold and bought. Demand began spiking before July 9 amid fears of the more intense lockdown under Directive 16 and people were rushing to stock up. Some market traders began to jack up prices amidst the falling supply initially when the wholesale markets closed, but prices and supply began to stabilise after July 9. Demand at supermarkets and food stores jumped again on Sunday, July 11, as people who had been unable to shop earlier made use of the weekend to buy in bulk and many other markets were closed, leading to some stores running out of stocks. Đào Văn Đức, deputy director of the Phước An Co-operative group in HCM City’s Bình Chánh District, said his group was making an effort to keep supplying vegetables and fruits to the market through Co.opMart and Big C retail chains and at quarantine zones. It also had to pay for COVID-19 testing fees for delivery staff, which were expensive, but it tried to keep vegetable prices steady, he said. Bùi Tá Hoàng Vũ, director of the city Department of Industry and Trade, said vegetable prices at supermarkets were steady but there was a shortage. Many large retailers had been increasing supply by up to five times to make up for the closure of many traditional markets, but they were still not enough, he said. Noticing prices and demand for vegetables are rising, individuals and businesses are trying to help by buying vegetables from other provinces and selling them at below market prices. Trịnh Thị Ngọc Hiện, head of Anfoods Joint Stock Company in Bến Tre Province, said her company was offering to supply non-leafy vegetables and fruits to seafood buyers at cost prices. The city Department of Industry and Trade is seeking ways to increase the supply of vegetables and fruits. Nguyễn Nguyên Phương, its deputy director, said districts were expected to work with closed markets on COVID-19 regulations so that they could reopen. Many traders at the three wholesale markets are also selling their goods online. Thủ Đức City has set up a transhipment station at the Thủ Đức Wholesale Market container parking lot yesterday (July 12) in an effort to increase supply of vegetables and fruits to the city. A trial run was carried out on July 11, with six businesses receiving goods. Shipments of produce from other provinces are transferred to smaller trucks to be transported to supermarkets and businesses’ staff kitchens around HCM City. Up to 2,000 tonnes of vegetables and fruits will be distributed in this manner every night. Strict measures are in place in the area, with only registered vehicles being allowed to enter and all personnel required to furnish negative COVID test results from within the last 72 hours. Goods are to be unloaded and loaded quickly so that the container trucks from outside can leave at the earliest. The Hóc Môn Wholesale Market is planning to set up a similar transhipment station soon. HCM City has become the COVID epicentre of the country with more than 15,000 cases since the start of the fourth wave on April 27. It has been under partial or total social distancing since May 31. Phuc Long to open first-ever store in US this month Phuc Long Coffee & Tea has announced it will launch its first store in the US this month, two months after its Vietnamese peer, TNI King Coffee opened its first coffee store in the American country. Phuc Long is renowned for its signature coffee and tea drinks with bold flavor. Its US store will be located in Garden Grove, California, the brand said on its Facebook page. Set up in the Central Highlands province of Lam Dong in 1968, Phuc Long expanded into the retail beverage business in 2012 from its three traditional stores in Ho Chi Minh City in the 1980s. Currently, the firm has 60 stores in HCM City and seven in other localities. TNI King Coffee’s California store, meanwhile, is the second overseas store of the café chain which operates more than 50 outlets in Vietnam. It serves a full range of traditional Vietnamese coffee, such as filter coffee, iced coffee and iced milk coffee, with beans imported from Vietnam and around the world with the ingredients of TNI King Coffee's specialty roasted and ground products Vietnamese beverage chains have been strategically seeking opportunities and preparing themselves to branch out overseas over the last decade in the face of increasingly stiff competition in the domestic market. The US is deemed a promising market for the Vietnamese companies as it is home to more than 2.2 million Vietnamese-Americans./. Australia helps Vietnam develop hi-tech agriculture A project to improve the knowledge and capacity of Vietnamese businesses in hi-tech agriculture will be soon carried out by Asialink Business of Melbourne University and Beanstalk AgTech of Australia. The project is part of the Australia-Vietnam Enhanced Economic Engagement Grant Pilot Programme (AVEG) of the Australian Department of Foreign Affairs and Trade. It is expected to equip Vietnamese agricultural producers with practical information and understanding of newly-emerging consumer trends over the globe. Asialink Business Manager Rob Law, who directly manages the project, emphasised that Australia’s agro-tech ecosystem has a long history and is in a good position to help Vietnamese businesses solve challenges, and support the implementation of the rapidly growing technological revolution in Vietnam. He also said that through the project, Asialink will cooperate with Beanstalk to promote and realise the GRAFT Vietnam Challenge 2021, a first-of-its-kind landing pad programme for leading AgriTech entrepreneurs to scale up in Vietnam. On July 1, Australia’s Minister for Trade, Tourism and Investment Dan Tehan announced the launch of the AVEG. Under this programme, the Australian Government is providing 2.5 million AUD (nearly 2 million USD) to 28 small-scale projects to create economic opportunities and deepen business cooperation. The minister is expected to visit Vietnam in a next couple of days, as part of his two-week tour of Singapore, Vietnam, Japan, the Republic of Korea and the US to boost trade and investment with the five partners./. Summer-autumn rice production estimated at 8.5 million tons in Mekong Delta Currently, farmers in the Mekong Delta provinces have entered the peak harvest season of the summer-autumn rice crop. Statistics show that the whole region sowed more than 1.5 million hectares, down 9,000 hectares. Rice yield is estimated at 56.66 quintals per ha, an increase of 1.15 quintals per ha compared to the previous summer-autumn rice crop; total summer-autumn rice production in the Mekong Delta this year is estimated at more than 8.5 million tons, up 124,000 tons. Many farmers reduced the rice-growing area in this summer-autumn rice crop to switch to vegetables, fruit trees, and aquaculture with higher economic efficiency. However, as the average rice yield increased by 1.14 quintals per ha, it still compensates for the deficiency of rice output due to the reduction in the growing area. According to calculations by the Departments of Agriculture and Rural Development of Mekong Delta provinces, the production cost of the summer-autumn rice crop this year is about VND3,728 per kilogram, an increase of VND143 per kg compared to the last summer-autumn rice crop. The reason is that fertilizer prices increase by about 40-60 percent over the same period, and other input materials also climbed. However, by reducing the cost of seeds and the amount of fertilizers and pesticides used, profits are still ensured for farmers. For instance, Tien Giang Province implemented well technical solutions that brought high economic efficiency, when the income reached VND42 million per ha, the production cost was about VND20 million per ha, and the profit reached VND22 million per ha, an increase of about VND5 million per ha compared to last summer-autumn rice crop. Twenty-five exports listed in “one-billion-USD” club Vietnam’s “one-billion USD” club, which comprises exports with turnover of more than 1 billion USD, saw the presence of 25 commodities in the first half of 2021, with their combined export earnings accounting for 88.9 percent of the country’s total. According to the Ministry of Industry and Trade, Vietnam raked in 157.63 billion USD from exports in the reviewed period, a year-on-year surge of 28.4 percent. Mobile phones and spare parts registered the biggest value of 25.1 billion USD, accounting for 15.9 percent of the total, and up 14.2 percent year-on-year. They were followed by electronic products, computers and components with 23.7 billion USD; machinery, equipment and tools (17 billion USD); garment and textiles (15.2 billion USD); footwear (10.4 billion USD); and wood and wooden products (8.1 billion USD). In the January-June period, the US was Vietnam’s biggest importer with 45.1 billion USD, up 43.3 percent from the same period last year. It was followed by China (24.6 billion USD), the EU (19.3 billion USD), ASEAN (13.8 billion USD), the Republic of Korea (10.5 billion USD) and Japan (9.9 billion USD)./. Reference exchange rate up 3 VND The State Bank of Vietnam set the daily reference exchange rate at 23,204 VND per USD on July 14, up 3 VND from the previous day. With the current trading band of +/- 3 percent, the ceiling rate applied to commercial bank during the day is 23,900 VND/USD and the floor rate 22,507 VND/USD. The rates listed at major commercial banks saw decreases. At 8:20 am, Vietcombank listed the buying rate at 22,880 VND/USD and the selling rate at 23,110 VND/USD, down 10 VND from July 13. Vietinbank also cut both rates by 10 VND, listing the buying rate at 22,890 VND/USD and the selling rate at 23,110 VND/USD. Meanwhile, BIDV kept both rates unchanged, listing the buying rate at 22,925 VND/USD and the selling rate at 23,125 VND/USD./. Banks agree to cut lending rates to support hard-hit businesses Most banks have agreed to cut the lending rate for enterprises hard hit by the COVID-19 pandemic from this month until the end of this year. This consensus was reached during a meeting of 16 banks with the State Bank of Vietnam on July 12. The COVID-19 pandemic is having a negative impact on Vietnam’s economy and has forced many enterprises to suspend production or close entirely. “Techcombank agrees to reduce interest rates to support customers,” said Pham Quang Thang, deputy CEO of Techcombank. Thang said, to date, the bank had spent more than 100 billion VND (4.3 million USD) on activities to support the community amid the pandemic under the direction of the Government and the banking industry. Since last year, Techcombank had continuously cut lending rates for priority sectors to below 4.5 percent per annum, for essential economic sectors to about 6-7 percent per year. The bank would focus on supporting labour-intensive enterprises and those essential for the economy. “As for real estate businesses and exporting businesses which earned big profits or individuals who borrow money to buy cars, they should not be the subject of interest rate support,” Thang said. Nguyen Viet Manh, a member of Agribank’s board of members, said Agribank also agreed to cut interest rates to support businesses. The bank’s leaders would meet to discuss the reduction rate but the average lending rates would decrease by about 1 percent, some loans could enjoy a drop of 2-2.5 percent. Meanwhile, deputy general director of Military Bank Pham Thi Trung Ha said the bank would support businesses directly affected by the pandemic, whose revenues declined steeply, such as companies in the fields of tourism, accommodation and services with an interest rate cut of 1 percent or higher. "However, MB will base on its customer database to select businesses in more difficulty, thereby having an appropriate interest rate support policy," Ha said. Some banks said they would consult shareholders as cutting interest rates would affect their profit plans this year. A representative of BIDV said a cut of 1 percent in lending rates would decrease its profit by trillions of dong this year. Meanwhile, LienVietPostBank’s representative said with the bank’s total outstanding loans of about 191 trillion VND (8.23 billion USD), if it reduced lending rates by 1 percent, its yearly profit would decrease by about 600 billion VND. Nguyen Hong Quna, deputy general director of TPBank, said banks were ready to share difficulties with enterprises and accept lower profits. At the meeting, banks also asked the central bank to lift the credit limit in the last months of this year so that they would have more room to support customers. Nguyen Thanh Tung, deputy CEO of Vietcombank, said the bank had maintained low interest rates since the beginning of the year with the average short-term lending rate at around 6 percent per year and long-term rate 8 percent per year. “At the beginning of the year, Vietcombank was assigned a credit target of 10 percent, but so far, credit has grown by 9 percent. Therefore, to continue to support customers, Vietcombank urgently needs to have higher credit 'room' in the last months of the year,” Tung said. Loosening credit limits was also recommended by commercial banks such as SHB, TPBank and LienVietPostbank. Pham Thanh Ha, director of the central bank’s Monetary Policy Department, highly appreciated the consensus of banks in reducing interest rates to support enterprises. However, he noted that banks should be flexible in reducing interest rates, depending on their health to have an appropriate reduction. General Secretary of Vietnam Bankers Association Nguyen Quoc Hung also said banks still had to ensure the highest level of system safety due to the negative impacts of the global financial crisis. The pandemic's impact on the banking industry would have a time lag, so they needed to prepare solutions for themselves. “Currently, the banking industry shares difficulties with businesses, but in the future, when bad debts increase due to the pandemic, who will share with the banking industry? Therefore, support must be in the spirit of ensuring system safety," Hung said. He also proposed the State Bank consider assigning annual credit quotas, especially for the banks that have applied Basel II and Basel III which should be given priority in setting credit limits./. Over 20 countries, territories to join conference promoting Hung Yen’s longan The Ministry of Industry and Trade and the northern province of Hung Yen will organise a largest-ever international conference to promote longan and other local agricultural products on July 15. The conference, to be held both online and in-person, will be connected with 15 sites at home and nearly 60 others in 21 countries and territories, according to the ministry’s Vietnam Trade Promotion Agency. Director of the provincial Department of Industry and Trade Nguyen Van Tho said the event is expected to bring together nearly 1,000 delegates. Within the framework of the conference, there will be a programme to put the products on sale on e-commerce platforms and a signing ceremony of cooperation documents, aiming to boost the consumption of the local products. Longan, a local specialty, and other agricultural products will also be showcased on the sidelines of the conference. Hung Yen is home to about 4,800 ha of longan, of which more than 1,300 ha have met VietGAP standards. The province expects to harvest around 50,000-55,000 tonnes of the fruit this year, 15-20 percent higher than last year’s output. Besides, it has some 3,800 ha of citrus fruits, which yield about 40,000-45,000 tonnes./. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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Covid-19 fatality rate in Vietnam lower than rest of world10:05 Vietnam as of July 10 had reported 26,608 Covid-19 infection cases and 110 deaths.  Nguyen Trung Cap, Deputy Director of the Central Hospital for Tropical Diseases According to Worldometers, more than 4 million deaths have been reported so far out of 186 million infection cases globally, with deaths accounting for 2.16 percent. In the US, the fatality rate is 620,000 out of 34 million, or 1.79 percent. The fatality rates are 2.55 percent in the UK, 2.47 percent in Russia, 2.45 percent in Germany, 5.04 percent in China, 1.84 percent and 1.23 percent in South Korea. The rates in Southeast Asia are 2.64 percent in Indonesia, 1.76 percent in the Philippines and 1.45 percent in Cambodia. Meanwhile, the rate in Vietnam is 0.41 percent as of July 10 morning, which is lower than that in many other countries. Nguyen Trung Cap, Deputy Director of the Central Hospital for Tropical Diseases, who has been taking part in treating severely ill patients since the day Covid-19 broke out in Vietnam, explains the varying rates. Why is the death rate of Covid-19 patients in Vietnam lower than in other countries in the world? The pandemic waves in Vietnam so far mostly occurred in industrial zones, and the infections are mostly young workers, with few underlying health conditions, so the death rate has been low. However, we also saw some relatively high death rates in some outbreaks which occurred in hospitals with seriously ill patients. In all outbreaks, we strictly control F0 cases when they are found and try to curb the number of severely ill patients, not letting the figure go beyond the capacity of the intensive care medical system. The shortage of ventilators, the lack of oxygen, and exhausted medical workers have never happened in Vietnam. We have succeeded in curbing the Covid-19 death rate at a low level compared with many countries in the world. The fourth outbreak occurred on a large scale with a high number of infections, which requires the treatment system to make greater efforts to preserve this achievement. As you have said, the intensive care system plays an extremely important role in helping reduce the Covid-19 death rate. What do you think about the capability of the system in Vietnam? Resuscitation and Emergency is a difficult speciality which requires thorough training. They work hard and the income is modest. It is difficult to attract doctors to the speciality. Emergency and resuscitation equipment such as ventilators, dialysis machines and ECMO are very expensive, and they are not as profitable as other machines (ultrasound machines, vascular interventions, etc.). So they are not among priority investment items for many hospitals. This is true except for the three big healthcare centers Hanoi, HCMC, and Hue-Da Nang, and some large provinces which have good resuscitation and emergency equipment, and good staff. Meanwhile, the capability in other localities remains modest. In the outbreaks so far, Hanoi, HCMC and Hue-Da Nang have been giving support to other cities and provinces. However, if the outbreak is a large scale and if they cannot get strong support anymore, some localities will face difficulties in treating severely ill patients.
Many asymptomatic Covid-19 patients or patients with mild symptoms may recover on their own, so some experts believe that it would be better to isolate them and watch their health conditions at home, so as to ease pressure on treatment facilities. What is your opinion? Newly infected patients may or may not have symptoms. Most of them will enter the recovery period after seven days. But in many cases, patients don’t have considerable initial symptoms, but turn critically ill, or even die after 7-8 days. It is impossible to know in advance which cases will be mild or severe. Covid-19 patients are considered asymptomatic or having mild symptoms if they don't have any symptoms or only have mild symptoms from the day of infection to the day of full recovery. Do you think we need some solutions to classify severely ill and mildly ill patients? The key time to classify patients is the 7th-8th day from the time of infection. However, the difficulty is that many cases have no symptoms, so it is difficult to define which day is the 7th or 8th day of the disease. So, we consider the cases tested positive for nCoV in the first week as the ones at risk of turning severe which need to be closely watched, especially on the 7th-8th day. Meanwhile, those, who don’t turn worse after the 8th day will be considered as mild cases. They don’t need further treatment and need to be put under quarantine and wait for recovery. The biggest problem now is that some physicians still make mistakes, considering patients with no symptoms or mild symptoms as mildly ill patients who don’t need close care. As a result, severe symptoms were not discovered in a timely way. The second difficulty is that in order to recognize early the risks of the disease turning more severe, it is necessary to have blood coagulation and immunology tests and proper interpretation. Since Covid-19 is a new disease, these kinds of tests still cannot be carried out in many places. As a result, doctors only discover problems when they see severe clinical manifestations, such as dyspnea or shock, and the treatment, therefore, is less effective. The third difficulty is that even the patients with severe lung damage and respiratory failure may not have signs of dyspnea. This condition is called “silent hypoxia”. If physicians are inexperienced or lack the equipment to measure blood oxygen saturation, it could lead to a critical situation. What does the healthcare sector need to do to minimize the number of asymptomatic patients who may become critically ill? It’s necessary to consider newly discovered Covid-19 patients as a high-risk group that needs to be closely watched for one week. If any signs of patients getting worse are discovered during that time, patients need to be transferred to the treatment area in accordance with the pathogenesis regimen. Only the patients who don’t have signs of getting worse after one week will be considered as mildly ill patients and transferred to a quarantine area where they will wait for recovery. In Hai Duong and Bac Ninh, where Covid-19 outbreaks occurred, we applied a treatment model called ‘3-floor tower’. The treatment system can be imagined as a tower. There are more patients on lower floors with fewer medical workers, while there are fewer patients on higher floors but more medical workers and more technical equipment. Newly discovered patients need to be placed on the second floor of the tower. If they don’t have signs of getting worse after 7-8 days, they will be transferred to the first floor. If they get worse, they will be transferred to the highest floor of the tower to receive intensive treatment. VNN |
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Businesses ask banks to ease interest rates as promised10:15 Bank loan interest rates are becoming a heavy burden on businesses, which have been hit hard by Covid-19 for more than a year.
 State Bank of Vietnam Deputy Governor Dao Minh Tu at a recent conference asked four state-owned banks and 12 joint stock banks to continue easing lending interest rates for existing loans in July. The Vietnam Young Entrepreneurs’ Association has asked the Prime Minister for help, saying that the pandemic has seriously affected their production and business activities. It said that enterprises had to scale down production in the last year, or suspend operation. The current situation is even worse because of the fourth wave which has larger scale and bigger impact than the previous three waves. Its member enterprises have reached the limits of their tolerance and many enterprises cannot pay bank debts on schedule. The association has proposed a series of solutions to support enterprises hit by Covid-19. It wants a 2 percent interest rate cut on all outstanding loans of enterprises for at least one year, and an additional 1.5-2 percent interest rate cut on new loans. Hoang Van Vinh, Chair of the Nha Trang Tourism Association, said local tourism firms have become ‘paralyzed’. However, enterprises still have pay a high interest rate of 10.5 percent and banks refuse to ease the interest rates of existing loans. Vinh said bank loan interest rates have become a dangerous burden on businesses. They want banks to ease the interest rates for outstanding loans to help them overcome current difficulties. Some businesses confirmed that banks have reduced interest rates for some loans. The interest rates of long-term loans have been eased by 1-1.5 percent from 11-13 percent per annum. However, the current interest rates are still high, over 10 percent per annum, which is unbearable to businesses amid the pandemic. A transport firm in Hanoi got a 4-year loan from a joint stock bank to buy cars in mid-2019. The interest rate for the first year was 8.7 percent. However, the interest rates for the following years are higher. When the Covid-19 pandemic broke out, the bank agreed to cut the interest rates by 1.5 percent per annum. However, the current interest rate of 10.5 percent is still too high for a business which has been seriously affected. Interest rate still high
At present, businesses in non-priority fields have to pay 7.5 percent for 6-month loans. However, the interest rate will be raised after three months to 8.5-9 percent. For long-term loans, the interest rates are 8-8.5 percent for the first year. After that, 4-4.3 percent will be added in the following years. A representative of a packaging manufacturing enterprise in Long Bien district in Hanoi said the company has a 9-month loan worth VND2 billion. The interest rate is adjusted once every three months. The initial interest rate was 7.5 percent, but it has increased to 8.5 percent. Meanwhile, an enterprise developing a solar power project in Gia Lai said it got a VND20 billion loan last March from a state-owned bank for eight years. The initial preferential interest rate was 8 percent, but 4 percent will be added in the following years. Meanwhile, the deposit interest rates of the bank have decreased to 5.3 percent per annum since early 2021 for 24-60 month deposits. With such low deposit interest rates, banks should have eased lending interest rates to support businesses. However, they raised the interest rates again once the preferential period ended. When production and business are seriously affected by Covid-19 waves and workers take leave, the increased interest rates deal a strong blow to businesses. Banking experts said that while the deposit interest rates are the lowest in history, the lending interest rates have not been cut proportionally. Some banks have launched preferential credit packages, but it is not easy to access them. Meanwhile, other banks have kept the lending interest rates unchanged for medium and long-term loans. The difference between deposit and lending interest rates is high. While banks only have to pay 3-5 percent per annum for deposits, they lend at 9-10 percent per annum. The central bank has slashed some key interest rates to pave the way for commercial banks to ease their lending interest rates. However, the interest rates are still high. In the latest news, the Vietnam Banks Association (VNBA) on July reached a consensus with the 16 largest commercial banks, which hold 80 percent of credit market share, on the reduction of interest rates for existing loans by 0.5-2 percent. The average interest rate cut is 1 percent, applied from July. This is good news for businesses and they hope the promise will be kept. However, some businesses still are not happy with the modest average 1 percent interest rate cut. If an enterprise borrows VND1 billion, it will be able to save only VND10 million in interest each year, which is insignificant in the current conditions. VNN |
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VIETNAM BUSINESS NEWS JULY 1514:53 The State Bank of Vietnam set the daily reference exchange rate at 23,203 VND per USD on July 15, down 1 VND from the previous day.
 Top 10 prestigious commercial banks 2021 announced The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) again tops the list of ten most prestigious commercial banks in Vietnam this year, according to the latest ranking announced by Vietnam Report. The bank is followed by the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Vietnam Technological and Commercial Joint Stock Bank (Techcombank) in the second and third places, respectively. The list also includes the Military Commercial Joint Stock Bank (MBBank), Asia Commercial Joint Stock Bank (ACB), Vietnam Prosperity Joint Stock Commercial Bank (VPBank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Tien Phong Commercial Joint Stock Bank (TPBank), Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) and Vietnam Bank for Agriculture and Rural Development (Agribank). The ranking was based on the banks’ financial capacity, media reputation and customers’ perception and satisfaction. Data from the General Statistics Office shows that Vietnam’s credit growth reached 5.47 percent in the first half of 2021, doubling the same period last year’s figure. Despite impacts caused by COVID-19, the banking sector has enjoyed high growth in profit during the period, with bad debts under good control. Vietnam Report Director Vu Dang Vinh said the firm’s survey of experts and banks indicates that the top three macro-economic factors influencing the banking sector’s performance in 2021 are likely to be the widespread outbreak of the COVID-19, the macro-economic recovery, and the State’s relevant policies and regulations. Meanwhile, the three micro-economic factors that may have the biggest impact on the industry include fintech, risk management and internal control system, service and product quality. Some 52.94 percent of surveyed experts and banks said that the banking industry will see better growth and performance this year. It is believed this year’s credit growth is likely to be equal to or higher than 2020’s figure./. Manufacturing firms see improvements ahead A survey carried out by the General Statistics Office (GSO) found 39.2 per cent of firms questioned expect better performance in their production and business in the third quarter of 2021, and 38.6 per cent believe production and business will stabilise. Meanwhile, 22.2 per cent of enterprises predict they may face more difficulties than the previous quarter. The GSO said that industrial production in the second quarter reported positive growth as production and business activities were maintained and gradually recovered, with the added value up 11.45 per cent year-on-year. In the first half of this year, the industrial sector’s added value is estimated to increase by 8.91 per cent year-on-year, of which the manufacturing and processing industries grew by 11.42 per cent. At present, major groups are planning to invest in Viet Nam, mainly in electronic production and component manufacturing. As of June 30, the inventory rate of the manufacturing and processing industries increased by 24.3 per cent year-on-year. To address inventory and boost production, the Ministry of Planning and Investment proposed localities continue stepping up administrative procedure reform and simplifying specialised inspection procedures. On June 1, the number of labourers working in industrial firms decreased by 1.4 per cent month-on-month, and 1 per cent year-on-year. Hanoi to promote consumption of husbandry products According to Nguyen Ngoc Son, Director of the municipal Animal Husbandry and Health Department, the capital city has one of the largest livestock and poultry herds in the country with about 38 million chickens, 1.57 million pigs and 164,000 buffaloes and cows. Son said the COVID-19 pandemic has pushed animal husbandry into a lot of difficulties, including problems in transportation and rising feed prices. The trading of livestock and poultry between Ha Noi and other provinces has also struggled with the consumption seeing sharp decline, he pointed out, adding that the pandemic also caused disruptions to supply chains. To overcome the difficult time, the capital city urged citizens to strictly follow the Government’s directives in the prevention and fight again the COVID-19 pandemic, which would help ensure the circulation of husbandry products. The prevention against diseases among livestock and poultry had also been enhanced, he said. He added that the city had created the most favourable conditions for existing supply chains to operate smoothly, such as the pork chain of Hoang Long Cooperative and the chicken chains of Tien Vien, Soc Son and Ba Vi districts. The consumption of these products would be promoted at restaurants, tourism areas and schools when the virus is put under control. The focus would also be placed on enhancing product quality to promote the sustainable development of the husbandry industry, he said. At the same time, the capital city plans to enhance cooperation with other provinces and cities to increase the trading of husbandry products. According to Nguyen Huy Dang, Deputy Director of the municipal Department of Agriculture and Rural Development, the capital city hopes to form bio-livestock cooperatives to create closed chains. Dang said it was necessary to offer policies to encourage enterprises to develop husbandry on a large scale and build concentrated and modern slaughterhouses. Previously, Deputy Miniter of Agriculture and Rural Development Phung Duc Tien said household farming still played an important role in the economy, stressing it was important to improve the efficiency of livestock production and focus on improving product quality and competitiveness. Nguyen Manh Quyen, Deputy Chairman of Ha Noi People’s Committee, said the city would focus on developing husbandry products with high added value in association with the development of high-tech slaughterhouses and food processing plants. Seaport development on the horizon Infrastructure feeding into the seaport was also being planned, including inland waterways and road and railway systems, which would also play a role in collecting and delivering goods into the seaport system, according to Sang. Plans were compiled to provide a comprehensive picture of the transportation industry in the next 10 years. Sang said that this would help ensure the connectivity of different modes of transport while fully utilising the advantages afforded to each region. The plan will be the first time that inland container depots and ports serving inland waterway vehicles would be included in the planning. Temporary ports will also be considered in areas with favourable natural conditions such as Quang Ninh, the Southeast region, and the Mekong River Delta. The seaport planning would also incorporate industry 4.0 technology in the seaport construction and management and be applied to develop green seaports and promote energy savings and the efficient use of coastal resources. During the past 10 years, the volume of cargo transported through seaports in Viet Nam grew more than 11 per cent per year. Viet Nam is targeting economic growth of seven per cent per year in the 2021-30 period. It has been forecast that the volume of cargo transported through the seaport system would increase by 1.6-2.1 times by 2030 and 4.1-4.8 times by 2050. It was estimated that Viet Nam would need around VND300-320 trillion to develop the seaport system by 2030, he said, adding that developing the seaport system would help Viet Nam become an important link in the global value chain. Sang also said that the investment from the State budget would focus on developing major seaport infrastructure but policies to attract private investment would also be on the agenda. In the 2011-20 period, about VND202 trillion was invested in seaports, accounting for 20.6 per cent of the total investment in transportation infrastructure. Private investment accounted for 86 per cent of that total. Viet Nam’s seaport system has seen significant development in the past decade. Wharf length has increased from 20 km in 2020 to 96 km currently and the handling capacity from 82.4 million tonnes to 665 million tonnes. In the first five months of this year, the seaport system handled more than 209 million tonnes of cargo, representing a rise of nine per cent compared to the same period last year. HCM City strives to increase vegetable, fruit supply Supply of vegetables and fruits are now being affected by the closing of the city's wholesale markets and many traditional markets, where most of such products are sold and bought. Demand began spiking before July 9 amid fears of the more intense lockdown under Directive 16 and people were rushing to stock up. Some market traders began to jack up prices amidst the falling supply initially when the wholesale markets closed, but prices and supply began to stabilise after July 9. Demand at supermarkets and food stores jumped again on Sunday, July 11, as people who had been unable to shop earlier made use of the weekend to buy in bulk and many other markets were closed, leading to some stores running out of stocks. Dao Van Duc, deputy director of the Phuoc An Co-operative group in HCM City’s Binh Chanh District, said his group was making an effort to keep supplying vegetables and fruits to the market through Co.opMart and Big C retail chains and at quarantine zones. It also had to pay for COVID-19 testing fees for delivery staff, which were expensive, but it tried to keep vegetable prices steady, he said. Bui Ta Hoang Vu, director of the city Department of Industry and Trade, said vegetable prices at supermarkets were steady but there was a shortage. Many large retailers had been increasing supply by up to five times to make up for the closure of many traditional markets, but they were still not enough, he said. Noticing prices and demand for vegetables are rising, individuals and businesses are trying to help by buying vegetables from other provinces and selling them at below market prices. Trinh Thi Ngoc Hien, head of Anfoods Joint Stock Company in Ben Tre Province, said her company was offering to supply non-leafy vegetables and fruits to seafood buyers at cost prices. The city Department of Industry and Trade is seeking ways to increase the supply of vegetables and fruits. Nguyen Nguyen Phuong, its deputy director, said districts were expected to work with closed markets on COVID-19 regulations so that they could reopen. Many traders at the three wholesale markets are also selling their goods online. Thu Duc City has set up a transhipment station at the Thu Duc Wholesale Market container parking lot yesterday (July 12) in an effort to increase supply of vegetables and fruits to the city. A trial run was carried out on July 11, with six businesses receiving goods. Shipments of produce from other provinces are transferred to smaller trucks to be transported to supermarkets and businesses’ staff kitchens around HCM City. Up to 2,000 tonnes of vegetables and fruits will be distributed in this manner every night. Strict measures are in place in the area, with only registered vehicles being allowed to enter and all personnel required to furnish negative COVID test results from within the last 72 hours. Goods are to be unloaded and loaded quickly so that the container trucks from outside can leave at the earliest. The Hoc Mon Wholesale Market is planning to set up a similar transhipment station soon. HCM City has become the COVID epicentre of the country with more than 15,000 cases since the start of the fourth wave on April 27. It has been under partial or total social distancing since May 31. COVID-19 surge hits Japanese firms' supply chains in Southeast Asia Surging coronavirus cases in Southeast Asia, in such countries as Malaysia and Indonesia, have started affecting the supply chains of Japanese companies, with the possibility of regional production disruption becoming more real, the Kyodo news agency reported. In Malaysia, where lockdown has been in place since June 1, plants belonging to Toyota Motor Corp. and Honda Motor Co. remain closed. The lockdown has already been extended twice, with more stringent restrictions imposed since July 5 on Malaysia's capital region, where Japanese companies operating in the country are concentrated. Mitsui Mining & Smelting Co., which makes smartphone materials in Malaysia, announced a production halt on July 5. Even though the government has since allowed the electronics industry to resume work, a press representative of the company says production will not return to earlier levels until sometime between late July and early August. Kyodo noted Japanese companies have also been hit hard in Indonesia, where daily new infections surpassed 40,000 on July 12. A survey conducted by the Japan External Trade Organisation (JETRO) showed many manufacturers decrying the increase in infections and the impact on their operations. One company reported having 18 percent of its workforce infected. Also finding it difficult to operate at full capacity due to restrictions imposed on people's movements, many Japanese companies operating in Indonesia are considering sending their Japanese expatriates back home. An official of a Japanese automaker in Southeast Asia said in the region, where vaccine rollouts remain slow, it is difficult to make a one-year forecast. The difference between the coronavirus pandemic and natural disasters lies in the former having a long-term impact on supply chains and hitting multiple areas simultaneously. Thailand, considered a linchpin of Japanese companies' production networks in the region, has had a curfew imposed on the Bangkok region since July 12. But that has yet to be accompanied by strong restrictions on corporate operations. Kyodo cited Kitami, a researcher at JETRO Bangkok, as saying that while Japanese companies are doing their best amid the pandemic, "there is a possibility that if infections continue to spread in other countries, regulations as strong as Malaysia's could be adopted there." That could sap the appetite for investment, he said./. Fourth wave of COVID-19 pandemic crushes consumer confidence Consumer confidence has hit a record low due to the resurgence of COVID-19 cases in Ho Chi Minh City and neighbouring provinces. According to the latest survey by Infocus Mekong Research, the fourth wave of the COVID-19 pandemic is causing havoc on earning power across Vietnam. 10 per cent of those surveyed have lost their jobs in the past six months or are still unemployed since COVID-19 struck Vietnam. Four out of ten respondents are working part-time or on reduced salary. Fear of infection has reached an all-time high followed by negative impact on business and fears of unemployment have risen to 50 per cent. Consumer confidence has plummeted to a 25 year low at 24, even lower than during the first wave. Consumers are addressing their fears by a huge decline in spending. Every category measured has seen a steep decline in consumption spend, with only utilities spend seeing an increase as consumers lock themselves in at home. Entertainment- dining out, transportation, and home appliance categories will see the biggest negative sales impact. Any behaviour which costs money is in decline. Being home-bound is the present norm. As a whole, consumer behaviour is being driven by reducing costs, spending less, and weathering the present pandemic storm. Essentially, behaviour is driven by tightening budgets everywhere. Hardest-hit will be gyms and any paid-for exercise schemes. Any activity that provided entertainment, convenience, and safety in the home should experience a boon. The stay-at-home trend also leads to retail consumption shifts. Among them, e-commerce will experience significant growth in the next few months, with 44 per cent noting using e-commerce more. Online, seen as safe, cost-friendly, and a convenient channel, will continue to thrive. It is forecasted that new entrants and traditional brick-and-mortar retailers will join the trend and price wars will break-out. Convenience stores at a growth rate of -1 per cent will continue to do well during the next few months, due to their base offer, convenience, and reach. Look for extended hours and new service offers. All other retail formats shall experience a decline in both usage and sales. Wet markets and mom and pop stores are less affected due to their lower price points and retailer/customer long term relationships. Supermarkets due to their large size and perceived higher price points will suffer more, as customers tighten their wallets and avoid larger areas with high traffic flow. In addition, the survey shows that 90 per cent of consumers follow government COVID-19 protocols and 78 per cent acknowledge that Vietnam has done well in COVID-19 protection. 84 per cent of Vietnamese are eager to receive a vaccination, with 12 per cent undecided and 4 per cent unlikely to accept vaccinations. For those who are undecided, the key rationale is negative symptoms such as blood clotting, lack of trust of manufactures, and lack of knowledge of the source of origin. Thai energy firm inks a deal with EVN to supply wind power from Laos to Vietnam BCPG Pcl., a Thailand-based developer and owner of renewable energy projects in the Asia-Pacific region, has entered into a power purchase agreement with Electricity of Vietnam for the development of a 600MW wind power plant in Laos to deliver green energy to Vietnam. Not only will the Monsoon Wind Project be ASEAN’s largest wind farm, it will also be the region’s first cross-border wind energy project. The wind farm will be located in Sekong and Attapeu provinces in Southern Lao PDR and the wind farm will deliver green energy from Lao PDR to Central Vietnam through the project’s 500kV transmission line. The construction is expected to commence in 2022, with the commercial operation date targeted by 2025. The Monsoon Wind Project will supply green energy to Vietnam to support the country's growing economy and carbon footprint reduction efforts. ASEAN's largest wind farm is projected to save over 35 million tonnes of greenhouse gas over its lifetime, a meaningful boost to the ambitious global effort to achieve net-zero by the middle of the century. The project also enhances Vietnam's grid stability as the majority of the project's electricity will be generated during the dry season, which is complementary to Vietnam’s existing supply of hydropower electricity that is generated mostly during the wet season. Impact Energy Asia Development Ltd. (IEAD), an associate of BCPG, signed the PPA with EVN on July 12. IEAD has been developing the Monsoon Wind Project since 2011. Paradai Suebma, chairwoman of IEAD, commented that, "While many tasks remain to be fulfilled, the signing of ASEAN’s first cross-border PPA marks a symbolic collaboration between Laos, Vietnam, Japan, and Thailand to work towards the global quest of net-zero emissions. We are part of the global fight against climate change and the journey to uplift the well-being and happiness of local communities in which we operate." She stated further, "We have always known that Lao possessed strong natural resources – this project shows the carbon credentials of Laos as the wind is harnessed to power Vietnam and possibly other ASEAN nations with clean and stable electricity." IEAD is a partnership between Impact Wind Investment Ltd., which holds 55 per cent, and BPCG which has 45 per cent. Impact Wind Investment Ltd. is backed by Mitsubishi Corporation, a global integrated business enterprise in Japan. Vietnam’s industrial production index up 9.3% in first half of 2021 The index of industrial production (IIP) in the first six months of 2021 rose by 9.3% compared to the same the period last year, according to the Ministry of Industry and Trade. The manufacturing sector continued to be the main driver of growth, with its IIP rising by 11.6%. In other industrial sectors, power generation and distribution increased 8.6% while water supply and waste treatment went up 6.8%. The mining and quarrying sector declined by 6%, driven by a 10.1% decrease in crude oil and natural gas production, and a 4.4% fall in the mining of hard and brown coal. Data released by the MOIT showed strong growth in some sectors such as metal production (up 37%), motor vehicle manufacturing (up 33.1%), manufacturing of equipment and machinery (up 17.2%), and leather production (up 12.9%). Other notable sectors with solid increases in their IIP included computers, electronic and optical devices, and paper and electric devices. In June alone, industrial production climbed by 0.5% as against the previous month and 6.8% compared to the same month in 2020. Wood industry overcomes difficulties to achieve impressive growth In the context of the complicated development of the COVID-19 pandemic, the wood industry still achieved an impressive growth rate in the first six months of the year with an export value reaching 61% of total turnover in the whole of 2020. If this growth momentum is maintained, the industry’s target of US$14-14.5 billion in export turnover in 2021 is quite achievable. According to the General Department of Forestry under the Ministry of Agriculture and Rural Development, while many other industries have faced difficulties due to the epidemic, the export value of wood and forestry products was US$8.71 billion in the first six months of this year, including US$1.76 billion from woods of all kinds (up 23.6% over the same period last year), US$6.35 billion from wooden products (up 75.4%) and US$0.6 billion from non-timber forest products (up 72.9%). The US, Japan, China, EU, and the Republic of Korea (ROK) continued to be the most important export markets for Vietnam’s wood and forestry products, with a total estimated export value of over US$7.68 billion (accounting for around 89% of the country’s total export turnover of wood and forestry products). In particular, exports to the US, China, Japan, EU and the ROK were estimated at over US$5 billion (a year-on-year increase of 99%), US$0.82 billion (up 22.9%), US$0.73 billion (up 11%), US$0.68 billion (up 54%) and US$0.76 billion (up 7%), respectively. Regarding investment, the wood industry has seen 23 new projects worth a total of US$136.056 million from 9 countries and territories around the country in the first half of the year. The sector also recorded a 10 time capital increase worth US$45.28 million and 26 capital contributions to buy shares with total capital of US$41.14 million. Notably, beds, cabinets and tables saw rises in the three aspects of new investment projects, capital increases and capital contributions. According to the Association of Vietnam Timber and Forest Products, the majority of wood production and processing enterprises have received export orders until the end of 2021. The demand for wood product exports, especially furniture, is expected to increase sharply as countries conduct social distancing and employees work from home, thereby pushing the need for home and office furniture. On the other hand, this is a time when global consumers have more need to find and purchase furniture and wooden products via websites. Meanwhile, Vietnamese timber products remain very attractive to consumers. In addition, enterprises have strictly complied with regulations on traceability and regarding the transparent origin of raw materials so their products are trusted by customers. The world’s economy is gradually recovering and the main timber import markets of Vietnam have reported rapid economic growth, leading to a sharp increase in demand. Experts also say that Vietnam’s timber and wood product exports will reach their set targets for the remaining months of 2021. Recently, several forest fires have taken place due to the impacts of the intense heat, droughts lasting many days and the burning season for farming, causing damage to forestry. The prolonged COVID-19 epidemic has affected afforestation and scattered tree planting. Meanwhile, the inspection of afforestation has been limited and many localities have not proactively directed intensive planting and the conversion of large timber plantations. In addition, policies for the development of large timber plantations, such as those related to investment and credit support, land, insurance and investment in forestry infrastructure, have not been sufficient to encourage people and businesses. Chairman of the Association of Vietnam Timber and Forest Products, Do Xuan lap, affirmed that in order to have a sustainable source of wood materials, the legality of imported wood is a vital issue today. The habit of using natural wood, especially precious wood species, is still relatively common. In fact, this habit has caused harm to the environment and to the wood industry. The US government is investigating Vietnam's wood industry based on allegations that Vietnam illegally imported tropical wood for domestic consumption and for export. This was a warning for wood importing enterprises that they must control the legality of imported wood sources. Director General of the General Department of Forestry Nguyen Quoc Tri also noted that the analysis of data in the first months of the year proved that the import and export of forestry products has witnessed many risks and low sustainability. Therefore, businesses need to strictly comply with regulations on timber imports. Localities should soon make plans to develop a stable source of raw materials in the country, while increasing the plantation of large timber forestry. Summer-autumn rice production estimated at 8.5 million tons in Mekong Delta Currently, farmers in the Mekong Delta provinces have entered the peak harvest season of the summer-autumn rice crop. Statistics show that the whole region sowed more than 1.5 million hectares, down 9,000 hectares. Rice yield is estimated at 56.66 quintals per ha, an increase of 1.15 quintals per ha compared to the previous summer-autumn rice crop; total summer-autumn rice production in the Mekong Delta this year is estimated at more than 8.5 million tons, up 124,000 tons. Many farmers reduced the rice-growing area in this summer-autumn rice crop to switch to vegetables, fruit trees, and aquaculture with higher economic efficiency. However, as the average rice yield increased by 1.14 quintals per ha, it still compensates for the deficiency of rice output due to the reduction in the growing area. According to calculations by the Departments of Agriculture and Rural Development of Mekong Delta provinces, the production cost of the summer-autumn rice crop this year is about VND3,728 per kilogram, an increase of VND143 per kg compared to the last summer-autumn rice crop. The reason is that fertilizer prices increase by about 40-60 percent over the same period, and other input materials also climbed. However, by reducing the cost of seeds and the amount of fertilizers and pesticides used, profits are still ensured for farmers. For instance, Tien Giang Province implemented well technical solutions that brought high economic efficiency, when the income reached VND42 million per ha, the production cost was about VND20 million per ha, and the profit reached VND22 million per ha, an increase of about VND5 million per ha compared to last summer-autumn rice crop. Digitalization, green growth remain key priorities for Vietnam The combination of these two factors would help boost the country’s productivity by one to two percentage points, said World Bank Country Director for Vietnam Carolyn Turk at the Local Development Dialogue 2021 held today [July 13] in virtual format, which aims to find breakthroughs for development at provinces/cities in the 2021-2030 period. Speaking at the dialogue, themed “Realizing development goals in a new normalcy,” Turk said, during the Covid-19 pandemic, Vietnam has accelerated digital transformation and IT application in various fields, especially in e-government and e-commerce, but she said more efforts are needed to continue the development in these two fields. She noted Vietnam should look at the digitalization models in neighboring countries while expressing World Bank’s commitment to assisting Vietnam during this process. On this issue, the Director of the Ho Chi Minh National Academy of Politics Nguyen Xuan Thang identified three factors for the digital transformation, including technological infrastructure, legal framework, and human resources. “Active participation from each province/city is necessary to obtain all three factors to realize the country’s goal of promoting digital economy, government, and society as planned,” he noted. Thang said a new normalcy situation would require quick adaptability to growing risks from the development process, including diseases and natural disasters. “Green growth, therefore, should be pushed forward to create new driving forces for economic development and enhance its resilience against external shocks,” he added. In addition to digitalization, Professor Tran Ngoc Anh from Indiana University (US) argued amid resource constraints and the Covid-19 pandemic, localities could still achieve their respective development goals by adopting a result-based governance model. “The purpose of such model is to realize each goal by improving efficiency inside the organization and assessing the capabilities of each public staff to have benefit packages accordingly,” Anh said. Anh expected this model to create a system with a high level of responsibilities and nurture creativity at the same time. “Assessing a staff performance would be based on their efficiency in completing a task, therefore, leaders should also assign specific and concrete tasks at the beginning,” he continued. Anh said provinces/cities should let the people and enterprises evaluate their performance to show the authorities’ determination in pursuing reform. Director-General of the Administrative Procedures Control Agency under the Government Office Ngo Hai Phan said it is inevitable to set up a mechanism to ensure the efficient implementation of policies. The Government Office and Ministry of Planning and Investment are developing 200 criteria for efficiency assessment at ministries and provinces/cities, he added. Mekong Capital invests in fast-growing healthcare firm LiveSpo Global is established by a group of three founders, specializing in Spores Probiotics Technology. The technology produces spore-based probiotics in liquid form, multi-strains, and high concentration that was developed by Dr. Nguyen Hoa Anh. Anh returned to Vietnam in 2010 after 15 years of studying and working in molecular biology at Tohoku University in Japan. The healthcare company aims to become a digitalized pharmaceutical company that revolutionizes the way consumers care for health with spore probiotics. In earlier July, Mekong Enterprise Fund IV (MEF) also completed an investment into HSV Group, the largest cosmetics retailer in Vietnam in terms of the number of stores. The company owns 69 The Face Shop, 11 Beauty Box and seven South Korean-style Club Clio cosmetics outlets, six Adidas and 12 Reebook sportswear stores. Healthcare is among the most attractive industries for investors according to the latest survey on the Vietnam private equity outlook conducted by Grant Thornton Vietnam, an auditing and consulting firm. Nguyen Thi Vinh Ha, Head of Advisory at Grant Thornton Vietnam, cited the firm’s survey showing that the growth prospects in healthcare come from the higher healthcare spending per capita with a compound annual growth rate (CAGR) of 9.8% from $194 in 2019 to an expected $309 in 2024. The shortage of qualified personnel and inadequate healthcare infrastructure results in a huge supply gap and the increasing aging speed of the Vietnamese population will further boost healthcare demand, she noted. Ho Chi Minh City’s GDP likely to expand 4.9% this year The growth forecast has been released by the Ho Chi Minh City Institute for Development Studies (HIDS). For this year, the city set a budget collection of VND364.89 trillion (US$15.86 billion), accounting for 24.79% of Vietnam’s State revenue forecasts. Chairman of the Ho Chi Minh City People’s Committee Nguyen Thanh Phong said the local authorities try to maintain production while imposing partial lockdown that is in line with the government’s twin goal of containing the pandemic and developing the economy. Accordingly, the municipal People’s Council in June approved economic plans, including allowance to anti-pandemic workforce and welfare to vulnerable groups. The move is regarded as a “factor contributing to recovering the production and stabilizing the labor market.” In 2021, Ho Chi Minh City (HCMC) will also pay attention to public investment by allocating capital for major projects like Tham Luong – Ben Cat – Nuoc Len channel sanitation, An Phu junction, National Road No.50 expansion, Metro Line No.1, No.2, among others. To make the goals attainable, the municipal Department of Planning and Investment was asked to speed up the capital disbursement of public projects together with tackling barriers at non-State projects. Meanwhile, the city’s State Treasury, the Department of Finance, the Customs Department, and the Taxation Department need to facilitate the operation of businesses by extending tax payment deadlines and land rent for 2021. In the first half of this year, the city posted a growth rate of 5.46% in the GRDP, an increase of 7.3% in the retail sales and services, a rise of 20.7% in the state collection, and the index of industrial production (IIP) growth of 5.9%. According to Truong Tien Dung, deputy head of the Food and Foodstuff Association of HCMC, local businesses, mostly those working in the tourism and services will face challenges caused by the months-long pandemic. But manufacturing enterprises still strive to maintain supply chains and the ability to promote exports under free trade agreements (FTAs). “In order to realize the “dual goal”, the government and the city need to have more realistic support to businesses, mostly by trimming off administrative procedures,” Dung told Vietnam News Agency. Associate Prof. Tran Hoang Nga, head of the HIDS, said the local authority needs to settle land-related issues and cut administrative procedures as well as boost the capital disbursement for public projects namely Thu Thiem No.2 Bridge, Ring Road No.2, No.3. In addition, businesses should take advantage of FTAs while restructuring themselves to serve the domestic market, being active in finding raw materials supply, and in connecting with the world. A number of measures supporting businesses and laborers together with accelerated vaccination would be cited as factors fueling optimism about the future. Since HCMC has imposed the partial lockdown on July 9, local experts have warned the city’s authorities of the impact on vulnerable groups. Dr. Nguyen Thu Anh, country director of Australia-based Woolcock Institute of Medical Research, stressed the need to have a specific plan of financial support for residents affected by the lockdown. The municipal government should distribute food to vulnerable groups twice a week to ensure sufficient supply and safety for residents themselves. “If the Government cannot guarantee the minimum support, it would neither be able to force residents to follow them nor handle this pandemic,” the health professional said. In reality, HCMC started disbursing the financial package worth VND886 billion (US$38.52 million) from July 12 to vulnerable people who are self-employed laborers, lottery sellers, and street vendors, among others. Regarding the supply of essential goods, Chairman Nguyen Thanh Phong affirmed sufficient reserves. Accordingly, it has prepared 120,000 tons of food, tripling the demand, which will be distributed through online networks and chains of supermarkets, convenience stores, wet markets, and shops citywide. Hanoi's enterprises set to use e-invoices for tax declaration in late 2021 Enterprises in Hanoi are expected to use e-invoices for tax declaration purposes in late 2021, a move that would help them save costs and accelerate the digital transformation process. The Ministry of Finance (MoF) revealed the information while announcing the capital city and other five provinces/cities (along with Ho Chi Minh City, Quang Ninh, Haiphong, Phu tho and Binh Dinh) would be included in the pilot launch of the General Department of Taxation (GDT)’s e-invoice system, developed on the 4.0 Industry platform and capable of processing a mass number of transactions. According to the MoF, enterprises using e-invoices would enjoy significant benefits in terms of saving time and operational expenses, while preventing possible billing frauds with the use of digital signatures. “Data from e-invoices are registered by tax authority’s software to determine value-added tax (VAT) amount, so enterprises are not required to declare the VAT,” stated the ministry. Another key aspect from e-invoice pointed out by the MoF is that such a move would speed up the digital transformation and automation in every step. “Enterprises’ operation from production, advertisement, distribution, payment to invoice issuance would be automated, in turn helping them optimize their corporate governance model and improve productivity,” the MoF continued. A report from the GDT noted currently 255 enterprises in Vietnam are using e-invoices with verification codes from tax agencies, while e-invoices of over 550,000 are without such code. It is estimated that local enterprises use nearly 1.3 billion e-invoices in a year, while around 800 enterprises are providing e-invoice software for customers. In 2020, the number of e-invoices put into use stood at 2.3 billion, around 50% of total used invoices in the year. Endless challenges confront banking industry Although many Commercial Banks have not yet announced their financial statement for the second quarter of 2021, some banks have already declared outstanding growth and profit. Needless to say, the current ongoing complicated developments of the Covid-19 pandemic will continue to bring about endless challenges for the banking industry in the second half of the year. In the first six months of the year, profits at VietinBank were estimated to increase by 75% to touch VND 13,000 bn. This information was shared by VietinBank leaders at a business review meeting at the end of June. This is also the highest six month pre-tax profit in the history of VietinBank. A notice released at the end of June by Vietnam Maritime Commercial Joint Stock Bank (MSB), said that in the first six months of the year, pre-tax profit reached VND 2,800 bn, three times higher than in the same period last year, reaching 85% of the whole year plan. According to the set plan, the bank pre-tax profit target this year is at VND 3,280 bn, up 30% compared to the previous year. TPBank is also among the group of banks that announced preliminary business results of last six months, with a pre-tax profit of VND 3,007 bn, up 47.8% over the same period last year, equal to 54% of the whole year plan, while the Return on Assets (ROA) reached 2.15%, and Return on Equity (ROE) reached 26%. By the end of June, total assets of TPBank were estimated at around VND 242,000 bn, within the target of VND 250,000 bn for the whole year. Total assets are forecast to increase far beyond the plan by the end of the year. LienVietPostBank also recently revealed that profit in the first five months of the year reached around VND 1,700 bn, with an average monthly profit of about VND 370 bn. Currently, profits at LienVietPostBank in the first six months are about VND 2,000 bn, equal to 80% of the whole of 2020. Last week, SSI Securities Company Analysis Center (SSI Research) announced the second-quarter business results of 33 listed companies. This report estimates second quarter pre-tax profit at HDBank at VND 2,400 bn, up 45% over the same period, BIDV at VND 3,850 bn, up 51%, Techcombank at VND 5,700 bn, up 57.6%, and ACB with pre-tax growth of 58%. As noted, the positive business results of banks were mainly due to the credit recovery in the past six months. Data from the General Statistics Office shows that the credit growth of the economy in the first six months of this year reached 5.47% compared to the same period in 2020, only increasing by 2.45%. At banks, the credit growth rate also had a significant breakthrough over the same period. VietinBank credit balance in six months reached around VND 1.06 mn bn, up 4.8% compared to the end of 2020. In the same period last year, VietinBank credit balance had increased by only 0.66%. Some sources said that within the first five months of the year, MSB hit the credit ceiling of 10.5% previously granted by the State Bank of Vietnam, and proposed for extension of credit limit. TPBank also recorded credit growth at 11%, nearly touching the credit limit granted by the State Bank of Vietnam. Similarly, BIDV profit came from credit growth of 7% compared to the beginning of the year, higher than the growth of 2.35% in the first six months of 2020, and NIM expansion over the same period. Techcombank also increased credit to 11.9%, while ACB increased 19% to 20%. Credit recovery, low cost of capital raising the Net Interest Income ratio (NIM) were the important factors that pushed the bank profit to increase rapidly in the first half of the year. Other banks have not announced their profits yet, but the data is forecast to be positive. Optimism about earnings may continue in the second half of this year. Credit demand of businesses recovered in the first months of the year, but the fourth outbreak of the Covid-19 pandemic caused business and production activities to be significantly affected. By the end of June, 70,200 enterprises had left the market, up 24.9% over the same period. In May, the Ministry of Planning and Investment also said that a number of large-scale enterprises withdrawing from the market had increased, reflecting the reduced resilience of businesses under the ongoing pandemic. In such a situation, lending activities of all banks will certainly be affected. In a business trend survey report in the third quarter of 2021 by the Department of Forecasting and Statistics (SBV), credit institutions said that at the end of the second quarter, overall customer demand was at a modest level. In this, the demand for loans and payments improved stronger than in the previous quarter, while the demand for deposit continued to improve though the speed slowed down. In general, the business situation has improved but not as expected. Looking to the second half of the year, credit institutions have revised their forecast of credit balance growth for the whole year compared to the survey period announced at the end of the second quarter. Specifically, it is expected that this year's credit balance will only increase by 13.1% as compared to previous 14.7%. Credit institutions also reduced their credit growth forecast compared to the previous survey period due to the devastating impact of the pandemic in the second half of 2021. This result showed that credit institutions are worried about the situation in the third and fourth quarters. According to forecast by securities companies, due to increased credit demand for economic recovery, inflation pressure is higher in the second half of the year than in the first six months. Therefore, in order to maintain an attractive deposit interest rate in the context of high competition from investment channels such as real estate and securities, bank deposit interest rates are expected to increase by 0.25% to 0.3% in the second half of 2021. When deposit interest rates increase, the bank NIM will shrink and affect profitability. Capital inflow into real estate and securities is forecast to be more tightly controlled, as these are attractive NIM sectors due to higher lending rates than average. Currently, there are many opinions that profits on books of banks are not substantial, and not showing insider potential problems. According to Circular 03/2021 of the State Bank of Vietnam, credit institutions are allowed to restructure the repayment term with debts arising from the period from 23 January 2020 till the end of 2021, which means that debts that are likely to become bad debts have been circled. At the same time, the provisioning for this amount is also extended with a term of three years. Accordingly, the provisioning rate is at least 30% at the end of the year, increasing to at least 60% and 100% at the end of 2022 and 2023, respectively. Many bad debts that should have been set aside were not set up. Therefore, the current profit does not necessarily reflect the realistic health of the bank. VAMM reports increasing motorcycle sales in Q2 Members of the Vietnam Association of Motorcycle Manufacturers (VAMM) sold a total of 667,360 motorcycles in the second quarter of 2021, a year-on-year rise of 28.65 percent. Five VAMM members - Honda, Yamaha, Piaggio, Suzuki, and SYM - are producing and distributing nearly 100 models of motorbikes, from middle-end to high-end and luxurious vehicles. Honda Vietnam, which is manufacturing and distributing 29 types of motorbikes, accounts for about 80 percent of the market share. It sold 149,853 motorbikes in June, down 16.9 percent month on month and 14.2 percent year on year. Wave Alpha was the bestseller, with 32,578 units, or 21.7 percent of the total, while Vision was the most popular scooter, with 38,542 units delivered, or 25.7 percent. Besides domestic sales, some member units of VAMM also export their completed motorcycle products to many countries and territories. Notably, Honda Vietnam exported 17,151 motorbikes to foreign markets./. HCM City charities help poor, frontline COVID workers with food, accommodation Free meals, vegetable, and accommodation have been provided to people especially the poor, social welfare shelters, and frontline volunteers as well as health workers in COVID-19 prevention and control in HCM City during the 15-day social distancing period. Non-profit Food Bank Việt Nam’s volunteers ride motorbikes with food boxes every day into small alleys where people selling lottery tickets, scavengers and other poor informal-sector workers live. They have been told to stay off the streets and at home during the 15-day social distancing mandate by the city under Directive No.16. The motorbikes with the food are parked in the middle of the alleys so that people can keep a safe distance. Nguyễn Tuấn Khởi, the founder of Food Bank Việt Nam, said each meal comprises eggs, tomato fish stew, fried mustard greens, cabbage soup, and banana so that they “could have nutritious meals.” Before the social distancing began, the food was mostly handed over to needy people at the charity’s Bếp Yêu Thương (Loved Kitchen) in Bình Thạnh District’s Ung Văn Khiêm Street. The volunteers have been issued cards that allow them passage around the city to deliver the meals. Khởi said he had also got in touch with sponsors in many provinces to ask for donations of vegetables and others needed for making food at the city’s social welfare shelters. On July 9, the first day of social distancing, the Food Bank Việt Nam took vegetable and other requirements by car to Vinh Sơn Nursing Home, Diệu Pháp Shelter, and Hiệp Bình Phước Social Welfare Centre. Two days later it brought more than 20 tonnes of vegetable from Đà Lạt and delivered to other social welfare shelters. The HCM City Youth Social Work Centre on July 11 cooked meals for 101,844 poor people and people living in locked-down areas, the highest number following 37 days of charity. Initially it had planned to feed only 28,000 people daily. Because of the social distancing, volunteers have to stay at the centre to cook, Võ Quốc Bình of the centre, said. “The city has more and more areas being locked down because of COVID-19 patients there. Lottery ticket sellers and garbage collectors do not earn anything during the social distancing period. Free meals are imperative for them.” The centre gets orders for food from people’s committees, the Việt Nam Fatherland Front and Hồ Chí Minh Communist Youth Union in districts, its volunteers cook the needed food, and the agencies placing the orders collect and distribute the meals. The centre has solicited donations to ensure it has enough vegetables, fruits, meat, and others. Bình said: “Previously, traders in the city’s wholesale markets donated them, but the markets are closed temporarily. We contact vegetable farmers in the city and other provinces to seek donations.” Many individuals, locals and overseas Vietnamese, and companies have donated vegetables to people in locked-down areas and opened charity places dubbed 0 đồng food stores and mini marts in many places to benefit thousands of needy people. The so-called rice ATM machines continue to be used during the fourth wave of COVID. In District 12 for instance there are six 0 đồng food stores and an ATM machine. Đỗ Kim Ngọc told Tin Tức online newspaper belonging to the Việt Nam News Agency that she has a four-month baby and her family’s income depends on her husband and has been affected by the pandemic. Vegetables, rice, noodles, and milk being provided by the Việt Nam Fatherland Front Committee of District 10 help her family survive, she added. Ambassador Hotel in HCM City’s District 1 provides free accommodation for frontline health workers, police officers and volunteers involved in fighting COVID. Photo Courtesy of Nguyễn Tuấn Khởi The Food Bank Việt Nam is working with Đinh Quốc Huy, who owns the Ambassador Hotel in District, 1 to provide free accommodation for frontline health workers, police officers and volunteers involved in fighting COVID, and even others who have difficulty finding accommodation. Khởi said, “Many of the health workers, police officers and volunteers taking samples from the community cannot go home late at night.” Huy said, “They also need temporary accommodation while they wait for test results. Besides, they are afraid they might transmit COVID to their family. “My hotel does not have many guests and so I provide free accommodation to these people. They feel assured while working.” Khởi is asking CP Livestock Joint Stock Company to provide food for the volunteers and other workers and seeking other aid for their laundry, electricity and water at the hotel. At the 12 checkpoints at the city’s gateways, the Department of Transport and the Youth Social Welfare Centre have redesigned 12 old containers for police officers, health workers and volunteers there to rest between work. The containers are equipped with electricity, air conditioners and exhaust fans. The Việt Nam Fatherland Front Committee units in districts have called on landlords to reduce rents especially for workers and people affected by the outbreak. Vietnamese rice export price surges in first half Vietnam exported approximately 3.03 million tonnes of rice worth US$1.65 billion during the first half of the year with the average rice export price increasing 11.7% to roughly US$544.4 per tonne, according to the General Department of Vietnam Customs. The figures represented a fall of 14% in volume and 4% in value compared to the same period last year. The Ministry of Agriculture and Rural Development revealed that the country enjoys several advantages in terms of exporting rice due to the complicated nature of the COVID-19 pandemic making the demand for food in several countries rise sharply. A representative of Trung An Hi-tech Agriculture Joint Stock Company noted that Vietnamese rice has seen bright prospects in terms of exports to demanding markets, such as the EU market, especially since the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) in August last year. The representative emphasized that the company has successfully exported several consignments to Germany, the Netherlands, and the UK. Since the beginning of the year, the Philippines continues to be the biggest consumer of Vietnamese rice, with export volume reaching over 1.09 million tonnes worth US$579.83 million, marking a fall of 20.6% in volume and 8.6% in turnover. However, the average export price rose 15% to US$530.5 per tonne compared to the first half of 2020, thereby accounting for 36% of the country’s total rice export volume and turnover. China made up the second largest importer of local rice with 580,942 tonnes worth US$308.68 million, an increase of 26.9% in volume and up 12.5% in turnover, while the average export price decreased by 11.4% to US$531.4 per tonne against the same period from last year. Moreover, Ghana came third with 327,551 tonnes worth US$191.3 million, up 32% in volume and 51% in value, with the export price increasing by 14.6% to reach US$584 per tonne. Most notably, rice exports to Malaysia during the first half of the year plummeted compared to the same period from last year. Elsewhere, Vietnamese rice exports also witnessed significant export growth in the Bangladeshi market with a rise of 11.181% in volume and 14.1% in turnover. Last year saw the country ship 6.15 million tonnes of rice worth roughly US$3.07 billion, down 3.5% in volume, but up 9.3% in export value compared to 2019. Outstanding local firms to be honoured with Vietnam Gold Star Awards As many as 200 outstanding Vietnamese brands and domestic enterprises, which are notable for their quality and operational efficiency will be honoured with the Sao Vang Dat Viet (Vietnam Gold Star) Awards, according to Vietnam Young Entrepreneurs Association. The prizes will be given out to a number of outstanding members of the business community in cities and provinces across the country, leading brands in specific sectors, and major products, all of which have had an impact on the international competitive capacity. A series of events are to be held with the aim of supporting Vietnamese businesses to develop prestigious brands and improve their competitiveness within the framework of the awards. According to the organising board, local enterprises must submit their applications to join the awards before August 5. Throughout August and September the jury will spend time to carefully examine all entries in order to select the best 200 trade names. Moving forward, the awards ceremony is scheduled to take place in early October and will be broadcast live on Vietnam Television. The accolade was initially launched in 2003 for the purpose of encouraging Vietnamese businesses to develop high-quality products and increase their competiveness as a means of establishing a trademark for their goods, services, and brands. This can ultimately boost their prospects in both the domestic and international markets during the process of international economic integration. Vietcombank takes out top spot in Vietnam Report annual rankings Vietnam Report pointed out that despite the COVID-19 pandemic, banks still made good profits in the first half of this year with more than 10 reporting profits of trillions of dong with bad-debt ratios labelled ‘under-good-control’. Vietcombank was followed by VietinBank, Techcombank, MB, and ACB. Other names in the list included VP Bank, BIDV, TPBank, HDBank and Agribank. The latest update from the General Statistics Office (GSO) showed that credit growth had expanded by 5.47 per cent by June 21, double the rate of the same period last year. Vietnam Report also cited data from FiinGroup that showed banking revenue in the first quarter of this year rose by 28.4 per cent. The banking sector’s growth was supported by lower interest-rates on deposits but lending rates being left unchanged. In addition, many banks issued a large amount of long-term bonds with low yields, helping to improve their net profit margins. According to Vu Dang Vinh, general director of Vietnam Report, growth prospects for the banking sector remain “positive” but there are still concerns around the unpredictable nature, and subsequent impacts, of the pandemic. COVID-19 has seen many companies pushed into difficulty. The GSO’s statistics show that more than 70,200 firms have temporarily halted operation, applied to be dissolved, or been dissolved in the first half of this year. Other challenges to the banking sector were the need to comply with international standards and the growing competition in digital transformation projects. This includes not only the diversification of products and services but also with fintech and big tech companies entering the digital payments and consumer lending markets. Vietnam Report also pointed out that bottlenecks in policies for new business models were also hindering the development of the banking sector. A number of new business models have also appeared in the financial sector such as digital banking, digital currency and peer-to-peer lending. Banks are also faced with cybersecurity risks. In this context, banks should hasten the development of digital banking, Vietnam Report says, adding that the pandemic is providing an opportunity for banks to restructure their revenue sources from providing credit to providing services to meet the rising demand for cashless payments. Vietnam Report said that 2021 would be a boom year in digital transformation, which would draw the participation of not only the private sector but also State-owned banks. Vietnam Report’s survey findings revealed that 58.33 per cent of banks were implementing digital transformation on a large scale, 16.67 per cent were partially undergoing a digital transformation, and the rest were preparing to consolidate their operating systems. Green banking was another development trend the report mentioned. It emphasised the importance of providing loans to green economic sectors like renewable energy, environment services, green property development, green traffic projects, food, climate change adaptation and energy efficiency. New requirements for enterprises to continue operation in Ho Chi Minh City from July 15 To prevent the spread of the COVID-19 pandemic in the community, enterprises in Ho Chi Minh Ctiy have to implement either “three on the spot” or “one road, two places" operations. The chairman of the People's Committee of Ho Chi Minh City stated that to maintain production, enterprises in the city must belong to one of the following two groups – "three on the spot" or "one road, two places". Enterprises and employees in the first group must conduct production, have meals, and rest after work at the same spot. Otherwise, businesses must ensure isolated production and residences in two separate locations, with a single transport route for workers to commute. Enterprises can seek dormitories, hotels, or concentrated accommodations for workers. At the same time, the chairman of the People's Committee of Ho Chi Minh City assigned the city's Department of Health to assume the prime responsibility for, and coordinate with relevant agencies to urgently organise the appraisal of businesses that ensure the above conditions. Only when enterprises ensure pandemic prevention and control will they be allowed to continue production. Additionally, they need to have their workers periodically tested every seven days, to be paid out the pocket of businesses. In case enterprises fail to meet the above requirements, they must stop operating from 0:00 on July 15 until new instructions are issued. Since the fourth outbreak starting on April 27, the city has had a total of 16,573 confirmed COVID-19 cases. Through screening and tracing, infections are mainly discovered at workers' accommodations, leading to a very high risk of infection from the worker's residence to the production place and vice versa. Footwear export shows strong rebound in first half Vietnam’s footwear sector has posted a strong rebound in the first half, with export turnover touching $10.4 billion, a 27.8 per cent jump on-year. According to the Vietnam Leather, Footwear and Handbag Association (Lefaso), footwear exports in the year to date have shown strong recovery momentum. Along with this, handbags, suitcases, and umbrellas, despite reporting a lower increase of only 7.9 per cent, helped bring in nearly $1.7 billion in export value. Footwear and bags contributed more than $12 billion to $157.63 billion in Vietnam’s total export value in the first half, up 28.4 per cent over the same period last year. Lefaso said that although the epidemic is still a global complication, holding up Vietnam’s key export markets like the US and the EU, the purchasing power has recovered strongly, boosting order intake for Vietnam. The global leather and footwear market is forecast to reboot strongly in the second half, helping to brighten the country’s export prospects. The global leather and footwear market is forecast to reboot strongly in the second half, helping to brighten the country’s export prospects. An important driving force as pointed by the Ministry of Industry and Trade is that in the first half of 2021 local leather and footwear businesses have actively availed of the advantages brought by new-generation free trade agreements (FTAs), especially the EVFTA to push up export. By the end of the second quarter of 2021, the order intake to traditional export markets like the US and the EU had surged by more than 10 per cent. According to reports by businesses, until present, major enterprises have had export orders for the whole year. “Stable production in many areas with manufacturing plants are luring orders into the country's leather and footwear industry. In addition, competitive labour cost, skilled workforce and political stability are the factors that prompt importers to place orders with local firms,” Lefaso said in a recent statement with local media. Meanwhile, China's labour cost has undergone a sharp jump in the year to date. In Myanmar, the country’s political instability has adversely affected production and order placement. Cambodia has also been hit hard by the COVID-19 pandemic and social distancing policies have been forcing importers to recalculate orders. In this context, Vietnam’s leather, footwear, and handbag export value is expected to reach $22 billion, equivalent to 2019 levels. According to recent figures by the General Statistics Office, Vietnam’s total import and export value came to $316.73 billion in the first six months of this year, up 32.2 per cent on-year, of which export brought in $157.63 billion, up 28.4 per cent and import reached $159.1 billion, an excess of 36.1 per cent. Despite the negative impacts of COVID-19 pandemic causing many factories in large industrial zones in Bac Ninh, Bac Giang, or Danang to face production interruptions, Vietnam’s export value in June still registered double-digit growth compared to the same period in 2020. Accordingly, the total export-import value reached an estimated $54 billion, up 25 per cent on-year. As for major export markets in the first half of this year, the US is Vietnam's largest export market with $44.9 billion in total export value, showing a 42.6 per cent jump over the same period last year. Next is China with $24.4 billion, up 24 per cent; the EU came third with $19.3 billion, up 17.4 per cent. Vietnam’s export value to ASEAN reached $13.8 billion, up 26 per cent and to South Korea amounted to $10.5 billion, up 14.7 per cent, and to Japan $9.9 billion, up 6.9 per cent. Samsung refutes news of halting operation at Saigon Hi-tech Park South Korean giant Samsung has disclaimed rumours that it has halted operations at the manufacturing facility at Saigon Hi-tech Park that went viral a few days ago. Under the fourth resurgence of COVID-19, plenty of overseas companies in Vietnam, including Samsung have had to temporarily halt operations at Saigon Hi-tech Park (SHTP) as per the requirement of the local management board, reported Bloomberg. Accordingly, the SHTP Management Board was reported to have compelled establishments to briefly shut down until they can come up with plans about quarantining and providing accommodations for their employees at the park during the health crisis. However, as soon as the news was published, a representative of Samsung in Vietnam denied the information and asserted that it has had plans prepared to provide accommodations and also quarantine measures for its facility in the hi-tech park. The representative claimed the facility has been operating normally. Meanwhile, other subsidiaries of US-based Intel, Japan-based Nidec, Japan-based Nipro, which are also located in the park, remain silent about the management board’s decision. Previously, Nidec Vietnam had halted operations for a week when an infection case was discovered at its factory. The problem also forced the company to let go nearly 65 per cent of employees. To date, the establishment provided accommodations for nearly 4,000 labourers and is currently waiting for the management board to approve its quarantine plan to resume work. SHTP is home to 85 companies with more than 45,000 workers. Last year, the park’s entire manufacturing value reached $21 billion, up 23 per cent on-year. Of this, about 20 companies submitted quarantine plans to the management board. Manufacturers clamber for continuity A growing number of manufacturers in Ho Chi Minh City are struggling to keep manufacturing afloat amidst a severe COVID-19 outbreak among workers. As over 230 workers have tested positive for the coronavirus, Nidec Sankyo Vietnam had to temporarily halt production in Saigon High-tech Park (SHTP) in Thu Duc city. Meanwhile, the company has turned part of its facility into an on-site quarantine zone for nearly 3,500 workers. Nidec Sankyo Vietnam is among four subsidiaries of Nidec Group in SHTP. Likewise, its sister company Nidec Vietnam is scrambling to maintain operations. Luu Kim Hong, chairman of the trade union at Nidec Vietnam, told VIR that the company has more than 6,000 workers, with one-third of them living in Thu Duc city’s ward next to the SHTP, which was recently locked down. Nidec Vietnam has relied on the rest of its workers to fulfil the large amount of orders and has requested workers to do overtime to hit targets. It is also looking at recruiting more workers but such a thing is scarce during the pandemic. Even more worrying, if infected cases are detected at the factory, Hong is afraid about the lack of on-site quarantine facilities. Because the factory site has only enough space for production, it is not possible to arrange quarantine area for thousands of workers as per the city’s request. “Workers will not agree to stay at the factory site because of the living conditions. Indeed, we have prepared space in case of quarantine, but it is not eligible for such a large number of people to stay for a long time. We even rent hotels for workers to stay and pay all the fees for that, but very few people accept the solution due to high risks of infection,” he shared. The SHTP is home to 85 businesses employing 4,500 employees, including 500 experts. There are three companies with 5,000 employees and 10 companies with 1000 employees. Some big investors in the SHTP include Intel, Samsung, Sanofi, Schneider, Jabil, and others. As a subsidiary of Nikkiso Group, Nikkiso Vietnam has also felt the pain from the latest wave of coronavirus. Nikkiso Vietnam has its production base in Tan Thuan Industrial Zone in District 7, specialising in manufacturing high-quality medical products, including blood tubes for dialysis treatments. Cao Tan Dung, general affairs manager of Nikkiso Co., Ltd., told VIR that the situation is getting worse with more and more workers infected in Tan Thuan Industrial Zone. At present the company is striving to tighten the anti-pandemic measures at the factory. “There is an infected case in my factory as well so we had to put off the production a few days ago. A stay-at-work model seems a good idea now, because of the limited space in the factory,” he said. Factories in industrial zones, export processing zones, and high-tech zones are suffering from pandemic spread among workers. Furthermore, since workers usually live together in an area, forced isolation numbers can be huge. With no clear end in sight to Ho Chi Minh City’s pandemic woes, authorities and enterprises are sparing no time in preventing the spread and minimising losses. In the meeting of the COVID-19 pandemic prevention and control team in the city, Hua Quoc Hung, director of Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), claimed there were around 800 infected cases in 38 enterprises in such zones as of early last week. Among them, there were four enterprises with 100 or more cases. For businesses with a large number of infections but currently lacking isolation spaces for F1 and F2 cases, there will be a possibility of cross-contamination. Authorities have asked state-owned enterprises to temporarily use their properties, offices, or factories as quarantine zones or screening test points. Around 38 enterprises have registered to arrange accommodation for their workers to stay at work. The current outbreak had exerted a severe impact on Vietnam’s manufacturing sector. Containment measures and temporary business closures contributed to the sharpest falls in output and new orders since the first outbreak of the pandemic last year, while also exacerbating supply chain issues and making it more difficult to export products. Jola Pasku, senior economist at American-British information provider IHS Markit, told VIR that Ho Chi Minh City accounts for approximately 22 per cent of Vietnam’s economic output, so any disruptions of economic activities there will likely have negative spillovers on economic indicators on a macro level. “Depending on the scope of the current outbreak and the extent of the disruptions in industrial parks, we will likely witness a more pronounced slowdown in export-oriented manufacturing activities and GDP in the third quarter of the year,” she said. MoneyInsuranceSmart Payment TrendsStock Monitor Vietnam Asia Commercial Joint Stock Bank (VietABank) will list 445 million shares (OTC: VAB) on the Unlisted Public Company Market (UPCoM) with the reference price of VND13,500 (58 US cent). According to information from the Hanoi Stock Exchange, shares of VietABank will officially be transacted on July 20, 2021. As of June 25, VietABank had 1,913 shareholders, all of whom are domestic shareholders. Two large shareholders of the bank are Rang Dong JSC and Viet Phuong Investment Group with the ownership of 7.35 and 12.21 per cent. The ratio available (30 per cent) for foreign shareholders will be unchanged. In the first quarter of this year, the bank reported a pre-tax profit of VND125 billion ($5.43 million), up 53 per cent on-year. As of March 31, VietABank has a total asset value of VND77.02 trillion ($3.35 billion). This year, the bank set the target to earn VND658 billion ($28.6 million) in pre-tax profit, up 61.7 per cent on-year. It expects to earn VND7.2 trillion ($313 million) in revenue and VND526 billion ($22.87 million) in after-tax profit, signifying increases of 23 and 58 per cent on-year. Besides, it also expects to increase the total asset to VND97.07 trillion ($4.22 billion) by the end of the year. In the first half of this year, series of banks list their shares on stock exchanges, including OCB, SeABank, and Bac A Bank. These banks mobilised a huge volume of capital and their share value increased between 36 and 150 per cent compared to the reference prices. Multichannel retail a new trend amidst pandemic in Vietnam Utilising both online and physical stores has become one of the new trends in the Vietnamese retail market amid the complicated developments of COVID-19. Shopping channels from apps to social media and supermarket call centres are operating at full capacity, helping drive growth for retailers and suppliers of goods as well as allowing consumers to minimise direct contact with each other and subsequent exposure to the virus. The COVID-19 pandemic is making consumers more conscious of their health and safety, resulting in significant changes in their shopping habits towards an increase in online shopping via e-commerce platforms. With the popularity of social networking sites and e-commerce platforms, online shopping is becoming a new trend amongst Vietnamese consumers and in going forward it can could have changed their shopping habits forever. As such, the development of multiple sale channels, both online and physical, is now a necessity for the Vietnamese retail sector. In fact, the past several years have seen some retailers step up their multichannel model to meet consumers’ demand, helping make their shopping journeys more convenient. VinCommerce, which manages VinMart and VinMart+ supermarkets, is a success story in shaping the consumer habit of buying essential goods through its VinID app. With diverse offerings from fruit and vegetables to fresh meat and dried foods sourced from its stores, the company affords consumers the convenience of having what they need for their daily lives without having to visit a physical store. Lotte Mart has also launched a mobile app to allow consumers to choose from up to 3,000 different types of goods on its online supermarket and have them delivered to their homes. For production companies, many are also starting to pay more attention to multichannel sales though most acknowledge that these online channels have yet to bring in much benefit. The food maker Vissan, for instance, began selling their products on e-commerce platforms and promoting online sales through its hotline and website in early 2020. The company targets 20% growth in its online channels in 2021 and aims to raise its share of revenue through this channel to 30% in the future. The giant dairy producer Vinamilk has stated it has been investing in e-commerce in recent years but its contribution remains small as most consumers still retain the habit of buying at a store near them. Nevertheless, the company is still pushing for the development of its physical stores to support their online channel as it continues to be an inevitable source demand during the pandemic. In addition to the growing number of convenience stores and minimarts, online retail is considered a channel with great potential and much room for development thanks to technological developments. In Ho Chi Minh City, the supermarket chain Co.op Mart recently piloted a new retail model known as “pick and ship”, in which the supermarket will do the shopping for its customers. In this way, consumers visiting the are arranged in well-ventilated areas and wait to receive the products they have selected. This innovative way of operating minimises crowds at cashier counters and shelves, especially during peak hours. Van Tien Hieu, living in District 9, said in the past when he visited this supermarket, he was asked to wait in line and maintain distance from others, which he said is not practical as consumers may still stand close together or touch others by accident. But he was quite surprised when going to the supermarket in recent days as he only had to sit and browse the list of products on offer, then write what he needed and the quantities as well as his name and phone number. A supermarket worker then collected the items for him, checked the goods and payment was made. The whole process took about 15-20 minutes. Hieu said some may find this inconvenient as they could not choose the goods directly but noted that it can help reduce infections between consumers given the complicated COVID-19 situation in Ho Chi Minh City. Zero percent loan rate provided for enterprises to pay wages for workers Deputy Director of Ho Chi Minh City Bank for Social Policies Bui Van Son, on July 13, informed that the Vietnam Bank for Social Policies has started receiving applications for enterprises, who want to borrow money to pay wages for work stoppage and production restoration, according to the support package of VND26 trillion of the Government. Accordingly, enterprises are entitled to borrow money to pay wages for work stoppage when in these enterprises, there are contract employees participating in compulsory social insurance until the month preceding the time when the employees stop working or have to stop working for 15 consecutive days or more from May 1, 2021, to the end of March 31, 2022. Enterprises must not have bad debts at the time of loan application. For enterprises that have to temporarily suspend operations at the request of competent state agencies to prevent and control the Covid-19 pandemic from May 1, 2021, to the end of March 31, 2022, enterprises operating in the field of transportation, aviation, tourism, accommodation services, and service of sending Vietnamese workers to work abroad under contracts, they are entitled to borrow money to pay salaries to employees when they resume production and business activities. The loan interest rate is zero percent with loan term below 12 months. Vietnam Airlines plans to set up cargo airline Vietnam Airlines is considering setting up a cargo airline amid its business operation is severely affected by the Covid-19 pandemic. General Director of Vietnam Airlines Le Hong Ha revealed the move at the annual shareholder meeting held today [July 14]. “We came up with this idea a few years ago but it was not materialized due to different market factors,” Ha said. The Covid-19 pandemic, however, has changed the situation and caused a sharp drop in the number of air passengers. According to Ha, the national flag carrier has converted seven passenger planes into freighters, including five Airbus A350 and two A321. In June, revenue from cargo transportation, which normally accounts for 10% of the total, exceeded that of passengers, noted Ha, saying this is the basis for Vietnam Airlines to consider setting up a cargo airline after the pandemic. A report from the Ministry of Transport revealed revenue from freight service of airlines in the past year tripled compared to the pre-Covid-19 period. Since early 2021, the severe Covid-19 situation, especially during the peak season in the Tet (Lunar New Year) holiday and the national holiday from April 30-May 1, continues to put pressure on the airline. It is estimated that Vietnam Airlines suffered a loss of VND9.82 trillion (US$426.7 million) in the first half of 2021. For this year, the airline forecast consolidated loss to rising up to VND14.5 trillion ($626.8 million), a surge of 30% against last year. The prediction was based on the assumption that Vietnam Airlines could sell 11 Airbus A321, the government allows tourists to return to Phu Quoc island in the southern province of Kien Giang, the application of vaccine passport, and the airline completes disbursing the full VND12-trillion ($521 million) government’s support package. Last week, Vietnam Airlines signed a credit contract worth VND4 trillion ($173 million) with three banks of SeABank, SHB, and MSB, with the source from the refinancing fund provided by the State Bank of Vietnam (SBV). At the meeting, the airline also announced the plan to issue shares for existing stakeholders to raise VND8 trillion ($347.6 million), scheduled to take place in the third quarter. Chairman of Vietnam Airlines’ Directors of Board Dang Ngoc Hoa said proceeds raised from the move would be used to pay overdue debts and cover the operational expense Vietnam to keep public debt at 60% of GDP in next 5 years The government is expected to keep public debt at the maximum of 60% of the GDP, lower than the 65% ratio recorded in the 2016-2020 period, while government and foreign debts should not exceed 50% and 45%, respectively. The Standing Committee of the National Assembly (NA) revealed such figures in a meeting on July 13, after having reached an agreement with the government on socio-economic targets for the next five years. Other key targets include state budget revenue would be VND8,300 trillion (US$359 billion), a 1.2-fold higher than in the previous five-year period, in which taxes and fees are set to make up 13.4% of the total. The government, meanwhile, would spend VND10,260 trillion ($445.7 billion) in the next five years, of which capital expenditure is expected to account for 28% of the total, or VND2,870 trillion ($124 billion) and regular spending at VND6,400 trillion ($276.6 billion), or 60%. This would result in a budget deficit of $86.7 billion, or 3.7% of the GDP. The NA’s Standing Committee expected the government’s direct debt payment obligation should not be above 25% of the state budget revenue. For the mid-term public investment plan of the 2021-2025 period, the investment capital is set at VND2,870 trillion ($124.07 billion). Of the total, VND100 trillion ($4.32 billion) would be allocated for three national programs on socio-economic development for ethnic minority groups, new-style rural areas, and poverty reduction. The government also plans to set aside VND183.25 trillion ($8 billion) for projects of national priority, including the site clearance for the construction of Long Thanh International Airport and Phase 1 of the Eastern North-South expressway and the Ham Thuan Nam reservoir, the three would be allocated VND65.8 trillion ($2.84 billion). Phase 2 of the North-South express railway project would receive VND38 trillion ($1.64 billion), and an estimated VND78.8 trillion ($3.4 billion) would be earmarked for other expressway projects. While there has been a detailed list of national projects for budget allocation, NA Chairman Vuong Dinh Hue urged the government to set up an investment plan to avoid possible delays during the implementation process. Hue also called for the government to pay more attention to support policies for nurturing tax revenue sources, saying this would “create the driving force for growth.” Ministries join hands in promoting sustainable agriculture The Ministry of Industry and Trade (MoIT) and Ministry of Agricultural and Rural Development (MARD) on July 13 signed a cooperation agreement to ensure sustainable agriculture by modernizing the sector and boosting the export of farm produce in international markets. At the signing ceremony, Vice Minister of Industry and Trade Tran Quoc Khanh called for significant transformation of the agricultural sector, with a stronger linkage between farmers to distributors in both domestic and foreign markets. Khanh identified a number of fields that should be addressed in the coming time, including the modernization of the agricultural sector; ensuring agricultural production stays in line with market demand; the removal of non-trade barriers and the opening up of markets; and the creation of brands for agro-forestry-fishery products. “Among those priorities, origin tracing is a key matter for exports,” Khanh added. Minister of Agricultural and Rural Development Le Minh Hoan noted despite the Covid-19 pandemic, Vietnam’s agricultural exports surged 27.8% year-on-year to US$21.4 billion in the first six months, or 13.7% of the country’s total export turnover. “Taking farm produce to the global market is not an easy task, and in this process, farmers should be aware of different market factors rather just focusing on production,” Hoan added. As Vietnam is pushing for global economic integration, Hoan stressed the necessity to move from the mindset of agricultural production to agricultural economics, along with the formation of production chains. “Market sensitivity is a decisive factor for Vietnam’s farm produce to earn greater global market share,” he continued. At present, China, Japan, South Korea, and the US are Vietnam’s four largest buyers of agricultural products. In the first six months of the year, Vietnam’s exports of farm produce to the US expanded by nearly 60% year-on-year to $6.7 billion, or 27.9% of total agricultural exports. China remained the second largest import market for the local agricultural sector spending over $4.75 billion on Vietnamese farm produce, up 32.1% or 19.6% of the total. According to the MARD, Vietnam’s positive agricultural exports in the first half of 2021 were partly thanks to the country’s effective utilization of free trade agreements (FTAs) that Vietnam is a part of. Meanwhile, Vietnam has set up communication channels with major markets to better analyze and forecast customer behavior during and after the pandemic, so as to act accordingly. For the last half of 2021, the MARD expected difficulties as a result of the Covid-19 pandemic, while calling for local firms to continue taking advantage of FTAs, especially the EVFTA and CPTPP to penetrate new markets. Australia prioritises economic ties with Vietnam: Expert The Vietnam visit on July 13 by Australian Minister for Trade, Tourism and Investment Dan Tehan showed that Australia is prioritising economic ties with Vietnam as their strategic partnership is growing strongly and practically in various areas, especially in economy, trade and investment, an Australian expert has commented. Talking with the Vietnam News Agency (VNA)'s reporter in Sydney, Kyle Springer from the Western Australia-based Perth USAsia Centre, said the visit will activate cooperation frameworks to which both countries are members such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP), as well as cooperation deals between their localities. According to the expert, the Australian Government has recently funded 2.5 million AUD (nearly 2 million USD) for tens of projects to increase business opportunities and enhance cooperative ties between firms of the two countries in diverse areas, from agriculture to education, digital technology, and supply chain of small and medium-sized enterprises. In the first half of this year, two-way trade soared by over 40 percent year-on-year. During meetings with the minister, Vietnamese leaders wished that Vietnam’s shrimp meatballs and passion fruits would be exported to Australia while Vietnam also wants to import coal, iron and steel, ore and rare earth from the country. Springer suggested that within the frameworks of the CPTPP and RCEP, the two countries could develop a rare earth supply chain, under which Australia will exploit and process while Vietnam will create end-products. Western Australia's authorities also expect to launch a direct flight between Perth and Vietnam to facilitate travelling and trade once the COVID-19 pandemic is pushed back, he added./. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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VIETNAM BUSINESS NEWS JULY 1615:29 Exporters, hit by pandemic, turn to domestic market
The Vietnamese market with a population of nearly 100 million is attracting both foreign and local food suppliers, with many local exporters turning to the domestic market to overcome this difficult COVID-19 period. With the pandemic affecting exports and tourism, the domestic market continues to be a bright spot for the economy, the Ministry of Industry and Trade (MoIT) said. Le Ba Minh, director of the Pacific Foods JSC Company, a fish sauce exporter to the US market, said with more than 10 years of conquering the US market. Its fish sauce products also is the best-selling fish sauce on Amazon e-commerce platform after only a year launched the fish sauce products on this floor. In June, the company started selling in the domestic market through e-commerce platform Shopee. "The fish sauces for the domestic market have the same quality as exports. We prepared for two years to develop our domestic market." The Minh Phu Seafood Group has been known as the ‘Vietnamese shrimp king,’ but its products could never be found in the domestic market because they were exclusively meant for exports. At many trade events held in the country Minh Phu used to have a booth, but always targeted at foreign clients. However, in recent months, Vietnamese consumers have been surprised to see advertisements for its products appear on social media. The company management explained that since its products are free of antibiotics and impurities, their prices are higher than others sold in the domestic market. Analysts explained that Vietnamese consumers used to be price-conscious, but living standards are now increasing due to rapid economic growth and food safety has become a factor, persuading exports-only firms to look at the domestic market, especially with COVID-19 hitting exports. The domestic market of nearly 100 million people is large enough for businesses to overcome difficulties and challenges during the COVID-19 pandemic, according to the MoIT. It has launched programmes to stimulate consumption and support businesses. With support from localities, businesses and business groups and, especially, consumers, they are stimulating consumption and retail sales in the country./. Reference exchange rate revised down 11 VND The State Bank of Vietnam set the daily reference exchange rate at 23,192 VND per USD on July 16, down 11 VND from the previous day. With the current trading band of +/- 3 percent, the ceiling rate applied to commercial bank during the day is 23,887 VND/USD and the floor rate 22,496 VND/USD. The rates listed at commercial banks saw slight increases. At 8:20 am, Vietcombank listed the buying rate at 22,880 VND/USD and the selling rate at 23,110 VND/USD, unchanged from the rates on July 15. BIDV added 5 VND to both rates, listing the buying rate at 22,915 VND/USD and the selling rate at 23,115 VND/USD. Meanwhile, Vietinbank reduced the buying rate by 5 VND to 22,885 VND/USD, and raised the selling rate by 5 VND to 23,105 VND/USD. During the week from July 12-16, the daily reference exchange rate fluctuated variably and ended the week down 9 VND./. Banks cut lending rates to support pandemic-hit clients The Vietnam Bank for Agriculture and Rural Development (Agribank) on July 15 said it will cut lending rates in Vietnam dong for the fifth time. Accordingly, the bank will reduce interest rates by 10 percent for short-term loans with an annual interest rate of at least 5 percent, and mid-and long-term loans with an interest rate of no less than 7 percent. The interest rate cut will worth about 5.5 trillion VND (239 million USD). The programme, to last until December 31, will be rolled out at all 2,300 transaction sites of Agribank in the country. Besides, Agribank has restructured loans, provided free-of-charge domestic money transfer services, and donated more than 130 billion VND to the COVID-19 combat. The same day, the Asia Commercial Joint Stock Bank (ACB) announced that the lending rates of its short-term loans will be cut by a maximum 0.8 percentage points and that of mid and long-term loans, by 1 percentage point, to be applied to existing loans. The bank will adjust the lending rates for both individual and organisation clients between July 15 and October 15. On July 14, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) was the first to cut its lending rates following a meeting between the State Bank and credit organisations. It adjusted the annual rates down by 1 percentage point for outstanding loans of businesses and individuals affected by COVID-19, such as those operating in tourism, transportation, catering and lodging services, education and health care. General Secretary of Vietnam Bankers Association Nguyen Quoc Hung told the Vietnam News Agency (VNA) that more banks are expected to follow suit from now till the end of this year to assist pandemic-hit clients. At the July 12 meeting between the State Bank and credit organisations, credit institutions reached a consensus on reducing lending rates to support businesses and citizens, with a focus on businesses suffering most from impacts of the COVID-19 pandemic./. President promises favourable conditions for RoK businesses President Nguyen Xuan Phuc applauded the Republic of Korea’s businesses in Vietnam for stopping the spread of the COVID-19 pandemic in factories and business establishments, and contributing millions of US dollars to the pandemic prevention and control work in Vietnam. He made the compliment at a meeting in Hanoi on July 15 with Yoon Sang Ho, Chairman of the Korean Association in Vietnam and representatives of a number of large RoK corporations. The President said that when giving help to Vietnam, the RoK also helps its businesses in Vietnam maintain production and business. He committed to creating a favourable business environment for businesses, including those from the RoK, to develop. The President also promised to facilitate RoK experts' entry into Vietnam for working, and noted his belief that RoK businesses and investors will join hands with Vietnam to bolster the COVID-19 vaccine fund to overcome the pandemic. RoK Ambassador to Vietnam Park Noh Wan highly appreciated Vietnam's success in both pandemic prevention and economic development. He said RoK businesses in Vietnam have always complied with regulations on COVID-19 prevention and control. As soon as Vietnam set up the COVID-19 vaccine fund, Korean businesses have actively contributed to the fund. The ambassador asked the Vietnamese side to help with the entry of RoK experts, adding that the two sides will work closely in purchasing or producing COVID-19 vaccine to good effect. Representatives from the Korean Association in Vietnam, the Korean Business Association in Vietnam and the Korean Chamber of Commerce and Industry in Vietnam said they hoped that the host country's authorities will continue to create favourable conditions for RoK citizens in Vietnam to work and get vaccinated against COVID-19. President Phuc said he wishes RoK businesses and organisations will consider Vietnam a link of the global COVID-19 vaccine supply chain, and pledged to ask relevant Vietnamese agencies to pay attention to the issue of COVID-19 vaccination for RoK citizens and the entry of RoK experts into Vietnam./. PVGAS Trading transports first LPG lot to floating warehouse PetroVietnam Gas Trading Company (PVGAS Trading), a subsidy of the Petrovietnam Gas Joint Stock Corporation (PV GAS), has successfully transported the first lot of liquefied petroleum gases (LPG) to the floating warehouse at the anchor area in Hai Ha port in the northern province of Thai Binh. This is an important milestone marking PV GAS and PVGAS Trading’s success in ensuring LPG supply to the northern market, ensuring national power security. It also affirms PV GAS’s commitment to providing green energy to serve national development. Over the years, LPG supply for the northern market mostly depends on imported sources, causing a risk of interruption. On July 14, the first batch of LPG weighing 1,700 tonnes from the warehouse was provided to PV GAS Trading in neighbouring Hai Phong city./. Geographical survey for La Gan offshore power project to be launched The Vietnam – Russia joint-venture Vietsovpetro and the La Gan wind power project development JSC signed a contract on July 15 to conduct a geographical survey for the La Gan offshore wind power project off the coast of the south central province of Binh Thuan. The online signing ceremony was held with the witness of Danish Ambassador to Vietnam Kim H.Christensen. Speaking at the event, Christensen expressed his belief that the Vietnamese Government and local authorities will soon grant necessary licences and approvals for the project to be implemented as early as possible, contributing to realising the Vietnamese Government’s vision on energy development in a green and sustainable manner. Since the signing of a Memorandum of Understanding with the provincial People’s Committee in July 2020, the project has made significant progress. With an estimated capital of 10 billion USD and a designed capacity of 3.5 GW, La Gan is one of the first large-scale offshore wind power projects in Vietnam. According to the BVG Associates, the project will create over 45,000 full-time equivalent (FTE) jobs, contribute over 4.4 billion USD to the economy during the course of the project. It is also expected to generate electricity for over 7 million households each year, while reducing the emission of 130 million tonnes of CO2 during the project's duration. In December 2020, the Copenhagen Infrastructure Partners (CIP), Asiapetro and Novasia Energy formed a joint venture to develop La Gan offshore wind farm./. Teleconference seeks buyers for Hung Yen longan A teleconference linking 72 locations at home and abroad was held on July 15 to promote the sales of longan and other local agricultural products of the northern province of Hung Yen. Hung Yen, famous for its longan, has about 4,800 hectares of this fruit trees, with an expected output of 50,000-55,000 tonnes this year, up 15-20 percent compared with last year’s figure. According to Deputy Minister of Trade and Industry Do Thang Hai, the high longan output this year is good news for growers in Hung Yen given that the COVID-19 pandemic is affecting production and business. However, the pandemic is also posing challenges for the sale of the product. Addressing the conference, Nguyen Huu Nghia, Secretary of Hung Yen provincial Party Committee affirmed that the province will create the most favourable conditions for domestic and foreign businesses, organisations and individuals to sign contracts to buy longan as well as other agricultural products of the province, adding that the province hopes to export its products to the United States, European and Asian markets, especially Guangxi and Yunnan provinces of China. Hu Suojin, Economic and Commercial Counsellor of the Chinese Embassy in Vietnam affirmed that the Chinese Embassy in Vietnam is ready to work as a bridge for longan and other agricultural products of Hung Yen to reach the Chinese market. The Chinese diplomat said the embassy will work to facilitate customs clearance for Vietnamese agricultural products and encourage Chinese enterprises to invest in the processing of Vietnamese agricultural products. Deputy Minister Hai said the Ministry of Industry and Trade will coordinate with the Ministry of Agriculture and Rural Development and relevant agencies in issuing mechanisms to facilitate the establishment and expansion of agricultural value chains from production to consumption. In the framework of the conference, a programme was launched to put longan and other Hung Yen farm produce on sale on e-commerce platforms and several cooperation documents were signed to boost the sales of the local products./. Businesses hopes for fully online administrative procedures Businesses have expressed their hope that customs agencies and relevant ministries and sectors will further simplify administrative procedures, which, they suggested, should be completely handled online, according to a survey. The survey was conducted in 2020 among 3,657 firms operating in import-export, production, outsourcing, processing and logistics, among others, to find out their satisfaction with import-export administrative procedures. Its results were announced at an online workshop held by the Vietnam Chamber of Commerce and Industry (VCCI) and the General Department of Vietnam Customs, with the support of the US Agency for International Development (USAID), in Hanoi on July 15. VCCI Chairman Vu Tien Loc said Vietnam’s export and import have still made noted achievements despite the impact of COVID-19 and the disrupted global trade as from 2020. The country’s total export-import value last year reached 545.3 billion USD, up 5.3 percent year-on-year, he cited figures from the General Statistics Office (GSO). In the first half of this year, the number stood at 316.73 billion USD, a rise of 32.2 percent from the same period last year. The figures reflect great efforts of domestic firms amidst a range of challenges caused by the pandemic, Loc stressed. The interviewed businesses suggested increasing publicity and transparency in the implementation of administrative procedures, upgrading the infrastructure system, and raising the capacity of officials. Customs agencies and relevant ministries and sectors should better coordinate in this regard to create optimal conditions for enterprises to complete export-import procedures, they said. Dau Anh Tuan, head of the VCCI’s Legal Department, said the businesses lauded reforms in the customs sector and its improved service quality, notably positive changes in the inspection and management work. They also suggested better coordination between customs agencies and concerned ministries and sectors, and stressed the need to ensure consistency and stability in building and realising policies and laws. USAID/Vietnam Mission Director Ann Marie Yastishock applauded coordination between the Ministry of Finance and the VCCI and the General Department of Vietnam Customs in conducting the survey and releasing its outcomes. The USAID wishes to continue its cooperation with the Vietnamese agencies to tighten the links between the Government and the private sector to consolidate the policy making and law enforcement in the time ahead, she said./. First co-operative in Hung Yen to ship longan to Europe The Quyet Thang co-operative will be the first of its kind in the northern province of Hung Yen to ship a batch containing 30 tonnes of fresh longan to Europe, Director of the cooperative Tran Van My has said. To fulfil requirements of such a choosy market, the co-operative must follow a strict production procedure. In the 2021 crop, the co-operative has 30 ha of the fruit grown under VietGAP standards. However, its output is projected to reduce by 40 percent compared to that of last year due to unfavourable weather. The Ministry of Industry and Trade and Hung Yen authorities will organise a largest-ever international conference to promote longan and other local agricultural products on July 15. The conference, to be held both online and in-person, will be connected with 15 sites at home and nearly 60 others in 21 countries and territories such as the UK, Australia, India, Poland and Belgium. Hung Yen is home to about 4,800 ha of longan, of which more than 1,300 ha have met VietGAP standards. The province expects to harvest around 50,000-55,000 tonnes of the fruit this year, 15-20 percent higher than last year’s output./. Australian consumers remain keen on fresh Vietnamese longan Several Australian retail firms are actively working alongside Vietnamese businesses to import fresh longan from the Southeast Asian market in order to meet demand among Australian consumers, according to industry insiders. Luat pointed out that there remains bright prospects ahead for Vietnamese longans in the Australian market due to its high quality, sweet taste, along with incentive tax policies, adding that a large number of Australians and immigrants from Asia are very keen consumers of the fresh fruit. Phuc Truong, director of Bato Ausale Company, an enterprise that specialises in importing fresh fruit from the Vietnamese market to Australia, said the company has contacted some local partners to import fresh longans from high-quality growing areas in the Southeast Asian country. Ly Hoang Duy, CEO of 4 Ways Fresh, revealed that his company has imported fresh longans from the nation over the past two years, adding that it intends to import a large quantity of fresh longan from other growing areas in the country in the coming time. An international conference aimed at facilitating the consumption of longan and agricultural products in Hung Yen province will be held via online platforms as a means of introducing Hung Yen fresh longans to local and international consumers. This will serve to contribute to increasing the export turnover of Vietnamese fresh longans in the future. Fish cake and surimi exports enjoy robust growth over five-month period Despite the COVID-19 pandemic impacting seafood consumption globally, fish cake and surimi exports have continued to record growth in the opening five months of the year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Throughout the reviewed period, Vietnamese exports of fish cakes and surimi surged by 37% to US$160 million compared to the same period from last year. At present, these products have been exported to 39 markets worldwide, with the Republic of Korea representing the largest importer, followed by China, Thailand, Japan, Russia, Malaysia, Belarus, and Taiwan (China). Most notably, strong export growth has been recorded in the Belarusian market this year, with the Eastern European country becoming the seventh largest import market of Vietnamese fish cake and surimi. The global seafood market has shown signs of bouncing back due to the COVID-19 pandemic being brought under control in several countries globally, particularly with the deployment of vaccination schemes in many nations. According to industry experts, fish cake and surimi exports are anticipated to continue witnessing positive growth in the remaining months of the year. Vinh Phuc posts decade-high economic growth in first half of 2021 The northern province of Vinh Phuc recorded a decade-high economic growth rate in the first six months of this year, despite difficulties caused by the impacts of the COVID-19 pandemic, according to the provincial Statistics Office. At a press conference at the end of June, the provincial Statistics Office reported that the first-half Gross Regional Domestic Product (GRDP) of Vinh Phuc rose 14.21 percent from the same period last year. There were also many bright spots in the socio-economic picture of the province, the office said, attributing them to the involvement of the entire political system and the support of the people and the business community. As of June 28, budget collection in Vinh Phuc totaled 19.25 trillion VND (836 million USD), a surge of 35.18 percent on a yearly basis. Meanwhile, budget spending stood at over 10.47 trillion VND, up 6.26 percent year-on-year. The flow of foreign direct investment (FDI) capital into the province also saw a strong increase in the 6-month period, with 177.64 million USD poured into 29 projects. Meanwhile, 10 domestic investment projects were licensed, with over 7.5 trillion VND worth of total registered capital. It is noteworthy that 245 enterprises resumed operation in the reviewed period, up 56.05 percent from the same period last year, while 560 new enterprises were set up. Regarding employment, 6,880 labourers found job in the six months. Most production and business activities in urban areas in Vinh Phuc have gradually recovered and even expanded. The provincial administration has created favourable conditions for local enterprises, particularly those in industrial parks, to early stabilize production and continue to create jobs as well as income for local residents. Vinh Phuc is now home to more than 400 FDI enterprises with total registered capital of over 5.7 billion USD. Those enterprises employ around 100,000 workers and unskilled labourers with average monthly income of 7 – 8 million VND. The provincial administration has appealed to enterprises in industrial parks to join hand with the local authorities to overcome difficulties amid the COVID-19 pandemic, maintain stable production – business activities and pay attention to workers’ life./. Bac Giang helps enterprises to restore production Accordingly, the People's Committee will welcome workers who have signed labour contracts back to work; support labour recruitment; and solve difficulties in arranging concentrated accommodation for workers and assist in the arrangement of concentrated isolation areas when cases of infection or suspected infection occur. Along with that, the province also supports enterprises in industrial zones to remove difficulties in delivering goods and transporting workers; guides and supports enterprises in pandemic prevention and control plans; and support for COVID-19 vaccination for workers. The support is to strive to achieve the province's industrial production value to reach about VND8 trillion (US$348 million) this month about VND10 trillion in August, VND12 trillion in September and October and surpass VND15 trillion from November. The total number of employees returning to work will reach about 30,000 people by the end of this month, 50,000 by the end of August, and 100,000 by the end of October 2021, and 120,000 from the end of November. Due to the impact of the COVID-19 pandemic, Bac Giang Province has had over 2,500 enterprises and production and business establishments which had to temporarily suspend operations since the beginning of May. The suspension of operations of four industrial parks alone has caused over 340 enterprises to stop production, delay delivery, contracts cancelled or fined by partners. From that, many businesses have fallen into difficulties, and the number of businesses at risk of bankruptcy rose. The pandemic, at the same time, disrupted production and production chains in Viet Nam because the enterprises in these industrial zones are the main manufacturers of auxiliary components for big companies such as Samsung and Apple. The province had 263 enterprises in industrial zones reopened with 77,986 employees as of July 11. Criteria for evaluating Vietnamese business culture announced A set of criteria for evaluating Vietnamese business culture was announced on Wednesday in Ha Noi by the Viet Nam Association for the Business Cultural Development. “The set is the first set of standards on business culture approved by the Prime Minister and Government and its contents were contributed and participated in by different ministries and branches," said chairman of the association Ho Anh Tuan. He added the set with two parts, 19 criteria and 51 evaluation and measurement indicators, was a basis for determining if a company meets "Vietnamese business culture standards". Per the set, firms cannot be involved in smuggling, tax evasion or the production and trade of counterfeit or harmful products. They must also not owe salary or social insurance payments to their employees, not defraud, take advantage of or harm other organisations and individuals. Other conditions include assessments of business leaders for sustainable development, building and implementing corporate culture, respect for the law, business ethics, and social responsibility. Vu Ba Phu, director of the Trade Promotion Department under the Ministry of Industry and Trade (MoIT), said: “A corporate brand is the crystallisation of product quality and corporate culture. “A good brand is not only a business asset but also a national asset as when the country has many prestigious brands, the national brand's prestige is also enhanced," he said. Phu added there was a strong interaction between national brands and corporate brands and corporate culture in recent years. He said many Vietnamese enterprises have made great efforts to build and form a business culture, creating international Vietnamese brands such as Vinamilk, TH True Milk, and Viettel. In that case, Phu said the MoIT appreciated this set of criteria and will consider it as the basis for evaluating the national brand. At the set launching meeting, the association announced the regulations consisting of six chapters and 14 articles for a corporation to be recognised as having Vietnamese business culture. The recognition aims to contribute to promoting the building of the culture of the Vietnamese business community at home and abroad, and gradually form typical characteristics of Vietnamese business culture to meet the requirements of sustainable development and international integration, said the association. It also has plans for an annual forum called 'Culture with Business' with a separate topic associated with the context and requirements of the year to create a national forum for leaders of the Party and the State to meet with the business community, researchers and managers about business culture. The first forum is scheduled to be held in the second week of November on the occasion of Vietnam Corporate Culture Day on November 10 in Ha Noi. Food producers toil to meet stringent EU regulations Although the EU-Vietnam Free Trade Agreement has been promising Vietnamese companies access to one of the largest Western markets with almost 450 million potential consumers, to distribute fruit, vegetables, and other food products in the EU, producers have to fulfil stringent requirements, which so far has only been achieved by a few. The global health crisis has slowed down the plans of Vietnamese chicken producer Koyu & Unitek Co., Ltd. (K&U) to expand its export market to EU member countries. K&U is a joint venture between Unitek Enterprise Co., Ltd. and Koyushokucho Co., Ltd. – one of Japan’s largest companies in industrial chicken farming – and operates a factory in the southern province of Dong Nai. K&U exported the first batch of 300 tonnes of chicken breast to Japan in 2017. After successful negotiations with partners to export the meat to Singapore and Hong Kong, K&U was planning to conquer the EU market. However, this endeavour seems to be far more difficult than expected. The strict conditions that local producers have to adapt to are tough for many. For example, Chapter 6 of the EU-Vietnam Free Trade Agreement (EVFTA) on sanitary and phytosanitary (SPS) measures provides a framework to protect human, animal, or plant life and health from introduction, establishment, and spread of pests, diseases, and additives, toxins, and contaminants in food and feed. Nearly a year after the EVFTA came into effect, Dang Phuc Nguyen, general secretary of the Vietnam Fruit & Vegetable Association (VinaFruit) believed that the competitiveness of Vietnamese fruit in the EU market is increasing, thanks to the rise of agricultural production and tariff exemptions and reductions in the EVFTA. According to VinaFruit, in the first six months of 2021, the total export value of fruit and vegetables reached over $2 billion, up 17.4 per cent over the same period in 2020. However, the EU was not among the top five export markets. According to Nguyen, Europe has always been a market with very high standards for food quality, but the pandemic has now further pushed these standards to a higher level. Intra-regional consumers are more interested in the food they eat every day, even as Europe has been effectively bringing the pandemic under control via vaccination programmes. Nguyen warned that non-tariff barriers are being erected as soon as tariff barriers are removed, while the requirements for chemical residues in food imported into the EU are becoming more stringent, such as within the SPS measures. In Vietnam, there are not many businesses that can directly export food to the EU because most of them are of small scale, and their competitiveness in the export market is not high. Fruit and vegetable producer Nafoods JSC used to face many difficulties in ensuring production because the commitment of farmers to the business was loose. After the first outbreaks of COVID-19 in the EU, Ho Thi Loan, sales manager of Nafoods realised that this market is changing markedly, with more consumers preferring organic products with high nutritional value. Because of this, Nafoods was one of the few Vietnamese enterprises that have been directly exporting passion fruit and some concentrated tropical fruits to the EU market, with a turnover of about $15 million per year. In response to this trend, Nafoods established 1,500 hectares of plantation for passion fruit and cooperates with the Hanoian Institute of Crops Research and Development and a pesticide supplier to find products suitable for biological plant protection. These efforts have not only helped the company raise product quality, but also enabled a cleaner production environment for farmers as well as ensured a sustainable production to supply the EU market. Despite the difficulties in accessing the market, the EU has remained attractive for domestic companies and motivated many to upgrade their products and processes to increase exports. Nguyen Dinh Tung, general director of Vina T&T, said that the advantages from the EVFTA have motivated his company to focus on exploiting this market more strongly. However, he realised that the EU is a market with high technical standards for imported goods, especially food. “In addition to food safety certifications recognised by third parties, this market also requires suppliers to implement social responsibility and ensure sustainability factors,” explained Tung. Vina T&T – one of the first enterprises to export fruit to the EU with the preferential tariffs under the EVFTA – has accelerated the construction of a HACCP-certified preliminary processing factory and, at the same time, built plantations for mangoes, longan, and other fruits on an area of 500ha in the Mekong Delta provinces of Vinh Long and Dong Thap to further support its export operations. Moreover, the company also upgraded its production and processing conditions to meet the environmental and social certifications required in the EU. The EVFTA is expected to help Vietnam go further and comprehensively improve issues in building a clean food chain. However, one of the biggest challenges for the country is that the government must quickly improve production and quality control processes in a wide range of industries to meet the stringent requirements of the trading partner, as well as improve the conditions for businesses to enjoy the preferential tariffs of the EVFTA. Different viewpoints about building second airport for Hanoi There are stark differences between Hanoi People’s Committee and the Ministry of Transport about the proposed planning of Noi Bai International Airport and building Hanoi’s second airport. Early this month, Hanoi People’s Committee sent Dispatch No.2146/UBND-DT to the Ministry of Transport (MoT) commenting on the planning of Noi Bai International Airport in the 2021-2030 period, with a vision towards 2050. This is the second time in the past month the leadership of Hanoi has raised opinions to the planning of a transport system having huge impacts on the socio-economic development of not only Hanoi, but also the whole northern region. In Dispatch 2146, Hanoi People’s Committee stressed the desire that Hanoi’s key international airport should be positioned right in the city space, with deserving role and status. The dispatch, signed by Duong Duc Tuan, Deputy Chairman of Hanoi People’s Committee, proposed that the airport should be able to handle 130-150 million passengers a year by 2050 to match forecast development needs and orientations, instead of just 100 million passengers as mentioned in the national airport system development master planning in 2021-2030, with a vision toward 2050 outlined in Decision No.590/QD-TTg dated May 20, 2008 of the prime minister. According to the MoT, the consulting units have presented three scenarios on developing Noi Bai airport, corresponding to three planning schemes of Hanoi’s second airport in terms of scale, location and time of research. Accordingly, the city’s management authority wants Noi Bai International Airport to have a scale of about 65 million passengers per year with an area of 1,493ha area, matching the airport's capacity forecast for 2030. Hanoi’s leadership also wants the city’s second proposed international airport to be placed in Hanoi’s southern part with a capacity of 65 million passengers per year so that Hanoi's airport system can reach a total passenger annual capacity of 130 million passengers. In case the MoT decides to raise the capacity of Noi Bai International Airport to 100 million passengers per year, Hanoi People’s Committee would still want the second airport to be able to accommodate 50 million passengers per year by 2050. Hanoi says its proposal would allow it to prepare sufficient land area for the airport and update the relevant planning schemes. Besides, Hanoi People’s Committee has proposed the second international airport to be placed in Ung Hoa district which has favourable transport connectivity as it is about 54km from Noi Bai International Airport and 20km northwest to Mieu Mon airport. It can easily connect with different highways such as Phap Van-Cau Gie, national highways 5 and 7A, and the North-South railway, among others. It is also convenient for land clearance as the 1,300ha proposed space is mostly agricultural land with a low area for site clearance. Meanwhile, in Dispatch No.6594/BGTVT-KHDT the MoT sent Hanoi People’s Committee on July 9, the ministry proposed a scale of 100 million passengers a year for Noi Bai airport while the planning of the second airport would be considered after 2030. According to the MoT, consulting units proposed Noi Bai International Airport to have a capacity of 60-65 million passengers per year by 2030, which would be increased to 100 million passengers per year by 2050. The MoT argued that this scheme would help optimise the airport’s financial efficiency and position advantages. It also added that Ung Hoa would be an unfeasible location for the second airport. “Some other locations such as Thanh Mien in Hai Duong and Tien Lang in Haiphong were deemed more feasible,” said Le Anh Tuan, Deputy Minister of Transport. According to the MoT, the consulting units have proposed postponing the study of Hanoi’s second airport to after 2040. After receiving Hanoi People’s Committee proposal, the MoT said they would base their decision on the actual socio-economic development situation and the pace of the rebound of the local aviation market post-pandemic. VinaCapital funds report high growth VinaCapital VN100 ETF reported a return of 38.5 per cent and VEOF and VIBF ranked among the top three performers in their respective categories with returns of 39.1 per cent and 26.6 per cent. As of June 30 the three funds had assets under management of over VND855 billion (US$37.2 million) and nearly 6,000 subscribers. VinaCapital VN100 ETF was established a year ago and replicates the VN100 Index, which is comprised of the 100 leading stocks listed on the Ho Chi Minh Stock Exchange (HOSE). It is traded on HOSE under the ticker FUEVN100. Over 80 per cent of the fund’s assets are invested in the financial, real estate, consumer staples, and materials sectors. The top holdings are Hoa Phat (HPG), Vingroup (VIC), Techcombank (TCB), VP Bank (VPB), and Vinhomes (VHM). Launched in July 2014, VEOF is one of VinaCapital’s longest established open-ended funds. It invests in large and mid-cap companies with the growth potential to earn higher profits than the VN-Index. VIBF is a two-year-old open–ended balanced fund that combines bonds and listed stocks. Brook Taylor, CEO of VinaCapital Fund Management Joint Stock Company, said, “After just one year, the VinaCapital VN100 ETF has delivered on our expectations that the fund would mirror the performance of the VN-Index better than any other ETF currently on offer in Viet Nam. “The ETF, as well as VEOF and VIBF offer local and foreign investors exposure to a range of growth stocks that are positioned to benefit from Viet Nam’s continued macroeconomic stability, rising corporate profits, and positive growth of the stock market, which could see a number of new listings in the year ahead as the equitisation process of State-owned enterprises accelerates as planned. “Viet Nam [was] one of the rarest countries in the world with positive GDP growth in 2020 (+2.9 per cent) which continued into the first half of 2021 (+5.6 per cent), boosting the confidence of domestic and foreign investors. As a result, Viet Nam’s stock market has become one of the best growth markets in Asia, increasing by 15 per cent in 2020 and 27.6 per cent in the first six months of 2021.” Radical solutions needed to restructure economy According to the General Statistics Office of Vietnam under the Ministry of Planning and Investment, Gross Domestic Product (GDP) in the second quarter of 2021 increased by 5.64%. According to several experts this was unexpected good news. However, the current economic picture is indicating both good and bad signs, conveying much uncertainty and worry. Positive signs of growth, compared to the same period in 2020, such as in the fields of agro-forestry-fishery increased by 3.82%; industry-construction by 8.36%; processing-manufacturing industry by 11.42%; construction by 5.59%; budget revenue by 57.7%; while investment increased by 7.2%. Sectors with obvious signs of decline, such as total retail sales of goods and consumer service revenue, recovered slowly; tourism and travel revenue fell sharply by 51.8%; revenue from accommodation and food services decreased by 2.7%; passenger transport continued to decrease by 0.7%; transportation and warehousing decreased by 0.39%; and accommodation and office space went down by 5.02%. Regarding the picture of enterprises, in the first half of the year, there were more than 67,000 newly registered enterprises, increasing both in number and registered capital over the same period last year. Investigating business trends in the processing and manufacturing industry, rated better than in the first quarter; 37.7% were stable business enterprises; and 81% of enterprises with Foreign Direct Investment (FDI) reported better business performance in the second quarter. According to data from FiinPro, net revenue and profit after tax in the first quarter in enterprises and on the stock exchange grew by 11.9% and 117.8%, respectively. Enterprises listed on the stock exchange announced their second quarter business results, and as expected they are set to increase. However, the second quarter also shows that worries are gradually also increasing. In the second quarter, 35,607 enterprises temporarily suspended business activities, an increase by 22.1% over the same period; 24,660 enterprises shut down and are waiting for dissolution, an increase by 25.7% over the same period; and 9,942 enterprises are being dissolved, up by 33.8% over the same period. Labor and employment continues to be greatly affected by the pandemic. Unemployment and underemployment rates were 2.4% and 2.6%, respectively. Both increased compared to the first quarter, by 2.19% and 2.2%. Survey done by the Vietnam Chamber of Commerce and Industry (VCCI) in early 2021, on the situation of enterprises, highlights the many difficulties of enterprises in general, in terms of market, product consumption, input materials, labor, and capital. In addition, enterprises are facing difficulties due to increasing business costs. Firstly, many businesses incurred additional costs for pandemic prevention measures, such as the cost of testing workers, and for purchasing safety equipment and supplies to fight the pandemic. For enterprises with a large number of employees in the region, or with workers infected with the virus, this cost is very huge. Secondly, the cost of international transportation of goods has increased, causing difficulties for import and export enterprises. Logistics costs in Vietnam are currently higher than the world average. For the industry and construction sector, the price of some raw materials is high, directly affecting construction and investment activities, including public investment. According to a Government report, the average production price of iron and steel products in the first six months of the year increased by 29.87% over the same period last year, and the price of stone, sand, gravel, and clay increased by 5.14%. Since last year, the Government and all ministries, and various regional sectors have actively proposed, as well as issued policies to support businesses to be able to cope with a dire scenario, such as the current impact of the fourth wave of the Covid-19 pandemic. Many lessons have been learnt in making these policies as well as implementing them. Many decisions have been taken such as on financial resources for vaccines, and diversifying the target audience so that businesses can buy and inject vaccines by themselves. However, the policies for economic development need to clearly separate the two groups of solutions. First, it is important to support businesses and people to cope with the pandemic and maintain production and business activities. Second, prepare radical and long-term solutions to prepare a foundation for economic development and recovery during and after the pandemic. This needs to be reflected in both thought and action, and by avoiding excessive focus on short-term solutions to deal with the impact of the current pandemic. Regarding immediate solutions, the Government should study and add more solutions to cut and reduce costs to support enterprises and maintain production. One way is by VAT exemption or by reducing cost of pandemic prevention and testing supplies. Another way is by stopping regulations that increase the costs for businesses, especially businesses under great difficulties. Solutions and support measures must be market-oriented, and more effectively reduce direct financial support. For example, measures such as incentives to buy shares or preferred shares in firms may be more effective than cash or loans. Long-term and fundamental solutions to recover and develop the economy should be considered a long-term strategy. The Covid-19 pandemic is also providing an opportunity to restructure the economy and the business sector, and move towards a dynamic and more self-reliant economy. By creating a new space for higher growth and sustainable development in the future, it is necessary to rely on a three pillar solution. First, effective allocation of resources must be distributed to the dynamic business sector. Focus on solutions to increase productivity and promote effective investment, including public investment; drastically improve the business investment environment to ensure competitiveness; restructure enterprises; and strongly promote digital transformation and new business models. Second, immediately help those most affected by the pandemic. In addition to solutions to support difficulties for employees, it is advisable to focus on restructuring labor and employment terms through retraining programs or additional training of new skills for employees to meet business requirements in the new era of the 4.0 revolution. Third, there is need for sustainable development under the impact of the Covid-19 pandemic. Therefore, in order to achieve the dual goal of economic development in the immediate future and a strong and sustainable economic recovery, the Government must soon develop and implement an overall strategy for restructuring the economy, with emphasis on long-term sustainable solutions. Investment funds win big on Vietnam stock market The strong rise of the local stock market in the first six months means high profitability for investment funds, including those from abroad. At the end of June, the benchmark Vn-Index set a new height at 1,408.55, representing a sharp rise of 27.6% against late 2020. Market liquidity has also been surging to reach an average of over VND19.6 trillion (US$851.6 million) for 704 million shares changing hands per trading session, or an increase of nearly 200% in value and 106% in quantity compared to 2020. In this context, the exchange-trade fund VinaCapital VN100 ETF posted a 38.5% increase in profit in the six-month period. Other funds under the Vietnam Capital Fund Management (VCFM) also recorded healthy profit, including the VinaWealth Equity Opportunity Fund (VEOF) (39.1%) and VinaCapital Insights Balanced Fund (VIBF) (26.6%). VEOF and VIBF are among the top three performers in their respective groups, with the three funds’ accumulated asset value of over VND855 billion ($37.1 million) and around 6,000 investors. Set up in mid-June 2020, the VinaCapital VN100 ETF seeks to replicate the performance of the Vn100 index, comprising the top 100 largest and most liquid stocks listed on the Ho Chi Minh City Stock Exchange (HoSE). As of June 30, 80% of the fund’s capital have been invested in a diversity of fields from finance, real estate, to materials and consumer. The DCVFM VNDiamond ETF, which holds a big volume of bank stocks, also recorded an impressive return on investment (ROI) rate at 53%, while VietNam Holding (VNH) posted its best business result yet with a 100% increase in ROI. Such an amount helped maintained foreign investors’ net buying position at $410 million and contributed positively to the market development. A recent report from the SSI Securities Corporation (SSI) revealed exchange-traded funds in Vietnam’s stock market attracted a net inflow of $590 million, a 2.6-fold increase compared to the amount recorded in the whole of 2020. Experts said such strong performance from investment funds and the stock market overall came from the stable macro-economic conditions and its positive outlook. Vietnam was among a handful of countries in the world posting a positive economic growth of 2.91% in 2020 and maintained its growth momentum at 5.6% in the first six months, in turn creating confidence among domestic and foreign investors. In recent trading sessions when the Vn-Index continued its declining trend, with the largest plunge by over 50 points since January 28 that occurred on July 12, foreign investors continued their net purchasing trend with over VND1.4 trillion ($61 million) while their domestic peers looked to sell-off their stocks. Domestic trade expected to make up over 15% GDP by 2030 The Government sets goal to raise the GDP share of domestic trade to at least 15 percent over the next decade. This is part of the Government’s strategy for domestic trade development through 2030, vision to 2045. The total retail sales of consumer goods and services is expected to increase by 13-13.5 percent annually while e-commerce revenue would account for around 10.5-11 percent of the total retail sales of consumer goods and services. The number of small- and medium-sized enterprises (SMEs) operating in trade is projected to account for 40-45 percent of the total SMEs. Viet Nam’s e-commerce revenue reached US$11.8 billion in 2020, up 18 per cent against last year and accounting for 5.5 per cent of total retail sales, making Viet Nam the only country in Southeast Asia to achieve double-digit growth rate in e-commerce. COVID-19 pandemic is a major boost to e-commerce, prompting many companies to do businesses online, as well as attracting first-time online shoppers./. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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Five years of PCA's ruling: no such thing as ‘power creating justice’15:40 The Permanent Court of Arbitration (PCA)'s ruling has been an irrevocable part of history. It will act as a “guide” for countries involved in the struggle for an order based on rules and not on “force creating justice.” The PCA’s ruling on the Philippines’ lawsuit against China holds a solid legal basis and high value in the settlement of disputes in the East Sea (internationally known as the South China Sea).
On July 12, 2016, the PCA established under Annex 7 of the United Nations Convention on the Law of the Sea (UNCLOS) issued a historic ruling on the Philippines' request for an interpretation of a number of provisions of the Convention in relations with China. The important contributions of the ruling are: - Affirming the unity and universality of the UNCLOS in creating a legal framework governing the legal status of territories, islands, rocks, semi-submerged and floating features, the breadth of the seas and legal activities on the sea. The PCA affirmed that the maritime rights and obligations of countries are only governed by the provisions of UNCLOS, rejecting all claims contrary to the provisions of the UNCLOS. - Explaining clearly the relationship between the legal status of the exclusive economic zone and historic rights. The provisions of the UNCLOS have superseded all historic rights with a connotation contrary to the provisions of the UNCLOS. On that basis, the PCA rejected China’s nine-dash line claim in the East Sea. For the first time, an international tribunal explained in detail Article 121 regarding the legal status of islands and rocks. On that basis, the PCA clarified the disputes in Truong Sa (Spratly) Archipelago and Scarborough Islands. All the floating features in the Spratlys have only 12 nautical miles of territorial waters. All semi-submerged shoals in the Spratlys are not subject to occupation and have no maritime zones. The PCA rejected any possibility of applying archipelagic baselines to island features in the Spratlys. The PCA affirmed the obligations of countries in protecting the marine environment, criticized actions that destroy corals, and changed the nature of island features to build bases on the sea. The PCA upheld the principle of freedom of the high seas and pointed out the possibility of high seas in the East Sea as well as the fishing rights of fishermen of the Philippines, Vietnam, China and other countries. Revisiting the East Sea policy The PCA’s ruling is the basis for countries to rethink their policies in the East Sea. After hesitating and being influenced by political - economic factors, Philippine Foreign Secretary Teodoro Locsin on June 8 said that the PCA’s ruling is the Great Bear star guiding us in the present, and also indicates the right path in the future. According to Locsin, the ruling is final and the Philippines strongly opposes any attempt to debase the ruling, to erase it from law, history and collective memory. He added that the ruling has become and will continue to be the cornerstone of international law and it is valid for other countries with the same problematic island features as the Philippines. By explaining that island features in the Spratlys do not have their own exclusive economic zone and continental shelf, the ruling has contributed to minimizing future delimitation disputes as well as the extent of overlapping maritime zones. The countries surrounding the East Sea have the right to preserve their exclusive economic zones and continental shelves determined from land in accordance with the UNCLOS and the principle of "Land dominates the sea". The ruling is the reason for Malaysia’s submission dated December 12, 2019 to the United Nations Commission on the Limits of the Continental Shelf (CLCS) for an extended continental shelf (ECS) beyond 200 nautical miles from the baselines from which the breadth of the territorial sea is measured to the north. This expansion is legal as long as it does not create overlapping areas with the extended continental shelf from Vietnam or the Philippines. The ruling is the basis for promoting countries inside and outside the region to more clearly express their stance on issues in the East Sea. The “war of diplomatic note exchange” occurred in 2020-2021 with 25 notes, two diplomatic letters and one declaration (1 statement by Brunei, 9 notes and 1 letter from China, 3 notes from Malaysia, 3 notes from Philippines, 3 notes from Vietnam, 2 notes from Indonesia, 1 note from Australia, France, UK, Germany, Japan, and 1 diplomatic letter from the US). Except for China, the contents of these documents are: - Calling for recognition of the unity and universality of UNCLOS in providing the necessary legal framework for all activities at sea and oceans to be followed. UNCLOS is the legal basis for settling maritime disputes. - The PCA’s ruling on 12/6/2016 is final and binding on the parties to the disputes, the Philippines and China. - The island features in the Spratlys have a territorial water of only 12 nautical miles. - Freedom of navigation and overflight in the East Sea should be respected. - The archipelagic baseline method is applicable only to archipelagic States and they cannot be unlawfully applied to the offshore islands of the coastal state. - Land reclamation activities and all other forms of man-made transformation do not change the legal status and classification of island features at sea according to the UNCLOS. - Claims related to the exercise of “historic rights” in the East Sea are inconsistent with international law and the UNCLOS. Foundation for unity
The PCA’s ruling affects ASEAN's position in asserting its centrality. The Statement of the 36th and 37th ASEAN Summits in 2020 clearly outlines the universality and unity of the UNCLOS in defining maritime titles, sovereign rights, jurisdiction and legitimate interests of the coastal states. All activities at sea should be carried out in accordance with the legal framework provided by the UNCLOS. The ruling can become the foundation for ASEAN's unity in promoting the settlement of the East Sea issues. The US State Department’s statements also represent consistent policy from the Trump administration to the Biden administration in support of the ruling. The press statement of the US State Department dated February 19, 2021 said: The US position is similar to the conclusions of the PCA’s ruling 2016 on China's unwarranted claims in areas within the exclusive economic zone or continental shelf of the Philippines. The US opposes any claim to waters beyond the 12-nautical-mile territorial waters of the claimed islands in the Spratlys. It is illegal for China to expel other countries' exploration and fishing activities in the waters of other claimant states, or unilaterally exploit those resources. These waters are named specifically as the Reed Bank (Philippines), Tu Chinh (Vietnam) or Luconia (Malaysia). This is the basis for the US and its allies - Australia, France, Germany and the UK - to deploy freedom of navigation operations of warships in recent months. The participation of many countries in the “war of diplomatic notes” is not the formation of an alliance against China's claims but the expression of a common legal position. Disputed issues must be resolved based on the law, not by force, not going contrary to the United Nations principle that all nations are equal. China's unilateral policy China continues to maintain the policy of unilaterally not accepting the ruling and not enforcing the ruling. It does not only gather researchers to write arguments to refute the ruling, but also steps up the legal battle and promotes enforcement of its law throughout the East Sea, such as establishing administrative districts, naming island features, naming plants, and passing the Coast Guard Law 2021. The PCA’s ruling has forced China to make adjustments when introducing the concept of Tu Sa (Four-Sha claim) to replace the nine-dash line claim. China continues to manipulate the UNCLOS provisions to its advantage and avoid adverse ones. This is not in line with the spirit of “package deal” that the UNCLOS requires member states to commit to. The PCA’s ruling has begun to be invoked by the parties to resolve emerging disputes such as the Whitson Reef in February this year. Each change takes time to come to a consensus among the parties. The PCA’s ruling has been an irrevocable part of history. It will act as a “guide” for the countries involved in the struggle for an order based on rules and not on “force creating justice". VNN |
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VIETNAM NEWS HEADLINES JULY 1714:50Vietnam's largest waste-to-energy plant to become operational next month
The Soc Son waste-to-energy project is located in Nam Son Waste Treatment Complex in Hanoi, the largest one in Vietnam will start operating this August. The move came to help handle the issues of waste treatment in Hanoi, a very frustrating problem for residents living near the Nam Son Waste Treatment Complex. In recent years, the Nam Son complex has been in the news several times for a long-running dispute over land compensation that repeatedly caused local residents to block entry to it, resulting in trash piling up around the city. Being aware of the importance of thorough waste treatment in a large city like Hanoi, the municipal government has invested a lot of resources to modernize waste collection and treatment in recent years. The Soc Son waste-to-energy project, with a capacity of handling 4,000 tons of solid waster and 1,740 tons of wastewater per day, was approved by Hanoi’s authorities in late 2017 with a total investment of VND7 trillion (US$303 million). The project’s investor is Hanoi-based Thien Y Environmental Energy JSC and its contractor, Chinese Metallurgical Group Corporation General Contractor MCC (China). On May 28, the plant entered the first phase of operation after 21 months of construction. As operated, it will burn 4,000 tons of solid waste (two-thirds of the city’s garbage) a day and producing 75 MW of electricity annually using European technology. Of that sum, the plant will consume 15-20% and sell the rest to Vietnam Electricity Corporation (EVN), the country’s sole power distributor. The plant has five incinerators and three generator sets. Under favorable conditions, the plant will generate electricity after 15 days of burning waste. It is expected all three generators will operate at once in November this year, said Li Ai Jun, deputy general director of Thien Y Environmental Energy. According to the Hanoi Department of Construction, the city currently discharges 6,000 tons of waste each day. Most of the volume is buried at Nam Son Waste Treatment Complex. It is hoped the Soc Son waste-to-energy project would reduce pollution that for years has affected daily life in the capital city. New vitality from old factories Old factories are an unforgettable part of Hanoi's memory. Relocating these factories out of the inner city was the right decision, helping people have a safer living environment. However, how to deal correctly with this industrial heritage needs to be carefully considered, both to ensure the development of the city and preserve their memory. The 282 Workshop (at No. 156 Phu Vien street, Bo De ward, Long Bien district, Hanoi) is a multi-functional creative space, which includes a Playing Space, Production Space, Exhibition Space, Interaction Space and Workshop Space. At the 282 Workshop, children can play, while book lovers have a library of art and architecture books to investigate. Meanwhile artists can organise exhibitions and talkshows and students can organise workshops on pottery and wood. Few people know that, before there was a quiet, green and beautiful space on an area of 3,200 square metres, the place used to be a wasteland, full of the garbage and pollution of the old factory. Some traces of the old factory are still present in the interior details of the Workshop. These make the 282 Workshop both a place to store memories and a place to incubate new creation. Although new, the 282 Workshop has managed to connect quite a few young people with the same passion for creativity and architecture. It has been trusted by some artists and community groups who organize cultural and artistic activities and exhibitions. Born before the 282 Workshop, Complex 01 space (Tay Son, Hanoi) is also a new creative complex built on the foundation of an old printing factory. Located in a small alley, Complex 01 has a different look but is full of personality with its red brick walls and rusty metal stairs. The banner of the old factory bears the slogan: "Colour printer No. 2 strives to exceed the output target of 35,000 sheets per shift" evoking memories. At Complex 01, a number of remarkable cultural activities took place, such as: an exhibition of toy models “In Imagined World I”; "Dream Concert" by Ru9 - The Sleep Company; seminar "Drama for the soul"; music night "Open Mic: Hanoi through the lens of young people" or art discovery tour "Art for You". The rebirth of an old factory is the birth of a new creative cultural playground that meets and satisfies the needs of those who seek new value. In fact, Hanoi currently has more than 100 old factories with a fairly large area displaced from the inner city, such as: the Hanoi Brewery; Dien Thong Factory; a complex of three factories of Golden Star Rubber, Hanoi Soap and Thang Long Tobacco; Gia Lam Train Factory. Unfortunately, there are very few old factories that have been "reborn" in this way. In the long term, this will be a sustainable direction, in line with Hanoi's goal of building a creative city. In the world, there are many successful models of turning old factories into creative and profitable complexes. The 798 Art Zone, on the outskirts of Beijing, China is one such example. A factory complex with a total area of 60 hectares was built into an attractive art and cultural complex. Since its opening, the 789 Art Zone has attracted more than 75 million visitors and is the venue for large-scale national and international cultural events such as: the Beijing International Film Festival and Beijing Design Week. Another example is the Songshan Cultural and Creative Park in Taipei, Taiwan (China). From the campus and buildings of the Matsuyama tobacco factory built by the Japanese in 1937, nowadays it has become an innovative multifunctional space. Accordingly, the Songshan Cultural and Creative Park includes a factory history museum, a design museum, commercial and service spaces for small and medium creative enterprises, exhibition spaces, and a public space. Hanoi is a city with a rich tradition and a diverse industrial heritage. According to architect Mai Hung Trung, an original and traditional city is one that is constantly moving and transforming on the basis of what is already there. It is not a museum city. It is not a complete erasure or break with the past. Converting an old factory into a creative space combining public cultural space will help Hanoi both mobilise, develop, connect and preserve memories. This is also a golden opportunity to develop infrastructure for the development of Hanoi's cultural industry as public spaces are one piece of the essential infrastructure of the industry of culture. In addition, according to architecture experts, this transformation will both contribute to promoting the creative economy and be an effective way to preserve and promote the city’s industrial heritage. The success of the Vincom Centre for Contemporary Art (built on the foundations of the Tran Hung Dao Mechanical Factory) or the 282 Workshop and 01 Compex Tay Son are welcome signals, contributing to shaping the identity of a forward-looking creative city. Hanoians look to receive COVID-19 vaccination shortly Prime Minister Pham Minh Chinh has recently launched the largest-ever vaccination campaign with a view to stamping out the COVID-19 pandemic. Many people wish to get vaccines soon to bring the life back to normal. With the e-health book application, it is now easy for everyone to book a COVID-19 vaccination. All you need to do is log into the app, declare your personal information and vaccination history, and then approve a COVID-19 injection to register yourself and your family. Hanoi is working to check local demand for vaccinations. In addition to via the e-health book app, bookings are also available in paper format, which have been delivered to each household. After registering, app users will receive information on vaccination locations and immunisation schedules as well as a QR code to check their information when receiving COVID-19 shots. All information about vaccinations is published on the COVID-19 vaccination portal. Vietnam is striving to inoculate some 70 percent of its population aged 18-65 by April 2022./. Hue folk singing to become unique cultural tourism product A draft project on “Promoting value and building Hue folk singing into a unique cultural tourism product in 2020-2025” has been granted approval by the People’s Commitee of the central province of Thua Thien-Hue. This will be done through propagating Hue singing through the creation of a mobile app, whilst promoting greater infrastructure investment and training human resources. The primary goal of the initiative is to transform Hue royal court music into a typical and attractive tourism product which can satisfy the demands of visitors to the province. Most notably, Hue folk singing was named as part of the country’s national intangible cultural heritage back in 2015 by the Ministry of Culture, Sports and Tourism. Bac Giang focuses on COVID-19 fighting, industry recovering The northern province of Bac Giang, one of the localities hardest hit by COVID-19, has worked hard to control the pandemic and settle major hotspots. Currently, the most dangerous hotbeds are in Van Trung and Quang Chau industrial parks (IPs) in Viet Yen district where the number of infections has exceeded 1,500 since the latest outbreak occurred on May 8. The province has defined its top priority of controlling and extinguishing major hotbeds in IPs, and recovering production of some enterprises in the IPs when the situation is more stable, with strict implementation of pandemic prevention and control measures. Head of the Bac Giang Industrial Parks Management Board Dao Xuan Cuong said developing IPs has played an important role in Bac Giang’s industrialisation and modernisation process. In recent years, the expansion of the IPs and attraction of investment in the areas have shown positive signs. In recent years, Bac Giang has entered top 10 localities nationwide in terms of investment attraction. Industrial production of companies in local IPs takes major parts in the province’s production value, said Cuong, adding that the companies also make huge payment to the State budget and create jobs for a large number of labourers from the province and neighbouring areas, helping improving the living conditions of locals and transforming the province’s economic structure. In the 2016-2020 period, Bac Giang set up one new IP - the Hoa Phu industrial zone which covers 207.45 hectares. In February 2021, the Prime Minister approved adjustments and supplementations to the province's IP planning. Accordingly, Bac Giang will have three new IPs, namely the Yen Lu IP with total area of 377 hectares in Yen Lu and Nham Son communes of Yen Dung district; Yen Son – Bac Lung IP with area of 300 hectares in Yen Son and Bac Lung communes of Luc Nam district, and Tan Hung IP covering 105.3 hectares in Tan Hung and Xuong Lam communes of Lang Giang district. Bac Giang is also allowed to expand three operating IPs – the Quang Chau IP with additional 90 hectares in Nenh township and Quang Chau and Van Trung communes of Viet Yen district; Hoa Phu IP with additional 85 hectares in Mai Dinh and Huong Lam communes of Hiep Hoa district; and Viet Han IP with additional 148 hectares in Hong Thai, Tang Tien communes and Nenh township of Viet Yen district. Currently, the province has five operating IPs: Dinh Tram, Quang Chau, Van Trung, Song Ke-Noi Hoang, and Hoa Phu, with the occupation rate of 81.7 percent. All the operating IPs are located in Viet Yen, Yen Dung and Hiep Hoa districts. The selection of investors are being processed for the Viet Han IP. As of the end of 2020, Bac Giang had nearly 400 licensed projects in local IPs, including more than 330 operating ones. The COVID-19 pandemic has seriously affected the operations of businesses in local IPs. Amid the risk of a widespread outbreak, the People’s Committee of Bac Giang had ordered the suspension of the Dinh Tram, Quang Chau, Van Trung, Song Khe-Noi Hoang IPs from May 18. The factories are halted, while workers are sent to concentrated quarantine sites for COVID-19 testing and medical monitoring. Chairman of the provincial People’s Committee Le Anh Duong said that the prolonged closure of the IPs by COVID-19 will affect production activities, causing the disruption of production chains as many companies in the IPs are suppliers of enterprises across the world. The province has coordinated with the Ministry of Health's special unit on support of COVID-19 prevention and control agency to gradually re-open the IPs in the pandemic situation, said Duong./. Efforts made to complete repairs to My Son towers before rainy season Experts of Vietnam and the Archaeological Survey of India team have been accelerating the implementation of a project to conserve and repair tower-temples of Group A at the My Son World Cultural Heritage Site in the central province of Quang Nam. Director of the Management Board of the site Phan Ho said the experts and hundreds of skilled workers are sparing no efforts to complete main conservation tasks for the A1, A12 and A13 tower-temples prior to the rainy season. The area of Group A, comprising 13 monuments, suffered huge damage during wartime and needs urgent repairs due to harsh influence of nature and time. Once the religious and political capital of the Champa Kingdom, My Son Sanctuary is located within a hilly landscape in Duy Phu commune, Duy Xuyen district, about 70 km southwest of central Da Nang city and 40 km from Hoi An ancient town. It is comprised of eight groups of 71 monuments built from the 7th to 13th centuries. The sanctuary was recognised as a world cultural heritage site by UNESCO in 1999./. HAGL star sends gift to encourage female player in her fight with lupus Hoàng Anh Gia Lai (HAGL) midfielder Trần Minh Vương has encouraged a fellow footballer in her fight with lupus with a surprise gift. Trần Thị Hạnh played for Phong Phú Hà Nam in the Vietnamese Women's Football Championship in Bình Dương and won a bronze medal at the Southeast Asian U16 Women's Championship with Việt Nam in 2018. However, Hạnh has had to temporarily give up the beautiful game since being diagnosed with the autoimmune disease in November last year. When Vương learned about Hạnh's story and that she was a fan of his, he sent her a signed HAGL shirt, a handwritten letter and some cash. "Hello Hạnh, how should I say it, perhaps, first of all, thank you for your love and it is certainly a great motivation for me. In the past few days, I have seen many stories about you,” Vương wrote. “Really, I don't know what to say, maybe we can't fully understand how you feel when you can't follow your passion due to health problems, it's sad. “You must have felt very sad, I was also very desperate when the doctor said it would be difficult for me to play football again because of an artery compression injury in my leg, but luck was with me. “Life should be seen and considered as a challenge, not a difficulty, and I believe that luck will smile on you. “Do your best, live happily in the present and don't think too much about tomorrow. Can you do it? “I have a small gift of my HAGL jersey and an envelope, hopefully, it will bring you even a little bit of positive energy. “You can use this money to buy a ball or a pair of shoes you like so that you can play gently to satisfy your passion, if you can’t play as a professional, then you can be a semi-pro player. “Try your best! Because there is no meaningless existence." After being diagnosed with lupus, Hạnh returned to her family home to be taken care of by her parents. Every month, she travels with her father from Hà Nam to Hà Nội for medical appointments. According to Hạnh's father Trần Văn Bích, his daughter’s condition is now more stable, but the doctor recommends she not do anything too strenuous and stay out of the sun. Lupus is an autoimmune disease in which the immune system attacks its own tissues. It can affect the joints, skin, brain, lungs, kidneys, and blood vessels. There is no cure for lupus, but medical interventions and lifestyle changes can help control it. Exhibition looks back on horrors of Agent Orange Nearly 300 photos, documents and items to mark the 60th anniversary of the use of Agent Orange/dioxin (AO) in Việt Nam are on display at an exhibition at the Vietnam Military History Museum in Hà Nội. The exhibition gives visitors an insight into the damage done by the chemicals, efforts to resolve the consequences as well as the journey to demand justice for Vietnamese AO/dioxin victims. Sen. Lieut. Gen. Nguyễn Văn Rinh, Chairman of the Vietnam Association for Victims of Agent Orange/Dioxin (VAVA), said the exhibition aims to provide a deeper understanding of the consequences of the toxic chemical on the environment and human health, as well as endeavours taken by the Party, State, the military and the VAVA to overcome them. It also spotlights the efforts of society and international friends in dealing with the results left by the disaster and helping victims, and the victims’ efforts to integrate into the community, he said. Rinh added that he hopes the exhibition will help secure more support to ease the pain caused by the use of the chemicals and create stronger solidarity to prevent the proliferation of weapons mass destruction as well as support for the struggle to demand justice for Vietnamese AO/dioxin victims. From 1961 to 1971, the US military sprayed about 80 million litres of toxic chemicals, 61 per cent of which were Agent Orange, containing 366kg of dioxin, onto nearly a quarter of South Việt Nam. About 86 per cent of the area was sprayed more than twice and 11 per cent of the area was sprayed more than 10 times. As a result, about 4.8 million Vietnamese were exposed to the toxic chemical. Many of the victims have died, while millions of their descendants are living with deformities and diseases as a direct result of the chemical’s effects. The exhibition, which will run until August 12, is part of activities to mark the 60th anniversary of the AO/dioxin use in Việt Nam, the 74th anniversary of the Invalids and Martyrs day (July 27, 1947 - July 27, 2021) and to respond to Day for Victims of Agent Orange/Dioxin on August 10. “The exhibition is a practical activity to mark the 60th anniversary of the AO/dioxin disaster in Việt Nam, conveying the message of peace and aspiration to rise, particularly aspiration to live, work and dedicate to the victims of Agent Orange/dioxin,” said Colonel Lê Vũ Huy, Director of the Vietnam Military History Museum. “It is also part of the efforts of the whole of society to heal the wounds of war, close the past and look towards the future and at the same time, to awaken the conscience of peace-loving people around the globe." Along with the display at the museum, the exhibition is also available online at the VAVA website at trienlamdacam.vn until the end of this year. Phú Yên authorities help ethnic minority people fight COVID-19 Phú Yên Province authorities, agencies and private benefactors have stepped up and donated necessities to help people in Ea Trol Commune cope with a COVID-19 outbreak. Sông Hinh District in the central coastal province of Phú Yên has recorded 27 SARS-CoV-2 infections since June 30, mostly among Ê Đê ethnic minorities. Ea Trol is the epicentre of the pandemic in Sông Hinh with 19 cases. A checkpoint for COVID-19 prevention and control has been set up at the start of the concrete road leading to Ly Village, Ea Trol. Unlike the bustling atmosphere of normal days, all houses are now closed as local people are strictly complying with anti-pandemic regulations. Lê Văn Tấn, Chairman of Ea Trol People's Committee, went from house to house wearing PPE to encourage people in parts of the commune that were locked down for 14 days due to COVID-19 cases. Ea Trol has eight villages, including Ly and Bầu with 371 households and 1,150 people, with more than 80 per cent of households populated by ethnic minorities. The two villages have been under social distancing orders in Directive 16 since June 30. “Fighting the pandemic in ethnic minority areas is very difficult," Tấn said. "People have a custom of living together for many generations in a house, and working in community activities, while the houses are built close together without walls.” “The only way to control the pandemic is for communal officials and medical workers to keep a close watch to guide local people.” Over the past two weeks, officials of local authorities and social organisations in Ea Trol have been assigned jobs to help local people fight the pandemic, said the chairman. Chairman of the Sông Hinh District People's Committee, Đinh Ngọc Dạn, said helping people in the lockdown areas in the immediate and long term was the top priority of the authorities. The communal People's Committee, in collaboration with the district Agriculture Department, has provided feed ingredients for cows in Ly and Bầu villages. A group of four staff helped local people watering for more than 100 hectares of rice. Eight community-based COVID teams in the eight villages have encouraged people to obey anti-pandemic regulations and helped health workers take samples for testing in the lockdown areas, trace the infected patients' close contacts and classify groups at risk of infection. People infected with SARS-CoV-2 have been treated at Đông Hòa field hospital, and 167 F1 cases have been taken to a concentrated isolation area. Some 2,000 people in the lockdown areas have been sampled for the first time and will soon take the second test. A 35-year-old woman at Ly Village, Mí Khoa, said: "I was scared when I heard that the pandemic was in the village." "Every day, loudspeakers remind people to stay at home, not to go out, not to go to work, not to communicate with neighbours, and wear masks to prevent the spread of disease in the community.” “In the past 12 days, my family of four have done the same. Commune officials helped water two sào [720sq.m] of rice, and our nine cows are given enough dry straw.” The villagers previously stocked up on rice, and were given fish sauce and cooking oil by authorities and benefactors. “People in the lockdown areas can rest assured and comply with pandemic prevention regulations,” Mí Khoa said. Mí Nít in Bầu Village said that once every three days, the communal staff bring rice, fish sauce and noodles to her family. The pandemic had arrived, but people didn't have to worry about their daily meals, the 50-year-old woman said. "I always remind my children to strictly follow the Government's regulations to fight the pandemic.” Đinh Ngọc Dạn, Chairman of the People's Committee of Sông Hinh District, said when it recorded the first positive case with SARS-CoV-2, a man on June 30, the local authorities mobilised all forces, traced his contacts and quickly zoned off his residential area. Local authorities have zoned off seven lockdown areas with a total of 747 households and 2,853 people. All households in the lockdown areas have been sampled for the first time and will be tested a second and third time. Along with quick tracing, the local authorities immediately implemented measures to take care of people's lives in the blockade areas by arranging deliveries for each family, ensuring living conditions, and maintaining stable production, he said. Vietnamese breathe easier with locally designed and produced respirators Hanoi University of Science and Technology (HUST) has teamed up with the VMED Group to develop and produce a high-flow oxygen machine to help treat COVID-19 patients. And they have the production capability to produce thousands of machines each month should the need arise. This high-flow oxygen machine, called BKVM-HF1, will be used for patients with coronavirus or respiratory failure. According to the clinical research reports, around 60 to 70 per cent of patients recover well after using this machine. Associate Professor Đỗ Duy Hải, a university scientist, said: “The machine is able to create a high-flow air that can reach 60 litres per minute and be delivered directly through the patient's nose. “When patients receive the air, especially patients with respiratory failure, it has been shown to have good results. Patients can breathe better with a higher flow of oxygen. “The air flow must meet two technique requirements which are adjustable oxygen concentration and temperature as well as moisture saturation of the air-flow,” Hải added. “The oxygen concentration can be adjusted from 21 to 100 per cent, depending on the patients’ condition. “The ideal temperature of the air flow is 37oC, which is around the same as the temperature of a person’s body. The moisture saturation can be adjusted from 95 to 100 per cent to ensure the most effective use of the machine. “Using the high-flow oxygen machine will help patients to breathe easier and prevent collapsed lungs. It can also help to eliminate the remaining carbon dioxide (CO2) from the body. The efficiency of the machine is good and there aren’t any side effects.” “According to clinical research reports, from 60 to 70 per cent of patients with COVID-19 using this high-flow oxygen machine have recovered, without the urgent need for ventilators,” said Associate Professor Nguyễn Văn Chi, leader of the A9 Emergency Center at Bạch Mai Hospital. “The high-flow oxygen machine is a necessary device to support the treatment of patients with pneumonia and respiratory failure in the early stages of COVID-19.” The machine was completed and certified on June 17 by the Ministry of Health after testing and meeting all technical requirements. “Our team feels very happy about our effort making this machine over the past three weeks. It has really paid off,” Hải said. According to Deputy Minister of Health Nguyễn Trường Sơn, more than 60 per cent of severe COVID-19 cases had to use oxygen therapy to support breathing during treatment. Inefficient oxygen supplies and a lack of oxygen tanks has been a global issue during the COVID-19 pandemic. This has led to a higher number of deaths from the virus in a number of jurisdictions. “Even when Việt Nam needs thousands of high flow oxygen machines, it is impossible to immediately get them from abroad,” Ngô Thanh Sơn, Deputy General Director of VMED Group said. “But here, the most important thing is that we are completely proactive in making the oxygen machines and because of our good preparation of production materials, we can manufacture and assemble thousands of machines in a month.” Each BKVM-HF1 machine is made at a cost of about VNĐ50 million (around US$2,000). “If we compare BKVM-HF1 with imported products, the machine is made with an effort to manufacture this machine as quickly as possible and at a low cost,” Sơn said. “In terms of production prices, my company is proactively supplying and making simple functional versions of oxygen machines so we can make machines at prices ranging between 50-70 per cent less than imported ones.” Around 30 BKVM-HF1 machines have already been produced and sent to COVID-19 hotspots nationwide. “In the first batch, we produced 30 high-flow oxygen machines and we plan to donate them to the Ministry of Health,” Sơn said. “There are 10 machines which have already been sent to HCM City to help treat COVID-19 patients. We will hand over another 20 machines to other provinces shortly.” “We are proud to join with HUST to create a high- technology product that we can promptly deliver to COVID-19 hotspots, to quickly help hospitals with their treatment of COVID-19 patients." Many scientists and technologists at HUST have been participating in Việt Nam’s effort to fight against the COVID-19 pandemic by developing solutions like rapid test kits, negative pressure isolation stretchers, positive pressure chambers, fresh air breathing caps, portable full body disinfection chambers, and mechanical ventilators among a number of other key innovations. Smooth driving ahead as new flyover opens to public A flyover bridge at Tháng 9 and Duy Tân streets, west of the Trần Thị Lý Bridge, officially opened for traffic, after 15 months of construction, on Wednesday. The central city’s transport works management board said the four-lane fly-over is the first of a series of projects at the junction that commenced in March of 2020 with a total investment of VNĐ723 billion ($31 million). It said the tunnel section and the ground level round-about would be completed by the end of this year. The three-level junction project will help reduce congestion at the junction that links the Đà Nẵng International Airport and the tourist hubs of Sơn Trà and Ngũ Hành Sơn, as well as Hội An ancient town in neighbouring Quảng Nam Province. Đà Nẵng has built a series of flyover bridges and tunnels at major intersections in the city since 2014 as part of the sustainable transport master plan to ease traffic congestion. The plan also includes a flyover bridge and a tunnel at the Điện Biên Phủ-Nguyễn Tri Phương intersection; a three-level rail and road flyover at Hue Junction; and a tunnel at the West Hàn Riverbank intersection. With a population of one million, Đà Nẵng’s current public transit system is not meeting the needs of local residents. Only 1 per cent of the 2.5 million daily journeys in the city are made by public transport. Đà Nẵng, the third largest city in Việt Nam, in investing in urban development, with funds from the World Bank, with the hopes of becoming the largest city in the central region and a green city by 2025. New metro line proposed for Hanoi The Ministry of Investment and Planning has proposed to the PM a third metro line to deal with congestion in Hanoi. The Hoang Mai Metro Line will be 8.7km long with an investment of VND40.5trn (USD1.7bn). It will run along Tran Hung Dao-Tran Thanh Tong-Kim Nguu-Tam Trinh. It will have seven underground stops on Hang Bai, Tran Thanh Tong, Kim Nguu, Mai Dong, Tan Mai, Tam Trinh, Yen So. The construction will be carried out from 2023 to 2028. The cost will come from ODA from Asia Development Bank, KfW Development Bank, and French Development Agency in Vietnam and the reciprocal capital of Hanoi. Hanoi People’s Committee will gather opinions from other state agencies, Ministry of Planning and Investment and work with the banks to develop a pre-feasibility study. The metro will connect the west side of Hanoi with the south and the city centre. It is hoped that the metro will serve 488,000 passengers a day. Major urban areas in Cau Giay, Ba Dinh, Dong Da and Hoan Kiem and Hoang Mai will be connected together. Covid-19 vaccination to be given to Phu Quoc residents The southern province of Kien Giang will start a Covid-19 vaccination programme for people on Phu Quoc Island from Thursday. Under the decision issued by People’s Committee Vice Chairman Nguyen Luu Trung, the vaccination will be firstly prioritised for people of working age totalling around 127,000 people. The second jab will be provided to Phu Quoc islanders in September. Phu Quoc City needs around 40 teams with a total of some 150 people for the inoculation programme. Doctors from the Vietnam Coast Guard Region will also be mobilised to support the work. Kien Giang has set a target to give Covid-19 vaccination for 95% of people in Phu Quoc so the locality can reopen its tourism services by the end of this year. According to Phu Quoc City’s People’s Committee, at present, the island is home to some 169,000 people, including 150,000 with permanent residence. Among those, 37,590 are under 17 years old. Since April 27 when the fourth Covid-19 wave hit Vietnam, tourist numbers to Phu Quoc have fallen by 95%. Nearly half a million workers hit by latest Covid-19 wave Nearly 500,000 workers nationwide have lost their jobs, been furloughed or underemployed during the fourth wave of Covid-19, which began in late April, said Nguyen Dinh Khang, chairman of the Vietnam General Confederation of Labor. In addition, nearly 9,500 employees in 35 cities and provinces have been infected with Covid-19, accounting for over 31% of the country’s total community-transmitted cases. Some 60,000 and 160,000 workers were primary and secondary contacts of Covid-19 patients, respectively, news site Vnexpress reported. The Vietnam General Confederation of Labor has spent VND113 billion to support more than 193,000 workers. Accordingly, coronavirus-infected workers have received VND3 million each, while those in direct contact with Covid-19 cases going through difficult circumstances have been offered VND1.5 million each. The confederation has also encouraged enterprises to buy Covid-19 vaccines for their workers. Predicting that the number of workers affected by the pandemic would continue rising, Khang said agencies and localities should speed up the disbursement of the VND26 trillion aid package, which benefits workers affected by the pandemic. HCMC, which is now the country’s largest coronavirus hotspot, has 1.6 million workers in industrial parks and export processing zones, and its neighbors--Dong Nai and Binh Duong--have 1.2 million and one million employees, respectively. The Covid-19 pandemic has spread to factories in these three localities, forcing them to suspend their operations. According to the HCMC Labor Federation, as of July 7, more than 1,900 Covid-19 cases in the city were workers. Most recently, Pouyuen Company, which has the largest number of workers in HCMC, at 56,000, has suspended its operations for 10 days to arrange accommodation and meals at work for its staff and conduct Covid-19 tests on all of its laborers. In Dong Nai, the Pouchen Company has also allowed nearly 17,000 workers to stay home for 14 days after detecting a Covid-19 case. In late May, Bac Giang had to suspended four industrial parks to prevent the transmission of the virus, affecting nearly 140,000 laborers. 34 footballers called up ahead of AFC Women’s Asian Cup 2022 qualifiers A squad of 34 footballers was announced on July 14 for the Vietnam women’s national football team ahead of their second meeting of the year in preparation for qualifiers to the 2022 Asian Football Confederation (AFC) Women’s Asian Cup. Key players named in the squad include 2020 Golden Ball winner Huynh Nhu, Chuong Thi Kieu, Hai Yen, and Tuyet Dung, all of whom were a key part of the Vietnam squad that won a gold medal in the women’s football event at the 30th Southeast Asian (SEA) Games 2019. The majority of footballers named in the team come from leading football clubs across the country, such as Ho Chi Minh City, Hanoi, and Ha Nam. The Vietnamese women’s national football team have been drawn in Group B, alongside the Maldives, Afghanistan, and the hosts Tajikistan. According to FIFA, the eight countries from Asia who will directly qualify for the 2023 Women’s World Cup will be decided following the 2022 AFC Women’s Asian Cup. In addition, the country which finishes ninth will compete in a play-off match against a team from another continent. The final round of the AFC Women’s Asian Cup is scheduled to be held in India early next year. Cash for carbon: Quang Nam looks to profit from reforestation efforts The central province of Quảng Nam has asked the government to approve a plan to export 2.5 million carbon credits for an amount of VNĐ110 billion (US$4.7 million) to VNĐ130 billion ($5.6 million). Chairman of the Provincial People’s Committee, Lê Trí Thanh, has said it is part of a larger plan to establish a carbon market to help protect forests and conservation areas, while reducing greenhouse gas emission. This would help Việt Nam to meet the requirements of the global Reducing Emissions from Deforestation and Forest Degradation (REDD+) agreement. If implemented, the plan would see the province export 800,000 carbon credits, the equivalent of 0.8 million tonnes of carbon emission each year. This figure would increase to 1.2 million carbon credits by 2026. The province said at least 1.2 million tonnes of carbon, or 1.2 million carbon credits, had been saved from 2018-20. It said the carbon credit export plan would help the province boost protection of over 460,000 hectares of forest with a goal to growing that area by an estimated of 20 per cent over ten years. Quảng Nam plans to replant just over 50,000 hectares reducing 14 million tonnes of carbon emissions which will then provide seven million cubic metres of timber in 2030. Last year, Quảng Nam promoted the Sông Thanh Nature Reserve to a National Park to conserve its rich biodiversity. It covers nearly 77,000 hectares, of which more than 58,000 are tropical, evergreen primary forest in the districts of Nam Giang and Phước Sơn. The park area is one of the region's biggest carbon stores and home to 831 species of flora and fauna, including the critically endangered grey-shanked douc langurs and the endangered red-shanked douc langurs. Up to 19,000ha of critical habitat in Nông Sơn district is also planned as a protection area for groups of the endangered Asian elephant. This would be funded by the United States Agency for International Development (USAID) Green Annamites Project. The province also plans to allocate funds of $4.4 million to restore a 100 hectares of forest as a safe habitat for a herd of grey-shanked douc langurs (pygathrix cinerea) living in Tam Mỹ Tây Commune of Núi Thành district. Phú Yên Province authorities, agencies and private benefactors have stepped up and donated necessities to help people in Ea Trol Commune cope with a COVID-19 outbreak. Sông Hinh District in the central coastal province of Phú Yên has recorded 27 SARS-CoV-2 infections since June 30, mostly among Ê Đê ethnic minorities. Ea Trol is the epicentre of the pandemic in Sông Hinh with 19 cases. A checkpoint for COVID-19 prevention and control has been set up at the start of the concrete road leading to Ly Village, Ea Trol. Unlike the bustling atmosphere of normal days, all houses are now closed as local people are strictly complying with anti-pandemic regulations. Lê Văn Tấn, Chairman of Ea Trol People's Committee, went from house to house wearing PPE to encourage people in parts of the commune that were locked down for 14 days due to COVID-19 cases. Ea Trol has eight villages, including Ly and Bầu with 371 households and 1,150 people, with more than 80 per cent of households populated by ethnic minorities. The two villages have been under social distancing orders in Directive 16 since June 30. “Fighting the pandemic in ethnic minority areas is very difficult," Tấn said. "People have a custom of living together for many generations in a house, and working in community activities, while the houses are built close together without walls.” “The only way to control the pandemic is for communal officials and medical workers to keep a close watch to guide local people.” Over the past two weeks, officials of local authorities and social organisations in Ea Trol have been assigned jobs to help local people fight the pandemic, said the chairman. Chairman of the Sông Hinh District People's Committee, Đinh Ngọc Dạn, said helping people in the lockdown areas in the immediate and long term was the top priority of the authorities. The communal People's Committee, in collaboration with the district Agriculture Department, has provided feed ingredients for cows in Ly and Bầu villages. A group of four staff helped local people watering for more than 100 hectares of rice. Eight community-based COVID teams in the eight villages have encouraged people to obey anti-pandemic regulations and helped health workers take samples for testing in the lockdown areas, trace the infected patients' close contacts and classify groups at risk of infection. People infected with SARS-CoV-2 have been treated at Đông Hòa field hospital, and 167 F1 cases have been taken to a concentrated isolation area. Some 2,000 people in the lockdown areas have been sampled for the first time and will soon take the second test. A 35-year-old woman at Ly Village, Mí Khoa, said: "I was scared when I heard that the pandemic was in the village." "Every day, loudspeakers remind people to stay at home, not to go out, not to go to work, not to communicate with neighbours, and wear masks to prevent the spread of disease in the community.” “In the past 12 days, my family of four have done the same. Commune officials helped water two sào [720sq.m] of rice, and our nine cows are given enough dry straw.” The villagers previously stocked up on rice, and were given fish sauce and cooking oil by authorities and benefactors. “People in the lockdown areas can rest assured and comply with pandemic prevention regulations,” Mí Khoa said. Mí Nít in Bầu Village said that once every three days, the communal staff bring rice, fish sauce and noodles to her family. The pandemic had arrived, but people didn't have to worry about their daily meals, the 50-year-old woman said. "I always remind my children to strictly follow the Government's regulations to fight the pandemic.” Đinh Ngọc Dạn, Chairman of the People's Committee of Sông Hinh District, said when it recorded the first positive case with SARS-CoV-2, a man on June 30, the local authorities mobilised all forces, traced his contacts and quickly zoned off his residential area. Local authorities have zoned off seven lockdown areas with a total of 747 households and 2,853 people. All households in the lockdown areas have been sampled for the first time and will be tested a second and third time. Along with quick tracing, the local authorities immediately implemented measures to take care of people's lives in the blockade areas by arranging deliveries for each family, ensuring living conditions, and maintaining stable production, he said. Hà Nội Railway Station - Hoàng Mai urban railway line project submitted to Government The Ministry of Planning and Investment is seeking government approval to build the urban railway line No.3 project, running from Hà Nội Railway Station to Hoàng Mai district, at a cost of VNĐ40.5 trillion (US$1.75 billion). The 8.7 kilometres stretch will be mostly underground, from downtown Đống Đa District to southern Hoang Mai District, along the streets Trần Hưng Đạo – Trần Thánh Tông – Kim Ngưu – Nguyễn Tam Trinh. Construction is scheduled to begin in 2023 and completed in 2028. In total, $274.1 million will come from Hà Nội’s budget and nearly $1.5 billion from foreign loans - $940.8 million from Asian Development Bank, $305.08 million from German's KfW Development Bank and $232.8 million from the French Development Agency (AFD). Metro Line No.3 is on the corridor connecting the western area with the city centre and the southern area of the city and will take 488,000 passengers a day when fully operational. Once completed, it will connect major residential areas in Hà Nội such as Từ Liêm, Cầu Giấy, Ba Đình, Đống Đa, Hoàn Kiếm, Hai Bà Trưng and new urban areas in Hoàng Mai District. The metro line will help solve mass public passenger transport problems in the central urban areas, solve traffic congestion, ensure traffic safety and curb the environmental pollution in Hà Nội’s inner districts. Hà Nội plans to have nine metro lines by 2030 but construction has so far only began on two, and neither are operational. The first metro line runs from Cát Linh Station in Đống Đa District to the Yên Nghĩa Station in the south-west Hà Đông District. The 13.5-km line will cost approximately US$868 million, two-thirds in loans from China. Construction began in October 2011 but the project has suffered numerous setbacks and delays. The trial run was completed in December 2020, with more than 70,000 km of tests on thousands of trips. In the latest development, the line was planned to go commercial operation in late April this year but has still not starting taking passengers. The second line is 12.5km from Nhổn in Tây Tựu Ward, the western district of Nam Từ Liêm, via Kim Mã Street to Hà Nội Railway Station. Early this month, the Hà Nội Urban Railway Management Board recently carried out the testing phase of the metro line. The test route, which runs from Nhổn to the S8 Station in Cầu Giấy District, is 8.5 km long. The trains will go through another testing phase before putting into operation. According to the Hanoi Urban Railway Management Board, by the end of June, the project was 72.8 per cent complete, with the elevated section at 87.85 per cent. Trung Lương-Mỹ Thuận Expressway to open to traffic in November The Trung Lương-Mỹ Thuận Expressway project will open to traffic in November after more than a decade of construction, according to Đèo Cả Investment JSC, the project’s main contractor. Hồ Minh Hoàng, the company’s chairman of the Board of Directors, said the company has urged contractors, construction units, officials, engineers and workers to speed up construction work. Despite the difficulties caused by the COVID-19 pandemic, the company is working hard to ensure the expressway opens as scheduled. In May, two company officials tested positive for COVID-19. More than 20 other employees in contact with them also tested positive for COVID. Hundreds of officials, engineers and workers connected to these cases had to isolate at quarantine centres or at home. Social distancing measures at localities have affected the supply of materials for the project, Hoàng said. In early July, about 50 employees returned to work after receiving medical treatment and isolation. Some bidding packages that were forced to halt construction due to COVID-19 in June have now resumed construction. The company has organised online meetings and created favourable conditions for employees working from home, following travel restrictions. More than 2,000 employees have been vaccinated against COVID-19. The company paid for the vaccination costs. The expressway project, worth more than VNĐ10 trillion ($435.5 million), has 25 bidding packages carried out by several different contractors. The expressway will have a length of 51.5km and four lanes. It will run between Tiền Giang Province near HCM City and Cần Thơ City. When completed, the expressway is expected to shorten travel time between HCM City and Mekong Delta provinces, and reduce traffic congestion on National Highway 1A. Construction, which began in 2009, was postponed several times due to difficulties in securing capital and changes in public investment policies. Đèo Cả JSC undertook the work and restarted construction in 2019. Resettlement buildings in HCM City become field hospitals to cope with rising COVID numbers HCM City is converting empty resettlement buildings into field hospitals to help cope with swelling numbers of patients diagnosed with COVID-19. In all 2,600 apartments will be made available in the Thủ Thiêm New Urban Area in Thủ Đức City. A further nine field hospitals are also under construction and when completed will bring the total number of field hospitals in the city to 24 providing additional 44,890 beds. HCM City has been under increasing pressure to find more beds for COVID patients as numbers tipped more than 14,000. The city has prepared for a scenario whereby the total number of patients reaches 50,000 COVID-19. The southern city's authorities have asked the Construction Department and other relevant agencies to repair and ensure basic infrastructure such as water and electricity supply, and hygiene services at the buildings are functional so that they can be used as proper field hospitals or concentrated quarantine areas. In an online conference held on Thursday, Prime Minister Phạm Minh Chính, told authorities in 27 southern provinces that priority must be given to people’s health and safety. Outbreaks in the southern provinces, from Phú Yên to Cà Mau, particularly HCM City and other key economic hubs, were becoming complicated, he went on. He also said localities should share their experience in disease prevention and control so that good results can be replicated. They should also seek solutions for any shortcomings they come across. The localities were also asked to put forward to the Government, ministries and agencies solutions to quickly and effectively get the outbreak under control. PM Chính asked local authorities to set up support centres, hotlines, and volunteer groups to support people in need. PM Chính also urged localities and agencies to offer support to employers and employees who are badly affected by the COVID-19 as following the Government’s Resolution 68. The fourth wave of COVID-19 in Việt Nam has seen 34,582 cases with 33,909 locally transmitted cases, 7,547 recoveries and 100 deaths at the time of the conference. Eleven provinces nationwide have not reported any new cases in the last 14 days. Seven provinces have not had secondary infections. In one week, Việt Nam reported 8,187 new cases in 34 provinces and cities. Sharp increases were seen in HCM City ( 6.338 cases), Bình Dương (458 cases), Tiền Giang (280 cases), Đồng Nai (222 cases), Đồng Tháp (161 cases), Long An (129 cases), Khánh Hòa (117 cases) and Vĩnh Long (114 cases). Minister of Health Nguyễn Thanh Long pointed out that the COVID-19 pandemic was still very complicated in many areas around the world with more dangerous variants that pose a serious threat even in countries with high vaccination coverage. Long said that Việt Nam should expect cases to continue to rise. “As outbreaks occurred at wholesale markets, industrial parks and crowding residential areas, in the coming days, HCM City will continue to see an increase in the number of new cases,” he said. Neighbouring provinces and other southern localities like Bình Dương, Long An and Đồng Nai should also expect to see a rise in new infections. Social distancing measures, under the Prime Minister's Directive 16, were enacted in HCM City on July 9 and are in place for 15 days. In northern and central provinces, the numbers of new cases have declined compared to those of last week. However, the risk of outbreaks remains as many people will return to the city from southern localities, Long said. The health ministry sent about 10,000 healthcare workers and volunteers, in 24 teams, to HCM City to quickly implement disease prevention and control measures. The ministry has also issued guidelines on home quarantine for F1s (people having close contacts with confirmed COVID-19 cases or suspected to get SARS-CoV-2). The quarantine period has also been reduced for F1s and arrivals from other countries to 14 days instead of 21. At present, 26,937 COVID-19 patients are under treatment. More than 270,660 people were quarantined including 3,564 at health facilities, 77,435 at concentrated quarantine areas and nearly 190,000 at their accommodations. Quang Nam moves to conserve grey-shanked douc langurs The central province of Quang Nam has built a plan to conserve the grey-shanked douc langurs in Tam My Tay commune of Nui Thanh district by 2030, with a vision to 2050. Six herds with nearly 70 grey-shanked douc langurs are residing in about 30ha of natural forest on Hon Do, Hon Ong, Duong Bong, and Duong Ban Lau mountains in Tam My Tay commune, a survey found. Under its plan, Quang Nam aims to conserve and sustainably develop the local grey-shanked douc langur population and also help with socio-economic development. In the short term, the province looks to protect and recover 60ha of special-use forest to guarantee habitat for the primates. There are about 1,500 - 2,000 grey-shanked douc langurs, a species endemic to Vietnam, in five provinces in the central and Central Highlands regions. The grey-shanked douc langur is listed in Group 1B, which covers forest animals in danger of extinction that are banned from being exploited or used for commercial purposes, in the 2007 Vietnam Red Data Book./. Array of events to promote culinary arts in central region A series of events running with the theme of “Culinary culture and Central Heritage Trail” are scheduled to take place between July and December this year, aiming to promote innovations in the central region’s culinary industry. The scheme is expected to be held every month via an online platform, with the primary goal of mobilising resources for the development of startups and enhancing their management capacity. The first event, due to get underway on July 17 morning, is set to attract the participation of three speakers who are influential figures, experienced artisans, and businessmen of the Vietnam Cuisine Culture Association (VCCA). Le Tan, vice president and general secretary of the VCCA, said the function will contribute to elevating the value of the central region’s culinary culture, along with Vietnamese cuisine in general, to international friends. Ly Dinh Quan, general director of Songhan Incubator, expressed his desire to preserve and raise the central region’s culinary arts to new heights, alongside developing a standard F&B business environment in the future. He noted that these moves will serve to create a premise in which to strengthen connectivity among various entrepreneurs and businesses, whilst simultaneously expanding the market network for the culinary industry both domestically and internationally. The series of events will be organised by the SongHan Startup Incubation Center (SHi) in collaboration with the Restaurant Association of Vietnam (RAV), the Tourism & Food Technology Village, and Techfest Vietnam, under the sponsorship of the Vietnam Culinary Culture Association. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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VIETNAM BUSINESS NEWS JULY 1715:00 Businesses have expressed their hope that customs agencies and relevant ministries and sectors will further simplify administrative procedures, which, they suggested, should be completely handled online, according to a survey.
Businesses have expressed their hope that customs agencies and relevant ministries and sectors will further simplify administrative procedures, which, they suggested, should be completely handled online, according to a survey. The survey was conducted in 2020 among 3,657 firms operating in import-export, production, outsourcing, processing and logistics, among others, to find out their satisfaction with import-export administrative procedures. Its results were announced at an online workshop held by the Vietnam Chamber of Commerce and Industry (VCCI) and the General Department of Vietnam Customs, with the support of the US Agency for International Development (USAID), in Hanoi on July 15. VCCI Chairman Vu Tien Loc said Vietnam’s export and import have still made noted achievements despite the impact of COVID-19 and the disrupted global trade as from 2020. The country’s total export-import value last year reached 545.3 billion USD, up 5.3 percent year-on-year, he cited figures from the General Statistics Office (GSO). In the first half of this year, the number stood at 316.73 billion USD, a rise of 32.2 percent from the same period last year. The figures reflect great efforts of domestic firms amidst a range of challenges caused by the pandemic, Loc stressed. The interviewed businesses suggested increasing publicity and transparency in the implementation of administrative procedures, upgrading the infrastructure system, and raising the capacity of officials. Customs agencies and relevant ministries and sectors should better coordinate in this regard to create optimal conditions for enterprises to complete export-import procedures, they said. Dau Anh Tuan, head of the VCCI’s Legal Department, said the businesses lauded reforms in the customs sector and its improved service quality, notably positive changes in the inspection and management work. They also suggested better coordination between customs agencies and concerned ministries and sectors, and stressed the need to ensure consistency and stability in building and realising policies and laws. USAID/Vietnam Mission Director Ann Marie Yastishock applauded coordination between the Ministry of Finance and the VCCI and the General Department of Vietnam Customs in conducting the survey and releasing its outcomes. The USAID wishes to continue its cooperation with the Vietnamese agencies to tighten the links between the Government and the private sector to consolidate the policy making and law enforcement in the time ahead, she said./. HSBC points out three challenges for Vietnam’s economy in H2 Ngo Dang Khoa, country director of foreign exchange and capital markets at HSBC Vietnam, has suggested three challenges that the Vietnamese economy would face in the second half of this year. HBSC has recently lowered its economic growth forecast for Vietnam this year from 6.6% to 6.1% following the fourth wave of COVID-19, which is the worst outbreak since the start of the pandemic. Regarding the macro economy, the latest outbreak has caused disruptions in supply chains and would affect the sustainable recovery of the Vietnamese economy in the long term. “With the closure of industrial parks and a long period of social distancing, Vietnam’s economic growth will definitely face many challenges in the third quarter and the second half of 2021 as a whole,” he said. Social distancing measures to curb the spread of the coronavirus have also affected the consumption outlook and the recovery of the services and tourism industries. Besides, the new variants of COVID-19 and the slow vaccination progress would delay the reopening of borders to foreign investors and tourists. “Timely fiscal and monetary policies are needed to help businesses and citizens overcome difficulties,” he suggested. In terms of the exchange rate, it would be hard to maintain a stable VND-US$ exchange rate in the second half given Vietnam’s trade deficit, inflation worries and the possible rise in US interest rates. Khoa predicted the exchange rate to be VND23,100 per dollar by the end of this year. According to Khoa, unlike Western countries, Vietnam and other Asian countries have yet to see inflationary pressure. However, if prices continue to increase, the State Bank of Vietnam might have to raise interest rates. He suggested that Vietnam should not increase interest rates too early or too quickly as the economy is severely affected by the pandemic. Despite many challenges, HSBC still forecast a positive outlook for the Vietnamese economy in 2022 thanks to its strong motivation for economic growth. The bank has revised upward its forecast for Vietnam’s economic growth next year to 6.8% from the previous 6.5%. “Once the pandemic is brought under control, Vietnam will benefit from strong recovery driven by technology development and foreign direct investment, becoming one of the most potential countries in the region,” Khoa concluded. More long-term support for COVID-hit business needed: VCCI The statement was submitted as part of the two proposals submitted by the VCCI to the Ministry of Planning and Investment (MPI)’s to promote the Vietnamese economy post-pandemic. The second proposal was for policies and recommendations that could be enacted immediately. Due to the extent of the spread of COVID-19 in the most recent outbreak, Vietnam needs to move quickly to a new stage of effective pandemic prevention that includes mechanisms for safe, continuous production. The VCCI has proposed legal regulations for businesses, related to pandemic prevention measures, be made available as soon as possible. This will ensure businesses have ample time to prepare. Detailed regulations will also help firms be proactive in enacting continuity plans, thereby minimising the risk of supply and manufacturing chain disruption. Businesses are currently facing many difficulties due to the additional costs of COVID-19 prevention as well as a decrease in cash flow due to a smaller market. At the same time, they have been under pressure to increase production. Ministries should do a better job of disseminating support policies available to businesses. In particular, there should be specific, detailed and complete instructions on the procedures and processes necessary to access support presented in a simple and easy way. VCCI said, over the long term, prioritising the implementation of macroeconomic stability and getting control over the pandemic are two key goals in 2021 that will create a solid growth foundation for the economy and businesses. It proposed the MPI to develop policies to create more favourable conditions for Vietnamese private enterprises to survive and get ahead after the COVID-19, especially in innovation, training of high-quality human resources. The fourth wave of the COVID-19 from April has quickly spread to provinces and cities, including the largest economic centres in the country such as HCM City and Hanoi, causing many economic activities to come to a standstill. Quick calculations from industry associations show that the goods output of key industrial areas in the north, specifically in Bac Ninh, Bac Giang and Vinh Phuc, may decrease by 50 per cent due to the influence of the pandemic, leading to a serious decrease in the value of transport, logistics and export chains. VCCI proposed that the Government should issue policy packages to support businesses to recover and expand business investment for the new period 2021-25. The small and medium enterprise (SMEs) development fund and the credit guarantee fund for SMEs need to have more flexible policies in the upcoming time. VinaCapital funds report high growth VinaCapital VN100 ETF reported a return of 38.5 per cent and VEOF and VIBF ranked among the top three performers in their respective categories with returns of 39.1 per cent and 26.6 per cent. As of June 30 the three funds had assets under management of over VND855 billion (US$37.2 million) and nearly 6,000 subscribers. VinaCapital VN100 ETF was established a year ago and replicates the VN100 Index, which is comprised of the 100 leading stocks listed on the Ho Chi Minh Stock Exchange (HOSE). It is traded on HOSE under the ticker FUEVN100. Over 80 per cent of the fund’s assets are invested in the financial, real estate, consumer staples, and materials sectors. The top holdings are Hoa Phat (HPG), Vingroup (VIC), Techcombank (TCB), VP Bank (VPB), and Vinhomes (VHM). Launched in July 2014, VEOF is one of VinaCapital’s longest established open-ended funds. It invests in large and mid-cap companies with the growth potential to earn higher profits than the VN-Index. VIBF is a two-year-old open–ended balanced fund that combines bonds and listed stocks. Brook Taylor, CEO of VinaCapital Fund Management Joint Stock Company, said, “After just one year, the VinaCapital VN100 ETF has delivered on our expectations that the fund would mirror the performance of the VN-Index better than any other ETF currently on offer in Viet Nam. “The ETF, as well as VEOF and VIBF offer local and foreign investors exposure to a range of growth stocks that are positioned to benefit from Viet Nam’s continued macroeconomic stability, rising corporate profits, and positive growth of the stock market, which could see a number of new listings in the year ahead as the equitisation process of State-owned enterprises accelerates as planned. “Viet Nam [was] one of the rarest countries in the world with positive GDP growth in 2020 (+2.9 per cent) which continued into the first half of 2021 (+5.6 per cent), boosting the confidence of domestic and foreign investors. As a result, Viet Nam’s stock market has become one of the best growth markets in Asia, increasing by 15 per cent in 2020 and 27.6 per cent in the first six months of 2021.” Export of agricultural, forestry and fishery products brightening in the first half Despite the pandemic, the export value of agricultural, forestry, and fishery products in the first half of the year reached $24 billion, a rise of 28.2 per cent on-year. According to the Ministry of Agricultural and Rural Development (MARD), despite being hit by the COVID-19 pandemic, the total export turnover of agri-forestry-fishery products in the first half of the year soared and surpassed the target. Of this, the export value of agricultural products (rubber, tea, pepper, fruit, wood products) was $10.4 billion, up 13.3 per cent. Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetables Association, confirmed that the export value of fruits in the first half increased by 17.4 per cent on-year to $2.36 billion with numerous fruits having cracked open "difficult" markets in addition to China. "The export turnover of fruit in the first half has surpassed 2020. Despite the pandemic, lychee still entered Singapore, the EU, Malaysia, Germany, Thailand, Cambodia, France, and the Czech Republic, in addition to China," Nguyen said, adding that the domestic consumption of fruit also rose significantly, thanks to the cooperation of a variety of businesses in the supply chain. Bac Giang Department of Industry and Trade reported that the consumption of lychee reached impressive levels this year. Year-to-date by July 1, 213,765 tonnes of lychee were sold in the province, a rise of 130 per cent on-year. Besides lychee, the consumption of plum, longan, and dragon fruit reported good results both in quantity and price in the first half. Additionally, seafood exports recovered well, especially shrimp and catfish, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). The MARD reported that seafood exports reached $4.05 billion in the first half, an increase of 12.5 per cent on-year. While the export volume of rice did not increase by much, prices were getting higher. This has been beneficial for Vietnamese producers as the demand for rice and foodstuff has been increasing, especially in China and South Korea. Some businesses have been receiving export contracts even for the next quarters. There are four major markets – China, the United States, Japan, and South Korea – importing agricultural, forestry, and fishery products of Vietnam, and most of them have maintained positive growth. Specifically, the export turnover to the US, the largest market in the first half, was $6.7 billion, a rise of 59.8 per cent on-year, and making up 27.9 per cent of the total export turnover. The export value to China, the second-largest export market, was $4.75 billion, a rise of 32.1 per cent on-year and 19.6 per cent of the total. Industrial production shores up post-pandemic prospects Despite enormous difficulties remaining due to the COVID-19 crisis causing disruptions in supply chains, domestic industrial production has continued bouncing back, promising a brighter picture for economic growth. Having been operating in Hanoi for 13 years, Japanese-backed Walcom Industry in Hanoi last December had to halt imports of components and materials from Japan and a number of other overseas markets where production and supply chains were disrupted by COVID-19. However, since this March, imports have been resumed as the foreign partners recovered and boosted exports. Walcom Industry, manufacturing vehicle components, is also increasing exports to Japan, China, and elsewhere in Southeast Asia. “The company’s import volume has risen 10 per cent since March, and we are planning to open a new workshop to expand production,” said a Walcom Industry Vietnam representative. “The company’s six-month revenue is estimated to increase by 5 per cent on-year, and the rate may be the same for the whole year.” Also based in Hanoi, Japanese-invested FCC Vietnam Co., Ltd. is expected to import six new lathes valued at over $1 million for one of its workshops by late September this year, meaning another about 25 new workers will be needed. “The company has recently imported two lathes as it is expanding production. Over recent months, workers like me have become much busier as FCC Vietnam has landed many new orders from American partners who want to buy new products from the company,” worker Do Hong Minh told VIR. “More work means more money and I’m able to save for my upcoming wedding. My average monthly income has climbed by another VND1 million ($44), in comparison to that made in December.” FCC Vietnam boasts 1,200 workers for three big workshops manufacturing vehicle clutches, and other spare parts of the automotive sector to supply for Yamaha, Suzuki, and Honda. The products are also exported to the US. Previously, the health crisis forced FCC Vietnam to shrink production costs, with over 200 workers facing a layoff with 70 per cent of monthly salary. At present, all workers are working at full speed, with an increase in income. These two firms are among many increasing imports for their manufacturing production in Vietnam over the past months. Under a recent survey by Japan’s Pasona Group Inc, about 57 per cent of Japanese businesses in Vietnam are planning to increase performance in the nation, with 43 per cent saying they had or will have a plan to expand their offices in the country. According to the General Statistics Office (GSO), Japanese firms have greatly contributed to domestic industrial production, which is gradually improving because more and more materials and components are imported into Vietnam for production, and not for direct consumption. The GSO reported that Vietnam’s import turnover, mostly for domestic production, hit $159.1 billion in the first half of this year, up 36.1 per cent on-year. In which, the figure was $75.31 billion in the first quarter, up 26.3 per cent, and $83.5 billion in the second quarter, up 45.7 per cent. Meanwhile, the country’s six-month export turnover reached $157.63 billion, up 28.4 per cent on-year. In which, the figure was $77.34 billion in the first three months, up 22 per cent, and $79.23 billion in the second quarter, up 33.5 per cent. “Amid the ongoing pandemic, business and production activities of enterprises in general and of manufacturing and processing firms in particular in the second quarter have shown positive signals,” said GSO general director Nguyen Thi Huong. The GSO reported that after growing 6.29 per cent on-year in the first quarter, industrial production in the second quarter of 2021 saw positive growth of 11.45 per cent as compared to that of only 1.1 per cent in the same period last year. In the first half of this year, the rate was 8.91 per cent on-year, in which the growth rate of the manufacturing and processing sector – which creates 80 per cent of industrial growth – climbed 11.42 per cent as compared to that of 5.06 per cent in the corresponding period of 2020. Under a recent GSO survey of nearly 5,700 manufacturing and processing enterprises nationwide, 68 per cent of respondents said their second-quarter performance has been better than that in the first quarter. The businesses’ confidence in the government’s direction of the economy has risen significantly, with 78 per cent of respondents forecasting that their performance will be better in the third quarter than in the second quarter. Only 22 per cent predicting that they will be more difficult in the third quarter. Moreover, up to 70 per cent of enterprises said their orders increased in the second quarter as compared to those in the first quarter. Some 79 per cent of surveyed firms expected that their orders will be increased and maintained in the third quarter. About 83 per cent predicted their new orders in the second half of 2021 will be increased and maintained. Meanwhile, Minh from FCC Vietnam also told VIR that he felt optimistic over his work, and believed in the economy’s prospects. “Our company is expanding its workshops, meaning we will have more work to do,” Minh said. “My sister is also working for a foreign company in Hanoi producing garments. She is working at full speed, with an income in the first half of 2021 at VND1.5 million ($65) higher than that in the same period last year.” According to the GSO’s survey, the respondents in the garment sector said their company’s orders increased 36.1 per cent in the second quarter of 2021 as compared to the first three months. In a specific case, Nguyen Viet Thang, director of No.26 JSC, said that the company is expanding operations, and in need of new workers. “We currently have over 1,000 workers and is recruiting more,” Thang explained. “All products are locally consumed and exported.” The GSO reported that in the first half of 2021, Vietnam’s total garment and textile export turnover hit $15.2 billion, up 14.9 per cent on-year. Figures from the GSO also showed that in the first half of 2021, the economy witnessed 67,100 businesses newly established, registered at VND942.6 trillion ($41 billion) and employing 484.3 new labourers, up 8.1 per cent in the number of businesses, and 34.3 per cent in registered capital. However, also in this period, 60,300 businesses halted operations and awaited disbandment, up 24.9 per cent on-year. The government has enacted Resolution No.63/NQ-CP on boosting economic growth, disbursement of public investment, and sustainable exports in the remaining months of 2021 and into 2022. The resolution focused on many varying solutions such as combating the pandemic and facilitating socioeconomic development; maintaining macroeconomic stability and ensuring major balances of the economy; fostering administrative reform and digital transformation; removing institutional barriers; speeding up public investment disbursement; boosting import and export towards a harmonious and sustainable trade balance; and also supporting both individuals and businesses, among many others. Policy recommendations from the International Monetary Fund Given Vietnam’s overall successful containment of COVID-19, the near-term policy imperative is to limit permanent scarring and support a robust recovery. Over time, policies should centre on achieving sustained, inclusive, and greener growth. Provide fiscal support and improve execution: Available fiscal space should be flexibly deployed to support vulnerable households and distressed, but viable firms, with improvement of execution as a priority. Fiscal support should remain in place until the recovery is cemented, with the emphasis thereafter pivoting to revenue mobilisation for financing productive and green infrastructure investment and strengthening social protection systems. Maintain monetary support and modernise the policy framework: Monetary policy should remain supportive while allowing for greater two-way exchange rate flexibility. Reforms to modernise the monetary policy framework and improve policy transmission should continue. Safeguard financial stability: Corporate sector support should be targeted and timebound, and debt restructuring mechanisms strengthened. Exceptional policy support should be gradually phased out and financial stability risks closely monitored. Fragilities in the banking system should be addressed, including rebuilding capital buffers and facilitating Basel II adoption once the crisis abates. Boost productivity and lift growth potential: Decisive structural reforms are needed to make the most of Vietnam’s considerable potential, with priority given to ensuring a level playing field for small- and medium-sized enterprises, lowering the regulatory burden and reducing corruption, alleviating labour skill mismatches, and tackling informality. Businesses hopes for fully online administrative procedures Businesses have expressed their hope that customs agencies and relevant ministries and sectors will further simplify administrative procedures, which, they suggested, should be completely handled online, according to a survey. The survey was conducted in 2020 among 3,657 firms operating in import-export, production, outsourcing, processing and logistics, among others, to find out their satisfaction with import-export administrative procedures. Its results were announced at an online workshop held by the Vietnam Chamber of Commerce and Industry (VCCI) and the General Department of Vietnam Customs, with the support of the US Agency for International Development (USAID), in Hanoi on July 15. VCCI Chairman Vu Tien Loc said Vietnam's export and import have still made noted achievements despite the impact of COVID-19 and the disrupted global trade as from 2020. The country's total export-import value last year reached US$545.3 billion, up 5.3 percent year-on-year, he cited figures from the General Statistics Office (GSO). In the first half of this year, the number stood at US$316.73 billion, a rise of 32.2 percent from the same period last year. The figures reflect great efforts of domestic firms amidst a range of challenges caused by the pandemic, Loc stressed. The interviewed businesses suggested increasing publicity and transparency in the implementation of administrative procedures, upgrading the infrastructure system, and raising the capacity of officials. Customs agencies and relevant ministries and sectors should better coordinate in this regard to create optimal conditions for enterprises to complete export-import procedures, they said. According to Hoang Viet Cuong, deputy head of the General Department of Vietnam Customs, the businesses better evaluated the information provided by customs agencies, and were more satisfied with agencies' response to their concern. Dau Anh Tuan, head of the VCCI's Legal Department, said the businesses lauded reforms in the customs sector and its improved service quality, notably positive changes in the inspection and management work. They also suggested better coordination between customs agencies and concerned ministries and sectors, and stressed the need to ensure consistency and stability in building and realising policies and laws. USAID/Vietnam Mission Director Ann Marie Yastishock applauded coordination between the Ministry of Finance and the VCCI and the General Department of Vietnam Customs in conducting the survey and releasing its outcomes. The USAID wishes to continue its cooperation with the Vietnamese agencies to tighten the links between the Government and the private sector to consolidate the policy making and law enforcement in the time ahead, she said. Economic growth continues to backed by FDI, but risks remain The Vietnamese economy saw a relatively positive growth rate in the first six months of this year, with a rise in foreign investment as one of the key pillars in defiance of concerns over the fourth wave of COVID-19. According to the General Statistics Office (GSO), despite COVID-19, the Vietnamese economy in general has been bouncing back, with a year-year growth rate of 3.68, 0.39, 2.69, and 4.48% in the first quarter, second, third, and fourth quarter of 2020, respectively. In the first and second quarter of 2021, the rate hit 4.48 and 6.61% year-on-year. Last November, the National Assembly set an economic growth target of 6% for 2021. In January, the government set a target of about 6.5% for the entire year. The Ministry of Planning and Investment (MPI) has reported its two economic growth scenarios for the second half of this year to the government. In the first scenario, so as to hit the growth target of 6% for 2021, the economy must grow by 6.2% in the third quarter, and 6.5% in the fourth quarter. In the second scenario, for the economy to climb 6.5% for 2021, the economy must increase 7% in the third quarter, and 7.5% in the fourth quarter. “Based on these two scenarios, localities must also devise their own growth scenarios for deployment. We must be patient in implementing our dual targets of economic development and COVID-19 containment at the same time, though it is a very difficult choice,” said Prime Minister Pham Minh Chinh at the government’s recent meeting with localities nationwide on six-month economic development. One of the key drivers of Vietnam’s economic growth over recent years has been the development of the manufacturing and processing industries which create 80% of industrial growth. The GSO report that after growing 6.29% on-year in the first quarter, industrial production in the second quarter of 2021 saw positive growth of 11.45% as compared to only 1.1% in the same period last year. In the first half of this year, the rate was 8.91% on-year, of which the growth rate of the manufacturing and processing sector – which creates 80% of industrial growth – climbed 11.42% as compared to 5.06% in the corresponding period of 2020. Also in the first two quarters, agro-forestry-fishery made up 12.15%, industry and construction 37.61%, and services 41.13%. The government has just ordered ministries, agencies, and localities to review and remove all obstructions for businesses and investors to perform their business and investment activities, with specific tasks needed to be implemented immediately. All results must be reported to the government. According to the MPI, one of the key contributors to Vietnam’s industrial production in particular and the country’s economic growth in general is foreign investment, with foreign-invested enterprises (FIEs) continuing to consider the nation a good investment location in a region where many nations are being ravaged by the health crisis. In January-June 20, 2021, foreign investors registered US$15.27 billion in Vietnam, 97.4% of that of the corresponding period last year, according to the MPI. Of which, US$9.55 billion was in 804 newly-licensed projects, a year-on-year rise of 13.2%. Meanwhile, US$4.12 billion was added into 460 operational projects, up 10.6% year-on-year. Foreign investors also used US$1.61 billion for capital contribution and share acquisition in Vietnam. Also during January-June 20, 2021, FDI disbursement hit US$9.24 billion, up 6.8% year-on-year. Among the 18 sectors with FDI, manufacturing-processing wooed the highest registered FDI volume at US$6.98 billion or 45.7% of the total registered investment, followed by electricity production and distribution with US$5.34 billion or almost 35% of the total. As of June 20, 2021, Vietnam was home to 33,787 foreign-invested projects registered at US$397.89 billion, of which US$241.1 billion, or 60%, had already been disbursed. Similar to last year, Asian nations represented the lion’s share of FDI into Vietnam. Singapore led the list, accounting for almost 36.9% of total investment capital, a year-on-year increase of 3.6%, followed by Japan with 16% and the Republic of Korea, responsible for nearly 13.4%, a year-on-year climb of 43.6%. In terms of foreign-invested projects, the Republic of Korea topped the list, followed by Japan, Singapore, Taiwan, and Hong Kong. FIEs have also made great contributions to Vietnam’s trade picture. In the first six months of this year, despite the pandemic and factory shutdowns, FIEs’ export revenue climbed 32.2% year-on-year to US$116 billion including crude oil exports being responsible for 74.1% of the nation’s total export turnover. Without crude oil exports, FIEs’ export turnover hit US$115.3 billion, a year-on-year rise of 32.6%. Exports to the US in the first half of 2021 increased 42.6% to US$44.9 billion, contributing to GDP gains. Vietnam’s overall exports swelled 28.4% to US$157.63 billion. While smartphones exports were strong, exports of garments, shoes, and other goods to the EU also grew thanks to Vietnam’s free trade agreements including the recently implemented EU-Vietnam Free Trade Agreement. Meanwhile, FIEs’ total import turnover in the first half of this year reached US$102.6 billion, up 38.7% year-on-year. As a result, FIEs created a trade surplus of US$13.4 billion including revenue from crude oil exports. In fact, GDP and FDI figures have been well maintained, but challenges remain as the fourth wave of the epidemic has been disrupting economic activities. Despite these figures, investors are facing challenges due to the COVID-19 pandemic, border closures, strict work permit requirements, and quarantine measures as well as factory shutdowns that have been hurting both business and production. According to the MPI, mergers and acquisitions (M&As) continue to be affected due to travel limitations as investors are unable to travel, hold meetings physically and inspect sites and businesses. In the first half of this year, Vietnam saw a total of 1,855 contribution capital and stake purchase deals valued at US$1.61 billion, down 55% in quantity and 54.3% in quality year-on-year. The Vietnamese government has constantly promoted the dual task of COVID-19 containment and socioeconomic development by maintaining production where possible. However, this will be a challenge. While cases in the northern provinces of Bac Giang and Bac Ninh are falling, Ho Chi Minh City and many provinces in the Mekong Delta are still reporting a high number of cases every day while implementing one of the strictest lockdowns since last year. While the government has now prioritised Ho Chi Minh City residents for vaccines, just over 3% of the country’s population is vaccinated. If vaccine procurement lags, this could dent economic growth and prevent the country from a full-scale reopening of the economy. Trade, transport, and tourism activities continue to be significantly affected by the pandemic. IHS Markit notes that while Vietnam was able to control the pandemic last year, the latest flare-up makes the country vulnerable to a protracted wave. While GDP grew and exports improved, the fourth wave led to a decline in manufacturing activity in June. The Purchasing Manufacturers Index (PMI) shows a decline to 44.1 in June from 53.1 in May (a score of 50 or more indicates expansion). VND11.5 trillion needed to widen southern expressway section Some VND11.5 trillion is needed to widen a 24-kilometer section of the HCMC-Long Thanh-Dau Giay Expressway connecting HCMC and Long Thanh District in Dong Nai Province to eight lanes from the current four lanes, according to a preliminary report for the project. In a report submitted to the Ministry of Transport, the project consultant Transport Engineering and Design Inc. South (Tedi South) proposed expanding the An Phu-Long Thanh section running from Ba Dat Bridge in An Phu Ward of HCMC’s Thu Duc City to an intersection with the Bien Hoa-Vung Tau Expressway in Long Thanh District, Dong Nai Province. Of this, a 4.5-kilometer section from An Phu to Ring Road No. 2 will be widened by 4.75 meters each side so that the section’s width will reach 36 meters. The section will have a design speed of 100 kilometers per hour, Tuoi Tre Online newspaper reported. Meanwhile, a 20-kilometer section from Ring Road No. 2 to the intersection with the Bien Hoa-Vung Tau Expressway will be expanded by 7.5 meters each side to increase the section’s width to 42.5 meters and will have a design speed of 120 kilometers per hour. Tedi South also suggested building the Long Thanh 2 bridge on the same scale as the existing Long Thanh Bridge. Of the total estimated capital, VND8.3 trillion will be used for construction, VND405 billion for site clearance and the remaining for backup and consulting and project management services. The expressway expansion project will be executed from 2021 to 2025. The first phase of the HCMC-Long Thanh-Dau Giay Expressway with four lanes was put into operation in 2015. It has been overloaded, especially on holidays. The 2019 statistics indicated that the number of vehicles on a section of the expressway from Long Phuoc Ward of HCMC to the National Highway 51 reached 52,410 passenger car units (PCU) daily, while the number rose to some 57,000 PCU on holidays and weekends. Meanwhile, it was designed to serve 44,000 units per day. Therefore, the Ministry of Transport in late 2019 directed the expansion of the expressway to meet the travel demand, especially once the Long Thanh International Airport is in place, serving the socioeconomic development and ensuring national defense and security in the southern key economic zone. Ministry proposes raising duties on steel exports, reducing tariffs on imports As the steel price surge has affected many public investment projects, the Ministry of Finance has suggested raising duties on steel exports and reducing taxes on steel imports. In a draft decree amending Decree 57 on preferential import-export tariffs, the ministry stated that the sharp increase in the local steel prices was mainly due to the high prices of materials for steel production, while these materials have been mainly imported, the local media reported. To reduce the steel prices, the Ministry of Finance has proposed the Government increase the duties on steel billet exports from 0% to 5% to help stabilize the supply of steel billets for the domestic market and the steel prices, limit steel exports and ensure the sustainable development of the steel sector. Meanwhile, some steel products have been subject to high import taxes, at 15%-25%, for a long time. Therefore, the duties on steel imports which are now subject to a 15% tax rate should be cut to 10% and those subject to 20% or 25% tax rates to 15% to reduce the prices of materials for steel production. The reduction of these import tariffs will see the State budget revenue drop, but it is necessary. The reduced figure will not be too high due to the low demand for steel imports. The tariff reduction will encourage domestic enterprises to invest in technologies to reduce the prices of their products and improve their competitiveness with imported steel. Live pig prices lowest in two years Due to transport disruptions caused by the Covid-19 pandemic and the closure of a number of traditional markets, live pig prices across the country have dropped to VND52,000-57,000 per kilogram, the lowest since mid-2019. Live pig prices in the northern cities and provinces currently range from VND56,000 per kilogram in Hanoi and Tuyen Quang to VND59,000 per kilogram in Thai Nguyen, Yen Bai, Lao Cai, Nam Dinh, Thai Binh, Vinh Phuc and Ninh Binh. In the Central Highlands and central region, live pig prices are VND55,000-56,000 per kilogram. Live pig prices are the lowest in the southern cities and provinces, ranging from VND52,000 to VND57,000 per kilogram. In Dong Nai Province, the prices are the lowest in the country, at VND52,000. Ha, a live pig trader in Dong Nai, said traders are facing many difficulties to transport live pigs to other provinces as the drivers have to present a negative test certificate for Covid-19. “If transport disruptions continue, live pig prices would fall to VND52,000 per kilogram in the coming time,” he said. According to Nguyen Tri Cong, chairman of the Dong Nai Livestock Association, wholesale markets and major distribution centers in HCMC have been suspended, affecting the consumption of pigs. “While live pig prices have dropped sharply, the production cost has increased significantly. The cost to raise pigs is estimated at VND60,000 per kilogram. With the current live pig prices, the farmers are suffering heavy losses,” he said. The Dong Nai Livestock Association has written to the provincial government and related departments proposing opening meat stores in Bien Hoa City to increase the consumption of live pigs and offer pork at reasonable prices for the locals. The Agro Processing and Market Development Authority (Agrotrade) said live pig prices in the southern cities and provinces, which are currently hit the hardest by the fourth Covid-19 wave, have seen the steepest drop. Agrotrade forecast live pig prices would rebound slightly once transportation issues are resolved. Although live pig prices have fallen sharply, pork prices at meat stores, minimarts, wet markets and supermarkets remain high due to an increase in related costs, especially the cost of transport. Vietnam may consider licensing new airlines after 2022 The Vietnamese Government should not consider licensing new airlines at the moment, (including air freight carriers) to avoid supply-demand imbalance and undermining the sustainable development of the aviation industry in the context of the Covid-19 pandemic, according to the Vietnamese Ministry of Transport’s latest proposal to the Prime Minister. The proposal came from the request of the Government for more concrete guidance on building and appraising the application for setting up IPP Air Cargo JSC, an air transport business, last month. The Ministry of Transport (MoT) will continue monitoring the market situation and the impact of the pandemic and report to the Prime Minister for consideration and decision on the possibility of establishing a new airline when the aviation market may recover by 2022, according to the latest official letter signed by Le Anh Tuan, Deputy Minister of Transport. The ministry emphasized, since the Covid-19 pandemic broke out, local airlines have suffered serious damage. Currently, Vietnamese airlines including Vietnam Airlines, Vietjet Air, Bamboo Airways, Pacific Airlines, and Vietravel Airlines are conducting freight service, including carriage of goods in the passenger cabin, in order to generate additional revenue to compensate for damage caused by the Covid-19 pandemic. As of June 28, these airlines have repurposed nine-passenger aircraft for cargo flights by removing passenger seats. In addition, some other aircraft are allowed to carry goods in the cabin without having to remove seats provided that they do not carry passengers on the same flight. In a last May’s document sent to the Prime Minister, the MoT said the establishment of a new airline should only be considered after the aviation market recovers (expected 2022) and received the acceptance of Deputy Prime Minister Trinh Dinh Dung. According to the ministry, in the short term, the aviation industry needs to prioritize recovering the domestic and international air transport market and removing difficulties for businesses in the sector. Vietnam seeks Finland’s ratification of EVIPA Vietnam expected Finland to soon ratify the EU-Vietnam Investment Protection Agreement (EVIPA) and encourage Finnish firms to expand investment activities in the country in priority fields, including hi-tech, telecommunications, renewables, and environment. Deputy Prime Minister Pham Minh Binh made the view in a meeting today [July 15] with the outgoing Finnish Ambassador to Vietnam Kari Kahiluoto. Given the strong progress of bilateral relations, Minh called for greater cooperation between the two countries to tap into the potential of the EU-Vietnam Free Trade Agreement (EVFTA), which took effect on August 1, 2020, as well as ratifying the EVIPA. Minh requested Finland to continue supporting the Vietnam-EU comprehensive partnership. “For its part, Vietnam is willing to serve as a bridge to promote relations between Finland and ASEAN,” he continued. According to Minh, both Vietnam and Finland have signed a framework agreement for public projects in Vietnam to access concessional loans from the Nordic country’s Public Sector Investment Facility (PIF) scheme, saying this would contribute to Vietnam’s socio-economic development. Meanwhile, educational cooperation between the two countries has seen strong progress, creating favorable conditions for Vietnamese students studying in Finland. “Finnish educational model is being adopted at the Vietnam-Finland International School under Ton Duc Thang University,” he informed. At the meeting, Kahiluoto informed the Finnish government has approved a report evaluating Vietnam’s transitional process in June 2021, which marks the shift in cooperation mechanism between the two countries from aid support to fair cooperation with mutual benefits. Vietnam eyes formation of large scale corporations in retail sector by 2030 The Vietnamese government continues to encourage the formation of large-scale corporations in retail, aiming to strengthen the linkage between production zones and consumer markets. This move was revealed in the government’s decision No.1163/QD-TTg on Vietnam’s strategy to boost domestic trade until 2030, with a vision to 2045. Under this strategy, Vietnam expects to set up sustainable supply chains in the country that could ensure effective implementation of regulations on food safety and quality, origin tracing, and environmentally friendly. “Major corporations that serve as market-leading players would create positive spillover effects to those of smaller scale and reduce the market dependence on foreign firms or multinationals,” stated the decision. To realize this goal, the government identifies the necessity to train the high-quality workforce in trade to meet the growing demand of the global trade integration process, while transforming domestic trade promotion activities and pushing for investments in the trade infrastructure systems. “State governance in domestic trade would focus on the aspect of ensuring market stabilization, combating trade frauds and violation of consumer rights while respecting market principles,” it added. Meanwhile, the government aims to protect the domestic market via instruments and intervention measures that are in line with international commitments. “The ultimate objective would be to promote modern, rapid, and sustainable development of domestic trade, which could serve as the foundation for domestic production and global economic integration,” stated the decision. In the 2021-2030 period, the added value from domestic trade is expected to grow by an average rate of 9-9.5% per annum, resulting in a contribution of 15-15.5% of the GDP by 2030. Total revenue from retail sales and services would average 13-13.5%. By 2030, revenue from e-commerce is set to make up 10.5-11% of total retail sales and services of the economy, or an expansion of 20-21%; 40-45% of small and medium enterprises operating in trade would take part in major domestic and foreign e-commerce platforms. Social distancing vital for containing pandemic Ho Chi Minh City has now issued Directive 16 to implement strict social distancing in public places. This is a necessary decision taken by City authorities to ensure that the pandemic remains contained. However, future measures to help people and businesses are unclear. When India implemented social distancing, the international media reported that people were adversely affected. The question now is on how Vietnam plans to live with the Covid-19 pandemic situation for a long period of time. Many scientists and experts in the medical field have strongly recommended adapting to living with the Covid-19 pandemic situation. However, this can only be possible when a majority of the population has been vaccinated and a threshold of community immunity has been reached. In recent months, developed countries have stepped up on vaccination drives. Singapore and Australia now already have a clearer roadmap to survive and live with the Covid-19 situation. The difficulty for Vietnam today is lack of better access to the vaccine. In the early stages of the pandemic in the beginning of 2020, effective preventive anti-pandemic measures made us complacent towards prioritizing the importance of the vaccine. The Ministry of Health was slow in reaching out to vaccine producers, far slower than many other countries. The current amount of vaccines that Vietnam receives are mainly from the COVAX program and the relatively large amount of aid from some countries such as Japan and the United States. Over the last few months, Vietnam has tried diplomacy to improve its vaccine strategy, by reaching out to suppliers and governments of developed countries that have excess vaccine supply, and who could possibly help Vietnam. There has also been a strong move by Vietnam to involve in vaccine production technology to ensure a long-term source of vaccine in the country. The latest data shows that only 4% of the population, or about 3.9 million people in Vietnam, have completed their first dose of the vaccine, while the number of people who have completed their second dose is only 0.2%. Vietnam's goal is to get 150 million doses of the vaccine, enough for 70% of the population, but current agreements are set at only 105 million doses. However, more important is the time to receive this vaccine and deploy it on a larger scale for all the people. When the rate and number of new infections are predicted to increase beyond the capacity of the health system, there is no other way but to strictly follow social distancing rules. The health system, even in rich and developed countries, does not have enough Intensive Care Unit (ICU) beds to accommodate a sudden increase in the number of patients. Maybe many people don't realize it, but an ICU in France comes with a private room and at least five medical staff. The equipment within an ICU is complicated and not everyone knows how to use all these complicated devices. Therefore, there is no other way than to adopt to maximum social distancing measures. At the same time, with the implementation of social distancing, it is necessary to take into account its consequences and look for more functional solutions. Currently, it cannot be estimated how much economic damage will occur as a result of implementation of social distancing every single day that passes in Ho Chi Minh City. This loss will affect the lives of many persons, families, and businesses. When France implemented social distancing for two months, it was estimated that the damage during that time was EUR 120 bn, about EUR 2 bn per day. Britain's social distancing in 2020 also averaged about EUR 800 mn per day. In Australia it was about EUR 63 mn per day, in New South Wales about EUR 90 mn per day, and in Malaysia about EUR 150 mn per day. Perhaps the Ho Chi Minh City government also has a plan to provide support in dire situations on an urgent priority basis. On social network sites we have seen volunteer groups helping in many difficult situations. The spirit of love and compassion in these difficult times has also reawakened in the Vietnamese people. Even as social distancing is implemented, the reorganization of daily life and essential business and production activities also need to be maintained. The first is to ensure that the circulation and distribution of food is kept to a minimum by ensuring supply, prioritizing home delivery, or ordering in advance to be delivered later. Agencies or businesses also need to maintain a minimum number of employees for important work to be done. Take a simple example such as those who work with paperwork, who can't work online, and have to go to the office to complete their shift, and have to also ensure social distancing among a number of people present at the office. Manufacturing plants can still be maintained if the pandemic prevention measures are strictly followed. Another important issue that has received little attention in Vietnam is that of mental health. Social distancing on a weekly basis will negatively affect the psychology of people living in big cities because of narrow spaces and lack of greenery. In developed countries, after a period of separation, people have seen an increase in domestic violence, and the psychology of both adults and children is negatively affected. Some countries have education and propaganda programs specifically for children to help them better understand Covid-19, without causing fear or negative emotions. The implementing of Directive 16 by Ho Chi Minh City authorities at this time is absolutely necessary. It is hoped that the City will quickly recover back to normal and soon stabilize the reorganization of essential services and goods. The relaxation of social distancing can only be done on the strength of the health system, while waiting for the vaccine supply. The budget needs to adjust to overspending in times like this, and if it has to be advanced for the future, this is also perfectly acceptable. Companies set up temporary accommodations for workers to maintain production After Ho Chi Minh City went into social distancing under the Prime Minister's Directive 16 on July 9 and Chairman of the city People’s Committee Nguyen Thanh Phong directed workers to stay on-site for both working and quarantine purposes, many businesses and manufacturers have prepared plans to set up temporary accommodations for their workers to avoid the spread of coronavirus and maintain production. The Ministry of Labor, Invalids and Social Affairs, the Vietnam General Confederation of Labor and the Vietnam Chamber of Commerce and Industry jointly signed a document for both isolation and production in enterprises and business establishments nationwide, said the office of the Ministry of Labor, Invalids and Social Affairs this morning. According to the information provided by the office, Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung, Chairman of the Vietnam General Confederation of Labor Nguyen Dinh Khang and Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) ) Vu Tien Loc have just signed an agreement No. 2242 for both isolation and production in enterprises and business establishments to achieve the Prime Minister’s direction of dual goal preventing the Covid-19 pandemic and promoting socio-economic development. Accordingly, the joint dispatch gave guidance and recommendations for business establishments to achieve the goals of both epidemic prevention and business activities, making sure that workers can work in a safe environment. The Ministry of Labor, Invalids and Social Affairs, the Vietnam General Confederation of Labor and the Vietnam Chamber of Commerce and Industry required business establishments to have isolation camps and continue production while applying preventative measures against the spread of Covid-19. Under the guidance, enterprises eligible for continued production are those who committed to implementing preventative measures against the coronavirus epidemic as well as having a plan to prevent and handle cases of Covid-19. These businesses do not employ workers who are under medical quarantine. moreover, enterprises must have vehicles taking employees from their accommodation to workplace meeting requirements according to decision 2787 issued on June 5, 2021, by the Ministry of Health. Laborers’ test results must be negative for SARS-CoV-2 before they come to the workplace and dormitories during business operation. Additionally, enterprises are asked to implement policies of supporting laborers who stopped working without allowance and other policies as per the government’s Resolution 68 taking effect on July 1, 2021 and the Prime Minister’s decision 23/2021. Along with that, enterprises must update employees’ information including their test results every three days to the competent agencies according to the law. Domestic trade expected to make up over 15% GDP by 2030 The Government sets goal to raise the GDP share of domestic trade to at least 15 percent over the next decade. This is part of the Government’s strategy for domestic trade development through 2030, vision to 2045. The total retail sales of consumer goods and services is expected to increase by 13-13.5 percent annually while e-commerce revenue would account for around 10.5-11 percent of the total retail sales of consumer goods and services. The number of small- and medium-sized enterprises (SMEs) operating in trade is projected to account for 40-45 percent of the total SMEs. Viet Nam’s e-commerce revenue reached US$11.8 billion in 2020, up 18 per cent against last year and accounting for 5.5 per cent of total retail sales, making Viet Nam the only country in Southeast Asia to achieve double-digit growth rate in e-commerce. COVID-19 pandemic is a major boost to e-commerce, prompting many companies to do businesses online, as well as attracting first-time online shoppers./. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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