VIETNAM BUSINESS NEWS MAY 4 16:32 Vietnam enjoys high trade surplus in agricultural, forestry, aquatic exports Total foreign trade in agricultural, forestry and aquatic products hit some 31.8 billion USD in the first four months of 2022, an increase of 7 percent against the same period last year, according to the Ministry of Agriculture and Rural Development. Exports were worth 17.9 billion USD, up 15.6 percent year-on-year, while imports totalled 13.9 billion USD, down 2.3 percent. Vietnam enjoyed a trade surplus of nearly 4 billion USD, 3.2 times higher than a year earlier, the ministry reported. Aquatic exports saw the highest growth during the period, surging 43.7 percent to reach 3.6 billion USD. Shipments of key agricultural and forestry products exceeded 7.4 billion USD and 5.9 billion USD, up 10.5 percent and 4.9 percent, respectively. Meanwhile, those of husbandry products plummeted 19 percent year-on-year to 105.4 million USD. Five export items with revenue exceeding 1 billion USD included coffee, rice, fruits and vegetables, shrimp and timber products. Notably, exports of coffee and shrimp stood at 1.7 billion USD and 1.3 billion USD, a year-on-year surge of 59.4 percent and 38.6 percent, respectively. Export value of tra fish went up 89.6 percent to 894 million USD. The US remained Vietnam’s largest importer with nearly 4.9 billion USD, accounting for 27.3 percent of the market share. Some 68.2 percent of Vietnam’s exports to the US were wood and timber products. China came second with over 3.2 billion USD, representing 18.1 percent of total shipments. Vietnam yields 2.6 million tonnes of aquatic products in four months Vietnam produced over 2.6 million tonnes of aquatic products in the first four months of this year, a year-on-year rise of 2.2 percent, according to the Ministry of Agriculture and Rural Development (MARD). Of the total, its aquaculture output was over 1.36 million tonnes, an increase of 5.3 percent compared to the same period last year while catching nearly 1.2 million tonnes, down 1 percent. In April alone, the country harvested 736,400 tonnes of aquatic products, up 2.6 percent year-on-year. The MARD asked provinces and cities to encourage farmers to raise various aquatic species and change the farming methods to minimise diseases. Localities were requested to focus on marine economic development and push up the implementation of solutions to lift the European Commission’s “yellow card” for illegal, unreported and unregulated (IUU) fishing. Domestic timber key to a sustainable industry Tight timber supply, coupled with transport delays, has been holding back furniture manufacturers, exposing the need for domestic substitution for imported timber. Le Quoc Doanh, Deputy Minister of Agriculture and Rural Development, estimated timber demand between 2017 and 2021 rose from 34.2 to 41 million cubic metres. Domestic timber accounts for 77.4 percent of timber supply and imported timber takes up the rest. As the latter has become more volatile in recent years, he believes Vietnam should step up afforestation to become less dependent on foreign logs, ensuring the stability of the furniture industry. The minister said his ministry had been financially supporting forest owners to boost the coverage of certified forests, notably those certified by the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification, to meet the technical requirements of large furniture importers. The ministry also urged the Vietnam Timber and Forest Product Association (VTFPA) to develop a data system of timber supply and demand to better monitor the market, reducing price uncertainty. Chairman of the VTFPA Do Xuan Lap underlined domestic timber as the key to the sustainable furniture industry. He said that the recent Russian military operations in Ukraine, coupled with a prolonged pandemic, had been pushing up logistic costs and timber prices, putting a strain on furniture manufacturers. Data from the General Department of Customs shows that imported timber prices increased by up to 52 percent in the first three months of this year. He thus called for larger forest coverage and higher timber productivity to promote a self-sufficient timber industry, reducing the dependence on imported timber. The chairman also suggested an official market for forestland transfers and called for favourable policies to encourage more firms to invest in forest plantations to push up timber output. Nguyen Van Dien, director of the ministry's Forestry Production Development Department, noted that Vietnam had 14.68 million hectares of forests by March 2022, of which 2.17 million hectares are special-use forests, 4.68 million hectares are protection forests, and 7.82 million hectares are production forests. Notably, production forests are comprised of 3.69 million hectares of planted forests and 4.13 million hectares of natural forests. Textile - garment sector sees strong growth The Vietnam National Textile and Garment Group (Vinatex) enjoyed a year-in-year surge of 144.2 percent in revenue to over 5.15 trillion VND (224.26 million USD) in the first quarter of 2022, completing 28.5 percent of its target for the whole year. In the first quarter, Vinatex earned a pre-tax profit of 376.7 billion VND (16.4 million USD), equivalent to 173.9 percent of the amount recorded in the same period last year. Growth was seen in both textile and garment industries. Specifically, the textile industry increased 139 percent, while the garment industry rose 167 percent over the same period last year. Vinatex General Director Cao Huu Hieu attributed the growth to the good control of COVID-19, enabling businesses to deliver the orders they received from 2021 and accept more orders, along with stable prices of cottons and labour cost. This year, Vinatex plans to speed up digital transformation to improve its operating efficiency, he said. Vietnam Manufacturing Expo, NEPCON to attract 200 brands The 2022 Vietnam Manufacturing Expo and Vietnam’s Only Exhibition on SMT, Testing Technologies, Equipment and Supporting Industries for Electronics Manufacturing (NEPCON Vietnam 2022) will be held in Hanoi on August 10-12 and September 14-16 respectively. They are expected to attract the participation of nearly 200 brands in the manufacturing and electronics industries from more than 10 countries and territories, including Japan, the US, the Republic of Korea, mainland China, Taiwan, Singapore, Thailand, Germany, and India and others, who will set up international pavilions and remote booths. There will also be a series of customised seminars, technology updates from leading brands around the world and free business consulting sessions under the Business Innovation Zone Project. Offshore wind power sees high development potential The draft National Power Development Plan for the 2021 - 2030 period with a vision to 2045 (PDP VIII) clarifies the roadmap to cut down coal-fueled power and increase renewable energy sources, especially wind and gas power, offering a good chance for offshore wind power to thrive, according to experts. During a recent online conference with localities on finalising the PDP VIII, Deputy Prime Minister Le Van Thanh said that calculations in the plan are optimal. By 2030, total power capacity is forecast to reach 146,000 MW. By 2045, coal-fueled power is expected to contribute only 9.6 percent of the country’s energy sector, while the contribution of solar power is set to reach 50.7 percent. International organisations and experts said Vietnam has great advantages thanks to its long coastline and high potential for wind power, especially offshore wind power, which could reach a similar capacity to Vietnam’s hydropower projects. Mark Hutchinson, Chair of the Southeast Asia Task Force at the Global Wind Energy Council, said that the target of 10GW from offshore wind power is reachable. This will help Vietnam become “safer” against risks of global fuel price fluctuations. Tran Viet Ngai, Chairman of the Vietnam Energy Association, said that in the future, offshore wind power will develop strongly thanks to its advantages over onshore and solar power. According to Mai Duy Thien, Chairman of the Vietnam Clean Energy Association, compared to onshore wind power, offshore wind power is more prominent in quality and stability. Meanwhile, Stuart Livesey Country Director of Copenhagen Offshore Partners (COP) in Vietnam and General Director of the La Gan offshore wind power project said that large-scale offshore wind power projects can generate a significant amount of electricity at a higher availability rate than other forms of onshore renewable energy. He underlined the necessity of upgrading transmission lines, along with specific plans as well as suitable funding for the development of the renewable energy sector. Many banks and financial institutions have already prioritised funding of renewable energy projects, including offshore wind power plans, he noted. Experts held that Vietnam’s commitment to net-zero emissions given at the United Nations Climate Change Conference (COP26) is ambitious but reachable if the country designs suitable legal frameworks and support policies. Consultation session seeks ways to export rice to ASEAN market A consultation session is set to get underway in the Mekong Delta province of An Giang on May 5 in order to seek ways to boost rice exports to the ASEAN market, according to the Vietnam Trade Promotion Agency (Vietrade). During the event, Pham The Cuong, trade counselor of Vietnam in Indonesia, is expected to provide local businesses with information and export opportunities in the Indonesian rice market. Meanwhile, Nguyen Thanh Huy, a representative from the Vietnamese Trade Office in Thailand will share Thailand's rice cultivation and harvesting experience with Vietnamese enterprises. Other Vietnamese trade officials in Laos and Malaysia will put forth several recommendations for businesses when exporting rice to these markets. Among ASEAN countries, the Philippines is a leading consumer of Vietnamese rice, spending over US$1.25 billion last year and US$311.08 million in the first quarter of the year on the products, according to the Ministry of Industry and Trade (MoIT). Apart from the Philippines, Vietnam also ships rice to other regional markets such as Malaysia, Singapore, Indonesia, and Brunei. The MoIT reported that Vietnamese rice exports to Malaysia in January alone rose 163.4% in volume and 156% in value compared to December 2021. Big trade surplus for agro-forestry-fisheries over four months Vietnam enjoyed a trade surplus of approximately US$4billion from agriculture, forestry and fisheries during the opening four months of the year, representing a 3.2 fold-increase over the same period last year, according to the Ministry of Agriculture and Rural Development (MARD). Most notably, the agro-forestry-fisheries sector’s import and export revenue during the reviewed period reached roughly US$31.8 billion, an increase of 7% year on year. Of the figure, exports surged by 15.6% to US$17.9 billion, while imports decreased by 2.3% to some US$13.9 billion. Major agricultural export items soared 10.5% to over US$7.4 billion, while forestry exports increased by 4.9% to approximately US$5.9 billion. Aquatic exports saw a significance rise of 43.7% to roughly US$3.6 billion in value, while livestock products raked in US$105.4 million, representing a decline of 19%. Moreover, the export of production inputs skyrocketed 70.7% to US$883 million, of which the export value of fertilizers reached about US$439 million, representing a 2.9 fold increase compared to last year’s corresponding period. The commodities posting an export value of over US$1 billion each include coffee, rice, vegetables, shrimp, and wood products. Agro-forestry-fishery exports to markets throughout Asia, America, and Europe accounted for 41%, 29.7%, and 12.8% of the market share, respectively, while exports to the African and Oceanian markets made up 1.8% and 1.7% of the market share, respectively. The United States remains the country’s biggest consumer of the products, with export turnover reaching approximately US$4.9 billion, accounting for 27.3% of the market share, followed by China with over US$3.2 billion. Vietnam remains attractive destination for Japanese investors: JETRO chief Vietnam in the eye of Japanese investors is a potential market that boasts factors for steady growth, says Nobuhiko Sasaki, chairman and CEO of the Japan External Trade Organisation – an agency that promotes Japanese trade and investment. The two countries’ ministries, agencies, localities and businesses had signed and exchanged documents of cooperation, especially in new fields such as energy, digital transformation and the environment that shows the investment trend in both countries, he said. The recent development of the Japanese supermarket chain Aeon Mall also shows that Vietnam’s retail market is developing rapidly, even in rural areas, he noted. According to the JETRO executive, trade and investment cooperation between Japan and Vietnam has made progress in recent years. Japan has poured US$64.5 billion into 4,935 investment projects in Vietnam. Both Vietnam and Japan are important trading partners of each other when Vietnam is Japan’s third largest export market and the latter is the former’s fourth largest export market. The number of Japanese companies entering Vietnam is increasing, and the Japan Business Association in Vietnam (JBAV) is now represented by approximately 2,000 Japanese enterprises. Sasaki cited the results of a JETRO-run survey saying 55% of Japanese companies operating in Vietnam have business expansion plans in the next one or two years, the highest rate among Southeast Asian countries. EU represents largest export market for Vietnamese clams The EU is currently the nation’s largest clam export market with Vietnamese clam exports to the bloc increasing sharply amid growing demand and stable production of this product group locally. Most notably, the past year has seen the export of shelled molluscs to the EU market skyrocket by 37% to US$87 million due to clam exports surging by 42% to reach US$78 million. Clams have risen to have the fourth largest seafood export value to the EU market. Of this, clam exports to the three largest markets in the bloc, including Spain, Italy, and Portugal, have all soared by between 38% and 44%. According to a representative of Oxfam Organization in Vietnam, valid Marine Stewardship Council (MSC) certificate is viewed as a passport to ensure the development of safe seafood and is a protective trademark for local seafood products. Therefore, in order to exploit the potential of the export market, along with supporting businesses to effectively approach buyers, Oxfam in Vietnam and the Vietnam Chamber of Commerce and Industry (VCCI) have conveyed messages related to the goal of sustainable clam market development, in line with MSC standards. Cargo through seaports rises 3 per cent in four months
Seaports in the country handled more than 236 million tonnes of cargo during the first four months of 2022, up 3 per cent from the same period last year, according to the Vietnam Maritime Administration (VMA). The volume of container cargo reached about eight million TEUs during the period, up 2 per cent year-on-year. The figure includes 2.8 million TEUs of imports which saw a significant increase of 8 per cent compared to a year earlier. The VMA noted that in April alone, the volume of cargo through seaports totalled 59 million tonnes, up 3 per cent. Container cargo hit some two million TEUs, a hike of 2 per cent from 2020. Several coastal provinces experiencing major growth in cargo volumes comprise northern Quang Ninh (11 per cent), central Quang Nam (19 per cent), southern Dong Nai (8 per cent), and north-central Thanh Hoa (6 per cent). Organic vegetables becoming popular in HCM City
HCM City consumers’ willingness to again spend on organic foods to improve their health after two years of the COVID-19 pandemic is fuelling their development, experts said. Organic foods are ubiquitous at modern retail outlets such as Co.opMart, Tops Market, MM Mega Market, Bach Hoa Xanh, Kingfoodmart, and Satra supermarket systems, and consumers could buy them at reasonable prices, they said. According to market research company Nielsen, more and more consumers want products that are good for their health and do not harm the environment. But companies in the field face many challenges. Thai Nhu Hiep, director of Vinh Hiep Co., Ltd, said: “Organic agricultural products are favoured by global consumers and will be an inevitable requirement for making agriculture sustainable, but organic production in our country faces many difficulties. His company has faced difficulties in expanding the scale of organic farming because productivity and yields are not high, farmers do not have the habit of taking notes about their daily farming activities and their knowledge about organic production remains low, he said further. Inputs such as fertilisers for use in organic production are still not widely available and are expensive. HCM City plans to make urban agriculture modern and sustainable, focusing on restructuring and development of new-style rural areas, Nguyen Ho Hai, deputy secretary of the Party Committee, has said. The city would develop hi-tech and clean agriculture and foster research and use of bio-technology to create high-yield and -quality varieties, he promised. Nguyen Thanh Xuan, chairwoman of the city Farmers Association, said agricultural output last year was worth nearly VND18.6 trillion (US$823 million), an increase of 13.7 per cent from 2020. The city has 113,664 hectare of agricultural lands and around 50,000 people working in the sector. Most of its produce is consumed in the city, while items like ornamental fishes and flowers and spices are also exported. Transport firms up charges amid mounting fuel prices
About 80-90 per cent of fixed-route transport firms have adjusted their fares up by 10-15 per cent to offset mounting fuel costs, according to a Ministry of Transport (MoT) report submitted to the Prime Minister, assessing the impact of higher fuel prices. According to the ministry, fuel prices have increased by VND4,625-7,030 per litre (US$0.2-0.3), or 24.91-39.56 per cent, after six price adjustment periods since early 2022. Due to the price hikes, fuel costs have grown to an enormous proportion of the total costs of roadway transport firms, accounting for 40-45 per cent of their bills. The firms had no choice but to seek fare rises. The situation is not better for airlines, whose fuel costs account for 39.5 per cent of their total costs. The MoT estimated that airline fuel costs in April climbed by 84 per cent compared to September 2015, effectively eroding their profitability. The Civil Aviation Authority of Vietnam has sent an appeal to the MoT, requesting adjustments upward on ceiling airfares to help airlines to recover. Meanwhile, railway firms have decided to keep their fares unchanged to attract more passengers and stick to socio-economic targets set by railway authorities. Rail freight rates rose slightly by 3-5 per cent. A few shipping lines have begun to collect fuel surcharges since March to cover higher costs, whereas others have not hiked their fares. Export drive catering to turnover targets The Ministry of Agriculture and Rural Development (MARD) is eager to work with New Zealand to foster agro-product exports and learn experience to build brands for agro-products. Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said, “Vietnam expects to receive technology transfer from New Zealand – a country having developed agriculture to modernise domestic agriculture. Besides that, we want to learn experience to build the brand for the dragon fruit product like the way New Zealand succeeded in creating a brand for kiwi fruit.” At the second New Zealand-Vietnam Agricultural Dialogue organised in early April, chief executive of the New Zealand Ministry for Primary Industries Ray Smith, and Deputy Minister Doanh affirmed that more solutions are needed to realise the goal of achieving a bilateral trade turnover of $2 billion by 2024. Vietnamese relevant ministries have also coordinated in organising many seminars to connect Vietnamese agricultural exporters with overseas markets. They discussed supply and demand issues, legal factors in export activities, consumer psychology, and local culture so that Vietnamese producers and exporters can have a comprehensive view of the international markets in order to effectively conquer this market with all its potential and value. The MARD, in collaboration with the State Committee on Overseas Vietnamese under the Ministry of Foreign Affairs, connects with the overseas Vietnamese community to create a bridge to bring Vietnamese agricultural products higher and further in the global value chain. Minister of Agriculture and Rural Development Le Minh Hoan said, “At present, 20-30 per cent of domestic agricultural products go through processing for export. Meanwhile, in Taiwan, nearly 80 per cent of processed agro-products are sold on the market. We need to step up processing, which creates very high added value and benefits for producers.” Currently, there are 7,500 industrial-scale agricultural, forestry, and fishery processing enterprises in the whole country associated with exports, and tens of thousands of small-scale processing establishments and households on top of that. It is estimated that each year the sector has the ability to process and preserve about 120 million tonnes of related raw materials. Shinhan Financial Group acquires 10 per cent stake in Vietnam’s ecommerce platform Tiki With Tiki as its first strategic partner in Vietnam, Shinhan Financial Group from South Korea is looking to develop its digital capabilities beyond financial services. Shinhan Financial Group – South Korea's second-largest banking behemoth – said on May 2 that it has agreed to acquire a 10 per cent interest in Vietnam’s e-commerce player Tiki, making it the company’s third-largest stakeholder. The deal fee remains unknown, according to Kedglobal. Shinhan Bank, which is the largest foreign lender in Vietnam in terms of assets, will acquire a 7 per cent share in Tiki. Its affiliate Shinhan Card will be in charge of the remaining 3 per cent. Sovico Group ties up with JERA Co., Inc. to explore opportunities to supply LNG Sovico Corporation has signed a cooperation agreement with JERA to evaluate the potential of supplying liquefied natural gas (LNG) for power projects in Vietnam. The signing of the agreement was witnessed by Vietnamese Prime Minister Pham Minh Chinh and Japanese Prime Minister Kishida Fumio during his official visit. Sunny World signs strategic cooperation agreement with Daiwha House, Haichang Ocean Park Holdings and Medi Hub Sunny World Infrastructure and Real Estate Investment and Development Group Corporation – a member of the Van Thinh Phat ecosystem – organised a strategic cooperation signing ceremony on May 2 with the aim to strengthen cooperation in investment promotion between Vietnam and Japan towards the 50th anniversary of the establishment of diplomatic relations between the two nations. Sunny World also signed a cooperation agreement with Haichang Ocean Park Holdings from Hong Kong to jointly develop theme parks in Vietnam. Vietnamese economy rebounds but challenges remain The Vietnamese economy is rebounding strongly with impressive growth in newly established enterprises, industrial production and export-import, but is still faced with quite a few challenges and difficulties. According to a report by the Ministry of Planning and Investment, the Vietnamese economy continued to recover in April on top of the momentum recorded in the first quarter of 2022. Specifically, industrial production rose 2% from the previous month and 9.4% over the same month last year. Overall industrial production grew 7.5% in the first four months of 2022 while manufacturing expanded by 11.3%. The number of workers in factories also rose 1.3% month on month and 3.9% from a year earlier. Total retail sales and consumer services in April climbed 12.1%, which translated into a 6.5% rise for the four months. Exports during January-April went up 16.4% while imports rose 15.7%, with a trade surplus of 2.5 billion USD. Tourism saw a strong recovery as international arrivals in April rose more than twofold compared to March and over fivefold compared to the same month last year. Disbursement of foreign direct investment was estimated at 5.92 billion USD, the highest figure since 2018. Macroeconomic stability continued to be maintained and inflation was kept in check although Vietnam was facing considerable pressure. The consumer price index during the January-April period rose by 2.64% year on year. Industrial land rents increase in Q1 Land rents at industrial parks in southern Vietnam were US$120 per square meter on average in the first quarter of the year, up 9% year-on-year, according to property consulting firm Jones Lang LaSalle (JLL). In a report on the industrial real estate market, JLL attributed the land rent hike to a new wave of foreign direct investment into Vietnam after the country reopened its economy and enterprises showed a higher demand for expansion, news site VnExpress reported. Meanwhile, real estate service provider Colliers Vietnam said the average industrial land rent in HCMC alone reached US$190 per square meter and the occupancy rate hit 90% in the January-March period. Land rents in the industrial parks in the southern part of the country has grown 8%-9% per year over the past few years. Many industrial parks in HCMC have run out of land for lease, paving the way for neighboring provinces such as Binh Duong, Long An and Dong Nai to attract more investors. SEA Games 31, a golden chance to boost Vietnamese tourism The 31st Southeast Asian Games (SEA Games 31) to be hosted in Vietnam shall be a great chance for the country to promote the images of the nation, people and tourism to international friends. Deputy Director General of Vietnam National Administration of Tourism Ha Van Sieu said that the activities of destination and tourist product introduction along with the activity of welcoming SEA Games 31, festivals, promotion programs at the venues will be well elaborated to bring a positive impression and sentiment to delegates and athletes. Especially, 12 localities hosting the SEA Games 31 have built tours for athletes and sports managers. It will be free of charge for those holding SEA Games entry cards. The delegates and athletes competing at the SEA Games 31 will have chances to enjoy the beautiful sceneries, the hospitality and the tourist attraction of Vietnam. According to Mr. Ha Van Sieu, there will be free-of-charge tours, on-demand tours for fans, sports managers, athletes, sports delegates and so on. For example, sports delegations in the capital city of Hanoi can travel to Lao Cai, Ninh Binh, Ha Long or Hai Phong while sports delegations in Ha Long can perform their trip to Hanoi. Top travel agencies including Saigontourist, Vietravel and other enterprises have well prepared appropriate tours for different customers and regularly updated the information for delegates and visitors. There will be also booths, information counters, cultural spaces and information related to tours and destinations at the coming press conference. The travel agencies will dedicate the city tour in Hanoi or a special tour of the Son Doong Cave expedition for sports delegates. HCMC accelerates social housing projects In recent days, elsewhere in the southern largest city, local administration and investors started several housing projects for workers, employees, and resettlement houses for residents whose old houses were destroyed. Typically, construction of worker accommodation projects in Linh Trung 2 Export Processing Zone, Thu Duc City started on April 25 with pressing test piles. Chairman of Thu Duc City People's Committee Hoang Tung said that through the analysis of social housing needs of employees working in companies in the city, so far, nearly 5,600 people registered to rent and buy social housing. Prior, the People's Committee of Thu Duc City has issued a written request for a policy to plan three locations for the construction of workers' accommodation in Ho Chi Minh City's Hi-Tech Park with an area of about 90ha which can provide accommodation for more than 80,000 workers and employees. Moreover, at the same time, the city will continue to review the public land fund for the construction of social housing and accommodation for workers. Similarly, District 7 proposed that Ho Chi Minh City approve nine land plots to build social housing and housing for workers, such as the 15,400 square meter land plot at No. 4 Pham Huu Lau, the 6,400 square meter land area at 261A Lam Van Ben and the land area on Nguyen Van Quy street with 29,700 square meters. In particular, Ho Chi Minh City strives for the area of social housing to lease at least 500,000 square meters of floor space, accounting for 20 percent of the social housing area. Particularly in 2022, the floor area for the construction of social housing will increase by 46,300 square meters with an investment demand of VND698 billion. According to Deputy Director of Ho Chi Minh City Department of Construction Huynh Thanh Khiet, projects in Ho Chi Minh City will provide over 35,000 social housing apartments from 2021 to 2025. Ho Chi Minh City also asked investors of 33 housing projects with a land area of over 10 hectares in a total area of over 105 hectares for building about 70,000 apartments to reserve 20 percent of the land fund for the construction of social housing. The Department of Construction of Ho Chi Minh City has submitted to the People's Committee of Ho Chi Minh City shortened processes, speeding up the implementation time of social housing projects to less than 6 months to facilitate investors. Banks cut lending rates to support businesses
The banking sector will continue providing support for its customers affected by the pandemic, including ongoing efforts to restructure debt payments and waive and cut interest rates. Credit institutions in Hanoi have so far waived and lowered lending interest rates for 316,000 customers with a total outstanding loan of VND521 trillion (US$22.7 billion), according to the State Bank of Vietnam – Hanoi Branch. In addition, the banking sector also restructured debt payment schedules for 58,400 companies and individuals for VND60 trillion ($2.6 billion) and provided new loans with preferential rates for 210,000 others. The move came following the instruction from the State Bank of Vietnam (SBV) to keep a low-interest-rate environment for businesses and individuals to access loans at affordable rates. At present, the average lending rates at banks are estimated at 5.5-7.5% per annum for short-term loans; and 7.5-8.5% for mid-and long-term loans. Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes | 
