Ho chi minh city airport transfer

The Ministry of Finance (MoF) reported that in the first three months of this year, the total disbursement of public investment in Vietnam was low, VND60.75 trillion (US$2.64 billion), hitting 11.95% of the initial plan and 13.17% of the plan assigned by the prime minister. In which, foreign-funded capital disbursement sat at merely 0.66%.

Many ministries and localities achieved high disbursement rates, including Thai Binh (43.24%), Bac Ninh (30.2%), Hung Yen (28.67%), Thanh Hoa (27.79%), and Ha Nam (27.63%), and the Ministry of Public Security (31.62%). Up to 31 ministries, central agencies, and localities have yet to boost disbursement of this type of capital.

The main causes behind this grey situation is that, according to the MoF, in the first quarter, ministries, central agencies, and localities were focusing on disbursing capital of 2020 which has been transferred to 2021. Thus the disbursement rate of capital in 2021 has been generally low. In addition, a number of big projects have been seeing their investment procedures adjusted, and investors have also been making preparations in bidding and constructions, which would need much time for the official construction of projects and for money to be disbursed.

Another cause also comes from snail-paced site clearance which has negatively impacted on the speed of disbursement in the first months of the year.

Imperative order

The Ministry of Planning and Investment (MPI), which is in charge of conducting state management over Vietnam’s public investment plans, has sent a document to ministries, central agencies, and localities nationwide asking them to report difficulties and obstructions in their disbursement of state budget capital which has already been allocated to them for 2021.

They are also requested to report to the MPI the results of public investment disbursement, including the sum which has been disbursed and the sum which have failed to be realised. They are also asked to propose solutions for speeding up the disbursement.

“The solutions include two groups, with the first on policies about investment procedures and plan, site clearance, and construction, and the second on implementation,” said the MPI document.

The MPI will collect all proposals and measures and then make official proposals to the government in public investment disbursement for this year and beyond, which must ensure goals, high quality, and effectiveness in the use of this type of capital.

Earlier Prime Minister Pham Minh Chinh asked ministries, central agencies, and localities to speed up public investment disbursement as one of the key solutions to fuel economic growth, which is expected to be about 6.5% this year.

He required ministries and sectors, especially heads of ministries and sectors, to be fully responsible for public investment disbursement. The MPI has to review the disbursement and advance solutions to disburse investment at a high rate and in an effective manner.

One year ago, the government released Resolution No.30/NQ-CP on launching the government’s action programme on implementing the Politburo’s Resolution No.39-NQ/TW dated January 15, 2019 on increasing the effectiveness in managing, exploiting, using, and promoting resources of the economy.

The programme came amid the economy facing huge difficulties caused by COVID-19 which has been heavily sabotaging enterprises’ performance.

One of the biggest highlights in the programme is that the government has ordered ministries and localities to quickly review all state-funded projects so that they can be both constructed and put into operation soon, in service of socio-economic development and attracting more private investment.

“It is necessary to review the implementation speed of projects. Investment in all ineffective projects must be stopped, and resources must be prioritised into key projects and infrastructure works,” read Resolution 30. “Inspection and supervision over projects must be intensified.”

Improving disbursement

The National Assembly in last November passed a plan for boosting public investment for 2021 Accordingly, total investment capital from the state coffers for next year will be VND477.3 trillion (US$20.75 billion), up 1.4% against the similar plan for last year. In which, money from the central budget will increase 0.9% on-year, and money from the local coffers will expand 1.9% year-on-year.

The VND477.3 trillion public investment capital will be used for many projects. For example, VND16 trillion (US$695.65 million) will be used for national target programmes, VND15.038 trillion (US$653.82 million) for the project on constructing the North-South Expressway; VND4.66 trillion (US$202.6 million) for the project on land compensation and resettlement for the Long Thanh International Airport; VND2.8 trillion (US$121.74 million) for developing coastal roads; and VND4.7 trillion (US$204.34 million) for supporting localities in implementing some key new infrastructure projects.

According to the MPI, in 2021, these new investment capital sums, in addition to capital attracted from private investors including foreign ones, will help to complete the construction of the Eastern Cluster of the North-South Expressway project, the national coastal road line, connection road lines, airports, and seaports.

One of the main drivers behind Vietnam’s growth rate of 2.91% in 2020 is public investment, with a range of public-funded infrastructure projects playing a major role in boosting demand, supporting enterprise development, and creating jobs.

After a conference on public investment in July 2020, the government dispatched seven delegations to ministries and provincial authorities to learn about the situation and seek solutions to remove obstacles in disbursement. As a result, the rate of public investment disbursement accelerated in the second half of 2020 to reach 91.1% of the full-year target, with the total figure at VND466.6 trillion (US$20.2 billion), up by 34.5% from 2019.

Public investment is mainly concentrated on key socio-economic infrastructure projects, especially in transport, water resources, education, healthcare and agriculture. Thus, it will act as the lure to attract private and foreign investment, helping to increase total social investment to 33-34%, which is a highly important factor in reviving and maintaining economic growth in 2021.

>>> Vietnam reports 26 new COVID-19 cases on May 5 evening

>>> Measures stepped up against the spread of COVID-19

As of this morning, the country’s caseload stood at 3,030, including 1,634 domestically-transmitted cases, according to the Ministry of Health.

Sixty-four cases have been recorded since the latest outbreak hit the country on April 27. The National Hospital for Tropical Diseases in Hanoi’s Dong Anh District, the frontline facility in the COVID-19 fight, has recorded 22 cases in the new outbreak.

As many as 2,560 patients have been given the all-clear. Among the patients under treatment, 24 have tested negative for the coronavirus once, 12 twice and 38 thrice.

A total of 40,736 people are under medical monitoring nationwide, with 560 at hospitals, 21,733 at State-designed quarantine establishments, and 18,443 at home or residences.

The ministry said additional 90,417 people were given COVID-19 vaccine shots on May 5, raising the total number of vaccinated people to 675,956.

The Health Ministry has directed placing the second facility of the National Hospital for Tropical Diseases in Kim Chung under lockdown from 8 am on May 5, while stepping up tracing and testing of staff members and patients in the hospital.

The Health Ministry has instructed that only severe cases of COVID-19 should be moved to the Kim Chung facility, while patients who received treatment at the facility within the past 14 days must be traced and put under quarantine.

On the afternoon of May 5, Chu Ngoc Anh, Chairman of the People’s Committee of Hanoi, checked the medical isolation and COVID-19 prevention and control at the National Hospital for Tropical Diseases Base 2, Me Linh Field Hospital and some other facilities in the capital city. The chairman affirmed that Hanoi is ready to provide maximum support and supplies for the hospital during the medical isolation.

Hanoi City People’s Committee Chairman Chu Ngoc Anh inspects the Me Linh field hospital. (Photo: NDO/Duy Linh)

To control and avoid spreading the epidemic to the community, Hanoi authorities suggested the hospital provide a list of patients who went to the hospital from April 20 for active tracing and coordinate with other provinces and cities in monitoring them after quarantine. In the immediate future, to ensure the medical examination and treatment for patients when the National Hospital for Tropical Diseases Base 2 is blocked, Hanoi will convert some other hospitals into COVID-19 dedicated treatment facilities, while ready to activate and put Me Linh Field Hospital into operation and turning Bac Thang Long Hospital to become a treatment facility for COVID-19 cases. On the afternoon of May 5, Dong Anh District supported the hospital with essential necessities.

Also on May 5, Chairman Chu Ngoc Anh ordered drastic implementation of COVID-19 prevention and control measures amid the complex and unexpected developments of the pandemic.

Since the new outbreak hit Vietnam on April 27, the capital city has detected 27 cases, including 22 in the National Hospital for Tropical Diseases in the outskirts district of Dong Anh.

In a directive issued on May 5, Anh asked local administrations at all levels to consider the COVID-19 fight an important, urgent and top priority task in the time ahead, stressing vigilance must be maintained.

The official urged stepping the communication work and promoting the role of community-based anti-COVID-19 groups to encourage the public to join the pandemic combat.

Health declaration and mask wearing are mandatory, Anh said, adding that large gatherings at public places are banned and the physical distancing of at least 1m must be maintained.

Anh urged localities to draw up plans in order to ensure safety at medical facilities and make greater efforts in contact tracing, testing and quarantine, and suggested conducting tests at high-risk areas like industrial parks and areas where many foreign experts are living.

The official also ordered tightening the management at concentrated quarantine establishments, particularly hotels, to prevent cross-infections and pandemic spread among the community.

Meanwhile, along with tracing cases related to newly-detected COVID-19 patients in the community, localities are accelerating the testing of close contacts to them.

Many more localities including Vinh Phuc, Ca Mau, Dak Lak, Thai Binh, Quang Ninh and Kon Tum have suspended unnecessary activities to focus on COVID-19 prevention and halted non-essential businesses to limit the spread of the epidemic. Vinh Phuc Province has suspended the work of four officers related to outbreaks at Hoa Sen Health Care Centre and Sunny bar, while continuing to clarify the responsibilities of collectives and individuals in the COVID-19 prevention and control work.

Functional forces coordinate in COVID-19 prevention and control in Tien Yen District, Quang Ninh Province. (NDO/Quang Tho)

Compulsory quarantine period extended to 21 days

On May 5, the National Steering Committee for COVID-19 Prevention and Control sent an urgent dispatch to the relevant agencies and localities regarding the extending of compulsory concentrated COVID-19 quarantine period in Vietnam to 21 days.

The mandatory concentrated quarantine for those enter Vietnam from abroad or had close contact with confirmed COVID-19 cases will be officially extended from the current 14 days to 21 days.

Local health departments and centres for disease control are urged to strictly comply with concentrated quarantine protocols to avoid cross-infection within quarantine facilities and transfer people who have completed concentrated quarantine to the authorities in their residence.

The follow-up medical observation period at home for those who have completed concentrated quarantine will be reduced from two weeks to seven days.

People who return from quarantine facilities should make daily health declarations with local medical workers. If they show any signs of fever, cough, sore throat, shortness of breath, tiredness or loss of taste, they must go to the closest health clinic for guidance.

They are not allowed to leave their houses or places of residence. If they need to go out for work or other necessary purposes, they must report to local police and medical staff and strictly follow basic prevention measures.

Authorities of Sa Pa Town inspect COVID-19 prevention and control in O Quy Ho Ward, Sa Pa Town, May 5, 2021. (Photo: NDO/Quoc Hong)

On May 5, the Hanoi Railway Transport JSC said that it has decided to suspend the operation of trains on the Hanoi – Yen Bai route from May 8 due to the epidemic. In addition, the railway industry also stopped running HP1/LP2 trains on the Hanoi – Hai Phong route (running on weekends like Yen Bai trains) from May 8.

On the same day, the Civil Aviation Administration of Vietnam said that the agency has sent an official dispatch to relevant agencies and units on further strengthening COVID-19 epidemic prevention and control at local airports.

The Steering Committee for COVID-19 Prevention and Control of Quang Nam province said that the People’s Committee of Quang Nam province issued a document on May 5 allowing preschool children and local students across the province, except Hoi An City, to return to school from May 6, with full implementation of COVID-19 preventive measures.

Vietnam’s fruit exports reached about 1 billion USD in the first quarter of this year, up 10 percent compared to the same period last year. Of the figure, exports to the US – Vietnam’s 4cond-largest fruit and vegetable market – accounted for 30 percent. The market’s potential is expected to grow in the time to come.

Growth is expected to continue in the future due to increasing market demand.

The US is Vietnam’s second-largest fruit market, after China. It imports about 150 million USD worth of fruit each year. While the figure is rather modest, it is still significant in creating a driving force for fruit growers to improve the quality to meet the requirements of other demanding markets.

Greater profit margins will create fiercer competition in the market. The price of Vietnamese fruit, meanwhile, is always higher than in countries such as Thailand.

Prices are expected to fall in the time to come, though, as more enterprises invest in post-production facilities and irradiation areas. This will be a foundation for enterprises to cooperate more strongly to sustainably exploit markets./.

SMEDF expects to directly provide loans for SMEs from this year

The Ministry of Planning and Investment’s Small and Medium Enterprises Development Fund (SMEDF) expects to deploy direct lending for small and medium sized enterprises (SMEs) from this year.

This will help SMEs access the Government’s preferential capital through many different forms, according to the ministry.

At present, this fund has often provided loans through the entrusted banks and financial supports for SMEs.

The SMEs enjoying those loans including start-ups, and enterprises in industrial clusters and value chains will take loans via five entrusted banks by the fund.

These five commercial banks are Joint Stock Commercial Bank for Investment and Development of Viet Nam (BIDV); Military Commercial Joint Stock Bank (MB); Saigon Hanoi Commercial Joint Stock Bank (SHB); HCM City Development Joint Stock Commercial Bank (HD Bank) and Bac A Commercial Joint Stock Bank (Bac A Bank), reported the Vietnam News Agency.

The lending rate of those loans in April 2021 was 2.16 per cent per year for short-term loans and 4 per cent per year for medium and long-term loans to overcome difficulties in production and business during the COVID-19 pandemic.

With the duties of receiving, managing and using financial sources, domestic and foreign entrusted capital to create capital to support the development of SMEs, the fund has more capital for SMEs.

According to the Ministry of Planning and Investment, early this month, the SMEDF had a meeting with those banks to evaluate the implementation of indirect lending in 2020. They have also set this year’s disbursement target for loans providing for eligible SMEs.

The fund has also organised activities to improve operation ability of SMEs, such as seminars, training, consultancy and investment promotion.

Up to now, the capital from the SMEDF’s lending programme has been used effectively. The enterprises with the loans are operating well with many production and business expansion projects being implemented as planned, so the enterprises have repaid principal and interest.

Tax watchdog eyes further reforms in the next ten-year period

The tax watchdog was eyeing further reforms in the 2021-30 period with focus on simplifying tax procedures and applying information technology in management to contribute to improving the business climate and bringing Viet Nam to the top 30 in the world in terms of the ease of doing business.

Director of the General Department of Taxation Cao Anh Tuan said that the tax reform strategy in the 2021-30 period aimed at two goals, improving and synchronising tax policies to implement socio-economic development goals and developing a modern and streamlined tax system that operates efficiently.

Tuan said that reforms must ensure the stability, sustainability and transparency of the tax collection revenue while seting up a competitive economic environment appropriate to the country’s integration and development process.

The highest goal of reforms was to promote production and increase the competitiveness and encourage Vietnamese enterprises to participate in global value chains to create high added value.

Accordingly, the corporate income tax would be kept stable at 20 per cent as currently to the end of 2025 and adjustments could be put under consideration from 2026 depending on the Vietnamese economy’s situation and the global context.

Regarding value added tax, it was necessary to narrow down the subjects for tax exemption to expand the tax base, from 20 categories of goods and services in 2025 to 12 in 2030.

He added that the efforts would be made to speed up the development of an e-government towards a digital government by 2030 and bring Viet Nam to the top 50 countries in the world and third in ASEAN in terms of e-government and digital economy.

The Ministry of Finance recently asked the General Department of Taxation to continue to strengthen the application of information technology in tax management. Specifically, priority would be placed on expanding the application of electronic invoices, electronic tax payment, registration fee payment and individual tax payment.

By 2022, the tax watchdog targeted that all administrative tax procedures would be conduct electronically with connection to the national public service portal at level 4.

Phi Van Tuan, Deputy Director of the General Department of Taxation, said that it was important to keep a close watch on the compilation of tax policies to ensure that the administrative reforms really create a more favourable environment for taxpayers and there would be no new procedures.

Currently, the tax watchdog was developing circulars and decrees to guide the implementation of the Law on Tax Management No 38, Tuan said, adding that close watch was being placed on the process to ensure that no new procedures arise in the new circulars.

The General Department of Taxation’s report showed that electronic tax declaration was implemented in all 63 provinces and cities nationwide. The tax watchdog also cooperated with 50 commercial banks to facilitate electronic tax payment and refund.

Gov’t affirms FDI’s important role in Vietnamese economy

The foreign direct investment (FDI) sector continues to be an important economic driver, contributing to making Viet Nam more prosperous, Deputy Prime Minister Pham Binh Minh said.

At the connections for development forum 2021 with the theme ‘Presenting opportunities and challenges from the movement of FDI flows in the new context’ co-organised by the Ministry of Foreign Affairs and newspaper Vietnam Economic Times on Monday in Ha Noi, Minh said since 1987, along with the process of renewing and opening up the country’s economy, the Law on Foreign Investment had been enacted. The country had seen three FDI waves, which had made the FDI sector present in many important industries and contribute significantly to the overall socio-economic development of the country.

As of December 2020, over 33 years of developing and attracting FDI, Viet Nam has 33,070 FDI projects with registered capital of more than US$384 billion, of which about $231.86 billion has been disbursed.

In order to successfully attract FDI in the new context, the Deputy PM said the Government would focus on solving four issues.

Firstly, Viet Nam would be determined to maintain a stable socio-political environment, considering it a competitive advantage of the country in the context that the world has many unpredictable uncertainties and it is difficult to forecast the COVID-19 pandemic.

Second, the country would focus on improving the quality of institutions and legal policies towards enhancing transparency, soundness, safety and efficiency as well as improving the governance and macroeconomic management of the State to attract high-quality FDI inflows and enhance the competitiveness of the economy.

In addition, the Government would encourage and support domestic enterprises to enter into joint ventures, contribute capital and purchase shares of FDI enterprises in projects using high and new technologies and supporting industries to master technology, manage and develop national products.

Third, the Government would prioritise investment in infrastructure development to create smart and efficient connections to help reduce transaction costs and enhance the competitiveness of businesses, investors and the entire economy.

In particular, the Government would encourage investment in education and science and technology, considering it an engine of growth for the country in the coming decades.

Finally, together with investment attraction, provinces and cities would organise and support investors to build their projects effectively and promptly through reforming the business environment and administrative procedures, especially in land clearance.

Minh expected the measures would help reduce investment costs for investors and strengthen their confidence besides supporting domestic enterprises to develop and participate more deeply in the global production and distribution chains.

Vietnam not impacted by ban on importing 13 types of Algerian fruit

The Algerian Ministry of Trade has recently informed the Vietnamese Ministry of Finance about the updated list of suspended fruit imports into Algeria during the harvest time, according to the Vietnam Trade Office based in Algeria.

In total, there are 13 types of fruit, including oranges, tangerines, apricots, cherries, peaches, plums, grapes, pears, apples, almonds, figs, pomegranates, camellia, and quince, which are subject to the list.

The decision has been made with the aim of protecting domestic production, along with intensifying control over imported fruit as part of efforts to avoid billing over real value, whilst simultaneously ensuring food safety quality for the health of consumers.

Due to the nation not exporting these types of fruit to the North African country, there will no effect for Vietnamese farmers. In fact, this ban was initially introduced and applied by Algeria back in July, 2020, whilst they are among one the few countries globally not to be a member of the World Trade Organization (WTO).

COVID-19 crisis may be opportunity for Vietnam’s agricultural trade: Experts

The COVID-19 pandemic has rocked the global economy and created unprecedented trade uncertainty and challenges for all sectors, but from the crisis may come opportunity for Vietnam’s agricultural trade, experts have said.

At a workshop held by the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD) and the Australia – Vietnam Economic Reform Programme (Aus4Reform Programme), Do Lien Huong from IPSARD said that although the agricultural sector suffered a decline in agricultural trade last year, it maintained a trade surplus of 10 billion USD.

There are challenges for Vietnam’s agriculture since the country has no particular support policies for the sector while demand in traditional trade partners such as China and the US are falling.

“The pandemic highlighted shortcomings in the agricultural sector and imposed stringent requirements on uniform policies as well as production and cultivation methods,” Huong said.

She stressed that the agricultural sector could find new markets if changes are made in a timely manner.

According to Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP) Nguyen Hoai Nam, the shipment of seafood in 2020 fell 1.9 percent year-on-year due to increasing input costs and labour shortages.

In the first quarter of 2021, however, seafood exports inched up 6.9 percent from the same time last year.

Nam said that Vietnamese firms may have opportunities to promote exports and gain greater market share in the time to come as large markets such as the US, Japan, and China are increasing imports while competitors like India and Thailand are struggling with spiralling pandemic outbreaks.

Regarding the production and trade of fruits and vegetables, Chairman of the Vietnam Fruit and Vegetable Association Nguyen Thanh Binh said production and shipments have fallen since 2019 as a result of the US – China trade war and COVID-19, but he believed they will bounce back this year.

It is necessary to promote production links and form a sustainable value chain to improve food safety, quarantine, and origin traceability, he suggested, adding that localities and businesses should focus on large-scale production and the application of advanced technologies and good practice standards such as VietGAP and GlobalGAP.

Other experts held that State agencies should provide businesses with full market information and raise awareness about import-export activities.

In addition to expanding markets and adjusting the export market structure, the State should also outline measures to stimulate the economy and support companies in production and business.

According to Director of the Legal Department at the Vietnam Chamber of Commerce and Industry, Dau Anh Tuan, Vietnamese enterprises expect support from the State, including exemptions from corporate income taxes, extensions on tax payments, and reductions or extensions on social security payments, among others./.

biz

Workplace productivity improvements needed for economic competitiveness: Expert

Vietnam must look to improve national workplace productivity if it wants to promote its economic competitiveness and growth, according to Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc.

Loc made the statement at a workshop held by the VCCI and the Japan International Cooperation Agency (JICA) in Hanoi on April 28, part of activities launched by VCCI to improve workplace productivity at businesses.

According to Loc, Vietnam’s workplace productivity has improved remarkably in recent years, posting a rise of 5.8 percent each year in the 2016-2020 period and exceeding the target by 0.8 percent.

The country’s growth model has gradually reduced a dependence on the exploitation of natural resources, raw material exports, low-cost labour, and credit expansion, and begun relying on the application of science, technology, and innovation, he said.

According to the International Labour Organisation (ILO), Vietnam’s workplace productivity in the 2011-2020 period rose 5.11 percent, 2 percent higher than the average in ASEAN.

Its productivity has improved significantly but is still low compared to countries such as China and India, it noted.

Kenichi Ohno from the National Graduate Institute for Policy Studies of Japan said with the support of international organisations such as the Asian Productivity Organisation (APO), a number of productivity improvement programmes have been implemented in Vietnam over recent years, contributing significantly to boosting workplace productivity.

Vietnam should learn from Japan’s experience and tools as well as those of other Asian countries to improve its workplace productivity.

The Japanese Government and business community are willing to cooperate and support Vietnam in effectively improving productivity, he said.

Participants at the workshop also highlighted the important contribution of the digital economy to productivity and efficiency in the economy, saying that this is a new driver of rapid improvements./.

Measures to bring Vietnamese goods to the world sought

Ways to facilitate Vietnam’s development of cross-border e-commerce were discussed at a workshop on exporting Vietnamese products to the world with Amazon on April 28 in Hanoi.

The workshop was held jointly by the Vietnam E-commerce and Digital Economy Agency at the Ministry of Industry and Trade, the Hanoi Department of Industry and Trade, and Amazon Global Selling.

Lai Viet Anh, deputy head of the agency, said Vietnam has the fastest cross-border e-commerce growth rate in the world.

Cross-border e-commerce continues to be an effective way for Vietnamese businesses to open their doors to global supply chains and minimise risks when traditional supply chains are disrupted or stagnant due to the COVID-19 pandemic, she added.

Last year, despite the impact of the pandemic, Vietnam’s business-to-consumer e-commerce sales grew by 18 percent to 11.8 billion USD, accounting for 5.5 percent of the country’s total retail sales and service revenue. It is eyeing annual growth of 25 percent during 2021-2025, to hit 35 billion USD.

To help Vietnamese goods connect effectively with the global market, Anh stressed the need for enterprises to engage in and adapt to the trend, besides measures carried out by competent agencies.

Assessing cross-border e-commerce as an effective export channel, acting director of the Hanoi Department of Industry and Trade Tran Thi Phuong Lan said that sales via e-commerce platforms are also one of the fastest ways for businesses, especially those of small and medium size, to build their own brands for bringing goods to the world.

Gijae Seong, Vietnam Country Manager at Amazon Global Selling, said his company hopes to contribute more to the development of cross-border e-commerce in Vietnam.

Joining hands with the Ministry of Industry and Trade in helping Vietnamese businesses develop cross-border e-commerce, Amazon Global Selling officially launched a programme aimed at enhancing support for Vietnamese sellers on their journey to the world by providing them with cross-border e-commerce knowledge, helping them set up and operate stores on Amazon, and improve their competitiveness./.

Vietnam Grand Sale 2021 to offer discounts up to 100 percent

The Vietnam Grand Sale 2021 will take place nationwide from July 1 to 31, with discounts of up to 100 percent, heard a press conference in Hanoi on April 28.

Director of the Ministry of Industry and Trade’s Vietnam Trade Promotion Agency Vu Ba Phu said merchants can register to introduce products and services in line with regulations.

Apart from exhibitions, they can also join traditional festivals in localities to develop tourism and e-commerce and encourage cashless payments.

Last year, over 27,450 promotional programmes were held in response to the event, nearly 1,000 of which offered discounts of 80-100 percent, 1,100 60-79 percent, and some 2,500 50-69 percent.

Discounts were mostly on apparel, consumer goods, electronics, and telecommunications via supermarkets, retail networks, and electronic transaction floors.

According to the General Statistics Office, the total retail of goods and services reached 431.9 trillion VND last July, up 3.3 percent against June and 4.3 percent year-on-year.

Experts said the event will help raise public awareness about Vietnamese goods and services and provide a means for suggesting support policies for participating firms./.

Measures sought to expand export markets for farm produce

Minister of Agriculture and Rural Development Le Minh Hoan asked agencies within the ministry, local authorities and departments of agriculture and rural development of localities to focus on measures to seek new export markets for Vietnamese farm produce, stressing that this is a decisive factor in the country’s agricultural economic development.

Addressing a national conference in the Mekong Delta city of Can Tho on April 28, the minister underlined the need to pay special heed to building orientations for domestic and international market development for agricultural products.

Jointly held by the Ministry of Agriculture and Rural Development, the Ministry of Science and Technology, and the municipal People’s Committee, the conference aimed to identify measures to effectively implement plans to restructure the agricultural sector in the 2021-2025 period.

Hoan said it provided a venue for ministries, localities, and businesses to share their experience and discuss ways to improve the value chain of Vietnamese farm produce in the time to come.

According to the minister, Vietnam is ranked 17th in agro-forestry-aquaculture exports in the world, with turnover hitting 41.2 billion USD in 2020, accounting for 1.95 percent of the global total. Therefore, there is major space for Vietnam to boost such exports.

Relevant ministries, sectors, localities and business associations were urged to work hard on addressing bottlenecks so as to develop agricultural product markets in the time to come. They were asked to continue negotiations to remove technical and trade barriers in key markets such as the US and the EU, while promoting negotiations to facilitate the export of fresh fruit and vegetables, aquatic products, birds’ nests, and meat to China, as well as expanding exports to Japan, the Republic of Korea, India, the Eurasian Economic Union, Africa, and ASEAN, and for the Halal market.

Attention should also be paid to planning domestic production to create agricultural products that meet the requirements of fastidious countries, participants said.

They emphasised the need to strengthen trade promotion activities, bolster the application of technology in agricultural development, raise the quality of farm produce for export, while share experience, global market trends and issues relating to brand building and protection, and geographical indications with businesses operating in agriculture./.

Deputy PM lauds contributions of Japan’s financial, credit organisations

Deputy Prime Minister Pham Binh Minh on April 28 hosted a reception for Masahiro Yoshimura, General Manager of Business Development Department at Japan’s Sumitomo Mitsui Financial Group (SMFG), who is also in charge of managing Sumitomo Mitsui Banking Corporation (SMBC).

At the meeting, Minh said the Vietnam-Japan relationship is developing fruitfully across spheres, and Japan is now Vietnam’s largest ODA supplier with about 27 billion USD.

Japan is also Vietnam’s second foreign investor with accumulated investment amounting to 60.3 billion USD, making up 15.7 percent of total foreign investment in the country.

Japan is the fourth largest trade partner of Vietnam, with bilateral trade reaching 60 billion USD last year, the official added.

Minh attributed the achievements to contributions in terms of both finance and operational experience of Japanese financial and credit organisations over the past time, including SMFG.

The Vietnamese government appreciates the role of SMBC that has operated in Vietnam over the past nearly two decades, providing financial and banking services, as well as support for many major energy and infrastructure projects in the country with combined funding of about 20 billion USD.

Minh expressed his hope that SMFG and SMBC in particular will develop further and expand its investment and business in Vietnam, while continuing to work as a bridge for Japanese firms in the Southeast Asian nation.

The Vietnamese government also encourages the participation of credit organisations with financial potential, experience and capacity to help local credit organisations, the Deputy PM said, adding that he welcomed SMBC’s investment in FE Credit – a consumer finance division of VPBank, and noted his belief that the cooperation will be a success.

For his part, Yoshimura pledged that SMFG will continue to prioritise its efforts and resources to business development in Vietnam, saying he believes that the group will contribute to the growth of relations between the two countries.

He said SMBC’s investment in FE Credit is the biggest foreign invested project in the banking sector in Vietnam, which has demonstrated SMFG’s commitments to contributing to the country’s development as well as the bilateral ties for a long run.

Currently, Japan ranks third in terms of its presence in Vietnam’s banking sector, with six branches, two financial companies and 10 representative offices./.

Room for Vietnam – US post-pandemic cooperation considerable: Experts

Vietnam and the US have huge potential to boost cooperation in trade and supply chains after COVID-19 is brought under control, experts said at a conference held by the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC) and the American Chamber of Commerce in Vietnam (AmCham Vietnam) on April 28.

According to ITPC Director Nguyen Huu Tin, Vietnam and the US have enjoyed impressive strides forward in economic cooperative ties, with the US being Vietnam’s largest export market and Vietnam being the US’s 6th-largest importer.

The US has shifted to purchasing products from emerging countries, including Vietnam.

Vietnam has affirmed its position as an important trade partner of the world’s largest economy, Tin said.

For the first time in 26 years of relations, the US is Vietnam’s largest export market, he said, adding that two-way trade in the first quarter topped 25.9 billion USD, up 33.5 percent year-on-year, with Vietnam’s exports estimated at 22.2 billion USD.

The two governments and business communities have made efforts in the past to bolster cooperation in a practical fashion and based on the complementary nature of the two economies.

Vietnam is stepping up its economic reform and international integration while enhancing win-win cooperation with the US. Meanwhile, the US has attached much importance to ties with Vietnam and encouraged its companies to set up value chains with the country and expand investment.

Thanks to the good control of COVID-19 in Vietnam, Vietnamese firms have a huge advantage over foreign rivals struggling to fight the pandemic, Tin stressed, while suggesting that improving business and production capacity and capitalising on the US market will provide opportunities for Vietnam’s economy to develop further in the time to come.

Evaluating the cooperative potential between Vietnam and the US, Alexander Tatsis, Economic Officer at the US Consulate General in HCM City, said they have witnessed advancements in their trade and foreign relations over more than two decades.

He highlighted that the US’s demand for high-quality Vietnamese products has been increasing due to changes in the global supply chain, and US firms sees Vietnam as a potential, safe investment destination post-pandemic.

Meanwhile, AmCham Vietnam Executive Director Mary Tarnowka said that Vietnamese staples like tropical fruit, rice, and fish sauce are now popular in the US.

Pointing to the complementary nature of the two economies, she underscored that Vietnam has good production capacity in the fields of agriculture, seafood, and wood processing, among others, while the US is the world’s leading materials supplier and has the strongest purchasing power.

Vietnam is an important link in the global supply chain, and the country’s development has positive impacts on the US market, she said.

Ken D. Duong, Director of the TDL International Law Firm, suggested Vietnamese firms select suitable measures to effectively access the US market, adding that small businesses should export products via popular e-commerce platforms in the US, as this helps them cut costs at a time when the number of online shoppers is increasing amid COVID-19.

Medium and large-scale firms should establish representative offices or find distributors in the US, he said.

It is also necessary for enterprises to protect their trademarks by registering them not only in the US but also in target markets, he recommended./.

Vietnam’s economic growth likely to expand 6.7 pct in 2021: ADB

Vietnam’s economic growth is expected to rebound to 6.7 percent this year despite the recent resurgence of the COVID-19 pandemic in nearby countries, and rise to 7 percent in 2022, according to the Asian Development Bank (ADB).

In its Asian Development Outlook (ADO) 2021 released on April 28, the ADB said Vietnam’s economic growth will be boosted by export-oriented manufacturing, increased investment, and expanding trade.

The growth momentum is expected to continue, thanks to ongoing reforms to improve the business environment and Vietnam’s participation in multiple free trade agreements (FTAs) involving almost all advanced economies.

Rising international oil prices and increased domestic consumption is expected to push inflation up to 3.8 percent this year and 4.0 percent in 2022, the report said, adding that faster-than-expected recovery in China and the US would significantly expand Vietnam’s trade and growth prospects.

The report said Vietnam can maintain inclusive growth by softening the pandemic’s impact on poverty and incomes.

The ADB also raised its 2021 economic growth projection for developing countries in Asia amid ongoing COVID-19 vaccine campaigns and the sharply increasing export demand in the world market.

The developing region in Asia, comprising 45 countries in Asia Pacific, is forecast to grow 7.3 percent by 2021, and 5.3 percent in 2022.

Meanwhile, the growth rate forecasted for the Southeast Asian region is 4.4 percent, down from the earlier projection of 5.5 percent due to the instability in Myanmar. The Philippines, the slowest economy in Southeast Asia last year with a 9.6-percent contraction, is forecast to grow 4.1 percent this year./.

Bamboo Airways opens three new domestic routes to Quy Nhon

Bamboo Airways officially announced on April 28 its opening of new routes from the Mekong Delta city of Can Tho, Da Lat city in the Central Highlands’ province of Lam Dong, and Thanh Hoa city in the north-central province of Thanh Hoa to Quy Nhon city in the south-central province of Binh Dinh.

There will be five flights weekly on the Can Tho – Quy Nhon route, four on Da Lat – Quy Nhon, and three on Thanh Hoa – Quy Nhon.

Quy Nhon’s Phu Cat Airport now hosts a total of seven routes, catering to 60 flights on a daily basis.

Vice Chairman of the Binh Dinh Provincial People’s Committee Lam Hai Giang said the opening of the new routes marks a new stage of development in provincial air passenger transport and tourism, toward its goal of welcoming 4 million arrivals by air in 2021 and 8 million by 2025.

Quy Nhon hosts more than 5 million tourists annually. Most local hotels are already fully booked for the upcoming National Reunification Day (April 30) and May Day (May 1) holiday./.

Vietnam racks up nearly 1.9 billion USD in trade surplus in four months

Vietnam posted a trade surplus of nearly 1.9 billion USD in the first four months of the year, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

The foreign-invested sector enjoyed 14.4 billion USD in trade surplus while domestic firms reported a trade deficit of 12.5 billion USD.

In the first four months to April 20, foreign investors pumped 12.25 billion USD in Vietnam, equal to 99.3 percent of the amount recorded in the same period last year.

Of the amount, nearly 8.5 billion USD was poured into 451 new projects, up 24.7 percent in value and down 54.2 percent in project numbers year-on-year.

Meanwhile, more than 2.7 billion USD was added to 263 existing projects, down 10.6 percent and 21.5 percent, respectively.

The remaining investment capital, over 1 billion USD, was used for capital contribution and share purchases in a total 1,151 transactions.

Foreign investors landed investment in 17 sectors, with processing and manufacturing absorbing the largest amount of capital (5.2 billion USD), followed by power generation and distribution (5.1 billion USD), real estate (778 million USD), and whole sale and retail sale (464 million USD).

Among 67 countries and territories having investment in Vietnam in the period, Singapore took lead with 4.8 billion USD, Japan came second with more than 2.5 billion USD, and the RoK was the third largest investor with 1.5 billion USD.

Localities that attracted the most FDI were Long An (3.3 billion USD), Can Tho (over 1.3 billion USD), and Ho Chi Minh City (1.1 billion USD).

Minister of Planning and Investment Nguyen Chi Dung said that the ministry will work to complete mechanisms with a view to improving business climate for foreign investors, and set up preferential mechanisms to attract investment into the fields of high technologies and source technologies./.

Quang Nam province develops sustainable marine tourism

The central province of Quang Nam has been paid due attention to the development of tourism infrastructure as the locality is looking to develop sustainable sea and island tourism products.

According to Director of the provincial Department of Culture, Sports and Tourism Nguyen Thanh Hong, Quang Nam is working to create strong “brand” names for its sea and island eco-tourism models.

Quang Nam is home to renowned Hoi An ancient city, a UNESCO cultural heritage site. Over the years, Hoi An has been a top global travel destination and considered as a living museum of history and architecture.

Besides, it houses Cu Lao Cham (Cham Island) which was recognised as a World Biosphere Reserve by UNESCO in May 2009 thanks to its diverse eco-system and ancient cultural and historical sites.

Secretary of the Party Committee of Hoi An city Tran Anh said sustainable sea and island tourism development has been an inevitable choice of the ancient city.

The city successfully restore local coral reefs to serve scuba diving of visitors, particularly foreigners, he said, adding with support of advanced technologies, locals in Tan Hiep commune assisted marine reserves to recover more than 6,000 coral reefs./.

Cat Linh – Ha Dong metro line to begin commercial operation from May 1

Hanoi’s first metro service running from Cat Linh to Ha Dong will start commercial operation from May 1 as directed by the Prime Minister.

Safety problems in the project have been removed, according to a report from the Ministry of Transport, adding ACT – French safety consultants – which is hired to oversee the final stages of the metro project – is expected to complete safety certification for the railway on April 28.

Travel on the Cat Linh – Ha Dong Urban Railway will be free for the first 15 days of operation.

After that, a one-way ticket will cost 15,000 VND (0.65 USD). Then, the operation unit will notify passengers of the price of monthly and quarterly tickets soon.

The Cat Linh – Ha Dong Urban Railway project started in 2008 with a total investment of 18 trillion VND (782.6 million USD) and was initially expected to be completed in 2016. However, it has missed its completion deadline several times.

The Cat Linh – Ha Dong line runs 13.5km with 12 stations, encompassing Cat Linh, La Thanh, Thai Ha, Lang, Thuong Dinh, Ring Road 3, Phung Khoang, Van Quan, Ha Dong, La Khe, Van Khe and Yen Nghia.

Meanwhile, Management Authority for Urban Railways Ho Chi Minh City said that two three-car trains and four six-car trains for the first metro line (Metro Line 1) in the southern hub are expected to arrive in the city between May and July.

The two three-car trains will be shipped from Japan on May 1 and reach Ho Chi Minh City in nine days. The remainders will be delivered to the city in June and July.

The trains will be on trial run from Quarter 4 this year. Within the same time, other tasks like operations, training, technology transfer, and examination will be in progress.

Metro Line 1, which is 20 kilometres long with 3 sub-stations and 11 stations, is 83 percent complete and is expected to officially open for use in 2022. It is built at the total cost of more than 43.7 trillion VND./.

CPI in April records decline of 0.04%

The General Statistics Office (GSO) unveiled on April 29 that the consumer price index (CPI) in April slipped by 0.04% compared to the previous month but rose by 1.27% from the figure recorded last December.

This latest decline in the CPI can largely be attributed to a plentiful supply of goods coupled with a low consumption demand for electricity and water.

CPI in April climbed by 2.7% against the same period from last year, while the average CPI during the initial four months of the year saw an increase of 0.89%, the lowest rise since 2016, with core inflation increasing by 0.74%.

Among the 11 main groups of consumer goods and services throughout April, a CPI decline was recorded in four categories, including restaurant and food services (down 0.13%), housing and construction materials (down 0.43%), post and telecommunications (down 0.2%), and cultural, entertainment, and tourism services (down 0.11%).

Elsewhere, the surge in the CPI could be seen in six groups, including transportation (up 0.87%), beverage and tobacco (up 0.14%), and household appliances (up 0.11%), while prices remained stable in other groups, such as garment and footwear.

According to the GSO, there are a number of other factors behind the CPI increase during four-month period, including rising rice prices and the increasing consumption demand for sticky rice and other forms of delicious non-glutinous rice during the Lunar New Year festival, known locally as Tet.

These moves have served to make rice prices during the reviewed period climb by 7.76% against the same period from last year. Experts also attributed the CPI hike to rises in the prices of food, oil and gas, and educational services.

Along with reasons for the CPI increase, experts said the slight CPI decline was also affected by the Government’s deployment of support packages for residents and businesses negatively impacted by the novel coronavirus (COVID-19) pandemic.

In addition, railways, airlines, and travel firms have also offered attractive discounts to stimulate tourism demand, causing travelling ticket prices to decline.

April witnessed local gold prices move in tandem with global gold prices, while the US dollar in the global market rose amid a tightening control of interest rates in the United States, along with improved prospects relating to the implementation of the COVID-19 vaccination programme in Europe.

Workshop examines export opportunities for farm produce post COVID-19

Localities and businesses must focus on developing large-scale production by applying advanced technology and organic farming practices in order to generate high-quality products for processing and export, experts have said.

Do Lien Huong, deputy head of the Department of Market Research and Commodity Development, revealed that rice exports have significantly increased in recent times due to the rising global demand. In contrast, seafood and fruit exports have endured a downward trajectory due to disruption occurring in supply chains and high transportation costs.

Huong noted that despite agricultural trade witnessing a decline, it should not be considered a concern as food items remain essential goods amid the ongoing impact caused by the novel coronavirus (COVID-19).

Nguyen Hoai Nam, vice secretary general of the Vietnam Association of Seafood Exporters and Producers (VASEP), said that seafood exports last year faced falls of 1.9% compared to 2019 as a result of the COVID-19 impact.

The most influential factors include the high input costs and a serious shortage of workforce caused by social distancing measures which have ultimately led to a sharp decrease in production capacity, Nam confided.

Despite these drops, local seafood exports during the first quarter of 2021 recorded signs of recovery, securing a growth rate of 6.9% compared to the same period from last year. This recovery can largely be attributed to a sharp increase in export turnover in most products and major markets.

Nam predicted that while Asian countries such as India and Thailand are struggling with the COVID-19 pandemic, the United States, Japan, and China are poised to increase imports in the coming months, offering Vietnam plenty of opportunities to boost production and exports. Yet, he also noted seafood exports would be affected by high transport and input costs.

For fruit and vegetables, Nguyen Thanh Binh, chairman of the Vietnam Fruit and Vegetables Association, revealed that the import-export turnover of the products has suffered a decline since 2019, due to the dual impact of both trade wars and COVID-19.

Vietnamese production and consumption of fruit and vegetables is expected to rebound and enjoy strong growth momentum moving forward, Binh stated.

He went on to underline the need to promote regional connectivity as it forms a sustainable and highly-effective production value chain, whilst also applying high technology and Good Agricultural Practice, such as VietGAP and Global GAP in farming.

The State should provide timely market information and launch economic stimulus measures to support enterprises in order to help them weather the COVID-19 crisis, Binh noted.

The workshop was co-hosted by the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD) in conjunction with the Australia supports Vietnam’s economic reform program (Aus4Reform).

HCM City needs a push to become a global financial centre: conference

With a favourable business environment and rapid and steady economic growth, HCM City meets all essential conditions to become a global financial centre, a conference heard in the city on Tuesday.

The city contributes around 22.3 per cent to the country’s GDP and 27 per cent to the national budget, and attracts 34 per cent of the country’s FDI.

It has excellent financial infrastructure with numerous banks, financial intermediaries, investment funds, and financial firms that play a vital role in attracting and distributing capital.

Dr Tran Du Lich, member of the Government Advisory Group, said the city is a gateway to major financial centres and capitals in Southeast Asia, and the idea of turning it into a regional and international financial centre is not new.

However, the growth of the financial sector, especially HCM City’s, has not been consistent and the dependence on the banking system for capital has been significantly distorting the financial markets, he explained.

Key characteristics of international financial centres include a deep, liquid and sophisticated capital market, and competitive tax and regulatory regimes designed to attract foreign investment in financial services.

HCM City must become a development locomotive for the country and the key economic regions in the south, and drive the development of the Mekong Delta and the Central Highlands.

It needs to strengthen its competitiveness in terms of institutions, human resources and infrastructure.

It should continue to aim for sustainable growth by improving its competitiveness and growth quality through healthy economic restructuring, and ensure a favourable business environment for enterprises and encourage start-ups, innovation and smart-city measures.

Lich said the plan to make HCM City a regional and international financial hub should be stated clearly in the national strategic economy to ensure the National Assembly and Government could develop policies and specific mechanisms.

To turn HCM City into a financial centre requires three phases, with the first phase from now until 2025 used to complete all the necessary infrastructure for the financial centre, he said.

In the second phase until 2035 the key mission would be to complete its institutional, human resources and urban infrastructure requirements, he said.

The third phase from 2035 should develop an international financial market, he added.

Experts said with strong support from the Government and local authorities, HCM City would graduate from being a national financial centre to a regional and then international centre in future years.

Viet Nam-US trade has new opportunities post-pandemic

Viet Nam plans to further enhance trade and investment cooperation with the US, especially after the COVID-19 pandemic ends, said a city official.

Speaking at a seminar on Wednesday Viet Nam – US Trade, Nguyen Huu Tin, director of the Investment and Trade Promotion Centre in HCM City (ITPC), said: “US-Viet Nam trade has made impressive progress in recent years, with the US currently being Viet Nam’s largest export market.”

Last year, Viet Nam ranked sixth in the world and third in Asia in exports to the US, after China and Japan, he said.

The US is shifting from imports of goods from traditional exporters to other emerging countries, including Viet Nam. “Viet Nam is gradually asserting its position as the leading partner of the world’s largest economy,” he said.

Tin attributed the achievement to “an open, dynamic and practical cooperation” of the two countries’ governments and business communities.

The US has encouraged American enterprises to establish production and value chains between the two countries.

Viet Nam can benefit from its control of COVID-19 by enhancing trade with its partners, Tin said. Vietnamese businesses should grasp the “golden opportunity” to innovate and improve production and business capacity to exploit the US market, he added.

FDA registration

Nguyen Ba Thien Thu, chief representative of Registrar Corp, an FDA consulting firm, explained that the US Food and Drug Administration (FDA) regulates food, beverages, drugs, medical devices and cosmetic products available for commercial distribution in the US.

“Local businesses need to understand the FDA standards for exporting goods to the US market,” she said.

The FDA regulations include safety and sanitary requirements for products exported to the US. To export food to the US, businesses are required to register wirh the FDA, while complying with the new labeling regulations and the Food Safety Modernisation Act (FSMA) by FDA.

Some local businesses are facing problems reaching required standards and quality, especially on completing procedures for FDA certification.

In the future, local enterprises must have FDA certificates for their products to be exported to the US.

To reach FDA standards, Vietnamese enterprises must have input materials that meet those standards. The US market has high technical and high product quality requirements.

Experts said Viet Nam should complete its system of standards and regulations to improve the quality of exports to the US. This will promote the competitiveness of Vietnamese products in the global market.

The event was organised by the Investment and Trade Promotion Centre in HCM City.

Experts impressed by Vietnam’s renewable energy adoption

The UK’s Financial Times on April 26 ran an article highlighting that the expansion of Vietnam’s wind and solar farms is proving crucial to powering its economic growth.

According to data from Irena, an inter-governmental renewable energy organisation, Vietnam’s production from solar and wind increased 237 percent and 60 percent, respectively in 2020, raising the share of these sources to a quarter — almost a decade ahead of schedule, it wrote.

With an average speed of more than 10 metres a second, Vietnam’s territorial waters rank in the top 10 percent of the windiest places on the planet.

The seas off the provinces of Binh Thuan and Soc Trang where developers plan to build multibillion-dollar offshore wind farms are also relatively shallow, with depths of 20 metres to 50 metres.

The author quoted Thu Vu, an energy finance analyst at the Ohio-based Institute for Energy Economics and Financial Analysis as saying that Vietnam’s renewable energy adoption is impressive. The higher cost of offshore units relative to onshore or nearshore wind, the expert noted.

Ian Hatton, Chair of Enterprize Energy, a UK-renewable energy company, said in order to reduce cost, Vietnam must improve its infrastructure, build substations, and lay cables along the seabed for offshore production, or finding alternative solutions. Enterprize is experimenting with converting wind energy and seawater to hydrogen.

He also noted an example of the dilemma facing low- and middle-income nations such as Vietnam. Accordingly, if they produce enough energy to meet demand without improving transmission infrastructure, additional capacity could be squandered.

But William Gaillard, Vice President of wind turbine manufacturer Vestas, believed that Vietnam has “shown a path for others to follow, adding that the combination of an attractive feed-in-tariff with ambitious installation targets and a transparent permitting process has been a critical factor in unlocking this market./.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes

Marie Damour is one of a few high-level American diplomats in Vietnam who have an intimate connection with Ho Chi Minh City.

After first coming to the city in 2002, she left and then returned 17 years later for a new position — U.S. Consul General in the city.

Damour welcomed Tuoi Tre (Youth) newspaper for an open talk ahead of this long holiday weekend to celebrate Reunification Day (April 30) and International Workers’ Day.

Her reason is simple: “I was trained to be an educator and historian. And we have a saying in English that ‘those who do not remember history are doomed to repeat it’.”

An international city with an authentic vibe

What was your impression when you arrived in Ho Chi Minh City for the first time in 2002?

I arrived in Vietnam in the summer of 2002. And after a very long flight from Washington D.C. to Hong Kong and then Ho Chi Minh City, I landed at Tan Son Nhat Airport at 11:30 pm. I got into the line for people who had diplomatic passports. And up to a certain point in the airport, I could see the people from the embassy who were there to meet me behind the immigration counter. But at the immigration counter was a very professional and stern-looking gentleman with his uniform on. I handed him my U.S. passport, which lists the state where I was born — Kentucky. And there was a very stern gentleman, and it was very late, and I was very tired. He looked down at my passport. And he looked up at me. And he looked down. And when he looked up again, he said ‘KFC.’

It took me a moment. Then, I was like ‘Yes, yes, I am from Kentucky! We have Kentucky Fried Chicken! Thank you very much!’ And I knew I was going to like Vietnam. Because that was such an unexpected welcome. But I thought it also was indicative since that was still relatively early — only seven years into the relationship. The U.S. Consulate General had only been officially founded around two years before that. So the relationship was still very young. And there was a man who was making a connection between a very iconic American fast food company and my birthplace. So I thought that was going to be a good two years.

During the mission, I lived in the Indochine Park Tower in the central area of Ho Chi Minh City. Most of the people in the tower were diplomats and business people. A lot of the American businessmen there were Vietnamese American.

In your eyes, how did the city change as you came back in 2019? What do you love about the city regarding its culture, lifestyle, cuisine, and people?

When I arrived in 2019, I thought it would look like the city that I left in 2004 and to some degree it did. I recognized the traffic, I recognized the airport. But when I got to my apartment near the Independence Palace, I had a beautiful terrace and it looked out over the city and it was night-time, the entire skyline of the city has changed in the 15 years I was away.

The city’s development of the physical infrastructure is really indicative of the economic and social development that the city has undergone in 15 years. In a lot of ways, Ho Chi Minh City feels like a much more international city now than it did 17-19 years ago. From the outside, the city has definitely transformed itself into a modern 21st century metropolis, but from the inside, it has remained unique and authentic and true to itself.

Here, you can find Italian, Brazilian, Korean, and even Ethiopian food, along with world-class Vietnamese cooking. Ho Chi Minh City is truly a metropolis with so much to offer in terms of history, cultural heritage, monuments, eating, and shopping. As for the lifestyle, I find it to be a very relaxing and pleasant place to live. Vietnamese people are warm and very welcoming to foreigners, and the Vietnamese mindset of ‘work to live’ is apparent in everything they do.

I usually walk my dog in the mornings, and it’s always nice to see how people from this city gather on the streets to eat a bowl of pho with friends. It shows that the Vietnamese people value relationships and good food – and that to me is what makes living and working in Vietnam such a memorable and rewarding experience. I have always felt at home in Vietnam.

Marie Damour (middle) attends the groundbreaking ceremony of a project to clean up dioxin contamination hosted by the United States Agency for International Development (USAID) and Vietnam’s Ministry of National Defense at Bien Hoa airport on December 5, 2019. Photo : U.S. Consulate General in Ho Chi Minh City

‘If I had been born in Vietnam, that could have been my father…’

American diplomats usually avoid talking about April 30, so why did you accept our invitation for an interview?

Because we cannot focus on the future if we do not respect the past. The U.S. and Vietnam have a shared history. There is a lot about that shared history, which is very sad.

I was trained to be an educator and historian. And we have a saying in English that ‘those who do not remember history are doomed to repeat it.’ So when you think about how the U.S. and Vietnam renewed our diplomatic relations 25 years ago, the bedrock of that engagement between our two countries was our work on addressing the legacies of the war.

It was the people-to-people exchanges between veterans who had fought on opposite sides. It was the combined effort to identify missing-in-action soldiers. That was how we are engaged as governments and as people, and everything else came from that. So even if millions may be happy and millions may be sad, this is the reality of our history.

If we pretend it does not exist, it does nothing to help us move forward with our relationship. And I personally believe part of the strength of the U.S.-Vietnam comprehensive partnership is that we can discuss these sensitive issues, we can work together to address those legacies of the past.

It is known that your father fought in the war in Vietnam. How do you know about the war through your father’s account?

One of the first things that I did here as Consul General was going to Da Nang for a ceremony, where we were returning two sets of remains believed to be American soldiers, which had been discovered as part of this search for our war dead. While I was watching these coffins draped with the American flag, all I could think of was that it could have been my father. Because when I was two years old, my father came here and he was stationed in Phu Bai, up in Thua Thien-Hue. He came home, but so many other fathers did not.

Marie Damour visits Phu Vang District Medical Center in Thua Thien-Hue Province on April 8, 2021. Hue is where her father stationed during the war. Photo : U.S. Consulate General in Ho Chi Minh City

I do not think you have to be Vietnamese or American in order to appreciate the sacrifice that people made for their countries. And to respect that, even if at the time they were your adversary, they paid that price for their country in the same way we paid the price for ours. Whatever you think about the war between the U.S. and Vietnam, you have to have respect for that. And so we want to make sure we are doing that.

Ambassador Daniel Kritenbrink particularly has made some very symbolic visits to two different cemeteries and to important sites during the war. He and I went together to the martyrs’ cemetery here in Ho Chi Minh City.

And I think he was the first ambassador to visit that cemetery. He and I talked about it a little after that. It was personally meaningful because, first of all, they were not just from the war with the U.S., they were patriots who had sacrificed in other wars that Vietnam had fought.

When you look at the headstones and see the names, and see the dates of birth and the dates of death, they make you realize that it was young men who paid that price. And for me, it was very touching. Because if I had been born in Vietnam, that could have been my father.

Ambassador Kritenbrink said that if the two countries cooperate well to resolve war legacies, it would open up opportunities for more strategic cooperation. Do you agree?

I think he was very right. The willingness of both countries is critical for any partnership. Both countries need to be willing to address war legacies. I know many families in the United States are incredibly grateful for the work that the Vietnamese government and people have done to help us address our missing war dead.

The U.S. is absolutely committed to addressing the legacies of the war. Whether it is helping Vietnam account for its own missing. Whether it is cleaning up contaminated soil in the cities of Bien Hoa or Da Nang. Whether it is eradicating the unexploded ordnance, particularly up in the central region of the country. Or whether it is helping people with disabilities, regardless of the source in these eight or nine key provinces. That is an incredibly important part of our relationship.

From old adversaries to partners in peace

You are a daughter of an American veteran and now a senior U.S. diplomat in Vietnam, we think you understand the value of peace and friendship very well, right?

Marie Damour, Ambassador Daniel Kritenbrink, and U.S. Defense Attaché Colonel Stevenson pay respects at the Ho Chi Minh City Military Martyrs’ Cemetery on June 21, 2020. Photo : U.S. Consulate General in Ho Chi Minh City

When you think about how the relationship has changed in 25 years, you think about economic development, not just in Vietnam but in the U.S. as well. The results of that peace were that we could begin a friendship that allowed both our countries to develop economically. And people’s lives are demonstrably better than they were 25 years ago from both of our countries.

One of the great values of reflecting on history is the lesson that it offers. When you look at how quickly the U.S. and Vietnam went from being adversaries in a war to being partners in peace, I think there is real value to the rest of the world to see why it matters that you can set aside. You never forget what happened in the past, but if you focus on the future, on that friendship, on the bridge that can be built, look at how much we can do together.

You mentioned that the two countries are partners in peace. Did you mean the support that the U.S. offers Vietnam in the United Nations peacekeeping program in South Sudan?

From a government perspective, looking at the role that Vietnam is playing, you know Vietnam became the president of the Security Council at the United Nations (UNSC) in April. Vietnam is playing a much bigger role in the international community than when I was here 15 years ago.

I am also impressed [by Vietnam’s delegation to South Sudan]. I have gone to a couple of ceremonies over it and the [175 Military Hospital in Ho Chi Minh City] to watch the delegation come back from South Sudan. Then, I was just over at Tan Son Nhat to say farewell to the third group of medical personnel who were going off. We have heard from the U.S. personnel in South Sudan about how impressive the Vietnamese hospital unit is in the work, which they do in their effort to connect with the community, and that they are serving both the UN peacekeepers and the local population.

I think that collaboration with the U.S. helps with the training, as we do it with many countries who are involved in UN peacekeeping. But the symbol of two former adversaries working together to create peace on an entirely different continent is incredibly important. Because if we can make peace, and be partners in that way, then the peacekeepers can help those two countries that are fighting right now make peace.

The land of future

Let’s return to bilateral relations between the two countries. The first Vietnamese ambassador to the U.S. after the war, Le Bang, once said that the Vietnam-U.S. relationship had been rocketing after normalization. What do you think about his statement?

When we renewed our diplomatic relations 25 years ago, there was almost no trade between the U.S. and Vietnam.

And even when I was here in 2002, I remember it was probably somewhere like US$400-600 million in two-way trade. And nowadays, it’s almost US$90 billion — which is a huge growth figure.

Marie Damour, Ambassador Daniel Kritenbrink, and U.S. Defense Attaché Colonel Stevenson pay respects at Bien Hoa (also known as Binh An) Cemetery on June 21, 2020. Photo : U.S. Consulate General in Ho Chi Minh City

Before I came to Vietnam, I went around and spoke to all the different agencies in the U.S. government. I went and talked to the U.S. Chamber of Commerce, to different representational groups, so I can learn how Vietnam had changed at least from the American perspective.

It is almost impossible to overstate how enthusiastic people in Washington were about Vietnam, whether it was the comprehensive partnership, the critical role that Vietnam plays in our Indo-Pacific strategy, or the possibilities of expanding trade.

Even though we still do not have a formal free trade agreement and there are areas we need to work together, there is that enthusiasm. It is the belief that Vietnam represents both an opportunity for American businesses to invest, as well as to send and sell American products, and a trust in Vietnam as a maturing and developing economy.

How do you comment on the fight against COVID-19 pandemic of Vietnam and Ho Chi Minh City in particular, in the context that we are conversing directly without having to wear a face mask?

I am really impressed. Everybody has to recognize that Vietnam has done possibly the best job in the world, containing COVID-19 with aggressive measures that the government took to limit exposure, to do contact tracing, and to enforce quarantine. But they could not have been successful if the people of Vietnam had not been so disciplined. Everybody immediately started wearing masks everywhere. And every time there’s a small outbreak, everybody does it again.

U.S. Consul General Marie Damour (second row, middle) and Vietnamese leaders, including Deputy Minister of Defense Lieutenant General Nguyen Chi Vinh, participate in the commendation of the first level-2 field hospital for completing their duties in South Sudan, held in Ho Chi Minh City, December 5, 2019. Photo : U.S. Consulate General in Ho Chi Minh City

It is really impressive that Vietnam has done such a terrific job. We particularly appreciate the transparency of the Vietnamese government in sharing information, whether it was the genetic sequencing that everyone around the world has been using to develop the vaccines, or the information on where the clusters are happening. It is because knowing how the disease was transmitted is incredibly important for the rest of the world to control the pandemic. You were one of the first countries affected and without that transparent exchange of information, the rest of the world would have been at a much greater disadvantage. So it has been a real privilege to watch.

What is your comment on the mutual efforts to fight the pandemic between the two countries, especially the possibility of the U.S. transferring the technology of vaccine production to Vietnam?

We talk a lot about additional cooperation on pandemic or healthcare-related issues. There has been a lot of discussion, particularly up in Hanoi with the central government about access to the various vaccines that are available.

I know Vietnam is now in human trials to have your own, which is incredibly important. Again, 20 years ago, you would not necessarily have seen that.

President Joe Biden, when he came in, announced US$2 billion to COVAX under the WHO. And there have been two recent deliveries for Vietnam, which is a start. Part of [Vietnam’s] problem with being so successful in containing [the pandemic] is perhaps the vaccination came right next. But there will be another $2 billion fund through COVAX by 2022. So as new vaccines come online and production ramps up, I fully expect to see a stronger flow into Vietnam.

Thank you so much!

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The Ministry of Industry and Trade has decided to continue imposing anti-dumping duties on certain aluminium products originating from China with a tax rate from 4.39 per cent to 35.58 per cent after carrying out the first review.

On September 28 last year, the Ministry of Industry and Trade issued a decision to impose anti-dumping duties on some aluminium products originating from China with a rate from 2.49 per cent to 35.58 per cent.

The ministry initiated the investigation into the anti-dumping case in January 2019. The investigation found injuries to the domestic aluminium industry. Specifically, most domestic producers suffered losses, many production lines had to stop operating and a large number of workers lost jobs.

The major cause was found to be the dumping of aluminium products originating from China at margins of 2.49 per cent to 35.58 per cent.

In mid-2020, the ministry received an inquiry to conduct the first review on anti-dumping duties on Chinese aluminium products.

After the review, the ministry issued a decision on April 20 this year which took effect five days later to continue levying anti-dumping duty on some aluminium products originating from China.

On the same day, the ministry also issued a decision after carrying out the first review about the imposition of anti-dumping duty on some painted flat-rolled alloy and non-alloy steel products originating from China and the Republic of Korea. Accordingly, the anti-dumping duties of 2.56 per cent to 34.27 per cent were imposed.

April industrial production expands 24.1 per cent

Viet Nam’s index of industrial production (IIP) in April rose by 24.1 per cent year-on-year, driven by the positive impact of free trade agreements (FTA), according to the General Statistics Office.

The IIP in the first four months of 2021 enjoyed a year-on-year increase of 10 per cent, boosted by the growth of manufacturing and processing (12.7 per cent), electricity production and supply (6.6 per cent), and water supply and waste and wastewater treatment (7.5 per cent).

Key industries that recorded high increases include metal production (37.9 per cent), motorised vehicle production (32.9 per cent), and furniture production (17.6 per cent).

On the contrary, the mining sector posted a decrease of 5.7 per cent against the same period last year.

The number of labourers working in industries as of April 1 rose by 1.5 per cent month-on-month, and 1.8 per cent year-on-year.

To address inventory and promote production in the future, the Ministry of Planning and Investment proposes localities continue reforming administrative procedures, simplifying specialised inspection procedures, and implement the Prime Minister’s Decision approving the Action Plan on improving competitiveness and developing logistics services.

Sectors are advised to focus on supporting the development of the domestic markets, studying consumption stimulus policies for locally-made products, and developing supporting industries.

Vietnam could lead SE in renewable energy development: German newspaper

Vietnam will soon lead Southeast Asia in renewable energy development, Germany’s Energiezukunft highlighted in its latest article, describing the country’s energy transition as very impressive.

Vietnam is experiencing a solar boom, with 11.6 GW of power of this kind added to the national grid last year, according to the International Renewable Energy Agency.

Only 105 MW of solar electricity was installed in the country in 2018, and the figure rose to 5 GW in only a year later, and even to 16.5GW in 2020, the article said, adding this is a considerable increase as compared to other nations at the same time.

As demand for energy in this Southeast Asian country is forecast to shoot up dramatically in the coming time, big players in the field have invested heavily in solar energy plants. Last summer, a 45 MW plant was put into operation in the central province of Ninh Thuan by Sharp Energy Solutions Corporation, contributing some 76 MWh per year. The firm is carrying out another five 245 MW plants in the country.

The successful solar energy story in Vietnam was sparked by a special market mechanism, which drew much interest from investors. Under the purchasing power at fixed prices, investors would sell the renewable energy they create to the grid at a fixed price – one that would more than cover the cost of investing in renewable energy facilities.

Vietnam could carry out more bidding mechanisms for solar projects, in which all renewable energy projects which are not subject to the fixed price mechanism are able to join.

The Vietnamese Government is planning to double the power capacity in the next 10 years. Accordingly, 29 percent of the nation’s electricity will come from renewable energy source by 2030, and 18 percent from hydropower.

Capacity of renewable energy is envisioned at 45 GW, much higher than the previous plan of 27 GW – the level which is achievable within 2021 or next year as the latest.

Although the energy transition is taking place rapidly, coal-generated electricity accounted for 28 percent of the nation’s total power. However, renewable energy will take the lion’s share by 2045./.

Ca Mau develops high-quality rice farming

The Mekong Delta province of Ca Mau will step up the application of advanced technology to expand high-quality rice material farming, according to Director of the provincial Department of Agriculture and Rural Development Le Thanh Trieu.

Under the province’s planning, local farmers will cultivate rice on an area of some 110,000 ha, with an average yield of 4.7 tonnes per ha by 2025. Ca Mau will strive for a rice output of 520,000 tonnes by 2025, which is expected to then remain stable until 2030.

Trieu said the focus will be sharpened to develop organic rice materials that meet both domestic and international standards as well as promote the value chain of the food.

In the meantime, the shrimp – rice rotary cultivation model will be developed with a view to increasing the amount of certified organic shrimp, he added.

Farmers are encouraged to shift to growing high-quality rice varieties that are resilient against disease.

Figures from the department show that the local rice growing area increased to 117,390 ha in 2020 from 112,534 in 2017. The yield surged by an average of 0.64 tonnes per ha to 4.54 tonnes in 2020.

The department turned 50,000 ha of ineffective fields into cultivating high-yield rice that is resilient to climate change. In particular, it has successfully planted the grain under international organic standards./.

Bac Giang moving towards digital transformation

The northern province of Bac Giang is striving to develop information technology infrastructure for digital transformation and also the development of smart urban areas.

According to Vice Chairman of the provincial People’s Committee Mai Son, Bac Giang targets its digital infrastructure being able to provide an average of 14 GB of data each month per broadband subscriber by 2025, with the figure to increase to 27 GB by 2030.

It also envisages that each 100 local people will be connected to 75-100 IoT devices by 2025 and 150-200 by 2030. Consideration is also being given to the construction of an information technology industrial park.

Son said that priority will be given to building and upgrading local fibre optic lines to serve the development of broadband services and smart urban areas.

The province is striving to expand its broadband infrastructure to all villages while having more than 80 percent of households connected to cable internet by 2025.

Half of the local population are to have e-payment accounts within the next four years and all residential areas will have 5G coverage.

By 2025, the locality will prioritise digitalisation in key sectors such as education, health care, transportation, agriculture, and the environment, and develop the provincial capital Bac Giang city into a smart and modern urban area.

According to Secretary of the provincial Party Committee Duong Van Thai, as digitalisation is an inexorable trend, the local Party Committee is working to issue a resolution on digital transformation right this month, having asked local authorities at all levels to join in the process.

Bac Giang province is home to 1,422 base transceiver stations (BTS), with 3G and 4G services covering the entire province. There are more than 1.77 million mobile phone subscriptions and over 1.25 million internet subscribers.

Total telecommunications revenue in 2020 topped 1.9 trillion VND (82.17 million USD). There are 658 IT and telecommunications enterprises in the province who earned over 153 trillion VND in revenue last year./.

Ba Ria-Vung Tau expanding IPs to welcome investment

New waves of investment coming to the southern province of Ba Ria-Vung Tau will push up demand for land rentals at local industrial parks (IPs), which in turn will need to be expanded.

According to the provincial IPs management board, the province is home to 16 IPs covering a total area of 9,054 ha.

Together they house 469 valid projects worth more than 20.09 billion USD, with occupancy rates standing at 52.35 percent.

Nguyen Anh Triet, head of the board, noted that the upcoming expansion of local IPs is in line with a Government decree as well as State regulations on the management and planning of IPs and economic zones.

The board proposed the addition of eight more IPs on more than 8,120 ha in the 2021-2025 period.

In response, Chairman of the provincial People’s Committee Nguyen Van Tho asked relevant departments and sectors to tightly monitor the establishment and expansion of local IPs, taking into consideration their investment effectiveness and impact on the environment and social welfare.

Nguyen Khac Thanh, General Director of Tin Nghia – Phuong Dong Industrial Park Joint Stock Company, said an immediate expansion is necessary to meet investors’ demand./.

Kien Giang province eyes 12.7 percent export growth in Q2

The Mekong Delta province of Kien Giang is aiming at 218 million USD in export revenue in Quarter 2, a year-on-year surge of 12.7 percent.

With this figure, total earnings from exports in the first half will likely top more than 355 million USD, accounting for 47.3 percent of the annual plan and up 2.3 percent year-on-year.

According to the provincial Department of Industry and Trade, the locality pocketed more than 136 million USD from exports in Quarter 1, down 15.5 percent year-on-year.

Of the total, rice brought home 42 million USD, seafood over 45 million USD, leather shoes 27 million USD, fruit and vegetables 5.66 million USD, and other products 15.17 million USD.

COVID-19 made it difficult for local firms to ship products to traditional markets, and processors also faced a shortage of raw materials due to climate change and diseases, the department said.

However, with sound business strategies, many companies were successful in fulfilling contracts and were able to ship products to markets on the road to recovery.

Local companies also received legal documents on the application of the Sanitary and Phytosanitary Measures (SPS) of WTO member states, which could affect the shipment of Vietnamese agricultural products.

The department also provided support and worked to remove bottlenecks in capital, materials, workers, trade promotion, and market development for local producers./.

HCM City lures $1.14 billion in FDI in four months

HCM City reported a foreign direct investment (FDI) influx of USD1.14 billion in the first four months of 2021, a year-on-year decline of 12.92 per cent.

Approximately $360 million was channelled into 100 new projects, primarily in commerce ($225.1 million ) and real estate ($125.8 million).

Meanwhile, $403 million was added to 30 existing projects and another $377.6 million was used for capital contribution and share purchases in a total 547 transactions.

Foreign investors pumped most of the capital in processing and manufacturing with $322 million, making up 28.2 per cent, followed by commerce with $321.2 million, real estate ($196.3 million), science and technology activities ($175.4 million), and education-training ($30.3 million).

Among 55 countries and territories investing in the city during the period, Japan took the lead with $494.4 million, Singapore second with $281.6 million, and the Republic of Korea was third with $97.7 million.

Hua Quoc Hung, head of the management board of industrial and export processing zones of HCM City, said the southern hub’s processing and industrial zones had lured $237 million as of late April, an increase of 26 per cent against the same period last year.

The municipal People’s Committee has devised a plan to meet with FDI businesses in a bid to improve investment climate and support the firms, as well as introduce major projects and the city’s investment plans for the next five years.

Japan’s Sumitomo Mitsui Finance Group acquires 49% stake in FE Credit

VPBank on Wednesday signed an agreement to sell a 49 per cent stake in FE Credit to Japan’s Sumitomo Mitsui Finance Group (SMFG) in a transaction that values the non-bank lender at US$2.8 billion.

SMBC Consumer Finance Company (SMBCCF), a subsidiary of SMFG, bought the stake.

Through this transaction, FE Credit is expected to receive support in capital resources, management capacity and experience in the consumer finance sector in Asia from SMBC Group, especially SMBCCF – a leading consumer finance company in the Japanese market. At the same time, this transaction will add a large amount of capital to VPBank, contributing to enhancing the bank’s financial potential to capture new investment opportunities in the market.

For SMBC Group, the investment in FE Credit is part of the group’s mid-term strategy to expand its business base in Asia. SMBC Group expected that this investment would create synergy in both sharing and acquiring business know-how of its partners.

FE Credit is currently the leading consumer finance company in Viet Nam with approximately 50 per cent market share, 20,000 service referrals nationwide, and over 13,000 employees. During the development process, FE Credit has consistently carried out the mission of “meeting the need to access official credit capital of all classes of the population in order to improve the quality of life”. With small loans, FE Credit is especially focused on serving middle and low income earners – a segment which has not yet been served by banks – to help reverse their dependence on “black credit”. FE Credit has served nearly 11 million Vietnamese people through its unsecured loan products and services so far.

SMBC is one of the three largest financial and banking groups in Japan, with total assets of over $2.1 trillion as of December 31, 2020. The group operates globally in retail banking, corporate banking, and investment banking, with a presence in more than 40 countries. SMBCCF is the leading consumer finance company in the Japanese market with more than 900 branches nationwide. In the Asia region, SMBCCF has established subsidiaries in Taiwan, Hong Kong, Thailand, and China.

M&A expected to soar in second half

Despite a drop in mergers and acquisitions during the pandemic, a breakthrough is expected in the second half of the year thanks to some billion-dollar deals in the making.

The foreign direct investment (FDI) report of the Ministry of Planning and Investment’s Foreign Investment Agency (FIA) in the first four months showed significant decreases in capital contributions and share purchases, with 1,151 instances (down 64.1 per cent) and a total investment of $1 billion (down 57.8 billion).

This can be explained by the fact that the economy and investment activities in the country were not yet impacted by COVID-19 in the first few months of 2020, so FDI and M&A activities were still quite dynamic during that time. Specifically, $827.3 million was poured into the economy through capital contribution and share purchases in the first two months of 2020, and the figure surged quickly to $2 billion in the first quarter and $2.48 billion in the first four months.

However, after one year hit by the pandemic, the FDI mobilisation and M&A deals’ value in the first four months of 2021 has reflected the worry of foreign investors.

“Amid the economic and financial instabilities during the past year, it is understandable that investors are holding their money and think a lot more before making any large investment decisions,” Nguyen Viet Cuong, an FIA senior expert, explained, but saying that FDI mobilisation in the first four months of 2021 was acceptable, compared to other countries.

“While there was a decline in the number of deals and M&A deal value in the first four months, the value of capital contributions and share purchases has soared by 10-30 per cent on-year,” added Cuong.

The average value of capital contributions and share purchases in the first quarter and four months of this year was estimated at $1,1 million and $870,000, respectively, while they were $793,000 and $772,000 last year.

According to the FIA, between January and April, industries like processing and manufacturing; real estate; wholesale, retail, vehicle repair; science and technology and professional activities have seen hundreds of M&A deals with hundreds of millions of dollars in value.

Singapore and South Korea were the biggest M&A investors with $265 million and $258 million these months, followed by Thailand, Taiwan, and Japan.

PDP8 expected to be tabled for government approval in June

The Ministry of Industry and Trade has been asked to revise and adjust the Power Development Plan 8 to submit to the government in June.

At the meeting between ministries and relevant authorities, which was hosted by Le Van Thanh, Deputy Prime Minister cum head of the National Steering Committee for Power Development, the Ministry of Industry and Trade (MoIT) was asked to review the draft Power Development Plan 8 (PDP8).

This masterplan was not approved in late March under the 2016-2020 government term as expected, though the MoIT on behalf of the Appraisal Council presented the report on the assessment of the draft PDP8 for the period of 2021-2030, with a vision to 2045. Accordingly, the Appraisal Council reached a conclusion that the draft PDP8 met the conditions to be submitted to the government for approval.

Previously, on March 18, the Appraisal Council organised the second meeting to vote to approve the appraisal report and the content of the masterplan. Four members agreed with the appraisal report and the master plan in full, while 22 others said they would approve the report and the masterplan if the latter was adjusted.

The report on assessment also mentioned that although the Ministry of Natural Resource and Environment approved the environmental impact report of the master plan, however, it is still necessary to adjust other contents of the master plan.

EVN, PetroVietnam and National Power Transmission Corporation (EVNNPT) have also expressed concerns about the content of the draft PDP8. Notably, the masterplan does not evaluate primary energy (energy sources found in nature that have not been subjected to any human engineered conversion process) or the proportion of local and imported primary energy in order to ensure national energy security as well as problems relating to imported materials namely liquefied natural gas (LNG) and imported coal, among others.

In addition, according to the above groups, the designed power transmission system has a large capacity to accommodate the registered renewable energy generation capacity and future potential. However, there will be problems if renewable energy and power transmission projects are not implemented synchronously, which will cause waste for both the investors and the state. Thus, EVN, PetroVietnam, and EVNNPT requested further adjustments to the draft to better suit current realities

Furthermore, numerous power grid projects were named without deciding on an actual location, which may impact the land clearance process and prolong the time for land clearance compared to the timelines stipulated in the draft PDP8.

Ninh Binh proposes to build airport and remove thermal power plant

Ninh Binh People’s Committee has proposed building an airport to support tourism development and simultaneously removing a thermal power plant.

In a report submitted to the prime minister, the province requested adding its own airport to the national airport planning in 2021-2030 with a vision to 2050.

According to the proposal, the airport would be constructed in 2021-2025 from private capital, with state investment only needed to construct infrastructure connecting to the airport.

The province has highlighted two potential locations for the project, in Kim Son and Yen Khanh districts.

The airport in Ninh Binh would be able to handle planes the size of A320 and A321 models to welcome tourists. According to the province, Ninh Binh has great potential to develop its tourism sector with a diverse landscape including Trang An Landscape Complex and Hoa Lu Ancient Capital, among others.

The province forecast that by 2025, it would welcome 8-9 million passengers, including 2.5 million foreigners.

The province has submitted a similar proposal early this year to the Ministry of Transport.

According to the draft master plan on the development of the national airport network to 2030 with a vision to 2050, the Civil Aviation Administration of Vietnam has proposed to have 26 airports by 2030, 14 of which will be international airports. The number could reach 30 by 2050.

At present, Vietnam has 22 airports in operation, nine of which are international and 13 domestic. Seven airports are located in the north, while seven others are in the central region. The remaining eight ones are located in the south.

Along with the airport, the province is seeking the prime minister’s approval to stop the operation of the 100MW Ninh Binh Thermal Power Plant and remove the 220kV substation from the province. The thermal power plant has been operating since 1974.

Singaporean startup pours $15 million into Vietnam’s cashback market

E-commerce cashback platform ShopBack has injected around $15 million into Vietnam with a view to creating a new shopping habit for local shoppers.

Truc Nguyen, country manager of ShopBack Vietnam said that the startup unveiled its beta launch in Vietnam in late 2019 and made an official debut last August. It has continuosly improved the app and invested $15 million in the local market. To date, VND22 billion($956,520) in cashback has been given out to ShopBack users in Vietnam.

“Depending on the market conditions, user demand, and readiness of our technical and product partners, we will expand our offerings and raise more investment to make cashback a new shopping habit in Vietnam,” she said.

ShopBack is backed by e-commerce group Rakuten Group Inc., one of the better-known companies that dole out cash-back rewards for online purchases. Other investors into the startup are EV Growth, Temasek Holdings, and Credit Saison, among others. ShopBack has raised a total funding of $134 million since 2014.

The increasing number of internet users, rising internet penetration, and steady increase of the e-commerce share of total retail sales in Vietnam makes it a core and high-potential market for ShopBack. Vietnam presents a tremendous opportunity for the startup to grow and succeed in the digital space, with large marketplaces such as Shopee, Lazada, Tiki, and Sendo – all of whom are its merchant partners – experiencing record-breaking growth in the past years.

The country manager said that it will focus on increasing the number of partners and clients in the next 2-3 years. With the current growth trajectory, ShopBack is likely to reach 2 million users in Vietnam.

In line of booming e-commerce demand, Vietnam has welcomed more online cashback platforms such as Finhay, Cashbag, Catback, and ShopBack. However, there are aslo some fraud cashback scams that customers need to be aware like consumer rewards app MyAladdinz. There is a key difference between legitimate players from fraudulent ones, which are operated like multi-level platforms. They require shoppers to submit money to the apps to receive rewards, after a short time they will shut down and steal all users’ money.

Proactively welcoming the fourth FDI wave

The COVID-19 pandemic is changing the global economic structure, breaking production and circulation chains, promoting new technology development and “rectifying” investment flows. In that context, attracting foreign direct investment (FDI) into Vietnam also needs to be adjusted to suit the new situation.

Entering its 33rd year of implementing the open-door policy to attract foreign capital, up to now, FDI inflows have become one of the important drivers of Vietnam’s economic growth with a significant increase in theircontribution to GDP.

By the end of 2020, the whole country has 33,070 valid FDI projects with total registered capital of over US$384 billion, the implemented capital having reached US$231.86 billion, equalling more than 60% of the total registered. FDI is present in all 63 localities in the country and is invested in 19 out of 21 industries in the national economic sub-sector. The FDI sector accounts for a large proportion of total industrial production value and the total export value of Vietnam, and revenues to the State budget have steadily increased over the years.

However, along with the positive contributions, the limitations of foreign capital flows have also been clearly revealed. Of which, the biggest limitation is the low level of connection and spread of the FDI sector to the domestic investment sector; the attraction and transfer of technology from the FDI sector to the domestic investment sector not meeting expectations, and limitations in attracting FDI in a number of priority industries and sectors and from multinational corporations. In addition, there has been a phenomenon ofsome enterprises not strictly following the law on investment or regulations on environmental protection.

According to some economic experts, the impact of the COVID-19 pandemic is an opportunity for Vietnam to actively attract new generation FDI in a more selective manner, with quality, efficiency, technology and environmental protection as the main evaluation criteria. In order to catch up with the flow of the fourth wave of FDI taking place globally, Vietnam needs to be more adaptive, proactive and creative.

At the macro level, the Government will focus on solving a number of major issues. These are to maintain the stability of the macroeconomic, socio-political environment, a competitive advantage of Vietnam in attracting FDI; focus on improving the quality of institutions, policies and laws in order to implement the policy of foreign investment cooperation with priority and selection associated with the goal of improving competitiveness, building an independent economy and prioritising investment in infrastructural development.

At local level, it is necessary to organise and support effectively and promptly investors to build projects with the fastest speeds, the shortest times and the highest levelsof effectiveness through the reform of business and administrative procedures, especially procedures for land and land clearance, and so on.

Enhancing tourism development in the new normal state

The complicated development of the COVID-19 pandemic has left both types of international tourism, inbound and outbound, almost paralysed; therefore, domestic tourism has been identified as the salvation to gradually restore the country’s smoke-free industry.

The importance of domestic tourism

According to travel experts, the COVID-19 epidemic has caused the tourism sector to be full of hardships but also offered an opportunity for the sector to look back and learn lessons from the crisis. One of the most important lessons is to re-realise the importance of domestic tourism in order to balance development policies among different types. Vu The Binh, Standing Vice Chairman of Vietnam Tourism Association said that previously, domestic tourism was not considered a key branch, so did not received proper attention. The demand, preferences, trends, favourite products of Vietnamese tourists or tourism services serving Vietnamese people have not been clearly shaped. The relevant agencies should develop a strong domestic travel market even after the pandemic is controlled completely.

The statistics of the Vietnam National Administration of Tourism showed that the number of domestic tourists was only 30 million in 2011 but increased to 85 million (nearly tripling) in 2019, equal to an average growth rate of about 15% per year. Trip time as well as spending of domestic tourists is increasing by an average of 3.7 days and VND1-1.6 million. In 2015, the domestic tourists only contributed VND158 trillion to the total revenue of the sector and VND334 trillion in 2019, with an average increase of about 20.5% per year. This showed that during 2011-2019, before the pandemic appeared, domestic travel saw positive growth. Currently, Vietnam is controlling the epidemic quite well and a series of companies and travel service providers are offering promotions to stimulate demand, so the purchase of domestic tours and products has increased sharply. Airlines must continuously increase supply capacity and open more domestic routes. Many accommodation establishments in “favourite” tourist destinations have to announce “out of rooms” during the upcoming holidays. These are proof that domestic tourism is a potential market. If effective exploitation policies are implemented, this market will ensure the sustainable development of the whole sector.

In response to urgent requirements about the need to have a specific strategy to promote domestic tourism, towards increasing the resistance of Vietnamese tourism, Vietnam Tourism Association, in collaboration with the Ninh Binh Provincial Department of Tourism and Tourism Association, held the 2021 National Domestic Tourism Forum themed “Domestic tourism – The driving force to restore Vietnam tourism in the new normal state”. The event featured the participation of leaders from travel management agencies and nearly 500 enterprises around the country. At the forum, Minister of Culture, Sports and Tourism Nguyen Van Hung affirmed that in recent years, Vietnamese tourism sector has taken the number of visitors and revenue from the international market as a measure of the tourism development’s effectiveness. This is about to change. The tourism sector needs to go firmly on both international and domestic feet.

Linking and diversifying products

According to the tourism sector’s leader, four groups of measures should be implemented to develop domestic tourism. Firstly, travel businesses should soon restructure themselves and recalculate important and key aspects of domestic travel business. Secondly, it is essential to re-study the domestic tourism market. Thirdly, the linkages should be strengthened on the basis of developing unique tourism products and contributing to spreading their values. Lastly, relevant agencies should focus on gradually forming culture in destinations.

It is a fact that with international travel businesses having also shifted their attention to domestic tourism, the competition in this “territory” has become even more fierce. That situation requires tourism service providers to enhance their linkages and coordination to share benefits while finding ways to self-position their travel brands through the development of diversified but unique tourism products. According to Director of the Travel Department under the Vietnam National Administration of Tourism Nguyen Quy Phuong, the COVID-19 pandemic has significantly changed the needs and tastes of tourists regarding safety, experiences of nature and the ecosystem, small groups, short time, and technology applications. Therefore, the localities and enterprises should proactively innovate, create and develop new products in line with the customers’ demand.

In recent times, several units have built new tourism products that have attracted a large number of visitors such as tours to the Yoko Onsen Quang Hanh hot springs, Ha Long Bay by seaplane, Hoa Lo Prison at night, and air balloon experiences in Hanoi’s Ba Vi District. The introduction of these new products has contributed to creating an exciting atmosphere for the domestic tourism market, bringing more options to travellers. To promote domestic tourism in Vietnam, tourism development orientations must ensure security, safety and principles of respect for the environment, harmony with nature, respect for local culture and identity, proactive adaptation to the epidemic and sustainable development.

In addition, the experts noted that the Government, ministries and agencies should make policies and solutions to remove difficulties for the enterprises, especially small and medium-sized ones, in facing COVID-19 outbreaks. The direct assistance includes financial support, tax exemptions and concessional loans. The indirect supports are human resources training, the promotion of common destinations. The joint efforts from all tourism service providers, management agencies and relevant ministries will create a positive ecosystem for boosting domestic tourism development, thus ensuring the operation and growth of the tourism sector in the new normal state.

Hanoi works to ‘refresh’ tourism image to lure visitors

As one of the country’s tourism markets, Hanoi is rolling every effort to ‘refresh’ the image of tourism to lure domestic visitors, with a focus on creating new experiences and strengthening connection with other localities to develop more attractive tourist products.

A night tour at the Hoa Lo Prison historical site was launched to provide visitors with a unique experience with a combination of sounds and lights which change as they walk through different rooms inside the prison-turned-museum.

Visitors will be filled with a range of special emotions, from sympathy for prisoners in the gruesome conditions of a colonialist prison to respect for their resolute resilience and fighting spirit for national independence.

According to head of the site’s management board Nguyen Thi Bich Thuy, Hoa Lo Prison welcomes hundreds of visitors every year. The site has also chosen as a venue for extracurricular activities of many schools to educate their students about the country’s revolutionary tradition and patriotism.

The management board has coordinated with travel agencies to launch two night programmes at the site, which have received much appreciation from visitors.

In addition to the night tour at Hoa Lo Prison, many other new tourist products have also been launched to welcome back visitors to the capital city, including tours to explore Thang Long Imperial Citadel, Indochinese styled buildings in Hanoi, and places of interest along Red River such as Chem and Soc temples, Bo De Pagoda, Bat Trang pottery village, and Me Linh flower village.

Of which, the tour to Indochinese-styled buildings, which is designed by travel company Hanoitourist, helps visitors to gain a closer insight into typical buildings constructed in Hanoi in early 20th century, namely the Sofitel Metropole Legend, the Hanoi Opera House, the National Historical Museum, and the Government Guest House.

Meanwhile, the Hanoi Tourism Department in coordination with tourism departments of Ninh Binh, Quang Ninh, Sa La, Thua Thien Hue, Da Nang, and Ho Chi Minh City recently debuted the ‘Hanoi+’ tours, which connects Hanoi with tourist attractions in the neighbouring localities.

In order to provide travellers with high-quality tourist products at affordable prices, Hanoi’s tourism sector has actively worked with, airlines, railway sector, travel associations, hotels, restaurants and management boards of tourist attractions in implementing programmes on restructuring the hospitality sector and stimulating domestic travel demand.

Director of the Hanoi Department of Tourism Dang Huong Giang said that after more than a year facing numerous many difficulties caused by COVID-19 pandemic, travel businesses want to grasp opportunities for recovery.

Therefore, the department receives enthusiastic cooperation from those operating in the tourism sector, she stated, adding that airlines have launched generous discounts for passengers, particularly for travel agents who buy tickets in bulk.

The active participation from the businesses has contributed to the building of tourism products at attractive prices while ensuring quality.

The recent Hanoi Tourism and Cuisine Festival 2021 brought together travel agents and transport businesses from 12 localities which have strong advantages of tourism, including Khanh Hoa, Binh Dinh, Da Nang, Thua Thien Hue, Quang Binh, and Ha Giang, among others. Around 1,000 tour packages were on sale at the event with prices seeing discounts of up to 25%.

However, after a year of falling in “hibernation” and facing great losses due to COVID-19, thousands of travel businesses and accommodation establishments have remained closed. Many of them have hesitated to “restart” because of worries that the risks may return.

Since then, as stated by Director of Flamingo Redtours Company Nguyen Cong Hoan, travel businesses are seeking for the State’s support, particularly in terms of tax and land lease payment extensions so that they are able to return to the market.

Vietnamese tourists pay stronger attention to sustainable tourism

According to a survey by Booking.com, one of the world’s leading digital travel companies, nearly 100% of Vietnamese tourists want to stay in eco-friendly accommodations at least once.

The survey was conducted with 29,349 participants from 30 travel markets found that 81% of global travellers aspire to stay in eco-friendly and environmentally sustainable accommodations at least once. Accordingly, almost 1,005 Vietnamese tourists aged 18 years and over who participated in the survey expressed their desire for these kinds of accommodations. Meanwhile, the figure is 98% in Thailand, 90% in Singapore and 81% in the Republic of Korea.

Previously, an online survey conducted by Booking.com in July 2020, with the participation of 20,934 people from 28 countries and territories around the world, showed that over 53% of global visitors, including 59% from Vietnam, 68% from Thailand and 60% from Chinese Taipei, admitted that they pay more attention to sustainable tourism as a result of the COVID-19 pandemic.

According to Anthony Lu, Country & Mekong Region Head (China) at Booking.com, its study proved many restrictions enacted globally have inspired 59% of Vietnamese travellers to prioritise sustainable travel in the future. This is a positive sign that travellers will be more considerate before they make decisions about their future travels, while also being aware that any sustainable actions they take will help correct their impact on the environment. No matter how small or simple, Vietnamese visitors are believed to have a great impact on the environment and the tourism sector.

The Covid-19 pandemic has made global residents to re-evaluate their effects on their surroundings, towards sustainable travel in the future after travel restrictions are removed.

In fact, Vietnam is an advantageous country for sustainable tourism development. The country possesses nine world biosphere reserves recognised by UNESCO and over 30 national parks, including six ASEAN heritage parks that maintain their ecosystems, diversity and values of population. Notably, Vietnam owns 400 hot water resources, ranks 27th out of 156 nations with seas in the world with 125 beaches, most of which are beautiful. It is also among the 12 countries with the most beautiful bays (Ha Long and Nha Trang).

Over the years, tourism activities in Vietnam have been held towards sustainable tourism, with many resorts receiving international green certificates such as EarthCheck and Green Growth 2050, including Banyan Tree Lang Co in Hue City, Caravelle Saigon, Angsana Lang Co, Avani Quy Nhon, Anantara Mui Ne Resort and Spa, Harbour View Hai Phong and Anantara Hoi An Resort.

Long An wants companies to invest in Ring Road 3

The Long An government has proposed allowing companies to invest in a section of the Ring Road No. 3 project that will run through the Mekong Delta province aimed at speeding up the construction of the key traffic route, according to the provincial government.

The section will be 6.65 kilometers long, have six lanes and cost VND4.63 trillion. Of the total investment, site clearance will cost VND1.6 trillion, Thanh Nien Online reported.

The provincial government had earlier passed a plan allowing the Investment and Industrial Development Corporation (Becamex IDC Corp.) and Vietnam-Singapore Industrial Park Joint Venture Co. to study and map out a 1/2,000 master plan for the Becamex-VSIP Service-Industrial and Urban Area project in Ben Luc District. The project is set to cover some 2,300 hectares, with some 4.7 kilometers of the Ring Road No. 3 cutting through.

As such, the investors proposed allowing them to implement the site clearance works for the 4.7-kilometer section and invest in two parallel lines in line with the master plan.

The solution was appropriate, said the Long An government, proposing the Ministry of Transport ask the Government and relevant ministries and departments for opinions so that Long An Province can hold tenders and choose investors to speed up the project.

Due to its limited budget, the province also proposed the Ministry of Transport use the capital from the central budget to develop the remaining 1.95 kilometers of the section of the Ring Road No. 3.

The Ring Road No. 3 project was approved by the prime minister in 2011. The 89.3-kilometer-long Ring Road 3 will pass through Dong Nai, HCMC, Binh Duong and Long An. As planned, the ring road would be completed by 2020, but a mere 16.3 kilometers of the road running through Binh Duong Province has been completed, accounting for 17.9% of the total length.

Number of newly-established firms in Jan-Apr hits new record

In the first four months of 2021, nearly 44,200 new enterprises were established, up 17% over the same period last year and the highest-ever recorded for the period, according to the Business Registration Department under the Ministry of Planning and Investment.

The result was positive as the number of newly-established enterprises fell over 13% in the same period last year due to the pandemic, news site VnExpress reported.

The retail, wholesale and auto and motorbike repair sectors saw the highest number of newly-established enterprises at nearly 14,700, followed by the construction sector with 5,700 companies and the processing and manufacturing sector with 5,600 firms.

However, the real estate, healthcare, social welfare, service, education and logistics sectors reported the highest growth in the number of new enterprises.

New firms registered total capital of nearly VND628 trillion, also an all-time high for the period.

According to the Business Registration Department, the increase in newly-established firms highlighted the recovery of the economy and enterprises’ confidence in the country’s economic development prospects in the coming periods.

However, the number of enterprises withdrawing from the market in the first four months of the year also increased to some 51,500, mainly the small ones. Of the total, 28,350 businesses temporarily stopped operations for a certain period and 16,400 others completed procedures for disbandment.

Firms withdrawing from the market were mainly those in the healthcare, education, mining, property and agriculture sectors. More than 91% of enterprises suspending their operations and 89% of dissolved firms had charter capital of less than VND10 billion and operated for less than five years.

According to the Business Registration Department, they were vulnerable to the pandemic. Many enterprises have chosen to suspend operations to review the development of the market, seek new business plans or wait for the Government’s support policies.

HCMC plans to borrow US$100 million from WB for eight programs

The HCMC government has proposed borrowing US$100 million from the World Bank (WB) to provide capital for its eight policy programs as the city’s budget is not enough for its development demand.

The municipal government has asked the standing board of the municipal Party Committee for its opinion on the second development policy operation program (DPO-2). This program includes eight policy sub-programs relating to the standardization of the shared database, announcement of vector-based zoning plans, increase of wastewater drainage and treatment service prices and organization of tenders for State-owned commercial housing assets for production and business purposes, among others.

According to the municipal government, the Government approved over VND42.2 trillion for the city this year, including VND14.8 trillion in official development assistance loans and VND27.4 trillion from the city’s reciprocal capital, Thanh Nien Online newspaper reported.

Meanwhile, the capital needed is over VND47.8 trillion. Thus, the city will face a shortage of over VND20.4 trillion.

In April 2020, the Ministry of Finance disbursed loans for the DPO-1 program and VND2.86 trillion was provided for 153 projects.

Vietnam’s outward investment in Jan-Apr soars 7.9 times

Vietnam’s outward investment in the first four months of 2021 reached nearly US$546 million, surging by 7.9 times compared with the same period last year, according to the Ministry of Planning and Investment.

Specifically, 18 projects worth US$142.8 million received investment licenses and nine projects got additional capital of US$403.2 million.

Data of the ministry showed that Vietnamese companies invested in 10 sectors in foreign countries between January and April. The science and technology sector attracted the largest investment with US$279.8 million, accounting for 49.6% of the total.

Retail ranked second with US$147.8 million, accounting for 27.1%, followed by agriculture-forestry-aquaculture and supporting services.

Vietnamese companies invested in 15 countries and territories, with the United States absorbing US$302.3 million of the registered capital (accounting for 55.4%), followed by Cambodia with US$89.1 million (16.3%), France, Canada, Germany and the Netherlands.

As of April 20, Vietnam had 1,417 valid outward investment projects worth US$21.8 billion. The biggest investment was poured into mineral exploitation, accounting for 36% of the total, followed by the agriculture-forestry-aquaculture sector with 15.4%.

Laos was the biggest recipient of Vietnamese investment to date, accounting for 23.1% of the registered capital, followed by Cambodia with 13% and Russia with 12.7%.

Vietnam’s outward investment in 2020 was more than US$590 million, increasing 16.1% year-on-year.

It needs objective remarks for rice export decline

There are different remarks over the good harvest and export prices of rice in the Mekong Delta but the strong decline in rice export volume. In all, subjectively, businesses have been paying more attention to improving rice quality to meet the strict standards of many markets; while objectively, the global demand for food reserves has been increasing and the prices of Thai and Indian rice have made record highs in recent years. In this context, Vietnam can “leisurely” wait for positive rice export results in the upcoming months. However, the real scenario is not quite so.

The scenario may not unfold as expected because of the following reasons.

First, it’s not known what the basis for the remark “The high global demand for food reserves has pushed up the world’s rice price”(1) is but two most prestigious agencies for global rice, including the U.S. Department of Agriculture (USDA) and the Food and Agriculture Organization (FAO), have quite different remarks.

According to the latest forecast by the USDA, the global rice reserves early this year were large, at nearly 178 million tons. Though the volume grew insignificantly against the year-earlier period, it increased by more than 14 million tons from the same period in 2019 and was enough to meet the consumption demand over 129-130 days. Obviously, this is a scenario contrary to the period when the global rice reserves were thin, only enough to meet the consumption demand over half the time above (64-68 days in 2006-2009). For the consumption demand for up to 80 days, the time the reserves can meet this demand is equivalent to seven years (2005-2011), which was the period of the global rice price fever.

Further, the USDA also argued that the global rice growing area this year has increased quite strongly, resulting in an increase of 10 million tons of rice, not standing “the same” as in 2020.

In this situation, the global rice imports this year are forecast at only 43.7 million tons, up 1.33 million tons from 2020, while imports in 2020 were 1.65 million tons lower than 2019. As a result, the global rice imports have been on a downward trend against the record imports of 47.2 million tons in 2018.

The statistics and the forecast of FAO, albeit somewhat different, also show a similar trend in general.

Therefore, one cannot refer to certain particular phenomena to assess the global rice supply and demand as mentioned above. This is also the unpersuasive point mentioned in the scandal over rice export quotas in Vietnam early last year.

Second, the price increase by Thai rice exporters is true, but possibly because of force majeure causes, while the information about the increase of Indian rice price “past the records in recent years”(1) needs verification.

India’s rice exports in the first two months of this year increased exponentially, certainly because of the strongest price decline since the end of the global rice price fever.

According to official statistics of India, the country’s rice exports in the first two months reached 3.63 million tons, surging 84.2% year-on-year, but the average price was only US$460 per ton, the lowest since 2008.

Notably, while exports of fragrant rice fell, exports of non Basmati rice surged 162.1%. The average price of Basmati rice in the first two months was US$855 per ton, the lowest since 2017, and white rice US$353 per ton, a record low since 2008.

Meanwhile, the increase in the price of Thai rice since 2020 is due to reasons beyond the imagination of Thai rice traders, in addition to other reasons similar to those of Vietnam. They are the heavy crop losses in early 2020 due to record droughts in decades, floods which have pushed up production costs, the Thai Government’s diverse rice supports to stabilize prices and the appreciation of the baht. The synergy of these factors slumped rice exports and increased rice storage strongly in 2020. The storage is forecast to continue at a very high level this year.

This situation in Thailand, coupled with the strong price rise of Vietnamese rice, may force some customers to turn their back on Vietnamese rice and switch to the abundant supply of Indian rice with soft prices, especially white rice.

Third, the increase in the price of Vietnamese rice due to the improvement of the rice quality or Vietnamese rice exporters’ increased attention to rice quality improvement and traceability to meet strict standards of export markets like the EU, the U.S. and South Korea is certainly something true and worth cheering in terms of quantity, but it may be doubtful in terms of quality.

Statistics of the USDA show that five years ago, the fastidious markets of Europe, America and Australia accounted for 11.3% of the total of 50.8% of Vietnamese white rice exports and only 2% of the total of 44.6% of Vietnamese fragrant and glutinous rice exports (the total rice exports is 100%). However, in 2020, the share of white rice exports to these markets plunged drastically to 6.9% while the share of glutinous and fragrant rice exports increased to only 2.7%.

Nevertheless, this statement is not meant to completely negate the efforts of the rice industry, but on the contrary, it needs recognition for enterprises which have developed rice material areas and sustainable rice value chains to build a brand for rice. Still, with the possibly vast remaining rice area, it’s too optimistic to say that more and more attention is being paid to the rice quality, and so it may not be sound to say that this is the reason for the rice price increase.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes

Rubber latex of Quang Tri Rubber Co Ltd. Viet Nam’s rubber industry needs to develop its production chain to meet the increasing demands of export markets.

Viet Nam’s rubber industry needs to develop its production chain to meet the increasing demands of export markets, especially fastidious markets such as Europe and the US, according to experts.

To Xuan Phuc, an expert of Forest Trends said Viet Nam’s export of processed rubber has been increasing to many countries. However, Viet Nam’s export rubber products must meet many requirements on the export market, including legal issues.

At present, Viet Nam has exported latex and refined rubber products to 175 countries and this figure is continuing to expand.

Viet Nam’s largest export market for rubber products was the United States, reaching about US$1 billion in 2020, with a market share of 33.2 per cent, followed by Japan, China, South Korea and Germany.

However, there is a situation that the amount of rubber harvested from small farms is higher than that of large rubber plantations, according to Phuc.

Therefore, the Vietnamese rubber industry needs to make changes in the future to meet the market requirements.

The industry needs to be transparent about the production supply chains, including information about supply and chain activities.

According to Tran Thi Thuy Hoa, expert from the Rubber Research Institute of Vietnam, small rubber farms have become one of the most important parts in the rubber industry. Especially, in the production of natural rubber, small rubber farms’ supply has accounted for over 60 per cent of the total output of natural rubber. However, small rubber farms have been developed mainly by spontaneity.

Small households have sold latex mainly via traders without recording enough information about transactions among them.

Therefore, there is a lack of information from all stages of the supply chain, including information on links between households and the traders, meaning a failure to meet the requirements of export markets.

This reduces opportunities for the households and businesses to access the market, but also creates risks for the Vietnamese rubber industry when entering the export market in the future, according to Hoa.

On the other hand, the market’s tendency to require legal and sustainable products is inevitable in the future, so Viet Nam’s rubber industry must comply with the market requirement.

According to Viet Nam Rubber Association, in 2020, Viet Nam’s export value of natural rubber reached over $2.38 billion, accounting for 30.3 per cent of the total export value of the rubber industry.

Export value of processed rubber products was about $3.11 billion in 2020, accounting for 39.6 per cent. Rubber wood exports was $2.36 billion, accounting for 30.1 per cent.

Export turnover of natural rubber and rubber products of Vietnam has increased in recent years.

Viet Nam has the fifth largest rubber area growing rubber trees in the world, but its output ranked third, only after Thailand and Indonesia.

It has exported mainly raw material of latex accounting for about 78.4 per cent. The rest (21.6 per cent) has been processed products such as tires, gloves, accessories and soles of shoes.

Airports serve about 1.5 million travellers during holidays

Domestic airports welcomed close to 1.5 million air travellers from April 28 to May 2, the peak travel period around the four-day public holidays marking the National Reunification (April 30) and May Day (May 1), according to the Airports Corporation of Vietnam (ACV).

On April 29 alone, Ho Chi Minh City’s Tan Son Nhat International Airport served a record of nearly 108,500 flyers.

The average daily traffic during the peak time surged roughly 65 percent compared to that of March, with most airports seeing increases of 30 percent to 175 percent in passenger volume.

The ACV has directed its busiest airports, such as Tan Son Nhat, Hanoi’s Noi Bai, Da Nang and Khanh Hoa’s Cam Ranh, to well manage and coordinate the operation of flights so as to avoid congestion.

Only 66 million passengers passed through the country’s airports in 2020, a 43.5 percent decrease given the impacts of the COVID-19 crisis and unfavorable weather conditions./.

Construction material prices recover

Prices of construction materials such as steel, bricks and sand are recovering post-pandemic, hitting contractors’ profits.

Cao Van Hong, a contractor, told Thanh Nien newspaper that the cost of construction materials had been rising for the last few months.

Associate Professor Ngo Tri Long, former rector of the Ministry of Finance’s Price and Market Research Institute, said prices were up by around 20 percent year-on-year.

Steel, which accounts for 20 percent of the cost of a building, has increased by 40 percent.

Construction sand is becoming scarce in the Mekong Delta, a major supplier, and buyers wanting large quantities have to wait for a month and often pay more than the originally quoted price.

Le Nhu Thuy My, Director of the Nhan Quoc Ceramic Tiles Company in Dong Nai Province, said there had been a slight increase in ceramic tile prices due to a rise in packaging costs and the rising electricity, petrol, coal, and transportation costs.

The spike in costs is forcing contractors to increase prices or delay work to prevent losses.

Nguyen Quoc Hiep, Chairman of the Viet Nam Association of Construction Contractors, said many contractors signed fixed-price contracts and so took a hit when costs rise.

Construction accounts for nearly 10 percent of Vietnam’s GDP./.

Shares mixed on resurgence of COVID-19

The stock market closed the first session of May on a mixed note as the growth of banking shares rescued the VN-Index from a fall while the HNX-Index slumped due to the resurgence of COVID-19 in Viet Nam.

On the Ho Chi Minh Stock Exchange, the VN-Index closed Tuesday up 0.23 per cent at 1,242.2 points.

Market breadth was negative with 252 shares falling, 140 rising and 50 closing flat.

Viet Nam’s benchmark index had traded below the threshold for most of the day but the recovery of many banks cushioned the market.

Seven of the nine listed banks in the VN30 climbed, including Vietinbank (CTG, up 2.2 per cent), Techcombank (TCB, up 2.4 per cent), Vietnam Prosperity Bank (VBP, up 1 per cent), Military Bank (MBB, up 0.9 per cent), Tien Phong Bank (TPB, up 0.6 per cent) and the Bank for the Investment and Development of Vietnam (BID, up 0.3 per cent).

Other gainers included Vingroup (VIC), steelmaker Hoa Phat Group (HPG), FPT Group (FPT), Khang Dien House Trading and Investment (KDH), with a growth of between 1.7 per cent and 2.4 per cent.

However, a number of blue chips slumped and dragged the market such as Vinamilk (VNM), insurer Bao Viet (BVH), Masan Group (MSN), PV Gas (GAS) and Mobile World (MWG).

Liquidity remained good with 798.5 million shares worth VND21.5 trillion (US928 million) traded in the southern market.

According to analysts, investors are still influenced by “sell in May” psychological factors and the resurgence of COVID-19 in several cities.

Although some firms reported positive business results in the first quarter, their stock prices are still going down. For example, sugarmaker Thanh Thanh Cong-Bien Hoa JSC reported its Q1 net profit climbed 225 per cent but its stock price fell 0.3 per cent on Tuesday.

According to Bao Viet Securities Co, the socio-economic report in April and the first four months of the year announced by the General Statistics Office last week with the CPI in April decreasing by 0.04 per cent from the previous month showed the rather good condition of the economy.

The VN-Index is forecasted to challenge the resistance zone of 1,268-1,275 points in the first week of May. This is still the resistance zone that might create fluctuations, adjusting the index when approached, analysts said.

On the Ha Noi Stock Exchange, the HNX-Index fell 1.43 per cent to close at 277.71 points.

More than 102 million shares worth nearly VND2 trillion were exchanged in the northern bourse.

Gov’t may set up working group to address bottlenecks in investment projects

Prime Minister Pham Minh Chinh has tasked the Ministry of Planning and Investment to put forward a proposal on establishment of a working group to address bottlenecks in investment projects.

Deputy Prime Minister Pham Binh Minh may be assigned to lead to the working group.

The Government chief also urged the ministry to have innovative approach to economic management and develop a socialist-oriented market economy which is independent, self-reliant, muti-sectoral, and deeply integrated into the world.

It is asked to end scattered and inefficient investment, design mechanisms and policies to promote the leading role of public investment, and mobilize non-state capital in order foster growth.

The ministry needs to focus on improving its state management capacity, especially in designing development strategies and planning schemes.

Preferential mechanisms and policies for priority areas and key tasks must worked out, required PM Pham./.

Viet Nam sees strong import, export recovery in first quarter

Viet Nam saw strong import-export recovery in the first quarter, estimated at US$152.65 billion, up 24.1 per cent year-on-year, said an industry and trade official.

Tran Thanh Hai, deputy director of the Agency of Foreign Trade under the Ministry of Industry and Trade, said: “Viet Nam has been making good use of the new-generation FTAs that have taken effect, such as the EU-Viet Nam Free Trade Agreement (EVFTA), the UK-Viet Nam Free Trade Agreement (UKVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).”

The country saw exports jump by 22 per cent year-on-year in the first quarter, according to Hai.

He said that exporters should continue to innovate and improve production to take advantage of the new-generation FTAs.

The Regional Comprehensive Economic Partnership (RCEP) is also about to take effect, which will help to boost exports as well, he noted.

Prior to the EVFTA taking effect in June 2020, exports to the EU market were $29.44 billion in the first three quarters of 2020, down 4.7 per cent over the same period in 2019.

But only three months after the EVFTA took effect, exports to the EU market reached $11.08 billion, up 5 per cent over the same period in 2019.

As of the end of 2020, exports to the EU market had reached $40.05 billion, according to Hai.

In the first quarter, electronic products, electric appliances and furniture benefitted the most from increased demand from European and North American markets, he said. However, footwear as well as garment and textile exports faced challenges caused by the disruption of supply chains.

Nguyen Van Thoi, chairman of TNG Investment and Trading Joint Stock Company, said the company had revenue of VND326 billion in March, a rise of more than 28 per cent over the same period last year, bringing total revenue in the first quarter to VND910 billion, up 18 per cent against the same period last year.

The company has export orders that continue until the end of July. To prepare for the production of exports, TNG will establish an outsourcing development branch in the northern city of Thai Nguyen, he said.

The wood industry also saw an increase in export orders. In the first three months, exports of wood and wooden products were estimated at $3.7 billion, up 41.5 per cent over the same period last year.

Do Xuan Lap, chairman of the Viet Nam Timber and Forest Products Association, said that many wood businesses have full export orders until the end of 2021.

As for the UKVFTA, which took effect on January 1, Vietnamese exports to the UK market reached $1.6 billion in the first quarter, up 22 per cent year-on-year.

Viet Nam has signed 15 FTAs , 14 of which are under implementation. One has not taken effect and two are under negotiation.

Among the 15 signed FTAs, there are three new-generation FTAs, the CPTPP, EVFTA and UKVFTA, according to the Ministry of Industry and Trade.

The country’s exports increased 22 per cent to reach $77.34 billion in the first quarter, while the trade surplus was estimated at $2.03 billion, according to the General Statistics Office.

The total merchandise import-export turnover in the first quarter reached $152.65 billion, up 24.1 per cent over the same period last year. While exports reached $77.34 billion, imports rose to $75.31 billion, up 26.3 per cent.

In the first quarter, there were 11 items with export turnover of more than $1 billion, accounting for 76.6 per cent of the total export turnover. They included four items with export turnover of over $5 billion, accounting for 54.7 per cent.

The production expectation in the second quarter is more positive, as there was an increase of 27.5 per cent in registered capital at VND447.8 trillion ($19.46 billion) in the first quarter, according to the General Statistics Office.

A survey of business trends of enterprises in the manufacturing and processing industries showed that enterprises expect their production and business in the second quarter to be better than the first quarter.

Banks to serve with soaring capital needs of businesses

Strong increase in capital demand has been seen as production activities of enterprises gradually showed signs of recovery, forcing banks to reschedule their lending plans.

According to the State Bank of Viet Nam (SBV), deposit and lending interest rates continued to decline compared to the end of last year. The central bank required commercial banks to strictly control credit flow in risky areas such as real estate and securities to accumulate capital for production and business of priority sectors.

As of April 16, the economy’s credit increased by 3.34 per cent compared to the end of last year. In the first quarter of 2020, the credit of the economy only increased by 1.47 per cent.

Nguyen Hoang Minh, Deputy Director of the State Bank in charge of HCM City Branch, said capital mobilisation increased only 0.7 per cent while outstanding credit increased by 3.5 per cent compared to the end of last year.

Leaders at some commercial banks told media demand for capital from businesses and the market is increasing as the economy recovers from the COVID-19.

The deputy general director of one plastic company, which could borrow with the lowest interest rate in the industry at about 5.4 per cent per year, said: “Production and business activities recovered quite strongly compared to last year, and the company’s capital demand is large. Our enterprises are also classified as high credit, so they are given priority by the bank.”

Talking at the recent 2021 annual shareholder meeting, Nguyen Duc Thach Diem, General Director of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), said that by mid-April this year, the bank’s capital mobilisation increased by just 3.5 per cent while lending increased to 5.8 per cent.

Previously, the general director of Sacombank also said that many individual and corporate customers contacted the bank for loans. As credit growth target was only about 9 per cent this year, it could not meet all of the demand but instead focus on production businesses and limit the flow to real estate.

Nghiem Xuan Thanh, chairman of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), said the bank’s credit balance increased by 3.7 per cent while the whole system increased by 2.93 per cent, adding the bank was number one in credit growth last year and continued to have the largest growth in term of credit so far this year.

Seeing the increase, the central bank again told commercial bank to manage their lending, in which they must offer low interest rates for production firms, helping them recover, while most of the commercial banks wanted to increase their credit limit to serve demand.

At the same time, leaders of many banks said that they would strictly control capital in risky areas such as real estate projects, BOT, and securities.

Leader of one large-scale joint stock bank said: “Banks are tightly controlling capital flows into real estate, especially in areas with land fever. For individual customers, if they ask for a loan to buy a house to live in, they will be given preferential treatment but if they borrow to buy a house as an investment to rent, the bank will apply higher interest and lending rates because of higher risk factors.”

Nguyen Tuan Anh, director of the credit department of SBV told the banking industry meeting on Q1 results that the central bank set this year’s credit target of about 12 per cent and it would be adjusted in accordance with the actual developments and situation.

Again, Anh said SBV required credit institutions to continue to expand their capital and focus on lending to priority areas and tightly control credit in potentially risky areas such as real estate, BOT projects, and securities.

At the same time, the central bank asked credit institutions to continue implementing solutions to overcome difficulties for people and businesses affected by the pandemic.

According to statistics to the beginning of April, 2021, credit institutions have restructured the repayment term for 262,000 customers with a loan balance of about VND357 trillion (US$15.38 billion) as well as exempting and reducing interest rates for more than 663,000 customers with outstanding loans of VND1.27 million billion, giving new loans worth more than VND3.16 million billion with preferential interest rates with accumulated sales from January 23, 2020.

PAN Group to raise stake in Khang An Food

Vietnamese agriculture and food company PAN Group JSC (PAN) has announced plans to contribute VND100 billion (US$4.3 million) to Khang An Food Joint Stock Company to increase its ownership to 28.57 per cent of charter capital in this company.

Khang An Food currently has a charter capital of VND234 billion and expects to increase the figure to VND350 billion, with an aim of investing in a processing factory for shrimp and a shrimp farming area, in 2021.

As of March 31 this year, Sao Ta Food Joint Stock Company (FMC) owned 77.09 per cent of charter capital in Khang An Food Joint Stock Company. Meanwhile, PAN owns 64.45 per cent of the capital at Sao Ta Food.

This year, PAN hopes to achieve net revenue of VND10 trillion and an after-tax profit of VND419 billion, up 20.4 per cent and 25.7 per cent, respectively, compared to 2020.

Based in the southern province of Soc Trang, Sao Ta is involved in farming and processing prawn and shrimp. Its products are mostly sold in Japan, the US and Canada.

Khang An Food also operates in processing and preserving seafood, buying and selling food, preliminary processed agricultural products, production and export of agricultural products.

Four new payment intermediaries licensed in Vietnam since 2021

From the beginning of the year, the State Bank of Vietnam (SBV) has issued new licences to four non-bank payment intermediaries, showing the increasing demand by local firms to join the fintech rush.

Accordingly, Vietnam Post has just launched an Intermediary Payment and Fintech Division to oversee fintech and patment operations. General director Chu Quang Hao is heading up this division.

On March 9, MobiFone has received a license from the central bank to provide payment intermediary services.

The new license for intermediary payment service provision is expected to pave the way for MobiFone to roll out mobile money services right after the government authorises implementation.

Meanwhile, OneFin and Jetpay were granted licences in January. On its official website, OneFin describes itself as one of the leading companies in applying e-payment solutions and technologies, including services related to e-wallets, payment gateways with outstanding security features, processing speed, and convenience for customers and partners.

These licences come after major Vietnamese behemoths such as Viettel, VNPT, and FPT have expanded into the lucrative payments industry.

For instance, FPT Telecom was granted a licence in last August after two years as a non-bank intermediary payment service provider, with Foxpay as its core product.These large corporations could take advantage of their nationwide networks, large customer base, and solid financial capacity to take over the market.

As of April 22, the SBV has granted licences for 43 non-bank intermediary payment services companies.

Vietnam’s fintech startup landscape almost tripled in size between 2017 and 2020, growing from 44 startups in 2017 to 121 startups in December 2020, according to a new report released by Fintech News Singapore.

Industrial production rises at fastest pace since late 2018

Total new orders increased for the eighth month running, and at the fastest pace in close to two-and-a-half years.

The Vietnam Manufacturing Purchasing Managers’ Index (PMI) rose for the third month running, posting 54.7 in April following a reading of 53.6 in March and was the strongest since November 2018, according to Nikkei and IHS Markit.

“Output and new orders each rose to the greatest extent since late-2018, and there were encouraging reports that customers were often happy to place larger orders amid greater confidence in the sustainability of the current expansion,” said Andrew Harker, associate director at IHS Markit, which compiles the survey.

“Inflationary pressures remained elevated, with output prices increasing at the fastest pace for almost a decade. There were some signs, however, that the severity of the difficulties in supply chains may be easing, which will hopefully reduce some of the upward pressure on prices,” he noted.

The industrial sector was boosted in April by signs that customers were willing to commit to larger orders than previously, given general improvements in demand and control over the Covid-19 pandemic. Total new orders increased for the eighth month running, and at the fastest pace in close to two-and-a-half years.

New export orders also continued to rise amid an improving international demand climate.

Higher new orders fed through to a similarly-sized expansion of manufacturing output, with production also up at the fastest pace since November 2018. Consumer goods firms posted the sharpest rise in output of the three broad categories covered.

Firms were aided in their efforts to boost production by increasing workforce numbers. Staffing levels were expanded for the third month running, and to the greatest extent since December 2018. This increased capacity, however, was not sufficient to prevent a first rise in backlogs of work in 15 months due to the strength of new order growth.

As well as raising staffing levels, firms also posted a sharp and accelerated expansion of purchasing activity. Respondents indicated that the increase in input buying was both in response to higher new orders and as part of efforts to build reserves to support production growth in the months ahead.

Efforts to expand inventory holdings were generally successful in April, with both stocks of purchases and finished goods increasing. In both cases, the rate of accumulation was solid and faster than at the end of the first quarter.

There were some signs that recent severe disruption to supply chains eased in April. While suppliers’ delivery times continued to lengthen, the latest deterioration in vendor performance was modest and the softest since last September. Where lead times did lengthen, there were ongoing reports of raw material shortages and global shipping difficulties.

Supply shortages and rising shipping costs continued to feed through to higher input prices. The rate of cost inflation remained substantial and was only slightly slower than that seen in March. In turn, firms raised their selling prices sharply, with the rate of inflation quickening to the fastest for close to a decade.

Expectations that the Covid-19 pandemic will remain under control leading to higher demand, and the introduction of new product lines, supported ongoing confidence among firms regarding the 12-month outlook for production.

Austrian firms expect opportunities from Vietnam

The portal of the Austrian Federal Economic Chamber has run an article hailing Vietnam’s consistent, drastic and effective measures against the COVID-19 pandemic, adding that the Vietnamese market remains attractive to Austrian firms.

The article said it is not without reason that the Austria’s IC- Steiermark Centre (ICS) has brought Vietnam into a focus programme this year, on the back of its 2.9 percent economic growth, which could reach 5-7 percent this year.

It quoted Austrian Commercial Counsellor in Ho Chi Minh City Dietmar Schwank as saying that Vietnam has insisted on virus containment and wide quarantine for immigrants. Such policy has proven successful in both health and economic terms. Border closure, a 14-day quarantine without exceptions and a consistent anti-pandemic plan have helped Vietnam curb the virus spread.

Meanwhile, failures in tourism sector which experienced a boom with 18 million visitors in 2019 could be offset by public investment, manufacturing and domestic consumption.

Additionally, the Vietnamese Government also offered aid packages to enterprises and the unemployed.

In political and macro-economic terms, the author hailed Vietnam as stable country with its key policies of economic liberalisation, investment in infrastructure and foreign investment attraction. All such factors have made Vietnam attractive to Austrian companies.

According to the article, the European Union – Vietnam Free Trade Agreement, which took effect in August 2020, has also brought advantages to bilateral cooperation. Vietnam is now the largest trade partner of Austria in Southeast Asia, with imports from the latter amounting to nearly 1 billion EUR. New business opportunities could be identified in infrastructure, health care, energy, urban technology, environment, security, disaster management, hi-tech products and production machinery.

The ICS’s adding Vietnam into its 2021 focus programme could open up a series of events such as seminars and trips to the country this autumn.

The centre said exporters and Austrian firms operating in mechanical engineering, food and pharmaceuticals will enjoy many chances when navigating the Vietnamese market./.

Intellectual property helps companies consolidate foothold

Given the increasing level of competition generated by global integration, in addition to improving product quality and expanding markets, companies should also pay greater attention to intellectual property, which can be a powerful tool in competing with foreign rivals.

This company protected the intellectual property of its products before introducing them to the market, giving it confidence in competing with rivals, as copyrighted products often win more trust from customers.

Intellectual property protects not only tangible but also intangible assets. It is also a bridge bringing the ideas of enterprises closer to customers.

Though intellectual property brings about a lot of competitive advantages, many companies still overlook the task, resulting in losing their brands to rivals and even partners. Let’s take ST25 rice as an example, which had its brand registered by a foreign company with nothing at all to do with its production.

Intellectual property is a set of powerful tools for a company to fight in the market. They include brand name, design, copyright, patents, and geographical indication, etc. Once these tools are fully utilised, a company’s foothold in the market is consolidated./.

Honda Vietnam to recall 27,640 cars with faulty pumps

Honda Vietnam has recently announced that it will recall 27,640 units due to faulty fuel pumps, beginning on May 5.

All made in 2019, the vehicles include 8,626 Honda CITY produced between January 2 and September 16; 3,630 Honda HR-V between January 14 and August 31; 1,140 Honda CIVIC manufactured between February 20 and September 28; 10,687 Honda CR-V between January 3 and July 30; and 443 Honda ACCORD produced between July 3 and October 3.

The fault in pumps can cause engines to stall or fail to start, Honda Vietnam said.

No related accidents have been recorded so far but the manufacturer recommended its customers get their pumps replaced for standard ones to ensure their interests and safety.

The replacement will be done free of charge./.

Gas well 61 lays foundation for oil and gas development

Gas well 61, the first well found in March 1975 at the Tien Hai C structure in Dong Co commune, Tien Hai district, in the northern province of Thai Binh, created a foundation for Vietnam to enter into the promising gas sector.

Vietnam has found a wide range of gas wells whose reserves are much larger than well 61, such as Ca Voi Xanh (Blue Whale) field and Ken Bau field. However, well 61 will forever be a turning point for the country’s oil and gas development, as envisaged by President Ho Chi Minh in 1959.

The oil and gas industry has achieved various milestones thanks to the discovery of the well, with the first industrial gas flow being used to generate 10MW of electricity in Thai Binh province on April 19, 1981, and the first commercial gas flow taken to shore from the Bach Ho oilfield in the southern province of Ba Ria-Vung Tau in May 1995.

Before 1995, gas separated from crude oil at rigs was fired because Vietnam’s facilities at that time were not good enough to collect and transport gas to shore. Together with increasing oil exploitation, the amount of burnt gas became larger, causing environmental pollution and waste of the natural resource.

To this end, the Vietnam Oil and Gas Group (PetroVietnam) worked to build and put gas facilities into operation, helping to use gas resources in an effective manner while meeting energy demand for the nation’s economic development.

The PetroVietnam Gas Corporation (PV GAS) was then established, and played a leading role in the nation’s gas sector.

Over the past 30 years, PV GAS developed sound infrastructure for the gas sector valued at more than 62 trillion VND (2.68 billion USD), comprising five gas systems with more than 1,200 km of pipes, three gas treatment plants, 13 liquefied petroleum gas (LPG) warehouses with a capacity of nearly 100,000 tonnes, and a gas distribution system.

Each year, PV GAS supplies materials for the production of nearly 20 percent of the country’s power and 70 percent of nitrogenous fertiliser. Holding the lion’s share of the domestic dry gas and LPG market, the corporation has also affirmed its important role in the global market in the LPG business./.

Vietnam posts positive signs in FDI attraction

Vietnam’s success in the fight against COVID-19 and its overall stability have increased its competitiveness and resulted in positive outcomes in foreign direct investment (FDI) attraction since the start of the year, Director of the Foreign Investment Agency under the Ministry of Planning and Investment, Do Nhat Hoang, has said.

The country needs to further capitalise on its strengths, potential, and opportunities to absorb future investment, he added.

Vietnam clearly exhibits stability in its macro-economic and political situations and boasts a high level of prestige in investment attraction, as the number of large-scale energy and processing-manufacturing projects applying high technology in key sectors has been on the rise.

As of April 20, foreign investors had pumped 12.25 billion USD into Vietnam this year, equal to 99.3 percent of the amount recorded in the same period last year.

Among the 67 countries and territories with investment projects during the period, Singapore led with 4.8 billion USD, followed by Japan with more than 2.5 billion USD and the Republic of Korea with 1.5 billion USD.

The country is also working to attract projects from Europe and the US.

Various incentives for FDI investors have been launched, along with opportunities brought about by new generation free trade agreements Vietnam has signed. The Government has also exerted efforts in administrative reforms and in improving the investment climate.

Meanwhile, relevant agencies have been advised to call for investment from multinational corporations with strengths in capital and technology, thus helping domestic companies access modern technologies and work with foreign counterparts in further joining global value chains.

Localities must revise their legal documents and investment policies to address any inconsistencies and should take the initiative in choosing projects that match their own potential and investment orientation.

Priority should be given to hi-tech, energy and space-saving, and environmentally-friendly projects./.

Businesses must devise schemes to boost exports amid COVID-19

Local firms have been advised to become more flexible and consider changing which type of transportation they use when shipping goods to promote the greater production of empty containers to deal with the shortage of empty containers and the recent rise in freight rates.

Nguyen Dinh Tung, general director of Vina T&T Group, an enterprise that specialises in exporting agricultural products to the United States, Australia, Japan, and Canada, said his company are concerned that high freight costs by shipping lines and slow delivery to partners will impact their reputation and the overall product quality.

This comes after the recent shortage of empty containers has caused exporters to encounter plenty of difficulties when trying to meet the orders of foreign partners on time, while the lack of empty containers with a short delivery deadline is seen as contributory factor to causing shipping rates to climb higher.

Tung also emphasised that the Government needs to work alongside foreign shipping lines in order to request them to provide timely support for local export firms as a way of reducing freight costs during this challenging period.

Tran Thanh Hai, deputy director of the Import and Export Department, urged domestic businesses to take advantage of using other forms of transport, including rail transport instead of simply using sea links to deal with the issue. Indeed, Hai believes that each enterprise must have a reserve fund and diversify their import and export markets in order to avoid reliance on a single market.

How to optimise FTAs to achieve economic growth through e-commerce

As many as 14 free trade agreements (FTAs) have come into force since the beginning of this year, a factor which has enabled the country to establish links with 52 partners, including leading trading partners.

The nation’s trade balance of goods during the first quarter of the year stood at an estimated US$2.03 billion in trade surplus, with export turnover reaching a sum of US$77.34 billion.

This comes as export speed has surpassed several major economies throughout Asia, such as Singapore, Thailand, the Republic of Korea, in addition to Europe. A number of impressive figures relating to export growth indicate that Vietnamese enterprises have made initial approaches and moved to take full advantage of the opportunities from new generation FTAs.

These trade deals are the ideal tools which can turn opportunities into a fresh driving force behind the development of the national economy as they can open up competition to many service industries, thereby attracting greater investment whilst revamping institutions for the purpose of sustainable development.

The impact of the novel coronavirus (COVID-19) pandemic has served to disrupt global supply chains and promote non-traditional sectors, including e-commerce, which is seen as an effective solution in dealing with the disruption of supply and demand to the local economy. Making use of e-commerce platforms by capitalising upon opportunities offered by the FTAs provides Vietnamese businesses with a digital platform which they can utilise in order to achieve more effective market penetration.

As a means of strongly developing e-commerce moving forward, as well as making effective use of FTAs through digital commerce platforms, the Department of E-commerce and Digital Economy under the Ministry of Industry and Trade (MoIT) has completed a national database on Vietnamese firms. This holds a profile of domestic enterprises and is viewed as a reliable source of reference and appraisal data for state management agencies, along with international trading partners.

The purpose of the database is to build confidence among international trading partners in both Vietnamese branded products and services, a move which can help to improve the competitiveness of businesses.

Several economic experts state that the requirement for local enterprises is to be transparent and digitise their operations. Along with this, it remains necessary to develop a full, detailed, and specific sales policy. This should be done alongside learning and fully grasping the rules of e-commerce platforms regarding delivery, payment, and all forms in terms of quality assurance, traceability, and an understanding of international trade practices to minimise potential risks of economic damage.

MoIT statistics reveal that Vietnamese e-commerce last year grew by 18% to more than US$11 billion. Major global groups such as Google, Temasek, and Bain & Company forecast that with a growth rate of 29% throughout the 2020 to 2025 period, the size of the Vietnamese digital economy is likely to exceed US$52 billion and will be the third largest in ASEAN by 2025.

Hai Duong lychees to be launched on four major e-commerce floors

The Hai Duong Department of Agriculture and Rural Development are co-operating alongside the Vietnam Trade Promotion Agency in order to conduct procedures aimed at bringing Hai Duong lychees to four e-commerce platforms, including Alibaba. com, Voso.vn, Sendo.vn, and Lazada.vn.

Hai Duong province is home to a lychee growing area spanning 9,186 ha, of which 1,000 ha are certified in line with VietGAP standards, while 520 ha of lychees have been grown in line with GlobalGAP standards.

Most notably, Thanh Ha district features 17 cultivation regions that were granted area codes for exports to the United States, Australia, the EU, Japan, and Singapore.

As a means of improving the quality of lychees for export, Hai Duong province has given priority to initiating training courses on technological transfer to farmers and conducting strict surveillance over planting areas in an effort to improve the product quality, while simultaneously boosting trade promotional activities.

As a means of helping domestic businesses penetrate these demanding markets, local authorities have worked alongside fruit exporters Rong Do Production – Trading – Service Co., Ltd with the intention to purchase 300 tonnes of lychee. In addition, Ameii Vietnam Joint Stock Company have initiated plans to buy 300 tonnes for export to Japan, Australia, Malaysia, the Middle East, and the EU.

Most notably, the Hai Duong Department of Agriculture and Rural Development is in the process of co-operating with the  Vietnam Trade Promotion Agency in order to continue the procedures which will serve to introduce Hai Duong lychees to the four e-commerce floors, including Alibaba.com, Voso.vn, Sendo.vn, and Lazada.vn.

The schedule is for Hai Duong lychees to go on official sale from May 15 through these e-commerce platforms.

This will also be the first year that the locality has deployed the consumption of lychees through e-commerce floors.

Furthermore, the lychee festival aims to introduce the locality’s major agricultural products, with the event anticipated to be held in early June.

The Hai Duong Department of Industry and Trade has revealed that that since 2015, Hai Duong lychee products have made inroads into markets such as the US, Australia, France, Canada, Singapore, Japan, the Republic of Korea, the United Arab Emirates, and some European nations.

Airports serve about 1.5 million travellers during holidays

Domestic airports welcomed close to 1.5 million air travellers from April 28 to May 2, the peak travel period around the four-day public holidays marking the National Reunification (April 30) and May Day (May 1), according to the Airports Corporation of Vietnam (ACV).

On April 29 alone, Ho Chi Minh City’s Tan Son Nhat International Airport served a record of nearly 108,500 flyers.

The average daily traffic during the peak time surged roughly 65 percent compared to that of March, with most airports seeing increases of 30 percent to 175 percent in passenger volume.

The ACV has directed its busiest airports, such as Tan Son Nhat, Hanoi’s Noi Bai, Da Nang and Khanh Hoa’s Cam Ranh, to well manage and coordinate the operation of flights so as to avoid congestion.

Only 66 million passengers passed through the country’s airports in 2020, a 43.5 percent decrease given the impacts of the COVID-19 crisis and unfavorable weather conditions./.

Long An Province to join regional tourism organisation

The southern province of Long An will be admitted as the 130th member of the Tourism Promotion Organisation for Asia Pacific Cities (TPO), based in South Korea, in October.

The announcement was made at the 35th executive committee meeting of the organisation held in Busan, South Korea, earlier this year.

The participation of Long An in TPO is expected to promote local tourist destinations among international friends and cooperation in tourism among TPO member cities.

TPO was established in 2002 with the blessing of the 5th Asian-Pacific City Summit. The organisation was created to be an inter-city network to promote the exchanges and development of the tourism industry among major cities in the Asia-Pacific region. It also aims to encourage its members to work together to support the tourism industry.

Beginning with the membership of 25 cities from 13 countries in 2002, the organisation now has 130 member cities from 50 countries and 50 tourism institutes working on tourism, supporting the development of local tourism products and sharing tourism information among its members.

Other Vietnamese localities that are also TPO members include Bắc Ninh, Đà Lạt, Đà Nẵng, Hà Nội, Hải Phòng, HCM City and Vũng Tàu.

Long An Province is the gateway from HCM City to the western provinces where the land stretches along the two rivers of Vàm Cỏ Đông and Vàm Cỏ Tây.

The province plays a bridging role between two important economic regions in the south due to its significant strategic position for trade and tourism.

Some of the popular tourist destinations in Long An Province include the ancient house with hundreds of pillars located in Long Hựu Đông Commune, Tân Lập Floating Village, Đồng Tháp Mười eco-tourism area and Láng Sen Wetland Reserve.

Láng Sen Wetland Reserve was recognised as the seventh Ramsar site in Việt Nam and 2,227th of the world in 2015.

Established in 2004, the site, located in the south of Long An, still preserves the original ecosystem of the Đồng Tháp Mười Wetlands in Việt Nam’s Mekong Delta, similar to Tràm Chim National Park in the southern Đồng Tháp Province.

Spreading over 4,800ha, it is home to more than 150 kinds of plants and 140 kinds of birds, many of which are mentioned in the IUCN Red List of Threatened Species, such as the red-crowned crane, oriental darter and glossy ibis.

According to Long An Province’s Department of Culture, Sports and Tourism, due to the effects of the COVID-19 pandemic, the number of tourists who visited the province in 2020 was estimated at 800,000, down by 57 per cent in compared with 2019, of which there were only 1,500 international visitors, a 94 per cent decrease.

In an effort to boost local tourism and reach the goal of attracting 920,000 tourists this year, Long An Province authorities have implemented various measures like investing in promotions, training human resources in tourism and improving tourism co-operation with other provinces.

Sabeco sees profit up 37 per cent

Viet Nam’s largest brewer Sai Gon Beer-Alcohol-Beverage JSC (Sabeco) earned VND986 billion (US$42.6 million) in post-tax profit in the first quarter of this year, an increase of 37.5 per cent compared to the same period in 2020.

The figures were released in Sabeco’s consolidated financial statements for the first quarter of 2021.

Net revenue reached VND5.86 trillion, 19 per cent higher than the same period last year. Gross profit was VND1.7 trillion, up by 26.5 per cent. Gross profit margin improved from 27.6 per cent to 29.2 per cent.

Along with the increase in revenue, selling expenses and administrative expenses increased by 51 per cent and 21 per cent, respectively.

Revenue from financial activities increased by 55 per cent to touch VND417 billion. Sabeco’s profit improved sharply year-on-year thanks to a significant contribution from financial activities.

Inventories increased by more than 41 per cent to VND2 trillion. Inventory of finished products increased from VND623 billion to VND1 trillion, up 66 per cent.

Sabeco’s cash and deposits, amount to VND16.35 trillion, accounting for nearly 61 per cent of its asset structure. The company continues to maintain short-term debt of just over VND880 billion.

This year, Sabeco targets revenue of VND33.49 trillion, up by 20 per cent. After-tax profit is expected to total nearly VND5.3 trillion, up 7 per cent compared to 2020. It plans to pay dividend at a rate of 35 per cent in cash.

PAN Group to raise stake in Khang An Food

Vietnamese agriculture and food company PAN Group JSC (PAN) has announced plans to contribute VND100 billion (US$4.3 million) to Khang An Food Joint Stock Company to increase its ownership to 28.57 per cent of charter capital in this company.

Khang An Food currently has a charter capital of VND234 billion and expects to increase the figure to VND350 billion, with an aim of investing in a processing factory for shrimp and a shrimp farming area, in 2021.

As of March 31 this year, Sao Ta Food Joint Stock Company (FMC) owned 77.09 per cent of charter capital in Khang An Food Joint Stock Company. Meanwhile, PAN owns 64.45 per cent of the capital at Sao Ta Food.

This year, PAN hopes to achieve net revenue of VND10 trillion and an after-tax profit of VND419 billion, up 20.4 per cent and 25.7 per cent, respectively, compared to 2020.

Based in the southern province of Soc Trang, Sao Ta is involved in farming and processing prawn and shrimp. Its products are mostly sold in Japan, the US and Canada.

Khang An Food also operates in processing and preserving seafood, buying and selling food, preliminary processed agricultural products, production and export of agricultural products.

Vinacomin’s revenue hits US$1.67 billion in four months

The Viet Nam National Coal – Mineral Industries Holding Corporation Limited (Vinacomin) sold nearly 13.9 million tonnes of coal in the first four months of 2021, earning VND38.61 trillion (US$1.67 billion).

The group recently reported it maintained stable production and basically completed its plans in April.

In April, Vinacomin produced 3.58 million tonnes of raw coal and sold 3.83 million tonnes.

Its production in the last four months hit 13.62 million tonnes, equivalent to 35 per cent of the yearly target.

Vinacomin contributed VND6.6 trillion ($286 million) to the State budget in the period. The corporation also ensured an average per capita income of VND12.7 million per month for its employees.

The corporation hopes to produce 3.3 million tonnes of raw coal and sell 4.3 million tonnes in May.

Viet Nam attracts over $12b in FDI in four months

As of April 20, Viet Nam attracted US$12.25 billion in foreign direct investment (FDI), equivalent to 99.3 per cent compared to the same period last year, according to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA).

The four-month figure shows the FDI inflow was slowing down, said the FIA.

However, the agency noted the average size of newly-licensed projects and those registering to adjust their capital increased by less than $7 million per project in comparison with the same period last year.

The four-month period saw FDI projects disburse $5.5 billion, up 6.8 per cent over the same period last year, thanks to the recovery of production and business operations.

Currently, Viet Nam has 33,463 valid foreign investment projects with total registered capital of $394.9 billion. These projects disbursed $238.36 billion, or 60.4 per cent of the total valid registered investment capital, FIA reported.

FDI inflows to the country expanded by 18.5 per cent to $10.13 billion in the first three months of this year, the FIA said.

Of the figure, newly-registered capital reached $7.2 billion, up 30.6 per cent year-on-year, while adjusted capital increased by 97.4 per cent to $2.1 billion.

Meanwhile, capital contributions and share purchases by foreign investors stood at more than $1 billion, down 57.8 per cent from the same period last year.

The capital inflows cover 17 sectors, in which processing and manufacturing took the lead with $5.2 billion, accounting for 42.4 per cent of the combined investment, followed by electricity generation and distribution with $5.1 billion. Property and retail sectors accounted for $778 million and $464 million, respectively.

Among 67 countries and regions with newly licensed investment projects in Viet Nam during the period, Singapore was the largest source of registered capital with $4.8 billion, accounting for 39.6 per cent of the total registered capital, followed by Japan with $2.5 billion, accounting for 20.5 per cent of the total registered capital and the Republic of Korea (RoK) with nearly $1.5 billion, accounting for 12.1 per cent of the total registered capital.

Foreign investors have invested in 53 provinces and cities nationwide, in which Long An Province took the lead with total registered investment capital of nearly $3.3 billion. Can Tho and HCM City were second and third with over $1.3 billion and $1.1 billion, respectively.

Export turnover including crude oil is estimated at over $80.6 billion, up 38.7 per cent over the same period last year, accounting for 78 per cent of the country’s export turnover. The import turnover is estimated at over $66.2 billion or an increase of 32.8 per cent compared to the same period last year.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes