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VIETNAM BUSINESS NEWS MARCH 2
Vietnam racks up $1.29 billion in trade surplus in two months
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The country’s trade turnover during January-February topped some 95.81 billion USD, a year-on-year surge of 25.4 percent. |
Vietnam’s trade balance posted positive, 1.29 billion USD, in the first two months of the year, the General Department of Customs said on December 28.
The country’s trade turnover during January-February topped some 95.81 billion USD, a year-on-year surge of 25.4 percent. Of the total, exports amounted to 48.55 billion USD, a yearly hike of 23.2 percent, while imports were estimated at 47.26 billion USD, or 25.9 percent higher than the same time last year.
Foreign-invested companies accounted for 76.4 percent, or 37.07 billion USD, of Vietnam’s total export turnover. Meanwhile, the domestic sector shipped abroad 11.48 billion USD worth of products.
There were nine commodities joining the billion-USD export club, including telephones and parts (9.3 billion USD, up 22.8 percent year-on-year); electronics, computers and parts (6.9 billion USD, up 27.3 percent); equipment, machines and parts (5.5 billion USD, up 72.6 percent); footwear (3.2 billion USD, up 15.4 percent); and wood and wooden products (2.4 billion USD, up 51 percent). They made up 73 percent of the country’s export turnover.
The US was Vietnam’s biggest importer as it splashed out 14.2 billion USD on Vietnamese products, or 38.2 percent higher than the amount it spent the same time last year. China came second with 8.5 billion USD, followed by the EU with 6.3 billion USD, ASEAN 4.2 billion USD, the Republic of Korea 3.4 billion USD, and Japan 3.2 billion USD.
Meanwhile, the country spent big (47.26 billion USD) on imports, with foreign-invested sector purchasing 31.64 billion USD worth of products from abroad for production, up 31.4 percent, while that of the domestic sector surged 16 percent to 15.62 billion USD.
In the two-month period, China was the largest exporter of Vietnam, with revenue estimated at 17.3 billion USD, up 85.7 percent year-on-year, followed by the Republic of Korea with 8.4 billion USD, ASEAN 5.6 billion USD, Japan 3.1 billion USD, EU 2.3 billion USD, and the US 2.1 billion USD.
In a bid to support local firms in promoting production and exports, the Ministry of Industry and Trade said that it will work to capitalise on opportunities from the signed free trade agreements to seek measures for market development. Additionally, it will keep close watch on the global market to identify key export products, while paying due heed to penning measures for market development./.
Switzerland-Vietnam business group debuts
The Vietnamese Embassy in Switzerland has recently held a ceremony to launch the non-profit Switzerland-Vietnam business group (SVBG), which aims at promoting exchanges and investment and trade cooperation between enterprises of the two nations.
Based in Lausanne, the SVBG, the first of its kind founded by Vietnamese expatriates in Switzerland, has been set to focus on offering trade information via workshops, forums, and internal bulletins; providing legal consultations and guidance; developing links for technological transfers and improvement; and introducing quality human resources. It will also make recommendations for more favourable business climate to competent agencies of both nations, while organising socio-cultural activities serving its goals.
Speaking at the debut ceremony, Vietnamese Ambassador Le Linh Lan stressed the group came into being at a special time as Vietnam has placed the COVID-19 pandemic under control and prepared best conditions possible to welcome Swiss investors.
In 2020, Vietnam’s economy grew 2.91 percent, making it one of the few countries that have maintained positive GDP growth while many others in the world fell into severe recession. Also in August last year, the EU-Vietnam Free Trade Agreement took effect, opening up huge trade and investment opportunities for both sides. In last November, as the Chair of the ASEAN, Vietnam successfully pushed the signing of the Regional Comprehensive Economic Partnership (RCEP), establishing the biggest free trade area worldwide.
According to the diplomat, Switzerland is the 6th largest European investor in Vietnam, with its investment totaling 2 billion USD, mostly in manufacturing – processing and electricity. Currently, close to 100 Swiss firms are operating in Vietnam.
Meanwhile, Vietnam is the four biggest trade partner of Switzerland in ASEAN, with bilateral trade exceeding 3.6 billion USD in 2019. Since 2012, Vietnam and the European Free Trade Association (EFTA) – the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland – began negotiations for a FTA, which is expected to be signed this year.
As scheduled, the SVBG will make debut to its Swiss partners at the Webinar Market Focus Vietnam that the group co-hosts with the embassy and the Geneva Chamber of Commerce, Industry and Services./.
Shopping online, a new trend amid COVID-19 pandemic
Online shopping has been increasingly welcomed by Vietnamese consumers since the outbreak of COVID-19. Even though the pandemic has now been largely brought under control, many have continued with this way of shopping due to its convenience.
Many online shopping apps were introduced during the COVID-19 outbreak, creating fierce competition between e-commerce platforms despite the market being relatively new.
Online shopping platforms are forecast to redefine Vietnamese people’s shopping habits even after the pandemic. Experts, however, have recommended that people follow prestigious brands to avoid counterfeit goods./.
Kien Giang keen to become sea-based economic powerhouse by 2025
Boasting 200 km of coastline and 143 islands, the Mekong Delta province of Kien Giang is striving to branch out its maritime sector and become a sea-based economic powerhouse by 2025.
The move aims to contribute to realising the “Strategy for Sustainable Development of Vietnam’s Marine Economy by 2030 with a Vision to 2045”.
According to Standing Deputy Secretary of the provincial Party Committee Mai Van Huynh, the province is prioritising building its maritime sector to boost economic development while protecting the environment and strengthening national defence at sea and on islands.
Major investments have been made in several spearhead industries, such as seafood, tourism-marine services, energy, and maritime industry, among others, helping the province rank second among the 13 Mekong Delta localities in terms of maritime economic development in 2020.
The sea-based economy accounted for 79.75 percent of the local gross regional domestic product (GRDP) during the year, he added.
High-capacity fishing vessels have been built to bolster off-shore fishing, contributing to sustainable fisheries and the protection of the nation’s sovereignty over sea and islands.
With vast fishing grounds and a strong fleet, the province’s annual seafood output tops 500,000 tonnes and its aquaculture yield was estimated at more than 264,100 tonnes in 2020.
Kien Giang is working to secure a total seafood catch and aquaculture output of 800,000 tonnes by 2025.
According to the provincial Department of Agriculture and Rural Development, farming areas in Phu Quoc city, Kien Hai island district, the island commune of Tien Hai in Ha Tien city, and Son Hai and Hon Nghe in Kien Luong district will focus on farming groupers, cobias, yellow-fin pompanos, and seabass, as well as blue lobster, mantis shrimp, crab, and oysters for pearl farming.
Meanwhile, coastal areas in Ha Tien city and the districts of Kien Luong, Hon Dat, An Minh, and An Bien will develop zones for farming molluscs such as blood cockles, saltwater mussels, green mussels, and oysters.
Furthermore, due attention will be paid to high-tech aquaculture, the development of quality staples with high economic value, and measures to prevent illegal fishing.
Local maritime tourism has become a locomotive for growth of the tourism sector, with renowned destinations like Phu Quoc Island. A huge amount of capital has been injected into Phu Quoc city for years, most of which comes from strategic investors like Vingroup, Sun Group, BIM Group, and CEO Group.
According to the provincial Department of Tourism, the province welcomed over 5.2 million visitors in 2020, accounting for 55.8 percent of the plan but down 40.7 percent year-on-year. Revenue from tourism services was put at more than 7.8 trillion VND (339.8 million USD), or 39.3 percent of the target, and down 57.7 percent compared to 2019.
Local tourism is seeing a sound recovery thanks to supportive stimulus measures.
The province will sharpen its focus on tourism infrastructure at key attractions, including Phu Quoc Island, which is to become a world-class marine eco-tourism services hub.
Vice Director of the Department of Tourism Bui Quoc Thai said the province encourages all economic sectors to build and diversify local tourism products, as well as join in efforts to form a major tourism centre.
Regarding energy development, the province prioritises investment in wind power, electrification, solar power, and many other sources of renewable energy.
In the meantime, it has plans to build coastal roads and improve logistics services, while working to preserve ocean biodiversity and restore ocean ecosystems, in particular protecting mangrove forest in tandem with the effective and sustainable exploitation of marine resources./.
Cargo throughput at sea ports posts positive growth in January
More than 62 million tonnes of goods were handled at Vietnam’s sea ports in the first month of 2021, up 17 percent on year despite COVID-19.
Of the total figure, container throughput exceeded 2.2 million TEU, an annual increase of 27 percent.
The Cai Mep – Thi Vai port in Ba Ria – Vung Tau province recorded the highest growth in cargo throughput, at 29 percent, followed by the Hai Phong and Ho Chi Minh City ports, at 26 and 27 percent, respectively.
According to a representative from the Vietnam Logistics Business Association, the volume of goods shipped by sea was affected by not only the pandemic, but also the shortage of ship space and empty containers, and a slowdown in the Vietnamese export market and the global supply chains./.
High-tech farming needs investment and proper policies
Vietnam’s agriculture sector is aiming to be among the 15 most developed countries in the world, in which the agricultural processing sector ranks among the top 10 countries by 2030.
To realise the goal, the Government issued a resolution in 2019 on measures to encourage businesses to invest in effective, safe and sustainable agriculture as part of efforts to help the sector integrate globally.
The Ministry of Agriculture and Rural Development (MARD) recently submitted to the Government a project of export promotion of agro-fishery products by 2030.
The export turnover is expected to reach 50-51 billion USD by 2025 and 60-62 billion USD in 2030.
To implement the target, the MARD will review and propose policies for investment attraction from private and foreign investors into the agro-fishery product processing industry.
For the last five years, there has been a wave of investment into agricultural production with 52,000 businesses, of which the firms directly participating in production hit 13,300, triple the figure of 2015.
The businesses’ participation not only contributed improve the value of agricultural products but also helped farmers access international standards.
In 2020 alone, 18 new factories for agro-product processing opened, a positive signal in improving Vietnam’s agricultural sector.
However, according to experts, although investment in agriculture has flourished in recent years with the participation of many new tycoons, it has not become a strong wave.
Notably, the majority of agricultural enterprises are still small, of which 90 percent are small and super small with capital of less than 10 billion VND (430,000 USD) while the number of enterprises investing in high-tech agriculture is even more modest.
Tran Van Tan, Chairman of Safe and Organic Businesses’ Association of Thanh Hoá Province in central Vietnam, said: “Agricultural businesses had many difficulties in accessing preferential policies leading to difficulties in seeking assistance.”
“Capital was also a big problem. To have the capital to buy agricultural land from farmers was a difficult problem,” said Tan.
“Access to capital from banks was not easy due to many procedures that agricultural enterprises struggled to meet,” he said.
“The accumulation of land to invest in setting up high-tech agricultural zones was also difficult so it required the help from local governments,” he added.
Similarly, Nguyen Thi Diem Hang, Director of the Vietnam Organic Farm Company, said initial expenses for high-tech farming were always higher than traditional farming while high-tech production did not bring immediate economic benefits.
Access to capital and land were also tough problems for agricultural enterprises, Hang said.
“It is necessary to increase the number of businesses taking part in the processing industry to become a kernel for 8.6 million farmers nationwide,” the director said.
“On the other hand, promoting science and technology to produce hi-tech agro-product is an inevitable trend,” she said.
Meanwhile, Ha Van Thang, Chairman of the Vietnam Agriculture Businesses’ Association, said the thing most businesses needed was a legal framework for high-tech farming development.
There was a need for incentive policies such as simplifying loan procedures and completing criteria of high-tech agricultural enterprises to easily access bank loans.
Policies on land accumulation and granting land use right certificates, houses and properties attached with land ownership must be improved, according to Thang.
According to experts, to attract investment in agriculture it was necessary to cut 40-50 per cent of current administrative procedures, improve the business environment and develop businesses substantially.
At the same time, reviews are needed to avoid overlaps in management and inspection and not let one product be subject to the management of too many units. Management methods should change to post-check from pre-check.
Besides, there must be clear planning of material zones connecting with businesses as well as support for the training of human resources for high-tech farming./.
Viet Nam aviation is among fastest growing markets
Southeast Asia will need 4,400 new airplanes valued at US$700 billion to support expanding demand for air travel over the next 20 years, said Darren Hulst, Boeing vice president of Commercial Marketing.
In an online conference yesterday, Hulst quoted Boeing’s 2020 Commercial Market Outlook (CMO), saying: “The intra-Southeast Asian market will become the fifth largest in the world by 2039, and the vast domestic and regional air-travel network across the region positions it well for a post-pandemic recovery.”
With low-cost carriers providing affordable service and added capacity, CMO estimated traffic growth in Southeast Asia to grow by 5.7 per cent annually in the next 20 years, making the region the second largest aviation market in the Asia-Pacific region after China.
Boeing, at the same time, projected the region’s commercial airplane fleet to grow 5.3 per cent annually during the period while the demand for aftermarket commercial services could reach US$790 billion.
Hulst said: “Southeast Asia’s fundamental growth drivers remain robust. With an expanding middle-class and growth in private consumption, the region’s economy has grown by nearly 70 per cent over the last decade, which increases propensity to travel,” adding: “Governments in the region continue to recognise the travel and tourism sectors as important drivers of economic growth.”
Boeing’s vice president said: “Indonesia, Thailand, Viet Nam, Malaysia and the Philippines are the markets that most contribute to the growth in the global aviation market. They are also places with more room for expansion because of the emerging middle class, which could be 60 million new passengers in the next 15 years.”
Hulst also considered Viet Nam as the fastest growing market in terms of growth of air travel in the region with the advantage of a strong domestic market and the recent control of the pandemic.
Mentioning the demand for airplanes in the region, he said though the near-term airplane deliveries were impacted as a result of the pandemic, Boeing estimated operators would need more than 3,500 new single-aisle airplanes in the region by 2039 as the low-cost-carriers have the highest market penetration globally.
The airplane maker said twin-aisle airplanes such as the 777X and 787 Dreamliner still remain foundational to Southeast Asia’s air travel industry, adding one in four twin-aisle airplanes delivered to the broader Asia-Pacific region would go to a carrier operating in Southeast Asia. It forecast the region would need 760 new widebodies by 2039.
As the region’s commercial aviation services growth remained promising in the long term, said the CMO, Southeast Asia commercial services were valued at $790 billion over the next 20 years, a slight increase from last year’s projection, driven largely by growth in freighter conversions and digital solutions and analytics. With such estimation, Southeast Asia expected to require 183,000 more commercial pilots, cabin crew members and aviation technicians.
Globally, Boeing forecast the demand for 43,110 new commercial airplanes and the demand for aftermarket services to be equivalent to US$9 trillion over the next two decades when world air cargo traffic was projected to grow 4 per cent annually due to solid industrial production and world trade. The CMO said freighters would remain the backbone of the cargo industry with the need for 930 new and 1,500 converted freighters during the same span.
High-tech farming needs investment and proper policies
Viet Nam’s agriculture sector is aiming to be among the 15 most developed countries in the world, in which the agricultural processing sector ranks among the top 10 countries by 2030.
To realise the goal, the Government issued a resolution in 2019 on measures to encourage businesses to invest in effective, safe and sustainable agriculture as part of efforts to help the sector integrate globally.
The Ministry of Agriculture and Rural Development (MARD) recently submitted to the Government a project of export promotion of agro-fishery products by 2030.
The export turnover is expected to reach US$50-51 billion by 2025 and $60-62 billion in 2030.
To implement the target, the MARD will review and propose policies for investment attraction from private and foreign investors into the agro-fishery product processing industry.
For the last five years, there has been a wave of investment into agricultural production with 52,000 businesses, of which the firms directly participating in production hit 13,300, triple the figure of 2015.
The businesses’ participation not only contributed improve the value of agricultural products but also helped farmers access international standards.
In 2020 alone, 18 new factories for agro-product processing opened, a positive signal in improving Viet Nam’s agricultural sector.
However, according to experts, although investment in agriculture has flourished in recent years with the participation of many new tycoons, it has not become a strong wave.
Notably, the majority of agricultural enterprises are still small, of which 90 per cent are small and super small with capital of less than VND10 billion (US$430,000) while the number of enterprises investing in high-tech agriculture is even more modest.
Tran Van Tan, chairman of Safe and Organic Businesses’ Association of Thanh Hoa Province in central Viet Nam, said: “Agricultural businesses had many difficulties in accessing preferential policies leading to difficulties in seeking assistance.”
“Capital was also a big problem. To have the capital to buy agricultural land from farmers was a difficult problem,” said Tan.
“Access to capital from banks was not easy due to many procedures that agricultural enterprises struggled to meet,” he said.
“The accumulation of land to invest in setting up high-tech agricultural zones was also difficult so it required the help from local governments,” he added.
Similarly, Nguyen Thi Diem Hang, director of the Viet Nam Organic Farm Company, said initial expenses for high-tech farming were always higher than traditional farming while high-tech production did not bring immediate economic benefits.
Access to capital and land were also tough problems for agricultural enterprises, Hang said.
“It is necessary to increase the number of businesses taking part in the processing industry to become a kernel for 8.6 million farmers nationwide,” the director said.
“On the other hand, promoting science and technology to produce hi-tech agro-product is an inevitable trend,” she said.
Meanwhile, Ha Van Thang, chairman of the Viet Nam Agriculture Businesses’ Association, said the thing most businesses needed was a legal framework for high-tech farming development.
There was a need for incentive policies such as simplifying loan procedures and completing criteria of high-tech agricultural enterprises to easily access bank loans.
Policies on land accumulation and granting land use right certificates, houses and properties attached with land ownership must be improved, according to Thang.
According to experts, to attract investment in agriculture it was necessary to cut 40-50 per cent of current administrative procedures, improve the business environment and develop businesses substantially.
At the same time, reviews are needed to avoid overlaps in management and inspection and not let one product be subject to the management of too many units. Management methods should change to post-check from pre-check.
Besides, there must be clear planning of material zones connecting with businesses as well as support for the training of human resources for high-tech farming.
Thai conglomerate SCG now dominates Viet Nam’s plastic production industry
Under the contract signed on February 9 via a virtual conference, Duy Tan will sell 70 per cent of its shares in five of total twenty-two subsidiary companies, including Duy Tan Plastic Manufacturing Corporation and Duy Tan Long An Corporation, to SCG’s SCG Packaging, Duy Tan said.
Duy Tan Plastic is a leading company in the plastic goods market in Viet Nam with revenue of VND4.7 trillion in 2020. It has nearly 1,000 commodities units and 16,000 distribution agents across the country. The company’s annual capacity reaches 116,000 tonnes of hard plastic packaging and plastic goods.
SCG, Thailand’s largest cement producer, will buy the stakes over three years, starting from 2021. The deal takes a long time as it is based on business results, Duy Tan Plastic said.
Through the deal, SCG and Duy Tan Plastic want to create a solid foundation for a completed supply chain.
Duy Tan Plastic aims at developing hard plastic packaging products, plastic goods and expanding export markets, while the investments help SCG Packaging broaden its hard plastic packaging businesses in ASEAN, especially strengthen capacity to serve FMCG producers and consumers in Viet Nam.
The deal is a part of SCG’s investment plan worth 10 billion baht (US$334 million) to extend its businesses in Viet Nam that has big and growing demands in plastic packaging products.
Wichan Jitpukdee, CEO of SCG Packaging, said that the company will keep investing in Viet Nam, resulting in revenue growth of over 10 per cent each year.
Dominating Viet Nam’s plastic production industry
The plastic production industry in Viet Nam has around 3,300 enterprises with total value of approximately US$18 billion.
The upstream sector of this industry includes petrochemical refineries and chemical enterprises whose main activities are to convert fossil materials into raw plastic beads.
Meanwhile the downstream sector is turning raw plastic beads into plastic products. The downstream can be divided into four main segments, including plastic packaging products, plastic building materials, plastic goods and engineering plastics.
With the deal for Duy Tan Plastic’s shares, SCG is dominating Viet Nam’s plastic industry, especially in plastic packaging products and plastic building materials. These two segments account around 61 per cent of the total market value.
In 2019, SCG Packaging founded Vina Kraft Paper in Binh Duong Province to produce paper packaging products with total capacity of 500,000 tonnes/year.
The company continued to invest in Tin Thanh Packing JSC (BATICO) in 2015. And recently SGC bought 94 per cent of Bien Hoa Packaging JSC’s stakes, with the deal worth of VND2.07 billion (US$89 million).
SCG also owns stakes in many plastic companies including Binh Minh Plastics JSC, Vietnam Construction Materials JSC, Prime Group, Viet Thai Plastchem Joint Venture Company Ltd, TPC Vina Plastic and Chemical Corporation Ltd, Viet Nam Chemtech Company Ltd and Minh Thai Plastic Material Company Ltd.
In 2018 June, SCG signed a contract to buy 29 per cent of Viet Nam Oil and Gas Group (PetroVietnam)’s shares in Long Son Petrochemical Complex Project, raising its equity from 71 per cent to 100 per cent with total investment value of 8.5 billion baht per year.
HCM City to ensure transparent, fair and competitive environment for property market
The chairman of the HCM City People Committee has pledged to review all housing projects in the city and work out solutions to create a “more transparent, fair and competitive business environment”.
Speaking at an annual meeting with the HCM City Real Estate Association (HoREA) last weekend (Feb 27), Nguyen Thanh Phong said the city would work with agencies to address delays in “the issuance of investment policy approval for developers and ownership certificates for homebuyers”.
Le Hoang Chau, chairman of HoREA, said over the past years, the association has submitted numerous petitions and proposals to the Government and local authorities to resolve problems related to investment and construction.
Businesses have frquently petitioned the People’s Committee to speed up procedures for investment approval for commercial housing projects, he added.
In 2020 alone, 61 commercial housing projects were delayed because the land they were allotted was a mix of plots with various purposes and uses, he said.
“A number of projects being built on public lands were halted and are being reviewed for compliance,” Chau added.
According to a report from the Department of Construction, procedures for investment approval of commercial housing projects take up to 247 working days, or 50 weeks, excluding 14 public holidays, which is too long.
The association has also urged city authorities to speed up the issuance of home ownership certificates for more than 30,402 housing units in 163 projects in the city.
“The Department of Natural Resources and Environment needs to work with the Department of Finance, the City Land Price Appraisal Council and other agencies to determine land-use fees for the housing projects to speed up the process,” he noted.
“Priority should be given to home-ownership certificates for homebuyers who have fulfilled their obligations under the housing purchase contract,” he added.
A number of apartment buildings have been built in violation of approved plans and designs in the city, delaying the issuance of land-use and home ownership certificates, according to the Department of Construction.
Many developers have even mortgaged their buildings to get loans for other projects, meaning buyers have been unable to get ownership certificates, it said.
New guidelines
Recently, city authorities issued guidelines to speed up the issuance of land-use and home ownership certificates to buyers to prevent disputes with housing developers.
They divided apartment projects into two categories related to collection of land-use fees and issuance of ownership certificates.
For apartments within a compound, the entire project area is identified as “residential land” and is subject to fees for issuance of certificates for land-use rights, house ownership and other land-related assets.
For those without compounds that come with public areas such as parks, schools, hospitals, and main roads connecting to public roads outside the apartment building, only the area of land used for apartment construction is considered “residential land”.
For the public areas, the city will organise bids to select investors.
The construction of technical works such as electricity and water supply, drainage, lighting, and telecommunications systems must be done by the developer and handed over to the city. No land-use fees will be collected.
The Department of Natural Resources and Environment has been assigned to work with the departments of planning and architecture, construction, and other agencies to classify land areas in each project (both already completed and upcoming) subject to fees for issuance of ownership certificates.
The Department of Construction will be responsible for monitoring compliance with construction norms and penalising violators.
The city has ordered agencies to carefully review investors’ financial capacity before licensing projects. Investors found to have committed violations must be severely sanctioned.
There are 15,000 real estate firms operating in the city.
Experts attributed the challenges facing businesses to inconsistent regulations on housing and land investment. Hundreds of housing projects are under inspection for legal procedures, delaying their progress.
Modern trade channels, e-commerce to be further thrive: experts
Modern and online shopping channels recorded strong growth last year and will continue to thrive this year, according to experts.
Nielsen Vietnam’s retail chain consulting said the COVID-19 pandemic has boosted online shopping and more consumers would choose to shop online even after the pandemic ends.
As of December there were around 8,500 stores nation-wide, including 453 supermarkets and 5,566 minimarts with the rest being convenience, health and beauty, drug, and cash & carry stores.
There is a fierce competition in the retail market, and so each chain has to identify its strengths to retain competitiveness.
According to the Ministry of Industry and Trade, average retail sales and consumer services revenue per capita increased from 19.3 million VND in 2010 to 51.2 million VND in 2019, accounting for 8 percent of GDP.
E-commerce, supported by electronic payment, has grown especially strongly in recent years, averaging over 27 percent growth, it said./.
Cargo throughput at sea ports posts positive growth in January
More than 62 million tonnes of goods were handled at Vietnam’s sea ports in the first month of 2021, up 17 percent on year despite COVID-19.
Of the total figure, container throughput exceeded 2.2 million TEU, an annual increase of 27 percent.
The Cai Mep – Thi Vai port in Ba Ria – Vung Tau province recorded the highest growth in cargo throughput, at 29 percent, followed by the Hai Phong and Ho Chi Minh City ports, at 26 and 27 percent, respectively.
According to a representative from the Vietnam Logistics Business Association, the volume of goods shipped by sea was affected by not only the pandemic, but also the shortage of ship space and empty containers, and a slowdown in the Vietnamese export market and the global supply chains./.
HCM City’s CPI inches up 1.19 percent in February
The consumer price index (CPI) in the southern largest economic hub of Ho Chi Minh City increased 1.19 percent in February from the previous month, according to the city’s Statistics Office.
Among 11 groups of products and services in the CPI basket, the group of housing, electricity, water and construction materials had the highest price increase of 2.06 percent. This included a 13 percent hike in power price, 2.65 percent rise in water price, and 0.14 percent fall in housing rent due to the COVID-19 pandemic.
The prices of restaurant and catering services showed a big jump of 1.35 percent, with those of foodstuff growing 1.79 percent from January. The strongest surges in this group were seen in the prices of pork (5.28 percent), beef (2.36 percent), poultry (3.99 percent) and aquatic products (3.12 percent) due to high demand during the traditional Lunar New Year (Tet) holiday – the biggest traditional festival of Vietnamese people.
Moving in the same trend were groups of beverage and tobacco (0.41 percent), and garment, hats and footwear (0.35 percent).
Affected by the petrol price hikes on January 26 and February 25, transportation fees increased by 1.68 percent.
In contrast, the prices of medicine and medical services dropped by 0.05 percent, and those of the education group decreased by 0.01 percent.
The Statistics Office also said that the gold price went up by 1.1 percent while the price of US dollar expanded 0.02 percent as compared to January./.
Over 18,000 new firms set up in first two months
More than 18,000 new businesses were established in the first two months of 2021, a year-on-year decline of 4 percent, according to the Ministry of Planning and Investment.
The number of employees registered by the newly-established enterprises rose 9.7 percent to 173,000.
The months saw an addition of over 720.4 trillion VND (32.24 billion USD), in total registered capital, up 12.4 percent. Average level in registered capital per enterprise surged 46.4 percent to reach 18.5 billion VND in the period.
About 11,030 enterprises resumed operations in the first two months, down 7.6 percent while 33,611 others were dissolved, an increase of 18.6 percent.
In February alone, as many as 8,038 new businesses were set up with a combined registered capital of nearly 179.74 trillion VND.
The number of new firms represented a year-on-year drop of 12.3 percent while the amount of capital surged 85.6 percent.
The number of workers registered by these businesses reached almost 57,000, down 22.1 percent./.
Udmurtia keen on boosting bilateral trade with Vietnam
First Deputy Prime Minister of the Udmurt Republic of the Russian Federation Konstantin Suntsov has expressed his belief that its bilateral relations and trade with Vietnam will be enhanced in the coming time.
Talking with a Moscow-based Vietnam News Agency reporter, Suntsov said that two-way trade hit 165 million USD in 2019, which was estimated at 200 million USD last year despite impacts from the COVID-19 pandemic.
He noted that Udmurtia is running a trade surplus with Vietnam, with its exports accounting for up to 70 percent of the total value, mostly metal and forestry products, cellulose and papers. Meanwhile, Vietnam has mainly shipped consumer goods to Udmurtia.
While expressing his interest in Vietnamese coffee, Suntsov said Udmurtia’s Tasty Coffee company accounts for about one-third of Russia’s coffee market share.
According to the official, Udmurtia already exported military technical products, metal and wooden products and medical equipment to Vietnam, and plans to ship more farm produce, light chemical industry products and IT services.
At an online trade promotion forum held in late 2020, Udmurtia introduced unmanned aerial vehicles, medical equipment, food colouring products, bleaches used in agriculture and farm produce to Vietnamese partners.
Mentioning important points in the Russia-Vietnam comprehensive strategic partnership, he said the two nations already signed a free trade agreement, thereby raising two-way trade to 6 billion USD in 2018.
He also praised Vietnam for its natural, art and cultural beauty which he felt during his visits to Hanoi, Sa Pa and Ha Long Bay in 2015.
On its capacity as rotating ASEAN Chair in 2020, Vietnam well performed its role in assisting other regional member states in coping with the COVID-19 pandemic, Suntsov said.
In his opinion, the Regional Comprehensive Economic Partnership (RCEP) agreement, signed in 2020, will become a bridge between Russia and Southeast Asia.
As Vietnam is really a bridge between Russia and ASEAN, Udmurtia will also take advantage of that, he said.
Udmurtia is a federal subject of the Russian Federation within the Volga Federal District. Industry now accounts for over 45 percent of Udmurtia’s economic structure. Its enterprises also manufacture equipment for nuclear power plants, medical and oil-gas equipment, metal and plastic products. Agriculture is also an important priority of its development./.
Vietnamese and Japanese firms receive support to expand operations
The Japan Trade Promotion Organisation (JETRO) will host an online scheme on March 3 in Hanoi aimed at connecting Japanese businesses in the field of manufacturing and production, known as Monozukuri in Japanese to facilitate co-operation amid the negative impacts caused the COVID-19 pandemic.
According to a representative from the JETRO, the business matching programme will see the participation of 40 Japanese companies for the purpose of accelerating the development of the country’s supporting industry.
At present, the scheme has received registration for 50 negotiations from enterprises from Japan, Vietnam, and Taiwan (China), whilst it is still receiving registration from businesses wishing to purchase and seek Japanese suppliers in the Monozukuri field until March 1.
A recent survey conducted by the JETRO unveiled that Japanese businesses remain keen on the Vietnamese market as the country is viewed as an alternative investment destinations for Japanese enterprises looking to move away from China due to the COVID-19 pandemic.
The survey indicates that approximately half of Japanese enterprises in the nation plan to expand their production activities, while roughly 70% of them seek opportunities to increase revenue in the local market.
Most notably, 46.8% of Japanese enterprises unveiled that they have initiated plans to expand their business in the nation over the course of the next two years, with the expansion rate ranking fourth, the highest in the Asia-Pacific region.
Japanese enterprises have therefore attributed their expansion to an increase in revenue in the domestic market and high growth potential.
Furthermore, Japanese firms are also considering re-establishing some supply chains which have been impacted by the COVID-19 pandemic, with Vietnam able to capture the attention of suppliers and buyers of materials globally.
Air service on HCMC-Van Don route set to resume
Vietnam Airlines will resume flight operations on the HCMC-Van Don route starting from March 3, as the Covid-19 outbreak in Quang Ninh Province, where the Van Don International Airport is located, has been brought under control.
This is the first local carrier to announce its plan to resume flights to Van Don since the outbreak hit Quang Ninh, reported Nguoi Lao Dong Online.
The national flag carrier will operate one weekly flight on the route on Wednesdays between March 3 and 17 and plans to increase it to three flights per week on Wednesdays, Fridays and Sundays from March 18 to December 31 this year.
The flights will depart from HCMC at 1 p.m. and from Van Don at 3:45 p.m.
The carrier is offering special ticket prices starting from VND33,000 per leg (equivalent to VND507,000 per leg including taxes and fees) for the first three flights on the route between March 3 and 17.
From the fourth flight onward, which will be operated from March 18 to the end of the year, the airfare will start from VND109,000 (or VND590,000 including taxes and fees) for trips taken from March 18 to June 30.
Earlier, the Ministry of Transport decided to shut down the Van Don airport in 15 days from January 29 to February 13 to combat Covid-19, as an airport security staff member tested positive for the coronavirus.
The ministry later extended the airport’s closure to February 21 and then to March 3.
During the recent Lunar New Year holiday, the Vietnam Airlines Group operated 6,050 flights carrying nearly 800,000 passengers, while all of the local airlines operated a total number of 14,400 flights with over 1.7 million passengers.
Construction of US$115 million high-tech dairy farm starts in An Giang
Construction of a large-scale project of high-tech dairy cow farming and milk processing has been kicked off in the Mekong Delta province of An Giang.
Speaking at the kick-start ceremony, Permanent Deputy Prime Minister, Truong Hoa Binh highly appreciated the provincial government that has created advantages for the implementation of the project, towards the sustainable development associated with benefits of business and the community.
He hoped the project will become a typical dairy farm in the region and asked ministries and State units to support An Giang and the investor, TH Group to complete the project on time.
The project costing VND2,655 billion (US$115 million) will have a herd of around 10,000 cows that are expected to produce 135 tons of milk per day.
Besides, the investor plans to build an eco-accommodation site and focus on organic farming and growing to provide agricultural products meeting Global GAP (Good Agricultural Practices) standards.
Gas price increases for the third time in 2021
A statement of the Ho Chi Minh City One-Member Limited Liability Oil & Gas Company (Saigon Petro) said that gas price has edged up VND417 per kilogram, equaling to VND5,000 a 12-kilogram cylinder as from March 1.
With the price spike, a 12-kilogram cylinder costs VND400,500 (US$17.31). The gas prics of Pacific Petro, City Petro, ESGas also surge VND5,000 a 12-kilogram cylinder.
According local gas companies, on March 1, the world gas price is estimated at US$610 per ton, an increase of US$15 per ton in comparison with February. As this reason, they adjusted the domestic gas price.
This has been the third hike of domestic gas price in 2021.
Indonesian Consulate General works to promote investment in Dong Nai
The Indonesian Consulate General in Ho Chi Minh City said it will work as a bridge helping Indonesian firms to invest in the southern province of Dong Nai.
Hanif Salim, Indonesian Consul General, on March 1 visited Dong Nai to explore investment projects in the locality.
Speaking at a working session with local leaders, Hanif Salim said Indonesia’s investment in the province remains limited and is yet to match potential of both sides.
Located in the southern key economic region, Dong Nai has posted high, stable economic growth over the past year.
The province has established 32 industrial parks, of which 31 are operational, attracting 1,533 FDI projects from 45 countries and territories, with total registered capital amounting to 31.8 billion USD.
Indonesia contributes two projects worth 12 million USD./.
Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes
VIETNAM NEWS HEADLINES MARCH 5 (updated hourly)
Many elderly people join 2nd stage of Nano Covax vaccine trials
A total of 367 volunteers, including 30 aged over 60, have been injected with Nano Covax, Vietnam’s first homegrown COVID-19 vaccine candidate, in the second phase of its human trials, according to the Military Medical University.
The second stage has been conducted by the university and the Ho Chi Minh City-based Pasteur Institute since February 26. It has been carried out at the university in Hanoi and the medical centre of Ben Luc district in the southern province of Long An, with the participation of 560 volunteers aged from 12-75, including 80 aged over 60.
They will receive two doses of either the vaccine or the placebo AIPO4, with an interval of 28 days. Each volunteer will be monitored for 12 months after the first dose.
Volunteers receiving shots on the morning of February 26 will receive the second doses in late March.
Lieutenant-General Do Quyet, Director of the Military Medical University, said since the trial sees the participation of volunteers with underlying health conditions, competent authorities have been prepared for all scenarios and ensure safety for all volunteers.
Results of the trial will be announced in May 2021 before preparing for the third-stage trial during which only one single shot of the vaccine will be administered to 10,000-15,000 people from both domestic and foreign pandemic-hit regions, Quyet added.
Developed by the Nanogen Pharmaceutical Biotechnology JSC and the Hanoi-based Military Medical University, Nano Covax is Vietnam’s first COVID-19 vaccine to reach the human trial stage.
The first-stage trial of the Nano Covax vaccine showed that it is likely to be effective against the B117 variant from the UK.
Vietnam is one of 40 countries and territories in the world to have begun human trials of a COVID-19 vaccine, after successfully producing coronavirus test kits early in the pandemic./.
National university processes complaint of lecturers in Korean Studies Faculty
The task force of VNU-HCMC began its work in USSH on March 4. Therefore, in pursuance of Point C, Clause 2, Article 25 of the Press Law, USSH temporarily stops providing related information to the press.
According to Mr. Tran Nam, Head of the Communications and Public Relations Department of USSH, his university strictly observed the procedure to process a complaint, from mediation, formal dialogue, to instruction on sending an official complaint to the Management Board for a feasible solution.
However, USSH did not receive any formal complaint from concerned lecturers. Instead, these teachers directly sent their complaint to the Government Inspectorate of Vietnam (GIV). After receiving the forwarded complaint from GIV, USSH immediately established a task group to handle the case in accordance with regulation.
The 12 lecturers have then sent their complaint for the second time to GIV, which transferred it to VNU-HCMC.
USSH issued a formal criticism to the Dean of the Korean Studies Faculty for the weakness in management tasks, along with a request to adopt a proper solution to tackle this problem. The university also criticized the 11 lecturers because of their lack of respect towards USSH and certain wrong details of the objective truth in their complaint, negatively affecting the organization’s reputation.
USSH proposed to transfer these lecturers to another more suitable department, yet these people unilaterally terminated their work contract. Therefore, the university agreed to their request and offered detailed instruction on the procedure to ensure employee’s rights.
Simultaneously, USSH is hiring visiting lecturers and recruiting new ones so that the operation and training of the Faculty is properly maintained, minimizing the adverse effects of this incident on learners.
First day after social distancing lifted in Hai Duong
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Strict social distancing measures were lifted in the northern province of Hai Duong, Vietnam’s latest COVID-19 hotspot, on midnight on March 3. Local people have begun to resume normal life while still following strict prevention regulations.
Though social distancing has ended in Hai Duong province, Kim Thanh district is one of four localities to still comply with Directive No 15 from the Prime Minister. On March 3, the district intensified its prevention and control efforts, handling violations and taking tests in high-risk communes to prevent community transmission.
Thanh Ha district is among the low-risk districts in Hai Duong. Overjoyed after social distancing ended, local people remain vigilant against the pandemic.
With one commune still implementing Directive No 15, non-essential service and business activities remain suspended in the whole district. Restaurants and eateries are only serving take-away customers.
In Hai Duong city, the number of people going out on to the street has increased compared to the day before. After half a month of social distancing, the rhythm of daily life has yet to return, but local people are seeing some level of normality while remaining vigilant against the pandemic./.
Toddler falling from apartment building discharged from hospital
The three-year-old girl named N.P.H. who fell out of the 13th floor at Nguyen Huy Tuong Apartment Complex in Hanoi was discharged after five days in the Central Children’s Hospital on March 05.
The girl had a dislocated hip joint upon arriving at the hospital on February 28, 2021, whereupon doctors decided to relocate the joint and apply a cast.
According to Head of Pediatric Orthopedics Department at the hospital Dr. Hoang Hai Duc, she has responded well to treatment, and X-ray as well as head CT results upon her discharge showed no abnormal signs.
N.P.H. is scheduled for another hospital visit after two to three weeks to have her health re-evaluated.
The head of the Social Work Department at the Central Children’s Hospital visited and gave presents to the girl before she was discharged. The hospital also assigned helpers to visit little H. at her home for future check-ups.
Previously, the unsupervised little girl fell out of the balcony of her home on the 13th floor and was caught in time by the heroic Nguyen Ngoc Manh, a truck delivery driver who happened to be in the vicinity at the time.
Youngsters join social activities to celebrate Youth Month 2021
Various social activities have been launched by Youth Unions nationwide to celebrate Youth Month 2021.
On March 4, Quang Binh Provincial Youth Union said that local youths have simultaneously joined many activities to help boost local new rural area construction movement, including building houses of gratitude in Van Phu Village (Quang Van Commune) and the Martyrs Cemetery in Quang Loc Commune in Ba Don Town, with a total budget of more than VND200 million. A school construction has been launched in the upland commune of Thuong Trach (Bo Trach District), while in Dong Hoi District, houses for poor households in Phu Hai Ward, Duc Ninh Commune have been repaired. Local Youth Union establishments visited and gave gifts to families in difficult circumstances, as well as joined in garbage collection in residential areas and beaches and promoting communications on prevention and control of COVID-19.
* On the same day, the Council of Young Pioneers of Thai Binh Province coordinated with its affiliate in Vu Thu District to launch the “Thai Binh’s children responding to the Youth Month 2021” movement, with specific practical activities towards children. The organising committee awarded presents and a number of youth projects serving children in Minh Khai Commune (Vu Thu District). A contest to learn about the history of the Ho Chi Minh Communist Youth Union was also launched.
* The Provincial Youth Union and the Steering Committee for the implementation of the Youth Development Programme in Tay Ninh Province have launched the Youth Month 2021. At the ceremony, the organisers awarded 150 scholarships, a social house and 30 gifts to the families of young volunteers in difficult circumstances with a total budget of VND80 million. On the occasion, the Youth Union of Go Dau District awarded VND100 million to youths’ start-up projects.
* Until March 14, the University of Da Nang will receive dossiers for a contest on “Technology start-up among students”, aiming to find and support ideas and initiatives to apply advanced technologies in entrepreneurship. The contest will run until May 15, with four preliminary rounds and then a final round with the participation of the 15 best projects.
Embassy hosts New Year gathering with overseas Vietnamese in Belgium
The Embassy of Vietnam in Belgium held a get-together with overseas Vietnamese on March 4 to celebrate the Lunar Year of the Buffalo.
At the event, Ambassador to Belgium Vu Anh Quang extended his greetings to the local Vietnamese community, and voiced his encouragement to the community after a year full of hardships caused by COVID-19, while expressing his gratitude for their activities in support of the homeland.
Quang, who is also head of the Vietnamese mission to the EU, also informed the participants on future activities, along with the results of the fight against COVID-19 in Vietnam, the country’s socio-economic development and success of the 13th National Party Congress which took place before Tet (Lunar New Year) festival.
Despite difficulties, the association of Vietnamese people in Belgium raised 6,000 EUR (7,170 USD) for flood victims in Vietnam’s central region last year, which helped farmers at a cooperative to resume production and stabilise their lives, according to a member of the organisation./.
Hanoi ready to restart socio-economic activities with Covid-19 under control: Mayor
Hanoi’s mayor called for local governments to provide support for businesses affected by the pandemic, and review current existing supporting programs to ensure greater efficiency.
Hanoi is ready to restart and accelerate socio-economic activities as the Covid-19 situation in the city has been put under control.
Chairman of the Hanoi People’s Committee Chu Ngoc Anh gave the remarks at the city’s monthly meeting on March 4.
“The priority in March is to strictly comply with anti-Covid-19 measures and boost socio-economic development,” Ngoc Anh said.
Among measures to boost the local economy, the Hanoi’s mayor requested greater efficiency in global integration to boost exports, while adopting a more selective approach in attracting high quality foreign direct investment (FDI).
“Hanoi aims to create a favorable business environment to further attract investment capital, along with more support to spur the growth of the private sector and pubic investment,” he noted.
As public investment continues to be a key solution to aid economic recovery this year, Ngoc Anh urged local authorities to closely monitor the progress of public projects and those financed by ODA funds.
Ngoc Anh called for local governments to provide support for businesses affected by the pandemic, and review current existing supporting programs to ensure greater efficiency.
Hanoi’s economic performance in the first two months stayed positive with the Index of Industrial Production (IIP) expanding by 7.5% year-on-year, higher than the 5.8% rate recorded in the same period last year.
The city’s trade turnover also witnessed strong recovery as exports in the two-month period reached US$2.3 billion, up 12.7% year-on-year, staying in stark contrast with a contraction of 19% in first two months of last year.
Foreign direct investment (FDI) commitments to Hanoi in the year to February 23 hit US$58.9 million. The investors registered to pour US$14 million into 28 fresh projects, and an additional US$4.1 million into nine existing projects. They have also injected US$40.8 million to acquire stakes or contribute capital in local companies.
This year, Hanoi targets an economic growth of 7.5-8%, a strong rebound from the 3.98% in 2020.
Volunteers sought for second homegrown COVID-19 vaccine trials
People, aged from 18-59 and residing in Hanoi, can register for human trials of Vietnam’s second COVID-19 vaccine candidate COVIVAC from March 5 morning.
In the first phase of the trials, 150 healthy volunteers will be injected with two doses of 0.5ml with an interval of 28 days.
They will be divided into five groups, including one group provided with placebo shots, and their health will be closely monitored within 24 hours after injections.
Each volunteer will have their health checked-up eight times in 12 months.
After 43 days since the first phase starts and shows good results, the second phase will be carried out at the medical centre of Thai Binh province’s Vu Thu district, with 300 volunteers.
The homegrown vaccine has been developed by the Nha Trang-based Institute of Vaccines and Medical Biologicals (IVAC) and the Hanoi Medical University since last May, using primary chicken embryo cell culture, a technique the institute used previously to successfully produce seasonal flu vaccines.
COVIVAC has undergone pre-clinical trials in India, the US, and Vietnam, said IVAC Director Dr. Duong Huu Thai, adding that results showed that it satisfies all conditions to be tested on humans.
The vaccine candidate demonstrated high immunogenicity during pre-clinical trials. It was created based on studies of new SARS-CoV-2 strains.
This vaccine is expected to have a price of around 60,000 VND (2.59 USD) per dose.
Exhibition: “Those who do not move, do not notice their chains”
The exhibition, held by international and Vietnamese female artists in Hanoi to commemorate life and work of Rosa Luxemburg, will be opened to public from March 5 to April 12
In commemoration of the 150th birth anniversary of Rosa Luxemburg, the Non-governmental organization of Rosa-Luxemburg-Stiftung in Hanoi will organize an exhibition titled “Those who do not move, do not notice their chains”, showcasing artworks from five female artists.
The title of the exhibition is taken one of Rosa Luxemburg’s famous quote: “Those who do not move, do not notice their chains.”
“This presentation is a response and an echo to Rosa Luxemburg’s life of fighting for a fair society,” noted by Tuan Mami, the curator of the exhibition.
The idea of this exhibition is built upon Rosa’s inspiration and her revolutionary theory, to keep the link between people whose strive to devote their lives for humanity and who always act to make society better.
This unique showcase brings together five female voices who have contributed significantly to society and culture through their arts and activities.
The five artists (Veronika Radulovic, Nguyen Trinh Thi, Nguyen Phuong Linh and Joyce Ho) come from different backgrounds, societies, and generations. They will be creating a dialogue to discover various aspects of lives and continuously ‘Reform’ themselves to adapt to changes in life.
The exhibition is opened to public from March 5 to April 12, 2021 at 8C, 76 To Ngoc Van street, Tay Ho district, Hanoi.
Along with this special event, Rosa Luxemburg Stiftung – Southeast Asia will also launch a book titled “Immortal Rose”, which is written upon her political legacy, and portrays a revolutionary woman she was through concise yet vivid narrative, embellished with artistic illustrations.
Rosa Luxemburg (March 5, 1871 – January 15, 1919) was a Polish Marxist, philosopher, economist, peace activist, and revolutionary socialist.
E-health declaration compulsory for all air passengers: CAAV
All passengers have to make e-health declaration before boarding flights at airports across Vietnam as requested by the Civil Aviation Authority of Vietnam (CAAV), part of efforts to prevent COVID-19 transmission.
To implement the Prime Minister’s recent directions on COVID-19 prevention and control, the CAAV has asked relevant agencies and units to coordinate closely with localities to apply anti-coronavirus measures appropriate to the risk level in each area and site.
It demanded that related parties must not lower their guard while minimising adverse impacts on goods transportation, production and business activities, and people’s lives and pushing ahead with the 5K principle: khau trang (facemask), khu khuan (disinfection), khoang cach (distance), khong tu tap (no gathering) and khai bao y te (health declaration).
The security force at airports has to instruct passengers to make e-health declaration so as to ensure that all passengers will complete the procedure before getting on board.
The CAAV also told airport authorities to disseminate the abovementioned information to all foreign airlines, as well as agencies and units operating at airports nationwide./.
PM urges completion of draft resolution on specific policies for Thua Thien-Hue
Prime Minister Nguyen Xuan Phuc on March 4 urged relevant agencies to promptly complete a draft resolution on specific mechanisms and policies for Thua Thien-Hue central province based on the conservation and development of Hue’s heritage and cultural identity, to be submitted to the National Assembly Standing Committee.
More than one year ago, the Politburo issued a resolution on the construction and development of Thua Thien-Hue to 2030, vision to 2045, aiming to turn the province into a centrally-run city in tandem with the conservation and development of heritage and cultural identity of the former imperial capital.
As a step to implement the resolution, the Government has been working on a draft resolution of the NA Standing Committee outlining some specific mechanisms and policies for the province.
The draft resolution allows the application of specific criteria on population size and density, budget balance and per capita income, and stipulates specific mechanisms and policies to help Thua Thien-Hue capitalise on its potential and resources for development while harmonising economic growth and cultural development, thereby raising people’s income.
It puts forward four major policies regarding entrance fees to relic sites, a fund for the conservation of Hue relics, loans to the province and the handling of land and properties managed by central State agencies, which are viewed as important in creating optimal conditions for Thua Thien-Hue to become a centrally run city as targeted in the Politburo’s Resolution./.
VFF to conduct inspection and supervision over elections in localities
The first phase of supervision and inspection over the upcoming elections of deputies to the 15th National Assembly and People’s Councils at all levels in the 2021-2026 term will be implemented from March 15 to April 13 with five inspection teams, each covering three provinces and centrally-run cities and one district in each locality.
The teams will focus on examining affairs related to the guidance of procedures in introducing candidates, communications on the elections, the organisation of negotiations to introduce candidates to the 15th National Assembly and People’s Councils at all levels in the 2021-2026 tenure, the submission of candidates’ documents, and the collection of voter’s opinions on the candidates, among others.
Speaking at the second meeting of the Steering Committee for the Elections of Deputies to the 15th NA and People’s Councils at all levels in the 2021-2026 tenure in Hanoi on March 4, President of the Vietnam Fatherland Front (VFF) Central Committee Tran Thanh Man hailed the VFF’s specialised agencies in advising the steering committee on the organisation of training courses on election activities, inspection, introduction of candidates, and meetings to collect voters’ opinions.
He asked the agencies to assign officials to take the charge of citizen reception, giving voting guidance, and receiving and handling complaints and denunciations related to the elections.
Man requested the steering committee to continue focusing on guiding localities and member organisations in holding the elections, while discovering their difficulties to give timely solutions, ensuring that the elections take place in a democratic, safe and economical manner in line with the law.
Along with the inspection and supervision activities, the VFF should focus on organising the second negotiation conference at the central level, while continuing to gathering voters’ opinions on the candidates and verifying problems discovered by voters.
The elections of deputies to the 15th NA and People’s Councils at all levels in the 2021-2026 tenure is slated for May 23./.
COVID-19 patient in Hanoi relies on ECMO due to critical condition
A COVID-19 patient given treatment at the National Hospital of Tropical Diseases in Hanoi is currently receiving extracorporeal membrane oxygenation (ECMO), a sophisticated form of therapy aimed at saving individuals who are in a critical condition.
Furthermore, the patient is also showing signs of edema, bleeding of the skin, and gum bleeding.
However, according to Dong Phu Khiem, deputy head of the Department of Positive Recovery, the patient still has a chance to be saved as his heart, liver, and kidneys are working properly.
Vietnamese doctors are also treating several seriously-ill COVID-19 patients in both Hanoi and Quang Ninh.
As of March 3, the country has recorded a total of 2,482 positive COVID-19 cases, including 1,566 domestic infections and 916 imported ones.
Visitors wearing ao dai to receive free entrance to Hue’s relics
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Visitors in ao dai at the Hue Imperial City (Photo: VNA) |
Free entrance to relics in Hue city of central province of Thua Thien-Hue will be offered to visitors wearing ao dai (Vietnamese traditional dress) during three days from March 6-8 , announced the provincial People’s Committee on March 4.
It is part of activities in response to the “Week of Ao Dai” event launched by the Vietnam Women’s Union (VWU) and a project highlighting Hue as the capital of ao dai, and to celebrate the 111th International Women’s Day on March 8.
Relevant agencies in the province have been asked to join hands with the provincial women’s union to take part in the “Week of Ao Dai” event and the aforementioned project.
Thua Thien-Hue has organised a panoply of programmes to honour the charms of ao dai and promoted Hue city as a capital of the traditional costume, calling on local residents to wear ao dai regularly at schools and workplace.
Upcoming National Assembly election to have 184 constituencies
There are 184 constituencies across Vietnam in the election of deputies to the 15th National Assembly (NA), according to a new resolution.
The resolution was adopted by the National Election Council on March 3, specifying the number and list of constituencies and the number of NA deputies to be elected in each constituency nationwide.
Hanoi and Ho Chi Minh City have the largest number of constituencies, 10. HCM City will have 30 NA deputies, the highest number among centrally-run cities and provinces, followed by Hanoi, 29.
The election is scheduled to take place on May 23, which falls on Sunday./.
Heat wave strikes southern Vietnam
Ho Chi Minh City and other localities throughout the south are in the midst of a long heat wave with temperatures reaching up to between 35 and 36, even 38 degrees Celsius.
Moving forward over the coming days, Quyet anticipates that the region’s UV Index will remain at a ‘very high’ level, from nine to 10.
He therefore predicts that the next five days will see the average temperature in the southern region remain around 34 to 36 degrees Celsius. In Ho Chi Minh City, average temperatures will be around 35 to 36 degrees Celsius, although the real feel may be higher, around 37 to 38 degrees Celsius.
Local residents are therefore advised to wear sun protective clothing alongside sunglasses, hats, face masks, and sunscreen when going out during the daytime. They are also encouraged to drink more water to avoid dehydration in the scorching sun.
Mekong Delta faces peak saltwater intrusion in March, April
Saltwater intrusion in the Mekong Delta will continue to increase in March and April, according to the National Centre for Hydro-Meteorology Forecasting.
The peak of saltwater intrusion will occur during high tide on March 12 -16, March 27 – April 1, April 9 – 14 and April 24 – 30.
The delta, the country’s largest rice, fruit and seafood producer, is facing a higher than normal level of saltwater intrusion from the sea through river mouths in the ongoing dry season. However, it is not as severe as the level of the previous dry season.
The delta’s provinces have dredged irrigation canals to store more water and upgraded and built dams and sluices to prevent saltwater intrusion and store fresh water.
Nguyen Thien Phap, head of Tien Giang province’s Irrigation Sub-department, said the province has built eight dams to store fresh water for agricultural production and supply daily use water for 800,000 households.
Farmers in Tien Giang, the country’s largest fruit producer, have stored irrigation water in their orchard ditches for fruit and other crops.
In Ca Mau province, farmers have stored fresh water in containers and have switched to growing drought – resistant crops.
The delta sowed the ongoing winter-spring rice one month earlier than normal to avoid a shortage of irrigation water at the end of the crop. Farmers are now harvesting the winter-spring rice and have had a bumper harvest. The harvest of the winter-spring rice is expected to be completed in May./.
Quang Ninh strives to recover tourism, service sectors
Authorities of the northeastern province of Quang Ninh have pledged to work with business and tourism associations to recover the tourism and service sectors against the backdrop of the COVID-19 pandemic.
Secretary of the provincial Party Committee Nguyen Xuan Ky requested local firms and people to bolster communications towards promoting Quang Ninh as a safe, stable and developing locality in a new normal situation.
He called on businesses to join hands with local authorities and people in taking advantage of every chance to stabilise production and business, while staying vigilant and ready to battle the pandemic.
With the new wave of COVID-19 outbreak contained, the province reopened activities at tourist attractions and places of worship at 0:00 on March 2, while preventive measures are still in place.
Activities at Ha Long Bay, a UNESCO World Heritage Site, have also been resumed.
However, the sites are temporarily only open to those who are living and working in the province.
To support tourism firms, Quang Ninh has launched four promotion packages worth billions of VND in an effort to maintain incentives for the sector, and offer ticket discounts at numerous famous tourist destinations since last year.
It has also worked to devise new products and hosted various cultural, sports and tourism events, as well as introduced tourism promotions.
A member of security staff at Quang Ninh’s Van Don International Airport tested positive for the coronavirus SARS-CoV-2 in January, forcing the closure of the airport until March 3./.
MoLISA proposes keeping region-based minimum wage unchanged in 2021
The Ministry of Labour, Invalids and Social Affairs (MoLISA) is collecting ideas on a draft proposal to the Government in which the National Wage Council suggests it not raise the region-based minimum wage in 2021 after considering the socio-economic circumstances.
The ministry explained that amid the impact of COVID-19, the raising of the minimum wage would affect employment, as businesses are still facing various concerns.
According to calculations by the National Wage Council, with the consumer price index (CPI) estimated to have risen 4 percent each year in 2019-2020, the minimum wage applied in 2020 was still higher than the minimum living conditions, by 1.51 percent. The council added that with a real CPI increase of 3.23 percent in 2020, the regional minimum wage was actually higher than the minimum living conditions, by 2.28 percent.
Therefore, the council recommended that the region-based minimum wage be kept unchanged in 2021 and that adjustments be made in 2022.
According to the draft proposal, upturns were seen in unemployment as well as the number of dissolved enterprises or those suspending operations. Last year, 101,700 companies ceased operations, up 13.9 percent over 2019.
MoLISA said that experts and management officials agree that amid the difficulties in socio-economic conditions, business operations, employment, and incomes in 2020, it is necessary to choose prioritised areas for support, with careful consideration given to wage policy to ensure social sustainability.
The ministry underlined that if the socio-economic situation and relevant factors are favourable, adjustments to the minimum wage could be considered on January 1, 2022 instead of July, as proposed by the Vietnam General Confederation of Labour, which also matches international practice.
Vietnam has made adjustments to the minimum regional wage 18 times since 2000.
The ministry added that if there are any abnormal developments, the National Wage Council will submit a report to the Government for consideration./.
Consulate General supports Vietnamese in Preah Sihanouk during COVID-19
The Vietnamese Consulate General in Preah Sihanouk has called on Vietnamese-Cambodians and Vietnamese people working in the province to be cautious given the local spread of the COVID-19 pandemic, while following prevention and control measures set by authorities, in particular reducing travel in the current context. The Consulate General has also suggested relevant agencies in the province provide the best care for Vietnamese citizens who tested positive to the coronavirus SARS-CoV-2 in the locality.
When help is required, Vietnamese-Cambodians and Vietnamese citizens in Preah Sihanouk can contact the Consulate General via its consular service hotline on 0882 248 888 or the overseas Vietnamese affairs hotline on 0977 988 666.
Cambodian Prime Minister Samdech Techo Hun Sen on the night of March 3 instructed competent authorities to stop people’s movement out of Preah Sihanouk in order to prevent the spread of COVID-19 to other provinces, according to the Khmer Times.
He also advised boosting vaccinations in the coastal province, underlining that more vaccines, both Sinopharm and AstraZeneca, would be sent there on March 4.
Since the third wave of COVID-19 hit Cambodia on February 20, Preah Sihanouk has recorded 80 cases, comprising 60 Chinese, five Vietnamese, and 15 Cambodians./.
More than 390 Vietnamese citizens flown home from Myanmar
More than 390 Vietnamese citizens were flown home from Myanmar on two flights on March 4, which were arranged by Vietnamese agencies, the Vietnamese Embassy in Myanmar, and Vietnam Airlines in coordination with Myanmar agencies.
Passengers on the flights included under-18 children, people with illnesses and those in other especially disadvantaged circumstances.
Amid the recent developments in Myanmar along with complicated COVID-19 situation, the embassy has kept a close watch on the situation and contact with citizens so as to give them specific guidance for arriving at the airport safely and on time. The embassy also sent officials to the airport to assist citizens in completing necessary procedures for boarding the flights.
In order to ensure health for the citizens and prevent the spread of the pandemic, strict security, safety and epidemiological measures were implemented throughout the flights.
Immediately after the flights landed in Da Nang airport, passengers and crews on the flights were given health check and sent to concentrated quarantine facilities in line with regulations.
The repatriation of citizens in disadvantaged circumstances abroad will be arranged in accordance with people’s wish, the pandemic’s development and domestic quarantine capacity./.
More subjects of Vietnamese universities enter QS ranking 2021
More subjects of Vietnamese universities have been added into the Quacquarelli Symonds (QS) ranking 2021.
The ranking rated 51 groups of subjects in five fields at 1,500 tertiary education establishments with about 14,000 training programmes.
The Vietnam National University (VNU) – Hanoi’s business and management research major entered the list for the first time, apart from computer science and information system, mechanical engineering, aviation and manufacturing, maths, physics and cosmology which appeared in the previous edition of the ranking.
The Hanoi University of Science and Technology (HUST) had four subjects ranked, including computer science and information system, electrical engineering-electronics, mechanical engineering, aviation and manufacturing, and maths.
The VNU– Hanoi is the only university in Vietnam to have business and management research named in the ranking, placed in the group of 501-550 among 1,161 establishments in the list.
Its computer science and information technology moved down from the group of 501-550 in 2020 to the group of 601-650, ranking second in Vietnam, behind the HUST.
Its math major still stood in the group of 401-450 globally, taking the lead in Vietnam. It is followed by the HUST with a place in the group of 451-500.
Meanwhile, mechanical engineering, aviation and manufacturing returned to the group of 451-500 compared to 2020, behind the HUST in the group of 401-450.
In 2021, the VNU-Hanoi is also the only university in Vietnam to have its physics and cosmology ranked, in the group of 501-550.
As for electrical engineering-electronics, the HUST was still in the group of 401-450 and took the first spot in Vietnam.
The ranking is based on a methodology that assesses each institution on four criteria, including its reputation among academics and employers./.
“Da Nang by Night” piloted to revive pandemic-hit tourism
Chairman of the People’s Committee of central Da Nang city Le Trung Chinh has signed a plan to pilot the “Da Nang by Night” programme, to revive tourism and services hurt by the COVID-19 pandemic while implementing the city’s scheme to develop the night-time economy.
The programme will be piloted from 2021-2023, starting from April 30 this year on the occasion of the Southern Liberation and National Reunification holiday.
It will include lighting shows, night-time tourism and service activities at selected places of interest, and cultural events along the Han River, such as street dances, music, food, and traditional arts.
There will also be night tours along the Han River.
As part of the programme, there will be happy hours when tourists can enjoy special discounts at local shops, supermarkets, shopping centres, and restaurants, in order to boost demand after 10pm.
Director of the municipal Tourism Department Truong Thi Hong Hanh said the programme seeks to create new distinctive tourism products to enhance the experience of tourists to the city./.
National contest launched to promote reading
A national contest for students has been launched to seek Việt Nam’s Reading Culture Ambassador 2021.
The contest ‘Reading Culture Ambassador’ run by the Ministry of Culture, Sports and Tourism aims to inspire the passion and the habit for reading among young people.
“The contest will affirm the role and value of reading culture in building the human capacity of Vietnamese people,” said Phạm Quốc Hùng, head of the culture ministry’s Library Department.
“Reading culture will contribute to improving people’s knowledge, developing thinking and creating ability and enhancing personality and soul.”
Under the Government’s project of ‘Fostering a reading culture within the community, with an orientation to 2030’, the contest is among a wide range of activities to spread and develop reading culture.
As well as encouraging reading and the creation of a learned society, the contest also aims to help improve understanding of the rich national culture.
Last year, the contest opened for visually impaired people, and the Việt Nam Association of the Blind is in charge of it.
Pupils and students can take part in the preliminary round from now to July 31.
In the final round, entries will be submitted to the organising board before August 5, 2021. The awarding ceremony to honour the Ambassador of Reading Culture will be held by the end of October 2021.
The organising board wants entrants to write about their favourite book which changed their mind and their life, compose a story or poem or write a continuation of a story or a book.
The entries have to answer the question: “If you will be the Ambassador of Reading Culture, what would you do to promote reading in the community?”
Last year, the contest attracted more than 1 million entries from 5,400 schools.
Đặng Phương Nam from the People’s Police Academy and Nguyễn Hoàng Yến from the Đông Triều High School in the northern province of Quảng Ninh were given the title ‘Ambassador of Reading Cutlure 2020’.
More than 250 prizes were presented to outstanding collectives and individuals at the contest.
Families install safety nets after Hanoi child apartment fall
Many families living at apartment buildings in Hanoi and HCM City have installed balcony safety nets after a baby girl in Hanoi fell from the 12th floor of an apartment building.
A resident from Hanoi’s Nam Tu Liem District, Hai Lan said, “We have just moved to this area so many things are still incomplete. But after hearing that a baby girl fell from the 12th floor, I had the balcony safety net installed immediately. I felt so careless for not installing the net sooner.”
Lan said she had two small children and chose a net that cost VND180,000 (USD8) per square metre.
Another resident in Hanoi, Trung Nghia, said he had not only installed the net on the balcony, but also along the staircase.
Hai, a service provider in Hanoi, said he used to have only two or three customers a day. But recently, he received up to 60 orders a day. He said that the net was very durable and would not be much damaged by the weather.
Tran Van Toan from HCM City’s District 12 said he lives on the 8th floor with two children. One of his children is five years old and the other is only 18 months old.
“After watching the clip, I felt so worried about my children. My wife and I decided to install the safety net immediately since both my children are very active and don’t know how to protect themselves yet. We don’t want to regret it later,” he said.
He later installed 10 square metres of safety net for VND1.9m (USD82). According to Toan, many of his neighbours are also planning to install safety nets.
Even families who are not live in apartment buildings also feel worried. Nguyen Thuy Van from District 3 said she already installed the safety net for the second and third-floor of her house. “My child always plays near the balcony so we want to be more careful. It costs us about VND2.2m (USD95),” she said.
Dinh Van Sau from Go Vap District said he had received 60 calls from customers who wanted to learn more about safety nets. 20 people have ordered one for their home in the past three days. A safety net will not affect the apartment’s aesthetic or become too stuffy while protecting the children. The cost of the net ranges from VND150,000 (USD6.5) to VND210,000 per square metre.
Other service providers in Tan Binh District also reported having received more orders in the past few days and their revenues had boomed five to six times.
Da Nang plans to build tunnel under airport, metro system
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Da Nang is calling for investment in major transport projects over the next five years. |
The central city of Da Nang is planning to construct a six-lane tunnel under the airport as part of its key infrastructure projects to call for investment over the next five years.
The 3.7 kilometre long project, with the main underground section running 2.8 kilometres, is expected to cost VND8.228 trillion (US$359 million) and will connect with urban zones located to the west of Da Nang Airport.
The city is also planning to build a rapid transit system with two metro lines running east-west and north-south, at an estimated total investment of VND54.5 trillion (US$2.38 billion).
The east-west line connects Nam O in Lien Chieu District with An Hai Dong in Son Tra District through the city centre, while the north-south line links Son Tra and the airport area with Khue Trung in Cam Le District.
Such metro projects will be implemented under public-private partnerships.
In addition, Da Nang is calling for investment in a rail line linking Da Nang and the old town of Hoi An in neighbouring Quang Nam Province.
Da Nang will also seek to attract investment for Lien Chieu Port, the project to relocate the Da Nang Railway Station, the Lien Chieu Port logistical centre, and Da Nang Airport.
Cultural, sports construction projects seek city’s approval
The Department of Culture and Sport of HCMC has submitted construction projects of cultural and sport works and solutions to solve problems in this area to the municipal People’s Committee.
Accordingly, public investment projects include the building of Phu Tho Horse Racing Ground, land allocation of the HCMC Multi-Cultural Center in Can Gio District, rebuilding HCMC Cultural Center, handing over land to the expansion of the Ho Chi Minh Museum – HCM City branch, the property right over land to upgrade the HCM City Culture and Arts College in HCMC.
Regarding to socialized projects, the department has made suggestions on land allocation for Phan Dinh Phung Sports Center; delegating The Housing Management and Construction Inspection Center (HMCIC) of the HCMC Department of Construction and functional units to complete procedures to refund to Bong Sen Yamachi Co,. Ltd; asking the HMCIC to hand over the building at No.99 on Pasteur Street in District 1 to the Department.
The Department of Culture and Sport has also proposed for an approval on expenditure allocation for Sports nutrition.
Quang Nam to expand habitat of grey-shanked douc langur
Efforts are being made toward a goal of expanding the habitat of the grey-shanked douc langur in central Quang Nam province’s Nui Thanh district to 150ha by 2030.
The goal is set in a local project to preserve the endangered grey-shanked douc langurs.
A study conducted in October last year by GreenViet, a non-profit organization, showed that natural forests on 30ha in Nui Thanh’s mountains are home to six families of grey-shanked douc langurs with a total 68 individuals. This is the sole visible population in the world.
According to Vice Chairman of the district People’s Committee Ngo Duc An, the current priorities are to implement strict protection over the natural forest and restore 30ha of native plants to ensure food supplies and living conditions for the endangered creature.
The project worth more than 64 billion VND (2.78 million USD) will work to tranform 60 ha of production forest into special-use forest and establish a natural reserve for the langur in Nui Thanh’s Tam My Tay commune.
According to the project, all fields are still owned by locals thus suitable regulations will be built to ensure the rights, interests and responsibilities of people involved, with special attention paid to growing large trees and native plants to create a habitat for the langur as well as a natural ecosystem for ecotourism. As such, the conflict between human’s livelihoods and endangered fauna and flora’s habitats will be eased.
Chairman of the Quang Nam People’s Committee Le Tri Thanh said the expansion of habitats and diversification of food sources for rare species are an urgent but long-term work.
Quang Nam is determined not to let economic development make strong impact on or cause the loss of these precious animals, he underscored.
By 2025, Quang Nam authorities are trying to change at least 150 ha of production forest to special-use forest and cultivate native plants to ensure sustainable food supplies and living conditions for the grey-shanked douc langurs in Nui Thanh, according to the official./.
Over 5,000 runners to compete in Tien Phong Newspaper Marathon
More than 5,000 runners from 50 delegations across the country are expected to join in the 62nd Tien Phong Newspaper Marathon, slated for March 27-28 in the Central Highlands province of Gia Lai.
They comprises 500 professional and 4,500 amateur athletes who will compete in 5km, 10km, 21km and 42km categories, according to the Vietnam Sports Administration under the Ministry of Culture, Sports and Tourism.
Organisers said as of early March 2021, over 4,000 athletes had registered for the event.
The tournament is expected to help promote the image, culture and people of Gia Lai to domestic and foreign friends.
To ensure the success of the event, provincial leaders asked relevant units to quickly devise a detailed scenario, and assign tasks to departments, agencies and localities.
How to organise the tournament safely amidst the complex developments of the COVID-19 pandemic is a top priority, the organisers said. /.
Preparations underway for first phase of clinical trials for Covivac vaccine
The Institute of Vaccines and Medical Biologicals (IVAC), working in co-ordination with the Hanoi Medical University, has prepared training ahead of the first phase of clinical trials to test the effectiveness of the home-grown Covivac vaccine for the novel coronavirus (COVID-19) in mid-March.
Ahead of the trials, Hanoi Medical University has prepared all necessary facilities for vaccine injections, volunteer monitoring, and emergency aid.
The representative from the Hanoi Medical University stated that the clinical trial area will be located on the third floor of the university’s dormitory, while all accommodation, medicines, and equipment for human trials has been prepared in line with standards set out by the Ministry of Health.
According to the schedule, volunteers will remain at the clinical trial area for a period of 24 hours after receiving their shots and will be subject to strict health observations by the research team.
Covivac is a homegrown vaccine that has been researched and developed by IVAC. Indeed, it will be the nation’s second COVID-19 vaccine to be clinically tested on humans.
The first shot of Covivac vaccine in the first phase of clinical trials will be given to volunteers by mid-March. According to the initial assessment, Covivac is effective against the new SARS-CoV-2 strain detected in the UK and South Africa. Moving forward, IVAC plans to offer the Covivac vaccine at a price of VND60,000 per dose.
Meanwhile, as the first domestically-produced COVID-19 vaccine, Nanocovax, developed by Nanogen Pharmaceutical Biotechnology JSC, has now moved onto its second phase of human trials.
At present, another local vaccine researcher named the Vaccine and Biological Production Company (Vabiotech) is in the process of preparing to submit documents to participate in clinical trials.
Forum held to engage men in promoting gender equality
A national forum titled ‘Engaging Men and Boys in the Promotion of Gender Equality and the Elimination of Gender-based Violence’ was held in Hà Nội on Tuesday with 200 delegates participating both online and in-person.
The forum was held by UN Women in Việt Nam, the Institute for Social Development Studies (ISDS), and the Network for the Prevention of and Response to Gender Violence (GBVNet), with financial support from the Australian government.
It offered an opportunity for organisations, groups and men’s clubs in Việt Nam to introduce and share lessons, experiences and challenges in mobilising the participation of men in promoting gender equality as well as preventing and responding to violence against women and children.
Delegates at the forum agreed to establish a network of men and boys participating in the promotion of gender equality and the elimination of gender-based violence in Việt Nam.
In his address, UN Resident Coordinator in Việt Nam Kamal Malhotra expressed his appreciation for the initiative.
“With the active participation of men and women, I believe the process of achieving the gender equality goals in the Sustainable Development Agenda to 2030 will be accelerated in Viet Nam. Because everyone has to promote gender equality, for everyone’s benefit,” he said.
ISDS Deputy Director Trần Kiên said many Vietnamese men have realised that to avoid being left behind in the new era they must participate more in promoting gender equality and sharing opportunities with women.
This lies behind the establishment of a network of men and boys participating in the promotion of gender equality and the elimination of gender-based violence, Kiên added.
Elisa Fernandez Saenz, Country Representative of UN Women in Việt Nam, spoke highly of the success of men’s clubs in Đà Nẵng and HCM City and welcomed the initiative to set up the network.
She expressed a belief that the network will spread positive attitudes about masculinity, change rigid gender norms and help men ease the pressure caused by these norms and engage them in activities to promote gender equality and combat gender-based violence in Việt Nam.
Việt Nam’s COVID-19 vaccination drive likely to begin next week: Health official
Việt Nam’s COVID-19 vaccination will begin right after the health ministry receives an accreditation certificate from the Republic of Korea (RoK) for the COVID-19 vaccine batch that arrived on February 24, which is due later this week or early next week.
Deputy Minister of Health Trương Quốc Cường made the announcement at the Government’s regular press conference in Hà Nội on Tuesday, in response to questions over vaccination progress after the first 117,600 doses of Oxford/AstraZeneca, manufactured in RoK, bought commercially via Việt Nam Vaccine Company (VNVC), had arrived in Việt Nam.
The Ministry of Health has assigned the National Institute for Control of Vaccine and Biologicals to verify the batch, which has been basically completed. It is now waiting for an accreditation certificate from the RoK before health authorities can begin inoculations.
According to the official, the vaccination effort is in line with the Government’s Resolution No. 21/NQ-CP on the purchase and use of COVID-19 vaccines, which details nine priority groups for free inoculations – including frontline workers (medical staff, public security and military officers, workers directly involved in the pandemic efforts; customers officers, diplomats sent overseas on official missions; teachers and front-facing public administrative offices; essential service workers; elders above 65 years old, people in outbreak regions; the poor; among others).
Besides these groups, pandemic-hit localities will also be prioritised and the northern province of Hải Dương, the epicentre of the current community outbreaks that have logged nearly 700 COVID-19 cases to date, will be one of the first provinces and cities to get access to the vaccine.
According to the Resolution, individuals and organisations are also encouraged to voluntarily pay for vaccine shots.
When more vaccines are readily available, the Government is ready to expand inoculation for all having demand to achieve community immunisation.
As scheduled, another batch of Oxford/AstraZeneca vaccine along with vaccines from COVAX Facility will be delivered in late April. The ministry has prepared infrastructure and resources for storage and vaccination, Cường said.
St. Petersburg hosts virtual travel forum with Vietnam
On March 3, the administration of Russia’s St. Petersburg City virtually held the second international travel forum with Vietnam to boost tourism between the two sides.
Vice Director of the Vietnam National Administration of Tourism Nguyen Le Phuc welcomed the event, saying that the forum will help boost confidence and recovery of tourism between the two countries following the unprecedented challenges posed to international travel by the COVID-19 pandemic.
Demyan O. Smilevets, head of the Russian Federal Agency for Tourism’s Department for International Cooperation, said Vietnam remains a popular destination among Russian tourists. According to Russia’s Federal State Statistics Service, about 572,000 Russians visited Vietnam in 2019, up 8% from the previous year while the number of Vietnamese visitors to Russia rose by 9% year-on-year to 59,000.
Russia sees Vietnam as a promising market because of the friendship between the two countries’ people, he said.
He noted that Russia has started issuing e-visas for Vietnamese citizens since January 1, 2021, with Vietnamese visitors allowed to stay in Russia for 16 days. But due to COVID-19, the new policy has yet to come to reality, he said.
He urged travel agencies from both countries to work together to promote safety and convenience to attract more visitors.
Meanwhile, according to Deputy Chairman of the Committee for Tourism of St. Petersburg Nana M. Gvichia, the number of Vietnamese visitors to the Russian city was only paid 25,000 in 2019 and it is relatively small compared to Vietnam’s population of 100 million.
She vowed that St. Petersburg will do its utmost to ensure safety for all visitors in the face of COVID-19.
Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes
VIETNAM BUSINESS NEWS FEBRUARY 8
Flower growers look to online sales amid COVID-19 resurgence
Workers at a flower farm in Da Lat City. |
Traditionally, city dwellers shop for flowers and botanicals at flower markets to fill their home with the most cheerful blooms to celebrate the new year.
But many flower growers said that flower markets were not busy this year, leaving them with an oversupply.
Nguyen Duy, a flower farm owner in Da Lat City, said that COVID-19 outbreaks in many localities would likely affect people’s purchasing power for flowers ahead of Tet festival.
Thuy Vu, director of the The Gioi Hoa Tuoi JSC, a wholesale supplier of flowers, said it would not focus on retail sales for the Tet festival this year due to market uncertainty.
Nguyen Thi Ngoc Lan, a flower vendor at Ho Thi Ky flower market in HCM City, said flowers stockpiled for the Tet market this year were not as numerous as last year due to concerns over weak purchasing power.
Purchasing orders with flower farms are expected to change in the next few days depending on the control of COVID-19, Lan said.
Flower farms in Da Lat City have seen a 55 per cent drop in orders from wholesale markets in other cities and provinces, according to a survey of the Da Lat City People’s Committee.
The committee, however, has reported a boom in online sales of agricultural produce, flowers and botanicals ahead of Tet.
It advised farms to use bank transfer payments for retail orders and to sign contracts with merchants for wholesale orders to ensure the success of online deals.
Livestreams
Shoppers can find various types of flowers from flower farms and merchants on online shopping platforms.
Nguyen Thi Bich Thuy from Biofresh Company in Da Lat City has hosted livestreams via Facebook to guide viewers through different types of flowers and plants available on the farm.
Amid the pandemic, live commerce has helped promote and sell products, and engaged potential shoppers, Thuy said.
Tran Van Tam, a flower grower in Da Lat City, said that flower farms in the city adopted online sales to reach new buyers as wholesale buyers were reluctant to close deals due to worries about weak demand.
This year, flower farm owners are concerned that they will be left with an oversupply of flowers, so they expect to quickly sell stocked products at reasonable prices, Tam said.
Dalat Hasfarm is offering Tet collections of flower vases and combo deals for cut flowers and pot plants with discounts on online orders.
Online flower markets are also featuring extensive selections of imported flower products such as forsythia, ilex, and Japanese peach flowers. A vase of imported flowers costs VND3-9 million (US$130-390).
Rice trading businesses post good results on higher rice price
Vietnamese agricultural companies recorded high profit in 2020 as the country’s rice exports saw good results.
In 2020, Viet Nam’s rice export volume fell by 1.9 per cent year-on-year to 6.2 million tonnes, but export value increased 11.2 per cent to $3.1 billion, according to calculations based on data from the General Department of Viet Nam Customs.
Climate change and disruptions in supply chains due to COVID-19 have affected Viet Nam’s rice production, resulting in an increase in the rice price. Last year, Viet Nam’s average rice price for export rose 13.3 per cent year-on-year to nearly US$499.3/ton.
The rice price was also boosted by rising demand around the world as many countries stockpiled food due to concerns over the pandemic.
This helped rice trading companies like Loc Troi Group JSC (LTG), Vietnam National Seed Group JSC – Vinanseed – (NSC) and Trung An Hi – Tech Farming JSC (TAR).
The fourth quarter financial report showed that Loc Troi’s revenue surged nearly 77.5 per cent year-on-year to VND3.5 trillion in the last quarter of 2020. The company’s profit after tax was VND163.7 billion in the same period, four times higher than that of 2019.
In the whole of 2020, Loc Troi’s revenue declined by nearly 9.7 per cent to VND7.5 trillion, but it still recorded an increase of over 10 per cent year-on-year in profit after tax to nearly VND369 billion as its expenses reduced.
Loc Troi is a leading company in trading agriculture commodities, such as pesticides and seeds, and food which mainly is rice.
Vinaseed also saw a sharp increase in revenue in the fourth quarter after slowing down in the first three quarters.
The company’s revenue climbed 22 per cent year-on-year to nearly VND666.6 billion in the last quarter, but its profit after tax fell 6.2 per cent to over VND70 billion as sales and administrative expenses increased 15.6 per cent and 10.5 per cent, respectively. It’s profit after tax in 2020 also decreased to VND194.5 billion.
The seed sector, which mainly is rice, plays an important role in Vinaseed’s businesses, accounting for more than 93 per cent of revenue and profit. Last year, Vinaseed’s industrial centre for seed and agricultural product processing in Dong Thap Province was opened, increasing its production capacity by over 40 per cent.
In the fourth quarter, Trung An reported a rise of 8.5 per cent year-on-year in net revenue to VND613.1 billion, while its profit after tax fell sharply in the same period as its financial activities and other expenses rose. The company’s profit after tax decreased by 81 per cent year-on-year to nearly VND6.3 billion.
However, thanks to good results in the first nine months of 2020, Trung An’s profit after tax for the whole year still increased 46.5 per cent to VND88.2 billion.
With the rally of rice prices since the beginning of 2021, investors expect businesses in the industry to take advantage of this trend to see positive results in the first quarter of this year.
Viet Nam’s rice price for export was quoted around US$500/ton in January, according to a report from the United States Department of Agriculture.
Local wood industry to capitalise on export opportunities to US
With the housing market in the United States enjoying strong growth, demand for wooden furniture is expected to rise considerably, opening up bright export prospects for the Vietnamese wood industry.
According to data released by the United States International Trade Commission, during the opening 11 months of last year, the US’ imports for wooden furniture endured a decline of 0.6% to US$16.8 billion compared to the same period from 2019.
Vietnam remained as the largest supplier of wooden furniture to the United States throughout the reviewed period, with the export turnover reaching US$6.26 billion, a rise of 30.9% on-year.
The proportion of imports from the country accounts for 37.2% of the total import value, up 9% compared to last year’s corresponding period.
Most notably, Vietnam is the largest market for bedroom furniture for the US, making up 49.7% of the US’ total import value, followed by Malaysia, China, and Indonesia.
Nguyen Liem, chairman of Lam Viet Joint Stock Company, attributed this increase in US demand for wooden furniture to the impact of the novel coronavirus (COVID-19) pandemic as it has forced many Americans to remain indoors and focus on activities such as renovating their homes and purchasing new furniture.
He emphasised that Vietnamese wood brands in the US market have significantly improved in recent years due to American people being willing to purchase Vietnamese wooden furniture at more expensive prices over similar products from the Chinese market.
Do Xuan Lap, chairman of the Vietnam Timber and Forest Products Association, pointed out that the wood industry’s strategic export products in the US market will be kitchen cabinets and bathroom cabinets.
Due to this, Lap advised local firms to be aware of market changes and appropriate product strategies, while enhancing their competitiveness to deeper penetrate into the global supply in order to increase exports to the demanding market.
US to impose anti-dumping tax on Vietnamese copper pipes
The US Department of Commerce (DOC) has issued a preliminary conclusion regarding an anti-dumping investigation into copper pipes which originate from Vietnam, according to the Ministry of Industry and Trade.
This includes copper pipes coded: 7411.10.1030; 7411.10 .1090; 7407.10.1500; 7419.99.5050; 8415.90.8065; and 8415.90.8085
In line with the preliminary conclusion reached by the DOC, copper pipes have been imported from Vietnam and subsequently dumped in the US with a margin of 8.05%, which is far lower than the plaintiff’s initial allegation of 110%, along with the anti-dumping tax of up to 60% that the US is currently applying to copper pipes from China.
Based on these conclusions, the US is set to impose a preliminary anti-dumping tax rate of 8.05% on Vietnamese copper pipes.
The DOC also stated that due to the impact of the novel coronavirus (COVID-19) pandemic, it will not conduct on-site verification as part of the investigation. Instead, it will make the final determinations through use of alternative methods.
The DOC is poised to announce a deadline for stakeholders to submit its written comments, while concerned parties may also request a hearing by submitting a written request to the DOC within 30 days since the notice of the preliminary conclusion.
Vietnam’s export turnover of copper pipe products to the US in 2019 and 2020 reached US$151.1 million and US$183.9 million, respectively.
Industrial park developers promote sustainability to attract “eagles”
It is these industry leaders who are driving a movement as they look for a partner that matches their same sustainable outlook and goals.
As a result, local businesses in Vietnam, and industrial park developers in particular, are transforming their business model as well as adapting to international standards to attract these “eagles”. Although it can be tricky for industrial parks to balance profitability, concern for environment, and social commitments, there are still multiple ways they can do to stay sustainable.
In 2020, the “Eco-industrial Park Intervention in Vietnam – Perspective from the Global Eco-Industrial Parks Programme” project was launched in Ho Chi Minh City by the Ministry of Planning and Investment (MPI) and the United Nations Industrial Development Organisation (UNIDO).
At the workshop, five industrial parks across the country were chosen to implement eco-industrial park initiatives. The project will be carried out in a period of three years with an aim to establish a more sustainable industrial park model and pave the way to the replication of this model across Vietnam in the future.
One of the five pilot industrial parks is DEEP C Hai Phong I (also known as Dinh Vu Industrial Zone), the first footprint of DEEP C group in Vietnam. The industrial park cluster has gained a reputation as the only European-managed industrial park in Vietnam, with compatible European quality in all business aspects, from general infrastructures, utilities supply to park operations. Located in Hai Phong City and Quang Ninh province, DEEP C Industrial Zones is the northern representative of the project.
Long before the recent selection, DEEP C implemented their environmental sustainability strategy on four pillars: power, water, waste, and green zone. The main goal is taking the complexity out of investing in Vietnam while achieving common sustainability goals with investors. Overall, the strategy is to drive economic growth in a sustainable manner for DEEP C, investors and local community.
Depending on the nature of each industrial park, the developers can adopt different practices to stay sustainable. For DEEP C, they are the first industrial park to make a road from recycled plastics and a smart electricity grid possible in Vietnam. The recycled plastics road currently lies in DEEP C Hai Phong II Industrial Park in Hai Phong. More asphalt roads using recycled plastic will be stretched out all over DEEP C Industrial Zones as an innovative solution to address plastics waste and advance circular economy in Vietnam.
The group is now working on the generation of renewable energy from rooftop solar panel and wind turbine. By 2030, it aims to supply 50% of energy demand within its industrial park. Sustainability is also present in reusing of treated wastewater for various industrial purposes such as cooling tower of tenants, preserving mangrove forest along our port area as a natural buffering.
Construction work comply with strict standards on safety and environment before, during and after construction such as innovation (road made from plastics), sustainable sourcing of materials (containers), sustainable sites, energy efficiency (optimising solar and wind energy), indoor environment quality and water efficiency. In the years to come, DEEP C’s ready-built factories will be designed in the most nature-friendly way possible with LEED standards.
“We believe that eco-industrial park is the future of the industry and are happy to raise the standards for developing infrastructures inside industrial park and spread the benefits of eco manufacturing,” said Koen Soenens, General Sales and Marketing Director at DEEP C Industrial Zones.
“Sure it’s good for the environment, but it’s also good for the image, the quality of working and living, and it’s cost-saving for the maintenance and operations.”
DEEP C Industrial Zones launched its base in Hai Phong City, Vietnam in 1997 with the development project of Dinh Vu Industrial Zone (nowadays known as DEEP C Hải Phòng I), a collaboration between Belgian group Rent-A-Port and Hai Phong People’s Committee.
Over the past 23 years, DEEP C has evolved to be one of the largest industrial park developers in Vietnam with five sub-zones covering 3,400 ha of industrial land, forming an industrial cluster in Hai Phong City and Quang Ninh province – the most dynamic growing region in the northern region.
To date, DEEP C Industrial Zones are home to 120 projects with a total investment of US$4 billion, backed by multinational companies like Bridgestone, Idemitsu, Knauf, Chevron, tesa.
Efforts made to promote sale of crops in virus-hit provinces
According to the Ministry of Agriculture and Rural Development, the total winter crop area which had not been harvested was more than 7,830 ha, or 35 per cent of the northern province’s total crop area. In Kinh Mon district, there was about 3,500 ha of onion, 350 ha of carrot in Nam Sach and 400 ha in Cam Giang, 200 ha of vegetables in Gia Loc, 200 ha in Tu Ky and 400 ha in Kim Thanh.
In Quang Ninh, the total unharvested crop area was more than 2,000 ha, mainly potato, corn and vegetables with a total yield of about 30,000 tonnes.
The ministry said that it was important to raise solutions to promote the sale of farm produce for farmers in locked-down areas.
The ministry said that prices of farm produce in Hai Duong had decreased by around 10-20% since the outbreak of virus clusters late last month.
Nguyen Nhu Cuong, Director of the ministry’s Department of Crop Production, the sale of carrot and potato was the most difficult at the moment because these two products had high output volume while domestic consumption accounted for just 10 percent and the rest must be exported.
The capacity of cold storage in Hai Duong was limited, which would be a problem if the virus was not put under control before Tet, he said.
He added that the transportation of goods to/from locked-down areas was very difficult. Local markets were also tightening disease control measures.
Hanoi, Hai Phong and Quang Ninh were the major markets for the consumption of Hai Duong’s farm produce. However, these provinces were banning all vehicles and people from Hai Duong, which affected the consumption. Wholesalers from other provinces did not want to come to Hai Duong to collect farm produce with hesitation over the virus and worries that they must practice social distancing.
According to the Hai Duong provincial Department of Agriculture and Rural Development, around 128,000 tonnes of vegetables, meat and fish in the province were waiting for consumption.
In that context, it was important to promote consumption in the province, increase storage and implement processing for longer preservation, the ministry said.
It was a must to apply prevention measures following the guidance of the Ministry of Finance when transporting products out of the virus-hit areas, the agriculture ministry said.
At the same time, preparations must be made for the next cultivation season.
Recently, the Quang Ninh provincial Department of Industry and Trade helped connect for the sale and 17 million potatoes, worth VND153 million (US$6,600).
Six enterprises also bought more than 10,000 chickens for farmers in Chi Linh city.
First Chilean cherries enter Vietnamese market
A launching ceremony took place recently at Thu Duc wholesale market and Biovegi store in Ho Chi Minh City to mark Chilean cherries penetrating the Vietnamese market for the first time.
To meet the increasing demands of consumers, the Chilean Fruit Exporters Association (ASOEX) has been co-operating alongside the Chilean embassy and the Chilean trade promotion agency in Vietnam (ProChile) to accelerate the import and distribution of Chilean cherries within the Vietnamese market.
Cherries are popular among Vietnamese consumers due to their taste and health benefits, especially their antioxidant capacity. Indeed, the consumption season for Chilean cherries usually begins in December and lasts until the end of February.
After being imported into Vietnam, cherries will then be distributed to shopping malls, supermarkets, convenience stores, and wet markets throughout the country.
The promotional scheme started on February 5 and is due to run for the duration of February.
Agribank among most valuable global banking brands
The Vietnam Bank for Agriculture and Rural Development (Agribank) ranks 173rd among the world’s 500 most valuable banking brands, according to a list recently released by the world’s leading independent brand valuation and strategy consultancy Brand Finance.
Featuring in the Brand Finance Banking 500 list for 2021, Agribank climbs a total of 17 notches compared to the 2020 version, earning the highest spot among the eight commercial Vietnamese banks to be named on the list.
Last year saw the Vietnamese banking industry face many changes and challenges as the entire country coped with the impact of the novel coronavirus (COVID-19) pandemic.
Throughout 2020 Agribank continued to confirm its prestige by winning major prizes such as Vietnamese national brand, being among the top 10 of the VNR500 which features the 500 largest local enterprises, and being named the bank for the community.
Brand Finance is a leading independent brand valuation and global strategy consultancy that was founded in London, the UK, in 1996.
The consultancy evaluates 5,000 brands globally and announces over 100 reports annually.
HCM City industries make good start to 2021
HCM City’s Index of Industrial Production rose by 34.5 per cent in January despite the continuing problems caused by the COVID-19 pandemic.
The city’s four main industries have seen year-on-year growth, with electronics achieving the highest rate of 61.9 per cent.
The remaining three industries are mechanics (44.3 per cent growth); food and beverages (27.3 per cent); and chemical, rubber and plastic (up by 51.7 per cent).
Others such as wood and bamboo processing and automobile also reported growth.
Nguyen Phuong Dong, director of the Department of Industry and Trade, said that due to the city’s efforts to control the pandemic, economic activities are recovering.
Business activity has generally picked up, with more than 3,300 businesses reopening.
Retail sales and services were worth nearly VND120 trillion (US$5.2 billion), a 4 per cent increase.
Exports were up by 16.4 per cent.
The local authority said the city will seek to keep the pandemic under control while still ensuring economic growth.
It is guaranteeing sufficient supply of foodstuff and other high-quality goods and steady prices during Tet, and will organise festival and entertainment events for the festival while complying with the Government’s COVID-19 requirements.
It is focusing on carry out the 13th National Party Congress’ resolution (which contains social-economic targets and national development orientations) and the city’s 11th Party Congress resolution.
Digital Transformation will “give a hand” to businesses in the new era
Digital transformation holds the key to businesses keeping up with market trends, overcoming challenges and seizing opportunities amid the current unpredictable situation.
And, Microsoft’s ‘Tech Intensity’ will play a key role in enhancing businesses’ resilience and transformation of organisations.
According to a Microsoft-IDS study, 74% of all business decision-makers in the Asia Pacific say that innovation is an imperative now. They see the ability to innovate, especially digital transformation, as vital to performance and resilience before and after the Covid-19 pandemic.
Always the pioneer in technology, Microsoft has never stopped researching or developing tools and solutions to enhance digital transformation globally, especially by businesses.
In Viet Nam, it keeps businesses abreast of new digital transformation trends by organising programmes to introduce digital transformation solutions and share the experiences of businesses that have achieved the transformation.
Digital transformation is always an urgent requirement for business to survive and thrive, especially amid the pandemic. To enable businesses to embrace innovation, Microsoft has introduced the concept of Tech Intensity, which determines the success of businesses amid the current crisis.
Tech Intensity consists of four key pillars that enable the success of an organisation during the transformation process.
The first is vision and strategy. Businesses need to become more resilient to change, and also need to think beyond what organisations think is possible, especially at a time when speed and agility are vital to survive.
The next is culture, which supports strategy and vision to activate and empower employees. Organisations that are successful in digital transformation will have their employees unite and work based on a vision in which employees are shared.
The third one is differentiation of potential. Those businesses that discover the differentiation of potential of their organisations will respond and adapt to any circumstance more easily.
The last one is capacity, a combination of human capacity and technology. Businesses need human capital equipped with the right skills as well as appropriate and secure technology platforms with the ability to empower employees with remote access and promote business development under any circumstances.
Pham The Truong, General Manager of Microsoft Vietnam, said, “The combination between people and technology within an organisation will create new opportunities for businesses.”
Nanoco, a leading electrical equipment distributor, has chosen Microsoft as a trusted partner for its digital transformation. To meet its business development and market expansion needs, the company has adopted Microsoft’s digital transformation solutions and achieved much success.
Luong Luc Van, General Director of Nanoco, said: “We are really pleased with our experience with [Micosoft solutions] from Office application to Teams tool and cloud storage solution OneDrive. It is also very easy to collaborate and share documents.”
With its diverse and flexible solutions, Microsoft will continue to help businesses achieve digital transformation, successfully exploit digital data, improve their efficiency, and optimise their operation process.
Food company Vissan profit tops $9.01 million
Vissan Joint Stock Company reported pre-tax profits of nearly VND208 billion (US$9.01 million) on revenues of VND5.16 trillion ($223.4 million) for last year, in both cases achieving the targets it set for itself.
Its production of beef and processed products also met the targets while pork output fell slightly short.
It launched many new products last year, including pork braised with eggs and coconut water, beef ball, dragon fruit dumpling, gac fruit dumpling, pumpkin dumpling, five-spice mushroom spring roll, and ready-to-cook pork.
It began selling via a hotline, 19001960, Fanpage and website at vissanmart.com, and launched online stores on Sendo, Lomart and Grab.
In 2021, amid shrinking pork supply due to the African swine fever epidemic, Vissan plans to find more farms that meet VietGAP standards and TE-FOOD traceability to ensure steady pig supply.
It also plans to develop more fresh meat products using chilled meat processing technology and modified atmosphere packaging technology, and expand its distribution system, especially online.
HCM City to throw the book at high-end property developers for violations
The HCM City Department of Natural Resources and Environment plans to review the progress of high-end property projects and fine or even withdraw the licences of those found violating regulations.
If they are excessively late, their land might be repossessed as permitted by the law.
At the same time, the city’s authorities will publicise the mortgaged projects, according to the city People’s Committee.
It has instructed the Department of Planning and Investment to tighten control over foreign investment in property and the repatriation of profits to prevent money laundering and tax evasion.
The city will also review mortgaged and long-delayed projects facing obstacles caused by land regulations, delay in paying land-use fees or the slow handover of house use right certificates.
The Department of Construction has been ordered to keep a close watch on the property market to avoid price bubbles.
The directives seek to redress the imbalance in the housing market caused by the huge supply of high-end apartments and shortage of housing for low-income people.
The shortage of social housing and mid- and low-priced houses is making it hard to ensure social welfare, according to a recent report by the HCM City Real Estate Association.
It has called on developers to increase their investment in the mid- and low-priced segments to address the imbalance.
Tourism firms ask for help during new Covid-19 outbreak
Tourism firms in HCM City are calling for support from local authorities after thousands of customers cancelled their Tet tours following the new Covid-19 outbreak.
Nguyen Thi Khanh, chairwoman of the Tourism Association of HCM City, said they had sent an official document to the Ministry of Culture, Sports and Tourism, Vietnam National Administration of Tourism, HCM City People’s Committee, Vietnam National Tourism Association and HCM City Department of Tourism about support policies for tourism firms.
According to Khanh, many tourism firms in the city are facing great difficulties as thousands of customers have cancelled their bookings following the recent Covid-19 outbreak.
The official said that the government’s response to new community Covid-19 infection cases has resulted in many achievements but there are still several shortcomings. For example, tourism firms still have to pay both corporate taxes and VAT on time while the deadline for at least VAT was extended for six months in March 2020. Firms were still suffering from losses.
The programme to reduce electricity charges for restaurants ended in 2020. Khanh also sought support policy to extend the deadline to pay social insurance. Currently, the deadline will only be extended for firms who already cut 50% of their staff.
The Tourism Association of HCM City asked to waive or reduce the VAT by 50% for 2021 because most accommodation establishments, tourism firms, transportation firms and tourism sites have little to no income while having to pay interest and other costs. The government should exempt land rental fees in 2021 and 2022, help tourism firms access preferential loan packages, extend the repayment period to avoid bad debts and help renew and issue business licenses for free in 2021.
Other requests include reducing electricity charges in 2021, extending the deadline for social insurance payment until June 2022 and adjusting the requirements for unemployment insurance benefits like reducing minimum working time requirements from 12 to 3 months.
Statistics from the Department of Tourism show that 453 accommodation facilities in HCM City had electricity charges reduced, 600 tour guides were given support packages, 21 firms had various fees reduced and some firms which had collaterals had repayment deadlines extended for interest rates lowered.
In the future, firms will get support from Vietnam Bank for Social Policies so that they can access lower interest rates or longer deadlines without needing collateral.
Home cleaning services in high demand as Tet nears
Home cleaning services are in great demand again in Hanoi as busy homeowners want clean houses for Tet.
Thuy Quynh from Hai Ba Trung District said both she and her husband were all too busy at year-end so they decided to a hire cleaning service.
“Both I and my husband are not allowed to have an early break. We only have enough time to buy food for Tet,” she said. “We called many places but they were all full of orders. We kept calling and finally were able to find a provider that was still receiving orders.”
Despite higher fees, Phuong Hoa from Hoang Mai District said it was still acceptable.
Nguyen Thu Trang, an employee at Alin Cleaning Services said only a few slots left. They have different packages for cleaning apartments while the cost for cleaning houses will be calculated by square metres. A cleaning package for an apartment that is less than 60 square metres is around VND1.2m (USD52). The prices are VND22,000 per square metre for penthouse apartments that are over 150 square metres.
The services remain open until the 28th day of lunar December.
The detail of the service will be given to the customers. Another service provider in Cau Giay said they had to visit the houses or apartments first to gauge the size and materials they have to work with to set the prices. It will also be varied depending on the cleaning chemicals the owners want to use.
The usual prices are VND15,000 to VND20,000 per square metre. At year-end, the prices often increased by 20%.
Vietnamese and foreign investors open more stock trading accounts
Both Vietnamese and foreign investors continue to open more accounts as the local stock market to capitalise on perceived opportunities in the market.
According to fresh data from on stock trading from Vietnam Securities Depository (VSD), the number of newly opened domestic individual investor accounts in January 2021 reached a record high with 86,107 accounts – an increase of 36.5 per cent compared to December 2020.
This is also the fifth consecutive month domestic individual investors have opened more than 30,000 new accounts a month. Meanwhile, domestic institutions opened 162 new accounts in January, down from 168 accounts in December 2020.
As of January 31, the total number of securities accounts of domestic investors reached more than 2.8 million, an increase of 86,269 accounts compared to the previous month.
In January, the VN-Index hit 1,200 points and created a short-term market peak. Around the beginning of January, trading value on Vietnam’s stock market continuously set a record high and reached more than VND20 trillion ($870 million) in one trading session.
However, due to strong fluctuations at the end of January, trading liquidity in the first sessions of February decreased significantly and was only around VND15 trillion ($652 million) per session.
Meanwhile, foreign investors opened 476 new accounts in January, up about 23.3 per cent on-month. This is also the highest level since June 2018. Of this, foreign individual investors have opened 460 new accounts, while 16 accounts are from institutional investors. By the end of January 31, foreign investors had a total of 35,547 accounts in Vietnam’s stock market.
Which Vietnamese banks have been keeping NPLs under 1 per cent?
While a number of banks experienced sharp increases in non-performing loans (NPLs) due to the unprecedented pandemic, some lenders have successfully kept their NPL ratios below 1 per cent.
Meanwhile, Vietcombank – one of the largest state-owned lenders in Vietnam – recorded VND5.229 trillion ($227.35 million), down more than 50 per cent compared to the end of September and down 10 per cent compared to the beginning of 2020.
The bank’s NPL ratio dropped sharply from 1.01 per cent at the end of this year’s third quarter to 0.62 per cent by the end of 2020 – also the lowest level in its history.
ACB’s NPL ratio remains one of the lowest levels in the landscape. According to the bank’s financial statements, soured debts at the end of 2020 were VND1.840 trillion ($80 million), up 27 per cent compared to the beginning of the year.
Similarly, BAC A BANK’’s NPL ratio increased slightly but was still controlled below 1 per cent. The bank’s NPLs at the end of 2020 amounted to VND628 billion ($27.3 million), up 25.6 per cent from the beginning of the year.
The fifth lender reporting an NPL ratio below 1 per cent is ViettinBank (around 0.94 per cent as of December 31, 2020), according to local newswire Doanh nghiep & Tiep thi. This is also its lowest NPL ratio in the 2016-2020 period.
VietinBank and ACB in 2020 have signed exclusive bancassurance contracts with major life insurers (VietinBank with Manulife, ACB with Sun Life). These deals are envisaged to provide the two lenders with a large amount of revenue, while also boosting their stock value.
HDBank and MB had more than 1 per cent NPL ratios due to their consumer finance companies (HD Saison of HDBank, and MCredit of MB). However, the asset quality of the parent banks remains basically good in the domestic banking system.
The bad debt ratio of HDBank’s banking arm by the end of 2020 was only 0.93 per cent, while that of MB was 0.92 per cent.
Another local lender below the 1 per cent threshold is NamABank, the newly-listed ticker in UPCoM. The bank’s total bad debt ratio decreased from 1.97 per cent at the end of 2019 to 0.83 per cent as of December 2020.
Insurance segment sits in good stead
Despite several challenges stemming from intense competition, the health crisis, and low interest rates, the local insurance landscape is predicted to maintain its growth momentum in 2021.
Other insurers are also going public or working with foreigners. For instance, Petrolimex Insurance JSC – a subsidiary of Petrolimex – has confirmed to raise its foreign cap from 49 per cent to 100 per cent.
Currently Vietnam boasts 31 non-life insurers, 18 life insurers, 16 brokers, and two reinsurers. Many reputable foreign insurance companies have a presence in Vietnam in both life and non-life sectors.
However, according to brokerage Saigon Securities Incorporation (SSI), aviation, travel, and freight insurances, which make up for around 6 per cent of the total non-life insurance premium revenue, were heavily affected by the COVID-19 pandemic.
The premium revenue for both health and life insurance reported a plunge in the social distancing period in March and April of 2020. However, these segments witnessed a steady recovery in the following months.
According to the Association of Vietnam Insurance, the health and life insurance premium revenue in the first three quarters of 2020 increased by 25.6 and 21.2 per cent, respectively, against the same period of 2019.
SSI indicated that the two largest enterprises are losing market share in life and non-life insurance, demonstrating fierce industry competition.
In the first three quarters of last year, the non-life market share of Bao Viet Holdings Group and PetroVietnam Insurance decreased while six companies increased their life insurance market share – Manulife, AIA, Generali, MB Ageas, FWD, and Aviva. Others lost market shares, such as BaoViet Life, Prudential, Dai-ichi Life, Chubb Life, and Hanwha Life.
In late December, VietinBank and Canadian insurer Manulife inked an exclusive 16-year bancassurance partnership to better meet the growing financial and insurance needs of Vietnamese people.
Manulife would also acquire insurance firm Aviva Vietnam since the latter formed a joint venture with VietinBank to distribute insurance products. Manulife’s life insurance market share is predicted to reach 18.5 per cent – nearly equal to Prudential’s share of 18.8 per cent.
“We’re in an exclusive bancassurance agreement with Techcombank, SCB, and VietinBank, three prestigious groups, and are putting in our best efforts to become the market leader in this regard,” said Hoe Shin Koh, chief partnership distribution officer at Manulife Vietnam. “Bancassurance is our strategic approach not just in Vietnam, but in the entire Asian market. For instance, in 2015, Manulife Asia paid $1.2 billion to Singapore’s DBS Group Holdings for a 15-year partnership, allowing us to sell products through this lender’s Asian branch network.”
Experts at SSI forecasted that the growth of the premium revenue for life and non-life insurance segments in 2021 would be 22 and 10-12 per cent on-year, respectively.
“However, the insurance industry will still face numerous roadblocks, including low-interest rates and increasing re-insurance costs. These factors will consequently reduce insurers’ profit because their investment portfolios are bank deposits and government bonds. Also, if the government bond yields drop, profits will be negatively impeded due to higher life-insurance reserves,” said SSI.
In 2020, in spite of the pandemic, the insurance market still maintained growth momentum with total property insurance of approximately VND552.4 trillion ($24.01 billion), up 21.5 per cent on-year, according to the statistics published by the Ministry of Finance (MoF).
Total equity capital was estimated at VND113.5 trillion ($4.9 billion) and total insurance premium was VND184.7 trillion ($8.03 billion), signifying increases by 27 and 15.2 per cent respectively. The claim cost was VND48.2 trillion ($2.09 trillion).
Data revealed by the MoF also showed that between 2016 and 2020, the total assets of the insurance market witnessed an average hike by 19 per cent on-year, with the figure for 2020 estimated at VND526 trillion ($22.87 billion).
The total money that insurance companies invested back to the economy saw an average increase by 19.4 per cent, with an estimated VND416 trillion ($18.09 billion) in 2020. The whole premium income boosts an average of 19.3 per cent and was estimated at VND226 trillion ($9.83 billion) last year.
The MoF continued to improve the draft decree on compulsory civil liability insurance for motor vehicle owners, replacing Decree No.103/2008/ND-CP dated 2008 and Decree No.214/2013/ND-CP from 2013. In addition, vehicle insurance is forecast to grow strongly, especially after Decree No.70/2020/ND-CP from last year introduced a registration fee cut of 50 per cent for cars.
KIS Securities believed the local government’s eagerness to accelerate development of the domestic car market will lay a vital foundation for vehicle insurance in particular.
Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR
VIETNAM BUSINESS NEWS FEBRUARY 9
Demand for top meat drives funding
Demand for top meat drives funding
In the midst of the rising demand for quality pork, Vietnam has witnessed growing investment in the clean meat market.
Last week, AVG Capital Partners, a private equity fund from Russia, signed an MoU with Thanh Hoa People’s Committee to develop a $1.4 billion pork processing complex in Nghi Son Economic Zone.
With an area of 1,000 hectares, the complex has a designed capacity to produce five million hogs a year. It will boast 43 commercial pig farms and three hybrid pig farms, a mixed feed factory with a capacity of two million tonnes a year, as well as a slaughterhouse and processing plant with a capacity of 600,000 tonnes a year.
Phong Quach, head of business development at Ipsos Strategy3 in Vietnam, said that as a general principle, any high-tech investment in agriculture is good for Vietnam. This is because the Vietnamese agricultural sector is still trying to attract more technology that can provide higher output for both the domestic and export markets.
The Ministry of Agriculture and Rural Development has identified in its objectives for 2030 that it wants to strive for high-value added agricultural outputs rather than volume.
Quach added, “When we take a closer look at different points in the value chain and investments, there are different dynamics in the competition depending on the node we review. The latest investment from AVG Capital Partners is a feed-farm-food (3F) investment encompassing the entire production chain. However, the output capacity of the processing facility is much higher than its supply, with 600,000 tonnes of processed meat against five million hogs a year.”
This would suggest that there is still significant opportunity for Vietnamese farms to supply this facility. If AVG Capital Partners is looking to source hogs from Vietnamese farms, this would be a vote of confidence for local farming while epidemics still wreak havoc in the global husbandry industry, Vietnam included, according to Quach.
Another player, CJ VinaAgri, a member of CJ Group in Vietnam, has officially launched its clean meat retail chain Meat Master in Ho Chi Minh City. The chain supplies quality meat produced under the 3F model. The move is part of CJ Group’s efforts to increase its presence in Vietnam and tap into the promising market.
C.P. Group from Thailand is meanwhile investing in its retail channel to deliver chilled and processed meat like Fresh Mart and C.P. Pork Shop. The revenue of C.P. Vietnam’s farm and food business has increased to $640 million in the recent two quarters, with earnings from the feed segment reaching around $200 million per quarter. C.P. has the largest farms in the country with an output of 16,000-17,000 pigs a day.
Dutch animal feed giant De Heus meanwhile has joined forces with local Hung Nhon Group to develop the DHN Dak Lak Agricultural High-Technology complex.
The project is expected to form a disease-free zone and provide high productivity pig and chicken breeds to the market. The $66-million venture will feed 2,500 grandparent and great-grandparent pigs, as well as 25,000 parent and gilt pigs to the market when it is launched.
Vu Manh Hung, general director of Hung Nhon Group said, “We will invest in a clean meat store chain with a closed process from breeding and processing to distributing products directly to consumers to reduce intermediate and transport costs.”
Key players share the approach to raising quality and standards to achieve success, reacting to a strengthening demand among Vietnamese consumers – especially the middle class – for clean and safe food. The Vietnamese meat market is huge and fresh, high-quality, and high-st,andard products make up only a fraction of the total market so the sector will continue to attract investment.
Quach pointed out that the major difference among players lies in their retail strategy. In Vietnam, based on Ipsos’ experiences, there are three dominant meat retail strategies, including one that leverages modern trade, one that focuses on wet markets, and one that works independent from the marketplace.
The first two strategies have a clear focus on customer base and emphasise convenience, which is critical for Vietnamese consumers. Locations are picked through researching consumer habits to create the shortest possible meat shopping journey within the total shopping journey.
“Meanwhie, the retail format of CJ Meat Master follows the third category. Its first shop in District 1 of Ho Chi Minh City is at a spot where there are no wet markets, convenience stores, or supermarkets nearby. This means that the retail format does not intend to leverage any available food and meal shopping traffic nearby and instead take advantage of other types of traffic and strategic purposes,” Quach added.
Ahead of the game, Masan MEATLife, a subsidiary of Masan Group, launched its certified branded chilled meat line MEATDeli in 2018 using European processing technology and standards. In particular, Masan has stepped up its game by acquiring Vingroup’s VinCommerce and VinEco arms, putting MEATDeli products on the shelves of VinMart.
Both the clean meat and processed meat markets are still very small in Vietnam but the growing middle class in Vietnam sets it up for tremendous opportunities.
“Therefore, it is critical for local and foreign players to understand the needs of Vietnamese consumers and provide a quality offering that takes into account local shopping culture and craft a long term journey for their shift to clean and safe meat production,” Quach concluded.
Dong Nai looks for investor for 300-hectare industrial park
Dong Nai province is looking for an investor to develop Cam My Industrial Park with the total investment capital of VND2.71 trillion ($117.83 million).
The industrial park (IP) is one of three IPs approved by the prime minister. The two others are the 300-hectare Gia Kiem and the 190ha Phuoc Binh IP. At present, the provincial Department of Planning and Investment is completing dossiers to call for investment in infrastructure development for the three projects. Cam My IP has yet to complete site clearance.
Once the three IPs come into operation, Dong Nai will have a total of 35 IPs in its master plan for the 2021-2030 period.
According to the plan, the province will have an addition of eight IPs in the period of 2021-2030, including four new projects with the total area of 4,300ha in Long Khanh, Trang Bom, Nhon Trach, among others and four expansion projects, including Dau Giay, Long Khanh, and Tan Phu.
According to a study by the province, enterprises shifting operations from China to Vietnam are boosting IP development and industrial real estate in Dong Nai.
The province also has numerous advantages for IP development while numerous large-scale infrastructure projects are under construction, including Long Thanh International Airport as well as the Dau Giay-Lien Khuong and Ben Luc-Long Thanh highways.
Dong Nai is one of the leading provinces attracting foreign direct investment (FDI) to Vietnam. Despite the COVID-19 outbreak, the province exceeded its investment attraction target of 2020 with more than $402.2 million.
Especially, FDI in the province’s IPs hit a five-year record in the first days of the year, according to the provincial Industrial Zones Management Authority. Notably, the province attracted FDI of more than $226 million in 11 projects in the first 10 days of the new year.
Three new projects accounted for $190 million with the other eight being existing projects that expanded investment by $36 million.
Animal feed exports increase in 2020
Vietnam acquired $800.7 million in export turnover from animal feed in 2020, up 16.98 per cent on-year, according to statistics published by the General Department of Vietnam Customs.
This sharp increase in December was fuelled by a high growth rate in three leading markets of China, Cambodia, and the US at 84, 66, and 69 per cent, respectively.
At present, the three largest export markets in terms of animal feed are China, Cambodia, and the US, which account for 10 per cent of the total export value of these goods.
Notably, Vietnam acquired $221.23 million from China (up 15.68 per cent), $122.32 million from Cambodia (up 23.15 per cent), and $114.5 million from the US (up 125 per cent).
According to the Ministry of Industry and Trade (MoIT), the country’s export turnover from these products to key markets increased in 2020. However, turnover in many small markets declined such as Japan with $26.2 million, down 27 per cent on-year; South Korea with $19 million, down 18.5 per cent; and Indonesia with $11 million, down 33 per cent.
The MoIT forecasted that with the existing productivity in collaboration with the large-scale expansion, animal feed will be one of the goods categories having export turnover over $1 billion.
However, the export value of animal feed only accounted for one-fifth of the import turnover of $3.9 billion in 2020.
Vietnam is now home to 265 animal feed production businesses, 180 of which are domestically run. Although domestic enterprises outperformed in terms of quantity, foreign firms still led the way in terms of capacity and market share.
Japan’s health names latch onto Vietnam
More Japanese pharma and healthcare companies are heading to Vietnam as drug demands in the local lucrative market are on the rise.
The second-largest pharmaceutical company in Japan, Daiichi Sankyo Co., Ltd., has entered a licence agreement with Mitsubishi Tanabe Pharma Corporation to register and launch edaravone brand Radicava in Vietnam. The medication treats patients with amyotrophic lateral sclerosis and helps with recovery from a stroke.
Yukinori Tominaga, general director of Daiichi Sankyo Vietnam Co., Ltd., told VIR, “We are going to provide more access to new medications in order to increase options for Vietnamese doctors to improve the quality of life in Vietnamese people.”
The agreement is one of several plans by Daiichi Sankyo for Vietnam in 2021. It aims to contribute to the enrichment of quality of life in the country through the innovative pharmaceuticals from Daiichi Sankyo and external resources, as the Mitsubishi Tanabe case, in order to address diverse medical needs.
Having established a representative office in Ho Chi Minh City in 2014 to provide support activities for the sale and promotion of its pharma products, last year Daiichi Sankyo strengthened its presence in Vietnam by announcing the establishment of its Vietnamese arm as a wholly-owned subsidiary to conduct sales activities. This is to better respond to the changing business environment of the pharmaceutical industry in Vietnam and to strengthen its business operations, focusing on new products.
The Tokyo-based company researches in the field of innovative drugs, with subsidiaries operating worldwide. In fiscal year 2019, Daiichi Sankyo generated a revenue of almost ¥982 billion ($9.46 billion), up from approximately ¥930 billion ($8.96 billion) in the previous fiscal year.
Tominaga admitted that during 2020 with the global health crisis, Daiichi Sankyo has suffered some negative impacts especially in primary care, but avoided significant impacts throughout the year.
Daiichi Sankyo is one of several Japanese companies in the health sector with more presence in Vietnam, which is deemed a safe place to do business and which has growing demands for innovative medicines and high-end services, in a move to diversify their supply chains.
According to a representative from the Japan External Trade Organization (JETRO), besides traditional investment sectors like manufacturing, Japanese investors are also grasping onto other sectors such as healthcare, clean energy, and customer services.
As demonstrated in the list of 30 Japanese companies planning to move from China to Vietnam, the Philippines, Malaysia, Thailand, and Laos announced last year by JETRO, half of those will shift to Vietnam, with the majority operating in the health sector. They include names like Inoue Iron Works, Able Yamauchi, Showa, Techno Global, Hashimoto Cross, and Matsuoka. They specialise in pharmaceutical manufacturing equipment, medical gloves, masks, and other medical clothing among others.
Matsuoka Corporation, which produces protective clothing for the health sector, plans to invest ¥3 billion ($28 million) in An Nam Matsuoka Garment Company, its Vietnamese manufacturing unit, to start production of protective wear and other items in the next few months.
Elsewhere, seeing growth potential in Vietnam, Taisho Group, one of the five largest pharmaceutical firms in Japan, increased its ownership in Hau Giang Pharmaceutical JSC, the biggest publicly-traded drugmaker in Vietnam, to 50.78 per cent in 2019 as a way to deepen its footprint there.
Similarly, Nipro Pharma Corporation – Japan’s biggest prescription drug contract manufacturer – is expanding its operations in Vietnam with a new project worth $300 million in Saigon Hi-Tech Park (SHTP) after investing $150 million in the first plant in the northern port city of Haiphong.
A source from SHTP told VIR that Nipro is completing procedures to enlarge its facility by increasing the investment capital by about $270 million.
Experts forecast that private domestic and foreign investment in the Vietnamese health sector will be on the rise as the state has plans to divest its stake in a number of powerful pharma firms, including leading pharma firms Vinapharm and Traphaco. The sector’s existing challenges, including hospital overloads and downgrades, also bring about chances for financiers to venture further into.
According to data researchers Fitch Solutions, the country’s total health expenditure was about $17 billion in 2019, or 6.6 per cent of the country’s GDP. The company also projects that the figure will reach $23 billion in 2022 with compound annual growth rate of 10.7 per cent.
Development drivers and expectations for Vietnam in 2021
Vietnam successfully managed to ride out the unprecedented challenges in 2020 and is gradually recovering with new development drivers and expectations in 2021.
The drivers of and expectations for the Vietnamese economy in 2021 are primarily built on the achievements in containing Covid-19, with Vietnam recognised as one of the most successful countries in the world, as well as economic resilience and a positive growth rate of 2.91% in 2020.
Entering 2021, Vietnam is quite confident with a US$340 billion economy, among the 40 largest economies in the world and the fourth largest economy in ASEAN; GDP per capita of US$3,521; a trade surplus of US$19.1 billion; and foreign reserves of more than US$90 billion.
The growth drivers in 2021 will be strengthened and supplemented by institutional breakthroughs and an improved business environment, making Vietnam one of the best investment destinations in the world. The business community continues to record growth in both quantity and quality, with many companies working towards breakthroughs in industrial production and technology and deeper participation in regional and global value chains. Growth in 2021 is also expected to be driven by successes in economic restructuring, especially in agriculture and tourism.
The drivers for 2021 will also come from the country’s sustainable development achievements. With a human development index (HDI) of 0.704, Vietnam has been included in the group of countries with high HDI for the first time, ranking at number 117 among 189 countries and territories. Vietnam’s human capital index is also higher than the average of countries with the same income level. Vietnam is one of the first countries to fulfil the UN’s goal on sustainable multidimensional poverty reduction.
Other drivers for 2021 include a strong digital push in the business community, major improvements in telecommunications infrastructure and the building of electronic government and smart cities.
The expectations of comprehensive and profound breakthroughs on the path of reform and modernisation in Vietnam are also being elevated by the high consensus in personnel work and the quality of documents at the 13th National Party Congress, the people’s confidence in the Party, and the dynamism, innovation and responsibilities of a new crop of officials elected at the 13th Party Congress.
Vietnam is now in possession of an economy, strength and international prestige like never before, as recognised by both people at home and the international community. Such accomplishments are an affirmation of the quality of institutions and the effectiveness of policy response and market response of the Party, State and entire business community and people of Vietnam.
With new confidence and good spirit following the success of the 13th Party Congress, we are fully confident that Vietnam will continue to emerge as bright spot in terms of socio-economic development in a more sustainable and effective manner in 2021.
IPC has new general director
Lam Hoai Anh, deputy general director of HCMC Finance and Investment Company (HFIC), has been appointed as new general director of HCMC-based Tan Thuan Industrial Promotion Co., Ltd (IPC).
On February 5, HCMC Vice Chairman Le Hoa Binh handed over the municipal government’s decision on the appointment to Anh, the local media reported.
Anh, born in 1972 in the Mekong Delta province of Long An, will hold the post for five years.
HCMC Vice Chairman Binh said Anh is an active and enthusiastic official. He had worked in the finance sector, which will help him do the new job well.
Despite difficulties in the initial stage, Binh expected Anh would coordinate with the board of directors and the member council of IPC to develop the company.
Anh’s predecessor is Pham Phu Quoc, a National Assembly deputy of HCMC, who had resigned after he was found holding Cypriot citizenship.
Covid-19 dashes aviation, tourism sectors’ hopes to earn profits during Tet
Many enterprises in the aviation and tourism sectors as well as hotels had expected to earn profits during the upcoming Lunar New Year or Tet holiday to make up for their losses last year, but their hopes have been destroyed due to the new Covid-19 wave.
Flights have been suspended as many air passengers returned their tickets, while tours during the holiday have been canceled. In addition, many stores and restaurants in many localities have been temporarily closed.
Vietravel has suspended all of its tours to the northern region and is working out response plans in case the pandemic takes a turn for the worse. Vietravel Airlines, which has been put into operation for over a month, has also faced multiple difficulties.
Vietravel Holdings Chairman Nguyen Quoc Ky said travel companies had invested heavily in their products and services for Tet but the pandemic has upset their plans. If the situation gets more complicated, even those that survived the previous two pandemic waves will find it hard to overcome this one.
As a result, laborers will be put at a disadvantage. Only half of Vietravel’s employees have returned to work.
Not only travel firms, lodging facilities have also faced the same fate. According to Savills Hotels, the new Covid-19 wave has hindered the recovery of hotels.
Savills Hotels director Mauro Gasparotti said the pandemic has hit not only localities with Covid-19 outbreaks but also others.
Some conferences have been suspended, directly affecting the Meeting, Incentive, Convention and Exhibition tourism segment.
He forecast the situation this year might be similar to that of last year if the international tourism segment is not resumed.
As for the aviation sector, the number of air passengers has declined 15% over the period that new Covid-19 cases had not been confirmed.
In addition, the demand for flights to Danang and HCMC plunged 35% and 34%, respectively, according to OTA Insight.
As a result, Vietnam Airlines’ losses of more than VND11 trillion may need more time to be recouped. Moreover, it will be difficult to introduce a credit package worth VND14 trillion for the national flag carrier.
Meanwhile, Vietjet Air has significantly cut expenditures.
According to SSI Securities Corporation’s recent report on the outlook of the aviation sector this year, the market will remain gloomy as the United Kingdom’s coronavirus variant has been found in many countries. The aviation sector will not recover until the end of 2021, when Covid-19 vaccines are approved.
Development of Tan Phu-Bao Loc expy project approved
Prime Minister Nguyen Xuan Phuc has agreed in principle that the Lam Dong Province government will be in charge of developing the Tan Phu-Bao Loc expressway project, which connects Lam Dong with the neighboring province of Dong Nai, during the 2021-2025 period under the public-private partnership format.
The Central Highlands province of Lam Dong was asked to mobilize capital to ensure that an appropriate amount of the province’s budget is invested in the project, reported Thanh Nien Online.
The ministries of Transport, Planning and Investment, Finance and the relevant agencies have to create optimal conditions and facilitate investment procedures for the project, PM Phuc said.
The Transport Ministry was told to work with Lam Dong’s government to comprehensively assess the impact of the construction of the project along with other build-operate-transfer projects to avoid possible disputes and ensure investment effectiveness. The ministry has to coordinate with other agencies to study the construction of the Dau Giay-Tan Phu and Bao Loc-Lien Khuong expressways.
PM Phuc asked the three ministries to give their feedback on the allocation of the State budget during the 2021-2025 period for the road project as proposed earlier by Lam Dong.
The provincial government of Lam Dong has to quickly conduct the project’s pre-feasibility study and report to the higher authorities by March for consideration and approval, select qualified investors and funding organizations for the project and execute the project in a lawful, transparent and efficient manner.
Earlier, in January last year, Lam Dong sought an approval from the Government leader to develop the 67-kilometer Tan Phu-Bao Loc expressway project with four lanes, as a component of the 200-kilometer-long Dau Giay-Lien Khuong expressway project, which is set to link the Central Highlands provinces and the southeastern provinces.
The Tan Phu-Bao Loc expressway will require some VND18.2 trillion in investment, with some VND9.7 trillion backed by the investor and an equal amount funded by the State budget.
Ministry plans to develop Can Tho-Ca Mau expy in 2021-2025
The Ministry of Transport plans to add the Can Tho-Ca Mau expressway project to the list of public investment projects in the 2021-2025 period instead of after 2030 as approved earlier by the prime minister.
The ministry announced the decision in a document sent to the Party Committee of Soc Trang Province and the provincial delegation of National Assembly deputies on their proposal to complete an expressway from HCMC to Can Tho and develop the Can Tho-Ca Mau expressway project parallel to the Quan Lo-Phung Hiep route to ensure that economic centers are connected in the localities that the expressway will pass through, the local media reported.
According to the Ministry of Transport, the Trung Luong-My Thuan section of the HCMC-Can Tho Expressway has been opened to traffic, while work on the My Thuan-Can Tho section started early this year and was expected to be completed in 2022 and that on the My Thuan 2 bridge project in 2023.
The Ministry of Transport is drawing up a plan to develop the road system in the 2021-2030 period with a vision to 2050, proposing adjusting the roadmap to invest in the Can Tho-Ca Mau expressway and some other projects.
The ministry has assigned the Cuu Long Corporation for Investment Development and Project Management of Infrastructure to prepare the prefeasibility reports for these projects.
After the National Assembly and the Government handed over the mid-term public investment capital in the 2021-2025 period, the ministry will coordinate with the relevant ministries, agencies and localities to review and choose important and urgent projects for the Government and the National Assembly to develop first.
As for the Can Tho-Ca Mau expressway project, besides three plans proposed by the consulting firm, the ministry has asked Cuu Long Corporation to direct the consulting firm to study a new direction of the expressway that is parallel to National Highway 1 and five to seven kilometers from Soc Trang City of the province of the same name and Bac Lieu Province.
The direction will ensure the connection of cities in the region and ease traffic on National Highway 1, especially at the gateways of large cities.
Smuggling activity recorded most on aviation route
According to the General Department of Vietnam Customs, the situation of smuggling and cross-border trafficking of goods in January tends to decrease compared to the same period in 2020, but the nature of smuggling cases is still complicated, more sophisticated and the number of seized goods increased.
As from December 16, 2020 to January 15, 2021, the customs forces discovered 803 cases and seized violated goods with total amount of more than VND518 billion (over US$22 million), performed state budget collection of VND12.5 billion (US$540,000), prosecuted two cases and transferred five cases to other agencies to prosecute.
The smuggling activity took place the most on aviation route.
The number of arrests has increased sharply; the violated goods are high value, tiny, easy to hide such as drugs, weapons, gold, rhino horn, ivory, pangolin scales, cell-phones, alcohol, tobacco, etc.
Investors need to protect themselves against market volatility
Vietnam’s stock market this week has recovered again with gaining trading sessions and impressive trading volume. The shock caused by the historic slump on January 28 when the VN Index volatilized 6.67 percent, along with the state of no buyers, seems to have been left behind. However, the lesson from that historic stock market crash will never be old when being placed in the context that hundreds of thousands of new investors have entered the stock market lately.
After the losing trading session on January 28, the most exciting topic on securities forums at that time was ‘What makes the stock market so volatile?’. Investors cited all the reasons, even conspiracy theories, such as market manipulation by the “strong hands” and cornering the market combined with shutting down the trading system. Not so many investors dare to accept the truth that they were the reason for those fluctuations.
When stocks climb up wildly, no one mentions their extraordinary excitement but immerses in the increasing profits day by day, feeling the joy of gaining a few more percentage points of profit every day. When the market flips over, the crowd unexpectedly becomes concerned about the management responsibilities of the regulator for such a sudden plummet in the market. They seem to think that the regulator must make the market go up.
From a psychological perspective, trying to find external reasons to explain an adverse outcome or a mistake of oneself is actually an avoidance of responsibility or a state of trying to soothe the pain. This kind of sentiment is quite common in the stock market. Therefore, books on securities investment and trading all emphasize the principle of eliminating emotions from decisions.
This principle has only a few short lines, but it is summarized in hundreds of years of securities trading of investors. Many new investors in the stock market only want to see drawings describing investment strategies and tips on making stock investments profitable, easy to understand and practice immediately. However, they are reluctant to absorb the experiences written in multi-page books.
They know the support, resistance, and technical buy point of stocks. However, they do not understand the risk-return tradeoff principle in each transaction, the win/loss ratio, and the principles of capital management, trading, portfolio building, and risk management.
F0 investors – newcomers to the market – before every decision to buy or sell, usually pay attention to profit first. Meanwhile, experienced investors often concern about the maximum risk they will encounter and whether it is worth the expected return or not. For instance, when an investor decides to buy stock A at VND25,000 per share, if he thinks that the price will go up to VND30,000 in the next week, giving him a profit of 20 percent, then he is an F0 investor.
On the contrary, if he thinks that the price of stock A does not increase as expected but decreases, so he will cut loss at VND24,000, then he is an Fn investor. When putting risks before profits, investors are responsible for their capital and have determined that securities investment is a long-term career instead of an opportunity to make money quickly.
The fierce turbulences, like the market volatility last week, have occurred many times in the past 10 years and contributed to eliminating several generations of amateur investors. What goes up must come down: that is the rule. Market trends also have many different levels.
A long-term uptrend based on macroeconomic growth or micro-growth of enterprises still mixes with short-term downtrends when supply and demand dominate in a period. The current market is a short-term downtrend in a long-term uptrend. Therefore, long-term investors do not need to panic, even though the downward volatility can reach dozens of percentage in just a few days. It is an opportunity to restructure the portfolio, take partial profits on the portfolio, and buy back stocks at lower prices, or even buy more stocks.
In contrast, short-term speculators have to focus on protecting cash assets. For not knowing whether we are making long-term investments or speculating, it will lead us to emotional transactions going along with the majority and being dominated by unusual movements in the market. Worse, we will trade stocks erratically, making consecutive mistakes and being kicked out of the game.
Supply of affordable housing still fails to meet demand
The supply of affordable housing in general and social housing, in particular, in big cities like Hanoi and Ho Chi Minh in the past years, has always failed to meet the needs of the people. Especially, in HCMC, although the city government has had many programs and plans to develop social housing, the number of projects that have been completed and put into use remains small.
Some large-scale social housing projects that have been put into use in recent years include the HQC Plaza project in Nguyen Van Linh Street in Binh Chanh District, invested by Hoang Quan Real Estate Joint Stock Company, with a scale of 1,750 units, inaugurated at the end of 2019 and the HOF-HQC Ho Hoc Lam project, invested by the HCMC Housing Development Fund (HOF) in association with Hoang Quan Real Estate JSC. The project has a total investment of more than VND608 billion, with a scale of 718 apartments. It is the first public-private partnership project implemented to solve the needs of social housing in HCMC.
Earlier, the apartment project of the Ministry of Public Security in No.3 Street in Binh An Ward in Thu Duc City, invested by Phu Cuong Investment Joint Stock Company, was also put into use in 2016. The 20-story apartment building with functional areas, including residential apartments, parking areas, a kindergarten, and a technical infrastructure system, covers more than 20,020 square meters. It has 956 apartments and a floor area of 128,425.51 square meters. However, according to authorities, the number of social housing projects is much less than the demand.
According to real estate experts, although accounting for 70-80 percent of the demand for housing in big cities like HCMC, the supply of affordable housing is extremely scarce or even unavailable in the market. From 2019, the chances for young people to buy houses were lower and lower because the kind of apartments priced at VND1.1 billion-VND1.5 billion per unit was almost no longer available in the market. Specifically, from the past 3 to 5 years, the price of Grade C and Grade B apartments from VND16 million to VND21 million per square meter has now reached VND25 million-VND36 million per square meter. Thus, people with a need for affordable housing can only rely on social housing projects.
“We really need an apartment to settle down, but with limited financial resources, we can only look forward to social housing projects to enjoy the policy of this program. However, for many years, our dream has not come true yet because the number of these projects is too low. I have searched for them, but they are unavailable,” shared Mr. Binh, a person looking to buy an affordable house.
According to the HCMC Housing Development Program for the 2016-2025 period approved by the municipal People’s Committee in Decision No.5086/QD-UBND on November 14, 2018, in the 2016-2020 period, the city would strive to complete about 1.78 million square meters of housing floor area. In fact, only 1.28 million square meters of floor area were completed, equivalent to 15,177 apartments.
In the 2021-2025 period, HCMC plans to develop about 2.27 million square meters of social housing floor area, equivalent to about 25,000 apartments, to meet a part of the demand. According to Mr. Huynh Thanh Khiet, Deputy Director of the HCMC Department of Construction, the department will continue to monitor and urge the implementation of 19 social housing projects, with a scale of 26,983 apartments, to meet the set target. The department will also update and review commercial housing projects with a scale of 10 hectares that have identified a 20-percent land fund to implement social housing and urge the implementation to ensure the achievement of the target of building social housing in these projects.
The Department of Construction has updated 65 commercial housing development projects, which have a land-use scale of 10 hectares upwards and have to spend 20 percent of residential land on building social housing, with a total area of about 197.3 hectares, equivalent to about 146,550 apartments. According to Mr. Khiet, the department plans to develop and manage social housing in the city in the 2021-2025 period to submit to the municipal People’s Committee for promulgation.
However, how to mobilize social resources and various economic sectors to participate in this housing segment is not an easy problem. Although there are many incentives for enterprises to develop affordable housing and social housing, they remain apathetic. Mr. Nguyen Van Duc, Deputy Director of Dat Lanh Real Estate Company, one of the pioneering enterprises in building affordable houses in HCMC, analyzed that enterprises were not interested in affordable housing because the return was low, at only VND1 million-VND2 million per square meter. If there are financial problems, they will go bankrupt or suffer losses. In terms of legal procedures for low-income housing or high-end apartment projects, they are the same complicated as each other.
Mr. Ngo Quang Phuc, CEO of Phu Dong Group, said that the core solution to increase the supply of affordable housing is to create equal competition in the market and transparency in investment procedures for affordable housing. Especially, it should put an end to the “ask-give” situation to attract large enterprises with great potentials. According to Mr. Le Hoang Chau, Chairman of the HCMC Real Estate Association (HoREA), one of the reasons why the supply of affordable housing is scarce in the market is that the approval process for building construction is usually time-consuming.
On the other hand, the State Bank of Vietnam is currently implementing a schedule to gradually restrict credit to the real estate market, causing enterprises to face difficulties in seeking alternative capital sources.
“To increase the supply of housing, the State needs to continue to launch financial support packages to develop social and affordable housing, creating favorable conditions for investors, as well as buyers. At the same time, localities, including HCMC, should put forward solutions to consolidate and speed up the approval process of projects to stabilize the real estate market and prevent projects from being delayed, affecting the approval of new projects,” Mr. Chau suggested.
Hanoi starts conducting national 2021 economic census
The data collection period is set to take place from March 1 to July 30, 2021 on various economic component groups.
Result from the national 2021 economic census would serve as the foundation for the calculation of the country’s GDP and GRDP data.
“The main objective of the economic census is to collect data from different economic components and assess their development in terms of quantity, scale and number of employees,” stated the Head of Hanoi’s Statistics Office Dau Ngoc Hung at the meeting marking the launch of the national 2021 economic census in Hanoi on February 5.
According to Mr. Hung, the economic census will also evaluate the efficiency in Vietnam’s process of economic restructuring and revising growth model.
“Throughout the process, the government will have a better understanding on the application of IT and modern technologies under the Industry 4.0 in the business community,” noted Mr. Hung, saying this is an opportunity for enterprises to inform the authorities of their difficulties in accessing financial resources or integrating into the global economy.
The target in this national 2021 economic census include manufacturing facilities, businesses, public-non business units, associations, non-governmental agencies in Vietnam, and religious groups.
The National Statistics Office will collect information via 22 questionnaires in online platforms or direct interview.
The data collection period is set to take place from March 1 to July 30, 2021 on various economic component groups.
Vice Chairman of the Hanoi People’s Committee Ha Minh Hai, who also heads the Steering Committee on 2021 economic census in Hanoi, said statistics data holds great significance to support the city’s leaders in the process of management.
Mr. Hai requested the municipal Statistics Office to enhance the quality of analysis and economic forecast to better meet the demand for information in the current environment.
The municipal Statistics Office is set to announce the result of the economic census in December 2021, and the official result in the first quarter of 2022.
Vietnamese shoppers seek premium goods for Tet
In-home consumption will drive Vietnam’s fast-moving consumer goods sales in this Lunar New Year.
The Covid-19 pandemic’s impact on employment will lead to Vietnamese consumers optimizing spends and looking for better bargains, according to Mr. Richard Thomas, Director of Intelligent Analytics at NielsenIQ Vietnam.
Lunar New Year, the biggest festive event in Vietnam, is a banner event in Vietnam’s fast-moving consumer goods (FMCG) calendar. Normally, its sales are 12%-15% higher than non-festive periods and close to 20% of total FMCG sales of the whole year.
Given that the country’s economy is dependent on exports and tourism, the adverse impact on the key sectors have resulted in job losses and a rise in constrained consumers in the country.
Despite toned-down celebrations, Tet will still boost FMCG sales, Ms. Didem Sekerel Erdogan, Senior Vice President, Intelligent Analytics, APAC & EEMEA at NielsenIQ, predicted. “Local manufacturers and retailers have a unique opportunity to help consumers continue their beloved festive traditions during the pandemic by anticipating and adapting to changing consumer needs,” she said.
Vietnam’s retailers and manufacturers, when planning their promotional strategies for the Lunar New Year, should focus on offering free gifts and direct discounts as the most sought-after promotions in Vietnam, according to NielsenIQ.
According to NielsenIQ, local retailers and manufacturers invest heavily on promotions and price reductions during banner festive events such as Lunar New Year. These promotions, which are among the most effective ways to drive sales, can sometimes result in “promotional wastage” – where brands lose money because of ineffective promotions.
“There is no one-size-fits-all approach when it comes to promotions, as consumers respond differently to deals across different categories,” Ms. Erdogan said and suggested that, in order to capitalize on festive sales, brands and retailers must rethink their promotional strategies and ensure they are promoting the right products using the right mechanics and at the right price to better meet the needs of Lunar New Year shoppers.
In addition, local manufacturers and retailers should also offer special promotions on premium gifting categories such as abalone, chicken essence, bird’s nest and liquor as insulated spenders may have additional budgets to spend due to scaled down parties, open houses and celebrations.
Ms. Erodgan believes that these time-tested Lunar New Year traditions will continue during the pandemic, but they will take different forms and be smaller in scale. “We expect a rise in home-cooking, for example, as families avoid crowded restaurants for the reunion dinner,” she explained. “Smaller-sized social gatherings may also impact the sale of alcoholic beverages – with consumers choosing quality over quantity, thereby favoring premium brands.”
Spending habits will differ between constrained consumers (consumers who have been financially impacted by the pandemic) and insulated consumers (those who have been shielded from financial impact), according to NielsenIQ.
Constrained consumers will gravitate towards economic pack sizes, attractive promotions and deals, while insulated consumers may choose to indulge even more in anticipation of a more positive Year of the Buffalo, thus seeking more premium items.
Covid-19 boosts online shopping for Tet
E-commerce floors have pre-stocked goods and integrated new technology for online shopping activities.
Covid-19 has beefed up online shopping for the Tet holiday as it is the time when Vietnamese consumers spend the most throughout year.
Ms. Thu Hang, an accountant from Techcombank in Hanoi, is busier than usual with financial settlements at the end of the year, and online shopping on e-commerce sites is a salvage solution for her to prepare for Tet, especially in the context of the outbreak of Covid-19.
This year, Tet items such as kitchen guard meat, dried bamboo shoots, mushrooms, sausages, and clean food are more available on e-market than the previous year at the convenience of local consumers like Ms. Thu Hang. Many retailers have offered more promotions and diverse products with reasonable prices.
In order to meet the demand of online shopping during the Lunar New Year, e-commerce floors have pre-stocked goods and integrated new technology for online shopping activities.
Compared to the previous Tet holiday, Tiki, a Vietnamese online marketplace, increased at least its goods supply by 30%, focusing on packaged food, beverages, nutritional products, milk, spices.
“We expect sales in this year’s Lunar New Year at Tiki will grow up to 70% over the same period last year”, a representative from Tiki said.
Shopee, owned by Singapore-based tech group Sea, has worked with its vendors, brands and shipping partners to launch a new program for Tet delivery during the Lunar New Year.
Brick-and-mortar retailers such as Saigon Co.op, Big C and Megamarket have turned to their websites and apps to stimulate consumption . Co.opmart supermarkets saw an increase of 30-40% in online orders in recent days. Sales of Tet gift baskets through e-retailing have increased by 200% compared to the same period last year.
Hanoi Trade Corporation (Hapro) in cooperation with BRG Retail has promoted online shopping channel through its BRG Shopping app and Facebook fanpage, according to Deputy General Director of Hapro Do Tue Tam.
According to a representative of BigC/GO!, the supermarket chain also receives orders via Zalo and offer free delivery during this Tet season, in addition to receiving orders by phone and website as usual.
“Covid-19 has created an opportunity for businesses to boost the process of digital transformation, including online sales. We believe that this year’s Lunar New Year will see a boom in online shopping,” Mr. Nguyen Anh Duc, General Director of Saigon Co.op, said.
Nearly 50% of Japanese firms gain profit in Vietnam in 2020
Almost half of Japanese firms in Vietnam said they would expand investment in the country in the next one or two years.
In a difficult year of Covid-19, 49.6% of Japanese companies operating in Vietnam remained profitable and 20.3% at the break-even point.
Chief Representative of the Japan External Trade Organization (JETRO) in Hanoi Takeo Nakajima revealed the information at a meeting with Vice Minister of Planning and Investment Tran Duy Dong on February 4.
“Nearly half or 46.8% of Japanese firms in Vietnam said they would expand investment in the country in the next one or two years,” added Mr. Nakajima as he referred to the data from the JETRO survey on the performance of Japanese enterprises in 20 countries and territories, which was conducted from August 24 to September 25, 2020.
“The rate was lower compared to previous years, but remained fourth among countries/territories in the Asia-Pacific,” he said.
According to Mr. Nakajima, in 2020, companies in the survey expressed more concern over risks in the investment environment of the host country, including the legal framework, tax policies and administrative procedures.
“There are firms that want to utilize the local supply chains to support their operations, but Vietnam’s supporting industries have not been able to meet their demands,” said Mr. Nakajima, adding more firms are looking to partner with Vietnamese startups.
Vice Minister of Planning and Investment Tran Duy Dong expressed his impression of JETRO’s survey that has provided a comprehensive picture over Japanese business and investment activities in Vietnam.
“While the Covid-19 pandemic has caused negative impacts on Japanese firms in Vietnam, the survey showed most are optimistic for 2021,” said Mr. Dong.
“This requires stronger efforts from local authorities in keeping the pandemic under control and addressing concern of the business community,” Mr. Dong added.
In 2020, Vietnam became the top choice for Japanese firms that participating in a government program to move production facilities out of China, with 37 out of the total 81 having chosen Vietnam as their destination. Thailand came in second place with 19 companies.
The majority of Japanese firms looking to move to Vietnam are in the fields of medical equipment, in addition to those producing semiconductors, phones and parts, and air conditioners, among others.
Vietnam, Japan banks provide joint financial services
The Saigon Commercial Joint Stock Bank (SCB) has recently entered into a strategic cooperation deal with Kiraboshi Business Consulting Vietnam, the representative of Kiraboshi Bank of Japan.
Under the deal, SCB will work closely with the Japanese partner to take care of individual clients of the partner living, working and traveling in Vietnam. The two sides will provide financial solutions for corporate Japanese businesses operating in Vietnam, the Voice of Vietnam (VOV) reported.
According to the two banks, such comprehensive cooperation will enable the two banks to develop into a major financial cooperation alliance in the future that is to support businesses and investors of the two countries.
They will also expand cooperation to serve clients of other countries alongside Vietnamese and Japanese ones.
SCB Acting General Director Jeremy Chen explained said that more and more Japanese organisations and businesses are interested in investing in the Vietnamese market, and this is why SCB has teamed up with the Japanese partner to provide financial support and advice for clients./.
Hai Phong grants investment approval to LG Display’s project
Chairman of the People’s Committee of northern Hai Phong city Nguyen Van Tung on February 7 granted a certificate to LG Display Vietnam Hai Phong’s project adding 750 million USD in investments.
The additional amount brought the investment capital of the entire project to 3.25 billion USD in total, making it the foreign-invested project with the highest value in the port city.
It is set to begin in next month and become operational two months later, creating an additional 5,000 jobs and contributing about 5 million USD annually to the State budget.
LG Display Vietnam Hai Phong’s project was first approved in April 2016 with an investment of 2.5 billion USD, specialising in the production of LG Corporation’s OLED and LCD screens, among others.
In 2020, it posted 5.98 billion USD in sales revenues, a year-on-year surge of 624 percent.
As of early February, Hai Phong had attracted 823 million USD in foreign investment, rising six-fold against the amount recorded in the first two months last year. The figure is projected to hit 910 million USD by the end of this month./.
Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR
Real estate appeal remains amid tumult

Viet Nam has more real estate investment opportunities than other more mature Asia-Pacific markets, though certain difficulties remain.
Real estate investors from Asia-Pacific countries with limited potential for real estate growth, such as Japan and South Korea, see extensive opportunities in Viet Nam, according to Matthew Powell, director of Savills Ha Noi.
Increasing numbers of Japanese and South Korean investors are looking to the local market, assessing land options at the right price.
Viet Nam’s overall potential is an advantage, but every investment depends on location and the particular industry. Most investors have their eyes on the two big cities of Ha Noi and HCM City, while others are expanding their horizons to localities such as Hai Phong.
The main barrier is finding land at a reasonable price, which adds difficulty to foreign investors competing with local investors and developers. Overseas investors should also be aware of the potential difficulties in purchasing land, Powell said.
Some domestic developers focus mainly on residential real estate, while specialist investors have nimbly pivoted to the burgeoning industrial and logistics sector from apartment or resort development. The cost of logistics in Viet Nam remain high compared to elsewhere in Asia-Pacific.
Logistics are, however, gradually becoming more competitive due to new and improved infrastructure, including the construction of new airports in the south, new highways, and new ports. Such improvements are partly being driven by higher domestic consumer demand resulting from rising e-commerce and store visits. Increasing requirements for support infrastructure, cold storage, warehousing, and logistics will put these among the key investment areas in 2021.
According to JLL Viet Nam, many Vietnamese developers are raising capital for large-scale development portfolios, which are attractive to investors because of the cash flow, high returns, and growth potential of an emerging real estate market like Viet Nam.
“Although these transactions are still under negotiation and legal review, this is still considered a positive factor for Viet Nam’s real estate market, because of foreign investors’ confidence in market recovery and improvements in purchasing power over the coming quarters,” Nguyen Thi Van Khanh, senior director, Capital Market Vietnam, at JLL, told Viet Nam News .
Real estate businesses are continuing with the traditional channel of the capital market through merger and acquisition (M&A) activities despite slowdowns compared to the 2017-2018 period, Khanh said.
After the government conducted legal investigations into real estate matters such as land origin, a lack of transparency in the process of land allocation, and non-compliance with State regulations, investors felt more secure about the market.
Hence, investors could find more notable investment opportunities, such as participating in auctions directly with the Government or buying assets through the Viet Nam Asset Management Company (VAMC) or a commercial bank with collateral that is in their bad debt portfolio.
“These investment channels are not unfamiliar to investors, but due to a lack of information and legal transparency in previous years, very few assets have been successfully acquired,” she said.
“With the liquidity problems that arise from the suspension of and/or investigation into projects, real estate developers are more actively approaching these aforementioned methods.”
The pandemic has certainly had an impact on real estate businesses so there will be a number of domestic real estate firms facing liquidity problems. Foreign investors will also be more cautious with their investments. M&As are not the only way to grow a business, as there are other alternatives to accessing larger sources of capital, according to Khanh.
There are still many challenges, but if transparency was to be further improved, there was greater disclosure of asset portfolios, higher investment returns, stronger bank support, and more flexibility from investors, JLL believes there would be more transactions through this channel in the near future.
“The demand to acquire operating assets is still high for core investors whose strategy is to hold the asset long-term and who are familiar with the market and deal structuring in Viet Nam,” Khanh said.
“Value-added investors are still actively looking for distressed opportunities to generate heightened yields.”
Nguyen Hoai An, director of the Ha Noi Branch of CBRE Vietnam, told Viet Nam News that “there are many foreign investors interested in the market but their investment is limited due to the pandemic. Investment by foreign investors therefore depends almost entirely on the pandemic and vaccination programmes in 2021 and 2022. If the pandemic is under control around the world, we hope the market will see an even better recovery.”
Meanwhile, according to Savills, for individual investors, real estate remains a popular investment channel due to its mid-term capital growth potential. Ha Noi and HCM City remain the preference among individual investors, though opportunities are emerging in secondary cities such as Hai Phong. There are also longer-term investment opportunities in the branded residence model — apartments or villas developed and operated by better known hospitality brands, including international hotels.
2021 market
The prospects for Viet Nam’s property market in 2021 are believed to be better than in 2020 because of a range of factors, including Viet Nam’s control of the pandemic, which is highly regarded around the world. That is also the factor behind stability in the office market this year, according to Do Thu Hang, director of Advisory Services at Savills Hanoi.
Public investment and new or amended regulations relating to the real estate market will support all property segments, including housing, which will continue to dominate because Viet Nam is forecast to have a strong economic outlook together with sound infrastructure and high demand for housing.
Villas and townhouses will also be a brighter picture this year, with the launch of 4,900 units. Supply of such products has been limited since 2019.
Opportunities are present in the resort market as it is developing large, complex projects with casinos, theme parks, and additional attractions. Though there will be operational difficulties during development, some projects have already been planned and implemented. The market will still welcome independent and traditional resorts, however, according to Savills Viet Nam.
For the retail market, despite facing difficulties over the last year, many developers are still planning and aim for higher quality, design, and management. The market is shifting to more experiential-based models, such as entertainment, education and sports.
“The market is responding fast, even if a high level of COVID-19 uncertainty persists in 2021,” said Su Ngoc Khuong, senior manager, Savills Viet Nam.
“Landlords can resolve the temporary challenges relating to finance for one or two years, so issues on deploying projects, buildings, and malls with cash flow, such as procedures, will be addressed, while positive expectations remain in 2022 and 2023.
“For investors, major profits from properties such as five-star hotels, shopping centres, and Grade A office blocks in the city centre with steady revenue is possible, though at a lower profit margin than before, of 6-7 per cent per year. Viet Nam is still an attractive market for foreign investors.”
However, “the market will need time to recover and of course will depend on many factors, such as economic growth, pandemic control, and macroeconomic policies on infrastructure development,” Nguyen Quoc Anh, chief business officer (CBO) at property market website batdongsan.com.vn, told Viet Nam News.
“It is difficult to evaluate which segment of real estate is a bright spot, because a real estate product depends on many factors, such as location, selling price, investor reputation, and profitability potential. But the domestic market still lacks affordable and mid-end housing products.”
According to data from batdongsan.com.vn, though the pandemic affected the property market last year, the level of interest in affordable and mid-end housing products increased 10 per cent and 11 per cent year-on-year, respectively. Prices increased slightly, by 1-4 per cent, Anh said.
Industrial real estate is the hottest segment in Viet Nam nowadays, as the country is establishing itself as an industrial hub in Southeast Asia. With the EU-Viet Nam Free Trade Agreement taking effect from last August and buoyed by stable fundamentals, Viet Nam has received strong interest from both investors and manufacturers for industrial properties, said Khanh from JLL.
Besides that, JLL pointed to trends in property market development this year, including “city in the city”, work from home, e-commerce driving the logistics sector, the sustainable development of property corporates, and the development of health and life science real estate.
“City in the city” is a residential concept that refers to large-scale integrated developments. This urban form has grown in popularity recently as developers seek to attract buyers with holistic, well-planned communities within a city for those who wish to avoid the chaos created by rapid urbanisation and lagging infrastructure in shared facilities. Large-scale developments offer a diverse range of housing types to various groups of buyers.
Meanwhile, a year of mass lockdowns that forced people to work from home showed that many jobs can indeed be done remotely, spurring companies to adopt new, hybrid working models. The shift was already underway at many businesses, but like so many things, it accelerated due to the COVID-19 pandemic.
“A work from home experiment took place globally in 2020 and showed that by leveraging technology, businesses can continue to operate effectively,” said Paul Fisher, Country Head at JLL Vietnam.
“But for many, the lack of face-to-face interaction put pressure on teams, and while a number of our clients expect to adopt flexible working practices in the future, for the majority this will include the office remaining the central point for business activities.”
E-commerce accelerated massively last year as shoppers stuck at home flocked online. A recent JLL report pointed out that e-commerce is a positive tailwind for consumption-driven demand for logistics real estate. Viet Nam is currently one of the fastest-growing e-commerce markets in Southeast Asia.
Surges in online grocery orders among other essentials have pushed businesses to look for more cold storage space with proximity to customers.
Compared to traditional logistics operations, e-commerce is more labour-intensive and requires three-times more warehouse space. That’s part of the reason behind increased investor demand for industrial real estate around the world.
One more important trend in the property market this year is that corporates are striving for sustainability. In real estate, assets with high ESG (environmental, social and corporate governance) ratings can achieve a 33 per cent rental premium over comparable non-green-certified buildings.
In addition, investors are setting their eyes on health and life science real estate. Both domestic and international investors have long been interested in this sector, and are in need of more cold storage locations closer to customers to serve the growing demand for heat-sensitive products such as cosmetics, food, and pharmaceuticals. Special healthcare products like COVID-19 vaccines and other vaccines might become a special driving force behind cold supply chain and life science real estate in the future. — VNS