Top 10 business news

The Ho Chi Minh City tourism sector this year plans to focus on digitalisation of the industry and promotion of domestic tourism amid a downturn in tourism because of the COVID-19 pandemic.

The sector will continue its efforts to boost domestic tourism as the main factor driving the recovery of the tourism industry.

The tourism communication and stimulus campaign, ‘Hello Ho Chi Minh City,’ has been implemented to promote the city as a safe, vibrant and friendly destination.

Tourism cooperation and linkages between HCM City and the Northeast, Northwest and the Central regions will also serve to boost domestic travel.

The city aims to receive 33.5 million domestic visitors this year if COVID-19 remains under control in the country./.

Tet sales increase sharply on low prices

With a week to go for Tet (the Lunar New Year) sales of goods bought to celebrate the Lunar New Year have increased by 30-40 percent from normal times, according to market observers.

They attribute it to prices remaining steady and people’s increasing income at the end of the year.

Saigon Co.op’s supermarket chains have managed to meet market demand thanks to early preparation of goods, accurate forecast of demand and discounts, Nguyen Anh Duc, its permanent deputy general director, said.

In January sales increased by 37 percent compared to the same period in the previous month, with growth of fresh and processed foods, cosmetics, kitchen appliances, and garments being high, he said.

There have been no shortages of goods, especially pork, and no price hikes, he said.

Dinh Quang Khoi, head of marketing and customer care at MM Mega Market Vietnam, said customers have bought Tet goods earlier than usual, and retail sales increased by more than 10 percent compare with same periods of last year, while the increase is 5 -6 percent if the wholesale segment is included.

Shopping malls in Ho Chi Minh City like Vincom Central Dong Khoi, Takashimaya and Aeon Celadon Tan Phu are crowded, especially at weekends.

Sales of processed foods are expected to go up by more than 20 percent.

People are switching more and more to poultry meat and eggs instead of pork because the pork price is rising to the delight of companies like San Ha, Ba Huan and Vinh Thanh Dat.

According to experts, the prices of many items have never been so stable as this year as the Covid-19 pandemic caused global demand to shrink.

Many products could not be exported, and so producers and distributors switched their focus to the domestic market, increasing supply.

To sustain demand in this scenario enterprises have had to improve quality and keep prices competitive./.

HCM City in top six most preferred markets for investment: CBRE

There was an increase in interest in Ho Chi Minh City which ranked sixth among Asia Pacific investors’ most preferred property markets for investors, according to a survey by market research firm CBRE polling more than 490 Asia Pacific-based investors in November and December 2020.

With the diversification of supply chains encouraging more manufacturing investment in the city, industrial and logistics assets are keenly sought after, said the CBRE’s 2021 Asia Pacific Investor Intentions Survey.

“HCM City has already been on the radar of investors in recent years, especially those who are looking to invest in Southeast Asia, as the city is viewed as having the potential for greater appreciation in property values and higher yields,” said Dang Phuong Hang, CBRE Vietnam Managing Director.

The survey outlines top 10 Preferred cities for cross-border investment, with Tokyo (Japan) in the first place, followed by Singapore, Seoul (the Republic of Korea), Shanghai and Beijing (China), HCM City, Shenzhen (China), Sydney (Australia), Osaka (Japan) and Melbourne (Australia).

Investors who expressed interest in investing in Southeast Asia indicated that they are willing to pay more for real estate purchase. 39.4 percent of these investors are comfortable to pay more than 10 percent higher this year than what they are willing to pay in 2020, while 19.7 percent are willing to paying up to 10 percent higher.

In the search for returns, investors looking at Southeast Asia are turning to value-added and core assets, even though there are some who are starting to look at distressed assets. Industrial/logistics and office remain their preferred sectors, while the hospitality sector is gaining favour.

Henry Chin, CBRE’s Global Head of Investor Thought Leadership and Head of Research, Asia Pacific, said: “stronger interest in core investment reflects investors’ greater emphasis on tenant credit and stable cash flows.”

“Assets with a solid rent roll of three years or longer typically attract far more bidders than those lacking this type of security,” he added.

Logistics was the most popular sector for investment as the pandemic-driven acceleration of e-commerce consumption boosted demand for this asset class. While interest in the office sector weakened, investors retain an optimistic view towards this sector, expecting a contraction in office purchasing activity of no more than 10 percent over the next three years./.

January sees largest capital injection into stock market since early 2020: SSI

January saw the largest amount of investment capital poured into Vietnam’s stock market since the beginning of 2020 on the back of strong exchange traded fund (ETF) inflows, according to a report by SSI Securities Corporation.

Vietnam is Asia’s only stock market with non-stop capital injection over the last four week as it attracted more than 100 million USD last month thanks to massive ETF inflows, outweighing the net capital withdrawal of around 23.5 million USD, said SSI’s February strategic stock market report entitled “Co hoi trong bien dong” (Opportunity in volatility).

ETFs have also raked in about 129 million USD, or two third of the total inflows in 2020, mostly into VFM Diamond ETF (1.31 trillion VND or 57.15 million USD) and VFM VN30 ETF (860 billion VND).

The market also experienced strong foreign buying in the last three days of the month, raising foreign players’ net purchases of shares in January to about 127 billion VND.

SSI stated that Vietnam has become a quite attractive market largely owing to the country’s successful containment of COVID-19, positive economic growth and the fact that it remains a destination of the ongoing global production shift.

Though the pandemic has been a key contributor to the market volatility during this period of time, capital injection from ETFs into Vietnam remains a positive driver of the stock market, SSI said, adding that this also means increasing level of volatility.

According to the report, more than 81 billion USD was poured into stocks in both developed and emerging markets across the worrld last month, also with the domination of the ETFs./.

Vietnam increases pork imports to cool off rising domestic prices

Vietnam imported more than 141,000 tonnes of pork worth 334.4 million USD in 2020, representing a rise of 382 percent and 500 percent over the previous year, respectively, customs statistics showed.

The increase in imports was to make up for the shortage in pork supply caused by African swine fever which pushed up domestic prices in the first months of 2020.

The pork was mainly imported from Brazil, Russia, Poland, the US and Canada. Brazil was the largest exporter of pork to Vietnam last year, accounting for 24.5 percent of the import volume.

The average pork import price was 2.2 USD per kilo.

According to the Ministry of Agriculture and Rural Development, Vietnam approved 25 countries to export livestock and poultry meat to Vietnam, including more than 800 enterprises from 19 countries allowed to export pork to Vietnam.

Vietnam imported more than 43,300 pigs for breeding, mainly from Thailand, Canada, the US, Denmark and Taiwan (China).

Live hog prices tended to increase in many provinces across the country from early January due to increases in consumption demand ahead of Tet (Lunar New Year) to around 80,000 – 84,000 VND (4 USD) per kilo, around 5,000 VND higher than the end of December.

However, in recent days, pork prices decreased by around 1,000-5,000 VND per kilo.

Nguyen Van Trong, Deputy Director of the ministry’s Department of Livestock Production, said pork prices dropped in recent days because processing companies reduced their purchases as they had enough goods for consumption during Tet.

The enhanced prevention against smuggling of pork to China together with the increase in supply also helped lower pork prices.

Now Vietnam had 27.3 million pigs, an increase of 21 percent over a year ago and equivalent to 88.7 percent of the time before the disease occurred.

The Ministry of Industry and Trade said that early preparations were made to ensure enough supply of pork for Tet with many enterprises launching price stabilisation programmes./.

Australian expert highlights Southeast Asia’s trade prospects

Richard Maude, Senior Fellow at Australia’s Asia Society Policy Institute, has spoken highly of trade prospects of Southeast Asian nations against the backdrop of COVID-19.

In an article, he said that global trends in trade, foreign investment and production offer a mix of peril and opportunity for the Southeast Asian governments as they try to steer their damaged economies towards recovery.

“Beset by lockdowns, disrupted supply chains and travel restrictions, world trade volumes fell by historically steep levels in the first half of 2020. Southeast Asia was no exception – the region’s economies rely heavily on external demand and many play increasingly significant roles in East Asian supply chains,” he continued.

In the second quarter of 2020, for example, the value of goods exported from the ten members of the Association of Southeast Asian Nations (ASEAN) fell by 15 percent on a year-on-year basis and imports fell by 27 percent.

Foreign direct investment flows to Southeast Asia also declined sharply early in 2020.

The vertiginous plunge in world goods trade, at least, may now be bottoming out, but the International Monetary Fund (IMF) remains decidedly gloomy about prospects for a trade-led recovery in Asia.

Even so, amid all the uncertainty and downside risk, Southeast Asia may yet find itself better placed than other regions to trade itself out of trouble, the expert said, citing that East Asian economic regionalism will strengthen as one of the reasons.

Most major East Asian economies – China, Japan, the Republic of Korea and Taiwan – have managed to re-open their economies. China’s giant economy in particular is once again growing and helping keep Southeast Asian trade afloat.

Domestic consumption in Southeast Asia could double to 4 trillion USD over the next ten years.

Within the region, there are also signs the deep economic slump of the first half of 2020 is easing, at least in those parts of the region where the pandemic has been tamed. The decline in ASEAN global goods exports and imports, for example, slowed in the third quarter of 2020 on a quarter-on-quarter basis.

Vietnam, one of the best performing ASEAN economies, managed to eke out a small increase in economic growth in 2020, he cited.

Once it enters into force, the newly signed Regional Comprehensive Economic Partnership (RCEP) trade deal will give intra-Asian trading another boost. It is an incentive for large corporations to locate as much of their supply chains as possible within the bloc.

“ASEAN is also well placed to benefit from supply chain diversification within East Asia. Some manufacturing was already shifting to Southeast Asia before the pandemic.”

The pandemic has now reinforced interest from companies from around the world in regionalisation and supply chain diversification. Some governments, Japan, for example, is offering financial incentives to some of its companies to build production sites in Southeast Asia.

Like the rest of the world, the region faces headwinds and uncertainties, Maude noted, putting forth some suggestions for regional countries to use trade to help drive economic recovery./.

Tet sales increase sharply on low prices

With a week to go for Tet (the Lunar New Year) sales of goods bought to celebrate the Lunar New Year have increased by 30-40 per from normal times, according to market observers.

They attribute it to prices remaining steady and people’s increasing income at the end of the year.

Saigon Co.op’s supermarket chains have managed to meet market demand thanks to early preparation of goods, accurate forecast of demand and discounts, Nguyen Anh Duc, its permanent deputy general director, said.

In January sales increased by 37 per cent compared to the same period in the previous month, with growth of fresh and processed foods, cosmetics, kitchen appliances, and garments being high, he said.

There has been no shortages of goods, especially pork, and no price hikes, he said.

Dinh Quang Khoi, head of marketing and customer care at MM Mega Market Viet Nam, said customers have bought Tet goods earlier than usual, and retail sales increased by more than 10 per cent compare with same periods of last year, while the increase is 5 -6 per cent if the wholesale segment is included.

Shopping malls in HCM City like Vincom Central Dong Khoi, Takashimaya and Aeon Celadon Tan Phu are crowded, especially at weekends.

Sales of processed foods are expected to go up by more than 20 per cent.

People are switching more and more to poultry meat and eggs instead of pork because the pork price is rising to the delight of companies like San Ha, Ba Huan and Vinh Thanh Dat.

According to experts, the prices of many items have never been so stable as this year as the Covid-19 pandemic caused global demand to shrink.

Many products could not be exported, and so producers and distributors switched their focus to the domestic market, increasing supply.

To sustain demand in this scenario enterprises have had to improve quality and keep prices competitive.

One Commune One Product attracts Tet shoppers

Many products made under a programme called ‘One Commune One Product’ have become a big hit with consumers seeking to buy gift hampers for Tet (Lunar New Year).

Sticky rice grown by the Khau Nua Lech Thuong Quan Rice Cooperative in Bac Kan Province’s Ngan Son District is one such.

The co-operative has had to mobilise a lot of manpower to fulfil the mountain of orders it got.

Its rice is renowned for its plasticity and aroma, and is well known to consumers across the country.

According to a co-operative spokesperson, 100 additional workers were hired for packaging and delivery but demand still not be met.

In the last month or so it supplied more than 10 tonnes of rice to markets such as HCM City and Ha Noi.

Phan Thanh Hieu, director of the Phuong Nam Food Joint Stock Company, said this year, due to the impact of the COVID-19 epidemic, businesses had prepared for low demand, but two high-end products, organic ST 25 and ST 25 rice varieties, grown together with shrimp in Soc Trang Province, are out of stock.

“We have had to turn down many orders or deliver less than the ordered quantity though the rice prices are four to five times higher than that of other rice. ST 25 grown together with shrimp has a price of VND285,000(US$12.4) for 5kg, VND15,000 higher than ST 25.”

Le Kieu Phuong, director of Phuc Thinh Production and Commerce Co. Ltd, said her company recently got a One Commune One Product (OCOP) certificate for its three prawn cracker production lines in Ca Mau Province.

It is now working on selling the products to major supermarket chains before Lunar New Year with the aid of the certificate, she said.

In Dong Nai Province, where more and more people are becoming interested in regional specialties, seven OCOP producers have signed contracts with Central Retail Viet Nam to sell 21 items.

Nguyen Thi Bich Van, media director of Central, said the two supermarkets would design their display shelves to ensure OCOP products easily catch the eye of shoppers as part of a commitment to support them.

MM Mega Market is also selling 56 OCOP confectionery and jam products for Tet at discounts of up to 50 per cent to introduce them to customers.

Do Quoc Huy, marketing director of Saigon Co.op, said the company is helping develop OCOP goods, but their limited production means they could only be sold locally and not across its retail chains.

The two-year-old OCOP programme has helped a number of localities develop a wide variety of agricultural and non-agricultural products, providing steady incomes to many locals.

COVID-19 pandemic continues to ravage travel industry

A resurgence of Covid-19 just before the Tet (Lunar New Year) holiday has hugely impacted travelling, again demonstrating its impact on the tourism industry.

“There has been an immediate impact on the hospitality business with several cancellations across the country, not only in the affected destinations but anywhere with access via an airport,” Mauro Gasparotti, director of Savills Hotels Asia Pacific, said.

“Prior to these local transmissions, the industry was anticipating increased travel demand during and after the Tet holiday, which would have been a good start to the year,” Gasparotti said.

Travel interest is diminishing amid a mist of uncertainty with air travel demand dropping 15 per cent immediately after the news release.

Online flight search demand to Da Nang and HCM City during this peak period of the year dropped 35 per cent and 34 per cent week-on-week respectively, according to OTA Insight.

Some companies immediately enforced travel restrictions, with requests to limit attending events and large gatherings.

This has directly affected MICE (Meetings, Incentives, Conferences and Exhibitions) business in city hotels, where several conferences have been put on hold or delayed.

Drive-to destinations have also been affected by weekend cancellations.

Last year international arrivals to the country numbered just 3.8 million, a 78 per cent decline from 2019.

Domestic traveller numbers fell 34 per cent to 56 million.

Hotels and resorts suffered badly, with many being forced into temporary closure.

Last year occupancy and average daily rates (ADR) both dropped, while revenues fell 70 per cent.

In Ha Noi, the average occupancy was 32 per cent compared to 80 per cent in 2019 while it dropped to 23 percent in HCM City from 72 per cent.

The national average of 62 per cent in 2019 plummeted to just 24 per cent last year.

January started on a positive note, with hotels in key destinations seeing increased MICE and event bookings while at some resorts corporate bookings started to return, Gasparotti said.

“The market in 2021 is expected to be broadly similar to most of 2020, at least until borders reopen to leisure and business trade. Hotels have adapted by considerably reducing operating costs to establish lower breakeven points.

“The good news is that several destinations are still performing at acceptable levels.”

The performance in December and January was positive for destinations like Phu Quoc and Vung Tau, which appeal to both local leisure travellers and year-end company trips.

Some hotels have used promotions, such as ‘staycation’ packages and F&B deals to nurture local demand, which have propped up their numbers.

Fruit and vegetable exports decline by 7.6% in January

Vietnamese fruit and vegetable exports in January endured a drop of 7.6% to US$260 million compared to the same period from last year, largely due to unpredictable developments relating to the COVID-19 pandemic, according to the Ministry of Agriculture and Rural Development (MARD).

The MARD’s Agro-Processing and Market Development Authority stated that China was the leading importer of local fruit and vegetables last year, making up 56.3% of the total market share, although fruit and vegetable exports to this market fell by 25.7% to US$1.84 billion compared to 2019.

Elsewhere, the United States market ranked second with US$168.8 million, followed by Thailand with US$157.2 million, the Republic of Korea with US$143 million, and Japan with US$127.7 million.

Furthermore, January saw the country’s import value of fruit and vegetables enjoy an annual increase of 22.3% to US$140 million, with China, the US, and Australia representing the three largest suppliers to the Vietnamese market.

Moreover, the import value of fruit and vegetables from China in 2020 decreased by 21% compared to 2019’s figures, while imports from the US and Australia witnessed respective increases of 2.3% and 1%.

Due to complicated developments relating to COVID-19, the nation’s fruit and vegetable export activities have been significantly impacted as consumers have changed their shopping habits with several countries also moving to tighten import procedures as a way of securing their borders.

Experts have therefore advised local firms to strive to strengthen their supervision over product quality to avoid violating quarantine regulations, and ensure that food and safety rules are followed as a means of facilitating relevant customs clearance processes.

Acceleration opportunity for Vietnamese AI startups

The AI Accelerator Challenge 2021, organised by VSV Foundation under the auspices of the Ministry of Science and Technology and funded by the Australian Embassy, is officially open for registration.

The AI Accelerator Challenge 2021(AAC 2021) is an acceleration programme specifically designed for Vietnamese AI startups with innovative ideas and products that address the practical needs of the market.

AAC 2021, themed “AI in pandemic – Adapting to the new normal”, has been organised with the goal of identifying, incubating, promoting, and developing potential AI-powered applications in numerous fields such as finance, commerce, electronics, telecommunications, manufacturing, agriculture, healthcare, education, transportation, and smart city development. Participants will have the opportunity to undertake a 4-week online training course, after which the top five teams will be awarded prizes including a service support package worth VND500 million($21,740), a business promotion and mentoring course worth VND200 million ($8,700) and up to VND200 million in seed investment with no equity required.

The programme will assist Vietnam’s economic recovery from the COVID-19 pandemic, as well as help to foster the development of a vibrant AI startup environment. “Vietnam should be very proud of its successes in tackling COVID-19,” said Andrew Barnes, Australian Chargé d’Affaires to Vietnam. “Through sponsoring programmes to promote innovative applications using AI, Australia is demonstrating its strong commitment to assisting Vietnam in overcoming the COVID-19 pandemic, supporting economic recovery, and strengthening its innovation system.”

“The government is trying to implement many activities to cope with disruptions caused by COVID-19, in which innovation and the application of advanced science and technology have been defined as the key to increase the resilience of businesses and the recovery of the economy. AI is one of the core technologies that promise to revolutionise many of Vietnam’s key socioeconomic sectors such as health, education, business, commerce, finance, and agriculture,” Deputy Minister Bui The Duy from the Ministry of Science and Technology (MoST) added.

“We are proud to be a part of this programme,” said Thach Le Anh, founder of VSV Foundation. “AAC 2021 will not only allow Vietnamese AI startups to receive mentoring from top AI technology experts but also support them with business development and fund-raising, including by raising capital from angel investors and leading domestic and foreign venture capital funds. The startups will be able to raise up to VND2 billion ($86,960) after the programme ends.”

This programme is funded by Australia’s flagship Aus4Innovation programme which will disburse AUD11 million ($8.44 million) over four years (2018-2022) to strengthen the Vietnamese innovation system and prepare for Vietnam’s economic and digital future. It is funded by the Australian Department of Foreign Affairs and Trade and managed by the Australian Commonwealth Scientific and Industrial Research Organisation in strategic collaboration with the MoST.

Investors give EVN Genco 2 cold shoulder at IPO

Despite Power Generation Corporation 2 (EVN Genco 2) owning substantial interests in several thermal and hydropower plants, 99.97 per cent of the stake it offered at its initial public offering (IPO) was unmarketable.

The Ho Chi Minh City Stock Exchange (HSX) has published the results of the auction registration for the stake of EVN Genco 2.

The company offered 580 million shares or 48.9 per cent of its charter capital to investors with the initial price of VND24,520 ($1.06) per share and expected to acquire VND14.225 trillion ($618.5 million) from the sale.

However, only 14 investors registered to join the auction, registering 262,500 shares, including 200,000 shares from a single foreign investor, 10,500 shares by five Vietnamese people, and 52,000 shares by eight domestic investors.

At present, EVN Genco 2 owns a 100 per cent stake in Trung Son Hydropower One Member LLC, which operates Trung Son hydropower plant with the designed capacity of 1 billion kWh per year.

It also owns a series of thermal power companies including Pha Lai, Haiphong, and Thac Mo, among others.

According to its financial statement, the company generated 17.8 million kWh, equaling 97 per cent of its plan for the whole year and 7 per cent of the power coursing through the whole national power grid.

The unmarketable IPOs of EVN Genco had precedent because they own too many member companies and subsidiaries. Buying stakes in the plants one by one will help investors limit risks.

Previously, EVN Genco 3 failed in its IPO in February 2018 when only 2.8 per cent of the offered shares was sold.

Vietnam targets 60 – 62 bln USD from agro-forestry-fisheries export by 2030

Vietnam has set a goal of earning around 60-62 billion USD from agro-forestry-fisheries export by 2030 under a project recently approved by the Prime Minister.

The project looks to fully and sustainably join the global supply chain of agro-forestry-fisheries, improve the quality and value of their export to meet regulations of importers, and develop their trademarks in international markets.

Of the figure, 25 billion USD will be from major farm produce, 16-17 billion USD from forestry products, 15 billion USD from aquatic products, 3-4 billion USD from animal husbandry products, and nearly 2 billion USD from others.

Agro-forestry-fisheries export is expected to grow by some 6-8 percent annually. About 40 percent of export will be national brands, 70 percent have their origins traced, and around 60 percent of exports are processed and deeply processed ones.

To such end, the project targets fine-tuning mechanisms and policies to ensure food safety and develop support industry, assisting firms in protecting intellectual property right in export markets, popularising trademarks on domestic and foreign media./.

Central localities seek new development routes amid COVID-19

Central provinces must adjust their socio-economic development goals and strategies to minimise the adverse effects brought by the COVID-19 pandemic and natural disasters in 2020, officials have said.

Nguyen Tan Tuan, Chairman of the People Committee of Khanh Hoa province, said while the province’s tourism industry was hit especially hard, growth in the industrial sector managed to stay positive.

“Since the beginning of the pandemic, we have made it our highest priority to keep the virus in check. Our effort has allowed us to attract a number of foreign investors as they moved from regions hard-hit by COVID-19,” Tuan said.

He said the province has been making use of the downtime to upgrade and invest in its tourism infrastructure, waiting for international tourists to return. In the meantime, Khanh Hoa has started several promotion campaigns to attract domestic travellers.

Meanwhile, Quang Nam made significant gains in developing modern agriculture in 2020 despite being one of the central provinces severely hit by natural disasters last year.

“Agriculture has always been a key priority in our province’s development scheme. During the pandemic, it has become Quang Nam’s economic driver,” said Le Van Dung, Deputy Secretary of the provincial Party Committee.

Dung said with tourism and commerce disrupted because of the pandemic and natural disasters Quang Nam chose to make large investments in industrial projects to mitigate the economic damage to the province in the long run.

Quang Ngai, a traditionally strong economic performer in the region thanks to being home to the country’s largest oil complex the Dung Quat Refinery, has been looking for ways to become less reliant on the oil industry.

Dang Van Minh, Chairman of the provincial People’s Committee, said the province has been working with its partners to set up numerous large-scale industrial parks.

“We want to become one of the country’s best destinations for investments and industrial development. The province aims to build a transparent and healthy business environment to win over potential investors,” said Minh.

Meanwhile, Da Nang, the central region’s main economic hub and the city most affected by the pandemic with nearly 200,000 jobs lost during 2020, said it has set a new course to push for greater digitalisation of commerce, smart city technologies and star ups culture.

“The city aims to diversify its economy. While we still identify tourism and services as major industries we want to see strong development on the fronts of information technology and digitalisation in the near future,” said Nguyen Dinh Vinh, head of the municiapal Party Committee’s Board for Information and Education./.

Cambodia to resume farmed fish import from Vietnam

The Cambodian Ministry of Agriculture, Forestry and Fisheries on February 8 issued a press release on the resumption of the import of aquatic products, including farmed fish, from neighbouring countries, including Vietnam.

The import suspension was announced by the Cambodian side one month ago.

On January 19, Vietnamese Minister of Industry and Trade Tran Tuan Anh sent a letter to Cambodian Minister of Commerce Pan Sorasak, saying Vietnam’s shipments of farmed fish failed to pass through customs and were returned.

The import ban showed signs of running counter to the trade liberalisation spirit of the World Trade Organisation (WTO) and the ASEAN Economic Community, of which both countries are members, he said.

In the press release, the Cambodian Ministry of Agriculture, Forestry and Fisheries said it will continue to collect feedback from the Cambodian Aquaculture Association, importers and exporters, and concerned agencies that are Cambodia’s trade partners to build and recognise technical standards.

Le Bien Cuong, head of the Vietnamese trade affairs office in Cambodia, told the Vietnam News Agency on February 8 that the Cambodian side has shown its goodwill and active response.

Cambodia would consider imposing additional non-tariff technical measures in farmed fish import, including certificates of product origin and quality, he said.

According to the Vietnamese ministry, in recent years, Vietnam has exported about 60 million USD worth of aquatic products to Cambodia annually. Although Cambodia is not a major market of Vietnamese aquatic products, its stable import demand has contributed significantly to cross-border trade development, as well as job creation and income generation for local residents./.

VinFast acquires licence to test self-driving electric vehicles in California

VinFast has just become the 57th automaker to receive a licence to test self-driving electric vehicles in California, the US.

The company said its three SUV models VF31, VF32 and VF33 met the highest global safety standards including five-star ratings from the US National Highway Traffic Safety Administration and the European New Car Assessment Programme.

VinFast has just become the 57th automaker to receive a licence to test self-driving electric vehicles in California, the US.

Automakers, including big names such as Apple, Tesla, BMW, and Volkswagen according to California’s Department of Motor Vehicles website, have also secured their licences to test run their vehicles in the Golden State, the world’s largest technology and innovation hub.

All three of the company’s models are to be equipped with level 2-3 autonomous features, which include 30 smart features divided into seven groups: intelligent steering assist system, lane control system, active journey control system, multi-point collision warning system, comprehensive collision mitigation system, intelligent automated parking system and driver monitoring system.

Models VF32 and VF33 will be sold in the US, Canada and Europe markets from 2022. The launch of high-tech electric vehicles, including electric scooters, electric buses and personal electric cars, is part of VinFast’s pre-defined roadmap since entering the automotive market three years ago.

Customers can start ordering the cars in May this year in Vietnam and in November in the US, Canada and the EU.

In Vietnam, Vietnamese automakers also started to install electric vehicle charging stations at commercial centres at Vinhomes Ocean Park, Vincom Long Bien in Hanoi to serve the first electric cars produced, expected to be available this year.

VinFast sold 31,500 cars in Vietnam last year, with its VinFast sedan and SUV models among the bestsellers in their respective segments./.

Agricultural, forestry, fisheries exports up sharply in January

Vietnam’s exports of agricultural, forestry, and fisheries products grew 27.1 percent year-on-year to 3.49 billion USD in January.

Rubber was the best performer in the opening month of the year, following on from its uptrend last year and totalling 200,000 tonnes worth 321 million USD, increases of 2.2-fold and 2.4-fold, respectively, year-on-year.

Shipments of key forestry products totalled 1.33 billion USD, up 47.8 percent year-on-year. Exports of wood and timber products alone reached 1.25 billion USD, up 48.4 percent.

Fisheries exports rose 19.6 percent to about 600 million USD, following repeated declines last year, especially after the outset of COVID-19.

Prawn exports experienced the highest growth last year among all fisheries items, up 11 percent to 3.7 billion USD.

Several major export earners, meanwhile, declined in January, including rice, fruit and vegetables, coffee, and pepper.

The country exported around 280,000 tonnes of rice for 154 million USD in the month, down 29.5 percent and 20.2 percent, respectively, from a year earlier.

A similar trend was seen in fruit and vegetables, with shipments reaching just 260 million USD, a year-on-year decline of 7.6 percent./.

Da Nang developing supporting industries

The central city of Da Nang has set a goal of developing supporting industries in tandem with high-tech industry to create products with high added value for export.

Under action programme No 01-Ctr/TU issued by the municipal Party Committee on December 10, 2020, the industry-construction sector is to grow by 11-11.5 percent annually between 2020 and 2025.

The municipal Department of Industry and Trade has reported that several large-scale projects in supporting industries have gradually joined the global supply chain.

Since 2016, Da Nang has attracted 24 new supporting industry projects worth over 9 trillion VND, two of which are foreign-invested, with 240 million USD, specialising in manufacturing aviation and automobile spare parts.

Da Nang is now home to around 110 supporting industry firms, accounting for 6.3 percent of all industrial enterprises in the city.

However, the number of domestic companies in the field remains limited, and most are of small scale with average technological capabilities. Meanwhile, foreign firms mostly process and assemble imported materials because the rate of domestically-made items remains low. Links between foreign and domestic businesses, meanwhile, are still less than needed.

General Director of the Long Hau Company, Tran Hong Son, said a number of local companies have yet to meet requirements for being recognised as supporting industry enterprises or manufacturers under Vietnam’s regulations.

He suggested quickly completing planning for an area devoted to supporting industry enterprises inside the Da Nang Hi-tech Park (DHTP) and putting it into operation to attract capable investors.

Head of the management board of the DHTP and industrial parks in Da Nang, Pham Truong Son, said the municipal People’s Committee has completed the planning for a supporting industrial park in the DHTP, which has been submitted to the Prime Minister for approval.

Once approved, Da Nang will outline a list of sectors in need of investment and then set up the park, the first of its kind in supporting industries in the city. Investors in the park would work with those at DHTP to create an industrial ecosystem.

If Da Nang develops supporting industries, investment will also pour into nearby localities, he said.

Under Politburo Resolution No 43/NQ-TW, Da Nang is to be a nucleus of the central key economic region and will develop hi-tech industries and information technology. To this end, Son suggested making the best use of its geographical location, infrastructure, human resources, and supporting industry.

Under the pending plan, the supporting industrial park is to cover an area of over 102 ha in Hoa Vang district, adjacent to the DHTP and the city’s information technology park.

In line with Resolution No 01-NQ/TU from the standing board of the municipal Party Committee, supporting industry enterprises will increase in number by 2030 and be capable of producing highly-competitive products, focusing on spare parts, software, and key services in support of priority industries. The city will also attract multi-national groups to guide and facilitate technology transfer.

By 2025, the city expects to have over 150 supporting enterprises, with at least 10 percent of domestic supporting enterprises being able to supply products to manufacturers. The value of the supporting industry will make up around 30 percent of added valued in the manufacturing and processing sector. At least one multi-national group or company is to invest in manufacturing end products.

Of the more than 300 supporting enterprises to be in business by 2030, at least 15 percent are to be able to directly supply products to manufacturers and assemblers. The value of the supporting industry will account for nearly 40 percent of added value in the manufacturing and processing sector and at least one multi-national group or company will invest in manufacturing end products./.

Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR

Workers loading coils on trucks at a steel mill in northern Viet Nam. An early warning system on trade remedy risks for certain exports will be completed this year so that enterprises can gear themselves up early. — Photo baodautu.vn

Le Trieu Dung, Director of the MoIT’s Trade Remedies Authority of Vietnam (TRAV), said the ministry will accelerate current trade remedy probes into imports so as to take timely action to protect domestic manufacturers.

An early warning system on trade remedy risks for certain exports will be completed this year so that enterprises can gear themselves up early.

Additionally, MoIT will coordinate with relevant agencies to boost action against origin fraud and illegal transhipments aimed at evading trade remedies, while working to improve the trade remedy-related capacity of domestic businesses and State agencies, Dung said.

Since becoming a member of the WTO and free trade agreements (FTAs), Viet Nam has opened its market and slashed import tariffs on a large number of goods, exposing its businesses to strong competition from imports.

Trade defence measures, which are policy tools permitted by the WTO, he said, have an important role to play in ensuring effective economic integration and minimising its adverse impact on businesses.

Between 2016 and 2020, MoIT launched 13 trade remedy investigations into imported commodities such as DAP fertiliser, monosodium glutamate (MSG), steel, and BOPP film.

Remedies applied so far have proved effective in addressing losses caused by surges of imports and protecting domestic producers, he said.

He pointed out that State agencies and some enterprises have worked to promote their trade remedy-related capacity, but many shortcomings remain, so a new policy and legal framework that matches provisions in the FTAs Viet Nam has joined is needed.

The issue of trade defence as stipulated in Chapter 5 of the Law on Foreign Trade Management, but one chapter cannot provide all detailed regulations. This has led to certain limits in the investigation and implementation of trade defence measures.

New issues frequently emerge in the field, which also requires that relevant State agencies and businesses have in-depth knowledge about law and finance. The complex developments of COVID-19 last year also hampered support to enterprises, he acknowledged.

Meanwhile, trade remedy probes targeting Vietnamese exports in foreign markets also increased considerably in 2020 and are projected to rise even higher this year.

Given this, he said, MoIT has recommended local businesses equip themselves with knowledge on trade remedy regulations, particularly those of Viet Nam and export markets while readying resources to cope with possible foreign trade remedies.

They should also keep a close watch on the import of related products so as to detect any signs of dumping or subsidies in a timely manner and prevent losses for domestic manufacturers.

Railway companies suffer losses due to COVID-19

Vietnamese railway companies reported large losses in 2020 due to the impacts of the COVID-19 pandemic.

Ha Noi Railway Transport JSC (HRT) earned VND469 billion (US$20.5 million) in the fourth quarter of 2020, down 21 per cent year-on-year.

Cost of goods sold accounts for most of net revenue, thus gross profit totaled only over VND8 billion, down sharply compared to VND42 billion in the same period of 2019. After deducting expenses, the after-tax loss in Q4 was estimated at nearly VND55 billion, while in the same period last year its loss was just more than VND12.5 billion.

In 2020, HRT achieved revenue of VND1.94 trillion, down 24 per cent year-on-year. It suffered a loss of VND195 billion in the year while enjoying profit of VND14 billion in 2019.

Previously at the General Meeting of Shareholders in 2020, the company approved a plan for 2020 which expected total revenue to reach VND1.63 trillion, and a loss up to VND335.4 billion due to the influence of COVID-19.

Saigon Railway Transport JSC (SRT) announced Q4 revenue of VND282 billion, down by 22.5 per cent year-on-year. It reported an after-tax loss of more than VND105 billion.

For the whole year 2020, SRT reported an accumulated loss of VND218 billion, while the business had a profit of VND14.6 billion in 2019.

Due to the impact of the COVID-19 pandemic, many railway companies faced difficulties. According to experts, the railway industry in 2020 experienced the most difficult period in history.

Viet Nam Railway Corporation (VNR) also announced that its revenue in the first nine months of 2020 decreased 34.2 per cent year-on-year, equivalent to a decrease of VND1.18 trillion.

Viet Nam gains cassava export growth in 2020 despite COVID-19

Viet Nam gained growth in the export of cassava chips and cassava-made products in 2020 despite the COVID-19 pandemic, according to the Department of Agricultural Product Processing and Market Development.

Exports last year reached 2.76 million tonnes, earning US$989 million, an increase of 9 per cent in volume and 2.4 per cent in value compared to 2019. However, the average export price of those products reduced by 6 per cent to $358.3 per tonne year on year.

In December alone an estimated 330,000 tonnes with a value of $118 million were exported.

Impacts of the COVID-19 pandemic did cause problems for the cassava production industry according to the department under the Ministry of Agriculture and Rural Development, but it was still one of the few agricultural products with a positive growth in export value.

The exports of cassava chips in 2020 reached 640,000 tonnes, earning $139 million, up 60 per cent in volume and 75 per cent in value over the same period last year. The average export price for this product reached $217 per tonne, up 10 per cent.

Tapioca export was estimated at 2.1 million tonnes with a value of $850 million, down 1 per cent in volume and 4 per cent in value over the same period in 2019. Its average export price reached $401 per tonne, down 4 per cent.

According to the department, China was the largest export market with the total volume of cassava chips and cassava-made products reaching 1.9 million tonnes, earning $772 million. That’s an increase of 11.5 per cent in volume and 2.7 per cent in value compared to 2019.

Taiwan and Malaysia were also two other largest export markets of Vietnamese cassava with the growth in export value of 15 per cent and 3 per cent year on year, respectively, in the first 11 months of 2020.

In China market, Viet Nam is currently the second largest supplier of both cassava chips and tapioca, according to China’s General Department of Customs.

Vietnamese garments made with Korean fabrics to enjoy tax incentives in EU

Local garments and clothing items made using fabrics from the Republic of Korea (RoK) are set to enjoy lower tariffs than in the EU, according to a statement issued on February 8 by the Korean Ministry of Trade, Industry and Energy.

Previously, clothing items had been required to be made using locally produced fabrics in order to get the benefits of the EU-Vietnam Free Trade Agreement (EVFTA).

Subsequently, the Korean Ministry of Trade, Industry and Energy has revealed that with the Republic of Korea (RoK) representing the second-largest supplier of fabrics in Vietnam, the latest policy will cause greater demand for products from the RoK in comparison to other competitors such as those from China and Taiwan (China).

In line with this, the country has to import up to 80% of raw materials in order to meet the needs of the domestic garment and textile industry.

Last year saw China make up 55% of the nation’s fabric imports, followed by the RoK, Taiwan (China), and Japan, accounting for 16%, 12%, and 6%, respectively.

Most notably,  the country’s fabric exports from the RoK declined by 18.4% on-year to US$2.35 billion last year.

Da Nang seeks to develop supporting industries

The central city of Da Nang has set a goal of developing supporting industries in tandem with high-tech industry to create products with high added value for export.

Under action programme No 01-Ctr/TU issued by the municipal Party Committee on December 10, 2020, the industry-construction sector is to grow by 11%-11.5% annually between 2020 and 2025.

The municipal Department of Industry and Trade has reported that several large-scale projects in supporting industries have gradually joined the global supply chain.

Since 2016, Da Nang has attracted 24 new supporting industry projects worth over VND9 trillion, two of which are foreign-invested, with US$240 million, specialising in manufacturing aviation and automobile spare parts.

Da Nang is now home to around 110 supporting industry firms, accounting for 6.3% of all industrial enterprises in the city.

However, the number of domestic companies in the field remains limited, and most are of small scale with average technological capabilities. Meanwhile, foreign firms mostly process and assemble imported materials because the rate of domestically-made items remains low. Links between foreign and domestic businesses, meanwhile, are still less than needed.

General Director of the Long Hau Company, Tran Hong Son, said a number of local companies have yet to meet requirements for being recognised as supporting industry enterprises or manufacturers under Vietnam’s regulations.

He suggested quickly completing planning for an area devoted to supporting industry enterprises inside the Da Nang Hi-tech Park (DHTP) and putting it into operation to attract capable investors.

Head of the management board of the DHTP and industrial parks in Da Nang, Pham Truong Son, said the municipal People’s Committee has completed the planning for a supporting industrial park in the DHTP, which has been submitted to the Prime Minister for approval.

Once approved, Da Nang will outline a list of sectors in need of investment and then set up the park, the first of its kind in supporting industries in the city. Investors in the park would work with those at DHTP to create an industrial ecosystem.

If Da Nang develops supporting industries, investment will also pour into nearby localities, he said.

Under Politburo Resolution No 43/NQ-TW, Da Nang is to be a nucleus of the central key economic region and will develop hi-tech industries and information technology. To this end, Son suggested making the best use of its geographical location, infrastructure, human resources, and supporting industry.

Under the pending plan, the supporting industrial park is to cover an area of over 102 ha in Hoa Vang district, adjacent to the DHTP and the city’s information technology park.

In line with Resolution No 01-NQ/TU from the standing board of the municipal Party Committee, supporting industry enterprises will increase in number by 2030 and be capable of producing highly-competitive products, focusing on spare parts, software, and key services in support of priority industries. The city will also attract multi-national groups to guide and facilitate technology transfer.

By 2025, the city expects to have over 150 supporting enterprises, with at least 10% of domestic supporting enterprises being able to supply products to manufacturers. The value of the supporting industry will make up around 30% of added valued in the manufacturing and processing sector. At least one multi-national group or company is to invest in manufacturing end products.

Of the more than 300 supporting enterprises to be in business by 2030, at least 15% are to be able to directly supply products to manufacturers and assemblers. The value of the supporting industry will account for nearly 40% of added value in the manufacturing and processing sector and at least one multi-national group or company will invest in manufacturing end products.

Can Tho attracts largest FDI project of US$1.3 billion

Can Tho City’s People’s Committee granted an investment registration certificate on the morning of February 8 to representatives from investors of the O Mon II Thermal Power Plant Project.

The factory aims to meet increasing demand for electricity from the regional power grid and the national power system, thereby attracting domestic and foreign investment in order to continue contributing to socio-economic development in Can Tho and throughout the Mekong River Delta region.

O Mon II Thermal Power Plant represents the largest-ever FDI project in Can Tho, which has increased the number of FDI projects in the region to 85, with total registered capital of approximately US$2 billion, including seven Japanese FDI projects capitalised at more than US$1.3 million.

Tai Miura, general director of Marubeni Asian Power Vietnam Co., Ltd, spoke highly of timely and strong support offered by relevant agencies of Can Tho in order to facilitate the firm’s procedures as a means of swiftly obtaining an Investment Registration Certificate.

Miura also stressed that the project will make further contributions aimed at meeting the power development needs of the city and the wider region, adding that the company has committed to using hi-tech equipment in implementing the project, minimising the environmental impact, and transferring technological expertise to the locality.

During the event, the chairman of Can Tho City’s People’s Committee Tran Viet Truong expressed his belief that the participation of both Marubeni Group and Vietnam Investment Construction and Trading Joint Stock Corporation will help deploy the O Mon II thermal power plant project in line with the schedule. Indeed, it will ultimately contribute to accelerating the local economy as well as generating jobs for residents.

He therefore emphasised that the city will strive to create the optimal conditions as part of the implementation of the project, create an open investment environment, and turn Can Tho into a reliable and attractive destination for investors.

VN, Japan banks provide joint financial services

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.

Representatives of the two banks said that 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 organizations 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.

Gold investors urged to stay cautious amid strong market volatility

Vietnam’s gold market has witnessed strong market volatility in the first month of the year, for which experts warned such trend could further persist in February due to global economic-political uncertainties.

In the global market, gold prices surged by US$33 to US$1,931 per ounce in early 2021, the highest since last November. The price, however, suffered a sharp decline by US$20 to US$1,848.1 per ounce in late January and US$1,840 in early February.

The domestic gold prices, meanwhile, seemed to stay away from the global trend as state-owned Saigon Jewelry Company (SJC), the country’s largest gold and gold jewelry production and distribution company, posted the selling and buying prices in February at VND56.3-56.8 million (US$2,457–2,479) per tael, slightly higher than the corresponding prices of VND55.05 -56.67 million (US$2,394-2,473) from early 2021. A tael is 37.5 grams or 1.2 ounces.

While the global gold prices are on a declining trend, it is expected to go up in long-term at a time when governments around the world are injecting cash and draft supporting polices to speed up economic recovery process.

Moreover, high demand for gold after the Lunar New Year holidays in Asian countries could further drive prices of this precious metal up.

In a surprise move, India, the second-largest consumer of gold in the world after China, announced its decision to cut half the import duty for gold and silver, saying the move is necessary to curb inflows of illegal supplies and boost domestic consumption.

According a Kitco News outlook survey, 84% of respondents said they see gold over US$2,000 an ounce by the end of 2021, while Credit Suisse expected the gold prices to average US$2,100.

Risks remain

On February 3, SJC gold prices topped VND57 million (US$2,487) per tael, driving domestic gold prices up to around VND5.3 million (US$231.27) per tael, higher than the prices in global market.

With three weeks away from the God of Wealth Day [February 21], the day when people would rush to buy gold expecting this would bring good fortune to their businesses and families in a new year, the gold prices are expected to go up.

Investor Director of Maybank KimEng Vietnam Phan Dung Khanh predicted the gold prices in the God of Wealth Day would rise by 3-5% from previous days.

“Assuming the global gold prices in the God of Wealth Day are around US$1,850 per ounce [or US$2,220 per tael], the domestic price should be VND56 million (US$2,436) per tael, but a strong demand could push the prices to VND57.7-58.8 million (US$2,517-2,565) per tael,” he noted.

Given a large gap between domestic and international gold prices, banking expert Nguyen Tri Hieu said it would be high risks for investors to bet their money on gold at the moment.

“Gold prices could change its course immediately when bad news turns up,” Mr. Hieu suggested.

In fact, over the last few months, many gold investors have suffered losses of up to hundreds of dollars per tael due to a volatile market, added Mr. Hieu.

Sharing Mr. Hieu’s view, economist Can Van Luc said a new US administration under President Joe Biden with different economic policies could cause a major shuffle in the international gold market.

COVID-19 boosts online shopping for Tet

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.

LG Display Vietnam Haiphong increases capital by $750 million

Haiphong People’s Committee has awarded the investment certificate for the LG Display Haiphong project to increase capital by $750 million.

The meeting between Haiphong City Party Committee and industrial zone (IZ) infrastructure investors aimed to resolve the difficulties and promote investment in IZs. Additionally, LG Display Haiphong Co., Ltd. has been awarded the certificate to expand investment by $750 million.

The LG project is located in Trang Due Industrial Park, Haiphong city. Haiphong Economic Zone Authority has issued its first investment registration certificate on April 15, 2016 with the total registered investment capital of $2.5 billion, authorising it to manufacture OLED TV screen, plastic OLED screens, and LCD screens, among others.

After the capital expansion, the project will have a total investment capital of $3.25 billion, becoming the biggest foreign project in Haiphong city. The project is expected to launch in March and officially begin production in May this year, providing jobs for about 5,000 workers as well as meeting the housing demand of about 10,000 workers and experts. It will contribute about $5 million to the state budget annually.

$800 million Tan Phu-Dong Nai Expressway to be built in 2021-2025 under PPP model

The Tan Phu (Dong Nai) – Bao Loc (Lam Dong) Expressway project with a total investment of approximately VND18.2 trillion ($791.3 million) (excluding bank interest rates) will be built in 2021-2025 under the public-private partnership (PPP) format.

The project will feature a roadway with the length of about 67km, and four lanes belonging to Dau Giay-Lien Khuong Expressway.

Accordingly, the PM agreed to assign the People’s Committee of Lam Dong province to be the competent agency organising the implementation of the expressway project in 2021-2025 under the PPP model.

The People’s Committee of Lam Dong province will take the helm in organising the mobilisation of financial resources according to current regulations.

The roughly estimated total investment (excluding interest rates) is about VND18.2 trillion ($791.3 million). Of this, the investorswill arrange about VND9.646 trillion ($419.4 million), while around VND8.554 trillion ($317.9 million) will be sourced from the public budget, including around VND4.227 trillion ($183.8 million) from the provincial budget, and approximately VND4.227 trillion ($183.8 million) arranged by the central government.

The Tan Phu-Bao Loc section of the Dau Giay-Lien Khuong route is in the development plan of Vietnam’s expressway network in the period of 2021 with a vision to 2030, which has been approved by the PM in Decision No.326/QD-TTg dated March 1, 2016.

This project marks an important milestone for economic development in Lam Dong province as well as in the Central Highlands region.

The early implementation of the project is slated to solve the largest bottleneck of Highway 20, the dangerous section passing Bao Loc pass. This area is often affected by extreme weather and has remained unresolved for a long time.

The PM also asked the Ministry of Planning and Investment to coordinate with the Ministry of Finance and the Ministry of Transport to comment on the arrangement of the central budget in the period of 2021-2025.

Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR

The STARSHIP URSA of Marshall Island

Vietnam welcomed two foreign commercial vessels, STARSHIP URSA of Marshall Island and CMA CGM J. ADAMS of Malta, to ports in Ho Chi Minh City and the southern province of Ba Ria – Vung Tau on February 12, the first day of the Lunar New Year, according to the Vietnam Maritime Administration (VINAMARINE).

A representative from the authority said in the first months of 2021, the maritime industry has recorded strong growth.

Despite difficulties posed by the COVID -19 pandemic, Vietnam still recorded impressive growth in trade, especially exports to Europe and America, because of the high demand from these markets.

The increasingly modern and comprehensive seaport infrastructure and transport system have also created a momentum for the maritime industry’s development.

The operation of deep-water seaports will promptly replenish container berth infrastructure to serve the growing demand of customs clearance

In order to meet the increasing cargo transportation demand in recent times, VINAMARINE has directed sea port authorities to coordinate with State management agencies to speed up the processing of administrative procedures for ships.

It has also worked with management agencies of ports and shipping companies to develop marine safety plans to allow port calls by large ships./.

First dragon fruit lot exported to China in new Lunar Year

Some 190 tonnes of dragon fruits were shipped to China through Kim Thanh II International Border Gate in the northern province of Lao Cai on February 12, the first day of the lunar New Year.

According to the Lao Cai Border Gate Customs Sub-Department, the lot, the first to be exported to China in the lunar New Year, was worth 2.8 billion VND (121,512 USD).

Departing from the Mekong Delta province of Long An, the lot was transported through the border gate in a safe manner with quick customs clearance and strict implementation of preventive measures against COVID-19 pandemic.

In 2020, 1.15 billion USD worth of goods was transported through Kim Thanh International Border Gate, including 606 million VND worth of exports. In the year, 337 million USD worth of dragon fruits were exported to China through the gate./.

Vietnam maintains stable exports to Israel in 2020

Vietnam earned an estimated 700 million USD from exporting goods to Israel in 2020 despite difficulties and obstacles posed by the COVID-19 pandemic, according to the  Vietnamese Trade Office in the Middle East country.

The figure showed a slight reduction from 774 million USD reported last year. This is said to be a positive result in the context that the Israeli market witnessed fluctuations, disturbances and difficulties amid political instability and negative impacts from the pandemic.

Notably in November last year, Vietnam’s export value to Israel surged by 27.2 percent compared to the previous month, reaching 51.04 million USD.

Turnover of most key export items rose strongly in the month, with coffee up 108.6 percent, footwear (35 percent), phones and accessories (31 percent), and textiles and garments (21.4 percent) cashew nuts (16.9 percent), and seafood products (3.3 percent).

Israel, with a population of only 9.3 million, is the third largest export market of Vietnam in the Middle East, after the United Arab Emirates (UAE ) and Turkey./.

Khanh Hoa’s tourism sector looks forward to rebound in 2021

The COVID-19 pandemic has costed Khanh Hoa province a negative growth of 10.5% and budget collection shortage of over 25%. Tourism is the hardest hit sector in the locality. The locality has sped up several stimulus programmes to rock the market in the coming time.

In the coming time, Khanh Hoa province looks to introduce stimulus tourism packages and new tourism products and services to attract visitors. In the instant future, it has deployed a contest for new logo and slogan for Khanh Hoa’s tourism sector to renew the province’s image in visitors’ eyes.

COVID-19 vaccines have sparked hope of economic recovery globally, especially in tourism industry. Khanh Hoa province, whose spearhead economic sector is tourism, is also looking forward to a big rebound in 2021./.

Bamboo Airways announces pre-tax profits of over 17 million USD

Bamboo Airways has recently announced its pre-tax profits of over 400 billion VND (17.38 million USD) in 2020, up 34 percent year-on-year.

The airline attributed the profit to the favourable conditions thanks to the Government’s drastic and effective pandemic prevention and control measures, and its own proactive and prompt solutions to overcome difficulties.

It is currently operating nearly 30 aircraft, including the most modern types such as Boeing 787-9 Dreamliner, A321NEO ACF and Embraer E195. The fleet is expected to reach 50 this year.

Last year Bamboo Airways transported a total of over 4 million passengers, up 40 percent in the numbers of flights and passengers against those of 2019.

HCM City aims for 33 million tourists in 2021

The southern largest economic hub of Ho Chi Minh City has set a target of welcoming 33 million tourists with total revenue of more than 4.3 billion USD in 2021.

Some notable events include the 8th HCM City Ao dai Festival and HCM City Tourism Day, along with tours at old Sai Gon’s relics.

Last year, the city’s tourism market suffered greatly from the COVID-19 pandemic. The total number of international visitors to HCM City in 2020 was 1.3 million, down 84.8 percent year on year, while the number of domestic travellers to HCM City was 15.8 million, a decrease of 48.4 percent year on year.

Total tourism revenue was estimated at nearly 3.7 billion USD, down 39.6 percent compared to 2019./.

Vietnam gains cassava export growth in 2020

Vietnam gained growth in the export of cassava chips and cassava-made products in 2020 despite the COVID-19 pandemic, according to the Department of Agricultural Product Processing and Market Development.

Exports last year reached 2.76 million tonnes, earning 989 million USD, an increase of 9 percent in volume and 2.4 percent in value compared to 2019. However, the average export price of those products reduced by 6 percent to 358.3 USD per tonne year on year.

In December alone an estimated 330,000 tonnes with a value of 118 million USD were exported.

Impacts of the COVID-19 pandemic did cause problems for the cassava production industry according to the department under the Ministry of Agriculture and Rural Development, but it was still one of the few agricultural products with a positive growth in export value.

The exports of cassava chips in 2020 reached 640,000 tonnes, earning 139 million USD, up 60 percent in volume and 75 percent in value over the same period last year. The average export price for this product reached 217 USD per tonne, up 10 percent.

Tapioca export was estimated at 2.1 million tonnes with a value of 850 million USD, down 1 percent in volume and 4 percent in value over the same period in 2019. Its average export price reached 401 USD per tonne, down 4 percent.

According to the department, China was the largest export market with the total volume of cassava chips and cassava-made products reaching 1.9 million tonnes, earning 772 million USD. That’s an increase of 11.5 percent in volume and 2.7 percent in value compared to 2019.

Taiwan and Malaysia were also two other largest export markets of Vietnamese cassava with the growth in export value of 15 percent and 3 percent year on year, respectively, in the first 11 months of 2020.

In China market, Vietnam is currently the second largest supplier of both cassava chips and tapioca, according to China’s General Department of Customs./.

Online trade promotion helps businesses adapt to COVID-19

The spread of COVID-19 around the world created difficulties for businesses in promoting their products and seeking new customers but many were prompted to change trade promotion strategies and adapt.

Bui Thi Thanh An, Vice Director of the Trade Promotion Agency at the Ministry of Industry and Trade, said nearly 50 national-level trade promotion programmes were cancelled or postponed last year due to the pandemic.

This had a major effect on export activities and the economy in general, she said.

To address the situation, the agency has sped up the introduction of information technology (IT) and changed how trade promotion activities are held.

Since March when COVID-19 spread globally, the agency has changed all trade promotion activities to online. More than 500 international online trade conferences have now been organised, along with more than 1 million online trade exchanges.

These events helped connect more than 2,000 businesses with foreign partners in different markets, An said.

The agency has also coordinated with foreign customers based in Vietnam, such as AEON and Central Group, to organise special “weeks” featuring Vietnamese products, through which many goods have been selected for sale in foreign-owned supermarket chains around Vietnam and then headed to foreign markets.

It has also made use of social networks and Vietnamese trade offices abroad to support businesses seeking markets, An added. Such efforts contributed to maintaining export growth and speeding up economic recovery, while helping enterprises remain updated on market developments, trends, and demand, she added.

Though online trade promotions have become more common since the pandemic broke out and were initially considered just a temporary solution, experts and enterprises agree that they will now become a key part of the trade promotion ecosystem.

Vietnam’s economy is heavily reliant upon exports, so the country must adapt to sudden disruptions to international trade. Taking advantage of IT platforms to seek trade opportunities is considered the most feasible option at this time.

Zacharie Blondeau, Sourcing Director at Source of Asia, said business-to-business (B2B) is the most effective method of connection, but in certain contexts, such as pandemics and travel restrictions, businesses should actively connect online.

An underlined that even after COVID-19 is fully brought under control, online trade promotions will continue to be organised.

The Trade Promotion Agency is developing digital technology-based platforms to create a new promotion ecosystem comprising of online trade fairs and exhibitions and online databases and origin tracing, creating the conditions necessary for enterprises to access trade promotion programmes at the lowest cost and with the greatest efficiency.

She advised businesses to regularly participate in online and direct trade exchanges, conferences, and workshops, while actively digitalising their operations by improving websites and joining large and reputable e-commerce platforms./.

Fresh impetus could spur on Vietnamese economic growth in 2021

Vietnam is capable of achieving a higher GDP growth rate than the set target of 6% in 2021, providing it accelerates reforms and draws up proper plans for economic recovery in the post-COVID-19 period, according to economist Nguyen Dinh Cung, former Director of the Central Institute for Economic Management.

Cung, who is also a member of the Prime Minister’s economic advisory think-tank, underlined the need to immediately launch stimulus packages in an effort to bolster the economy, promote the development of new sectors, and mobilise all resources for a more dynamic economy.

The country’s successful containment of COVID-19 in 2020 coupled with its recent socio-economic development achievements indicate the resilience of the national economy, especially the business resilience shown by local firms during this challenging period.

It’s the Government’s prompt response and timely support for local firms that helped the country to record several major economic achievements last year, the economist told VOV.

Cung also pointed out that while the global economy slipped deeper into recession due to COVID-19, Vietnam was one of few economies that enjoyed positive growth last year.

“The 2.91% growth rate in 2020 will create the prerequisite for the country to even beat the 6% target as set by the National Assembly for this year should the government continue with radical reforms and a thorough economic recovery plan,” said the economist.

According to Cung, 2021 is the first year Vietnam starts implementing the freshly-concluded National Party Congress’s resolution and the new socio-economic development strategy ti;ll 2030. Therefore, he expressed his belief that this year’s breakthroughs will lay a solid foundation for future socio-economic development.

The economist went on to underscore the importance of facilitating the sustainable development of the private economic sector, accelerating efforts of institutional reform, and launching new stimulus packages aimed at aiding the economy.

“Institutional reform must be stronger and more comprehensive with a focus on simplifying administrative procedures, improving the business climate, and carrying out radical reforms to raise the market level of the economy, especially the allocation and use of resources in an effective manner,” he noted.

As part of efforts to help the private economic sector develop steadily and become an important driving force for Vietnamese economic development, Cung stressed the need to make stronger transformations, liberalise the domestic market, reduce costs for enterprises, and re-allocate resources towards building a wealthy and strong nation.

The economist also called for the removal of barriers faced by businesses, whilst protecting their legitimate rights and interests, along with fine-tuning the legal system and facilitating the application of science and technology for further development.

It is essential to form and develop large private economic groups that can boast great potential and stringent competitiveness in both regional and international markets, he suggested, anticipating with the goal of having at least two million enterprises by 2030, the private economic sector can contribute between 60% and 65% to the country’s GDP by this date.

Local businesses increase production capacity for Tet

An array of local businesses have devised plans in which they offer promotions and ramp up communication activities in an effort to serve people before, during, and after the Lunar New Year festival or Tet.

A wide variety of food and beverage products at stable prices will be distributed to supermarkets, shops, traditional markets, and e-commerce channels, with an abundant supply of goods.

According to the Department of Industry under the Ministry of Industry and Trade, at present most firms operating in the processing and manufacturing industries have temporarily halted production ahead of Tet, with the exception of a few enterprises involved in the paper and cement industry. Indeed, a handful of companies will maintain a certain output throughout the holiday period due to the specific characteristics of production lines that require regular operation.

Furthermore, some businesses in other industries such as electronics and car production will still maintain operations as a part of their production lines, although they will not complete any new products.

As a labour intensive industry, garment and footwear enterprises must employ many workers from different localities throughout the country, meaning that they have to give their employees time off for the Tet holidays, according to the Government’s announced schedule. Despite being impacted by the novel coronavirus (COVID-19) pandemic, the industry still recorded positive growth compared to the same period from last year.

Most notably, the textile production index and garment production index recorded respective increases of 16.6% and 9.9% compared to the same period from last year. Indeed, textile and garment export turnover in January was estimated to be US$2.6 billion, an annual rise of 3.3%, while footwear export turnover of all kinds in January hit an estimated US$1.8 billion, up 26.4% over the same period from last year.

Electronic businesses are therefore catching up with the trend of shifting production from multinational electronic corporations, thereby opening up plenty of opportunities to participate in the global supply chain.

By January, the domestic electronics industry had grown by 38% compared to the same period from last year. As such, local electronic businesses will take Tet holidays according to the schedule announced by the Government and will not have to maintain continuous production over Tet.

With regard to fertilizers, due to the preparation for cultivation in the Winter-Spring crop over the first days of the Lunar New Year, the price of various fertilizers tends to increase. Providing that the total amount of fertilizer meets demand and there is no shortage of goods, there will also be no price hike.

Moreover, the power supply to the national power system has come up with a plan to ensure that there are no problems in the power source and grid, especially before, during, and after Tet.

Milk consumption to grow by 7% this year: securities brokerage

Milk consumption is expected to increase by 7 per cent this year, analysts at SSI Securities Corporation have said.

They said it is based on a baseline scenario that assumes the pandemic would be controlled by mid-year and there would be no more social distancing.

They also forecast the prices of existing SKUs (stock keeping unit) would not increase this year.

But they admitted demand among low-income consumers could be impacted given the fact that COVID-19 has hurt them, and companies like Vinamilk and Vinasoys have seen downtrading in the first nine months of last year.

In contrast, premiumisation would continue as middle- and high-income groups are less impacted, and are more open to consuming higher quality dairy products, they said.

“We assume dairy raw material prices will increase by 4 per cent in 2021. Also, higher oil prices in 2021 are likely to affect packaging and shipping costs.”

The study also found that investors are paying more attention to environmental, social and governance criteria when investing in dairy companies.

As a result, the sector has begun to diversify its products, including shifting to plant-based beverages.

According to market research company Euromonitor, the dairy industry was worth VND135 trillion (US$5.84 billion) last year, an increase of 8.3 per cent from 2019, thanks to the rapid growth in the yogurt and fresh milk segments.

Currently, modern distribution channels only account for 10-15 per cent of dairy sales, but analysts expect it to outpace traditional channels.

Recognising the trend, companies are now focusing on the former, they said.

But according to SSI, it would mean lower profit margins due to the fierce competition between a multiplicity of brands.

The dairy industry is expected to see more M&A deals this year after a number of them involving leading companies took place last year, such as Vinamilk’s acquisition of a controlling stake in Moc Chau Milk and the acquisition of IDP by investment consultant Blue Point and asset management firm VietCapital.

Both acquired companies saw profits skyrocket after the deal.

Moc Chau’s net profit grew by 68 percent year-on-year in the first nine months of 2020 and IDP’s was up nearly 34 per cent.

There is fierce competition in the market with the appearance of new players, the SSI report said, adding that Masan Group has recently launched new dairy products, B’fast cereal milk, while Vitadairy has been expanding rapidly in the powder milk segment.

Saigon Hi-Tech Park seeks to attract investment in tech, supporting industries

The Saigon Hi-tech Park will create favourable conditions to attract investment in the tech and supporting industries this year, its head has said.

Dr Nguyen Anh Thi, head of the board of management of Saigon Hi-tech Park (SHTP), said the park has this year set an FDI target of US$200 million.

It recently issued investment registration certificates to two major hi-tech projects.

They include $19.5 million by US company Arevo to manufacture 3D-printing machines and carbon fibre and nanotube-reinforced polymers for 3D printing and provide software services.

Korea’s SNST and Finger Vina have invested $1 million to produce high quality integrated circuits.

Last year Hong Kong company TTI, Inc., a wireless industrial electrical equipment manufacturer, invested $650 million in the park and is looking for local suppliers to increase its use of local parts.

It plans to set up a plant and an R&D centre with the intention of making Viet Nam its new manufacturing base.

It wants to increase investment in manufacturing for export, while simultaneously developing German-standard training schools to improve the quality of the Vietnamese engineering workforce.

It is set to encourage companies to relocate to Viet Nam to join its supply chain.

The plant will manufacture hand-held power tools with integrated technology for designing and manufacturing control devices, electronic transformers, mechanical engineering products, and others.

As part of its efforts to attract investment, the park has organised high-tech supporting industry development programmes to help local firms link up with lead firms, through business matching activities between foreign and Vietnamese enterprises, and with export processing zones and industrial parks around the country.

The park has also developed 162,000sq.m of high-rise factories for local firms in supporting industries, according to Thi.

Hua Quoc Hung, chief of the HCM City Export Processing and Industrial Zones Authority (HEPZA), said his agency has set an investment target this year of $550 million in industrial parks and export processing zones.

Science and Technology Park

Speaking at a recent meeting Thi said the park would focus on building a ‘world-class’ science and technology park.

It has a vision of laying the foundation for development of high-tech industries in HCM City, he said.

“We aim to create an environment to improve the quality of human resource training as this is the most important factor in production.”

He said it is important to enhance links between educational institutions, businesses and the park.

In the last 20 years various types of science and technology park models have sprung up globally such as innovation centres, incubation centres, innovation towns, and public science and Al technology urban areas.

In 2011 the city began consulting experts for building the park at a cost of more than VND4.3 trillion ($185 million).

The new park will tie up with educational and research institutes as part of a city programme to improve the quality of human resources, especially in new technologies.

Central city to develop hi-tech supportive industries

Plans are in the pipeline to build an industrial park in Da Nang dedicated to supportive industries.

It is part of the Government’s master plan of industrial park development from 2030-2045.

It will be built on the edge of the Da Nang Hi-Tech Park.

Head of the city’s Hi-Tech park and the Industrial Zones Authority (DHPIZA), Pham Truong Son said the decision was signed by Deputy Prime Minister Trinh Dinh Dung, and the 58.5ha supportive industries park will offer investment for domestic and foreign businesses.

Son said the supportive industry park, which is sandwiched between the Hi-Tech Park and Da Nang Information Technology Park in Hoa Vang District, has completed 85 per cent of infrastructure since 2016.

He said Da Nang has yet developed supportive industries – one of the disadvantage factors of the city in luring investment from domestic and foreign investors.

Son said the city wants to boost the development of supportive industries over the next decade.

The city has been building a development plan on three new industrial zones – Hoa Cam, Hoa Nhon and Hoa Ninh on total 880ha – for approval by the Prime Minister.

According to DHPIZA, the construction of the three new IZs would be soon commenced in 2021.

The city has called for investment for infrastructure works on the three new IZs in 2020-23 with an estimated investment capital of VND13.8 trillion (US$604 million).

The new IZs have been designed as ‘green’ and ‘clean’, and hopes to attract hi-tech and environmentally-friendly industries.

The Da Nang-based Sunshine Aerospace components manufacturer plant, which was invested by the Universal Alloy Corporation from the US worth $170 million, began operation after one year of construction in March of 2020.

Da Nang’s industrial infrastructure projects offer advantage location for investors as it boosts connection of key traffic routes including the Da Nang-Quang Ngai Expressway, the Chan May Economic Zone in Thua Thien-Hue, the Chu Lai Economic Open Zone in Quang Nam and Dung Quat Economic Zone in Quang Ngai Province.

The Hi-tech Park and IZs would be a magnet for global industrial firms and producers, offering flexible land rent, land clearance, income tax and import tax policies.

Investors with projects valued at more than $133 million will enjoy a 10 per cent tax rate for 30 years, according to DHPIZA.

Struggling shopkeepers at HCM City traditional markets learn to sell online

With traditional markets in HCM City struggling amid the COVID-19 pandemic, more and more of their shop owners are looking to sell their goods on online channels such as delivery apps and social media.

According to the management of Ben Thanh Market in District 1, most stalls except those selling fresh produce have few customers, especially handbag, clothing and handicraft shops.

Demand has dropped by 80 per cent compared to the same time last year, and around half the stalls remain closed.

An Dong Market in District 5 is suffering a 90 per cent drop despite a recent renovation that has greatly improved its appearance.

Nguyen Thanh Chau, head of the management of Thai Binh Market, said sales were down by half and some stalls that closed down had not even reopened for Tet.

Traders learn online selling

Traders in markets have been looking at selling online. Truong Thi Hue, who sells clothes at An Dong Market, said for the past two months her daughter had been showing her how to use Facebook and Vietnamese social media Zalo to sell her products.

Nguyen Thi Thai Trang, another clothes seller in the same market, said after she took part in an online Cho Lon Market fair last September, she was able to network with many businesses, including Co.opmart, which greatly benefited her business and her employees.

She has asked An Dong Market also to organise online market fairs.

Foodstuff, fruit and vegetable traders in Ben Thanh Market are selling their products via delivery service Grabmart.

Duong Thi Thanh Thuy, a confectionery seller there, said while her family business had been relying on customers and tourists over the last 60 years, she now had to make use of technology.

According to Nguyen Thi Ngoc Anh, a beo (water fern) cake seller in the market, doing business through food delivery service Now.vn boosts her income by around 30 per cent helping it survive COVID-19.

Some traders said selling online had not been profitable so far since it was still new to them, but, nevertheless, these were new channels and in the long run could be more profitable.

Ben Thanh Market is working with the District 1 Information Technology Centre to improve its website to help traders sell their goods online.

Tran Huy Cuong, director of District 5’s Centre for Economic Development and Labour Supply Assistance, said the district had organised online fairs to help traders get used to using online channels. They were also being taught how to use social media to sell their goods, take photos and write about their products, he added.

According to Associate Professor Pham Khanh Phong Lan, head of the city Food Safety Management Board, many Tet food items are being sold online, a low-cost method that limits close contact during the pandemic, but safety risks are involved since there are no checks.

While traders on large online platforms are monitored, small ones that operate on social media such as Facebook are not well monitored, and so customers should look for trustworthy sites to shop.

The city reduced shop rents in traditional markets by half for the last six months of 2020.

Pandemic reveals enterprises’ view of responsibility

The unprecedented challenges arising from the COVID-19 pandemic have highlighted more than ever the importance of responsible crisis management and sustainable development at enterprises.

Viet Nam’s successful containment of the virus significantly helped leverage the image of the country and its enterprises globally, according to Vo Tri Thanh, director of the Institute of Branding and Competition Strategy. It also confirmed the importance of corporate social responsibility (CSR) efforts, associating enterprises’ brands with social responsibility and sustainable development, he said.

“Many enterprises, not only large ones but also small and medium-sized enterprises, shared the burden with the Government and citizens during the time of crisis,” he said.

“Their sense of responsibility towards the community and society will certainly be recognised and be a very good basis for post-pandemic recovery and development.

“We saw Vietnam Airlines bringing Vietnamese abroad home, while Viettel, VNPT, and FPT lowered telecommunications fees. Electricity of Vietnam cut power prices, Hapro and Co.op Mart stabilised prices, and many other companies joined hands in the fight against COVID-19.”

In August, Vingroup gave the Ministry of Health DrAidTM software and attached devices to provide prognosis assistance in novel coronavirus treatment. The first AI software introduced helps to rapidly identify abnormalities based on upright chest X-rays in less than five seconds and adds to the accuracy of test results, reduces false negatives, and assists in enhancing treatment consistency and knowledge transfer from central-level doctors to grassroots-level doctors.

The country’s leading real estate conglomerate also donated 3,200 ventilators to the Ministry of Health to help combat COVID-19 and sponsored chemicals for 56,000 COVID-19 PCR tests in Da Nang City, Hai Phong City, and Bac Ninh Province.

Towards sustainable development

Developing sustainably, contributing to growth, and ensuring social welfare would be at the core of enterprises’ development, said Vu Tien Loc, chairman of the Viet Nam Chamber of Commerce and Industry.

“Never in history have we seen the world change so quickly and considerably,” Loc went on. “The world is changing constantly, requiring that every government, every economy, and every enterprise be resilient and innovate to keep up with the speed of change and develop sustainably.

“It is in the historic challenge of the COVID-19 pandemic that we see enterprises’ efforts to maintain jobs, restructure and prepare for recovery, and work with the Government and the community to fight the virus.”

According to Nguyen Xuan Duong, vice president of the Viet Nam Textile and Apparel Association, CSR contributes significantly to resolving social problems like the pandemic.

CSR proves that when a business cares about social issues, there will be a positive impact on its profitability, which will help increase its value and sustainability.

Hoang Ngoc Hai from the Academy of Politics Region 1, in an article published in Tap chi Tai chinh (Finance Journal) wrote that CSR should not be seen only as an action to resolve social problems for charitable and humanitarian purposes.

“CSR should be understood as a way in which a business strikes a balance between economic, environmental, and social requirements, and at the same time meets the expectations of shareholders and partners,” Hai wrote.

“It can help support enterprises’ brands and bring benefits, which contribute to creating humanistic value and building a corporate culture as well as increasing competitiveness in the context of rapid international integration.”

Still, many enterprises do not fully understand the importance and benefits of CSR, as exhibited through many committing business fraud, producing poor-quality products, and causing environment pollution to maximise profits.

According to Tran Thi Tra My from Thuong mai University (Commerce University), to have an appropriate action plan, enterprises must understand pressing social issues.

She pointed out that, in recent years, Viet Nam had faced increasing challenges in climate change and environmental pollution, which were threatening social welfare and human health as well as the sustainable development of the ecosystem. There were also difficulties in providing education and building a future for the young.

My cited a survey by the Institute of Labour Science and Social Affairs carried out on 24 garment and footwear enterprises, which found that revenue was up around 25 per cent for those with a CSR programme.

During international integration, the implementation of CSR has become a must, according to My, and will not only bring benefits to enterprises and to society but also help improve the competitiveness of enterprises and the country as a whole.

“It is necessary to develop mechanisms and policies to support enterprises in implementing CSR initiatives,” she said.

Construction firms urged to apply technology to improve efficiency

The impacts of the COVID-19 pandemic and Industry 4.0 required construction firms to invest in technology to improve efficiency.

According to the Ministry of Construction, more than 1,500 enterprises operating in the construction industry completed dissolution procedures in 2020, demonstrating that the COVID-19 pandemic had negative impacts on the operation of these companies, although the Government lowered banking interest rates last year to aid enterprises.

Another problem was that input costs increased significantly while real estate prices did not see a corresponding increase, which also affected operation efficiency.

The ministry said that the real estate market was showing signs of recovery but the recovery was not taking place as rapidly as expected. In addition, legal problems at a series of property projects were causing stagnation in construction.

Large firms also encountered difficulties.

Nguyen Xuan Dong, general director of Vinaconex Corporation, said that the company’s revenue in 2020 fell by 42 per cent against the previous year, in which construction revenue dropped by 45 per cent and real estate business by 86 per cent.

Economic expert Can Van Luc said that the Vietnamese economy expanded at three per cent in 2020 despite the impacts of the COVID-19 pandemic, higher than the world’s average.

The gross domestic product (GDP) growth rate in the 2018-19 period averaged around 6.8 per cent, forecast at 6.5-7 per cent in 2021 and seven per cent on average in the next 10 years. The positive economic prospects would fuel the development of the real estate market and provide opportunities for construction enterprises to expand operation and enhance efficiency in the future, Luc said.

According to Cao Van Ban from the Viet Nam Association of Construction Economy, the macroeconomic situation and the positive prospects for real estate market recovery were opening new opportunities for construction companies to develop but also bringing challenges and new requirements.

Ban said that constrution firms must raise solutions to speed up construction progress, lower costs and improve quality.

“The most important thing to construction companies at the moment is to take advantage of science and Industry 4.0 to create breakthroughs,” Ban stressed.

For State-owned construction enterprises, it was necessary to strengthen restructuring and renovation through privatisation to improve efficiency, he said.

Renovating technology is an unavoidable trend, not only for construction enterprises.

The Prime Minister in late January issued a national technology renovation programme to 2030 which set the target that the number of enterprises renovating technology increases by 20 per cent per year on average.

Investment booms as Soc Trang improves business climate

Soc Trang Province’s efforts to improve its business climate is paying off with more and more investors, both domestic and foreign, coming since 2016.

It has worked with hundreds of potential investors seeking to invest in areas where the province has strengths like hi-tech agriculture, tourism and wind and solar power.

It approved 116 projects with a total investment of VND27.3 trillion (US$1.18 billion) in 2016-20, 5.5 times the amount in the previous five years.

Nine of them are FDI projects.

Soc Trang authorities have been making efforts to improve the investment climate and provincial competitiveness by focusing on infrastructure and providing lands for projects.

They are keen on projects that are sustainable and environment-friendly.

Nguyen Thi Thuy Nhi, deputy director of the province’s Department of Natural Resources and the Environment, said her department had been reforming administrative procedures, boosting the province’s competitiveness in terms of attracting investment and business climate.

One key infrastructure project is the upgrade of Tran De deep-water port, which will reduce logistics costs for exports from the Mekong Delta.

The recently approved Chau Doc – Can Tho – Soc Trang highway will connect to the port, aiding goods transportation and improving links with the rest of the country.

The province is also creating a start-up eco-system with development assistance, incubation programmes and sponsorship for creative small and medium-sized businesses.

In the last five years 1,900 new businesses were set up, a 47.2 per cent increase from 2011 – 15. Many companies have invested in manufacturing in the An Nghiep Industrial Park, creating tens of thousands of jobs.

In 2021 – 25 Soc Trang seeks to further improve its business climate and competitiveness, focusing on business assistance services, labour training and helping investors start projects smoothly.

There are 3,300 registered businesses in the province with a total charter capital of VND33 trillion.

Soc Trang’s economy grew by 6.75 per cent in 2020.

Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR

Logistics, considered a backbone of Vietnam’s economy, is among eight sectors prioritised by the national programme for digital transformation until 2025.

According to the Vietnam Logistics Business Association (VLA), the sector has grown 14-16 percent annually over recent years. It now gathers together some 3,000 domestic firms and 30 others offering transnational services.  Of those, 89 percent are domestic businesses and 10 percent are joint ventures while the number of foreign-funded companies represents just 1 percent of the total.

The VLA said the cost of logistics in Vietnam as a proportion of GDP is 18 percent, compared to 9-14 percent in developed countries. The high cost is attributable to limited sea port infrastructure and weak cost reduction efforts. Together with fierce competition, the digital economic boom, and pressure from the COVID-19 pandemic, these have made digitisation in the sector a must.

Vietnamese logistics companies offer between 2 and 17 services, mostly in transport, warehousing, and fast delivery. About half apply technology in their operations.

Nguyen Tuong, VLA Deputy General Secretary, said investment shortages from the very beginning, difficulties in choosing suitable technological applications, a sense of distrust in technology, and a fear of change are hindering the sector from pressing ahead with digital transformation.

Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade at the Ministry of Industry and Trade, said transformation in this core sector would trigger a similar process in other parts of the supply chain.

Experts have said that smart logistics involve master plans and strategies with the involvement of cloud computing technology, adding that it will be conducive to improving customer services, information flows, and automation.

To reduce logistics costs, Nguyen Hoang Long, Deputy General Director of the Viettel Post Joint Stock Corporation, said the engagement of both the Government and enterprises is needed. While the Government should offer planning and assistance for the building of national logistics centres, as well as preferential land and port taxes, enterprises need to invest in better management and boosting connectivity within the sector, he said.

Administration reform and capital support are also necessary for logistics firms undertaking digital transformation, insiders have said./.

US removes anti-dumping duty on Minh Phu frozen shrimp

The Minh Phu Seafood Joint Stock Company announced on February 17 that US Customs and Border Protection (CBP) has cancelled a decision issued on October 13, 2020 on the imposition of anti-dumping tariffs on the company’s frozen shrimp products exported to the US.

Its CEO Le Van Quang said the latest CBP decision allows Minh Phu to continue exporting frozen shrimp to the US without being subject to an anti-dumping duty imposed on shrimp from India or any other anti-dumping duties.

Minh Phu has also been refunded anti-dumping duties it temporarily paid under the October 13 decision, Quang added.

The CBP had applied the Enforce and Protect Act (EAPA) to conclude that frozen shrimp products exported by Minh Phu to the US should be subject to duties in accordance with the anti-dumping order imposed on shrimp from India. It said the company did not provide sufficient evidence as requested by the CBP to prove that it was not using shrimp originating from India for export to the US.

Minh Phu decided to send an administrative complaint to the CBP’s senior agency, because the decision ignored key evidence that it had an effective traceability system and was not using raw shrimp from India for exports to the US.

In fact, Minh Phu clearly demonstrated its separation and traceability method approved by the National Oceanic and Atmospheric Administration (NOAA) under the US Department of Commerce, based on its requirements for the Seafood Import Monitoring Programme.

Minh Phu successfully applied and effectively operated a high-tech shrimp farming model at its two farming areas of Minh Phu Kien Giang on 600 ha and Minh Phu Loc An on 300 ha. It has also been establishing a network of shrimp suppliers across the Mekong Delta and Vietnam’s south that use diverse models of sustainable shrimp farming./.

HCM City sees sharp fall in number of tourists

Ho Chi Minh City recorded 1,800 visitors booking hotel rooms during the Lunar New Year (Tet) holiday from February 9 to 17, the municipal Department of Tourism reported after summarising figures from 22 of the 124 local 3 to 5-star hotels.

Tourists numbers were down sharply compared to Tet last year, primarily due to the COVID-19 outbreak right before the holiday.

Recognising that many people had decided not to return to their homeland because of the pandemic, many travel companies offered various short tours to nearby safe destinations.

Department Director Nguyen Thi Anh Hoa said it coordinated with accommodation providers to manage those coming from pandemic-hit regions while strictly implementing safety standards for COVID-19 prevention and control.

Providers were also asked to ensure guest safety by applying the Ministry of Health’s message featuring 5K (in Vietnamese) Khau trang (facemask)- (Khu khuan) disinfection- (Khoang cach) distance- (Khong tu tap) no gathering – (Khai bao y te) health declaration.

Analysts have forecast that fluctuations will be seen in the number of visitors to local accommodation providers this year, which are posting occupancy of less than 10 percent./.

Hapaco eyes investment in 4-trillion-VND wind power project

The Hapaco Group JSC is planning to invest 4 trillion VND (174.1 million USD) in a wind power project in the Central Highlands province of Gia Lai.

The project is among those to be submitted for approval at the group’s annual shareholders’ meeting, which is slated for March 14.

The meeting will also discuss an investment in building a 23-ha care centre for the elderly in the northern city of Hai Phong’s Thuy Nguyen district as well as Hapaco’s new development orientations in social housing and guest worker services.

Hapaco (stock code HAP) was one of the first listed on Vietnam’s stock market. As of December 31 last year, its total asset exceeded more than 808 billion VND.

Last year, the group reeled in 335 billion VND in revenue, an annual decrease of 11 percent. Its after-tax profit, meanwhile, hit 34.3 billion VND, up 69 percent on-year./.

HCM City: Consumer prices see slight rise after Tet holiday

Consumer prices in Ho Chi Minh City showed slight fluctuations on February 16, or the fifth day of the new lunar year and the last day of the Lunar New Year (Tet) holiday, with most traders in wet markets resuming business.

It is noteworthy that prices of fresh vegetables and fruit increased remarkably compared to before Tet, as consumers tend to buy more of those goods after feasting during the holiday.

Reports of the Thu Duc wholesale market said supplies of vegetable, fruits and flower are abundant at stable prices.

Besides wet markets, most supermarkets, convenience stores and shopping centres in the city are scheduled to re-open on February 17, ensuring supplies of goods when residents return to the city after the holiday.

In the context of unpredictable developments of the COVID-19 pandemic in the city and the country, businesses in HCM City have stocked 57.5 million facemasks and 3.39 million bottles of hand sanitizer to meet epidemic prevention demands./.

Brand building – key to add value to business

Vietnam enterprises need greater efforts to build their brand names so as to better competitive edge amidst rapid integration, according to experts.

According to the Ministry of Industry and Trade’s Trade Promotion Agency, although the number of businesses honoured with the Vietnam National Brand increased throughout years (from 30 in 2008 to 124 in 2020), it lagged behind expectations.

Deputy head of the agency Hoang Minh Chien said the Vietnam National Brand (Vietnam Value) Programme has raised awareness of many local firms and corporations of the important roles of brand name in improving value of their products and the businesses themselves.

It is difficult to develop Vietnam brand for specific products, he said, adding despite being the world’s leading agro-forestry-fisheries exporter, Vietnam lacks in branded products in its shipments.

Up to 80 percent of Vietnamese agricultural exports are yet to have brand name. Many exports in the nation’s “one-billion USD” club such as timber, rubber, pepper and cashew nuts have not their own brand names yet, according to agricultural specialist Hoang Trong Thuy.

Chairwoman of the Ngan Ha Science and Technoloy Company Limited Pham Thi Kim Loan said a good brand is developed from good-quality products as well as fine customer service and marketing strategies.

Meanwhile, Chairman of the Advice Council to the Institute for Brand and Competitiveness Strategy Nguyen Quoc Thinh stressed that besides financial resources, businesses need dogged determination and in-depth knowledge of brand building.

Chien said the Ministry of Industry and Trade will accompany enterprises to develop and popularise their brand names, adding focus will be sharpened on raising public awareness of brand development, helping businesses to satisfy criteria of the Vietnam National Brand Programme, and introducing the brands to domestic consumers and international partners.

According to the Brand Finance, value of the Vietnam Nation Brand skyrocketed 175 percent from 141 billion USD in 2016 to 319 billion USD in 2020. The country also jumped 17 places from 2016 to 33rd in the list of the world’s 100 most valuable brands compiled by the UK consultancy./.

Ninh Binh strives to host 7 million visitors in 2021

Ninh Binh  has launched promotion activities on social networks, among other activities.It is also working with the provincial tourism association to mobilise travel agencies’ engagement in demand stimulus activities and increase service quality.

Ensuring related security and order, environmental sanitation, and COVID-19 prevention and control are also key tasks, noted the official.

According to statistics from the department, during the recent three-day New Year holiday, the province received more than 32,000 visitors. Most of them went to local renowned destinations like Trang An Landscape Complex – a world cultural and natural heritage site, Cuc Phuong national park, and Van Long submerged natural reserve.

In 2020 the province hosted 2.8 million tourists, equaling to just 37 percent of the 2019 figure. The reduction was largely due to the impact of the pandemic./.

Kien Giang promotes border trade infrastructure connectivity with Cambodia

The southern border province of Kien Giang has facilitated the implementation of a memorandum of understanding on border trade infrastructure development and connectivity between Vietnam and Cambodia.

Ha Tien city and Giang Thanh district have been asked to build a list of border trade infrastructure items, with priority given to connectivity with Cambodian localities, according to the Vice Chairman of the provincial People’s Committee Nguyen Duc Chin.

Kien Giang has also supported trade promotion and the attraction of investments in border trade infrastructure construction.

Local competent agencies have taken measures to simplify administrative procedures in order to make it easier for traders and border residents in customs clearance.

The province has effectively implemented cooperation agreements with Cambodian localities and joined hands with the Cambodian side in national defence as well as external affairs in border areas./.

Kien Giang moves to promote marine economic growth

The Mekong Delta province of Kien Giang has planned to further promote sustainable marine aquaculture in line with the “Strategy for the Sustainable Development of Vietnam’s Marine Economy by 2030 with a Vision to 2045”.

Local leaders said the province will fully tap its potential and advantages to promote marine aquaculture in a modern manner in connection with tourism development, while ensuring the environment and national defence and security at seas and islands.

The plan aims to contribute to accelerating the restructuring of agriculture, promoting marine economic growth, and improving competitiveness and local incomes.

It aims to have 7,500 farming cages by 2025, including 4,700 traditional fish cages, 1,900 hi-tech fish cages, and 900 cages for breeding other seafood.

The water surface areas for cage farming and mollusc farming are expected to reach 7,000 ha and 24,000 ha, respectively.

The farming yield is to reach 113,530 tonnes and be worth 7.54 trillion VND (327.6 million USD), including 29,870 tonnes from cage farming and 83,660 tonnes from mollusc cultivation. The sector is forecast to employ 18,510 workers.

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.

Local authorities must also fully tap the potential and effectively use the sea for farming, towards promoting agricultural economic restructuring, increasing productivity and output, and ensuring food hygiene and safety.

The locality has worked hard to create more jobs and improve incomes in coastal communities and those on islands, cut inshore fishing activities, preserve the environment, and minimise activities that deplete natural aquatic resources.

It aims to develop marine farming at an industrial-scale using modern technologies that can produce a large volume of products for both export and domestic demand.

The province also attaches special importance to promoting links and cooperation in producing raw materials, processing and consuming aquatic products, ensuring food hygiene and safety, and protecting the environment, contributing to protecting and regenerating aquatic resources and preserving biodiversity.

It has synchronously implemented solutions on land and water surface areas for marine farming, and mechanisms and policies to boost production and attract investors to high-tech aquaculture.

The locality has also paid heed to applying credit and incentive policies to support aquaculture development and high-tech agriculture, as well as to improving the quality of human resources in the sector./.

Lao Cai aims to welcome 5 mln visitors this year

The northern province of Lao Cai, home to the popular holiday town of Sa Pa, has set a target of welcoming 5 million visitors this year and earning more than 696 million USD in tourism revenue.

The province will exert efforts to attract more domestic holidaymakers.

Sa Pa has long been among the country’s leading destinations. Of note, young people accounted for more than 70 percent of tourist arrivals to the town in 2020.

Lao Cai also aims to devise 130 new tourism products to meet demand from tourists and encourage them to return in the future.

Lao Cai’s tourism sector bore the brunt of the ill-effects of the pandemic and welcomed just 2.2 million visitors last year, down by more than half against 2019./.

Opportunities forecast for Vietnam’s economy in 2021: experts

Apart from challenges, many opportunities will be offered to the Vietnamese economy in 2021, experts have said.

Such agreements as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) to which Vietnam is a signatory will open up wide doors for the country to further integrate into the world.

Economist Nguyen Minh Phong forecast that Vietnam’s agriculture, industry, export-import, and the domestic financial, stock and real estate markets will grow further in the year.

Notably, with the current growth rate of the local processing sector, Vietnam would join the group of newly-emerging industrialised countries in the coming years.

Pham Dinh Thuy from the General Statistics Office said that the GDP growth target of 6.5 percent set by the Government is feasible in the normal situation. However, this would be a challenge for the country as 2021 is the first year of implementing the 2021-2025 socio-economic development plan.

The official pinned hope on the development of such sectors as food, garment-textile, wood processing, metal production, construction and electricity production.

To achieve the set economic targets, it is a must to contain the COVID-19 pandemic, he said, suggesting stepping up economic restructuring, churning out typical products, streamlining administrative procedures, improving the domestic investment environment, and improving the country’s competitiveness.

Thuy also highlighted the significance of trade promotion and foreign investment attraction, which, he said, needs specific plans.

Pham Viet Hoai, Chairman of Kym Viet JSC, said the application of digital technology would bring about positive results to any firm.

According to Deputy Minister of Planning and Investment Tran Duy Dong, after the PM adopted the national digital transformation programme, many sectors have reaped significant outcomes, benefiting people and the entire economy.

Digital transformation is vital as it helps enterprises improve their business governance and adapt to the latest changes in technology, market and consumer taste, he said./.

Exports from six ASEAN countries drop only 2.2 pct despite pandemic: JETRO

Exports from six Southeast Asian countries fell 2.2 percent in 2020 from a year earlier to a combined 1.35 trillion USD, a relatively marginal decline despite COVID-19, according to data from the Japan External Trade Organisation (JETRO).

Of the six, only Vietnam posted an increase in exports for the year, up 7 percent to 282.66 billion USD, with a 5.2 percent drop to Japan more than offset by a 25.7 percent rise to the US and an 18 percent expansion to China.

Meanwhile, the Philippines logged a 10.1 percent fall in exports last year, followed by a contraction of 6 percent in Thailand, 4.1 percent in Singapore and 2.6 percent each in Malaysia and Indonesia.

The combined trade surplus of the six ASEAN members more than triple to 133.66 billion USD, as easing energy prices and shrinking domestic demand led to steeper declines in imports than exports.

Thailand’s trade surplus surged 144.5 percent, compared with an increase of 83.5 percent for Vietnam, 43.9 percent for Singapore and 25.6 percent for Malaysia.

The Philippines narrowed its trade deficit by 46.3 percent to 21.84 billion USD. Indonesia chalked up a trade surplus of 21.74 billion USD, a turnaround from a deficit of 3.6 billion USD in 2019.

Singapore accounted for 27.4 percent of the six countries’ total trade by value in 2020, followed by Vietnam at 21.3 percent, Thailand at 17.1 percent, Malaysia at 16.5 percent, Indonesia at 11.9 percent and the Philippines at 5.8 percent./.

Central Da Nang city to build duty-free zone

Da Nang’s authorities are building a detailed plan for the city’s first international duty-free zone and smart urban area for investors, with construction set to commence soon as the Import-Export Pan Pacific Group (IPPG) has asked the city to allocate land for the project.

Director of the city’s Investment Promotion Agency Huynh Thi Lien Phuong told Vietnam News that the project had been finalising the city’s first international standard downtown duty-free zone and factory outlet centre.

Lien said the city would offer the best conditions for the investor to start the project.

She said the city also planned a downtown free-duty shop at the coastal crown plaza in Ngu Hanh Son District to seek investment.

In 2019, IPPG proposed the project with an investment of 434 million USD, but an appropriate land area was yet to be offered.

In 2018, chairman of the group, Jonathan Hanh Nguyen, urged the city to build a third terminal to ease congestion and design an international standard duty-free zone and recreational area to funnel tourism towards Hoi An, Hue and Da Nang.

He said Da Nang would be a new location for a luxury shopping centre for future development and investment attraction.

Da Nang has been designing the 1,100ha Hi-Tech Park as Vietnam’s ‘Silicon Valley’ to earn revenue of 1.5 billion USD each year with 25,000 jobs and a satellite city of 100,000 people after 2023.

The US-based aviation firm Universal Alloy Corporation (UAC) put the Sunshine Aerospace Components Factory into operation in the first phase in 2020.

The Republic of Korea’s LG Electronics also debuted its research and development (R&D) centre – the second in Vietnam – at the Da Nang Information Technology Park Tower

CMC Corporation, the second-largest information and communications technology (ICT) group in Vietnam, plans to build the Da Nang-based CMC creative space – a digital hub in the Asia-Pacific region – with an estimated investment of 522 million USD.

To date, Da Nang has 876 foreign direct investment projects worth a total of 3.52 billion USD./.

More trade remedy probes predicted for Vietnamese enterprises this year

The Ministry of Industry and Trade (MoIT) is set to bolster action while Vietnamese enterprises have been recommended to gear up preparations as more trade remedy investigations are expected in 2021.

Vietnam’s participation in 14 free trade agreements (FTAs) has helped fuel its trading activities.

MoIT data shows that export turnover boomed from 15 billion USD in 2001 to nearly 100 billion USD in 2011 and then 281.5 billion USD in 2020. The figure is expected to rise 4-5 percent this year.

Sharing the same upward trend in exports, however, is the number of trade remedy cases instigated against Vietnamese goods.

Vietnamese exports, including major foreign currency earners like shrimp, tra fish, steel, and wooden products, have been subject to nearly 200 trade remedy cases so far.

The country has successfully dealt with about 43 percent of cases, thus ensuring the continued export of basa fish and shrimp to major markets like the US and the EU at zero percent or very low tariffs.

It has also launched 19 trade remedy probes itself into imported goods, including steel, chemicals, plastics, fertiliser, monosodium glutamate (MSG), and sugar.

Chu Thang Trung, Deputy Director of the MoIT’s Trade Remedies Authority of Vietnam (TRAV), said trade remedies are appropriate policy tools that the WTO recognises and permits its members to use in international trade.

WTO figures show that more than 4,500 trade remedies have been applied by members since the organisation was established in 1995. Such measures are clearly not an abnormal phenomenon, Trung said.

Vietnam’s membership of many FTAs has sped up the removal of tariff barriers on its exports, giving its goods a greater degree of competitiveness in import markets. It has also put more pressure on producers in importing countries, forcing them to use legal trade policy tools to protect their interests, including trade remedies, the official added.

TRAV Director Le Trieu Dung said trade remedies are increasingly common and are legal measures permitted by the WTO to ensure fair competition between domestically-made goods and imported equivalents.

He pointed out that due to some countries’ trade protection policies and lingering difficulties in the global economy in 2021, the number of trade remedy investigations targeting both Vietnamese exports and imports into the country is predicted to remain high for the foreseeable future.

This will expose domestic manufacturers to new challenges, especially as key FTAs like the EU-Vietnam FTA (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP) will present fierce competition.

Therefore, he added, TRAV has recommended businesses equip themselves with knowledge on trade remedy regulations, particularly those of Vietnam and its export markets, while gearing up resources to cope with any trade remedies.

Pointing out certain shortcomings, experts have said the capacity of local businesses in regard to trade remedies remains modest, while there are ongoing problems in legal regulations and coordination among related agencies.

MoIT has developed a plan on improving the capacity of Vietnamese enterprises to handle trade defence measures now the country is party to many new-generation FTAs.

Experts also held, however, that enterprises themselves need to change their thinking and turn competitive pressure into momentum for reform, development, and product improvement.

Nguyen Thao Hien, Deputy Director of the MoIT’s European – American Market Department, said that to help reduce trade remedy cases, businesses should promote the manufacturing of goods for which domestic material supplies are at hand, as well as those with high added value and rich growth potential amid the pandemic, such as agricultural products, food, and medical equipment.

They must ensure strict quality control and update processing technology so as to raise the value of their products, she added.

Trade remedy investigations can be initiated by one or just a few foreign companies but they pose risks for entire sectors, analysts said, suggesting that Vietnamese firms stay updated with information and actively work with their business associations and State agencies on an effective response.

TRAV Director Dung said that this year, apart from plans on enhancing trade remedy-related capacity and coordination, the authority will also implement plans on building and operating an early warning system for trade remedies and overhaul rules of origin./.

Tens of wind power projects to be operational in Quang Tri

As many as 22 wind power projects with a combined capacity of 907 MW are set to be put into operation in the central province of Quang Tri by year end.

To meet the deadline, the locality has urged project investors to speed up the construction, while pushing ahead with the maintenance of National Highway 9 and other routes to facilitate project equipment transportation.

The local Department of Industry and Trade has also suggested the provincial People’s Committee instruct relevant agencies and units to swiftly remove bottlenecks to site clearance.

As of January, the Ministry of Industry and Trade had approved 31 wind power projects in Quang Tri to date, with an accumulative capacity of 1,177 MW, of which seven are under construction.

Earlier, Huong Linh 1 and 2 wind power projects in the province came into service, significantly contributing to local budget collection.

Apart from projects that had received the green light of the ministry, Quang Tri has tens of others that are under study with a total capacity exceeding 3,600 MW.

The locality has adopted various solutions to support businesses operating in energy in general and wind power in particular such as providing them with consultations in tax, insurance, contract, land and environment, and building the e-government.

Estimations by the ministry showed Vietnam would face a shortage of 6.6 billion kWh in 2021, 11.8 billion kWh in 2022 and 13 billion kWh in 2023. It would require a total investment of 130 billion USD in new power projects by 2030 to make up for the shortages, equivalent to 12 billion USD annually.

The country’s power demand was forecast to increase by 8.5 percent per year over the next five years and seven percent between 2026 and 2030.

Research showed Vietnam had the potential to develop around 8,000MW hydroelectricity from small plants, 20,000MW of wind power and 3,000MW of biomass power and 35,000MW of solar power by 2030./.

UKVFTA hoped to promote Vietnam’s exports

The UK-Vietnam Free Trade Agreement (UKVFTA), which became effective on January 1, is expected to create a strong motivation pushing Vietnam forwards on the path of economic development and international integration.

According to Kenneth Atkinson, head of the British Business Group in Vietnam (Britcham), the deal will help strengthen trade and support employment, while promoting growth in both countries.

The erasing of 65 percent of the total tariff immediately after the deal takes effects and 99 percent of the tariff in 6-7 years will bring about practical benefits to British exporters of machineries, chemicals, and brandy, he held.

Along with the reduction of legal barriers as well as burden in administrative procedures in the two markets, the official said, highlighting that the UKVFTA will help observe the regulations and commitments that the two Governments and business communities have agreed on.

The deal will also ensure the increase in the trade by more than 3,000 UK businesses engaged in export activities to Vietnam, while meeting the demand for Vietnamese goods of UK customers, he said.

Atkinson asserted that the area of solar and wind power will receive priorities from the business communities and governments of both sides.

Experts held that Vietnamese products account for only 1 percent of the 700 billion USD import revenue of the UK, so Vietnam has high potential to provide more products to the promising market, including telephones, accessories, garment and textile products, footwear, seafood, wood and furniture, computers, cashew, and peppercorn.

The UK is currently the third largest trade partner of Vietnam in Europe.

Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), said that the UKVFTA not only facilitates the trade of goods and services but also helps promote partnership in many other areas, including green growth and sustainable development.

As the UK has officially left the EU, which means the preferential policies that Vietnam enjoys thanks to the EU-Vietnam Free Trade Agreement (EVFTA) will not be applied in the UK anymore, the UKVFTA has eased concern of the business community about the interruption of trade with the European country, he added./.

Vietnam targets modernity-oriented agriculture: Minister

Vietnam will continue with the building of a modernity-oriented agriculture sector with complete value chains in 2021, according to Minister of Agriculture and Rural Development Nguyen Xuan Cuong.

Cuong told the Vietnam News Agency (VNA)’s reporter that such production chains will be developed on the basis of three groups of major products – the club with export revenue of at least 1 billion USD, agricultural products that are of localities’ strength like longan in northern Hung Yen province and lychee in northern Bac Giang province, and “One Commune, One Product” (OCOP) goods.

Vietnam has paid attention to product quality during its international economic integration, Cuong said, stressing the significance of organic agriculture.

The sector will also take various solutions to call for the involvement of businesses, while promoting the linkages between them and farmers and cooperatives.

To attract more enterprises, the sector will further provide consultations for the Prime Minister in order to complete mechanisms and policies, as well as administrative reforms, he said.

The Ministry of Agriculture and Rural Development (MARD) will also closely coordinate with localities to facilitate investment, the minister said, adding that greater efforts will be made to step up the formation of new-style cooperatives.

Cuong said the application of digital technology should be intensified in spheres, and the MARD will join hands with the Ministry of Science and Technology and the Ministry of Information and Communications in this regard.

In another interview with the Dien dan Doanh nghiep (Business Forum) newspaper, Cuong said that 2020 was a year full of challenges and difficulties for Vietnam’s economy, including the agriculture sector, due to the COVID-19 crisis. The sector also had to face natural disasters, including unprecedented drought.

The growth and trade targets for the sector last year were also the highest ever, with exports set at over 41 billion USD.

However, Cuong noted, thanks to the efforts of the entire political system, ministries, sectors, localities, and economic elements, the agricultural sector managed to secure growth of about 2.65 percent and post export earnings of 41.25 billion USD, with nine groups of commodities enjoying shipments of over 10 billion USD.

The agriculture sector’s export target of 44 billion USD this year, set by Prime Minister Nguyen Xuan Phuc, is a high but feasible goal. Vietnam earned about 3.49 billion USD from exports of agricultural, forestry, and fisheries products in January, up 27.1 percent year-on-year, data from the Ministry of Agriculture and Rural Development shows.

Under a plan recently approved by the PM, Vietnam expects the annual figure to reach some 60-62 billion USD by 2030./.

Thanh Hoa looks to develop tourism into spearhead economic sector

The north-central province of Thanh Hoa has set a target of turning tourism into a spearhead economic sector by 2030.

Amid the difficulties posed by COVID-19, the province welcomed 7.3 million visitors in 2020, earning 10.394 trillion VND (over 453.6 million USD), representing 65.5 percent and 50.7 percent of targets, respectively.

Thanh Hoa’s tourism sector has posted impressive growth in recent years.

But Vice Chairman of the provincial People’s Committee Nguyen Van Thi said that its development is still not commensurate with potential.

Thanh Hoa lacks high-quality products to attract and meet the demand of international tourists, while its promotional activities remain ineffective and tourism human resources fail to meet requirements in the context of integration, he said.

According to Deputy General Director of the Vietnam National Administration of Tourism (VNAT) Nguyen Thi Thanh Huong, Thanh Hoa needs to introduce changes to take its tourism industry forward.

It should propose that the Government allow it offer incentives for tourism investment, she said.

Attention should be paid to accelerating the implementation of priority strategies for tourism development and administrative reform, and supporting businesses towards attracting strategic investors in developing infrastructure facilities serving tourism development, especially transport infrastructure.

Thanh Hoa should also focus on enhancing its cooperation with other localities to create new tours, develop high-quality and competitive products, and promote digital transformation and the application of information technologies in tourism activities./.

Kien Giang eyes 60-100 million USD in FDI over next five years

The Mekong Delta province of Kien Giang has set its sights on pulling in 60-100 million USD worth of FDI over the next five years, according to Vice Chairman of the provincial People’s Committee Nguyen Duc Chin.

It will focus its efforts on fulfilling plans on medium-term public investment and socio-economic development in 2021-2025, striving to attract 40 to 50 FDI projects with registered investment of 60-100 million USD in total, Chin said.

It aims for local social investment to reach 48 trillion VND (2.07 billion USD) this year.

The province has been accelerating communications campaigns on its strengths, potential, and investment incentives to attract both domestic and foreign investors.

Priority is being given to numerous areas, including road infrastructure; river ports; sea ports; electricity; water supply; solid waste treatment; renewable energy; infrastructure development in industrial parks and clusters; fishing, aquaculture and fish processing; intensive farming and industrial agriculture; supporting industries; tourism; services; education; and high-quality healthcare.

It also wants to attract large-scale projects with advanced technologies in high-tech agriculture and food processing.

Cooperation with ministries and government agencies will be stepped up to take part in investment promotion events in major partners such as the Republic of Korea, Japan, Singapore, and the US, as well as those who are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).

The province will also increase dialogue with local businesses and investors to help them tackle any difficulties and create an open and fair business climate.

Kien Giang is calling for investment in 144 projects in priority fields. It has to date granted in-principle approval and investment licenses to 49 projects with total investment of 22.66 trillion VND.

The Mekong Delta province welcomed 206 projects during the 2016-20 period, including 22 foreign projects with nearly 133 trillion VND in total capital./.

Outlook positive for Vietnam’s retail market

Despite a raft of difficulties facing Vietnam’s retail market, economists and insiders are still optimistic about the outlook for the sector in the time ahead, according to the Vietnam Report JSC.

In a recent survey, Vietnam Report found that nearly 42 percent of Vietnamese retail companies have been seriously impacted by COVID-19, while half said the impact has not been too serious and 8 percent experienced only minor effects.

Many people have had to cut their spending after becoming jobless or having their wages reduced due to the pandemic. Retail companies, meanwhile, have had to face a shortage of capital and disrupted supply chains.

However, Vu Dang Vinh, General Director of Vietnam Report, said economists and insiders remain optimistic about the sector’s outlook.

In following COVID-19 prevention and control regulations, many consumers have opted for online shopping, convenience stores, shopping centres, and supermarkets, rather than traditional markets.

Vinh pointed to the increased popularity of multi-channel marketing, both online and in-person, while adding that thanks to quick changes, many retail businesses, including giants like Lotte Mart, have posted online sales growth of 100 to 200 percent, especially in Hanoi and HCM City.

Mergers and acquisitions (M&As) are also expected to boom in Vietnam’s retail market in the time ahead, he said, explaining that more than 60 percent of local retailers are of small and medium-size and have significant demand for capital, so are ready to enter into partnerships.

Analysts also said the mini-supermarket model has proven superior amid the pandemic, as it can limit large gatherings.

Retailers have therefore poured more investment into this model while introducing more changes to better meet customer demand./.

Tra Vinh-based business promotes coconut product export

An enterprise based in the Mekong Delta province of Tra Vinh has been stepping up the export of coconut shell activated carbon and other coconut products as a way to benefit the company itself and local farmers.

Between January 1 and February 10, the Tra Bac Joint Stock Corporation (TRABACO) shipped more than 900 tonnes of coconut shell activated carbon to various markets, including the US, the UK, the Republic of Korea, Japan, Peru, Ecuador, Israel, and China.

General Director of the firm Huynh Khac Nhu said his company has inked a number of contracts with both new and existing partners since the year’s beginning, with 2,000 tonnes of coconut shell activated carbon to be delivered between now and June 2021.

TRABACO’s activated carbon, used for air purification, gold refining, electroplating, and odor control in different industries, meets environmental and health safety standards, thus winning over trust from many domestic and foreign businesses and consumers, he noted.

The product has been exported to more than 30 countries and territories in around the world.

Apart from coconut shell activated carbon, the company also produces and exports others made from coconut like coir carpets, dried coconut shreds, and frozen coconut milk.

To improve product quality and ensure stable material supply, it has contracted farmers to develop a 300ha organic coconut farming zone in Tieu Can district and partnered with a local agricultural cooperative in coconut purchase.

Nhu added these are initial steps in the firm’s plan to form a zone of clean material supply, which will help promote TRABACO’s product quality as well as income for farmers in Tra Vinh province./.

Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR