Vietnam banking sector

Hanoi (VNA) – Online advertising, as the first choice of firms and brands amid the pandemic, is thriving in Vietnam and could reach the milestone of 1 billion USD in revenue this year.

According to the Vietnam Digital Marketing Trends 2021 report by Novaon, Vietnam’s online ad market will continue growing during the 2020-2025 period, with a compound annual growth rate of 21.5 percent. Despite the pandemic last year, online ad revenue still reached 820 million USD, which is forecast to rise to 955.7 million USD this year.

Chairman of the Clever Group Nguyen Khanh Trinh expressed his optimism about the annual growth of 10-20 percent in the sector.

Last year, Vietnam’s digital economy was worth 14 billion USD, which is forecast to reach 52 billion USD by 2025. In particular, e-commerce expanded by 46 percent as Vietnamese spend 3.5 – 4.2 hours per day on the internet, which gives an edge for the online advertising sector to earn 1 billion USD this year.

However, the sector also faces unfair competition with cross-border platforms like Facebook and Google accounting for over 80 percent of online ads revenue in Vietnam.

At present, Facebook, Google Ads, YouTube and channels of key opinion leaders are the first choices of domestic firms for online ads, which spent an average 17 percent of their revenue on digital marketing in 2020.

Statistics showed that only about 5 percent of firms do not or have yet to use Facebook for their marketing campaigns. Many others spent more than 50 percent of their online ads budget on Facebook instead of other channels.

Nguyen Dang Ngoc, Deputy Director of the VCCorp, said customers prefer using ad services by cross-border platforms because they do not have to fulfill taxation and fee obligations.

The Decree No.38//2021/ND-CP regulating administrative fines in culture and ads, which took effect on June 1, 2021, is expected to fill gaps to promote fair competition in the field, making it easier for domestic firms to win market share from foreign giants./.

VNA

Hanoi (VNA) – The national COVID-19 vaccine fund has received more than 4.85 trillion VND (211.35 million USD) worth of donations from 291,818 organisations and individuals as of 5pm on June 13, according to the fund’s management board.

Minister of Finance Ho Duc Phoc said that his ministry will publicise the amount of donations the fund receives every hour and every day along with the spending of money from the fund.

The ministry, which is in charge of the vaccine fund, has established a management board for it at the State Treasury and opened bank accounts at the State Treasury and commercial banks to receive support from individuals and organisations inside and outside the country.

Vietnam needs 150 million doses of vaccines to administer about 75 percent of its population this year, with total cost amounting to 25.2 trillion VND./.

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Digital transformation is deemed an evitable trend which helps the firms surmount the adverse impact of COVID-19, as well as a key to sustainable development.

The pandemic has dealt a major blow to this economic sector with over 95 percent of companies severely affected.

CEO of Travelogy Vietnam Vu Van Tuyen said that IT applications help businesses to optimise personnel and system management, so as to improve efficiency and competitive edge.

In addition, technology also creates connection between firms, fostering transparency and sustainable development, he added.

To meet demand of tourists, travel companies have devised virtual or interactive tours embellished with images, videos, sound effects and music.

When it comes to applying digital transformation, firms are advised to take consumer psychology into account in an attempt to build a suitable roadmap.

The acceleration of digital application is vital to supervise tourism activities and support COVID-19 prevention and control measures, as well as ensure long-term business of the sector, Ha Van Sieu, Deputy Director General of the Vietnam National Administration of Tourism (VNAT), has said.

To support stakeholders, the VNAT has rolled out a project on a smart tourism operation centre that will connect with customers and coordinate with telecommunication units.

Localities are asked to guide firms in signing up for a COVID-19 safety self-assessment system and an app on safe tourism, which have seen the registration of all 64 provinces and cities in the country.

HCM City (VNS/VNA) – Businesses would be required to use non-cash payments for trading transactions of any value under a proposal submitted to the Government by the Ho Chi Minh City Tax Department .

Currently, trading transactions worth more than 20 million VND (868 USD) have to be made by cashless payment in order to enjoy tax refunds and corporate income tax reductions as regulated by the law on value-added tax.

The proposal is aimed at improving tax governance and strengthening monitoring of expenditures and turnover of businesses and traders, according to an official at the tax department.

The official said that payments using non-cash methods have become increasingly popular in Vietnam, and the Government last year issued a resolution to boost cashless payments in the country.

The department also proposed that the Government create regulations for e-commerce or digital-based business activities conducted by foreign companies like Google, Facebook, YouTube, Agoda, Booking.com and Airbnb.

These companies would be required to provide tax agencies information on individuals and businesses in Vietnam involved in their business activities.

The department also proposed that the Government set regulations concerning investigation of tax fraud and related crimes.

Associate professor Dinh Trong Thinh of the Academy of Finance said it was vital to speed up cashless payments to reduce the risks involved in cash payments and to increase financial transparency.

However, limited payment infrastructure was one of the barriers hindering electronic payment adoption, he said.

Regulations on non-cash payments for all transactions should not be required, he said. There should be a detailed roadmap to implement regulations on non-cash transactions to make it feasible, especially for small enterprises, he added./.

VNA

Hanoi (VNA) – Vietnam’s capital city of Hanoi will strive to take the lead in e-commerce nationwide, considering it an important task in economic growth this year, Acting Director of the municipal Department of Industry and Trade Tran Thi Phuong Lan has said.

Hanoi is now home to 330,000 enterprises, 95 percent of which are small and medium-sized enterprises (SMEs) and account for 25-30 percent of its exports.

In recent years, the capital has ranked second nationwide in the e-commerce index. Despite the impact of the COVID-19 pandemic, its e-commerce sector still grew 30 percent last year, with over 12,350 websites and apps contributing 8 percent to total retail sales.

In cooperation with other departments and agencies, it has accelerated the construction of logistics centres and warehouse networks.

Lan said the department will work to sell handicrafts from Hanoi on Amazon by providing training to local SMEs, holding seminars to help them understand procedures and regulations, and offering advice on refreshing product lines./.

VNA