Vietnam post and telecom corporation

By Bich Thuy

By Lam Tien

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Airports serve about 1.5 million travellers during holidays

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

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

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

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

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

Construction material prices recover

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

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

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

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

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

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

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

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

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

Shares mixed on resurgence of COVID-19

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Viet Nam sees strong import, export recovery in first quarter

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Banks to serve with soaring capital needs of businesses

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PAN Group to raise stake in Khang An Food

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

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

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

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

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

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

Four new payment intermediaries licensed in Vietnam since 2021

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

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

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

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

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

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

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

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

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

Industrial production rises at fastest pace since late 2018

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

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

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

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

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

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

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

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

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

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

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

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

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

Austrian firms expect opportunities from Vietnam

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

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

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

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

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

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

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

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

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

Intellectual property helps companies consolidate foothold

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

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

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

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

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

Honda Vietnam to recall 27,640 cars with faulty pumps

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

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

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

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

The replacement will be done free of charge./.

Gas well 61 lays foundation for oil and gas development

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

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

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

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

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

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

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

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

Vietnam posts positive signs in FDI attraction

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

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

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

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

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

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

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

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

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

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

Businesses must devise schemes to boost exports amid COVID-19

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Airports serve about 1.5 million travellers during holidays

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

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

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

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

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

Long An Province to join regional tourism organisation

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sabeco sees profit up 37 per cent

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

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

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

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

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

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

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

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

PAN Group to raise stake in Khang An Food

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Authorities check a coach in Ninh Binh city, the capital of northern Ninh Binh province.

The current COVID-19 resurgence has put the brakes on trade, transport and tourism, with all the sectors experiencing declines in May, according to the General Statistics Office (GSO).

The turns of passengers transported across the country was estimated at 287.8 million this month, a 14.9-percent decrease from April, the GSO reported. The figure exceeded 1.59 billion in the first five months of 2021, up 4.2 percent year-on-year.

In May, transport of goods, meanwhile, increased by 2.8 percent to 139 million tonnes. This brought the total volume of freight transport from January to May to 739 million tonnes, up 10.5 percent year-on-year.

Total retail sales of goods and services valued 393.6 trillion VND (17.1 billion USD), down 3.1 percent from the previous month and 1 percent from a year earlier. The five-month sum hit over 2.08 trillion VND, up 7.6 percent year-on-year.

International visitor arrivals in Vietnam totalled 13,400 this month, down 30.8 percent month-on-month and 40.6 percent year-on-year. The five-month figure plunged 97.8 percent compared to the same period last year as international travel restriction continued to be in place./.

Experts urge wariness over firms offering lucrative investment opportunities

Experts have sounded the alarm about a new form of financial investment co-operation offering high interest rates, warning that investors could lose their capital in a rate trap.

As banks are currently offering low interest rates, many companies are advertising in a bid to mobilise idle capital from investors by offering very high interest rates, vneconomy.vn reported.

According to an advertisement on the website of Nhat Nam Real Estate and Trading Investment Joint Stock Company, despite being newly established in July 2019, the company has more than 8,000 investors participating in business co-operation. The company is offering an interest rate of up to 168 per cent for a 24-month term to investors, which is 12 times higher than the interest rate listed by commercial banks.

According to the company’s staff, customers can receive high interest rates and discounted real estate and other services from the company if they invest from VND20 million to VND5 billion over two years.

After two working days of sending their capital to the company, every day customers will receive a part of the principal and interest rate sent to their personal account from Monday to Friday, except weekends and the country’s holidays.

The staff claimed the company can pay such attractive profits due to its involvement in many business segments with a focus on real estate in many cities and provinces from Ha Noi, Ha Nam and Thanh Hoa to Kien Giang, Tay Ninh and Dac Lak.

Also offering high interest rates and sustainable profit, the Blue Diamond Real Estate Services Trading and Investment Joint Stock Company headquartered in HCM City is seeking investment with a dream interest rate of 105 per cent in 20 months.

The company announced it recently launched a gratitude programme to loyal investors, offering customers VND6.16 million per month with an investment capital of only VND60 million. This means as well as three SJC gold taels as a gift, the customers are promised a total of VND123 million after 20 months.

According to lawyer Truong Thanh Duc, Director of ANVI Law Firm, all forms of capital mobilisation, from bond and stock issuance to business co-operation contracts, are legal. However, the above form of investment co-operation, which commits to pay fixed high interest rates is fraudulent and ambiguous.

Duc explained under Article 468 of the 2015 Civil Code, the interest rate of a loan may be agreed upon by the involved parties but must not exceed 20 per cent of the loan amount per year, unless otherwise prescribed by a relevant law.

To dodge the law, the companies mobilise capital by calling for business investment co-operation, whose interest rate can reach hundreds of per cent legally. However, they don’t warn their customers that business investment co-operation has risks and the customers must accept those risks.

If the companies claim their investment is profitable and safe without any risks, they are cheating customers, Duc noted.

VietinBank to receive over 300 million USD in State capital

The Government has approved a plan to invest an additional 6.977 trillion VND (303.2 million USD) in State capital in the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) so as to maintain the State’s ownership percentage at this bank.

The approval will be the basis for VietinBank to carry out procedures for raising its charter capital, helping it continue expanding operations.

The bank is expected to complete the issuance of shares to pay dividends, at a rate of 29.0695 percent, in the third or fourth quarter of 2021.

Following the issuance, the bank’s charter capital will increase by 10.824 trillion VND, from 37.234 trillion VND to 48.058 trillion VND.

Last year, the bank posted 17.085 trillion VND in consolidated pre-tax profit while the non-performing loan ratio stood at 0.94 percent.

The respective figures were at 8.06 trillion VND and 0.88 percent by the end of the first quarter this year./.

Ample room for Vietnamese farm produce, food in Poland

The Polish market has ample room for Vietnamese farm produce and food, experts said at a recent online conference.

The conference was jointly held by the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade (Vietrade), the Commercial Affairs Office under the Vietnamese Embassy in Poland, and the Polish Chamber of Commerce. It aims to help Vietnamese firms study and access the Central European market.

Participants shared the view that Vietnam’s farm produce and food have grown strongly over the past years and affirmed their position in the international market, explaining that these products have hit the shelves of 185 countries and territories, including the US, Japan, the EU and the Republic of Korea (RoK).

Nguyen Thanh Hai, Counsellor at the Commercial Affairs Office, said Poland has huge demand for products that Vietnam has strength like rice, tra and basa fish (pangasius), shrimp, mango products, pineapple, coffee and cashew nuts.

Vietnam’s ST24 and ST25 rice varieties are competitive as compared with their rivals from Thailand in terms of price and quality, according to the official.

Wojciech Gerwel, Polish Ambassador to Vietnam, said the fruitful traditional relationship between Vietnam and Poland would create optimal conditions for their businesses to cooperate.

Vu Ba Phu, head of Vietrade, pointed out the positive impact of the EU-Vietnam Free Trade Agreement (EVFTA) on Vietnam’s economy, particularly its imports from and exports to the EU and Poland.

Vietnam is the EU’s 10th largest goods supplier, he said, suggesting Vietnamese ministries and agencies step up the information work to help domestic enterprises stay updated on commitments in the agreement and market demand.

Following the conference, nearly 30 Vietnamese businesses conducted online transactions with more than 40 Polish firms, and introduced Vietnam’s farm produce and food products that would be exported to the EU./.

Digitalization – viable option for banks’ sustainable growth

By 2025, at least 50% of banking procedures and 70% of customers’ transactions are expected to take place in the cyber environment.

While keeping a safe distance and remote working have become new practices since the Covid-19 outbreak, Vietnamese banks have been quick to push for digitalization to meet customers’ demand for more digital banking options and pursue sustainable growth.

A study from Vietnam’s E-commerce and Digital Economy Agency (iDEA) revealed Vietnam’s e-commerce revenue rose by an impressive rate of 18% year-on-year to US$11.8 billion last year, or 5.5% of the total revenue of retail sales and services.

WeAreSocial & Hootsuite in its Digital report on the Vietnamese market suggested the rate of internet users from the age of 16-64 using mobile phones for online shopping rose from 55% in 2019 to 68.5% in 2020.

The use of online banking and financial services, thus, went up from 36% to 40.1% in the 2019-2020 period as people considered digital banking a normal routine in new circumstances.

Since last year, state-run Vietcombank launched its digital banking app VCB Digibank, while BIDV also kicked off its own digital transformation initiative via the BIDV iBank app.

VCB Digibank was developed based on the combination of internet banking and mobile banking platforms. For BIDV customers, the BIDV iBank allows enterprises to conduct banking transactions, including account and transaction inquiries, in a safe, accurate, and quick manner without visiting a physical bank branch.

Private banks, including Viet Capital Bank, OCB, or TPBank also launched their respective digital bank app to better meet customers’ demand for quick and safe services.

To further accelerate the digitalization trend in the banking sector, the State Bank of Vietnam (SBV), the country’s central bank, has recently issued a plan for digital transformation   Vietnamese banking sector until 2025, with a vision to 2030.

By that time, the SBV expects at least 50% of banking procedures and 70% of customers’ transactions to be conducted in the cyber environment; 50% of consumer loans to clients have processed automatically online.

For its part, the central bank would reform its operation comprehensively by taking advantage of Industry 4.0 technologies and meeting the government’s requirements for digital transformation.

SBV’s Vice Governor Nguyen Kim Anh noted digitalization in the banking sector is a key task to promote financial inclusion and the establishment of e-government, eventually towards the digital government.

“In this regard, banks should give priority to new technologies application and innovation, in which customers are at the center of all services,” Anh added.

According to Anh, banks and credit institutions are expected to develop digital bank models and expand services for greater customer satisfaction.

“The capability of banks to meet the customers’ demand would be the measurement for their efforts in digitalization,” he said.

While saying these targets are ambitious, Anh referred to a recent survey that 95% of banks are planning for digital transformation.

“Certain banks have been able to provide fully-digitalized banking procedures, including depositing money, opening and using of account, transfer wiring, personnel management, or to apply artificial intelligence, machine learning and big data in more advanced tasks including grouping customers and assisting the lending process,” Anh suggested.

In the coming time, Anh said the SBV would accelerate the process of drafting the Law on e-transactions, which serves as a basis for ministries and government agencies to promote the digitalization process.

In parallel with the efforts, the SBV is scheduled to issue a decree on e-identification and verification, along with regulations to protect privacy and data in the cyber environment, Anh added.

In 2020, the number of mobile transactions surged by 114% in number and 118% in value against 2019, while payment via QR code scanning also rose by 73%.

This resulted in a sharp increase of 78% in the number of total transactions and 128% in value compared to those recorded in 2019.

Foreign enterprises place trust, raise investment in Dong Nai

The trust of investors in the local business climate and support from authorities for enterprises count among the factors that have helped southern Dong Nai province almost reach its foreign direct investment (FDI) target for the year.

The Swiss-funded Nestle Vietnam, based at the Bien Hoa 2 Industrial Park, has continually increased its charter capital since opening its first factory on-site in 1995.

Most recently, in April, it added 132 million USD to its investment in a coffee production project at the Amata Industrial Park in Dong Nai, bringing the total to over 400 million USD.

Carl Khoury, a manager at the company, said it has set up four factories in Vietnam, including three in Dong Nai, and it considers the province a key destination since it boasts industrial parks with complete infrastructure, borders Ho Chi Minh City, the country’s southern economic hub, and is served by highways and expressways favourable for goods transportation.

He noted that the company has developed continually over the last 25 years thanks in part to a sound investment climate and clear legal procedures that match international practice, both nationally and in Dong Nai.

Authorities have also swiftly dealt with any problems facing businesses, Khoury added.

In late March, the Soheung Vietnam Co. Ltd, with investment from the Republic of Korea, raised its capital by 30 million USD to 80 million USD to expand its factory at the Long Thanh Industrial Park in Dong Nai.

The company said the greatest challenge foreign businesses encounter when investing in a country is a lack of understanding about local practices and legal regulations.

However, it added, local agencies have helped it handle environmental and construction-related procedures, while taxation, business registration, and insurance services have been provided online, facilitating operations.

Dong Nai has attracted 66 FDI projects worth over 680 million USD since the beginning of this year, while its target for the year as a whole was around 700 million USD, according to the province’s Industrial Zones Authority.

It is currently home to nearly 1,400 FDI projects from 41 countries and territories with combined capital of 27 billion USD.

Chairman of the provincial People’s Committee Cao Tien Dung said FDI projects have contributed greatly to local socio-economic development, and Dong Nai views foreign investment as a main development resource.

The province pledges to provide the best possible conditions to investors, he noted, adding that it prioritises large-scale projects using advanced technology and skilled workers in supporting industries.

In the time ahead, it will also boost infrastructure development, build modern residential areas, and invest strongly in education and healthcare, as investors come to the province not only to seek profit but also to enjoy a good life, Dung said./.

JICA provides 25 million USD for wind power project in Quang Tri

The Japan International Cooperation Agency (JICA) has recently signed a facility agreement to provide up to 25 million USD for an onshore wind power generation project with a total capacity of 144 MW in the central province of Quang Tri.

The Power Construction Joint Stock Company No. 1, a major local company in Vietnam in the field of renewable energy development and electromechanical works, and RENOVA, Inc., a leading renewable energy IPP developer in Japan, are sponsors to the project.

Three project companies namely Lien Lap Wind Power Joint Stock Company, Phong Nguyen Wind Power Joint Stock Company, and Phong Huy Wind Power Joint Stock Compan are the borrowers. The loan is co-financed by Asian Development Bank (ADB) and Export Finance Australia under the Australian government.

This project is JICA’s first finance for a wind power generation project in Vietnam and is expected to serve as a model case for private sector wind power generation projects in the renewable energy sector in Vietnam, including those by Japanese and local companies.

In addition, the project will contribute to the Initiative on Overseas loan and Investment for ASEAN announced at the Japan-ASEAN Summit Meeting on November 4, 2019, and is the first investment by a Japanese company in a new-large scale wind power project in Vietnam.

According to the Ministry of Industry and Trade of Vietnam, electricity demand in Vietnam is expected to increase by 8-8.5 percent per year from 2021 to 2025, and demand for electricity is expected to be strong.

The Vietnamese government has also set a target of reducing greenhouse gas emissions by 9 percent in 2030 compared to the base-case scenario without climate change measures and has adopted the introduction of renewable energy as a specific measure.

In order to increase the supply of electricity and combat climate change at the same time, the government has set a target of using renewable energy sources for about 15-20 percent of the 125-130 GW of power generation capacity in its power development plan for 2030 of which 6000 MW will be supplied by wind power projects./.

PM orders removing difficulties in farm produce consumption for Bac Giang

The Prime Minister has tasked the Ministry of Industry and Trade with removing difficulties in the consumption of agricultural products, especially lychee, for Bac Giang province that is now the country’s COVID-19 hotspot.

Accordingly, the ministry will hold working sessions with the northern province, dubbed as Vietnam’s “lychee kingdom,” to set forth plans on lychee purchase and consumption.

At the same time, it needs to step up activities to boost domestic consumption and export, while closely coordinating with relevant ministries, agencies and localities to facilitate the circulation of the fruit.

COVID-19 prevention and control regulations must be always observed, the PM stressed.

According to the provincial People’s Committee, Bac Giang has 28,100 ha of lychee this year, with a total output of some 180,000 tonnes, up 15,000 tonnes from the previous year. The main lychee harvest season will begin in mid-June.

Amidst the pandemic, China – one of Bac Giang’s major lychee buyers – finds it hard to enter the locality.

Bac Giang has decided to establish two groups in charge of supporting lychee export at border gates in the northern provinces of Lao Cai and Lang Son./.

Vietnamese customers remain loyal to local retail brands: Nielsen

Vietnamese consumers are more and more interested in locally-made products and place greater trust in local retail brands, market researcher Nielsen has said.

In a report exploring Vietnam’s latest consumer trends, Nielsen wrote that 2020 left many challenges for the domestic retail industry due to COVID-19 and natural disasters, which cut into purchasing power.

In the face of the pandemic, customers tended to be more loyal to Vietnamese retail brands and sought attractive promotional programmes and products with reasonable prices, it added.

Retailers with abundant resources, strong market understanding, and updated business strategies will gain a competitive edge.

Female customers aged 25-49 prefer convenience stores such as the Co.opmart supermarket chain of the Saigon Union of Trading Cooperatives (Saigon Co.op), for their good customer services, convenient location, and offers for customers.

Saigon Co.op has moved to diversify its retail format in order to lead the market in product quality and food safety, promote the development of its own brands, and complete a modern supply chain.

It targets adding 136 stores in 44 cities and provinces to its network this year, serving 2 million shoppers every day. It is also focusing on completing logistics facilities, upgrading services, and expanding new cashless payment methods./.

Northern region enjoys record rice output in 2020-2021 Winter-Spring crop

The northern region enjoyed record rice output and productivity in the 2020-2021 Winter-Spring crop, it was reported at an online review conference on May 28.

According to the Department of Crop Production under the Ministry of Agriculture and Rural Development, the region harvested an average 6.36 tonnes of paddy rice per hectare during the crop, with total output reaching an estimated 6.9 million tonnes, an increase of 34,000 tonnes from the same period last year.

Nguyen Nhu Cuong, head of Department of Crop Production said the outstanding results are attributable to favourable weather conditions.  With greater area of high quality rice varieties and reduction in production costs, the profit has also improved for farmers.

He stressed that the achievement plays an important role in ensuring food security and  socio-economic stability in the context of complicated developments of the COVID-19 pandemic.

According to schedule, northern provinces will sow rice on 1.2 million hectares, down 7,000 ha from the same crop last year. Average productivity is expected to reach 5.18 tonnes per hectare and the estimated output at 6.3 million tonnes./.

Canadian firms seek trade, investment opportunities in Vietnam

Canada’s westernmost province of British Columbia and the Asia-Pacific Foundation of Canada (APFC) held a webinar on May 27 to discuss opportunities for local firms in investing in Vietnam under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The event drew representatives from various Vietnamese and Canadian authorised agencies and more than 200 British Columbia firms.

Addressing the event, George Chow, British Columbia’s Minister of State for Trade, spoke highly of the Vietnamese economy’s dynamism, underlining that Vietnam is among the most open economies in terms of trade in the world.

He highlighted the important position of Vietnam in the Canadian province’s economic partnership.

In 2019 when the CPTPP took effect officially for Vietnam, the Southeast Asian country became the 10th largest export market of British Columbia with total export value of 359 million CAD, Chow said.

The CPTPP has created favourable conditions for Canadian businesses to access the Vietnamese market, facilitating exports of goods and services as well as investment in various fields, he added.

For his part, Vietnamese Consul General in Vancouver Nguyen Quang Trung underscored the growing comprehensive partnership between Vietnam and Canada and British Columbia in particular, even amid the COVID-19 pandemic.

However, the diplomat said that the bilateral economic cooperation has remained modest compared to the two sides’ potential.

Trung lauded the participation of experienced Canadian organisations operating in Vietnam in the workshop to provide objective information for businesses in British Columbia. He hoped Canadian firms of Vietnamese origin will work as bridges to connect businesses from the two sides.

At the event, participants gave specific information about the Vietnamese market and the advantages that the CPTPP has created for Canadian firms to do business and invest in Vietnam. They also discussed a wide range of issues, including the role of Canadian representative agencies in Vietnam./.

RoK credit card issuer wholly acquires Wirecard Vietnam

BC Card, a Republic of Korea-based credit card issuer, has acquired 100 percent stake of Vietnamese point of sale (POS) terminal provider Wirecard Vietnam in a bid to expand its foothold in Southeast Asia.

Wirecard Vietnam, the largest POS system supplier in Vietnam, offers one-stop-shop payment solutions, from back-end software to front-end hardware, to around 40 local banks and payment services firms.

The Hanoi-based company, a subsidiary of Germany’s Wirecard Sales International Holding, has been present in Vietnam since 1999. Its revenue reached a record high 137.3 billion VND (close to 5.95 million USD) in 2019, up 15.5 percent from the previous year. Its after-tax profit hit 12.4 billion VND, a year-on-year increase of 2018.

The parent corporation last year filed for insolvency after it admitted 1.9 billion EUR in cash had gone missing from its balance sheet, forcing Wirecard Singapore to divest its entire holding from the Vietnam company to BC Card.

“Despite the challenging circumstances of the international sales processes amidst a pandemic, we succeeded in preserving another Wirecard subsidiary in Asia,” said insolvency administrator Michael Jaffé.

BC Card, meanwhile, is the RoK’s biggest payment processing company and local brand network. It has been collaborating with a number of major banking and payment services firms in Vietnam, such as National Payment Corporation of Vietnam (NAPAS), LienVietPostBank, and Sacombank.

“BC Card has decided to take over the stake of Wirecard Vietnam to directly run a business in the local market, and to increase its presence there,” said BC Card CEO Choi Won-seok.

The transfer of the stake will be completed by the third quarter this year after the RoK firm pays for the acquisition./.

Vietnam – interesting potential market in Asia-Pacific: German economist

Vietnam continues to be one of the most interesting potential markets in the Asian-Pacific region, together with India, economist Daniel Müller from the German Asia-Pacific Business Association (OAV) has said.

Talking to the Vietnam News Agency correspondents in Germany, Müller stated that the Vietnamese economy has recovered significantly and dynamically, reflected through a year-on-year increase of 29.5 percent in the trade turnover in the first four months of 2021, with 206.5 billion USD – the highest in the past 10 years.

However, in the second quarter, it is difficult for the country to achieve the growth rate as high as that of the first quarter, given the new COVID-19 outbreak, which will hinder the re-opening of its borders.

He predicted Vietnam’s economic growth rate would be equivalent to the average level of previous years.

In the medium term, the German expert affirmed that the industrial sector will continue to be the main driving force of Vietnam’s economy.

If Vietnam continues to expand its policies to attract foreign direct investment and accelerate digital transformation, Vietnam will have good opportunities to participate more in global supply chains, for example, in electronics, computing and automotive industries, he stressed.

In these industries, Vietnam should develop a strategic development plan, in which it should connect well with potential foreign investors.

To cope with long-term challenges, the Government should adjust the relationship between the State and businesses to conform to international standards so as to make the public-private partnership more effectively, he added.

Regarding the economic relationship between Vietnam and Germany in the first half of 2021, Müller said that forums and communication channels have helped deepen the economic ties.

The European Union-Vietnam Free Trade Agreement (EVFTA) plays an important role and is a good opportunity to promote economic cooperation between the two countries’ businesses. In January 2021, the OAV coordinated with the German Ministry of Economy and the Vietnamese Ministry of Industry and Trade to establish the Joint Committee on Germany-Vietnam Economic Cooperation (JEC). JEC will regularly hold discussions, with focus on the progress of implementing the EVFTA.

Regarding the prospect of the EU-Vietnam Investment Protection Agreement (EVIPA), the German expert said that Germany is interested in this pact, thanks to an increase in Germany’s direct investments in Vietnam. However, it is not known exactly when the EVIPA will be ratified by the German Parliament and other EU member parliaments, he added./.

HCM City’s CPI rises 0.33 percent in May

The consumer price index of Ho Chi Minh City recorded a month-on-month rise of 0.33 percent in May, according to the city’s Statistics Office.

Among the groups of products and services in the CPI basket, increases were seen in transport (1.08 percent), and restaurant and catering services (0.51 percent).

Meanwhile, housing, electricity, water, and construction materials increased 0.36 percent against the previous month and beverages and tobacco 0.13 percent.

The group of post and telecommunication services saw the largest contraction of 0.68 percent in the month, followed by culture, entertainment and tourism (0.08 percent); and garment-textile, footwear and headwear (0.04 percent), while that of equipment and household appliances fell 0.01 percent.

The prices of medicine and medical services remained stable compared to the previous month.

The Statistics Office also reported that the gold price grew 1.34 percent month on month, bringing the figure up 21.56 percent in Jan-May.

The US dollar exchange rate declined 0.25 percent compared to the previous month, making the five-month figure down 1.14 percent./.

Moody affirms its long-term domestic and foreign currency deposit and issuer ratings of four Vietnamese banks

Credit rating agency Moody’s on Wednesday affirmed its long-term domestic and foreign currency deposit and issuer ratings of four Vietnamese banks.

The Orient Commercial Joint Stock Bank (OCB), Tien Phong Commercial Joint Stock Bank (TPBank), and Vietnam International Bank (VIB) have been assigned B1, while the Vietnam JSC Bank for Industry and Trade (VietinBank) at Ba3, because of stable credit profiles that underpinned the affirmation of their respective Baseline Credit Assessments (BCA) and Adjusted BCAs at b1.

The ratings of TPBank and VIB reflect the banks’ stable and good asset quality; good profitability; and adequate capitalisation. OCB’s ratings reflect the bank’s strong capital position; above-average profitability; and elevated asset risks.

The report says TPBank, VIB and OCB are reliant on market funding, a result of their small domestic franchises, but the high levels of liquid assets in their balance sheets mitigate this risk.

Moody’s expects the asset quality of TPBank and VIB will remain stable in the next 12 to 18 months, as reflected by the declines in their respective non-performing loan (NPL) ratios to 1.2 per cent and 1.7 per cent as of the end of 2020, from 1.3 per cent and 2.0 per cent as of the end of 2019.

OCB’s asset risks will likely remain elevated over the same period.

A common risk factor for the three banks is their rapid loan growth, which increases their risk of credit losses due to a higher level of unseasoned loans. Moody’s expects profitability for the three banks to remain stable, supported by good yields from their retail and SME loans, and growing bancassurance fee income.

VietinBank’s ratings reflect improvements in the bank’s asset quality; its average profitability; weak capitalisation; and good deposit franchise, with Moody’s expecting its asset quality to remain stable in the next year and a half.

The report said that it could upgrade the long-term ratings of the four banks if the Vietnamese Government’s sovereign rating or the banks’ BCAs are upgraded.

The banks’ BCAs could be upgraded if there are material and sustainable improvements in their solvency metrics. Moody’s could downgrade the long-term ratings of these banks if their credit fundamentals severely deteriorate, including a spike in NPLs leading to higher loan loss provisions that will weigh on the banks’ profitability and capital. A significant deterioration in the banks’ funding and liquidity could also be negative for the ratings.

Southern localities ensure adequate supply of essential goods

Localities in the Mekong Delta have coordinated with relevant agencies and businesses to ensure the COVID-19 outbreak does not disrupt the supply of essential goods or causes price hikes, and plan to carry out food safety inspections to ensure people can shop safely.

According to authorities, amid the epidemic, ensuring the supply of goods is the top priority.

The industry and trade departments in the region have called on all production units, distribution systems and retailers to make plans to stockpile essential goods, especially price-stabilised items, to ensure supply does not dry up.

Nguyen Van Tham, deputy director of Hau Giang province’s Department of Industry and Trade, said his department has coordinated with districts, towns and cities, businesses, supermarkets, and department stores across the province to stockpile rice, pork, chicken, eggs, seafood, vegetables, instant noodles, salt, cooking oil, bottled water, antibacterial cloth masks, antiseptic liquid, and toilet paper.

In case of an emergency, authorities would use specialised vehicles to distribute essential goods to people in quarantine, he added.

In Can Tho city, 11 businesses have registered to stockpile food and foodstuffs worth a total of over 553 billion VND (23.97 million USD), especially rice, meat, seafood, vegetables, fruits, instant noodles, bottled water, processed foods, and eggs.

Some others have registered to stock other products such as masks, antiseptic liquids, toilet paper, and petrol.

The Can Tho municipal Department of Industry and Trade has coordinated with relevant agencies and departments to set up three teams to inspect traditional markets, supermarkets and businesses to ensure they comply with anti-COVID measures.

It also plans to stock essential goods to meet demand under all circumstances.

Similarly, the Dong Thap Department of Industry and Trade has instructed commercial centres, supermarkets, traditional markets, and businesses in the province to carry out an assessment of the risk posed by COVID and report plans to ensure supply of essential goods.

Businesses in the region have proactively made goods production and supply plans, and distributors are actively working with suppliers to stock a variety of goods.

Nguyen Kim Cuong, deputy director of Co.opmart Can Tho, said the volume of stocks is worth around 18 billion VND (781,476 USD).

It has stepped up sales via telephone and app to make it easier for customers.

Like other Co.opmart supermarkets across the country, it has ensured sufficient stocks of goods at the best prices, she said, adding that it could provide 1,000-1,500 hot meals a day.

Van Quoc Hoang, director of Co.opmart in Vinh Long pProvince, said currently his supermarket focuses on increasing stocks of essential items that people could store for long-term use such as canned foods, rice, spices, frozen goods, spring rolls, meat paste, milk, vegetables, fresh meat, and fish.

According to industry and trade departments in south-western provinces, along with stockpiling of goods, authorities also continue to exhort people to stay calm assuring them that the supply of essential goods is always abundant.

They also warn people not to hoard essential items, especially inflammable and explosive items such as gasoline and oil.

Ho Chi Minh City has also vowed to ensure market stable.

According to their managements, the volume of goods arriving remains normal at around 3,300 tonnes per night at the Thu Duc Wholesale Market and 4,160 tonnes at the Hoc Mon Wholesale Market in the city.

Retailers such as Saigon Co.op, Central Retail, Lotte Mart, and AEON Mall have stocked enough goods to ensure adequate supply and continue to take measures to safeguard the health of customers and staff amid the rising community incidence of COVID-19.

For instance, Saigon Co.op’s retail systems, including Co.opmart, Co.opXtra, Co.op Food, and Co.op Smile, have increased stocks of basic necessities such as sugar, rice, cooking oil, salt, fish sauce, meat, poultry eggs, and dry foods besides hand sanitisers, soaps and anti-bacterial cloth masks to ensure steady supply and prices for at least the next six months.

At all stores, customers are required to wear face masks, get their temperature checked and maintain social distance while shopping and waiting to pay.

Nguyen Anh Duc, general director of Saigon Co-op, said this time anti-epidemic measures have been stepped up because the outbreak is more threatening this time.

The supermarkets’ two key tasks now are to ensure food security and a safe shopping environment for people, he said.

Saigon Co.op and other retailers are working with suppliers of essential goods to offer discounts by turn on products to share the burden with consumers and minimise the increase in prices./.

Customers need more understanding about financial services

The need to increase awareness and understanding of customers’ financial services is increasing globally, and Vietnam – an emerging economy, is no exception, according to a report.

The information was released from a study of 2,000 global consumers released on May 27 by Mambu, a banking and financial services platform.

According to the State Bank of Vietnam (SBV)’s statistics in 2020, 70 percent of adults in the country had a bank account, but nearly half of them lacked access to credit. According to Agribank, more than 70 percent of the population is concentrated in rural areas, but access to modern banking services in these areas is very limited.

On the other hand, in recent years, thanks to the development of digital technology and the digital transformation process among banks, mobile banking applications have played an important role in financial inclusion. Banks have been able to reach customers in places without a physical bank headquarters or branches.

Cashless transactions in Vietnam increased by 75.2 percent in the first nine months of 2020, compared to the same period the year before. Online shopping grew exponentially, ranking third in Southeast Asia in terms of visits to online shopping apps in the second quarter of 2020.

The Government’s efforts to enhance financial services include aiming for 80 percent of adults to have a bank account by 2025 and piloting a mobile money programme for two years from 2021.

The above factors encourage people to learn and use financial services while promoting digital transformation among banks and credit institutions. Statistics from the SBV show that 94 percent of banks in Vietnam have gone digital or are planning to do so.

As well as banks, fintechs and telecoms firms are involved in digital banking in Vietnam. Instead of competing with each other, there’s increasing collaboration between technology companies and credit institutions.

New technology solutions are changing the financial service landscape in Vietnam, include new forms of online payment such as e-wallets, QR codes, digital banking products incorporating AI, data analytics and cloud computing.

Pham Quang Minh, General Manager of Mambu Vietnam said: “Technology solutions that leverage true software as services (SaaS), cloud-native and API-first platform allow banks to compose any desired product and service by assembling best-of-breed components and independently connecting them together. The ‘composable banking’ approach will help banks digitise quickly, flexibly, economically, provides a ‘customer-centric’ experience, and meet the constantly changing needs of customers in the 4.0 era.”

On a global scale, the report revealed both banked and unbanked individuals feel underserved, with 56 percent of banked customers claiming there are other services they should be able to access.

“With more than 1.7 billion unbanked adults globally, the data that’s usually reported points us to emerging markets and geographical barriers to access; however, the gap in accessibility on a global level should not be ignored,” said Elliott Limb, Mambu’s Chief Customer Officer.

“Personalisation is going to be key for banks if they want to avoid being sidelined by new entrants that give more inclusivity and access. Banks need to be using the technology available to understand their consumers’ habits and in turn, anticipate their needs, with hyper-personalised recommendations and services”./.

Agro-forestry-aquatic product exports enjoy trade surplus of 3.27 billion USD

Vietnam raked in 22.83 billion USD from exporting agro-forestry-aquatic products in the first five months of 2021, representing a year-on-year increase of 30.3 percent, reported the Ministry of Agriculture and Rural Development.

The country spent 19.57 billion USD on importing agro-forestry-aquatic products during January – May, up 51 percent year-on-year, resulting in a trade surplus of 3.27 billion USD.

Of which, the group of major farm produce earned 7.78 billion USD, up 13 percent. Meanwhile, major forestry and aquatic products brought home 7.06 billion USD and 3.24 billion USD, up 61.8 percent and 12 percent, respectively. The livestock industry recorded a 43.9 percent-growth, earning 166 million USD.

In the reviewed period, many products and groups of products witnessed increases in export values, including rubber, tea, rice, vegetables, pepper, cashew nuts, cassava and products from cassava, livestock products, tra fish, shrimp;,wood, rattan, bamboo and cinnamon.

Notably, although the pepper export volume decreased by 15.6 percent, but thanks to an increase in its average export price, the pepper export value still surged by 25.2 percent to 387 million USD.

The US remained the biggest importer of Vietnamese agro-forestry-aquatic products in the last five months, accounting for a market share of 24.6 percent. It was followed by China, Japan, and the Republic of Korea, with 22.6 percent, 6.6 percent and 4.9 percent, respectively./.

Cement stocks struggle despite surge in product price

While many stocks in the building materials sector like steel or plastic have surged recently, cement stocks are still hovering around a low price zone.

According to data compiled by the Department of Building Materials, Ministry of Construction, in the first four months of 2021, consumption of cement products is estimated to reach 34.58 million tonnes, up 16.5 percent year-on-year.

Of which, domestic consumption accounted for around 19.44 million tonnes, a slight increase over the same period last year, while exports of cement products jumped 65 percent over 2020 to 15.14 million tonnes.

Besides gains in consumption, many cement companies also raised product prices. Accordingly, Vicem Hoang Mai Cement JSC (HOM) has increased selling prices of all cement products by 30,000 VND per tonne, which apply for provinces including Thanh Hoa, Nghe An and Ha Tinh.

Bim Son Cement JSC (BCC) also raised its product prices by 30,000 VND per tonne from April 21. Hoang Long Cement JSC, Long Son Co., LTD and Duyen Ha Co., LTD increased their prices by 40,000 VND per tonne at the same time.

However, in the stock market, these companies’ performance was not as good as their product prices.

After positive responses to higher cement prices for a short time, cement stocks fell sharply since early April.

Ha Tien 1 Cement JSC (HT1) shares dropped more than 17 percent since April to trade at 15,300 VND per share on May 27.

Similarly, BCC shares tumbled over 18.5 percent during the same period to 10,100 VND per share on May 28.

After climbing for ten straight sessions in early April, Vicem Hai Van Cement JSC (HVX) shares plunged 37.5 percent to trade at 4,450 VND per share on May 27.

The market prices of most cement stocks are currently hovering around their par value.

Gains in cement selling prices will be reflected in the second quarter business results of cement companies, while the first quarter business results of some companies were poor, resulting in the appeal of cement stocks declining.

In the first quarter, Bim Son Cement posted an increase of 0.88 percent year-on-year in net revenue to 1.06 trillion VND, while its profit after tax declined by 61 percent to over 7.2 billion VND.

The company explained that its profit fell in the first quarter due to higher cost of goods sold, outweighing gains in revenues and falls in expenses for financial activities, sales expenses and general and administrative expenses.

Meanwhile, Ha Tien 1’s net revenue also rose slightly by 0.5 percent year-on-year to 1.74 trillion VND in the first quarter of 2021. But its profit after tax edged 9.5 percent down to 94.7 billion VND.

HT1 shares was eliminated from the portfolio of MSCIFrontier Markets Small Cap Index and the company’s leaders registered to sell a huge amount of stocks, which forced HT1 shares to enter a bear market./.

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

Global demand for goods is recovering and this is an opportunity for Vietnam to boost its exports of consumer and industrial products, according to the Ministry of Industry and Trade (MoIT).

The ministry forecasts that Vietnam’s import and export activities will continue to increase in the coming months as free trade agreements (FTAs) are gradually being implemented in a more comprehensive and effective manner.

Those agreements will continue to create conditions for Vietnamese goods to enter to partner markets with preferential tariffs, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Vietnam Free Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement (UKVFTA).

Besides that, export prices for many kinds of goods are also tending to increase, especially Vietnam’s key export commodities, according to the ministry.

However, Deputy Minister of Industry and Trade Do Thang Hai said import and export activities may be negatively affected by the COVID-19 outbreak in many localities, especially localities in the northern region with the largest trade value such as Bac Giang, Bac Ninh and Hanoi.

Meanwhile, Asia continues to be a hot spot with a rapidly increasing number of new COVID-19 cases, causing a series of countries and territories such as India, Japan, Taiwan, Indonesia and Thailand to promote measures to control the pandemic.

“In this situation, domestic enterprises must improve competitiveness and adaptability to overcome difficulties and seize opportunities,” Hai told chinhphu.vn.

The ministry has requested its agencies and departments, and Vietnam’s Trade Offices abroad, to provide updates on the COVID-19 pandemic which may affect trade and economic cooperation between Vietnam and other countries.

It has also proposed measures on maintaining and developing export markets and supporting local businesses to find and import raw materials and components for stable production of export products in the future.

For the exports of farming, forestry and seafood products, the industry and trade departments of Hanoi, Hai Duong, Lang Son, Quang Ninh and Lao Cai should consider arranging more working hours, including working on Saturdays, Sundays and holidays, based on the issuing of the certification of origin (C/O) for those export products, especially agricultural products in localities affected by the pandemic such as lychees in Bac Giang and Hai Duong provinces.

Meanwhile, the import-export departments in the northern border areas are asked to closely monitor the customs clearance of goods at the border gates and report signs of goods stuck at the border gates to the ministry.

According to the ministry, the total trade value of goods in the first five months of 2021 increased by 33.5 percent year on year to 262.25 billion USD, although trade activities and production of export goods in May were affected by the fourth outbreak of the COVID-19 pandemic.

Specifically, in the first five months of 2021, the export value of goods was at 130.94 billion USD, up 30.7 percent over the same period last year.

Especially, the group of 22 items with export value of over 1 billion USD continued to hold stable exports, accounting for 87.3 percent of total export value. Of which, six items achieved export turnover of over 5 billion USD.

The group of phones and components had the largest export value of 21.9 billion USD, up 19.6 percent over the same period last year, accounting for 16.7 percent of total export value.

Following were electronics, computers and components (19.5 billion USD, up 26 percent); machinery, equipment, tools and spare parts (4.9 billion USD, up 74.8 percent); textiles and garments (12.2 billion USD, up 15 percent); footwear (8.5 billion USD, up 26.4 percent); and timber and wood products (6.6 billion USD, up 61.3 percent).

The United States continued to be Vietnam’s largest export market with a turnover of 37.6 billion USD, up 49.8 percent over the same period last year; followed by China with 20.1 billion USD, up 26 percent.

Other large export markets of Vietnam included the EU (16.1 billion USD, up 20.8 percent); ASEAN (11.5 billion USD, up 23.6 percent); the Republic of Korea (8.9 billion USD, up 17.1 percent); and Japan (8.4 billion USD, up 7.7 percent).

The ministry also reported that import activities increased strongly in the first five months thanks to the production expansion of the manufacturing sector. That was a good sign showing the recovery of domestic consumer demand.

In the first five months of 2021, Vietnam’s import turnover of products was estimated at 131.31 billion USD, up 36.4 percent over the same period last year./.

Top 50 public companies in 2021 announced

Vinhomes JSC, Hoa Phat Group JSC, Mobile World Investment Corporation and Vietcombank are among the top 50 public companies in 2021 announced by Vietnam Report.

Many other businesses operating in real estate, food production and processing, construction materials, and telecom electronics have also been named in the list that was made on the basis of turnover, profits, assets and market capitalisation of the enterprises.

Vietnam Report has also assessed the prestige and operational efficiency of the firms through investors, experts and market, as well as their communications prestige.

Vietnam Report Director Vu Dang Vinh said the public firms played a central role in the stock market that is developing strongly.

According to a study by the company, up to 72.73 percent of experts and public companies said the market will continue to grow in the time ahead, and 52.38 percent believed that the VN-Index will expand 20-30 percent./.

ODA disbursement in agricultural projects hits 31.33 mln USD in five months

The disbursement of official development assistance (ODA) at the Ministry of Agriculture and Rural Development (MARD) this year was estimated at 718.3 billion VND (31.33 million USD) as of May 31, or 25.2 percent of the target.

The ministry has attempted to remove bottlenecks in each project and speed up the process.

Some projects have seen adjustments to policies and loan agreements resulting in implementation and capital disbursement, in particular Sustainable Agricultural Transformation (VnSAT) and the Forest Sector Modernisation and Coastal Resilience Enhancement Project (FMCR).

The ravages of COVID-19 have also been an obstacle to the importation of machinery and equipment and the hiring of foreign consultants and contractors.

Most forestry projects require large amounts of time for training stakeholders, according to acting head of the Management Board for Forestry Projects Do Quang Tung.

Forestation is also hampered by COVID-19, he noted.

To speed up disbursement in ODA projects, MARD has asked relevant agencies to report to the Prime Minister on reciprocal capital replacing foreign capital for value-added tax payments.

Close to 2.85 trillion VND in foreign capital has been allocated to MARD in 2021, which has been distributed to 16 of its projects since the end of last year./.

Vietnamese goods able to expand presence in UK under trade deal

The UK-Vietnam Free Trade Agreement (UKVFTA), which officially took effect on May 1, is believed to herald a new era for Vietnamese goods to gain a foothold in a market with strong purchasing power, according to the Dau tu (Vietnam Investment Review) newspaper.

Vietnam’s exports to the UK rose nearly 27.4 percent year-on-year in the opening four months of 2021, to 1.94 billion USD, data from the General Department of Vietnam Customs shows, which is considered an impressive result amid COVID-19’s impact on global trade.

The UKVFTA, which temporarily came into force on January 1 this year, is hoped to create more favourable conditions for exports to the UK now it is officially in effect.

During the first five months of this year, exports to the UK grew more than 20 percent year-on-year to about 2.4 billion USD.

The UK is currently Vietnam’s third-largest trade partner in Europe.

Data from Vietnam Customs also shows that bilateral trade reached 6.6 billion USD in 2019, including 5.76 billion USD worth of exports from Vietnam, placing the UK ninth among the country’s main export destinations.

Trade revenue fell slightly last year to 5.642 billion USD, due to COVID-19.

Vietnamese goods currently make up no more than 1 percent of the UK’s total annual imports of over 700 billion USD, the newspaper pointed out.

For example, although Vietnam supplies the largest volume of coffee to the UK, the value accounts for just 10.9 percent of the UK’s total imports, ranking Vietnam fourth after France, Germany, and Brazil.

Dau tu cited Nguyen Canh Cuong, Trade Counsellor of Vietnam to the UK, as recommending that businesses further tap into the market since Vietnamese coffee will become more competitive thanks to the UKVFTA, under which most coffee products from the country will benefit from an import tariff of zero percent.

Meanwhile, the UK imported over 1.6 billion USD worth of fruit and vegetables in 2019, with only some 10 million USD coming from Vietnam.

Under the new trade pact, fruit and vegetables from Vietnam will receive a considerable advantage, as 94 percent of the 547 tariff lines on fruit, vegetables, and related products will be slashed to zero percent.

Cuong said that to expand their market share, fruit and vegetable exporters should sustainably meet the UK’s legal regulations on food safety, plant quarantine, and origin traceability.

Anh Dao Carrick, a trade specialist in the UK, suggested Vietnamese enterprises join hands with British distributors to develop their own brands and access the market, work to meet importers’ strict technical and quality requirements, and pay due regard to labelling issues./.

Legal documents for UKVFTA implementation to be released

The Ministry of Industry and Trade (MoIT) will finalise and issue a number of legal documents needed for the implementation of the UK-Vietnam Free Trade Agreement (UKVFTA) in 2021.

Under a plan approved recently by Minister Nguyen Hong Dien, the minisry will build particular market development programmes for Vietnamese products with strength and potential for export to the UK, while providing guidelines and support to enterprises so they clearly understand the methods of approach and make the best use of advantages brought about by the deal.

The ministry will continue increasing online trade promotions, which have been applied effectively for the realisation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), thus presenting more opportunities for Vietnamese firms to engage deeply in production and value chains involving UK businesses and expanding their links regionally and globally.

It will also speed up the building, amendment, and issuance of legal documents relating to the implementation of commitments within the UKVFTA with a suitable roadmap.

Training courses will be organised and publications released introducing and analysing the deal, while help will be given to businesses and organisations to participate in large-scale trade promotions in the UK and such promotions will be increased through e-commerce platforms. The origin tracing app will be maintained to serve exporters.

At the same time, the MoIT will deal with all matters arising during the implementation of the deal, according to the plan./.

Industrial developers winning big from rising rentals

Industrial properties continue to be a “bright spot” in Vietnam’s real estate sector, with mounting rental enquiries and increased capital market activity.

2021 is forecast to be another bumper year for the sub-sector, with Vietnam continuing to scoop up global manufacturing relocations, and industrial developers with large land banks are looking forward to an even brighter future, according to the latest report from real estate consultants Savills Vietnam.

The report stated that average occupancy rates have increased significantly since 2018. In the north, average occupancies last year were up to 90 percent in Hanoi, 95 percent in Bac Ninh, 89 percent in Hung Yen, and 73 percent in Hai Phong. The rate in Ho Chi Minh City was 88 percent, Binh Duong 99 percent, Dong Nai 94 percent, Long An 84 percent, and Ba Ria-Vung Tau 79 percent.

Vietnam now has about 260 operational IPs and 75 others under construction. The national occupancy rate averages over 70 percent.

The sudden increase in rental enquires for land, ready-built factories, and warehousing has been accompanied by price escalations in IPs near major cities. In the north, prices in Hanoi of 129 USD per sq m were up 13.1 percent year-on-year, of 95 USD in Bac Ninh were up 9.2 percent, of 83 USD in Hung Yen were up 6.4 percent, and of 96 USD in Hai Phong were up 3.2 percent.

In 2020, HCM City saw rental prices of 147 USD per sq m, while in other southern industrial areas, the price in Binh Duong of 107 USD per sq m was up 4.9 percent year-on-year, of 98 USD in Dong Nai was up 6.5 percent, and of 65 USD in Ba Ria-Vung Tau was up 18.1 percent.

Rising demand for industrial properties gave a major push to overall performance by developers. The Kinh Bac City Development Holding Corp (KBC) reported revenue in excess of 2 trillion VND (87 million USD) in the first quarter of 2021, almost quadrupling the figure in the same period last year. Of this, over 1.9 trillion VND came from land rentals and property transfers, a three-fold increase year-on-year.

The Sonadezi Corporation’s revenue rose 14 percent from January-March to over 1.26 trillion VND, with more than 365 billion VND from industrial real estate, Savills said, adding that other developers such as the Tan Tao Group (ITA), the Becamex Infrastructure Development JSC (IJC), and the Nam Tan Uyen JSC (NTC) also saw high growth in profit during the period.

Vietnam has been drawing up plans since last year for the heavy investment being channelled into developing infrastructure and industrial parks to attract more companies in supply chains. Various incentives, including corporate tax exemptions, have been adopted to acquire a competitive advantage over rivals in the region./.

Ben Tre to outlay nearly 28.5 trillion VND on transport infrastructure, logistics

The Mekong Delta province of Ben Tre has earmarked over 28.46 trillion VND (1.24 billion USD) for the development of local infrastructure and logistics services in the 2021-2025 period.

The sum will be poured into 89 projects, including upgrades to National Highways 57 and 57B and the North-South Expressway sections serving the local Phu Thuan Industrial Park and Phong Nam industrial cluster.

In the subsequent period of 2026-2030, more than 29.91 trillion VND will be invested in 41 transport and logistics projects in the province, including those involving the completion of a coastal road and the HCM City-Tien Giang-Ben Tre-Tra Vinh Expressway.

Local authorities are also calling for more than 1.47 trillion VND in business investment to develop ports at local industrial parks and clusters.

In 2026-2030, it will channel money into in a new deep-water port in Binh Dai district and continue upgrading and expanding existing ports.

According to the Chairman of the provincial People’s Committee Tran Ngoc Tam to realise these goals, Ben Tre will deploy a raft of solutions on institutions, capital, land, human resources, and communications.

The province’s funding for such development in the 2016-2020 period totalled 82.9 trillion VND./.

Infrastructure boosts development of Hai Phong

Improved transport and tourism infrastructure has boosted the socio-economic development of Hai Phong city over the past five years.

According to Chairman of the municipal People’s Committee Nguyen Van Tung, in 2021-2030, the city plans to build more than 100 bridges with a total investment of some 83 trillion VND (3.6 billion USD).

In 2015-2020, Hai Phong built 45 bridges, including the Tan Vu-Lach Huyen bridge – one of the longest sea bridges in Southeast Asia with a length of about 16km.

The bridge not only shortens the travel time from Hai Phong to Cat Ba island but also serves as a trade connection between the city and other countries through Lach Huyen port.

Another bridge that has connected traffic between Hai Phong’s inner city and Thuy Nguyen district, as well as a tourist highlight of the port city, is Hoang Van Thu bridge belonging to the technical infrastructure project in the new urban area of northern Cam river.

This bridge is known as the most beautiful bridge in Hai Phong.

The Hoang Van Thu bridge’s operation is one of the steps contributing to the completion of the new city centre planning.

In addition to the outstanding development of its road transport system, Hai Phong has also strengths in terms of its seaports.

Lach Huyen deep-water seaport was put into operation in 2019 and became the first port in the northern region to receive large tonnage ships of 12,000TEU and 132,000 DTW transporting goods directly to Europe and the Americas instead of transiting via foreign ports as before.

Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc said: “With the advantage of being the main gateway to the sea of the whole northern region, Hai Phong has a strategic location playing a vital role in the development of the northern key economic regions.”

“In particular, Hai Phong holds a key position in the ‘Two Corridors – One Economic Belt’ Co-operation between Vietnam and China as well as is an area with strategic relationships with major growth poles in East Asia and Southeast Asia,” Loc added.

The city’s economic indicators last year and the first four months this year, increased by 1.5 to 2 times compared to other localities nationwide despite the complex developments of the COVID-19 pandemic.

Minister of Industry and Commerce Nguyen Hong Dien said: “Hai Phong is currently a ‘fertile land’ for both domestic and foreign investors”.

A representative of the Hai Phong Economic Zone Management Board said that as of April this year, the city has 770 projects with a total investment capital of more than 20.669 billion USD.

From the beginning of this year, the city saw 12 new projects registered with a total investment capital of 87.81 million USD and 20 projects which increased their capital by a total of 914.55 million USD.

The projects are mainly in the processing and manufacturing industries.

In 2021-2025, the city plans to establish 15 new industrial parks with an area of more than 6,400 hectares.

In addition to attracting investment, the development of transport infrastructure has helped make tourism a key economic sector of the port city.

According to Vice Chairman of the city People’s Committee Le Khac Nam, before 2012, Hai Phong’s tourism industry always failed to meet its targets but from 2013, the number of tourists coming to the city has increased year by year, especially in 2016-2021, when the number of tourists increased by an average of 20 percent per year.

“In 2021-2025, Hai Phong identified tourism as one of the three pillars of the city’s economic development,” said Nam.

“To develop the industry, the city focused on infrastructure to attract big investors in this field,” he said.

By the year 2025, there will be six more 5-star hotels put into operation, raising the number of 5-star hotels to 10.

Cat Ba island, coastal Do Son district and Vu Yen island are three key tourist destinations of the city, he added./.

Ben Tre’s shrimp sector targets production value of 1 billion USD by 2025

The production value of the shrimp industry in the Mekong Delta province of Ben Tre is to surge by an average of 41.1 percent each year to 2025 and reach 1 billion USD.

According to a plan to develop the sector, issued recently by the provincial People’s Committee, the locality will develop 4,000 ha of brackish water shrimp aquaculture area applying high technology by 2025, to promote the sustainable development of the fisheries economy in particular and the coastal province’s socio-economic development in general.

Chairman of the provincial People’s Committee Tran Ngoc Tam said Ben Tre aims to modernise its industrialisation-oriented marine shrimp farming sector and turn it into a large commodity production sector with high levels of competitiveness, productivity, and quality, thus creating breakthroughs in the stable and sustainable development of the fisheries economy and, most importantly, contributing to the province’s GDP growth.

To that end, local authorities have implemented solutions such as re-organising production, improving the quality of young marine shrimp, prompting the research and application of science and technology in production, developing infrastructure, managing the environment, and developing shrimp processing activities.

Attention will be paid to developing concentrated and large raw material production areas and expanding effective aquaculture models to help local farmers improve their earnings.

According to the Deputy Director of the provincial Department of Agriculture and Rural Development Nguyen Van Buoi, Ben Tre currently has nearly 1,700 ha of brackish water aquaculture areas applying high technology, with an annual average yield of 36 tonnes per ha and profit of 2.1-2.4 billion VND (91,400-104,560 USD) per ha per year.

Brackish water shrimp farming has been developing strongly in Ben Tre, especially intensive and semi-intensive shrimp cultivation.

According to the department, as of 2020, the locality had exploited 45,747 ha of aquaculture area out of 50,000 ha of potential aquaculture area, including 36,000 ha of intensive and semi-intensive marine shrimp farming areas, with total production reaching some 70,000 tonnes.

Infrastructure in the province’s aquaculture areas has been gradually improved, especially road and irrigation networks, basically meeting current demand./.

Hanoi to prepare housing development programme for 2021-2030

The Hanoi People’s Committee has issued a decision approving the outline for a task of devising the capital’s housing development programme for 2021-2030, with vision towards 2040.

The programme aims at realising the Resolution of the Hanoi Party Organisation’s 17th Congress for the 2020-2025 tenure and identifying new criteria for the work in line with the local master plan for socio-economic growth to 2030 approved by the Prime Minister.

Accordingly, the city will conduct surveys and assessments regarding the current situation of commercial housing, social housing, resettlement housing, official residence and private housing in urban and rural areas. It will set goals for housing development and make forecasts on demand for housing among social welfare beneficiaries.

The programme will identify local demand for houses and land areas to build different types of housing in the city and links between housing and urban development, among other things.

Hanoi hopes to build a system of suitable solutions to ensure sustainable, modern, and climate change-adaptive housing development, as a basis for the management and implementation of related projects, investment attraction, and the healthy growth of the real estate sector./.

HCM City seeks cashless payment for company transactions

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./.

Tra Vinh shrimp output up over 6,000 tonnes

Total salt and brackish water aquaculture output in the Mekong Delta province of Tra Vinh reached 28,000 tonnes in the first five months of 2021, with shrimp output of over 20,000 tonnes, an increase of 6,000 tonnes year-on-year.

According to General Director of the Tra Vinh Department of Aquaculture Nguyen Van Quoc, total output surged thanks to favourable weather conditions and expanded breeding areas, while shrimp farmers strictly complied with farming schedules, exerted better control over breeding stocks, and improved their techniques.

Shrimp prices increased 10,000 to 15,000 VND per kg in April, allowing farmers to post a handsome profit. However, as the pandemic has again broken out, the market for shrimp has contracted, causing prices to drop. In order to cope, farmers have decided to maintain production and wait for shrimp exports to pick up.

Tra Vinh is urging local aquaculture processing businesses to resume production and seek new markets for exports to ensure sales./.

Wood exports hit record high despite COVID-19 in five months

Exports of wood and timber products surged 42 percent year-on-year to reach a record high of over 6.42 billion USD in the first five months of 2021 despite global supply chain disruptions caused by the COVID-19 pandemic, according to customs data.

Of the figure, 4.96 billion USD came from wood furniture, up nearly 57 percent against the same period last year.

Domestic producers have adapted well to the “new normal” by stepping up digital trade meetings with foreign buyers in order to boost sales, said Deputy Minister of Agriculture and Rural Development Ha Cong Tuan.

There is plenty of room for the global wood and furniture market to grow, said Bui Chinh Nghia, vice director of the Vietnam Forestry Administration under the Ministry of Agriculture and Rural Development.

Vietnam now makes up 9 percent of the global market, he noted, stressing that with the current growth rate, Vietnam will soon rise to the fourth or even third places among the world’ largest exporters of wood products from the current fifth place.

According to several foreign importers, COVID-19-induced social distancing orders and travel restrictions have forced people in many countries to work from home, triggering increasing demand for home furniture. Vietnamese furniture has been more and more favoured by importers as producers have strictly complied with rules of origin.

Insiders, however, warned that rising orders may cause troubles for Vietnamese producers as disruptions in supply of material wood remain./.

Veggie, fruit exports reach 1.77 billion USD during Jan-May

Vietnam’s export turnover of fruits and vegetables hit 1.77 billion USD in the first five months of 2021, a year-on-year increase of 18 percent, according to the Ministry of Agriculture and Rural Development.

In May alone, fruit and vegetable exports raked in 400 million USD, a surge of 48.3 percent compared to the same period last year.

China currently remained the top importer of fruits and vegetables from Vietnam. These products are also witnessing positive signs in other major markets such as the US, Japan, Russia, and Australia.

To boost the export of fruits and vegetables, the ministry assigned the Director of the Plant Protection Department to negotiate to open 19 markets for 20 types of products, assist in handling, negotiating and removing technical difficulties arising in the export process, coordinate with localities to build codes for growing areas and export establishments to ensure traceability and meet requirements of major importers./.

Gov’t responds swiftly to COVID-19 economic impacts: ADB official

The Vietnamese Government has responded swiftly to the COVID-19 economic impacts, which was supported by strong fundamentals, thus ensuring the economy’s resilience, said Asian Development Bank (ADB) Country Director for Vietnam Andrew Jeffries.

Jeffries made that statement in a recent interview granted to the Vietnam Government Portal (VGP) regarding Vietnam’s macro-economic prospects amidst the COVID-19 pandemic outbreaks.

Jeffries highlighted that Vietnam’s economic growth is expected to growth by 6.7 percent in 2021 and 7.0 percent in 2022 – strong and steady growth made possible by Vietnam’s success in containing the COVID-19 pandemic.

Inflation will be under control, despite an expected rise to 3.8 percent this year and 4.0 percent in 2022 due to rising international oil prices on the global economic recovery and increased domestic consumption, he added.

The ADB Country Director referred to the drivers of this growth, including industry, driven by export-oriented manufacturing, increased investment (private and public investment) given accommodative fiscal and monetary measures, and expanding trade, thanks to the faster-than-expected recoveries in China, the US, and Vietnam’s participation in 15 major free trade agreements involving all advanced economies.

Regarding the Vietnamese Government’s support packages for enterprises and people affected by COVID-19, he asserted that the Government has responded swiftly to the COVID-19 economic impacts, which was supported by strong fundamentals, thus ensuring the economy’s resilience.

The accommodative monetary policy through key interest rate cuts together with the implementation of credit package and fiscal support measures have provided breathing space to affected businesses, including small- and medium-sized enterprises (SMEs).

However, the credit support has been mainly arranged and provided by commercial banks, said Jeffries, adding that the bulk of the increases of liabilities have been shouldered by the commercial banks, but they still have to apply required lending standards, especially when the balance sheets of affected firms are being deteriorated.

Without risk sharing by the Government, banks may have been reluctant to provide more loans to affected firms, he emphasised.

Mentioning Vietnam’s measures to support businesses and people to overcome negative impacts of COVID-19, Jeffries said that the State Bank of Vietnam has instructed the banks to extend the implementation of credit support measures to the end of 2021.

The Government also allowed extending the deferral of taxes and landing rental in 2021 to further reduce the shock’s impacts and support economic recovery, he said, stressing that the long-term economic recovery is being fleshed out by the Government.

However, he supposed that the support was mainly in the form of deferral of taxes and land rental, and size of the support remained modest, as compared with other countries with fiscal support of up to 15 percent – 20 percent of the GDP, like in France, the UK or Singapore.

Among others, the emerging long-term economic priorities after the COVID-19 are the imperatives to build an economy which is resilient to internal and external shocks which have become more frequent in recent decades; broad-based that can help reduce disruptive impacts from external crisis; and digitally able to strengthen economic competitiveness and efficiency, the ADB Country Director proposed.

An ADB study suggests that there is a huge impact of COVID-19 on income and poverty of Vietnamese households. For example, the impact of the pandemic will reduce household per-capita income on average by 9.8 percent, and the poorest income group will suffer a 10.2 percent income drop, while the poverty rate of households in the poorest income quintile will rise by 40 percent.

There will be an additional 1.7 million poor people due to the pandemic, and those living in rural, remote areas and ethnic minority people will be more severely affected.

Cash transfer in Resolution No. 42/NQ-CP dated April 09, 2020 assistance for people affected by the COVID-19 pandemic should be a short-term solution to over income shock, said Jeffries.

A more sustainable long-term strategy should be to help the poor and vulnerable to diversify their livelihoods through, for example, short-term vocational training and improved access to microfinance for establishing new businesses, he suggested.

In short-term, Jeffries indicated that the major downside risks are the pandemic re-emerging from new coronavirus variants and delays in the Government’s vaccination plan.

A faltering global COVID-19 vaccine rollout could have an immediate impact on Vietnam being able to return to its strong pre-pandemic growth path given the country’s reliance on external demand.

The fast revival of domestic private investment may also heighten the risk of asset bubbles if credit is not channeled to productive sectors.

Meanwhile, in the medium and long-term, main challenges facing Vietnam include climate change impact, unfinished reforms (financial sector reform and SOE reform), and low labor productivity, he underlined.

The ADB Country Director recommended Vietnam to reset the growth momentum to achieve green recovery in the medium-term and green growth in the long-term, given the daunting impact of climate change on Vietnam in the decades to come.

Strengthening institutional efficiency is the key to unlock the private sector’s potential to support growth, he said.

Accomplishing unfinished business reforms (financial sector reform, and SOE reform), improving the quality, transparency, and enforcement of laws and regulations, and simplifying businesses conditions are all critical to improve institutional efficiency for private sector development, Jeffries advised.

He stressed the significance of promoting digital transformation to improve productivity by investing on education, technology, and innovation./.

VNR faces difficulty due to drop in passengers

Vietnam Railway Corporation (VNR) announced that its revenue in the first five months of 2021 decreased strongly to only 51.4 percent of the figure of the same period last year, due to the impact of the COVID-19 pandemic.

The railway served about 1.147 million passengers, a reduction of 35.4 percent compared to the same period last year, bringing in over 400 billion VND (17.4 million USD) in revenue.

In May, which saw the peak of COVID-19 outbreaks in the latest resurgence wave, the number of passengers was only by 132,300, equal to 48.4 percent of the corresponding figure last year. As a result, revenue from passenger transport stood at 44.7 billion VND (1.9 USD), equivalent to 55.4 percent of the figure of the same period last year.

According to VNR, a decline in revenue and demand for transportation and travel is attributable to travel restrictions prompted by outbreaks of COVID-19 in many localities across the country.

The VNR curtailed most of its operations in May. It is currently operating only one train on the Hanoi-Ho Chi Minh City route.

Also due to the COVID-19 resurgency, more than 11,300 tickets were returned on the occasion of the Reunification Day (April 30) and May Day (May 1) holidays, worth about 4 billion VND (174,900 USD)./.

Ministry seeks to boost consumption of farm produce

Ministries and agencies needed to conduct procedures in good time to help farmers and businesses know how and where they can get said certificates for their farm produce, he noted.

The deputy minister said businesses only needed the health sector to issue a certificate of eligibility for agro products circulation. Once traders show the certificates, traffic police would let them go to ensure farm produce is shipped quickly.

Nam also asked the Ministry of Foreign Affairs to work with Chinese partners to temporarily allow the use of “vaccine passports” for drivers specialised in driving agricultural products and goods between the two countries to reduce costs for businesses.

Hoang Anh Tuan, Deputy Director of the Domestic Market Department under the Ministry of Industry and Trade, requested traders to follow measures on pandemic prevention and control to ensure circulation of goods.

The Ministry of Industry and Trade has issued documents to instruct businesses to work together to ensure supply and demand with the use of modern trade channels and e-commerce to promote the consumption of farm produce.

Nguyen Quoc Toan, Director of the Agro Processing and Market Development Authority under the Ministry of Agriculture and Rural Development, said difficulties in transporting farm products between provinces were due to checkpoints for controlling the pandemic. Despite having a safety compliance certificate for COVID-19, all drivers and goods were inspected again, causing transport congestion and harming businesses.

Toan said he wanted ministries to review and conduct suitable measures on transport management to ensure pandemic prevention and business operations.

Vietnamese Ambassador to Spain join activities in Barcelona

Vietnamese Ambassador to Spain Hoang Xuan Hai led a delegation of the Embassy of Vietnam to join a host of activities in Barcelona city on June 5-8.

The ambassador attended a ceremony marking the 20th founding anniversary of Casa Asia, which was held under the chair of the Spanish Minister of Foreign Affairs and the Mayor of Barcelona.

Casa Asia, established in 2001, has hosted various exchange events between Spain and Asian nations, including Vietnam.

Hai and other ASEAN diplomats also joined a working session with leaders of the Barcelona Chamber of Commerce and Industry.

He informed the delegates of Vietnam’s socio-economic development in the recent past and affirmed the Government’s aspiration in improving business climate, in a bid to attract foreign investors.

The ambassador believed that the EU-Vietnam Free Trade Agreement (EVFTA), which took effect in August 2020, and the EU-Vietnam Investment Protection Agreement (EVIPA), will offer new chances for businesses of Spain and Vietnam.

The hosts spoke highly of Vietnam’s accomplishments, voicing a hope that the Vietnamese Government will further simplify administrative procedures and create a more optimal climate for investors.

Hai also attended a session with Vietnam’s Honorary Consul in Barcelona and overseas Vietnamese, during which he hoped that the Honorary Consul would serve as a bridge linking Vietnam and the Spanish city, and continue to support the Vietnamese community.

He also briefed the participants on the successful organisation of the 13th National Congress of the Communist Party of Vietnam, the elections of deputies to the 15th National Assembly and all-level People’s Councils for the 2021-2026 tenure; along with socio-economic development in the first five months and achievements and efforts made in COVID-19 prevention and control./.

Dong Nai to build more roads linked to Long Thanh Airport

The People’s Committee of Dong Nai province has approved investment plans for four local roads, most of which are directly connected to Long Thanh International Airport – a driving force for investment and economic development in the southern region.

Investment in those projects is expected to hit more than 7 trillion VND (304.3 million USD), excluding site clearance costs.

The provincial People’s Committee has assigned relevant units to prepare pre-feasibility studies, propose investment plans, review demand for land use and estimate compensation and clearance costs.

Capital for the road construction will be taken from the budget and the land funds along the two sides of the roads. The province has requested relevant districts coordinate with units involved to exploit the land funds and put potential land lots up for bidding.

Construction of the four roads will be conducted during 2021-2025.

Chairman of the provincial People’s Committee Cao Tien Dung said demand for transport connectivity in Dong Nai is a pressing matter as the airport is now under construction and is expected to be put into operation in 2025.

Roads directly or indirectly linked to Long Thanh will play an important role in the province’s development, as they can help bring into full play opportunities brought about by the airport.

The airport will be built in three phases over three decades, and is expected to become the country’s largest.

In the first phase, one runway with a length of 4,000 metres, taxiways, an apron, and a passenger terminal with other auxiliary works sprawling 373,000 sq.m will be built to serve 25 million passengers and handle 1.2 million tonnes of cargo each year.

The airport is designed to have four runways, four passenger terminals, and other auxiliary facilities to ensure a capacity of 100 million passengers and 5 million tonnes of cargo a year by 2040.

Covering a total area of more than 5,580ha, the airport will straddle six communes in Long Thanh district. It is expected to cost 336.63 trillion VND (14.5 billion USD), with the first phase requiring over 109 trillion VND./.

Agency banking model develops in rural, remote locations

The State Bank of Vietnam (SBV) is amending regulations related to the operation of agency banking to improve access to the banking system.

Agency banking is a type of branchless banking that allows traditional banks to extend their network of branches and services through authorised agents.

The model arrived in the country in recent years, especially since the Government issued the national comprehensive financial strategy in early 2020.

According to the SBV’s research, Brazil, Kenya, Mexico and India have all seen agency banking become an important tool to expand access to basic financial services and promote financial inclusion. Five years since Brazil launched the agents, the network has served 12.4 million new bank accounts.

The state bank said in Southeast Asia, Malaysia’s agency banking model uses the nationwide telecommunications network to expand the network of traditional banking services to customers in rural and remote areas at a low cost. The model also helps Malaysian banks save more than 80 percent of costs for setting up service points and 60 percent of transaction costs compared to the traditional bank branch network.

Banks intrigued

According to the latest Comprehensive Financial Report of World Bank released in 2018, 69 percent of adults in Vietnam were unbanked and relied on cash while the rate in the world was 31.5 percent at the same time.

Meanwhile, the national strategy of financial services sets the goal to have at least 50 percent of communes accessing financial service points and 80 percent of adults having transaction accounts at banks or other institutions by 2025.

Experts reckon the low rate of bank accessing in Vietnam is a big chance to develop banking agents across the country.

By the end of 2017, the SBV piloted agency banking in rural areas with three models.

MB Bank work with Viettel services, PGBank with Petrolimex sales points and Vietcombank with M_service Company, reaching 32,185 sales points.

More than 11 million transactions with a value of more than 81 trillion VND (3.49 billion USD) were recorded among some 6 million customers.

Outside of the SBV pilot, LienVietPostBank took advantage of post office locations to develop savings services, while Jens Lottner, CEO of Techcombank, shared the bank’s plan to work with Masan Group to take advantage of convenience stores to bring the bank’s financial products and services to a wider population.

Between 2020 and 2025, Agribank plans to set up a network of banking agencies and work with postal organisations, public administrations and microfinance projects to deploy low-cost, convenient, safe products for individual payment transactions.

Seeing the potential of the model, a SBV representative said there must be a legal corridor.

The SBV said completing the legal framework on agents was proposed in the national comprehensive financial strategy) to improve the level of access to financial services for people.

The central bank said it was amending other regulations related to the operation of the model, especially those on anti-money laundering/terrorist financing, regulations on electronic money and know-your-customer (KYC) processes.

CEO of TPBank Nguyen Hung said such regulations would need to go into detail to guide the establishment of agencies to provide banking services, such as regulations on approved and prohibited services, criteria to become authorised agencies and the form of operation.

Hung mentioned two main forms of authorisation used in Brazil known as full authorisation and credit authorisation, adding a fully authorised agent will provide a full range of services from receiving and forwarding application documents for opening a payment account, savings account, deposit/withdrawal transaction, transfer, payment as well as loan applications and opening credit cards. Meanwhile, a credit agency will only provide services on payment, borrowing and credit.

Taking another example of Bangladesh, Hung said authorised dealers can provide cash withdrawal/deposit services, support for small loan disbursement and debt collection/instalment, bill payment assistance, fund transfer assistance, balance queries, collect and forward applications for opening accounts, opening savings, loans and credit cards. However, they are not allowed to approve the decision to open card/loan accounts, conduct financial appraisals and conduct foreign currency transactions.

According to another financial expert, it is necessary to clarify the quality and capacity of organisations authorised to act as banking agents.

The agents must ensure that they meet all the standards of financial capacity, reputation, ability to meet commitments under adverse conditions, ability to provide financial services based on technology and capacity of internal control, security assurance and anti-money laundering./.

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