Chủ Nhật, 12 tháng 6, 2022

 

VIETNAM BUSINESS NEWS JUNE 11

 14:44  

Pandemic drives need for technology adoption among firms


The COVID-19 pandemic has forced many enterprises to close, with workers losing their jobs and their lives seriously affected. However, through the use of technology, businesses can rebuild management and operations to accelerate and create breakthroughs, experts have said.

Nguyen Van Khoa, General Director of FPT, said that COVID-19 has made businesses rethink the role of technology. Many businesses have spent millions of US dollars to improve their management and operational capabilities.

Nguyen Tuan Hong Phuc, Deputy General Director of KPMG Vietnam, said that in addition to investing in technology, companies need to transform the way they operate.

Companies that do not adopt digital transformation will be left behind, he said, adding that many Vietnamese companies have advanced further than their peers in the same industry.

As perceptions of digital transformation change, there has been a positive spillover attributed to promotions run by state agencies, professional organisations and the efforts of enterprises, especially technology firms, of which FPT is an example.

According to Tran Huy Bao Giang, General Director of FPT Digital Co. Ltd, the COVID-19 pandemic has provided an opportunity for change and breakthroughs from which businesses can accelerate.

He said the company has carried out digital transformation projects across three pillars: business, technology and people.

FPT has also provided solutions to help enterprises automate processes and operations with high accuracy, optimise costs, improve labour productivity by 69 percent and create new experiences for customers.

Hanoi, Nghe An shake hands to promote economic development

A conference promoting the partnership between Hanoi and Nghe An took place in Vinh city of the central province on June 10.

As part of the "Hanoi - Nghe An Product Week 2022" from June 9 to 12, the event was organised by the Hanoi Promotion Agency (HPA) in collaboration with the Nghe An Centre for Investment, Trade and Tourism Promotion.

It was attended by leaders of departments and agencies of Hanoi city and Nghe An province as well as representatives from the promotion centres of provinces and cities, and foreign organisations and enterprises, among others.

At the conference, participants were introduced to the overall socio-economic situation and investment environment of Hanoi and Nghe An. This was also an opportunity for businesses from the two localities to boost partnerships in key and potential areas.

Consumption demand on recovery path: ministry

The Ministry of Industry and Trade (MoIT) has forecast that domestic consumption demand will recover and grow thanks to high vaccination coverage and the reopening of the tourism sector.

However, the ministry said the Government’s economic stimulus packages may put more inflation pressure on the domestic market.

Given this, the MoIT said it will continue to keep a close watch on supply and demand as well as prices of essential goods, while closely coordinating with other ministries and agencies to control prices and prevent market manipulation.

The ministry will also partner with press agencies to provide consumers with information about the supply of essential goods.

Although the increasing demand for goods and complex developments of global fuel and material prices have pushed up prices, the market is still under control, according to the ministry.

Total retail sales of goods and services in May reached 477.3 trillion VND (20.58 billion USD), up 4.2 percent month-on-month, and 22.6 percent year-on-year, it explained.

In the first five months of this year, the value was 2.25 quadrillion VND, a rise of 9.7 percent from the same period last year.

An Giang eyes over 20 trillion VND in investment

The Mekong Delta province of An Giang is aiming to attract more than 20 trillion VND (862.73 million USD) for at least 15 local projects in 2022 following a freshly signed investment promotion programme.

These projects are involved in transport, urban infrastructure, agriculture, industry, and trade-service-tourism.

Highlights among them include the 1,400m Nang Gu bridge costing about 688 billion VND; a 200ha centre for rice and freshwater aquatic products worth 9 trillion VND; the 100ha Xuan To industrial park worth some 2.5 trillion VND; and the 1,050ha Nui Cam tourism site that will cost approximately 7.5 trillion VND, among others.

In 2021, An Giang attracted 947 billion VND in 18 projects, including one foreign-funded project.

US mission seeks stronger cooperation with HCM City in clean energy

Vice Chairman of the Ho Chi Minh City People’s Committee Vo Van Hoan on June 10 hosted a reception for a delegation of US government officials and business representatives who are visiting Vietnam to find ways to boost bilateral ties in clean energy development.

The US mission was led by Deputy Assistant Secretary for Asia Pamela Phan of the International Trade Administration at the US Department of Commerce.

Welcoming the delegation, Hoan reiterated the southern largest economic hub’s desire to further step up cooperation and investment in areas of mutual interest between Vietnamese and US enterprises.

HCM City has taken drastic measures to promote green production, lifestyle and living standards so as to realise the Government’s commitments in greenhouse emission reduction, he said, noting that among the measures were using green energy in transport, encouraging factories at hi-tech and industrial parks to make transition to clean energy and motivating more people to shift to solar power.

The official pledged that the city stands ready to support foreign investors to do business in Vietnam in a long run and to assist US partners in accelerating cooperation and investment in clean energy.

Kien Giang channels resources into fishery infrastructure development

The Mekong Delta province of Kien Giang has set to concentrate its resources on developing fishery infrastructure during the 2020-2030 period serving the sustainable growth of the sea economy of the locality and the whole country.

The investment involves 11 fishing ports and 13 storm-shelter moorings for fishing vessels, of them five and three have already received funding, respectively.

Kien Giang has proposed the Government arrange medium-term investment capital worth 355 billion VND (15.31 million USD) for its remaining fishing ports during the 2021 – 2025 period. Of the sum, 155 billion VND will be sourced from the provincial budget.

The provincial development plan also covers the building of a big fishery centre.

In the first five months of 2022, Kien Giang’s fishing output totaled 220,686 tonnes, fulfilling more than 45 percent of the yearly plan.

Global uncertainties loom over textile-garment industry growth

Vietnam reported a year-on-year surge of 23.5 percent in exports of textile and garment to earn 18.7 billion USD in the first five months of this year in the midst of lingering market uncertainties coupled with rising prices of inputs.

A majority of textile-garment companies have orders to fulfill by the end of September, many are in the negotiation process to gain more for the rest of the year.

Nam Dinh Textile Garment JSC (Natexco), a major producer located in the northern province of Nam Dinh, has generated over 1.02 trillion VND (44 million USD) in revenue as of the end of May, up 23 percent from the same period last year, according to trade union president Doan Van Dung.

Viet Thang Corporation has been struggling to keep production going during the first quarter of the year, given that the Russia-Ukraine crisis has caused supply chain disruptions and a spike in input and fuel prices and logistics costs, according to Deputy Director-General Dau Phi Quyet.

Vietnam National Textile and Garment Group (Vinatex), one of the leading textile-garment manufacturers in the country, had impressive business performance since the start of this year with a 50-percent surge in revenue. But similar challenges could potentially put the brake on its growth over the remaining months.

Record inflation in decades are ravaging major economies, including the US, the EU and the UK, triggering rising inventories and declining purchasing power. This may have substantial effects on Vinatex’s performance, CEO Cao Huu Hieu said.

Vietnam enhances cooperation with France’s Auvergne-Rhône-Alpes

Vietnamese Ambassador to France Dinh Toan Thang made a working trip to the Auvergne-Rhône-Alpes region on June 9-10, aiming to strengthen post-pandemic cooperation with the French region.

Welcoming the ambassador, Philippe Meunier, Vice President of the Regional Council of Auvergne-Rhône-Alpes, hailed the positive results of cooperation in urban planning, public lighting, health care, and education – training between the French region and Vietnamese localities such as Dong Nai and Ho Chi Minh City.

The Auvergne-Rhône-Alpes region wishes to expand cooperation with Vietnamese localities in the fields of environmentally friendly green infrastructure, energy, medicine, as well as collaboration within the framework of the Francophonie, he said.

The French official called on Vietnamese localities to join the International Association of Francophone Regions (AIRF) and to attend Pollutech 2023 – Europe’s leading international exhibition on the environment.

During a meeting at the Lyon Chamber of Commerce and Industry (CCI Lyon), Philippe Valentin, President of CCI Lyon, emphasized that many member businesses of CCI Lyon such as Thuasne and Boehringer Ingelheim are currently doing very successful business in Vietnam. He expressed his desire to increase cooperation in the areas of Lyon businesses’ strength and Vietnamese partners’ demand.

Cai Mep port ranked 11th among the world’s most efficient container ports

According to the Container Port Performance Index 2021 report (CPPI 2021) developed and published recently by World Bank and S&P Global Market Intelligence, Cai Mep port of Vietnam was ranked 11th among the 370 most efficient container terminals/port clusters globally.
 
The CPPI report is developed annually to evaluate the worldwide seaport efficiency, based on criteria related to the total time needed for completing the loading and unloading container of each voyage at a port for the entire year.

Vietnam has several ports ranked in this list, in which, Cai Mep port ranked 11th by the "statistical approach" index - increased by 38 places compared to 2020 and ranked 13th by the “administrative approach” index– increased 5 rankings against 2020.

In Cai Mep – Thi Vai area, Tan Cang - Cai Mep International Terminal under Saigon Newport Corporation currently holds 40% of the market share, with 10 international service routes weekly connecting with North America, Canada, Europe and Inter Asia.

The data was provided by the world's 11 largest shipping lines for a total of 370 global terminals/port clusters.

Chinese market remains vital for Vietnamese wood

China is one of the leading five consumers of Vietnamese wood and wood products, with its imports accounting for between 10% - 12% of Vietnam’s total wood export value, according to wood processors and Forest Trends.   

The Vietnam Timber and Forest Products Association (VIFOREST) reports local businesses shipped over US$14 billion worth of wood and wood products abroad throughout 2021, with US$1.49 billion of this figure going to China.

Meanwhile, wood imports were valued at more than US$2.5 billion, including US$1.1 billion coming from the northern neighbour. 

Typically, Vietnam mainly focused on exporting raw wood coded HS44 to China, with more than 20 products making up approximately 80% of its total wood exports to China. Among them, wood chips represented a large proportion of the country’s total annual wood export turnover to this market.

In the other direction, the northern neighbour is the largest supplier of wood and wood products to Vietnam, accounting for between 25% and 37% of the country’s total annual wood imports. Local wood processors import more than 20 wood products from China, with the majority of them belonging to the HS44 group.

The Forest Trends report shows that Chinese investment in the Vietnamese wood industry remains relatively high, accounting for 17% to 35% of the total investment capital injected into the industry as a whole. In addition, the merge and acquisition (M&A) capital of Chinese enterprises makes up between 6% and 35% of the total M&A capital of FDI enterprises specialising in this industry locally.

Hanoi promotes IT application to increase farm produce consumption

The capital city of Ha Noi is promoting information technology (IT), including the use of QR codes, in traceability to increase the consumption of farm produce on e-commerce platforms.

Director of the Ha Noi Agricultural, Forestry and Fisheries Quality Management Sub-Department Nguyen Thi Thu Hang said that at present, Ha Noi's agro-food product traceability system had improved transparency in information for about 653 businesses with almost 11,000 sets of traceability codes for agricultural, forestry and fishery products.

IT application in production and consumption has also gradually improved the capacity of cooperatives and enterprises in terms of production and supply of products, according to Hang. Consumers can use smartphones to access the date, month of manufacture, expiry date and origin of goods.

Hoang Van Tham, director of Chuc Son Organic Vegetable Cooperative based in Chuong My District, Ha Noi, said at present, the connection and consumption of the cooperative's products are made synchronously with modern sales channels such as supermarkets and e-commerce trading floors.

The stamping of traceability has helped the cooperative stabilise the consumption of vegetable products on the market. The cooperative has supplied 3 tonnes of vegetables daily to many supermarket systems such as Big C and T-mart, large hospitals, and schools. It has gained VND11 billion per year.

Dang Thi Cuoi, director of Cuoi Quy Organic Vegetable Production Cooperative in Dan Phuong District, said that all vegetable products of the cooperative have QR codes to trace their origin.

This cooperative supplies vegetables to kindergartens in Dan Phuong District and the chain of Bac Tom clean food stores, and six wholesale markets in the region.

To promote the application of QR codes in the production and trading of farm produce, Dam Van Dua, director of Dong Cao General Service Cooperative in Me Linh District, said that Ha Noi's departments and sectors should continue to support cooperatives in applying IT in production and upload information about the origin of farm produce at the capital city's traceability websites.

EXIM Thailand opens representative office in HCM City, inks credit deal with BIDV

The Export-Import Bank of Thailand has agreed to provide the Bank for Investment and Development of Viet Nam with a credit facility worth US$100 million to use as working capital and support Thai exports to Viet Nam.

The deal was signed during the opening of the Thai lender’s representative office in HCM City on June 10.

Under the agreement, the two sides will share information that will help enhance Thai-Vietnamese trade and investment and business between their entrepreneurs.

There were still plenty of new opportunities in Viet Nam for Thai businesses in view of its population of almost 100 million and average economic growth prospects of close to 7 per cent a year.

Minister of Finance Arkhom Termpittayapaisith, who presided over the opening ceremony online, said Viet Nam had a clear strategy to promote the use of renewable energy to bring about energy security and lessen dependence on fossil fuels for power generation, and had relaxed investment rules and was offering investors privileges, particularly taxation breaks.

Viet Nam is Thailand’s second biggest trade partner in ASEAN.

Banks’ asset quality to remain safe thanks to large reserve buffers

Despite difficulties due to high inflation, declining net interest income (NIM) and rising bad debts, analysts say Vietnamese banks can overcome risks related asset quality thanks to their large reserve buffers and tight control in lending highly risky areas.

In a recent report, analysts at VNDirect Securities Company said the asset quality of banks has been somewhat affected due to impacts of the COVID-19 pandemic, of which the average non-performing loan ratio (NPL) in the first quarter of 2022 increased while the loan loss reserve (LLR) ratio decreased slightly compared to the end of the fourth quarter of 2021.

Specifically, the average NPL ratio increased to 1.5 per cent at the end of Q1 2022 from 1.39 per cent at the end of Q4 2021, of which the potentially irrecoverable debts increased slightly to 0.58 per cent from 0.51 per cent.

Total outstanding loans of 15 listed banks by the end of Q1 2022 increased by 6.7 per cent compared to the beginning of the year while bad debts increased by 11.4 per cent. The five banks with the lowest NPL ratio include Techcombank (0.67 per cent), Vietcombank (0.81 per cent), ACB (0.82 per cent) and MBBank (0.99 per cent).

The increase in bad debt in the coming months is also noteworthy when Circular 14, which allows banks to reschedule the payment time of COVID-19 affected debts, will expire at the end of June 2022. According to the SBV, if including the rescheduled debts and those sold to the Vietnam Asset Management Company (VAMC), the bad debt ratio of the banking system could reach up to 7.3 per cent, equivalent to that in the 2016-17 period.

Property market faces serious liquidity issues: conference

With the real estate market facing liquidity problems, analysts have called for the Government and banking industry to create a mechanism that enables property developers to borrow and issue bonds.

Speaking at a seminar on capital sources for the real estate market yesterday, Le Hoang Chau, chairman of the HCM City Real Estate Association Minh, said, “The market is facing serious liquidity problems.”

Businesses’ own funds account for only 15-20 per cent while the remaining 80-85 per cent come from bank loans, bond issuance, home buyers, and foreign investment, he said.

Dr Dinh Trong Thinh of the Academy of Finance said the tightening of corporate bond issuance should be done with a road map, slowly and step by step. “If the brakes are applied too suddenly, it would cause shocks to the market and risks to the overall economy.”

Le Thanh, chairman of the Green Economy Institute, said the property market contributed 14 per cent to the country’s GDP in 2019-21 and had a spillover effect on some 40 other sectors such as construction, processing, tourism, accommodation and catering, and finance and banking. In April the central bank started tightening credit for the real estate sector, he said.

According to the Ministry of Construction, as of the first quarter of this year there were only 24 completed real estate projects, or half the number in the previous quarter and a year earlier.

The number of projects eligible for sale was only 56, down by two thirds from the previous quarter, and the low supply pushed prices up dramatically, he said.

Dao Minh Tu, deputy governor of the State Bank of Viet Nam, said the focus was on controlling credit risk to ensure market transparency and preventing a bubble. But lenders would only tighten credit to high-risk segments to prevent speculation, but not to segments like housing for workers and the poor, he assured.

At the end of April total outstanding loans to the sector was VND2.3 quadrillion, up 10.19 per cent from the end of 2021, accounting for 20.44 per cent of total outstanding loans. 

People will benefit from limited-term apartment ownership: expert

In the controversy over limited-term apartment ownership, some experts see positives and say it could change the situation of slum areas and reduce housing prices.

In the draft of the revised Housing Law, the Ministry of Construction (MoC) offered a proposal with two options for apartment ownership: from 50 to 70 years, or according to the life expectancy of the apartment building. In the second option, depending on the grade of the project, the buyer will be given ownership for the corresponding term.

Phan Cong Chanh, a real estate expert, said: “Owning an apartment with a term of 20, 30 or 50 years is popular in many countries, with the aim of securing land funds and diversifying housing types while ensuring the safety and development of people's lives.”

Meanwhile, Nguyen Van Dinh, vice chairman and general secretary of the Viet Nam Real Estate Brokers Association, said:” “If the proposal of a limited-term apartment building is applied, the psychology of apartment speculation will slow down. At that time, the apartment becomes a consumer asset, not a savings asset, and apartment buyers will be hesitant because using the house is a liability.”

Chairman of SBLaw Law Firm Nguyen Thanh Ha said that many countries in the world such as the UK, the US, China, and Singapore have regulations on apartment ownership for a limited time.

Ha gave an example in Singapore, in the first phase, this country stipulates ownership of apartments for only 30 to 50 years. After that, when the quality of the work gradually improved, the state extended the apartment ownership period to 70 years, and with new construction zones today the "life expectancy" was raised to 99 years.

In China, the constitution of this country regulates the purpose and duration of land use with regulation of 40-70 years. The life of the project has a limited time, and the issuance of a pink book for a limited-time apartment is also used.

Nguyen Manh Khoi, deputy director of MoC’s Housing and Realty Market Management Department said in Viet Nam, there are many different opinions regarding the time limit for apartment ownership.

According to Nguyen Quoc Khanh, chairman of G5 Real Estate Investment Joint Stock Company, the proposal could help void degraded collective areas that could not be renovated.

Deputy Minister of Natural Resources and Environment, Dang Hung Vo said many old apartment buildings in Thanh Cong and Nguyen Cong Tru needed renovation but the residents would not accept the compensation offered by the investor so they stayed as unsafe areas in the capital.

Payment via bank transfer: compulsory for real estate transaction, ministry proposes
 
The Ministry of Finance has proposed a regulation be brought in to ensure payments for all real estate transactions are carried out via bank transfers.

The suggestion was made to prevent tax avoidance in the transactions of real estate assets through the declaration of selling prices much lower than the actual cost.

The ministry said that conducting payments via bank transfers would help ensure transparency and improve tax management.

Minister of Finance Ho Duc Phoc said during a recent session of the National Assembly that prices for tax payment in real estate transactions were often declared much lower than the actual transaction prices to lower the amount of tax paid.

There were cases which the prices for tax declaration were just about VND500 million, but the real transaction prices were VND10 billion, 20 times higher. In some cases, the gap was even 40 times, Phoc said, adding that on average, the declared prices were around six times lower than the actual transaction prices.

Under the current regulations, the price stated on the real estate ownership transfer contract was the price to calculate tax payment. If the contract did not mention the price or the price was lower than the regulated land price frame, the taxation would be based on the regulated price.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes

Thứ Bảy, 11 tháng 6, 2022

 

VIETNAM BUSINESS NEWS JUNE 10

 16:58 

 EU Delegation to Vietnam explores investment opportunities in Binh Duong


Ambassador Pier Giorgio Aliberti, Head of the European Union (EU) Delegation to Vietnam, on June 9 had a working session with representatives of the People's Committee of Binh Duong to discuss investment opportunities in the southern province, especially in hi-technology and green industry development and environmental protection.

Ambassador Aliberti expressed his impression of Binh Duong’s dynamic development over the years, and said he hopes that through the session, the EU Delegation will understand more about the province’s needs as well as step up cooperation programmes and increase priorities in areas that can attract investors to Binh Duong, such as energy, renewable energy and green economic development.

There is huge potential and opportunities for the EU and Binh  Duong to strengthen cooperation in the coming time, he noted.

Aliberti promised to continue to be a bridge promoting cooperation between the EU and Vietnam in general and Binh Duong in particular through specific and practical projects.

Binh Duong has so far attracted 4,049  FDI projects with total registered capital of 39.5 billion USD from 65 countries and territories, including 403 projects worth over 6.7 billion USD from 24 European countries and territories.

Vietnam-Laos trade turnover on the rise

Trade revenue between Vietnam and Laos in the first five months of this year stood at 690.6 million USD, up 21 percent year-on-year.

According to the Vietnamese Trade Office in Laos, Vietnam’s export value reached 255.02 million USD, down 9 percent, but its import hit nearly 435.58 million USD, up 50 percent.

Vietnam’s major export items included iron and steel (36.5 million USD); oil and gas, fertilizer, fruits and vegetables (nearly 20 million USD); and ceramics, electrical wires and cables, paper, textiles and garments (nearly 7 million USD), among others.

Meanwhile, it imported ore and other minerals, fertiliser, wood and timber products, rubber, fruits and vegetables from the neighbouring country.

In May alone, bilateral trade was valued at nearly 132.5 million USD, a year-on-year rise of 16.5 percent, of which Vietnam’s exports were worth close to 62.8 million USD, up 0.8 percent, and imports 69.7 million USD, up 35.5 percent.

Int’l exhibitions on telecom, electronic products and film begin in HCM City

The international trade show on information technology, telecommunication and electronic products (ICT COMM) and the International Exhibition of Film and Television Technology (Telefilm Vietnam) opened on June 9 at the Saigon Exhibition and Convention Centre.

They feature nearly 200 booths by more than 150 local and foreign exhibitors, including those from the US, Germany, Russia, Japan, the Republic of Korea, India, China, Singapore, Indonesia, Malaysia, the Philippines, Hong Kong (China), and Taiwan (China).

Returning after a two-year gap due to COVID-19, the shows, despite having a smaller scale compared to before the pandemic, showcase the latest products and technologies in the telecommunication, IT, media sectors, as well as products, services and technologies used in film and television, TV content and programmes, and broadcasting equipment and technology.

Several companies who have participated in all five previous editions such as Konica Minolta Business Solutions, Du Hung Technology JCS, C-FIBER, and South Telecommunications Software JSC, are displaying software, mobile applications, technology solutions, hard drive devices, wireless technologies, internet services, electronic products and services, radio and television services, and network infrastructure.

Visitors will have a chance to experience innovative television application systems on the internet inherited from the strong development of information technology and future TV channels, and modern post-production special effects, they added.

This year, the exhibition will also be held online for 15 days to offer local and foreign firms in the telecommunications, information technology, and TV and broadcasting sectors greater opportunities to exchange information, learn, share experiences, transfer technologies, and contribute to improving their competitiveness, he said. 

Over 24 trillion VND worth of business bonds issued in May

Vietnamese businesses mobilised 24.1 trillion VND (1.08 billion USD) in May through one public and 34 private corporate bond issuances, according to the Vietnam Bond Market Association (VBMA).

The association reported that commercial banks took the lead in terms of value of bond issuance with nearly 14.63 trillion VND (631.26 million USD), accounting for 60.68 percent of the total bond value.

They were followed by real estate firms with nearly 6.88 trillion VND, or 28.53 percent of the total value.
 
In the first five months of this year, 160 corporate bond issuances have been conducted with a total value of about 104.83 trillion VND, down 23 percent year on year, along with 17 public issuances worth nearly 9 trillion VND, 11 percent rise year on year.

Banks and real estate groups clinched the top and second positions in terms of issuance values with 42.38 trillion VND and 37.39 trillion VND, respectively.

Top legislator urges for healthy banking system

National Assembly Chairman Vuong Dinh Hue urged for a healthy banking system in which domestic lenders act as key players and operate in a healthy, effective and transparent manner when assessing the answers of State Bank Governor Nguyen Thi Hong during the Q&A session of the 15th NA in Hanoi on June 9.

Vietnamese lenders must meet banking and safety standards and adopt international practices, Hue said, noting that Vietnam is eyeing to enter the top four ASEAN countries in banking development by 2025. He also emphasised that attention must be paid to formulating, approving and implementing a project on restructuring poor-performing banks with an aim of completing the project by the end of 2025.  

Hue asked the Government, the State Bank of Vietnam (SBV) and ministries to actively, flexibly and comprehensively employ monetary tools and policies; and combine them with fiscal and macro-economic policies to keep inflation under control, stabilise the macro-economy, support economic recovery and promptly respond to fluctuations in both the international and local markets.

The top legislator also required the lenders to reduce operation costs and lower interest rates while regulators must revise and amend related legal documents to improve legal framework on monetary issues, foreign exchange governance and banking operation, thus ensuring the safety of the credit institutions.

It is critical to raise financial capacity of the lenders, provide additional charter capital for state-owned banks and prevent cross-investment, cross-ownership and ownership manipulation, he said.

The NA chairman also requested the SBV to intensify inspection and supervision of the credit institutions, study the use of cryptocurrency, promote financial technologies (fintech) in banking and ensure information security for the banking system.

Monetary policies to be managed flexibly to rein in inflation: Deputy PM

Deputy Prime Minister Le Minh Khai clarified a number of issues raised by National Assembly (NA) deputies regarding banking activities on June 9 as part of the ongoing NA third meeting's question-and-answer session.

The Deputy PM cited the State Bank of Vietnam (SBV) Governor’s affirmation as saying that the increasing inflation does not come from recent monetary policies, especially in the first five months of this year, but from the rise in prices of commodities.

He said that the Government will continue to stick to NA resolutions and keep a close watch on the domestic situation to manage monetary tools and policies in an active, flexible and synchronous manner, aiming to curb inflation, stabilise the monetary and foreign exchange markets, while drastically implementing monetary policy solutions to support the implementation of the socio-economic recovery and development programme.

The Government will also make sure that interest rate management will match macro balances as well as inflation and monetary policy targets, and continue to remove difficulties for and support COVID-19-hit businesses and ensure safety for banking activities, he stated.

Regarding credit room, an issue that draws NA deputies’ attention, Deputy PM asked the SBV to consider the regulations, conditions and criteria for granting more credit rooms to ensure coherence.

Amazon and iDEA collaborate on initiative to support e-commerce manpower development for VN
     
Amazon Global Selling and the Vietnam E-commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade on Wednesday signed a Memorandum of Understanding (MoU) to collaborate on the initiative to support the manpower development for enterprises to unlock opportunities with export through e-commerce.

The “Cross-border E-commerce: the Breakthrough Era” initiative, launched by Amazon and acknowledged by the Ministry of Industry and Trade, is a five-year programme with online and offline training boot camps across Viet Nam. It aims to support cross-border e-commerce talent for 10,000 businesses in the next five years from 2022 to 2026.

The global e-commerce market is forecast to grow strongly to reach US$7.4 trillion by 2025, driven by the impacts of new-generation free trade agreements and the shift in business models from traditional to digital platforms. This provides an opportunity for Vietnamese companies to penetrate and expand export markets on the back of Viet Nam's deep integration into the world economy.

According to Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, e-commerce plays an important role in driving Viet Nam’s economic development post-pandemic.

In 2021, e-commerce sales increased 16 per cent to reach $13.7 billion, of which B2C (business-to-customers) accounted for 6.5 per cent of total retail sales and service revenue. Viet Nam’s e-commerce is forecast to grow by an average of 25 per cent per year during 2022-25, reaching $35 billion by 2025 and occupying 10 per cent of total retail sales and service revenue.

Tan said the ministry has actively applied information technology to reform administrative procedures in the export sector to alleviate costs for export businesses, then boosting Viet Nam’s imports and exports.

Sizeable opportunities for e-commerce exports in Viet Nam

Amazon released the “Local Sellers, Global Consumers: Capturing Viet Nam’s e-commerce export opportunity” report, which surveyed more than 300 micro, small and medium enterprises (MSMEs) from Viet Nam.

According to the report, the annual value of B2C e-commerce exports in Viet Nam is expected to grow by over 20 per cent to reach VND256.1 trillion ($11.1 billion) in 2026, from VND75.4 trillion ($3.3 billion) in 2021.

“If B2C e-commerce was considered an export category, it could be the fifth largest export category in Viet Nam in five years,” the report said, noting that 64 per cent of this value could be earned by MSMEs.

About 88 per cent of surveyed firms feel e-commerce is critical for their ability to export. Vietnamese MSMEs also anticipated a greater sales growth forecast overseas (42 per cent) than at home (11 per cent).

However, amid the opportunities for global expansion, the report revealed key challenges for enterprises to overcome, including barriers in cost, regulations, information and capabilities.

More than 80 per cent of surveyed firms admitted they lack information on relevant regulations overseas while 85 per cent believe they lack the ability to compete with other sellers globally.

The report is expected to give an insightful base for authorities, policymakers and industry players to come up with comprehensive recommendations and solutions supporting e-commerce exporters. 

South Korean FDI into Vietnam boosted

South Korea was among the three largest foreign investors in Vietnam during the past three years, according to the Vietnamese Ministry of Planning and Investment (MPI).

The MPI reported that in the first five months of this year, South Korean foreign direct investment (FDI) into Vietnam was estimated at USD2.06 billion, up 12.6 percent on-year.
 
Most of South Korea’s major FDI projects in Vietnam were in manufacturing. Authorities in the northern province of Thai Nguyen licensed Samsung Electro-Mechanics Vietnam Co., Ltd to sink an additional USD920 million into its project in Pho Yen Town, raising the project’s total capital to USD2.27 billion in February.

South Korean firms have also increased investment in Vietnam’s real estate sector. By late November last year, real estate projects accounted for 13 percent of the country’s total FDI in Vietnam, double the figure in 2018.

Agriculture continues to spearhead backbone of economy

Minister of Planning and Investment Nguyen Chi Dung emphasised that Vietnam's agricultural sector has seen the strongest development ever, transforming from producing enough food to meet the needs of the people to exporting at a high percentage.

The minister also said that the countryside has changed rapidly, and people's living standards have improved markedly.

He asserted that this result is contributed by the hard work and creativity of farmers, the Party's leadership, and the direction of the government.

However, at the third session of the 15th National Assembly, the minister also agreed with the comments of some delegates that the agricultural sector is facing a lot of difficulties and challenges at present.

Belt roads deemed driving force for socioeconomic development

At the third session of the 15th National Assembly, Minister of Planning and Investment Nguyen Chi Dung presented the investment plan for the belt roads 3 and 4 in Hanoi and Ho Chi Minh City.

Minister Dung said that the Belt Road 4 project around Hanoi and Belt Road 3 around Ho Chi Minh City link the regions, promote the development of urbanisation, and have great significance for socioeconomic development.

These projects were planned initially planned to be constructed in 2011-2020; however, due to various reasons, both projects were delayed.

The two roads are meant to shorten transport distances, facilitate traffic connections with provinces and cities, reduce the load on the radial traffic system of Hanoi and Ho Chi Minh City, and promote investment efficiency for ongoing projects as well as create new room for the development of available land.

Belt Road 4 around Hanoi has a total length of about 112.8 km. Belt Road 3 surrounding Ho Chi Minh City has a total length of 76.34km.

HCMC’s May retail sales at four-year high

May saw HCMC’s retail sales of goods reaching an estimated VND57.8 trillion, up 3.1% month-on-month and 13.8% year-on-year, the highest single-month growth rate since January 2019, the HCMC Department of Industry and Trade told a press briefing on June 9.

The city’s retail sales made a strong rally two years after the Covid pandemic hit the country, the local media reported.

Numerous Covid economic recovery measures aimed at supporting firms, improving the business climate, speeding up digitalization and simplifying administrative procedures drove up the performance of enterprises in HCMC in the first five months of 2022, according to the department.

Between January and May, the city’s retail sales neared VND576 trillion, up 8.1% year-on-year. The retail sales of food and foodstuffs saw a year-on-year increase of 14.2%, while cultural and educational products enjoyed a 14.9% hike in retail sales. The retail sales of wood and construction material, and automobiles expanded 8.5% and 14.3% year-on-year, respectively.

These figures showed trade and service activities in HCMC were bouncing back, said Bui Ta Hoang Vu, director of the department.

DGW to issue 72.5 million bonus shares

Digiworld Corporation, which is listed on the Hochiminh Stock Exchange with stock code DGW, has passed a plan to issue 72.5 million bonus shares to its existing shareholders, with the ratio of 8:10.

The bonus shares will be issued out of the company’s undistributed after-tax profit on its audited 2021 financial statement. After the share issue, DGW expects to see its charter capital rising from VND907 billion to over VND1.63 trillion.

The company will issue the shares in June or July this year after it receives the State Securities Commission’s approval.

In the first quarter of 2022, DGW gained over VND7 trillion in revenue and nearly VND211 billion in after-tax profit, reaching 27% and 26% of its 2022 targets, respectively.

DGW’s share price hit its record high of VND158,000 in April, but then the stock has seen much volatility.

Internet-themed conference to gather over 300 tech experts

VNNIC Internet Conference 2022, a series of events specializing in technology, will take place from June 22 to 25 in the central city of Danang, with over 300 tech experts at home and abroad taking part.

The event, organized by the Vietnam Internet Network Information Center (VNNIC) under the Ministry of Information and Communications, aims to open a new forum for Vietnam’s Internet community, where experts meet and share their views to develop a sustainable Internet network in Vietnam.

Given the ongoing recovery from the Covid pandemic, “The Future of the Internet” is chosen as the main theme of this year’s event to discuss major issues and solutions for the Internet in Vietnam. The event will comprise three workshops and one conference.

It is expected to connect all members of the Vietnam Internet community, from State-run agencies in charge of information technology management to providers of Internet, mobile, and cloud services, as well as major tech and Internet firms in the world such as Cloudflare, NTT and Infoblox.

VND1.5 trillion poured into key road linking Ninh Thuan, Lam Dong

Ninh Thuan Province is speeding up work on a 62.5 kilometer-long road connecting it with Lam Dong Province, with a total investment of some VND1.5 trillion.

The Ninh Thuan Management Board of Investment and Construction of Traffic Projects, the investor of the project, said on June 9 that the road, which is set to start from Ninh Son District in Ninh Thuan and end in Duc Trong District in Lam Dong, got off the ground in early 2022.

Around 45.5 kilometers of the road will be built in Ninh Son District and over 17 kilometers in Duc Trong District with capital to be sourced from the mid-term public investment fund for the 2021-2025 period, the local media reported.

The project comprises two components, with the first running from Tan Son Town to Ma Noi Commune in Ninh Son District. This section will be over 22 kilometers long and require more than VND486 billion in investment.

The second component is a section stretching from Ma Noi Commune to Ta Nang Intersection in Duc Trong District, with a total length of 40 kilometers.

The first component of the road is set to be completed and opened to traffic in June 2023, while the second component is seeing the investor expedite the design process and make relevant construction procedures to put it in operation in 2025.

Firms in SHTP voice outcry over procedures

At a conference themed “Day for Resolving Administrative Procedures” at the Saigon Hi-Tech Park in HCMC on June 8, many enterprises active in the park decried obstacles over administrative procedures and general and detailed planning, which have delayed their projects for several years.

Roundabout procedures and directives from relevant agencies have annoyed firms and hindered them from carrying out their projects.

Thai Thanh Hai, a representative of the Vietnam-Japan High Technology Investment Company, said that one of the firm’s projects in the park was licensed by the Saigon Hi-Tech Park management board in 2019, but until now, the project has yet to be conducted due to obstacles over procedure adjustment planning.

Several other firms are facing the same fate, seeing their projects prolonged for many years due to complicated administrative procedures and inconsistency between agencies.

Another firm complained that its detailed plan was passed by the management board, but was assessed as failing to meet technical infrastructure standards by the Thu Duc government. The firm received feedback from the Thu Duc government 17 months after submitting the plan to the government.

Responding to these complaints, a representative of the Thu Duc City planning management division concluded that most obstacles were related to general and detailed planning procedures.

HCMC keens on developing waterway tourism

From the beginning of the year to the present, more than 262,000 international tourists visited HCMC, up 100 percent compared to the same period last year. While the number of domestic travelers was over two million, presenting a year-on-year increase of 108 percent. A wide range of different tourist products is launched, including waterway tours.

The dining and sightseeing boat tour at night on the Saigon River is one of the highlight tourist products of the TSTtourist Company. The 2.5 hour-long trip costing VND2.5 million per person begins at the Bach Dang Wharf in District 1 and ends at Mui Den Do in District 7. The tour returning to the departure point will run through Thu Thiem Bridge 2 and Binh Loi Bridge in Binh Thanh District, said communications director of TSTtourist Nguyen Minh Man.

The new service gives a chance to visitors to enjoy the city’s beautiful attractions in the glow of the evening lights that are not less beautiful than other countries in the region, said visitor Nguyen Thai of District 3 in HCMC.

HCMC to consider adjustment of seaport infrastructure fees in July

Deputy Prime Minister Le Minh Khai asked the HCMC People’s Committee to consider an adjustment of seaport infrastructure fees for use of infrastructure facilities and public services at seaport terminals for import-export activities in the city in July.

The city suspended the collection of fees for using infrastructure facilities and public services at seaports two times and has officially collected seaport fees from April 1.

Enterprises proposed a reduction of seaport infrastructure fees to relieve the burden on companies due to the Covid-19 pandemic and other domestic and global impacts, such as sharp fuel price hike, high logistics costs.

HCMC has officially conducted a program on collecting infrastructure fees at seaports starting on April 1. Revenue from collecting fees from businesses and individuals for use of infrastructure facilities and public services at seaport terminals for import-export activities will be used to upgrade transport infrastructure systems and invest in technology and services. Activities for charitable purposes, disaster relief, disease prevention, security and defense works will be free of charge, said the municipal Department of Transport.

The Port Authority of Inland Waterway will take responsibility for collecting fees with the support and inspection of the HCMC Department of Customs, port and logistics firms.

Enterprises access the fee collection system at the site thuphihatang.tphcm.gov.vn:8092/Home to find payment receipt, and thuphihatang.tphcm.gov.vn:8081/Home to complete the declaration form for fees of import or export goods as well as contact with the hotline number 19001286 operated 24 hours a day for further information.

Gov’t promotes M&A in banking sector for higher competitiveness
 
The main objective of the project is to ensure all banks adopting the Basel II standards have a capital adequacy ratio (CAR) of at least 10-11% by 2023, and eventually to 11-12% by 2025.

The Government would continue to encourage banks to pursue M&A deals in the sector to enhance competitiveness and sizes of operation.

The move was part of the Government’s project for restructuring credit institutions and addressing bad debts during the 2021-2025 period that was signed off by Deputy Prime Minister Le Minh Khai.

The main objective of the project is to ensure all banks adopting the Basel II standards have a capital adequacy ratio (CAR) of at least 10-11% by 2023, and eventually to 11-12% by 2025.

To reach these targets, the Government called for banks to take measures to increase charter capital and CAR, along with higher corporate governance capability of international standards.

Based on supervision data and assessment from independent auditing firms, banks, and financial companies would be divided into three groups, including banks with high financial muscles; mid-size banks; and weak banks with high risks.

Germany’s DW considers Vietnam new destination for European companies

Vietnam's active economic performance in recent years has captured the attention of some major European firms, said German English-language news site DW in a June 8 article.

Vietnam was one of the few Asian countries that did not experience an economic contraction during the coronavirus pandemic in 2020 and 2021, it said. This year, the country’s GDP is expected to grow by around 5.5 percent, according to the World Bank.

German automotive supplier Brose, which has 11 factories in China, is currently deciding between Thailand and Vietnam for a new production location.

In December, Denmark's Lego announced it will build a 1 billion USD factory near the southern business hub of Ho Chi Minh City, one of the largest European investment projects in Vietnam to date.

It quoted Daniel Müller, manager at the German Asia-Pacific Business Association, as saying: "It currently looks as if, in particular, medium-sized companies are increasingly striving to enter the Vietnam market.”

Vietnam has become a more attractive destination for investors, Raphael Mok, head of Asia Country Risk at Fitch Solutions, told DW.

RoK promotes transit tourism products for Vietnamese travelers

Airports in the Republic of Korea (RoK) are set to provide a free transit experience for passengers traveling from Vietnam to the United States, Canada, or Japan, including discounts on services in lounges, free services guides, and tours.

The statement was made by Lee Jae-hoon, chief representative in Vietnam of the Korean Tourism Organisation (KTO), at a seminar on “Vietnam-Korea Air Travel Promotion” held in Hanoi on June 9.

Statistics indicate that the number of passengers travelling from Vietnam to Incheon International Airport in 2019 stood at 7.62 million, including 500,000 transit passengers, ranking first and second in Southeast Asia, respectively.

Among the passengers, those from Hanoi and Ho Chi Minh City numbered 3.8 million, making up half the total. In addition, the two cities also accounted for 96% of transit passengers, equivalent to 400,000 travelers.

Hanoi and Ho Chi Minh City are widely considered to be strategic areas, with the number of tourists from these two major cities anticipated to increase rapidly during the post-pandemic period.

The recent trend of easing pandemic prevention measures in both Vietnam and the RoK can be seen as laying the groundwork for the revival of the air travel industry.

Seminar promotes Vietnamese market to RoK tourists

More than 80 representatives of various travel firms and partners in the Republic of Korea (RoK) gathered at a seminar titled “Rediscover Vietnam” on June 9 as part of efforts to promote Vietnamese aviation and tourism services in the RoK.

The event was primarily aimed at introducing aviation, tourism, and resort products by Vietnam Airlines, Thien Minh Group, and Sun Group to the RoK’s outbound tourism market.

Addressing the event, Vietnamese Ambassador to the RoK Nguyen Vu Tung affirmed that Vietnam is a convenient, safe, and attractive destination for international tourists, noting the country has lifted all travel and entry restrictions for foreign visitors.

Korean tourists who travel to Vietnam for under 15 days do not require visas and will not be subject to quarantine requirements or COVID-19 tests, he announced.

The diplomat predicted that, alongside efforts to improve the overall quality of tourism services and the qualifications of tour guides, Vietnam is likely to welcome 4.3 million visitors from the RoK this year, just as it had done before the COVID-19 pandemic.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes