VIETNAM'S
BUSINESS NEWS HEADLINES AUGUST 22
01:20
Rice exporters urged to promote brand through safe
production
The golden
time for Vietnam to promote its rice brand will come once the
country is able to promptly expand production of ST25 rice in line
with a safe process, according to rice exporters.
Opportunities
will be opened up for Vietnamese rice to further access the European market
as the EU-Vietnam Free Trade Agreement (EVFTA) became effective at the
beginning of August.
The rice
variety ST25 won the first prize in the 2019 World’s Best Rice Contest and is
favoured by domestic consumers.
Major rice
exporters from the Mekong Delta are striving to meet demands of
stringent markets.
The export
price of Vietnamese five-percent broken rice currently hits its peak in the
past 10 years, standing at 473-477 USD per tonne, announced the Vietnam Food
Association on August 18.
This is also
the first time that the price of Vietnamese five-percent broken rice has been
higher than that of Thailand.
Vietnam
exported 3.9 million tonnes of rice in the first seven months of this year,
earning 1.9 billion USD, according to the Department of Agro Processing and
Market Development under the Ministry of Agriculture and Rural Development.
The export
volume fell 1.4 percent but the value increased by 10.9 percent over the same
period last year./.
Virtual exhibitions a new
direction for wood industry during COVID-19
COVID-19
has limited all exhibitions and international trade shows and made export
activities that much harder. The idea of using virtual exhibitions on 2D and
3D platforms, however, has already proven to be a lifesaver for many
businesses, especially those in the wood industry.
Revenue at this business has fallen more than 60% due to the impact of COVID-19. Though it switched to online sales, volumes have remained modest. After experimenting with virtual exhibitions, business has begun to head in a more positive direction, with a large number of international customers taking an interest in its products.
Many
businesses, especially those in furniture, have already applied the solution
and seen positive results. Some 50 wooden product enterprises in Ho Chi Minh
City have opened showrooms online, posting 2D and 3D images for
potential partners to browse through.
International
wooden furniture fairs in Vietnam attract hundreds of thousands of visitors
each year and valuable contracts are signed. By digitising exhibitions and
product introductions, businesses can still promote new products without
having to meet customers directly. Customer interest in specific product
lines can also be measured, in order to adjust production if necessary.
Wooden
product exports reached over 5 billion USD in the first half of this year, up
6% against the first half of last year but down on expectations. The
introduction of virtual exhibitions is just one solution in achieving the
export target of 12.5 billion USD for this year, and is also a trend in
global trade helping businesses negate the effects of COVID-19./.
Work starts on
over-215-million-USD bridge in Mekong Delta
The Ministry
of Transport and the People’s Committees of the Mekong Delta provinces of
Vinh Long and Tien Giang held a ceremony on August 19 to commence the
construction of the My Thuan 2 bridge with a total investment of over 5
trillion VND (215.6 million USD).
Located 350m
upstream of the existing My Thuan bridge, the My Thuan 2 bridge will start
from the An Thai Trung intersection with the Trung Luong-My Thuan Expressway
in Tien Giang province’s Cai Be district and end at an intersection with
National Highway 80, on the My Thuan-Can Tho Expressway in Vinh Long city.
The project
has a total length of 6.6km including 4.7km of approach roads and nearly 2km
of the main bridge with six lanes.
Investment
for the project is sourced from the State budget and the bridge is expected
to connect the two expressways of Trung Luong – My Thuan and My Thuan - Can
Tho in order to form a complete traffic network from Ho Chi Minh City to the
Mekong Delta city of Can Tho city.
The project
is scheduled to complete in 2023./.
Vietnam, Thailand enhance
cooperation in animal health, sanitary measures
Thailand’s
Ministry of Agriculture and Cooperatives has suggested that the country
and Vietnam set up a bilateral cooperation mechanism in animal
health.
With
rotating annual meetings, such a mechanism would allow for the sharing of
experience in disease management, prevention, and fighting as well as
sanitary measures.
The idea was
put forward during a working session between representatives from the Embassy
of Vietnam in Thailand and the Department of Livestock
Development (DLD) at the Thai ministry on August 18 in Bangkok.
As demand in
Vietnam for live pig imports from Thailand increases to satisfy domestic
demand, Vietnamese authorities are calling on their Thai counterparts to
devise policies to stabilise export volumes and prices.
They also
requested relevant Thai agencies revise and strictly examine animal
health conditions and breeding procedures before exporting to Vietnam.
The
Vietnamese side also asked the DLD to arrange for inspections of certain
farms sending pigs to Vietnam after mid-September, which a delegation from
the Vietnamese Embassy will join and then report to the Ministry of
Agriculture and Rural Development.
DLD
representatives agreed on the suggestions from the Vietnamese Embassy, adding
that Thai authorities would work with the embassy on the establishment of a
bilateral cooperation mechanism shortly.
Thailand
exported more than 100,000 live pigs worth 781.8 million THB (24.7 million
USD) to Vietnam between June 12 and August 13. Fifteen Thai businesses have
met requirements for such exports, with nine having done so already./.
Nearly 60 percent of
Singaporean firms need 1-2 years to recover
Almost 60
percent of Singaporean companies said it will take them one to two years to
recover to pre-pandemic levels, even when they seek new sources of revenue
and speed up technological adoption.
According to
a survey recently announced by the Singapore Chinese Chamber of Commerce and
Industry (SCCCI), 80 percent of respondents said their revenues were hit
while 76 percent saw profit margins decline.
Additionally,
they also faced challenges related to financing and cash flows, rising
business costs and uncertain economic and political conditions overseas.
The poll
done in June and July gathered responses from 1,020 companies, 95 percent of
which are small and medium-sized enterprises.
On August
17, Singaporean Deputy Prime Minister and Finance Minister Heng Swee Keat
announced support measures amounting to 8 billion SGD (5.84 billion USD),
which includes an extension to the wage subsidy scheme for Singaporeans until
the first quarter of next year.
The
Singaporean economy is predicted to contract by 5-7 percent this year./.
Vietnam passes Bangladesh in
textile and garment exports
Vietnam has surpassed Bangladesh in terms of textile and garment exports over the first six months of the year, with the former’s total export value of over US$13 billion, US$1 billion more than the latter’s.
Despite the
negative impact caused by the COVID-19 pandemic, the country has successfully
beaten Bangladesh to become the world’s second largest textile and garment
exporter, behind only China.
According to
the Bangladesh Export Promotion Bureau, the South Asian nation raked
in US$11.92 billion from exporting ready-made garment products over the first
half of the year, while the Vietnam figure was about US$13.18 billion.
Despite
Vietnamese textile and garment exports enduring a drop of 12.1% in the
seven-month period, the country still earned a total of US$16.2 billion.
In response
to these figures, Bangladeshi garment exporters explained that the COVID-19
pandemic has forced them to lag behind their Vietnamese rivals.
Mohammad
Hatem, vice president of Bangladesh Knitwear Manufacturers
and Exporters Association, said Bangladesh’s textile and garment
industry plummeted throughout March to May, as production activities and
supply chains were interrupted by the COVID-19.
"Meanwhile,
Vietnam’s production activities were not much affected because the country
has controlled the spread of the virus”, Hatem added.
Most
notably, Bangladeshi textile and garment exports fell by 20.14% to US$2.25
billion in March, before suffering a further 85.25% drop to US$375 million in
April. Indeed, these declines mark the most significant decreases in the
history of exports from the South Asian nation.
Moving into
May, Bangladeshi export earnings witnessed an improvement, reaching US$1.23
billion, but marking a 62% decline from the start of the year. Following
this, June saw their textile and garment exports show signs of recovery,
reaching US$2.24 billion.
The
January-June period has seen Vietnamese firms not suspend production,
something that has occurred in both China and Bangladesh. As a result, the
market share of local textile and garments being shipped to the United States
and the EU has increased.
A
representative from the Vietnam Textile and Apparel Association said that in
comparison to the overall falls of the textile and garment industry worldwide,
Vietnam only recorded a small decline of between 12% and 14%. Simultaneously,
Bangladesh and India’s exports were hit by a drop of 23% during the first six
months of the year.
Despite
this, the Vietnamese textile and garment industry still faces an array of
challenges as the COVID-19 is still significantly affecting global exports./.
Transport Ministry okays Long
Thanh expressway expansion
The Ministry
of Transport has approved a Đồng Nai Province proposal to widen the HCM City
- Long Thành expressway to 10 lanes from its current four.
Minister of
Transport Nguyễn Văn Thể has ordered the Cửu Long Corporation for Investment
Development and Project Management of Infrastructure (Cửu Long
Corporation) to submit a pre-feasibility report for the proposal by the
fourth quarter.
The widening
of the 24km section from HCM City’s District 2 to Long Thành Town in Đồng Nai
will be done in 2021-30 period, according to the ministry.
Thể said the
Department of Planning and Investment would advise on how to source capital
for the work.
He also
urged the department to study about construction of elevated roads, light
rail and transit bus stations to connect the city with the proposed Long
Thành International Airport in Đồng Nai.
The province
has said the expansion work is urgent since the expressway is “a key
transport route connecting the proposed Long Thành International Airport.”
Traffic
congestion has become routine on both the expressway and the section
of Highway No. 51 to HCM City during peak hours and holidays,
it said.
The spots
most often gridlocked are Long Phước and Dầu Giây stations, branch
D of Highway No. 50, inner roads connecting Highway 51, and Mai Chí Thọ and
Võ Chí Công streets.
The widening
will ease congestion when the airport opens in 2025.
The Cửu Long
Corporation has recommended widening to eight lanes at a cost of VNĐ9.8
trillion (US$422.36 million) from 2025 and to 10 lanes starting in 2040.
The 55km
expressway was built five years ago, shortening travel from
HCM City to south-eastern provinces to 20 minutes from the earlier
60 and to Vũng Tàu to a little more than an hour.
But drivers
have been complaining about the slow speed of traffic on the road, and
the expressway management has to frequently warn people to take other
routes.
According to
the Việt Nam Expressway Services Engineering Joint Stock Company, which
manages it, the traffic volume was 10 million vehicles in 2015 and 16.5 million
last year.
It now
handles 52,000 vehicles daily (rising to 60,000 on holidays and Lunar New
Year) though its designed capacity is only 44,000, the company said./.
Organic farming helps small
businesses grow
As the
demand for healthy food increases, one farmer in the central province of Phú
Yên has decided to go organic.
And the
switch has not only helped him to reap the rewards, but also benefited other
farmers in his region.
Trần Ngọc
Phú, 47, left his home town in Hương Điền District, Thừa Thiên-Huế Province
more than 30 years ago.
He decided
to better his prospects by moving to Ea Bar Commune - a mountainous area of
Phú Yên.
Once he
arrived he began working on rubber plantation, and continued to do so until
2017 when the company dissolved.
Faced with a
tough decision of what to do next, Phú decided to start his own business.
“It was a
really a difficult time for me as I did not know where to start,” he said.
“After a lot
of research on the internet, I found that people paid more and more attention
what they were eating and they were willing to pay more for clean and healthy
products.”
That was
Phú’s eureka moment but he wanted to be sure he had the sufficient knowledge
to make his business a success.
He travelled
to Hà Nội to study at the Việt Nam Agriculture Institute and also visited
organic farms in Bình Phước and Đắk Lắk to gather as much information as
he could.
Knowledge
collected, Phú began his enterprise, growing durian, sacha inchi and passion
fruit on his four-ha orchard without using any herbicides.
He used
natural products like fermented fish and fruit peel to protect his trees and
animal waste and coffee pods to make fertiliser.
It wasn’t
always plain sailing, and Phú made many mistakes along the way.
He added:
“With little experience and understanding when first applying organic
farming, I failed many times, then I tried again and again.”
Creating
suitable organic fertiliser made from fermented small fish, fruit peels and
probiotics was one such headache and he had to study the characteristics
of soil and trees.
Over and
over he had to try and find the right combinations, and some fellow
farmers questioned the direction he was heading.
“Organic
farming was very strange to many farmers in my locality at that time. They
were sceptical to my farming method and did not think that I would succeed,”
Phú said.
But they
soon changed their ways of think when they realised Phú was turning a healthy
profit.
In 2018, Phú
earned VNĐ20 million from 100 passion fruit trees and VĐ150 million from
growing sacha inchi and rubber together.
What
impressed them more is that Phú’s three-year-old durian garden was disease
free and producing healthy fruit.
According to
Phú, there are three main factors that make organic farming models
successful.
First, as no
chemical is used in the model, products’ prices are higher than other
products but consumers will still accept and buy the products.
Second,
growing short-term fruit trees like sacha inchi or passion fruit add
long-term fruit trees like durian is a strategy that uses short-term
investment as stepping-stones towards achieving a long-term goals.
Third, Phú
sent his sacha inchi seeds for testing indicators of omega, calcium, protein.
Testing results proves the quality of the products plus no pesticide residue.
This whole
process was recorded and traceable so customers can check the products’
origins easily.
With his
accumulated experiences and knowledge on organic farming, Phú shared it with
other farmers.
Trần Đình
Mậu, another farmer in Ea Bar Commune said that last year, Phú helped him
with his two-ha area macadamia nut farm.
“My
customers like the organically-grown macadamia more than the ones grown using
conventional methods,” Mậu said, adding that now, he used organic fertilisers
to all his crops.
Nguyễn Văn
Khúc, secretary of the commune’s party committee said, adding that the
organic farming models generated high economic benefits and organic products
were welcomed in market.
In
August last year, Phú established Ea Bar Emi Farm Co-operatives,
attracting nine members. They apply organic farming in more than 50 ha od
orchards and herbs.
They hope to
develop a zone specialising in organic fruits in the mountainous area of Phú
Yên Commune.
However, Phú
admitted that besides financial issues, they faced another difficulty in
management.
“We farmers
are used to doing farming work, now, we have tried to run business, managing
a co-operative is not easy for us,” Phú said.
Phạm Trọng
yêm, deputy head of Phú Yên Province’s Co-operatives Alliance said that Phú’s
co-operative should join the alliance so that it would receive more supports
in technology, trade promotion, branding, human resource training as well as
loans./.
Japanese investors seek
M&A partners in Vietnam
Major
Japanese enterprises are looking to buy Vietnamese IT firms through merger
and acquisition (M&A) deals to expand production and business in the
Southeast Asian country, reported Dau tu (Investment) newspaper.
Besides IT
businesses, Japanese investors are also interested in other fields such as
hotel, industrial park, clean energy, renewable energy, seafood processing,
and pharmaceutical production.
Particularly,
amidst the COVID-19 pandemic, the Japanese government will provide financial
support for businesses to diversify supply chains in Vietnam.
Under a
scheme in which the Japanese government will fund production shifting to
ASEAN countries, 15 Japanese firms have registered to move to Vietnam.
They belong
to a list of 30 Japanese enterprises that will be paid to move factories to
Southeast Asian nations like Vietnam, the Philippines, Thailand and Laos.
According to
the Japan External Trade Organization (JETRO), 1,400 out of 3,500 Japanese
businesses surveyed in 2019 said they want to expand production in Vietnam in
the next three years./.
Vinh Phuc: Over 84 percent of
projects in IPs put into operation
As many as
309 out of 367 projects , equivalent to 84 percent, in industrial parks (IPs)
in the northern province of Vinh Phuc have been put into operation by the end
of July, up 6 percent from December 2019.
Among the
367 projects, 62 are domestic direct investment (DDI) projects valued at over
14.8 trillion VND (633.6 million USD), and 305 are foreign direct investment
(FDI) ones worth more than 4 billion USD.
Binh Xuyen
district alone has seven industrial parks covering nearly 2,000ha, namely
Thang Long Vinh Phuc, Binh Xuyen, Binh Xuyen II, Ba Thien, Ba Thien II, Son
Loi and Nam Binh Xuyen, taking the lead in Vinh Phuc in the numbers of
industrial parks and investment projects.
The Thang
Long Vinh Phuc industrial park has attracted dozens of investors from Japan
with combined capital exceeding 200 million USD although it has just finished
the first phase of construction./.
Mekong Delta localities urged
to work harder to complete yearly targets
Prime
Minister Nguyen Xuan Phuc has asked local administrations of all Mekong Delta
provinces and cities to overcome difficulties and optimise their potential
and advantages, thus completing all socio-economic targets for 2020 and
following years.
In a
document informing the PM’s conclusion in a meeting with leaders of the
Mekong Delta localities, PM Phuc called for the engagement of the whole
political system in implementing the Government’s resolutions on supporting
COVID-19-hit people and solutions to remove difficulties facing business and
production and speed up public investment.
At the same
time, regional provinces and cities should roll out all necessary measures to
promote economic growth of the whole region, keeping the growth rate not
lower than the country’s average.
Besides, the
PM asked for the prompt designing of a planning scheme for the region and
localities in the 2021-2030 period with a vision to 2050, focusing on
promoting potential of the region and each locality, and strengthen the
intra-region’s connectivity as well as the Mekong Delta’s connectivity with
Ho Chi Minh City.
The PM
reminded the localities to concentrate on commercial production of
agriculture towards higher quality and value. Meanwhile in the industry
sector, regional provinces and cities should develop clean and renewable
energy, supporting industries for agriculture and processing.
The
localities should form service-trade centres at sub-regional level, along
with maritime-based economic zones, logistics centres and service hubs, while
strengthening regional connectivity.
The Mekong
Delta region should continue promoting administrative reform and improving
the investment and business environment, developing digital economy and
e-commerce, the PM requested.
He also
asked ministries and agencies to support the regional localities in removing
their difficulties and connecting them with domestic and foreign investors.
In the first
six months of 2020, 13 localities in the Mekong Delta worked hard to deal
with drought and saltwater intrusion. Many localities reported economic
growth higher than the country’s average.
However, the
average growth of the whole region was only 1.2 percent, while many
localities suffered negative growth./.
Thailand to launch more
tourism stimulus packages
Thailand
will introduce more stimulus measures to boost tourism, jobs and domestic
consumption hit hard by the COVID-19 pandemic, according to Deputy Prime
Minister cum Energy Minister Supattanapong Punmeechaow.
He revealed
that the government plans to introduce generous subsidies to encourage
domestic travel.
Earlier, the
government had launched a tourism stimulus campaign known as Rao Tiew Duay
Kan (We Travel Together), which will subsidise five million nights of hotel
accommodation at 40 percent of normal room rates, with the subsidy limited to
3,000 baht (96 USD) per night for up to five nights.
According to
the Tourism Authority of Thailand (TAT), foreign tourist arrivals next year
could be as low as 15 percent of 2019 levels under a worst-case scenario due
to a prolonged coronavirus crisis.
Revenue from
international visitors in 2021 under the most pessimistic scenario developed
by the TAT would shrink to just 296 billion baht (9.43 billion USD), or about
16 percent of the 1.9 trillion baht (58 billion USD) earned in 2019.
Total
revenue from domestic and foreign travellers in 2019 was estimated at 3.2
trillion baht./.
Textile and garment group's
earnings plummet
The Viet Nam
National Textile and Garment Group (Vinatex) has forecast its total revenue
and profit in 2020 will fall significantly from the previous year.
The company
expects its total revenue in 2020 will reach VND14.6 trillion (US$632
million), down from last year’s figure of VND20.14 trillion.
Profit is
forecast to drop by half to VND381.6 billion from 2019's number of VND765.5
billion.
According to
CEO Le Tien Truong, Vinatex has fulfilled half of the year’s total revenue
goal but there is still a long way to go to reach the profit target.
Total
revenue dropped nearly a quarter year-on-year to VND7.04 trillion in the
first six months and profit fell a fifth year-on-year to VND276 billion.
The
prolonged US-China trade war has hurt domestic fabric companies, including
two that affiliates of Vinatex, the CEO said at the annual shareholders’
meeting on Tuesday.
In addition,
the company had no earnings in April as it had to scale down production due
to social distancing measures and the spread of the coronavirus, he said.
As the two
affiliates have recorded lower earnings than a year before, the benefits
Vinatex has in them also decline, he said.
Selling
financial investments helped the company offset losses in its core business,
the CEO added.
In the
six-month period, Vinatex recorded VND69 billion worth of income from selling
financial assets, up 25 per cent year-on-year. Its financial expenses were
halved to VND88.6 billion from VND174 billion.
In the next
five years, market turmoil will keep declining and become more unpredictable
and volatile, according to the company.
Vinatex’s
expects its earnings will recover and hit the level of 2019’s figures in the
middle of the 2020-25 period.
To realise
the target, Vinatex will optimise its governance system, improve its
competitive competency and build an environmentally-friendly supply chain
using 4.0 technologies.
The
State-owned garment group also hopes to attract high-quality staff and offer
them high salaries and benefits to improve business operation and
performance.
Chairman
Tran Quang Nghi said average revenue growth was 12.6 per cent per year in the
2015-20 period, average profit growth in the period was 2.5 per cent, and the
average cash dividend rate was 5 per cent each year./.
US to send officials to
quarantine fruits for export
The Animal
and Plant Health Inspection Service, an agency of the US Department of
Agriculture, will send officials to Việt Nam to check the quality of fruits
to be exported to the US.
This
information was released by Nguyễn Quang Hiếu, an official from the Ministry
of Agriculture and Rural Development (MARD)’s Plant Protection Department, at
a meeting in Hà Nội on Wednesday.
Hiếu said
the US officials’ visit has been postponed due to the COVID-19 pandemic. The
department is seeking seats on several flights of airlines including Asiana,
Korea Air and Nippon Airline for APHIS quarantine officials to come to Việt
Nam.
“We will try
our best to bring the APHIS officials to Việt Nam as soon as possible,” Hiếu
said.
The US
required its officials, including APHIS ones, working in Việt Nam to
return home since March when the pandemic started.
Nguyễn Đình
Tùng, the CEO of Vina T&T Group which has exported a lot of Vietnamese
fruits to US, said when the US withdrew all staff to return home, those still
working in the US Embassy in Việt Nam were assigned to conduct
quarantine for fresh fruit exported to the US, helping Vietnamese businesses
export twice a week. However, for over a week now, they have been busy
with their official work and cannot continue quarantine.
“Therefore,
the export of fresh fruits such as longan, mango, dragon fruit and rambutan
to the US has been delayed. If this situation is not solved, many Vietnamese
businesses and gardeners will suffer big losses,” Tùng said.
General
Secretary of Vietnam Fruits and Vegetable Association Đặng Phúc Nguyên said
it’s necessary to open more irradiation centres to minimise cost and
have a competitive price on the market.
Nguyên said
besides the US, some other markets including Australia and New Zealand also
required irradiation before exporting fruits. However, the fruit irradiation
is currently only undertaken by a company in HCM City.
“The Việt
Nam’s fruit price is not yet competitive because there is only one
irradiation factory in HCM City. Fruits such as longan and mango in the
northern province of Sơn La must be transported to HCM City for irradiation
to be exported. Meanwhile, Thailand has four factories, the price is very
competitive,” Nguyên said.
“The US is a
large market and one of the main markets for Vietnamese fruit exports.
Therefore, we recommend the MARD to arrange for two or three fruit
irradiation factories nationwide,” he added.
According to
a MARD report, in the first seven months of this year, despite the
COVID-19 pandemic, Việt Nam’s export value of vegetables and fruits to the US
market reached US$77 million, up 9.8 per cent year-on-year. Some other
markets also saw an increase in export value such as Thailand with $79.4
million, Japan with $68.2 million, Taiwan with $43 million, and the Netherlands
with $42.7 million.
In terms of
imports, in the first half of the year, the US, China and Australia were the
three largest markets supplying imported fruits and vegetables to Việt Nam.
The import from the US increased by 27.5 per cent, while imports from China
and Australia decreased by 35.2 per cent and 12.5 per cent, respectively./.
Da Nang to develop
digital hub and regional bio-tech centre
The CMC
Corporation, the second largest Information and Communications (ICT) group in
Việt Nam, has proposed a strategic development plan for a creative space and
a digital hub in Đà Nẵng.
CMC said the
creative space will help turn Việt Nam into a digital hub in the
Asia-Pacific region with estimated investment of VNĐ12 trillion (US$522
million).
It said the
Đà Nẵng-based CMC Creative Space will help Đà Nẵng become an internet
and data exchange site in the Asia-Pacific region, and a destination for the
2,500km Cross Việt Nam Cable System that will run through 19 provinces and
cities including Lạng Sơn, Hà Nội, Đà Nẵng, HCM City and Tây Ninh.
CMC said Đà
Nẵng will act as a data centre and software and internet exchange in the
VNĐ500 billion ($21.7 million) trans-Việt Nam cable system that will connect
Việt Nam and ASEAN through the Greater Mekong Sub-region-Internet Exchange.
Biotech
A hi-tech
farm zone is built in a suburban area in central Việt Nam. A regional
bio-tech centre is planned in the central city of Đà Nẵng in 2020-30. VNS
Photo Công Thành
Đà Nẵng has agreed to put forward VNĐ651 billion ($28.3 million) for upgrading the Đà Nẵng Bio-technology Centre and turn it into the South-central regional R&D Bio-Technology Centre.
The R&D
centre will supply research and development plans for high-tech farming,
bio-tech applications in environment and sustainable development projects in
the region in 2020-30.
The city
also called for investment in five high-tech farms to create a centre
for hi-tech-farming in the central and central highlands region.
The city has
offered to cut land-clearance fees by 50 per cent per hectare per year for
five years and $1,000 in support for investors per hectare each
year for five years.
Seven
suburban communes in the city were planned as an organic farm area in
Hòa Vang District on a total area of 540ha.
The Việt Nam
Dairy Products Joint-Stock Company (Vinamilk) has invested $26.5 million in a
dairy farm on 124ha in Hòa Phong Commune in Hòa Vang District.
Users warned over new
'cashback' apps
The Vietnam
Competition and Consumer Protection Authority (VCCA) has issued a warning
over cashback apps which lack transparency and showed signs of
illegal multi-level marketing.
VCCA said
that cashbank was an emerging model of business-to-consumer e-commerce and
used as a way to attract customers.
Some
e-commerce websites and apps were offering cashback with attractive rates
from 80 per cent to 100 per cent, even higher, for each transaction. Some
gave attractive commissions for those inviting new participants.
Such
attractive offers would be in the form of earning reward points which could
be redeemed for cash at very low rates, however.
VCCA also
pointed out that cashback could be in the form of cryptocurrencies, such
as GEM, CPB, Silling, USDT, ETH, ONE and VNDC which could be exchanged within
the internal system.
These
cryptocurrencies had not been recognised by laws as intermediaries for
payment and users would not be protected by law in case of disputes, VCCA
said.
For example,
the My Aladdinz app claimed to be member of one of the largest companies
in the world with a development history of 27 years. The app offered cashback
at rates of up to 80 per cent. However, users must use Vietnamese đồng to buy
the platform’s currency named GEM for transactions and the cashback was also
in GEM. On this platform, GEM could be converted into another cryptocurrency
named USDT and vice versa as an investment for profit.
Other
platforms named in the warning by the VCCA included Payback VN and
Tailoc888.
VCCA urged
people not to participate in these cashback websites and apps.
Multi-level
marketing businesses must comply with the Government’s Decree No
40/2018/NĐ-CP./.
Indonesia puts relocation of
capital city on hold to tackle pandemic
Indonesia
has put on a 33 billion USD project, initiated by President Joko Widodo, to
relocate the capital city to the island of Borneo as it grapples to rein in
the COVID-19pandemic.
Indonesian
planning minister Suharso Monoarfa said the government is putting as its
number one priority the recovery of the economy and overcoming the pandemic.
Making a
frank admission of the obstacles to the project, he said groundbreaking could
be delayed until 2022 or 2023, as the government focuses efforts on finding,
and then distributing a COVID-19 vaccine to the population of nearly 270
million.
Construction
of a state palace and other buildings was initially set to start by 2021,
along with upgrades of airports, sea ports and the building of access roads
in the forested area earmarked for transformation into a new smart city.
Civil servants were due to start moving by 2024.
SoftBank’s
chief executive Masayoshi Son, former British Prime Minister Tony Blair and
Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed al Nahyan have been enlisted
as advisers for the project.
Normally,
such a big project should bring considerable positive ripple effects for the
economy, but disbursing the government’s coronavirus stimulus response
appeared more urgent now, said Wellian Wiranto, an economist at OCBC Bank.
At present,
Indonesia could not afford to move its capital, as the pandemic’s strain on
the national budget leads to a ballooning fiscal deficit, another economist
said.
The downturn
could last longer than the government anticipates, running until the second
half of 2021, said Enny Sri Hartati of the Institute for Development of
Economics and Finance./.
Singapore to hold virtual IP
Week@SG
IP Week@SG,
a global conference organised by the Intellectual Property Office of
Singapore (IPOS), will go virtual this year from August 25-27.
It will
focus on the role of Intellectual Property (IP) and Intangible Assets (IA) in
helping companies amid the COVID-19 pandemic.
IPOS CEO
Rena Lee said COVID-19 has disrupted businesses and society in an
unprecedented way. Yet, innovations, especially in the digital space, have
flourished and presented companies with new opportunities to grow and thrive.
Innovation and IP are symbiotically linked.
Leading
industry players and heads of global IP offices will discuss these issues and
how companies can leverage IP/IA to improve cashflow, grow new business
revenue streams and reduce exposure to costly litigation due to IP
infringements in this crisis, she added.
Complimentary
webinars during IP Week@SG will address IP/IA issues that have come front and
centre as a result of COVID-19.
Participants
will also be able to hear from the heads of IP offices and organisations from
around the world including China, Japan, Singapore, the UK, the US, as well
as leading companies like ONE Championship, The Lego Group, Razer and Zouk
Group./.
Vinh Phuc promotes agricultural
processing industry
Besides its
strength in industries, in recent years, the northern province of Vinh Phuc
has maintained effective agricultural production with diverse farm produce
and breeding products, requiring it to promote the agricultural product
processing sector to enhance their value.
The
development of the processing industry is also expected to bring in
opportunities for agricultural product processing firms to restructure their
operation in the future.
During a
recent national online conference on promoting the agricultural product
processing sector and agricultural mechanization, leaders of the Government
and central ministries and sectors defined that processing industry makes
important contributions to the effective operation of enterprises, improving
incomes for farmers and increasing State budget collection.
In Vinh
Phuc, despite its strong industry sector, in processing, the province has yet
to mark its name in the Vietnam’s processing map as exempting for an animal
feed factory and a number of safe vegetable processing facilities, Vinh Phuc
has had few processed agricultural brand names.
Recognising
its unexploited potential and advantages in expanding the processing sector,
in recent years, the province has designed various policies and mechanisms to
encourage businesses to invest in the area.
Vinh Phuc
has asked the agricultural sector to coordinate closely with localities
across the province to remove obstacles facing the agriculture sector,
farmers and enterprises investing in agriculture.
Meanwhile,
the locality has actively sought and broadenedexport markets, while
encouraging farmers and companies to stay active in applying high
technologies in producing and processing agricultural products, thus
providing customers with fresh, clean and safe farm produce.
Statistics
showed that currently, the province is home to more than 1,300 agricultural
product and food processing facilities, of which, 25 are processing
enterprises and the rest are small-scaled facilities.
As part of
its efforts to associate the agricultural product processing sector with
trade promotion and market development, since 2013, Vinh Phuc has held a
number of large-scaled agricultural trade promotion events and dozens of
trade fairs and exhibitions, introducing major farm produce of the province
to the domestic market and creating the connectivity in producing and selling
of the products.
However, the
economic values produced by the processing sector have remained low and have
yet to match the potential and advantages of the province. Experts held that
the reasons behind the situation include risk factors threatening the
agricultural sector, including natural disasters, extreme weather conditions
and pandemics.
Besides,
some businesses wishing to invest in agriculture have faced difficulties in
seeking areas to locate their projects as the areas are not included in the
province’s planning scheme.
In order to
cope with the issues, the province has focused on adjusting, supplementing
and completing a number of policies to create favourable conditions for the
growth of economic sectors, especially farmers and businesses to get easier
access to land, capital resources and market, thus effectively investing in
agricultural production.
Vinh Phuc
has also designed a number of policies and mechanisms to attract more
investment projects in agricultural processing.
Officials
from the provincial Department of Planning and Investment said the provincial
authorities will continue to push forward with administrative reform,
focusing on streamlining administrative procedures to reduce time and costs
for enterprises. Vinh Phuc will promote the application of information
technology (IT) in administrative procedures with the goal of creating the
best possible environment for production and business, thus enhancing the
attraction of FDI and investment from society.
At the same
time, attention will be paid to removing difficulties and obstacles faced by
businesses in various fields, from business registration to business
conditions, customs clearance and taxation.
During the
period of social distancing to curb the spread of the COVID-19 pandemic,
agencies in Vinh Phuc still maintained their connections with investors
through many channels, providing them with consultations and latest
information. The province has also intensified online investment promotion
activities, so as to attract investors after the pandemic is put under
control./.
Indonesia focuses on
infrastructure development to support growth
An
Indonesian minister has affirmed that the country’s government is strongly
committed to developing land transportation infrastructure nationwide to
support economic growth.
At a webinar
on August 19, Coordinating Minister of Maritime Affairs and Investment Luhut
Binsar Pandjaitan cited results of a study as showing that one-percent hike
in the construction of roads will raise economic growth by 8.8 percent, the
Antara news agency reported.
He noted the
government has deemed it necessary to develop road infrastructure through
public and private investment under a government and business entity
partnership scheme.
The minister
also believed that Indonesia might be able to save nearly 100 trillion Rp
(6.7 billion USD) annually by developing a train-based mass transportation
system. Of the figure, 40 trillion Rp will be saved from the operating costs
of motor vehicles and 60 trillion Rp from the travel time.
The value is
equivalent to 4 percent of the regional gross domestic product of
Jabodetabek, which is the Greater Jakarta areas covering Jakarta, Bogor,
Depok, Tangerang, and Bekasi, according to the official.
The use of
the mass transportation means will also result in a significant reduction in
traffic congestion, Pandjaitan said.
Road
connectivity, including through toll roads, serves as an essential component
to drive economic transformation to the manufacturing and service sectors.
Therefore, Indonesia will boost developing a land transportation system
across the country, from toll roads in Sulawesi and Bali to road lines in
Kalimantan, Sulawesi and other localities, he added./.
Site clearance for Long Thanh
airport intensified
An additional
VND275 billion (USD11.95-million) has been spent for the site clearance of
Long Thanh International Airport in the southern province of Dong Nai.The
compensation has been offered for 130 households, ranging from VND32 million
(USD1,391) to VND8 billion (USD347,826) each.
This is the
fourth compensation payout for the project’s site clearance.
Early next
month, local authorities will pay more compensation for the affected
households.
Earlier, a
total of VND395 billion (USD17.17 million) was allocated for the site
clearance compensation of the project.
Some
1,800-hectares of clean land is scheduled to be handed over for the project
in October this year, while the compensation for the remaining 3,190 hectares
will be finished in the remaining months of this year.
Long Thanh
International Airport will be built on an area of 5,000 ha and is the most
expensive project in Vietnamese history./.
Mango exporters aim to remove
hurdles amid cases of origin fraud
A number of localities which are home to large mango-growing areas throughout the Mekong Delta region have been striving to find new export markets following the suspension of mango imports by China due to a number of firms faking origin traceability codes.
Dang Phuc
Nguyen, general secretary of the Vietnam Fruit and Vegetables Association,
says the Chinese suspension of mango imports has exerted a significant impact
on local businesses as the northern neighbour is the largest consumer of
Vietnamese fruit, accounting for over 70% of total export turnover last
year.
According to
the Plant Protection Department under the Ministry of Agriculture and Rural
Development, despite this suspension yet to have an impact on the country’s
mango exports because of the season ending for the fruit in the south,
domestic businesses are concerned about seeking fresh outlets for their
products in the near future.
Nguyen notes
that with Vietnamese mangos being grown in accordance to standards suitable
for export to the Chinese market, these fruits will not be eligible to enter
other demanding markets such as the United States and Japan.
Indeed,
China may even tighten the inspection process for other Vietnamese fruit and
vegetable products after the suspension of mango imports, Nguyen adds.
The Plant
Protection Department therefore emphasizes that two of the 82 mango-growing
regions, in addition to one of the 12 packaging facilities in Dong Thap, were
named among the violation list.
Most
notably, Dong Thap's packaging and exporting establishments state that
counterfeiters have faked origin traceability codes or have alternatively
used their growing area codes in an effort to export the fruit, thus leading
to poor-quality products and affecting the prestige of Vietnamese mangoes.
Dinh Kim
Nhung, deputy director of Kim Nhung Dong Thap Co., Ltd., suggests that there
should be certifications granted by the owners of growing areas for each
export shipment, which will therefore be eligible for customs clearance.
These
measures will serve to protect genuine businesses and farmers, whilst
simultaneously avoiding counterfeiting origin traceability codes.
The
Departments of Industry and Trade of provinces in the Mekong Delta have been
working closely with the nation’s trade counselors and trade offices based
abroad in order to diversify markets for mangoes and increase the export of
the fruit moving forward.
In line with
this, trade promotion schemes via online platforms will be held as a way of
introducing the fruit to consumers.
The Vietnam
Fruit and Vegetables Association stresses the necessity of increasing
intensive processing and giving due attention to the domestic market
through strengthening connectivity with distributors and supermarkets./.
PM requests people-centred
economic recovery solutions
Economic
development must be ensured amid the COVID-19 pandemic to provide jobs and
guarantee people’s livelihoods, Prime Minister Nguyen Xuan Phuc has said.
The PM
chaired a Government meeting on Wednesday to discuss draft development plans
for the coming years, asking for effective and feasible solutions to minimise
COVID-19-related losses and recover the economy in both short and medium
terms.
The event
looked into the draft socio-economic development plan and State budget
estimates for 2021, the draft financial-State budget plan for 2021-2023,
along with the draft medium-term socio-economic development plan and public
investment plan for 2021-2025.
During his
speech, PM Phuc underlined the need for staying proactive in governance and
plan-making, noting that facing the serious impacts of COVID-19, effective
and feasible solutions are necessary to ease losses and spur economic
development in both 2021 and 2021-2025.
He asked
Government members to exert efforts to support socio-economic recovery this
year, as well as beyond.
Noting
countries around the world have taken measures like large-scale aid packages
to minimise the impacts of the pandemic, especially on people and businesses,
the PM requested ministries and sectors, especially the Ministry of Finance,
the Ministry of Planning and Investment, the Ministry of Labour, Invalids and
Social Affairs, and localities, to devise support solutions strong enough to
help affected people and enterprises.
Those
solutions must be proactive, flexible and match the “new normal” period. In
particular, fiscal and monetary policies should be more flexible to stimulate
demand, create jobs and promote growth while maintaining macro-economic
stability, according to the Government leader.
Meanwhile,
the State budget plan for 2021 should include funds for social security
policies for workers facing job losses and those in the informal sector, and
for vocational training to help labourers adapt to changes in supply chains.
PM Phuc also
requested continued assistance for certain sectors heavily impacted by the
pandemic like transportation, tourism, textile-garment, health care, and education;
along with policies to encourage rational consumption.
He demanded
priority be given to development investment, especially for socio-economic
infrastructure, including transport facilities, by using every possible
resource.
The public
investment plan for 2021-2025 needs to include projects and programmes
important to national development like those on the North-South Expressway,
coastal roads, and digital economy, he added.
The Prime
Minister emphasised reducing regular expenditures, strict and effective
control over public investment capital, and proper State budget allocation./.
PM calls for full
disbursement of public investment
Prime
Minister Nguyen Xuan Phuc has requested that public investment capital
be fully disbursed this year, viewing this as a key political task that
requires the involvement of the entire political system.
During a
teleconference with ministries, agencies, and localities on August 21, the
second of its kind since the first on July 16, the PM said localities have
been more aware of the need for the disbursement of public investment
capital, which has helped create jobs and propel growth.
Nearly 45
percent of all public investment capital is likely to be disbursed by the end
of August. Most ministries, agencies, and localities have pledged to disburse
95-100 percent, especially those with large amounts, such as Hanoi, Ho Chi
Minh City, and Hai Phong, as well as those with many national projects, such
as Dong Nai province.
According to
the Ministry of Planning and Investment, 52 out of 53 ministries and
centrally-run agencies and all of the country's 63 provinces and cities have
outlined plans to allocate State budget capital this year.
Nearly 455.5
trillion VND (19.8 billion USD) from the State budget, or 95.4 percent of the
plan, has been earmarked for eligible projects.
Seven
ministries and centrally-run agencies and 31 provinces and cities have
proposed increasing central budget allocations by over 13.5 trillion VND.
Seven
working delegations led by the PM and Deputy Prime Ministers and the
ministers of finance and planning and investment have inspected the effort at
ministries and localities to tackle difficulties.
The PM said
a symposium on official development assistance (ODA) will be held in the near
future. The Ministry of Planning and Investment has been assigned to work
closely with the Finance Ministry and the Government Office to prepare for
the event.
If public
investment capital is fully disbursed, the economy could grow by 1
percent. Therefore, leaders of 31 ministries and centrally-run agencies and
13 localities with disbursement of less than 35 percent and 15
percent must learn from experience and disburse all capital this year, he
said.
Secretaries
of municipal and provincial Party Committees, Chairpersons of municipal and
provincial People’s Committees, ministers, and heads of sectors are also be
responsible for the effort.
PM Phuc
agreed to establish a working group in charge of dealing with difficulties in
key projects.
The
government leader also urged the speeding up of construction of key national
projects, such as Long Thanh International Airport, the eastern section of
the North-South Expressway, and the My Thuan - Can Tho Expressway.
VNN
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Chủ Nhật, 23 tháng 8, 2020
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