VIETNAM'S
BUSINESS NEWS HEADLINES AUGUST 7
02:15
Lao Cai asked to finalise proposal for construction of
Sa Pa Airport
Deputy Prime
Minister Trinh Dinh Dung has urged the People’s Committee of northern Lao Cai
province to finalise its proposal for construction of Sa Pa Airport, with
opinions of relevant ministries and agencies taken into account.
The proposal
must be submitted to Prime Minister Nguyen Xuan Phuc for review before it
would be approved in-principle, Dung said in an official dispatch sent to the
Lao Cai People’s Committee on August 3.
In 2018, Lao
Cai proposed building an airport in Sa Pa resort town at a total cost of
nearly 5.8 trillion VND (252 million USD) to the Ministry of Transport.
The airport
will cover 371ha in Cam Con commune, Bao Yen district. Its construction will
last four years under a public-private partnership. Once completed, it will
be capable of serving 3 million passengers per year.
Located on
the economic corridor of Kunming – Lao Cai – Hanoi – Hai Phong, Lao Cai is an
economic belt based on trade development among provinces in Southwest China.
Currently,
the province’s transport system incorporates only roads and railways.
Therefore, an airport is viewed as crucial to improve local transport
network, creating new engine for the development of Lao Cai and the northwest
mountainous region at large./.
Domestic gold prices break
new record peak amid global uncertainties
The domestic price of gold surged to reach an all-time high of VND59.85 million per tael on the morning of August 6 after the precious metal skyrocketed to US$2,055.1 per ounce in the global market.
The opening
of the market saw one tael of SJC gold at the Saigon Gold, Silver and
Gemstone joint stock company being purchased for VND58.6 million per tael and
sold at VND59.85 million per tael, marking an increase of between VND700,000
to VND750,000 per tael in comparison to trading on August 5.
Simultaneously,
the DOJI Gold and Gems Group were trading at VND58.4 million for buying
and 59.5 million for selling per tael, representing a similar rise of
VND650,000 per tael from the previous day.
Elsewhere,
gold firm Bao Tin Minh Chau at 10:38am listed its prices for the precious
metal at VND58.75 million for buying and VND59.60 million for selling.
The recent
fluctuations occurring in domestic gold prices can largely be attributed to
the impact of the global gold market which has seen prices witness a sharp
rise of 0.9% to US$2,035.8 per ounce, with prices even reaching US$2,055.1
per ounce during the opening session of August 6./.
HCMC rejects Saigon Co.op’s
capital rise
The HCMC
Department of Planning and Investment has rejected Saigon Co.op’s 34th
business registration certificate, in which the cooperative raised its
chartered capital from VND3.2 trillion to VND6.797 trillion.
The
department did not accept the additional capital of VND3.597 trillion, which
was contributed by 20 member cooperatives of Saigon Co.op, and, as such,
recovered the 33rd business registration certificate, following which the
cooperative’s chartered capital is now VND3.2 trillion.
A leader of
Saigon Co.op said the cooperative has been informed of the decision. The
additional capital of VND3.597 trillion has not been used so the decision
will not affect the operations of the cooperative.
On July 27,
the HCMC Inspectorate unearthed a number of violations at Saigon Co.op,
including wrongdoings in raising its capital.
The
inspectorate announced that Saigon Co.op did not comply with the Cooperative
Law while raising its chartered capital in 2020.
At its
members general meeting on January 30, Saigon Co.op adopted a resolution to
raise its chartered capital from VND3.2 trillion to VND6.797 trillion. Twenty
of 26 Saigon Co.op’s member cooperatives contributed VND3.597 trillion.
However,
some member cooperatives that posted an after-tax profit of approximately
VND5-6 billion between 2018 and 2019 did not contribute capital, while member
cooperatives with a trivial after-tax profit ranging between VND24 and VND500
million contributed hundreds of billions of dong.
According to
the HCMC Inspectorate, some member cooperatives of Saigon Co.op mobilized
capital from sources that are not members of Saigon Co.op, going against the
cooperative’s resolution at the January 30 members general meeting.
Moreover,
Saigon Co.op’s member cooperatives contributed capital before they completed
the certification registration, violating article 1, clause 28 of the
Cooperative Law and did not provide documents relating to the capital
contribution, violating article 2, clause 61 of the Cooperative Law.
Besides
this, signs of capital appropriation at Saigon Co.op since the cooperative
was founded infringed the retained asset ownership rights, affecting the
economic security of HCMC and the country as a whole.
Founded in
1989, Saigon Co.op is currently one of the leading retailers in HCMC. The
cooperative’s revenue in 2019 reached more than VND35 trillion./.
Hoa Phat steel sales surge in
July
Leading
steel manufacturer Hoa Phat Group sold 300,000 tonnes of construction steel
in July, a rise of 19 percent over that in June and 27.5 percent year on
year.
According to
the firm, last month it exported 53,500 tonnes of steel, doubling the volume
recorded in the same period last year.
Sales in the
southern region rose two times year on year to 75,000 tonnes, mostly thanks
to civil construction works. The launching of public infrastructure projects
also helped push Hoa Phat’s steel sales up.
In the first
seven months of 2020, Hoa Phat supplied to the market 1.81 million tonnes of
construction steel, up 14.5 percent year on year, including 256,500 tonnes
shipped to foreign markets, an increase of 73.3 percent and equivalent to the
total export volume in the whole year of 2019.
Major export
markets of Hoa Phat steel included Japan, the Republic of Korea, Laos,
Malaysia, Australia, Canada, Thailand, and Cambodia.
Along with
ready-to-use steel, Hoa Phat also sold 1 million tonnes of steel billets for
construction steel production in seven months, with 169,000 tonnes in July
alone.
The
completion of Hoa Phat Dung Quat port also made great contributions to the
transport of Hoa Phat steel, thus promoting its sales. Recently, the port
received a 176,000 tonne capsize vessel, the biggest of its kind it had ever
served./.
HD Bank’s profit up 31.5 pct.
in H1
The HCM City
Development Joint Stock Commercial Bank (HD Bank) reported impressive results
on August 3 for the first half of 2020, with pre-tax profit growing 31.5
percent year-on-year to over 2.9 trillion VND (124.3 million USD).
Its
non-performing loan ratio was kept firmly under control, at 1.1 percent, the
lowest among all the domestic banks.
Several
indicators for the first half posted strong growth. Total mobilised capital,
for instance, reached close to 213.94 trillion VND, a year-on-year increase
of 18.2 percent, while total outstanding loans rose 10.3 percent to more than
168.77 trillion VND.
The bank
also recorded a 22.7 percent increase in total consolidated operating income,
exceeding 6.34 trillion VND. This included over 5.66 trillion VND in net
interest income; 30.1 percent higher than in the same period last year.
Operating
costs were well-managed and stood at2.74 trillion VND, making its cost income
ratio (CIR) fall to 43.1 percent from last year’s 47 percent.
Its return
on equity (ROE) and return on asset (ROA) stood at 21.6 percent and 1.97
percent, respectively; much higher than a year earlier.
In the face
of COVID-19, HD Bank has designed credit packages to support affected
borrowers, including a preferential credit package worth 24 trillion VND for
small- and medium-sized enterprises and a 10 trillion VND soft credit package
for individuals and micro enterprises./.
Indonesia to provide cash
transfers, working loans for 12 mln MSMEs
The
Indonesian government is set to provide cash transfers and working capital
loans for micro, small and medium enterprises (MSMEs) in its latest bid to
boost economic growth amid the COVID-19 pandemic.
Deputy
Minister of State-Owned Enterprises Budi Gunadi Sadikin, who is also head of
the national economic recovery task force, said on July 29 that the
government would provide 2.4 million rupiah (165 USD) in cash each for 10 to
12 million MSMEs, as well as working capital loans of 2 million rupiah for MSMEs.
The
assistance is expected to maintain people’s income and be used as working
capital to support their businesses, he told reporters during a press
briefing. The government will also add working capital loans with low
interest for those who have already started businesses.
President
Joko Widodo has asked the national economic recovery task force to focus on
boosting economic growth in the third quarter of 2020, as well as to maintain
employment and income levels to prevent a recession this year, Budi went on
to say.
MSMEs have
been particularly hit hard by the economic downturn, as the government
expects the economy to grow by 1 percent at best or shrink by 0.4 percent at
worst this year. It also forecasts a contraction of around 5 percent in the
year’s second quarter due to large-scale social restrictions to curb the
spread of COVID-19.
The
government has allocated 695.2 trillion rupiah to strengthen the country’s
virus response and boost economic growth, expanding the fiscal deficit to
6.34 percent of gross domestic product (GDP).
On the same
day, the government also guaranteed working capital loans worth 100 trillion
rupiah for labour-intensive businesses to help them survive the pandemic.
Finance
Minister Sri Mulyani Indrawati stated that to be eligible for the loan
guarantee programme, firms are required to employ at least 300 individuals,
prove that their activities have been affected by the pandemic, and have a
good track record of paying back loans, according to the minister.
Amid the
uncertainty about how long the COVID-19 pandemic battle will need to be
fought, the government has announced that it will raise its 2021 state budget
deficit assumption to 5.2 percent of GDP. The change will be proposed to the
House of Representatives, which previously agreed to the government’s
proposal of a deficit between 4.17 percent and 4.7 percent of GDP./.
Indonesia allows oil and gas
investors to choose contract options
The
Indonesian government has announced that it had revised a 2017 law that will
give oil and gas investors more flexibility when choosing their contract
options for exploration, according to Reuters.
The
revisions, which came into effect on July 16, allow contractors to choose
between different sharing contracts including the “cost recovery” and “gross
split” systems in an effort to boost investment.
Indonesia
adopted the “gross split” scheme for oil and gas production deals in 2017, in
which contractors shoulder the cost of exploration and production in exchange
for retaining a bigger portion of the oil and gas they recover.
That
represented a shift from the “cost recovery” scheme used previously, in which
the government reimbursed the exploration and production costs borne by the
contractors in exchange for a higher share of companies’ oil and gas earnings.
Under the
revised law, expiring contracts no longer have to be converted to gross split
production sharing contracts from cost recovery contracts.
In the case
where state oil company PT Pertamina or its affiliates are appointed, the
ministry will determine the cooperation contract./.
Cambodia extends tax breaks
for tourism-dependent businesses
The
Cambodian government has decided to extend tax breaks for another two months
for tourism-dependent businesses to overcome difficulties during the COVID-19
crisis, the Ministry of Tourism said on August 3.
The
exemption, which takes effect in August and September, is granted to hotels,
guesthouses, restaurants and tour companies in capital Phnom Penh and in Siem
Reap, Sihanouk, Kep and Kampot provinces, as well as in Bavet and Poipet
cities, according to the ministry.
It added
that the government will continue transferring 40 USD per month for staff and
workers in the tourism sector for another two months.
Tourism
Minister Thong Khon said over 3,000 tourism-related businesses in Cambodia
have been closed due to COVID-19, leaving more than 50,000 workers
unemployed.
Last
weekend, the government announced that it will continue supporting unemployed
workers in the garment-textile sector for another two months. Each will
receive 40 USD per month from August to September 2020 and additional 30 USD
per month from their employer./.
PMIs in Southeast Asia see
normalisation but far from sustainability
Gradual
improvement in the purchasing managing indices (PMIs) across Southeast Asia
shows some return to normalisation, but a sustained recovery is still far
away, according to a report released by Barclays Research on August 3.
PMIs
continue to be capped by still-weak demand, the report said, adding that
confidence about the business environment in the near-term remains low,
mirrored in the employment sub-index, which remains deep in contraction
territory for all of Southeast Asia.
According to
the report, it is likely that business sentiment is largely impacted by
external demand conditions - the export orders sub-index remains materially
below pre-COVID-19 levels, even for countries that showed large
month-to-month improvement in the index reading.
The PMI
reading for July in Indonesia and Thailand showed improvement over June's
data following some lifting of restrictions last month, Barclays noted.
However, it
said the improvement in Thailand has been much slower than expected, despite
the country urgently re-opened its economy.
Meanwhile,
the Philippines' manufacturing PMI declined to 48.4 points, down from 49.6 in
June, due to impacts of tightening rules to prevent COVID-19 in some parts of
the country such as Cebu, it said.
As Manila
moves back into a tighter lockdown from August 4, Barclays said it is
expecting the Philippines' PMI to fall deeper into contraction territory in
August.
For now,
Malaysia is the only country in Southeast Asia that has its PMI to be around
50-point level, reaching 51 in June and 50 in July./.
'One-trillion-dong profit
club' led by Vinhomes JSC
Twenty-five
companies have entered the “one-trillion-dong profit club” for January-June,
despite the economy being ravaged by the COVID-19 pandemic.
Leading the
chart is residential real estate firm Vinhomes JSC – a member of conglomerate
Vingroup JSC.
Vinhomes in
the first six months recorded 11.45 trillion VND (490.2 million USD) of
post-tax profit, up slightly from last year’s figure, though post-tax profit
in the second quarter dropped 55 percent year-on-year to 3.8 trillion VND.
The real
estate company attributed the growth of post-tax profit in January-June to
successful sales of real estate projects, especially in the first quarter
when coronavirus hardly had any impact on the Vietnamese economy.
The Joint
Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) ranked
second with a six-month post-tax profit of nearly 8.8 trillion VND.
The figure
was down 3 percent year-on-year.
Five
companies which had post-tax profits of between 4 trillion VND and 6 trillion
VND are PetroVietnam Gas (PV Gas), steel producer Hoa Phat, the Vietnam
Prosperity Joint Stock Commercial Bank (VP Bank), the Vietnam Technological
and Commercial Joint Stock Bank (Techcombank), the Vietnam Dairy Products JSC
(Vinamilk), and the Joint Stock Commercial Bank for Industry and Trade
(Vietinbank).
The Joint
Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and
Asia Commercial Joint Stock Bank (ACB) recorded post-tax profits in the first
six months of 3.06 trillion VND and 3.47 trillion VND, respectively.
The HCM City
Development Joint Stock Bank (HD Bank) announced its post-tax profit in the
first half of the year was 2 trillion VND.
Other
companies such as PetroVietnam Power Corporation (PV Power), real estate firm
Novaland, Saigon-Hanoi Joint Stock Commercial Bank (SHB), brewer Sabeco and
Vingroup JSC reported post-tax profits ranged from 1 trillion VND to 1.93
trillion VND.
Banks
continued performing well in the first half of the year despite the impact of
the pandemic as half of the 21 companies in the “one-trillion-dong profit
club” are in the banking sector.
The
securities sector had one representative, Techcombank Securities Co (TCBS),
recording a 1 trillion VND post-tax profit in the first six months./.
Local businesses promise
there will be no shortage of essential goods as COVID-19 returns
Producers
and distributors of essential goods are striving to ensure sufficient supply
amid the return of COVID-19.
Retailers in
Viet Nam are increasing their stocks of essential goods to ensure they can
meet the rising demand during the fresh COVID-19 outbreak.
The HCM City
Department of Industry and Trade has, for instance, worked with large food
producers and retailers to ensure there is no supply shortfall, while the
businesses are increasing their output and stocks of raw materials.
Currently
fresh farm produce, face masks, hand gels, and instant noodles are the most
in demand at supermarkets.
Retailers
such as Saigon Co.op and Big C have increased their stocks of essential goods
to ensure there is sufficient supply.
Saigon
Co.op, for instance, has enough stocks to last five months, including 2.5
million medical masks, 10 million antibacterial cloth masks and 100,000
bottles of hand sanitisers.
Nguyen Anh
Duc, Saigon Co.op's general director, told Nguoi Lao Dong newspaper that the
company is working with its suppliers to offer discounts and promotions,
organise mobile selling trips to remote areas and industrial zones and
promote online shopping to reduce the number of visitors to its stores.
Masan Group,
which operates 3,000 VinMart and VinMart+ stores across Viet Nam and is
hoping to ensure sufficient supply until December, has in stock over 2.5
million antibacterial cloth masks and three million bottles of hand
sanitisers, which will last through September.
The company
has also promised not to increase the prices of essential items.
MM Mega
Market is increasing its supply of masks to Da Nang and offering promotions./.
Vietinbank posted US$319.6
million before-tax profit
Vietinbank,
listed as CTG, posted pre-tax profit of more than VND7.4 trillion (US$319.6
million) in the first half of the year, representing a 40 per cent
year-on-year increase.
Vietinbank
has announced its financial report, saying that in the context of weak growth
in net interest income due to the reduction of lending interest rates to
support customers, its non-credit business segment showed positive growth
results.
In the first
six months of 2020, the bank’s net interest income only increased by 0.2 per
cent over the same period to VND16.2 trillion.
In return,
the bank shifted its income structure, boosting non-credit income to bring
positive results. Profit from service activities in the period increased by
10.5 per cent over the same period, reaching VND2.16 trillion. Profit from
foreign exchange trading increased by 31.7 per cent to VND1 trillion.
Earnings
from securities trading increased by 185 per cent to VND389 billion. Other
operating profit also increased strongly by 36 per cent to VND470 billion.
In the first
half of the year, interest from non-credit activities contributed 21.5 per
cent to the bank's total operating income, up from 17.3 per cent in the same
period of 2019.
Similar to
many other banks, VietinBank began tightening operating expenses, down 3.8
per cent in the period, to VND6.6 trillion.
Risk
provision expense decreased by 10.6 per cent to VND6.6 trillion.
As of June
30, VietinBank's loan balance is VND941.4 trillion, up by 0.7 per cent from
the same period last year. Its total assets reached nearly VND1.24
quadrillion, down slightly by 0.1 per cent compared to the beginning of the
year. Customer deposits increased by 2.3 per cent to VND913.3 trillion.
VietinBank's
bad debt on June 30 was VND15.9 trillion, accounting for 1.7 per cent of
total loans.
In the first
six months, the bank bought over VND6 trillion of bad debts at Viet Nam Asset
Management Company (VAMC), bringing the total value of debt purchased to date
(after about 1.5 years) to nearly VND6.8 trillion. VietinBank also made a
risk provision of about 50 per cent of the debt value, speeding up the
restructuring plan associated with handling bad debts in the period of
2016-20./.
Industrial production expands
at the lowest rate in many years
Industrial
production struggled in July, expanding at just 3.6 per cent over June and 1.1
per cent over the same period last year, the lowest rate since 2013, latest
updates of the General Statistics Office (GSO) revealed.
For the
January-July period, the index of industrial production (IIP) increased by
2.6 per cent, much lower than the expansion of 9.4 per cent recorded in the
same period of 2019 and also the lowest rate in many years.
The global
outbreak of COVID-19 together with the reoccurrence in some provinces and
cities of Việt Nam in the past two weeks pushed industrial production activities
into difficulties again, causing disruptions in supply chains, despite a
robust growth in June when the virus was successfully contained. In
comparison, IIP in June expanded by 10.3 per cent against May and 7.2 per
cent against the same period last year.
For the
seven-month period, the manufacturing and processing industry rose by 4.2 per
cent, compared to 10.7 per cent of the same period last year, electricity
production and distribution up 2.1 per cent, water supply and waste treatment
up 3.3 per cent.
Several
industries saw significant drops. The mining industry production fell by 7.8
per cent, causing a drop of 1.2 percentage point in overall IIP expansion
rate.
The
production of motor vehicles dropped by 15.4 per cent, crude oil and gas down
by 11.3 per cent and beverage products by 6.3 per cent.
Of note, the
production of medicine, pharmaceutical chemicals and medicinal materials was
up by 27.1 per cent.
The number
of labourers woking in industrial production companies as of July 1 was 1.3
per cent higher the previous month but 1.8 per cent lower than the same
period last year.
Experts
predicted that the industrial production might continue to struggle in the
remaining months of this year, especially when COVID-19 community
transmissions have reoccured in Việt Nam and the Government must strive to
contain the virus./.
ETFs attracts capital despite
COVID-19 resurgence
Despite the
COVID-19 resurgence, exchange-traded funds (ETFs) still attracted hundreds of
billions of dong in the second half of July.
The Viet
Nam's stock market has faced a gloomy period since the resurgence of community
COVID-19 transmission in Da Nang City on July 24.
The VN-Index
has fallen sharply from 870 points to below 800 points, equivalent to a
decline of more than 8 per cent in just half a month.
Still, the
major ETFs on the market such as Vaneck Vectors Vietnam ETF (VNM ETF), FTSE
Vietnam ETF, VFMVN30 ETF, VFMVN Diamond ETF and SSIAM VNFin Lead ETF drew
nearly VND500 billion (U$21.3 million).
VNM ETF
attracted $9.16 million. The proportion of Vietnamese stocks currently
accounts for about 70 per cent of VNM ETF’s portfolio, so it is estimated
that the fund net bought $6.4 million of Vietnamese stocks over the past two
weeks.
FTSE Vietnam
ETF also lured $2.8 million in the second half of July. This fund drew $6.3
million in the whole month.
The largest
domestic ETF in the market, VFMVN30 ETF, also attracted capital of $2.8
million in the second half of July.
Other
domestic ETFs such as VFMVN Diamond ETF and SSIAM VNFin Lead ETF drew $3.2
million and $4.3 million in the second half of July, respectively.
With the
ETFs attracting capital and the inception of new funds such as SSIAM VN30 ETF
or VinaCapital VN100 ETF, market sentiment can be improved in the context of
complicated COVID-19 pandemic./.
ACB get nod to raise
charter capital
The State
Bank of Viet Nam has approved Asia Commercial Bank (ACB)’s plan to raise its
charter capital from VND16.6 trillion (US$721 million) to VND21.6 trillion.
The plan
will be implemented via dividend payment in shares to shareholders.
ACB plans to
issue 498.8 million shares to pay the dividend, equivalent to a total value
of VND4.98 trillion.
The payment
ratio is 30 per cent, meaning every shareholder will receive three new shares
for every 10 they hold.
The expected
issuance time is the fourth quarter of this year.
Previously,
ACB planned to pay a 2019 dividend in shares and cash. However, due to the
COVID-19 pandemic, the State Bank required banks to use resources to reduce
interest rates, support businesses and not pay dividends in cash.
ACB also
plans to pay the 2020 dividend at a rate of not less than 20 per cent.
In the first
six months of this year, ACB recorded a consolidated pre-tax profit of VND3.8
trillion, up 5.4 per cent over the same period last year.
The bank
plans to earn a pre-tax profit of VND7.6 trillion this year./.
Viettel Global posts US$50.7
million before-tax profit
Viettel
Global, a foreign investment unit of telecoms giant Viettel, posted a
before-tax profit of VND1.17 trillion (US$50.7 million) in the first half of
this year, equivalent to the same period last year.
Viettel’s
Global revenue rose 9.7 per cent to VND8.6 trillion in the period thanks to
growth in its three markets of Southern Africa, Latin America and Southeast
Asia despite the impact of the COVID-19 pandemic. Its gross profit increased
by nearly 19 per cent to VND3.3 trillion.
A total of
51 per cent of its revenue came from Southeast Asia, where its partner
companies Viettel Myanmar, Star Telecom (Laos) and Metcom (Cambodia) saw
double-digit growth in revenue.
Net revenue
from business activities increased by 6 per cent to VND4.3 trillion the
second quarter alone due to major currency fluctuations in its markets caused
by the pandemic.
As of June
30, Viettel Global's total assets and owner's equities were VND59.3 trillion
and VND29.4 trillion respectively.
Established
in 2006, Viettel Global currently operates in Cambodia, Laos, Timor Leste,
Mozambique, Burundi, Haiti, Peru, Cameroon, Tanzania and Myanmar./.
Japan to promote trade
document digitalization platform to ASEAN
The Japanese
Government plans to promote a platform to member countries of the Association
of Southeast Asian Nations (ASEAN) for digitalizing all trade-related
documents, Kyodo News cited sources close to the matter as reporting on
August 5.
Japan
expects the platform to strengthen the supply chain in the region where many
Japanese companies have production bases while deepening economic ties with
the 10-member bloc, they said.
The
digitalization platform, currently being developed by a consortium of 18 Japanese
companies, utilizes a blockchain technology to prevent data hacking, the
sources said.
The
consortium, whose participants include NTT Data Corp., Mitsubishi Corp. and
Nippon Express Co., will run a trial of the platform this year in Vietnam,
the chair of ASEAN for 2020, the sources said.
By
eliminating massive exchanges of paper between trade stakeholders, the
platform is expected to sharply reduce the costs and time required for
customs documentation work. It can also digitalize procedures for credit
letter issuance by banks and trade insurance contracts.
As the
system accumulates data, it can help search for alternative suppliers based
on past trade and credit histories in the event of supply chain disruptions,
the sources said.
The
platform's development comes as the Ministry of Economy, Trade and Industry
is providing funding for creation of new businesses through digitalization
projects in Asian countries.
ASEAN groups
10 members - Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand and Vietnam./.
Vietnam works to boost longan
exports to China
Vietnamese
Deputy Minister of Agriculture and Rural Development Le Quoc Doanh on August
5 worked with Commercial Counsellor of the Chinese Embassy in Vietnam Hu Suo
Jin to boost exports of farm produce, especially longan, to China.
Doanh said
the Chinese Embassy in Vietnam has been closely working with the ministry to
remove difficulties in the shipment of Vietnamese agricultural products to
China.
In the
recent time, the export and import of agro-forestry-fishery products between
the two countries have been declining due to the COVID-19 pandemic, he added.
The Deputy
Minister hoped the Chinese Embassy and relevant agencies will continue
addressing difficulties in the field since the pandenic remains complicated.
Vietnam
wants to boost longan and lychee exports to China as these fruits could be
processed into many other products, he added.
Hu said
China is a major and traditional market of Vietnam which is also the biggest
trade partner of China in the Association of Southeast Asian Nations (ASEAN).
Vietnam has
shipped many fruits to China, he said, adding that China has purchased over
60,000 tonnes of lychees from the northern province of Bac Giang – the
largest lychee producer in Vietnam.
For longan,
Hu said he had worked with the Department of Industry and Trade of Hung Yen –
which is well-known for this specialty fruit – and the Vietnam Trade
Promotion Agency under the Ministry of Industry and Trade to boost exports.
The Chinese
Embassy is willing to coordinate with Vietnamese relevant agencies to remove
difficulties such as holding virtual meetings, contacting with major
businesses in China, and facilitating the shipment of Vietnamese longan, he
promised./.
Thailand backs economic
recovery projects
Thailand’s
cabinet on August 4 approved a budget of 884.62 million baht (28.5 million
USD) to fund 157 economic recovery projects in 57 out of 77 provinces
nationwide that have been hit by the COVID-19 pandemic.
Deputy
government spokeswoman Rachada Dhnadirek said the money would be allotted to
support many farming businesses, including organic agriculture, goat farms
and mulberry farms. Some of it would also be used to promote businesses
linked to tourism in the provinces, he added.
For the
first time since 2014, the Thai economy has decreased by 1.8 percent
year-on-year in the first quarter of 2020.
The Bank of
Thailand (BoT) has just estimated that the Southeast Asia's second largest
economy could see a record drop of 13 percent in the second quarter of this
year when economic activities are delayed due to restriction measures against
COVID-19./.
Vietsovpetro exploits 500
million cubic metres of gas at Thien Ung field
The
Russia-Vietnam oil and gas joint venture (Vietsovpetro) has pumped up 500
million cubic metres of gas from Thien Ung field, which has been in operation
since late 2016.
The Thien
Ung field development project, 270 km southeast of Vung Tau city, is a
component project under the gas development plan of the Vietnam Oil and Gas
Group (PetroVietnam).
As planned,
exploited products from Thien Ung will be brought offshore via the Nam Con
Son 2 pipeline - Phase 2.
Vietsovpetro
will drill new fields to provide recipients with an estimated gas output of
up to 2 million cubic metres per day.
The
operation of the BK-TNG rig at the Thien Ung field aims to create
infrastructure connectivity and promote the exploration and exploitation
of gas-condensate fields in the Nam Con Son basin area and the southern
continental shelf of Vietnam, as well as contribute to ensuring national
energy security and asserting national sovereignty over seas and islands./.
Indonesia's economy contracts
for first time in two decades
Indonesia's
economy contracted in the second quarter for the first time in more than two
decades as it was slammed by coronavirus restrictions, with warnings that the
recovery could be among the weakest in Southeast Asia.
Output in
the region's biggest economy slumped 5.3 percent on-year in April-June, the
country’s statistics agency said. That marked Indonesia's first contraction
since the first quarter of 1999 during the Asian financial crisis.
“Economic
activity in Indonesia collapsed in the second quarter," research house
Capital Economics said in note after the figures were published. "A
failure to contain the virus effectively and inadequate policy support means
the recovery is likely to be one of the slowest in the region," it
added.
Last month,
Indonesia's central bank cut interest rates for the fourth time this year in
a bid to boost the struggling economy. The country has announced a stimulus
package worth more than 48 billion USD to help offset the impact of the
virus, which forced a large-scale shutdown that hammered growth.
Indonesia,
home to nearly 270 million people, has been easing movement restrictions in a
bid to head off economic collapse but COVID-19 infections are mounting, with
cases topping 115,000 with and more than 5,300 deaths./.
Binh Duong’s wood exports up
slightly in first half
Wood and
wooden product exports in the southern province of Binh Duong hit more than
1.7 billion USD in the first half of 2020, up 0.6 percent year-on-year and
accounting for 14.5 percent of the local total export value of 11.9 billion
USD.
Local
companies producing wooden products are expected to benefit from the
opportunities the EU-Vietnam Free Trade Agreement (EVFTA) offers and have targeted
growth in the remaining months of the year.
According to
the Binh Duong Furniture Association (BIFA), many companies had to limit
production because of the COVID-19 pandemic and have seen a decline in new
export orders.
BIFA
Chairman Dien Quang Hiep said Binh Duong is home to 1,600 furniture
enterprises, or 40 percent of those found nationwide.
Amid the
difficulties caused by the pandemic, local businesses are making every effort
to seek domestic raw material resources to replace imports, while promoting
sales via e-commerce platforms.
Hiep added
that nearly 50 percent of total export orders held by local businesses are
reported to have been placed through e-commerce platforms.
The
country’s exports of wood and wooden products in the first four months of
2020 were worth nearly 3.2 billion USD, a year-on-year increase of 6 percent,
according to the General Department of Customs.
Thanks to
its efficient pandemic control, Vietnam has become an attractive investment
destination for many wood processing companies, with turnover in billions of
dollars.
The country
expects wood processing exports to top 12.5 billion USD this year, up 10
percent against last year, according to the Vietnam Timber and Forest Product
Association (VIFORES)./.
ASEAN+3 countries discuss
financial cooperation
The ASEAN+3
Finance and Central Bank Deputies’ Meeting (AFCDM+3) was held via video
conferencing on August 5 under the chair of Vietnam and Japan.
This is an
important meeting in a series of ASEAN and ASEAN+3 financial cooperation events
chaired by Vietnam this year to prepare for the ASEAN+3 Finance Ministers’
and Central Bank Governors’ Meeting slated for September.
Deputy
Finance Ministers and Deputy Governors of the central banks of ASEAN member
states and China, the Republic of Korea, and Japan discussed the region’s
financial cooperation initiatives, such as the Chiang Mai Initiative
Multilateralisation (CMIM) and the Asian Bond Markets Initiative (ABMI), and
approved policies and plans for the mid-term operations of the ASEAN+3 Macroeconomic
Research Office (AMRO).
Participants
expressed their appreciation of the progress made in the continuous
completion of the CMIM to meet new requirements in the financial market and
to be in accordance with a coordination mechanism between CMIM and the
International Monetary Fund (IMF).
They spoke
highly of efforts made by AMRO to carry out macro-economic supervision and to
support member states in improving their policy-making capacity.
They also
hailed the achievements made by ABMI working groups in researching measures
to better the investment environment, developing new investment tools,
completing the legal framework, upgrading infrastructure for the bond market,
and carrying out technical assistance programmes to improve the bond markets
of member economies.
In the hope
of intensifying regional economic and financial stability, delegates
considered the pace of implementation of new initiatives within the framework
of the Strategic Directions of ASEAN+3 Finance Process.
During this
meeting, the Deputy Finance Ministers and Deputy Governors of central banks
had a special discussion session to share policy measures in response to the
impact of the COVID-19 pandemic and to update the situation in and assess the
macro-economic prospects of regional countries./.
Hai Duong longan to conquer
global tastes
Some 250
tonnes of longan from the northern province of Hai Duong are now ready to be
shipped to demanding markets such as Europe, Australia, and Singapore.
The
province’s Chi Linh city has 673 ha of longan trees, primarily in Hoang Tan,
Hoang Tien, Le Loi, and Hoang Hoa Tham wards and communes.
According to
Nguyen Van Ha, deputy head of the city’s economic bureau, agencies have
granted four longan growing area codes in the city, covering 43 ha, while
providing training on longan growing to local farmers.
Nguyen Van
Vien from Hoang Tien ward is one of 60 farmers in Chi Linh receiving a longan
growing area code for export to Australia.
Unlike
previous crops, longan grown this year by Vien and other farmers was observed
closely by agricultural scientists.
He harvested
3 tonnes from his 3 ha this year, with each kilo selling for 15,000 VND (0.65
USD) - double the market price.
Hai Duong is
home to 2,100 ha of longan, of which more than 50 ha meet international
standards. This year’s output is expected to reach 10,000 tonnes, with 250
tonnes standardised for export to fastidious markets.
In addition
to providing technical training, the provincial plant protection
sub-department has also worked to link exporters with farmers.
The Red
Dragon Service Trading Manufacture Co. has purchased between three and eight
tonnes of longan a day for export to Singapore, Australia, and Europe via
sea./.
Licensed housing projects
rise in Q2
The number
of licensed housing projects rose sharply in the second quarter,
the Ministry of Construction announced on August 4.
During the
period, there were 325 licensed projects with more than 70,300 apartments,
1,425 underway projects with over 246,000 apartments, and 73 others completed
with 8,901 apartments.
Hanoi was
home to eight lisenced projects while Ho Chi Minh City had four. Both cities
had no licensed projects in the first quarter.
The number
of tourism property projects also increased quarter-on-quarter,with 92
projects licensed, 91 under construction and 12 completed.
The progress
of construction was better than the previous quarter.
Successful
real estate transactions were equivalent to about 130-140 percent from those
in the first quarter.
There were
29,600 successful deals in the second quarter, including over 1,300
in Hanoi and 3,900 in Ho Chi Minh City, up 40.6 percent and 16
percent from the first quarter, respectively.
Despite
difficulties, the real estate market still sees development opportunities,
the ministry said./.
EVFTA expected to help boost
Vietnam-Czech trade ties
The Czech
Ministry of Industry and Trade’s website mpo.cz has recently published an
article titled “The Vietnamese market is opening up, a free trade agreement
can save millions of crowns for Czech companies.”
It said the
EU-Vietnam Free Trade Agreement (EVFTA) entered into force on August 1, after
eight years of negotiations, gradually eliminating up to 99 percent of all
mutual duties.
"This
opens up new opportunities for the Czech Republic in the rapidly growing
market of almost one hundred million in the attractive region of Southeast
Asia. In contrast to current protectionist trends, the agreement can be seen
as a positive signal towards open international trade based on rules,"
Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček was
quoted as saying.
"According
to preliminary estimates, 100 million Czech crowns, an even higher amount
will be saved by the removal of non-tariff barriers. The biggest
opportunities will open up for Czech companies in the automotive, engineering
and electrical engineering industries,” he added.
According to
Minister of State for EU and Foreign Trade Martin Tauberová, after the
experience of the pandemic, the agreement may also greatly help efforts to
diversify supply, which could in the future make it possible to better deal
with any similar global crises.
The newly
agreed framework has the potential to revive trade between the Czech Republic
and Vietnam, which is currently the Czech Republic's 25th largest trading
partner in the world.
Vietnam is
one of the fastest growing economies in the world, the article said, adding
that the country's economy has grown steadily by 6 to 7 percent a year over
the past decade.
In addition,
Vietnam has a young, active population, which gives its economy the potential
for further rapid prosperity.
Vietnam’s
economic situation does not seem to be dramatically affected by the COVID-19
pandemic. Vietnam has not resorted to a blanket curfew, but has targeted
measures at specific areas with the disease, keeping the economy going.
According to
the World Bank's forecasts, the local economy should grow by up to 4 percent
this year as well. In addition to favourable economic indicators, Czech
businesses can also benefit from human capital. Close historical ties between
the two countries gave rise to a significant Vietnamese minority in the Czech
Republic and a large group of Vietnamese who, thanks to studies in the former
Czechoslovakia, still speak Czech after returning to their home country.
The newly
agreed trade framework has the potential to develop trade relations between
the two countries, the article said.
The Czech
Ministry of Industry and Trade affirmed that it is ready to advise
entrepreneurs.
EVFTA will
also be one of the main topics of the next meeting of the MIT Expert Team on
Free Trade Agreements, which will be convened during the autumn. In the
following period, the evaluation of the real impacts of EVFTA on the Czech
Republic is also planned, according to the article./.
Vietnam Motor Show 2020
cancelled due to COVID-19
The Vietnam
Motor Show 2020, scheduled for October 29 – November 1, will be cancelled due
to the complicated developments of COVID-19, announced the Vietnam
Automobile Manufacturers’ Association (VAMA) and the
Vehicles Importers Vietnam Association (VIVA) on August 4.
The next
edition of the event is scheduled for October 2021 at the Saigon Exhibition
and Convention Centre (SECC).
VAMA and
VIVA will continue to choose the Asia Trade Fair and Business Promotion JSC
(ATFA) – Vinalink alliance as a co-organiser of the event./.
RoK fashion firms expected to
benefit from EVFTA: KITA
The Republic
of Korea’s fashion firms based in Vietnam are expected to benefit from the
free trade agreement between the Southeast Asian country and the European
Union (EVFTA), which came into effect this month.
Under the
agreement, clothes producers based in Vietnam can enjoy the benefit of the
latest free trade agreement for goods made with materials of the RoK, the
Korea International Trade Association (KITA) said in its report.
The RoK
implemented its own FTA with the EU in 2015.
Vietnam's
imports of the RoK’s materials to produce clothes reached 1.7 billion USD in
2019, accounting for 11.5 percent of the total.
KITA said
exports of the RoK’s materials to the Vietnam may also increase down the road
on the back of the EVFTA.
According to
the association, the EVFTA is expected to increase demand for Vietnamese
clothes in Europe as well.
Vietnam was
the third-largest export destination for the RoK - Asia's No. 4 economy - in
2019./.
PM: EVFTA like an expressway
bringing EU, Vietnam closer
Prime
Minister Nguyen Xuan Phuc chaired a video conference on August 6 regarding
the implementation of the EU-Vietnam Free Trade Agreement (EVFTA), during
which he described the deal as a broad and modern expressway bringing the EU
and Vietnam closer together.
He
emphasised that Vietnam has signed 13 free trade agreements (FTAs) but one of
the country’s greatest shortcomings is that local businesses have limited
awareness about these deals and have failed to take advantage of the
opportunities they present.
Many bodies
have been slow in preparing relevant legal documents, while overlaps in
enforcement guidance are hampering businesses, he noted.
He
highlighted the importance of communications on international economic
integration in general and FTAs in particular, as well as improvements in human
resources.
Noting that
the requirement on sustainable development is an important part of the EVFTA,
the PM said there are higher standards on increasing economic efficiency and
stricter requirements on social responsibility, labour, employment, and environmental
protection.
He also
recalled the technical assistance offered to Vietnam by President of the
European Commission Ursula von der Leyen during their phone call on July 29,
saying that this represents valuable support for the country.
The
Vietnamese Government has adopted a plan of action with five groups of
missions and 41 specific tasks for ministries, sectors, localities and the
business community, he said, requiring proactive implementation by all
concerned parties.
According to
a survey conducted by the Ministry of Planning and Investment, in normal
circumstances the agreement can help Vietnam’s GDP increase by 3.2 percent in
the first five years, by 5.3 percent in the next five years, and by up to
7.72 percent in the subsequent five-year period.
With the
EU’s commitment to remove nearly 100 percent of import tariffs, the EVFTA is
expected to help Vietnam’s export turnover to the bloc rise 42 percent by
2025 and nearly 45 percent by 2030.
The
agreement was signed by both sides on June 30, 2019, and officially came into
effect on August 1, 2020./.
State Bank of Vietnam cuts
some interest rates
The State
Bank of Vietnam (SBV) on August 6 announced its decision on cutting some
policy rates with immediate effect, the second time this year following the
adjustment on March 16.
Accordingly,
the interest rate of compulsory reserves in VND at banks will be 0.5 percent
per annum, and the interest rate on dong deposits from banks that exceed the
minimum 3 percent requirement will be zero percent per annum, down 0.5
percent compared to the rates stipulated in a decision on March 16 this year.
Meanwhile,
the interest rate for deposits in VND by the Vietnam Development Bank (VDB)
and Vietnam Bank for Social Policies (VBSP), both state-owned banks; People's
Credit Funds and microfinance institutions will be reduced by 0.2 percent to
0.8 percent per annum.
The interest
rate for deposits of the State Treasury, and the Deposit Insurance of Vietnam
with the SBV is revised down to 0.8 percent per annum, down 0.2 percent.
The SBV said
the adjustment was made based on macro-economic developments and the level of
interest rates in the market./.
CPTPP countries discuss
post-pandemic recovery plan
Economic and
trade ministers of signatories to the Comprehensive and Progressive Agreement
for Trans-Pacific Partnership (CPTPP) met online on August 5 to discuss how
best to intensify cooperation and prepare a plan of action to boost
post-pandemic economic recovery.
The third
meeting of the CPTPP Commission was held via video conference under the chair
of Mexico’s Economy Secretary Graciela Márquez Colín and reported on issues
relating to the implementation of the agreement.
The
ministers issued a joint statement supporting trade liberalisation as a
driving force for economic growth, especially in face of the COVID-19
pandemic. The statement also highlights the importance of maintaining a
strong, rules-based multilateral trading system so as to ensure sustainable
development.
Participants
also agreed on the establishment of an office in charge of developing the
digital economy, while calling on Brunei, Malaysia, Peru, and Chile to soon
ratify the agreement so it may be implemented fully.
The CPTPP
comprises Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New
Zealand, Peru, Singapore, and Vietnam. Together they have a combined economy
of 13.5 trillion USD./.
VNN
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Thứ Sáu, 7 tháng 8, 2020
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