VIETNAM BUSINESS NEWS JULY 10
15:36
Pork imports surge during first half of 2021
 Pork
items were mainly imported from markets such as Russia, the United States,
India, the Netherlands, and Poland, with Russia making up the largest
supplier. Throughout
the Jan-May period Vietnam imported 45,700 tonnes of meat and meat products
worth US$97.4 million from Russia, up 437.5% in value year on year. The first
half of the year saw Vietnamese livestock exports increase by 9.2% to US$196
million, of which the export of milk and dairy products rose by 35% to reach
US$60 million, whilst the export of meat and meat products soared by 30.8% to
US$54.6 million. Nguyen Van
Trong, deputy director of the Department of Livestock
Production under the MARD, said due to the impact of the African
swine fever, the amount of pork imported from abroad to Vietnam has recorded
a sharp increase since 2019. Trong also
noted that the increase in pork imports should not be considered a matter of
concern as the import volume merely makes up 4% of the country’s total meat
imports. Indeed, due to a sharp decline in pork consumption, the amount of
meat imported this year is anticipated not to be equal to last year’s
figures. Furthermore,
the price of imported pork remains relatively cheap, fluctuating at around
VND50,000 per kilo, thereby resulting in the price of live hog plummeting.
However, consumers are forced to purchase fresh pork at high prices, ranging
between VND120,000 and VND130,000 per kilo at markets, Trong said. This
situation can largely be attributed to the emergence of many intermediary
stages in the process of distributing pork to local markets. Pham Cong
Thieu, director of the National Institute of Animal Sciences, said it is
necessary to limit pork imports in the future to promote the domestic
husbandry industry. Gov’t renews criteria for classification of SOEs Deputy Prime
Minister Le Minh Khai has recently signed Decision No. 22/2021-QD-TTg on the
criteria for classifying the wholly State-owned enterprises, partially
State-owned enterprises undergoing restructuring in 2021-2025. Uder the
decision, the State shall hold 100% of charter capital in SOEs operating in
13 fields and sectors including mapping services for national defense
and security, manufacture and sale of industrial explosives, electricity
transmission, national electricity system dispatching, management of
electrical grids, construction and operation of major power plants, and
national defense and security, lottery business, printing and
manufacture of notes and gold bullion and golden souvenir, credits in
service of socio-economic development, deposit insurance, bad debt settlement
associated with restructuring the system of credit institutions among others. The State
shall hold 65 percent of charter capital in SOEs undergoing privatization and
restructuring and operating in seven fields and sectors, including
management and operation of airports and airfields, large-scale mining
exploitation, finance, banking (excluding insurance, securities, fund
management companies, finance companies and financial leasing
companies). The State
shall hold between 55 percent and 65 percent of charter capital in SOEs
undergoing privatization and restructuring and operating in seven fields and
sectors namely exploitation, production, and supply of clean water and
drainage in urban and rural areas, manufacture of basic chemicals, air
transportation and others. The decision
shall take force from August 19, 2021, replacing Decision No. 58/2016/QD-TTg
dated December 28, 2016 of the Prime Minister on criteria for classification
of SOEs. Binh Thuan develops plan to consume 440,000 tons of dragon fruit Authorities
in the South -Central Province Binh Thuan have been developing a plan to help
farmers to consume 440,000 tons of dragon fruit as the coronavirus epidemic
has hit the fruit export. The new
coronavirus has put a dent in Vietnam's exports as the outbreak forced
authorities to temporarily close border crossings, disrupting the crossborder
trade of fruits and vegetables whereas from now until the end of 2021,
farmers in Binh Thuan Province will harvest about 440 thousand tons of dragon
fruit. The People's
Committee of Binh Thuan province has just built a plan to connect farmers and
enterprises for the promotion of agricultural products consumption,
especially dragon fruit. According to
statistics, Binh Thuan province, which is the country’s largest dragon fruit
producer with over 33,700 hectares, yields 700, tons. Accordingly, the plan
built by the provincial People’s Committee aims to sell all dragon fruit at
reasonable prices. All related
competent agencies were asked to focus on boosting consumption of dragon
fruit in the country and exports via official and unofficial channels. Simultaneously,
the People’s Committee asked enterprises to join hands in helping farmers to
sell the fruit by processing the fruit and preserving it. In addition
to dragon fruit, the province has developed a plan to sell other agricultural
products and fish such as rubber, shrimp, and other aquatic products. Cement, tiles and glass production see massive surplus Cement, tile
and construction glass are seeing excess supply over demand, according to the
Ministry of Construction. Thanks to
high investment in the three industries, the combined total output has
already nearly reached their output target for 2025. In 2020
cement manufacturers in Vietnam produced over 104 million tonnes of cement,
but only 62 million tonnes were sold in the domestic market, and 38 million
tonnes were exported. According to
the Vietnam Cement Association, domestic demand is slowing down, leading to
fierce competition between suppliers in the country. Exports of
cement and clinker in the first five months of the year rose by 50 percent
year-on-year. This is because the country had expanded its cement exports in
developing countries, said Luong Duc Đức Long, vice president cum general
secretary of the association. However, he
said that export of cement to these markets was unsustainable because these
countries were also focusing on developing their domestic cement industries. The
construction glass industry is also seeing higher supply than demand, with an
excess output of 80 million square metres in 2020. Several manufacturers have
had to close down some of their production lines. Meanwhile,
tile manufacturers in Vietnam produced 560 million square metres worth of
tiles in 2020, but only 465 million square metres of them were sold. Domestic
tiles also have to compete with imported tiles that are not certified or
closely monitored for quality and pricing, according to the Vietnam Building
Ceramic Association. Chinese tile
products, which account for up to 25 percent of Vietnam’s market, are sold
very cheaply. According to
construction material manufacturer CMC Joint Stock Company, which recorded a
14 percent drop in revenue in 2020, excess supply over demand contributed to
harsh competition last year, with businesses making large price cuts just to
get rid of their stock. Nguyen Van
Sinh, deputy minister of construction, said that proposed investment projects
in these three industries should be reconsidered, and localities should seek
opinions from state authorities to avoid excessive investment and waste of
manpower. He said that
investment in cement production in large cities and areas in need of
environmental protection should be limited./. Vietnam Airlines, Viettel team up to offer in-flight internet
service The Viettel
Military Industry and Telecoms Group will provide internet connectivity to
aircraft operated by Vietnam Airlines using an air to ground (ATG) network as
part of their freshly signed strategic cooperation deal for 2021 – 2025. Under the
pact, Viettel will support the national flag carrier in digital
transformation, including the offering of systems for business management,
infrastructure services and IT. Another system for customers’ self check-in
will also be built. Vietnam
Airlines will continue to provide products and services for Viettel under a
preferential trade policy as well as coordinate with the telecom services
provider to build a service ecosystem for customers of both sides. Viettel has
become a priority partner of Vietnam Airlines in freight transport to promote
the development of a logistics and e-commerce center. The two will study a
plan to establish a joint venture company to consolidate and expand
cooperation in the future, contributing to boosting the national
socio-economic development. Acting
Chairman and General Director of Viettel Major General Le Dang Dung said the
cooperation will not only generate new experiences to passengers but also
bolster the growth of both businesses in contribution to realising the
nation’s digital transformation goals. Vietnam
Airlines and Viettel have cooperated since 2013 for the development and
diversification of products and services as well as the enhancement of
business performance to strengthen their leading positions in the fields of
aviation and technology./. Dong Thap launches agricultural products website The southern
province of Dong Thap launched a website to sell the provincial agricultural
products and specialties at htxdacsandongthap.com on July 7. Ngo Chi
Cong, a representative of the Dong Thap Specialty Cooperative, said the
website currently offers more than 220 agricultural products and local
specialties from 50 small and medium enterprises (SMEs) and cooperatives. He said
e-commerce channels would help the SMEs, cooperatives and production
facilities sell their products in the context of COVID-19, adding it is also
time for them to participate in the digital transformation process. Earlier, the
cooperative partnered with websites, social networks and e-commerce platforms
to advertise on Google to increase the sales performance of businesses. In the
future, the province may expand cross-border sales in Southeast Asian
countries, said Cong. Huynh Lam
Ho, co-founder and CEO of the Haravan Technology Company, which works with
the province's businesses in implementing e-commerce and omnichannel retail
solutions for 2021-2025, said for businesses to implement digital
transformation in multi-channel sales and commerce effectively, besides the
technology and training, equipping local businesses and their staff with
digital and e-commerce knowledge is key. According to
the agreement between the Dong Thap Department of Industry and Trade and
Haravan, firms in the province will be supported in digital transformation
and e-commerce./. Vietnamese and Indian enterprises look for business
opportunities The
strengthening of trade exchange between Vietnam and India not only by the
traditional method but also in the online format has contributed to promoting
the comprehensive strategic partnership between the two countries, said Hoang
Minh Chien, deputy head of the Vietnam Trade Promotion Agency (VIETTRADE)
under the Ministry of Industry and Trade. He made the
statement at the Vietnam - India trade exchange conference which
was held virtually by VIETTRADE and the Vietnamese Embassy
in India on July 9. According to
Chien, in the context of the COVID-19 pandemic, the agency has promoted
the organisation of a number of online trade promotion programmes with India
and has always received the effective coordination and support of Indian
trade promotion organisations including Indian Importers Chambers of Commerce
and Industries, the Gujarat Chamber of Commerce & Industry, the
Vietnamese Embassy in India, the partners and businesses of the two
countries. Do Thanh
Hai, Counselor at the Vietnamese Embassy in India, said that textiles and
garment, pharmaceuticals, supporting industries, renewable energy sector, and
agricultural products are the driving force for trade relations, and many
other industries have great potential. However, to
turn the potential into reality, it was necessary for relevant authorities
and the business community to involve in, he said, adding that online trade
exchange events are an important channel for enterprises of the two countries
to seek find business opportunities. Hiren Gandi,
Chairman of the Food Committee of Gujarat Chamber of Commerce & Industry,
recommended that Vietnamese enterprises should use legal commercial contracts
when exporting to India to avoid disputes and protect themselves from fraud,
false commitments and overcome business risks. The right
legal contracts can help prevent businesses from up to 80 percent of
commercial disputes, he said. Gandi
emphasised that Vietnamese enterprises should not use brokers or agents
because they have no legal value. He also
advised them to check the financial capacity of the buyers and raised the
issue of the right to handle logistics-related issues in commercial
contracts. At the
conference, Atul Kumar. President of the Indian Importers Chamber of
Commerce and Industry, Srinivasa Murthy, Honorary Consul of Vietnam
in Karnataka, India, and Bui Trung Thuong, Counselor at the Vietnam Trade
Affairs Office in India, also introduced business opportunities for
Vietnamese businesses in the Indian market as well as sharing experiences for
successful business cooperation with Vietnamese enterprises to Indian
counterparts. Experts said
Vietnamese businesses have many opportunities to export to India. At the same
time, Vietnam is also a potential market for Indian investors to do business
in the fields of agricultural products, food, automobiles and energy. Virtual
exchanges were also be held during the conference to support businesses in
introducing their products and learned about the partner’s demand, thereby
looking for business cooperation opportunities./. Kien Giang: goods exports up 11 percent The export
turnover of the southern province of Kien Giang reached over 380 million
USD in the first half of this year, meeting 50.7 percent of the year’s target
and up 11 percent compared to the same period in 2020. According to
provincial Department of Industry and Trade, the locality's main exports
included rice (133.36 million USD), vegetables (11.72 million USD),
seafood (112.6 million USD), and leather and footwear (72.86 million
USD). Kien Giang's
products are exported to 43 countries and territories, with major markets
being Ghana, the Republic of Korea, Japan, Hong Kong (China), Belgium, the
Philippines, China and Thailand. As
the COVID-19 pandemic is developing complicatedly, the province has
synchronously carried out various measures to realise the dual targets set by
the government. Among those are keeping a close watch on businesses'
activities to promptly remove obstacles facing them and supporting them in
expanding markets and increasing exports. Kien Giang
aims to earn 750 million USD from exports this year./. Vietnamese Edtech startup receives 2 mln USD from Alibaba-backed
capital fund Educa
Corporation, a Vietnamese educational technology (Edtech) startup, has raised
2 million USD in a Series A funding round from Singapore-based ReDefine
Capital Fund. Founded in
2018, Educa Corporation uses technology to tackle challenges in learning
English for Vietnamese students. Its flagship offering is Edupia, an English
learning app targeted primary school students. Three years
after the debut, Educa now has half a million paid users. With the new
funding, the corporation plans to heavily invest in infrastructure
development and R&D with an aim of achieving two million paid users, out
of 20 million Vietnamese students, by 2025. It also
wants to reach out to new markets in Southeast Asia. The company
has been developing a number of new products targeting new customer segments,
including Educa Tutor and Babilala – an English self-learning app for kids
aged 3 – 8. ReDefine
Capital Fund is backed by Alibaba and Ant Financial with hundreds of millions
of USD. Last year, it invested 50 million USD in Seedcom, which operates
coffee chain The Coffee House and women’s accessories chain Juno./. Vietnam Airlines pilots digital health passport The national
flag carrier Vietnam Airlines hopes that if the trial of "Digital health
passport" is implemented successfully, the Government will consider and
recognize this solution, towards promoting resumption of international
routes. The pilot
launch of digital health passport by Vietnam Airlines is a part of the
cooperation agreement signed by the national flag carrier and the
International Air Transport Association (IATA) in May. To be
eligible to participate in the programme, passengers must be over 18 years
old and have a certificate of negative COVID-19 test results issued by
testing facilities registered with IATA. Those who
want to participate in the programme should register on Vietnam Airlines’
website at least three days before their planned departure, download the IATA
Travel Pass app to their mobile phones, create a digital ID comprising their
photo and passport information and fill in flight details to receive
information on entry requirements at the destination. Before
departure, passengers will be required to get tested at eligible clinics
based on the IATA registry, then share the test results digitally and confirm
flight status with the airline ahead of arriving at the airport. This
application is still in the development and testing stages, so passengers
will still have to show hard copies of the COVID-19 test results at the
request of authorities in the destination country. To make it
easier for passengers to use the application, Vietnam Airlines provides
instructions with illustrations on its website at
https://www.vietnamairlines.com/vn/en/plan-book /experience/iata-travel-pass. The IATA
Travel Pass is being piloted by many airlines around the world thanks to its
feature of ensuring consistent information between parties including
governments, testing facilities, airlines and passengers. The
electronic health passport has officially come into effect for EU member
states from July 1, 2021, gradually opening the door for free travel within
the Union and to international passengers./. Anti-dumping tax levied on sorbitol products from China, India,
Indonesia The Ministry
of Industry and Trade (MoIT) has decided to impose an anti-dumping tax
ranging between 39.63-68.5 percent on sorbitol imports from China, India and
Indonesia. The MoIT
started the anti-dumping investigation in December 2020 based on the
assessment results of dossiers submitted by the domestic industry in
September 2020, requesting for the imposition of anti-dumping measures
against these products. During the
seven months of preliminary investigation, the MoIT has coordinated with
relevant agencies to carefully evaluate the allegations, including dumping
acts by exporters of China, India and Indonesia and damage to
the Sorbitol production industry of Vietnam. The
investigation results indicated that the volume of dumped
sorbitol imports increased in the period from April 1, 2017 to March 31,
2020, causing pressure on the operation of the domestic manufacturing
industry. It was reflected in such criteria as output, capacity utilisation,
inventory, market share, domestic sales and revenue, profit and ability to
raise capital. During the
investigation period, these indexes showed a downward trend compared to the
previous time. In the
coming time, in order to come to a final conclusion on the case, the ministry
will continue to work with relevant parties to collect information to assess
the comprehensive impact of the case on related parties, including end
consumers. The investigation is expected to be finished in the third quarter
of 2021. Sorbitol,
also known as glucitol, is generated from refined glucose under high
temperature and pressure, hydrogenated with nickel, which is often used in
medicine production, food and cosmetic industry./. Remittance to HCM rise despite COVID-19 pandemic Oversea
remittances to Ho Chi Minh City were worth 3.2 billion USD in the first six
months of this year, despite the COVID-19 pandemic roiling on many economies
around the world. Nguyen Hoang
Minh, deputy director of the State Bank of Vietnam’s HCM City branch, said
the figure represented a 22.34 percent increase year-on-year. This was a
positive growth at a time when the COVID-19 pandemic has seriously affected
the global economy, he said, adding that the remittances were mostly poured
into production and business activities. The money
flow has not only supported the city’s economic development but also
contributed to stabilising the supply of foreign currency in the city and
Vietnam in general, Minh said. It is
forecast that remittances to HCM City will reach 6.5 billion USD this year,
up 6.5 percent compared to last year’s figure which stood at 6.1 billion USD. Vietnamese
abroad sent home 17.2 billion USD worth of remittances in 2020, making the
country the third-largest remittance recipient in East Asia and Pacific
region, according to the Migration and Development Brief released earlier in
May by the World Bank and the Global Knowledge Partnership on Migration and
Development (KNOMAD). This
represents a rise of nearly 3 percent over 2019, a very positive result
compared to the previous forecast in the context of the COVID-19 pandemic. Vietnam came
after China in remittances last year which received 59.5 billion USD, while
the Philippines raked in 34.9 billion USD. With
remittances equivalent to 5 percent of the country’s gross domestic product
(GDP), Vietnam was among the top 10 countries in the region by the share of
GDP./. Top 10 prestigious insurance companies in Vietnam in 2021
announced Meanwhile,
firms like Bao Viet Insurance Corporation, PVI Insurance, Post and
Telecommunication Joint Stock Insurance Corporation, Petrolimex
Insurance Corporation, and Military Insurance Corporation were
named on the top 10 non-life insurance firms. Commenting
on the Vietnamese insurance market in the current period amid impacts of the
COVID-19 pandemic, Vietnam Report General Director Vu Dang Vinh said that
despite the downturn in the world insurance market, the domestic insurance
sector has seen impressive growth. Last year,
insurance companies paid over VND48.2 trillion (US$2.09 billion) of
benefits to customers, up 11.4% over 2019, he noted. In 2021,
more than 50% of insurance firms made decisions relating to digital
transformation, customer managing and approaching, and insurance product
development, he added. Businesses encouraged to export organic farm products to North
Europe Local
businesses have been advised to develop organic food in an effort to boost
fruit and vegetable exports to Nordic countries, according to the Vietnamese
Trade Office in Sweden. Due to
having a cold climate throughout the year, Nordic countries are forced to
import fruit and vegetables from other nations, a factor which has created an
array of opportunities for Vietnamese fruit and vegetable exporters to gain a
foothold in these countries. Most
notably, the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) in
August, 2020 brought about a range of advantages for domestic firms as import
duties levied on fresh fruit and vegetables are slashed to 0%. Nordic
consumers have a habit of purchasing safe and organic products, with the
consumption of organic food in this market anticipated to enjoy a three-fold
increase by 2030. Nguyen Thi
Hoang Thuy, Vietnamese Trade Counselor in Sweden, points to the fact that
demand for prepackaged convenience products continues to grow and become more
popular in these countries. Furthermore,
she says Nordic consumers are also interested in tropical fruit and
vegetables, such as bananas, melons, pineapples, sweet peppers, and lemons,
which have a high demand for import all year round. These
factors are anticipated to create a range of opportunities for local
businesses to boost their export of fruit and vegetables to these countries
in the near future, notes Thuy. According to
the Vietnamese Trade Office in Sweden, new suppliers of fruit and vegetables
from Vietnam are expected to find it difficult to penetrate the Nordic market
due to fierce competition between multinational corporations and logistics
companies. Moreover,
consumers in this market tend to prefer vegetables grown in the European
region due to the low cost of transportation and lower prices in general. Other
factors include geographic distance and a lack of direct flights to North
Europe making it difficult for local businesses to export fresh fruit and
vegetables to this market. Thuy
therefore advises domestic firms to develop niche markets, push the export of
organic products, comply with stringent regulations set by importers, and
develop brands as a means of enhancing the consumer experience. Digital transformation backs retail growth in H1 Revenue from
retail trades and services increased 4.9 per cent to over VND2.46 quadrillion
(US$107 billion) in the first half of this year, according to the General
Statistic Office (GSO). Retail sales
surpassed VND1.98 quadrillion, accounting for 80 per cent of the total retail
sales of consumer goods and services, up 6.2 per cent year-on-year, the GSO
said. These
encouraging figures were mainly attributed to businesses and firms that
quickly adapted to the “new normal” as a result of the COVID pandemic. Actively
applying technological solutions in trading and payments along with
undergoing digital transformations has been an important part of promoting
growth in the retail sector and maintaining stability for the business
community, according to Vice chairman of the Viet Nam Chamber of Commerce and
Industry, Hoang Quang Phong . Phong said
the rapid changes in technology have enabled retail companies to optimise
their resources and place consumers at the centre of their businesses. This
has helped them to survive, to stabilise their operations, and to thrive
throughout the COVID-19 pandemic. The Internet
of Things (IoT), Big Data, AI and Machine Learning have allowed businesses to
provide customer service in unique and exciting ways They have helped to
optimise management strategies as well as supply chains maximising revenues. Do Khac
Cuong, Sales Director of Corporate Banking and Partner Channel Manager, at
Microsoft Vietnam, says that the data points to incorporating the customer
experience into an organisations digital transformation is key. In a survey
of 800 business executives, conducted by The Economist and Microsoft,
respondents in the retail industry said that improving the customer experience
was the top factor driving their digital transformation. The survey
also showed that retailers that deploy online shopping channels and have a
deep understanding of their customers managed to better survive the impact of
the pandemic. On the other
hand sales of accommodation and catering services reached VND224 trillion
from January to June, down 3 per cent year-on-year. They made up 9.1 per cent
of the total revenue. Tourism
revenue also experienced a decline of 52 per cent to VND4.5 trillion. Viet Nam has
yet to reopen the borders for international visitors and at the same time,
some localities have implemented social distancing, discouraging domestic
tourism. Meanwhile,
revenue from other services reached VND2.49 trillion, marking a jump of 4.4
per cent. Previously,
trade economists forecast that Viet Nam's retail market would likely rebound
strongly predicting 11 per cent revenue growth in 2021, outperforming any
other Southeast Asian country. Small flats still on the agenda for new builds but concerns
remain The Ministry
of Construction will continue to limit the floor-area of new apartments to no
less than 25sq.m, according to a new circular on technical regulations for
apartment buildings. The
regulations are a part of the ministry's Circular No 03/2021/TT-BXD on
national technical regulations on apartment buildings (QCVN 04:2021/BXD) that
took effect from July 5, 2021 and replaced the Circular No 21/2019/TT-BXD. In both the
new and old circulars, the ministry has stipulated that the minimum usable
area of an apartment
in housing projects is not less than 25sq.m. In addition,
for commercial housing projects, the proportion of apartments with an area of
less than
45sq.m should not exceed 25 per cent of the total number of apartments in the
project. Le Hoang
Chau, chairman of the HCM City Real Estate Association (HoREA), said that
small-scale apartments in any high-end, mid-end or affordable housing project
have the lowest total cost compared to other apartment sizes. The price of
a high-end housing project is about VND45 million per sq.m, so the price of a
small apartment with an area of about 30sq.m in this project is only VND1.35 billion.
Young people just starting work can afford these, Chau said. Meanwhile,
affordable apartments with a price of VND25 million per sq.m have a value of
VND750 million. That is a very affordable price, meeting the needs of many
people, he said. Doan Chi
Thanh, general director of Hoang Anh Saigon Company, says this is good news
for business. In a housing
project, small apartments are often purchased due to their lower purchase
price compared to large-area apartments. However,
there is not a big enough supply of small apartments to meet demand due to
the limited number of small apartments in new development projects. This pushes
up the per square meter price of this market segment roughly 5-10 per cent
more than of large-area apartments. Many projects, as a result, have
small-area apartments with a price of VND40-50 million per sq.m. Many experts
believe that a 25-sq.m apartment is not the answer to the problem of a lack
of housing for low-income people in urban areas. The price
for this kind of apartment is still far beyond the reach of many people. Architect
Ngo Viet Nam Son said many countries have regulations on small apartments
with the minimum being a 21sq.m flat in China, 24sq.m flat in the
Philippines, and 27sq.m flat in the UK. Small
apartments have a bedroom, living room, kitchen and one toilet. These
apartments are built for just one person. That said,
these countries also have very specific regulations for this type of
apartment, including the criterion that only one person can live there, Son
said. Meanwhile,
Viet Nam has regulations that allow the construction of a 25-sq.m apartment,
but does not yet have specific regulations on limiting the number of people
living in that apartment. Small
apartments can accommodate one or two person(s) and even a family of three.
This puts pressure on social infrastructure and transport, he said. Do Thu Hang,
director of Research, at Savills Vietnam said depending on the scale of the
project, small apartments will create pressure in terms of overall operation.
This includes demand for electricity, water, waste treatment, fire prevention
or the need to use common utilities. The 25-sq.m
"micro" apartment also poses a challenge in terms of managing the
number of people living in the apartments, with security and public safety. The planning
approval by the competent state agency must also have important criteria,
Chau said. Including land use, construction density, the number of floors and
especially the population of the project. Chau also
notes that the management and operation of the apartment management board
also plays a direct role, contributing to limiting negative impacts on
infrastructure. Ministry to create favourable conditions for agricultural firms
to promote exports The Ministry
of Agriculture and Rural Development said it would create favourable
conditions for firms to promote exports of agricultural products by reducing
the number of product categories subject to quarantine inspection as well as
applying technology to speed up the customs clearance process. Deputy
Minister Nguyen Hoang Hiep said there were still problems in the
certification of quarantine inspections of plants and agricultural products
for export and import, even though the number of harmonised system (HS) codes
which were subject to checks was reduced to 157 from 300. Further
efforts would be made to reduce the number of HS codes of plant and
agricultural products subjected to quarantine checks, Hiep said, adding that
the time for inspections to be carried out must also be cut by using advanced
technology to aid businesses. In
international practice, fresh products are subject to quarantine inspection
while processed products are subject to food safety checks. Currently,
international practices are applied for plant products while animal products
still have to undergo quarantine inspection for both fresh and processed
products. Hiep said
the ministry asked the Department of Animal Health to review the process for
the application of international practices to ensure that products are safe
and enterprises have the best environment to operate in. Nguyen Hoai
Nam, Deputy General Secretary of the Viet Nam Seafood Exporters and
Producers, said seafood companies wished to receive support from the
Government to remove the European Commission’s 'yellow card' as soon as
possible. According to
Nguyen Thanh Son, President of the Animal Husbandry Association of Viet Nam,
many instructions to implement the Law on Husbandry, which took effect from
the beginning of 2020, must be clarified. Son said several standards were not
appropriate to reality, which wasted time and increased costs for
enterprises. Tran Quang
Trung, President of the Viet Nam Dairy Association, urged the ministry to
consider removing the regulation on quarantine checks on imported processed
dairy products. Vu Thi Mai
Hien, Deputy Director of the ministry’s Legal Department, said some
regulations about certification for enterprises were being reviewed. According to
Hiep, the ministry would also enhance the administrative reforms and improve
the attitude of civil servants to create favourable conditions for
enterprises. Micro-entrepreneurs learn digital skills to survive amid COVID In the
northern and north-central parts of the country, Go Digital ASEAN has helped
thousands of micro-entrepreneurs improve their capacity to use digital
applications to market their products online and access business information
and networks to better manage and expand their businesses amid the COVID-19
pandemic. Vu Thi Anh
Tho, who runs a watch shop in Nam Dinh City, told Viet Nam News: “Before
COVID-19, I had a steady stream of direct customers. Once the pandemic began
and social distancing set in, I lost a significant number of customers. My
family’s income reduced accordingly. “I have
learnt many things, thanks to the training programme, but my greatest gain
has been increasing the sales of my products through e-commerce, which I had
never thought of before. “A
particular lesson on e-commerce channels left a strong impression on me as it
provided me with business ideas on using various digital channels to promote
my products and boost my income during COVID-19. “I have
begun using sites like Lazada and Shopee to sell my products. I have
attracted a significant number of customers through them, and I now also know
how to facilitate secure internet banking transactions. “I would
like to expand my online sales through more digital channels like Zalo and
Tiki, and also onboard more products on my platform to better appeal to and
serve customers.” Speaking
to Viet Nam News, another trainee in the programme, Nguyen Thi Chuan,
who farms, processes and sells fish in Dien Chau District, Nghe An Province,
said earlier she used to sell her products only in her commune or nearby
areas. “Through the
training programme, I learnt how to make videos to advertise my products on
Facebook and Zalo. So customers in many northern and southern provinces and
cities, including Ha Noi and HCM City, know about my products and place
orders. My family’s income has increased accordingly. “The
training programme was very useful and helped me understand digital
technology to interact better with customers, know their feedback, get market
information, and expand my market.” Vu Thi Binh
of Bac Giang City said: “My family has an agency selling rice noodles and
rice pancakes. Most of my customers already have access to digital
technology. Now I must also gradually get used to it. “After the
training we learnt methods and ways to advertise products, and post or write
reasonable content to promote products. At first it was confusing, but once
we got used to it, it became very easy. “Thanks to
the posts and product descriptions on the internet, my customers have
contacted me and placed orders. I am very excited.” They are
among nearly 65,000 entrepreneurs and underemployed youths in Viet Nam who
have benefited from the Go Digital ASEAN project. Approved by
the ASEAN Coordinating Committee on Micro, Small, and Medium Enterprises and
implemented by The Asia Foundation with support from Google’s philanthropic
arm, Google.org, the project is designed to equip micro and small enterprises
and underemployed youth with crucial digital skills and tools, especially in
rural and isolated areas, expand economic opportunity across ASEAN member
states and mitigate the negative impacts of COVID-19. Micro, small
and medium enterprises account for 99 per cent of all businesses in the
region and employ more than 80 per cent of the workforce, but a majority of
small business owners, and underemployed youth, in rural areas use their
smartphones for communication and entertainment rather than for business. Launched a
year ago, the project aims to train up to 200,000 individuals across the
region, 60 per cent of them women, broadening participation in the digital
economy and creating a more inclusive ASEAN region. Filip
Graovac, Vietnam deputy country representative at The Asia Foundation, said:
“With support from our partners [Tinh Thuong One-member Limited Liability
Microfinance Institution and Vietnet Information Technology and Communication
Centre], the programme has been very successful in Viet Nam and as of June
2021 we have trained 65,000 entrepreneurs and underemployed youth, 80 per
cent of which are women, in the northern and north-central parts … in digital
skills like online job search, basic social media marketing and online safety
and security.” Marija
Ralic, APAC lead, Google.org, said: “COVID-19 has certainly impacted millions
of people directly and billions more through the impact on the regional
economy. Reports have shown that over 81 million people have lost their jobs
here in APAC, with another 25 million seeing their incomes shrink to poverty
levels, and the numbers continue to rise. “With
continued economic challenges, rising unemployment, and a demand for new
skills, we recognise technology can help people find work, keep businesses
going and learn new skills. As the pandemic wore on, so has our strategy. We
quickly pivoted our efforts to focus on economic relief and recovery by
focusing our efforts on supporting digital training and upskilling programmes
that will benefit impacted businesses by the pandemic. “Just like
the Go Digital ASEAN programme, collaboration and support of non-profits, the
public sector and government agencies are critical to combat the pandemic.” Graovac
said: “While technology has empowered hundreds of millions of people across
Southeast Asia, many more are struggling to survive, and are urgently looking
for ways to adapt their business to reach new markets. Mastering the new
digital landscape has become increasingly important to the future of Viet
Nam’s digital economy.” The Asia
Foundation and its partners would continue to run the programme and train
another 16,650 people this year, he said. “We are
aware that the demand for digital skills, especially during the COVID-19
crisis, is extremely high.” HCM City logistics companies unhappy with COVID isolation of
ports Logistics
firms are worried transport of cargo to and from the Vietnam International
Container Terminals will be disrupted by the lockdown of HCM City’s District
7 where it is situated. Tan Thuan
Dong Ward and a part of Tan Thuan Tay Ward and Binh Thuan Ward in the
district have been locked down since 6pm on July 8. A major
logistics firm said paperwork and other procedures related to COVID-19
testing for container truck drivers to enter the port are inconsistent. Besides,
ships cannot dock for loading and unloading, goods owners cannot enter the
port for customs procedures and there is a shortage of workers for loading
and unloading due to travel restrictions. Saigon Port
Joint stock Company, which operates Tan Thuan Port, Tan Thuan Dong Port, Ben
Nghe Port One-Member Limited Company, and Vietnam International Container
Terminals (VICT) have called on the city and District 7 administrations and
other relevant departments and agencies to find a solution. They want
the authorities to allow them to proactively implement measures such as
issuing letters to workers confirming they are working at the port so that
they can pass through the District 7 health quarantine and control stations,
customers to submit a work order to the stations to visit ports and drivers
of container trucks to make a medical declaration to pass. Truong
Nguyen Linh, deputy general director of the First Logistics Development Joint
Venture Company, which owns and operates VICT, said there is an ongoing
problem related to employees and drivers furnishing a negative COVID-19 test
certificate since it is expensive. Speaking to
Tuoi Tre Online, a spokesperson for the Vietnam Logistics Business
Association (VLA), said not only VICT but also Tan Thuan Dong and Saigon Port
are facing difficulties, and isolating seaports like residential areas is
unreasonable since it would greatly affect supply chains. VLA has
written to the departments of Transport, and Industry and Trade to resolve
the difficulties faced by ports and logistics companies. Viet Nam’s economy to surpass Singapore's by 2030: DBS Bank Viet Nam’s
economy is expected to grow by between 6-6.5 per cent over the next decade.
If it does, it will surpass Singapore by 2030, DBS Bank experts have said. Last year,
Viet Nam’s economy was worth US$343 billion while Singapore’s was $337.5
billion, and Malaysia’s hit $336.3 billion. This ranks Viet Nam the 40th
largest economy globally and fourth in the Association of Southeast Asian
Nations (ASEAN). In their
latest forecast, the International Monetary Fund (IMF) and the Asian
Development Bank (ADB) said Viet Nam was on track to outpace both Malaysia
and Singapore this year. Despite two
waves of COVID-19 in the first half of this year heavily impacting industrial
hubs, Viet Nam’s still posted gross domestic product (GDP) growth of 5.64 per
cent. Its export revenue rose 28.4 per cent compared to the same period last
year. Although GDP
expanded slower than expected, it was still much higher than the 1.82 per
cent recorded in the same period last year. This
suggests that policies, strategies and directives aimed at both controlling
the pandemic and ensuring socio-economic development have been effective. Standard
Chartered on Thursday also released a survey that said that ASEAN companies
focusing on intra-regional opportunities expect to experience robust growth
over the next 12 months. The survey
was a part of its “Borderless Business: Intra-ASEAN Corridor” report that
explores high-potential opportunities for cross-border growth within the
region. The most
important drivers for expansion across the region, according to the senior
executives surveyed, were: access to the large and growing ASEAN consumer
market, access to a global market enabled by a network of Free Trade
Agreements, and availability of abundant and skilled workforce. In addition,
the Regional Comprehensive Economic Partnership (RCEP) is expected to attract
more investment in ASEAN, with all respondents saying they are planning to
increase their investments over the next 3-5 years. Furthermore,
80 per cent of the surveyed respondents said they were focusing on expanding
in Singapore to capture sales and production opportunities, followed by
Thailand, and then Viet Nam. As ASEAN
companies look to invest across the region, Singapore is considered the most
desirable market for companies to set up to host their regional sales and
marketing teams, headquarters, and research and development teams. The survey
also identifies a wide range of risks in the region including: COVID-19
and/or other health crises, geopolitical uncertainty and trade conflicts, and
a drop in consumer spending. Furthermore,
respondents said that adapting their business model to industry practices and
conditions within ASEAN, building relationships with suppliers, and adapting
supply chain logistics, as well as understanding regional regulations,
payment methods, and infrastructure, are the most significant challenges they
face in the next 6-12 months. To drive
resilient and rebalanced growth in ASEAN and to mitigate these risks and
challenges, the surveyed executives said entering new partnerships and joint
ventures to increase their market presence would be key. They also
said that sustainability and environmental; social, and governance
initiatives; and executing digital transformation programmes are the most
important areas their companies will focus on. To further
support their growth, these companies say they are seeking banking partners
with strong cash management capabilities, one-stop corporate financing and
capital-raising services, and extensive trade financing services. Michele Wee,
CEO, Standard Chartered Vietnam, said: “Viet Nam continues to offer appealing
business and investment opportunities given its strong fundamentals – robust
economic growth, a sizable domestic market, low labour costs, an abundant
workforce, free trade agreements, and strategic location. ” Source:
VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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