VIETNAM BUSINESS NEWS SEPTEMBER 25
15:00 Vietnam
exported 15,870 tonnes of tuna worth 73.33 million USD to the European Union
in the first half of 2021, up 39.3 percent and 31.6 percent, respectively,
against the same period last year, according to a journal published by the
Ministry of Industry and Trade (MoIT). The tuna
shipments accounted for about 15.1 percent of Vietnam’s total seafood export
value to the EU. In the
second quarter of 2021, the country shipped 9,360 tonnes of tuna to this
market, raking in 45.05 million USD, up 43.9 percent in volume and 59.3
percent in value from the previous quarter. The surges
were attributed to tariff reductions granted to Vietnam’s tuna products under
the EU-Vietnam Free Trade Agreement (EVFTA), which took effect on August 1,
2020. According to
the MoIT, Vietnamese tuna was sold at 4.62 USD per kg on average to the EU in
the first six months of the year, down 0.27 percent year on year. The global
tuna prices have been declining on the back of weakening demand of canned
tuna during the period. Significant
growth was seen in a number of EU markets, including Poland which recorded
imports of Vietnamese tuna rocketing 989 percent in volume and 608.6 percent
in value, and Bulgaria, 289 percent and 229 percent, respectively. Data from
the European Statistical Office (Eurostat) showed that Vietnam was the EU’s
eighth largest provider of tuna outside the union in the first four months of
2021, making up a 4.9 percent share of the EU’s total tuna imports, compared
to 4 percent in the same period last year. The MoIT’s Agency
of Foreign Trade warned that Vietnam’s tuna shipments are likely to continue
facing difficulties from the EU as a result of the COVID-19 resurgence and
the “yellow card” warning on the illegal, unreported and unregulated (IUU)
fishing imposed by the EC on Vietnam./. Online shopping rises 50 percent in Hanoi during social
distancing Online
shopping through e-commerce platforms by consumers in Hanoi rose 30-50
percent in four social distancing periods, according to the city Department
of Industry and Trade. Acting
Director of the department Tran Thi Phuong Lan said that goods supplies have
been ensured in the city to meet the demand of local residents amid social
distancing. The
department has also rolled out measures to support farmers in selling their
products, while allowing farm produce from 22 other cities and provinces to
be sold in the capital city, she said, noting that over 200,000 tonnes of
agricultural and aquatic products were consumed in only 10 days as of
September 21. Along with
creating optimal conditions for the transport of goods, the city has quickly
conducted testing and vaccination on labourers working in goods distribution
system. So far, all of them have received at least one COVID-19 vaccine shot,
said Lan. She said
that the department has directed the diversifying of goods selling methods,
focusing on promoting e-commerce. Meanwhile,
it has given advice to the municipal People’s Committee on the issuance of a
set of safe production and business criteria, along with guiding local firms
to devise safe operation plans. The department has also listened to ideas
from local enterprises to make proposals to authorised agencies on solutions
to remove obstacles facing them, especially those relating to capital, tax,
goods transport and export. Once the
pandemic is completely controlled, the department will make advice to the
city authorities to launch trade facilitation programmes to help local firms
sell their products, she stated./. Apartment owners look to cut their losses Severe
ongoing restrictions have forced many individual investors to lower prices
and sell their real estate products to balance cash flow after a long time of
little to no liquidity. Selling
quotations have been high since the establishment of Thu Duc city in Ho Chi
Minh City. However, over the past few months, apartment and townhouse
projects are being quoted at a much lower price compared to before this
summer’s restrictions took hold. According to
Bui Tung, a freelance broker in Thu Duc city, a 100-square-metre
townhouse in Pho Dong Village could be sold at around $435,000 per unit. This is 40
per cent higher than before the establishment of Thu Duc city in 2020.
However, the units were advertised in the last three weeks at a discount of
$17,400-21,700 per unit. The reason
for this price reduction, according to Tung, is that many property owners
cannot afford the interest of bank loans as long as the pandemic persists. “My clients
whose property I sell said that they want to sell the property as soon as
they can to avoid interest rates from banks,” Tung said. Meanwhile,
many apartment buyers are also looking to sell to reduce financial pressure. Minh Cuong
is an investor who bought an apartment in Binh Duong province. Up to now, he
has paid 70 per cent of the apartment value to the project developer.
However, Cuong now has to find a way to sell his apartment because his
finances are exhausted. “My next
installment payment is due in October but a cousin who promised to lend me
the sum can no longer do so. He is also having financial difficulties caused
by the pandemic,” Cuong said. Income from
the apartment and house rental dropped sharply, while interest expenses did
not decrease, strongly impacting financial capacity. Therefore, investors
have to sell their apartments at equal or even lower prices than they bought
them to recoup their capital. In Hanoi,
many apartments in the D’Capitale Tran Duy Hung project were recently
advertised with a sharp reduction in price. A 2-bedroom unit in this project
sold at $182,600 in 2017 is now advertised at 70 per cent of this price only. A similar
situation was seen at Sunshine City where many owners are selling at $1,600
per sq.m compared to the previous $1,830. High-end
apartments in Hanoi, mainly in Hadong, Thanh Xuan, Cau Giay, and South Tu
Liem districts, are also sold at a reduced price of around $130-215 per sq.m. Distressed
sales are even higher in condotel apartments after two years of legal delays,
with condotels not yet recognised as accommodation. In Nha Trang,
many condotels on Tran Phu, Nguyen Thi Minh Khai, Nguyen Tat Thanh, and Pham
Van Dong streets are being offered at a common reduction of $4,400-13,000 per
unit compared to the same period of last year. Many owners are selling at
around the same drop in the popular Danang streets of Ly Thuong Kiet, Truong
Sa, Vo Nguyen Giap, and Ngo Quyen. Reductions
are often being reported by the owners themselves, and not by the developer.
Some current owners are struggling to balance their cash flow, and then look
to sell their properties. Meanwhile, the price cuts have not involved
existing developers because the fund of property products that can be sold to
the market is very limited. Even though
prices have dropped in some areas and projects, developers are finding it
hard to grasp buyers because of social distancing regulations. On top of
that, selling through online channels is not yet efficient enough for most,
especially for small investors or individual sellers. Nguyen Van
Dinh, vice chairman of the Vietnam Association of Real Estate Realtors said,
“The trend of distressing apartments and condotels has appeared from the
previous waves of the pandemic. If the pandemic lasts until the end of this
year, many more assets will be offered at much-reduced prices.” VCCI launches virtual workplace platform on COVID-19 response
solutions A virtual
workplace platform named VCCI-Workplace was launched on September 24 by the
Business Cooperation Council in Response to COVID-19 under the Vietnam
Chamber of Commerce and Industry (VCCI) to help enterprises in the fight
against COVID-19 and resume production and business. According to
VCCI, given complicated developments of the COVID-19
pandemic, businesses will have to live with the pandemic in the
long run. Thus, it set up the Business Cooperation Council in Response
to COVID-19 and coordinated with Facebook to build the virtual
platform. The council
aims to promptly update and reflect arising issues and difficulties facing
the business community and to collect the community’s recommendations and
suggest related policies and solutions to coping with COVID-19 to the
Government and relevant agencies. It will create links among business leaders
for cooperation, and information and experience exchanges to combat COVID-19
and sustain production and business operations. The platform
works round the clock to collect enterprises’ feedback on their issues and
proposals to the government and to provide them with consultancy. It will
also help connect participating enterprises for experience sharing, mutual
support, and trade promotion. All
businesses can participate but only those who are chairmen, general
directors, and directors of the businesses are eligible to interact on the
platform. Interested representatives from enterprises can register on the
council's website at: https://covid19.vcci.vn. According to
Nguyen Quang Vinh, General Secretary of VCCI and head of the council's
secretariat, the VCCI-Workplace platform will allow fast and
multi-dimensional information sharing and support making timely decisions as
well as more effective teamwork, helping to improve the cooperation between
the council and members who are business representatives./. SHB approved to increase charter capital to 1.16 billion USD The
Saigon-Hanoi Commercial Joint Stock Bank (SHB) was given approval from the
State Bank of Vietnam to increase its charter capital from the current 19.2
trillion VND (843.2 million USD) to 26.6 trillion VND (1.16 billion USD). Of which,
the bank would add 2 trillion VND by issuing shares to pay dividends with a
rate of 10.5 percent from its after-tax profit after setting aside funds in
2020. Another 5.3 trillion VND would be added to the charter capital by
issuing shares to existing shareholders with the offering price of 12,500 VND
per share. The charter
capital increase aims to improve SHB’s financial potential, expand lending
scale, and invest in information technology. Especially, it would help
promote the bank's digitisation, realising the goal of becoming a modern
retail bank with optimal financial products and services according to
Industry 4.0 standards. Earlier, SHB
successfully issued more than 175 million shares to pay the 2019 dividend in
May 2021, raising its charter capital to more than 19.2 trillion VND. In the first
half of the year, SHB reached before-tax profit of 3 trillion VND, posting an
86.5 percent year-on-year increase, meeting half of its whole year set
target. Its return on equity (ROE) reached 24.3 percent. As of June
30, its total assets reached 458 trillion VND, increasing 11 percent from the
beginning of the year and meeting 99.5 percent of the set target. More than
1.9 billion shares of SHB would be moved from the Hanoi Stock Exchange (HNX)
to the Ho Chi Minh Stock Exchange (HoSE) from October 5. With the
capitalisation of over 51.6 trillion VND, SHB has been one of the most
influential stocks on HNX. The move from listing SHB to HoSE will reduce the
market capitalisation of HNX by more than 12 percent./. Woes persist in logistics regulations Deemed as an
emerging logistics hub for the region, Vietnam nevertheless still features
some undue regulatory barriers that prevent foreign investors from entering
the fast-growing sector. According to
the Organisation for Economic Co-operation and Development’s (OECD)
recently-released study on small-package delivery services and logistics in
Vietnam, there are obstacles in the sector arising from statutory barriers,
such as restrictive regulations. The OECD found that logistics as a whole is
qualified in legislation as a “conditional business sector”, with the
consequence that foreign direct investment (FDI) must satisfy certain
conditions and is subject to specific limitations. Amongst
others, foreign investors must obtain merger and acquisition (M&A)
approval and meet several requirements on economic needs test, morality,
community health, and more. Furthermore, foreigners are not allowed to hold
more than 49 per cent shareholding in a public company. “Over the
last 20 years, Vietnam has seen increasing M&A activity, whose percentage
growth in terms of value has been faster than in comparable ASEAN economies,”
said Ruben Maximiano, a senior competition expert at the OECD. “In regards to
investments by foreign companies, Vietnam has made significant reforms to
liberalise its FDI regime since 1987. Despite such reforms and increasing
M&A activity, foreign companies still face challenges when investing in
Vietnam.” Maximiano
told VIR that the inclusion of logistics in the list of conditional business
sectors affects logistics activities as diverse as sea freight transport
services, container handling, goods transport brokerage services, freight
transport services on inland waterways, and road transport services, to name
a few. Higher FDI
regulatory restrictiveness in the Vietnamese transport sector compared to
certain ASEAN countries is also reflected in the OECD FDI Regulatory
Restrictiveness Index, which measures statutory restrictions on FDI in 69
countries. In order to
remove barriers limiting foreign investments in the logistics sector, the
OECD recommended excluding logistics-relevant activities from the list of
conditional business sectors. This could be done by applying provisions that
are already laid down in Vietnam’s legislation. Such provisions grant the
government the power to review activities qualified as conditional business
sectors, based on socioeconomic considerations. According to
Jeffrey Tan, head of Group Corporate Development and Technologies at YCH
Group, Singapore’s largest home-grown supply chain solutions company, there
are still challenges for foreign logistics firms to expand their business in
Vietnam. One such instance is the lengthy administrative procedures, and
delays in customs clearances will also only increase operational costs. The
establishment of new companies is also subject to conditions on ownership and
services, with services being clearly segmented into 16 types, such as cargo
handling services, container warehousing services, and cargo agency services.
This will lengthen the paperwork for companies like YCH Group, which
primarily focuses on being an integrated end-to-end supply chain and
logistics solutions provider. “Although
the areas of logistics business in Vietnam have considerably improved as
compared to when YCH Group entered the market back in 2009, there are still
plenty of restrictions for foreign logistics firms to expand their business
in the country, and it is far from being a liberalised logistics industry,”
Tan said. “The
Vietnamese government does not only need to focus on simplifying
administrative reforms, but also increases investments in logistics
infrastructure and warehouses to strengthen its logistics ecosystem and
regional connectivity,” Tan added. “This will not only reduce logistics costs,
but also increase Vietnam’s trade competitiveness on the global stage.” In the World
Bank’s Doing Business 2020 report, Vietnam was ranked 70th among 190
economies, with reforms focusing on access to credit and taxes. Vietnam still
ranks low on the aspects of starting a business and paying tax, ranking 115th
and 109th, respectively. Moreover, the report also stresses the need for
further digitalisation and streamlining of administrative processes to boost
the country’s business environment. “These will
be key factors for Vietnam moving forward,” Tan said. “While there are
already reforms in paying taxes and slowly easing procedures in starting a
new business, these are the two areas Vietnam still needs to continue to work
on.” According to
estimates, Vietnam’s logistics sector will continue growing with an estimated
compound annual growth rate of 13.6 per cent until 2023. The sector is
dominated by freight transport by water, which accounted for 48 per cent of
the total logistics revenues in 2017, though freight transport by road also
accounted for a large percentage. Vietnam has
adopted an action plan for the development of logistics services by 2025,
which includes ambitious goals regarding infrastructure, policies, business
capacity and human resources. Hanoi to host Taiwan Textile Roadshow next month Garment
products from Taiwan (China) will be showcased at the Taiwan Textile Roadshow
held in Hanoi from October 6-7 at the Hanoi International Exhibition Centre
at 91 Tran Hung Dao Street. The Taiwan
Textile Federation (TTF) and the Vietnam National Trade Fair and Advertising
Company (Vinexad) will coorganised the roadshow under both direct meetings
and via online platforms. It is sponsored by the Bureau of Foreign Trade
under the Ministry of Economic Affairs of Taiwan. The event aims to
strengthen cooperation between Vietnamese and Taiwanese enterprises in the
textile and garment sector. There will
be 12 Taiwanese textile manufacturers participating in the event via Zoom,
exchanging experience with and introducing products to Vietnamese enterprises
with interpretation support. Taiwanese
enterprises will introduce techniques to produce fabric using dyeing
treatment that can reduce the impact on the environment. They have also
applied innovative technologies in production to produce fabrics with many
outstanding features such as fabric from recycled plastic, warp-print fabric,
antibacterial fabric, UV protection fabric, cooling and multi-functional
fabric. In 2020,
Taiwan's largest textile and garment export market was Vietnam, with an
export turnover of up to 1.9 billion USD and accounting for 25.3 percent of
Taiwan’s total export turnover of textiles and garments. The top five export
markets, including Vietnam, mainland China, the US, Indonesia and Hong Kong
(China), account for 60.3 percent of Taiwan’s total apparel exports. Taiwan's
largest and second-largest sources of textiles in 2020 were mainland China
and Vietnam, accounting for 43 percent and 14 percent of total textile
imports and valued at 1.46 billion USD and 467 million USD, respectively. The
main import items from mainland China and Vietnam were clothing and
accessories./. Localities attempt to buck funding trend An increase
in financing for operational projects so far this year is demonstrating
foreign investors’ trust in the local investment environment and the efforts
of localities in improving the business community. Dong Nai People’s
Committee in late August granted an investment certificate for Hyosung
Vietnam with added capital of $37 million, increasing the company’s total
investment capital in the southern province to $697 million. Hyosung Vietnam,
a 100 per cent foreign-invested company that manufactures fabrics, spandex,
nylon, and polyester, has poured approximately $1.5 billion into Dong Nai
over nearly 15 years of operation. At the same
time, the southern province also licensed South Korean paint manufacturer KCC
Vietnam Co., Ltd. to adjust an additional $30 million to expand its
manufacturing line, increasing the company’s capital in the province to $111
million. They are
only two of numerous added-capital projects approved in recent months. In
Dong Nai, a majority of foreign-invested enterprises are operating at between
25 and 60 per cent capacity compared to before the summer pandemic woes
began. However, they are still determined to expand operations with the trust
that the current situation can ease before the end of the year. “Foreign
investor expansion is a part of their long-term plans in the province. Along
with trust in the investment environment here, they see the potential in Long
Thanh International Airport, which is undergoing construction,” Le Van Danh,
deputy director of Dong Nai Industrial Zones Management Authority, told VIR. “The
province supports maximum favourable conditions for investors to develop
projects. When they prepare dossiers with the full necessary papers, the
authorities can take only one day to approve their projects,” Danh said. In normal
times, almost all investors can meet construction deadlines as committed.
However, at present, the pandemic is impacting this process. “In
newly-registered projects and added-capital projects, the investors are eager
to wait for the control of the pandemic in order that they can implement
their projects as soon as possible,” Danh added. Over the
past year, global foreign direct investment flows have fallen by 35 per cent
to $1 trillion amid the COVID-19 pandemic, the lowest level since 2005 and
almost 20 per cent lower than after the 2008 global financial crisis hit,
according to the United Nations Conference on Trade and Development’s
(UNCTAD) World Investment Report 2021. But after a stronger-than-most 2020 in
Vietnam, various cities and provinces are doing all they can to continue
their decent progress in this regard. Masato
Kataoka, general director of Ojitex Vietnam Co., Ltd, said that after the
success of the first project in Dong Nai, the firm decided to build another
factory in Loc An-Binh Son Industral Zone of Long Thanh district, with the
total investment capital of $60 million and capacity of 78,000 tonnes of
paper products a year. Kataoka
explained that the province has methodical plans for growth and the
infrastructure is basically completed. Besides that, the province has made
efforts to create regional links to ensure smooth goods transportation.
Especially, the leadership team is willing to accompany enterprises to deal
with difficulties during the investment process. These reasons are the basis
for the company’s decision for investment expansion. These
projects have contributed to lighting up the picture of foreign-invested
capital attraction in 2021 thus far. Statistics published by the Ministry of
Planning and Investment’s Foreign Investment Agency showed that during
January-August 20, the total newly-registered capital increased by 16.3 per
cent on-year to $11.33 billion and the total added capital increased by 2.3
per cent to nearly $5 billion. The number of projects with capital of over
$50 million has also increased. In Bac
Giang, Bac Ninh, and Ho Chi Minh City among others, organised meetings with
representatives of the business community have discussed the difficulties and
look for solutions. Cities and provinces have inevitably been dealing with
problems relating to the production and business activities of a large number
of enterprises where social distancing measures are being imposed to prevent
the spread of COVID-19. Especially,
local authorities are paying attention to issues related to regulations on
COVID-19 prevention and control, such as transport control, goods
circulation, vaccinations, entry of experts, policies to support businesses,
and digital transformation in enterprises. Direct dialogue, emails, and
consulting via hotlines are maintained as regularly as possible despite the
current restrictions. Nguyen Van
Hieu, head of Planning at Bac Ninh Department of Planning and Investment,
told VIR that the province is implementing a four-pronged policy to support
and attract investors, covering land, labour force, investment reform, and
general support. “Reforming
the investment environment is considered the leading priority to attract
investors. In Bac Ninh, the trust and satisfaction of investors are
considered the core goal to promote the economic development of the
province,” said Hieu. “We support investors through a task force model to
work directly with enterprises. Besides that, we gain feedback from
organisations and individuals via a hotline when they carry out
administrative procedures.” Teleconference between Government, businesses to take place this
weekend A
teleconference between the Prime Minister and the business community,
localities will take place in Hanoi on September 26 to discuss support for
enterprises amid COVID-19 pandemic, reported the Vietnam Chamber of Commerce
and Industry (VCCI). The event
will be co-hosted by the VCCI, the Ministry of Planning and Investment, the
Government Office and people’s committees of centrally-run cities and
provinces. Data from
the General Statistics Office (GSO) showed that in August, the number of
firms leaving the market was higher than newly-established ones. In eight
months of this year, there were 81,600 newly-established firms but up to
85,500 left the market. Among those
leaving the market, 43,200 firms suspended their operations for a fixed
period, up 25.9 percent. Other 30,100 waited for and 12,200 completed
business dissolution procedures, marking a respective increase of 24.5
percent and 17.8 percent. On average, nearly 10,700 companies left the market
each month. The GSO also
reported that the numbers of new firms and workers, and registered capital in
August decreased markedly year-on-year. As of
September 24, the VCCI received suggestions from over 100 business
associations and hundreds of firms regarding response to the pandemic. Based
on them, the VCCI will make a report to submit to the event. Earlier on
September 17, the VCCI debuted the Business Cooperation Council in response
to COVID-19 to offer the quickest support to business community. The
council has launched the website https://covid19.vcci.com.vn and put into
operation an online platform where firms could report their difficulties and
offer proposals to the Government and localities. Business
associations or firms could register for a member of the council via the
website and send recommendations to the event so that the VCCI could collect
them and report to the PM and agencies concerned./. Investment flows into Vinh Phuc rise in nine months despite
COVID-19 The northern
province of Vinh Phuc raked in close to 1.15 billion USD in investment during
the first three quarters of 2021, a slight increase from the same period last
year, despite economic uncertainties caused by the COVID-19 pandemic. By the end
of September, the province has attracted a total of over 5.01 trillion VND
(220.46 million USD) in domestic direct investment (DDI) from 10 new projects
and two operational ones, 8 percent higher than the plan. It has
licensed 24 new foreign direct investment (FDI) projects and allowed 19
others to add capital, with the extra investment worth nearly 929 million USD
in total, fulfilling 99 percent of the goal. Vinh Phuc is
currently home to 404 valid projects, including 75 DDI projects which have
combined registered capital of nearly 19.43 trillion VND. The remainders are
FDI projects with total capital of approximately 5.38 billion USD. As of
September 15, 41 percent of the registered DDI and 55 percent of the
registered FDI have been disbursed. The pandemic
has caused troubles for many local enterprises in accessing workforce,
funding and supply of materials and markets since the beginning of this year.
Despite these challenges, the local administration and companies have adopted
multiple measures to keep production going and prevent the spread of the
virus./. Support industry development policy need to be part of life The
Government have issued a host of preferential policies for businesses
operating in supporting industries over the past time. However, their
beneficiaries have said it is difficult for them to access incentives and
support from these policies. In June
2021, the Prime Minister has issued a decree supplementing a previous one on
corporate income tax incentives for supporting industry projects. Accordingly,
beneficiaries include enterprises having investment projects implemented
before January 1, 2015 on manufacturing supporting industry products on a
list of those prioritised for development. In 2020, the
Government issued a resolution on solutions to the development of supporting
industries, which set out specific goals for the sector by 2025 and 2030 as
well as financial and credit incentives for enterprises involved. In 2015, a
decree on developing supporting industries was issued, offering support
policy for organisations and individuals participating in the research and
development of prioritised supporting industry products. However, a
large number of firms operating in the field have been facing hurdles
accessing the Government’s preferential policies, particularly regarding
credit and interest rate. The reason
is that in order to get a loan, businesses need to meet many conditions. Most
supporting industry enterprises have small scale, limited financial capacity,
no or very little collateral. The demand for loans is often large compared to
the size of their assets. Moreover,
the loan needs of supporting industry firms are mostly for medium and
long-term to invest in machinery, equipment, and production lines, while
preferential credit policies usually apply only to short-term capital and
have a small scope of incentives. In order to
realise policies and incentives for supporting industry development into
life, opening up opportunities for firms to participate in the global value
chain, it is necessary for ministries, branches and localities to come up
with relevant solutions and facilitate businesses in accessing the incentives. Vietnamese
enterprises operating in the support industry account for 4.5 percent of the
total number of enterprises operating in processing and manufacturing in the
country. Businesses
specialising in supporting industries employ 8 percent of the industrial
sector’s workforce and contribute 900 trillion VND (39.5 billion USD) or 11
percent of the industrial sector’s total revenue. Vietnamese
enterprises have many opportunities to provide products to assembling and
manufacturing enterprises abroad, thus further expanding the country’s
supporting industry in the future. Boosting the
development of the supporting industry is one of the important solutions for
Vietnam to improve the quality of the economy, ensuring sustainable
development avoiding the middle income trap and enhancing the country’s
capacity of attracting foreign investment. The efforts
are also expected to encourage and assist domestic firms to join deeper into
the supply chain of foreign-invested companies as well as the global supply
chain. The
Vietnamese Government approved Resolution 115/NQ-CP in August last year,
which clarified solutions to promote Vietnam’s supporting industries, giving
specific goals for the sector such as ensuring high level of competitiveness
in the next decade. Especially in 2025, Vietnamese firms are expected to meet
45 percent of the basic demands for domestic production and consumption with
about 1,000 businesses capable to directly supply supporting products to
assembling companies and multinational groups in the Vietnamese territories. With the
same purpose, in late 2020, the Ministry of Industry and Trade launched the
Vietnam Technology Advice and Solutions from Korea Centre (VITASK) and a mold
technology centre. The
establishment of these facilities showed the desire to boost the growth of
the supporting industry in a strong manner as well as promote cooperatikn and
investment to enhance the capacity of Vietnamese firms in engaging deeper
into the global supply chains, meeting the demand for seeking high quality human
resources or promissing partners from the Republic of Korea in Vietnam./. Binh Thuan province makes progress in fighting IUU fishing The
south-central province of Binh Thuan found no cases of illegal, unreported
and unregulated (IUU) fishing by local farmers from July 2019 to mid-2021,
heard a conference on September 24. Nguyen Van
Chien, Deputy Director of the provincial Department of Agriculture and Rural
Development, said local authorities have paid attention to preventing IUU
fishing, particularly fishing vessels' illegal exploitation in foreign
waters, over the past time. Apart from
enforcing the 2017 Law on Fisheries, Binh Thuan has drastically carried out
the communication work to raise farmers’ awareness of relevant regulations,
the official said. The province
has focused on implementing recommendations of the European Commission (EC)
regarding the installation of Vessels Monitoring System (VMS) on boats, and
supervising fishing activities at sea and ports. Delegates at
the conference discussed obstacles in combating IUU fishing, and
countermeasures. Nguyen Van
Phong, Vice Chairman of the provincial People’s Committee, said border guards
need to closely coordinate with law enforcement agencies, and the Department
of Agriculture and Rural Development to verify and handle violations. All of the
targeted fishing boats must be equipped with the VMS, he requested./. Hai Phong port receives three container ships of Maersk Line The Tan
Vu port of the Hai Phong Port JSC in the northern city of the
same name recently welcomed three container ships of international container
shipping company Maersk Line. They are the
MAERSK NUSSFJORD of Panama which measures 171.93m in length, with a capacity
of nearly 30,000 tonnes, and the Singaporean-flag MAERSK VALENCIA, with a
capacity of over 23,000 tonnes, along with the PADIAN 2 carrying goods of
1,100 TEUs. The arrival
of the three vessels was among activities at Hai Phong Port marking the 30th
year of Maersk’s operation in the Vietnamese market. In August,
Hai Phong Port handled goods totalling 7.49 million tonnes and received 164
vessels, including 91 container ships./. Vietnam, Mexico seek to optimise CPTPP to bolster bilateral
trade The
Vietnam-Mexico Joint Committee for economic, trade and investment cooperation
convened its third meeting on September 24 via videoconference under the
co-chair of Vietnamese Deputy Minister of Industry and Trade Do Thang Hai and
Undersecretary for Foreign Trade in Mexico's Secretariat of Economy Luz María
de la Mora. Both sides
reviewed the outcomes of cooperation since the second meeting of the
committee in July 2019 in Mexico City, and defined the tasks for the time to
come to further foster bilateral partnership in various fields. They shared
delight at the progress in the economic and trade ties so far. They agreed
that there is ample room for stronger trade partnership between the two sides
thanks to the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPCPP). Both sides
underlined the need to continue to increase bilateral trade collaboration
through trade promotion activities, focusing on the export of major products
of each side to each other's market, as well as fostering close coordination
in the implementation of the CPTPP. At the same
time, Vietnam and Mexico also highly valued cooperation results in many
fields. Amid the impacts of COVID-19 pandemic on the global economy, the
meeting was considered a joint effort and determination of both sides in
further bolster bilateral partnership, affirming that Vietnam and Mexico
consider each other as an important partner in the region and the world. Concluding
the event, Hai and Luz María de la Mora signed the minutes of the meeting./. Hanoi tourism builds trademarks for local souvenirs Craft
villages and tourism businesses in Hanoi have been tasked with building
trademarks for local souvenir products, in line with a plan of the city to
carry out the national tourism development strategy to 2030. Souvenir
development is believed to hold huge potential that may greatly contribute to
Hanoi’s tourism by increasing tourists’ length of stay and spending. With more
than 1,350 craft villages, Hanoi is a tourism hub of great potential for
souvenir development, with many unique products originating from such
villages. According to
the association of craft, ancient and cultural villages of Hanoi, 35 villages
under its management are able to create hundreds of products and souvenir
serving visitors. Many of them receive orders from European and Asian
nations. Head of the
association Nguyen Van Su said that the villages, over the years, have stayed
connected with well-known tourist destinations to introduce and sell their
products. However, in
the home market, traditional gifts have little appeal and competitive edge.
The number of products sold as souvenirs at local destinations remains
modest, and few of them bear typical traits of the sites. Phung Quang
Thang, Director of Hanoi Tourist and President of the Hanoi Travel
Association, pointed out that souvenir development at craft villages has yet
to be effective due to a lack of connectivity and information sharing between
the villages and travel agents. Meanwhile,
plain design and limited promotional activities made souvenirs from Hanoi’s
craft village unsuitable for domestic and foreign holidaymakers’ taste. Director of
the Temple of Literature’s Centre for Scientific and Cultural Activities Le
Xuan Kieu said the site has rolled out a contest to design its own souvenirs.
Afterward, it will join hands with craft villages to produce new products. Head of the
Hoa Lo Prison Relic Site Management Board Nguyen Thi Bich Thuy said that it
has built a panoply of souvenirs with links to historical stories associated
with the relic. Su said the
group of villages have worked with the People’s Committee of Hoan Kiem
district at the heart of the city and the Hanoi Travel Association, together
with some relic sites, on an idea to set up an area introducing craft
products, souvenir and gifts created by Hanoi villages. The move,
which is hoped to promote the quintessence of local craft villages and
enhance visitors’ experience, requires stronger collaboration amongst local
craft villages, tourist destinations as well as tourism company, insiders
said. At present,
the Hanoi Department of Tourism and the municipal People’s Committee are
mulling over the organisation of a festival on Hanoi souvenir and gifts this
year, when the COVID-19 pandemic is brought under control. The number
of tourists to Hanoi in the first half of 2021 is estimated at 2.9 million,
down 25 percent year-on-year, according to the municipal Tourism Department. The city has
earned only 8.1 trillion VND (352.6 million USD) from tourism services, a
year-on-year decrease of 57 percent. Currently,
Vietnam has not yet opened its doors to international tourists. The number of
foreigners coming to Hanoi during this time is modest, mainly experts and
workers staying in Vietnam. Therefore,
the capital city’s tourism industry has actively restructured new tourism
products with a view to better serving domestic tourists, such as a night
tour to explore Thang Long Imperial Citadel – a UNESCO-recognised world cultural
heritage site, a folk experience tour to the Museum of Ethnology, or a night
tour to the Hoa Lo prison relic site. The sector
has also set an overall target of catering to between 13.16 and 19.4 million
tourists, including 10.96-15.34 million domestic visitors, for this year. Hanoi
attracted some 8.65 million holidaymakers in 2020, equivalent to 30 percent
as compared with 2019, of whom foreign arrivals were estimated at 1.11
million, equivalent to 15.8 percent from last year./. Mekong Delta provinces seek to bolster key exports The fourth
COVID-19 outbreak has forced 13 southwestern provinces into strict social
distancing for a prolonged period of time. Despite facing many difficulties,
enterprises have managed to maintain production and exports, and many
provinces have even recorded export growth compared to 2020. According to
the Ministry of Planning and Investment, total exports from the Mekong Delta
region reached US$9.5 billion as of the end of August, up 8.8% over the same
period last year. The region’s export strengths are mostly agricultural
commodities such as rice, catfish and shrimps. In
mid-September, Camimex Foods, one of the six largest seafood producers in Ca
Mau Province, saw more than 1,100 workers returning to normal work, 80% of
its permanent workforce, helping raise its productivity from 30% to 60%. Camimex
Foods General Director Bui Duc Cuong said the company is prepared to cope
with the epidemic for a long time so it has taken every measure to ensure
safety and maintain production while not disrupting the supply chain. He
added that it is also the foundation for the company to keep its export
targets unchanged at US$120 million in 2021, up 20% from last year. According to
Ca Mau’s policies, locally enterprises do not have to follow the “three
on-site” and “one route, two destinations” models once social distancing
measures are relaxed. Enterprises are now to be given more autonomy in
issuing travel permits for employees but must increase testing frequency and
enhance other preventive measures. Director of
the Can Tho Department of Industry and Trade Nguyen Van Do said the seafood
industry is still growing, reaching US$652 million, up 17.6% over the same
period last year. General
Director Tran Van Tuan of Khanh Sung, a shrimp farming company in Soc Trang
Province proposed the provincial authorities accelerate vaccination for
workers in the shrimp production and processing industry as it is the locus
of Soc Trang and the wider Mekong Delta region. According to
Soc Trang Party Secretary Lam Van Man, shrimp prices are rising as the
epidemic is gradually being brought under control. The province currently has
20 seafood exporters, the largest five specialising in shrimp, accounting for
three quarters of seafood exports. Soc Trang is currently the national leader
in seafood exports, with revenue of US$600 million, accounting for 12% of the
country’s total. In the first
eight months of 2021, Kien Giang’s exports were estimated at nearly US$510
million, up 8.62% over the same period last year, with the rises seen in key
products such as rice, frozen shrimp, squid and octopus. Similarly An Giang
also recorded export growth of over 2% to US$615.47 million. Director of
the An Giang Department of Industry and Trade Nguyen Minh Hung said that
since the seafood processing industry is labour-intensive and involves closed
working spaces, transmission risks are very high. Therefore such enterprises
have been forced to reduce their capacity and let their workers sleep over at
the factories. An Giang’s export goal for 2021 is US$965 million but the
figure in the last eight months has reached only 63.8% of the target. The
province is recalculating its growth scenarios. According to
the Can Tho Department of Planning and Investment, during the social
distancing period, more than 95% of enterprises in the city had to suspend
operations, with 70% of agricultural and seafood exports forced to close. In the past
two weeks, there has been encouraging signs as more than 100 enterprises and
cooperatives in Can Tho registered to resume operation. The Mekong Delta
province has formulated plans to restore its economy in three steps with the
percentage of workers allowed rising from 30% in the first phase, to 30-50%
in the second phase and over 50% in the final phase. Maintaining
production while ensuring distancing means significant costs for enterprises,
exposing them to the risk of losses. Nguyen Van Hoa, Chairman of the Can Tho
Business Association stated that banks should continue to restructure
existing loans and grant new loans so that enterprises can have the resources
to maintain production. In addition,
local authorities should prioritise vaccination for workers and implement new
methods to replace the “three on-site” model so as to reduce the burden on
enterprises. FTAs boost Vietnam-Chile trade: conference Free trade
agreements to which both Vietnam and Chile are signatories have given a boost
to their bilateral trade ties, heard a virtual conference on September 23-24. The event is
jointly held by the Vietnam Trade Promotion Agency (Vietrade) under the
Ministry of Industry and Trade (MoIT), the Trade Office and the Vietnamese
Embassy in Chile, and the Chilean Chamber of Commerce in Vietnam. With the
participation of more than 50 enterprises from the two countries, the
conference aims to help Vietnamese enterprises step up exports to Chile. Statistics
by the MoIT reveal that by the end of August, the two-way trade reached 1.27
billion USD despite impacts of the COVID-19 pandemic, with Vietnam’s exports
to Chile up 44 percent and imports, up 15 percent year-on-year. Vietnam
mainly ships phones, components, machinery, equipment, footwear, and
garment-textiles to Chile, while importing seafood, fruit and production
materials from the South American country. Le Hoang
Tai, deputy head of Vietrade, said the conference gave businesses of both
countries an insight into each other's markets, towards sustainable
cooperation. He said the
Vietnamese Government has taken various measures to recover the economy like
removing barriers in administrative procedures, promoting digitalisation, and
creating optimal conditions for enterprises to join the global business
network. Vietnamese
Ambassador to Chile Pham Truong Giang said since the Vietnam-Chile Free Trade
Agreement took effect in 2014, the two-way trade has expanded rapidly. The deal has
enabled Vietnamese firms to access quality and affordable materials such as
wood pulp and fish paste, and other products like salmon and champagne, he
added. Giang
suggested Vietnamese enterprises increase exports to Vietnam in health care,
fibers of all kinds, biodegradable bags, and ropes for salmon farming.
Meanwhile, Chile should step up the export of sawn timber and wood pulp to
Vietnam. There is
still ample room for Vietnamese exporters in Chile – an open market with
import tax among the lowest in the world, at below 2 percent, he said, adding
that through Chile, Vietnamese enterprises could also expand their operation
in other South American nations./. Vietnam, Thailand seek ways to enhance economic cooperation
amidst COVID-19 The
Vietnamese Embassy in Thailand, in collaboration with the Thai Embassy in
Hanoi, co-organised a webinar themed “Vietnam-Thailand economic cooperation
in response to the COVID-19 pandemic” on September 23. The event, part
of activities to celebrate the 45th anniversary of the two countries’
diplomatic ties, attracted the participation of 15 speakers who are leading
economic experts, business managers of Thailand and Vietnam and international
organisations, together with more than 200 delegates from the two countries’
ministries, agencies, localities and businesses. In his
opening remarks, Vietnamese Ambassador to Thailand Phan Chi Thanh highlighted
achievements in bilateral economic cooperation. Despite the COVID-19 pandemic,
two-way trade hit nearly 13 billion USD in the first 8 months of 2021, up
nearly 30 percent year-on-year, thus helping Thailand maintain its position
as Vietnam's leading trading partner in ASEAN. Thai investors continue
committing to invest in Vietnam with more than 600 projects, with a total
capital of more than 13 billion USD. Thanh
thanked Thai businesses for actively joining hands with the Vietnamese
government and people in fighting the pandemic, including donations to the
vaccine fund and provision of medical equipment for Vietnamese hospitals. He
affirmed that the Vietnamese Government is making efforts to implement
measures to contain the pandemic and create favourable conditions for
economic, production and business activities in the “new normal”. Nguyen Anh
Duong from the Central Institute for Economic Management and expert Siwat
Luangsomboon from Kasikorn Bank said that Vietnam has many advantages in
economic recovery, with an open economy and opportunities brought about by
new-generation free trade agreements (FTAs). Sanan
Angubolkul, Chairman of the Thai-Vietnamese Business Council and Nguyen Quang
Vinh, General Secretary of the Vietnam Chamber of Commerce and Industry,
proposed carrying out a clear roadmap and safety measures to soon reopen the
countries, in which the key is to accelerate vaccinations against COVID-19
and improve the capacity of enterprises in self-response to the pandemic. Meanwhile,
Audsitti Sroithong, Director of the Thai Investment Promotion Centre in
Vietnam, said that the bio-circular-green (BCG) economic model will be a
future trend to help countries recover. It will open up big opportunities for
countries in the CLMV region (including Cambodia, Laos, Myanmar, and Vietnam)
to invest in Thailand and vice versa in the fields of smart agriculture,
smart infrastructure, and electric vehicles. Speaker
Johnathan Wong, an economist at UNESCAP, proposed countries promote inclusive
economic activities, create opportunities and equal access for vulnerable
groups, and improve the capacity of the private sector. At the
second session on trade and investment amidst COVID-19, enterprises
recommended the two Governments soon have roadmaps to reopen their countries,
promptly propose consistent measures so that businesses can be well prepared,
limit the impacts on production and business activities, ease financial
burdens, and overcome labour shortages. Businesses
pledged to join hands with the Vietnamese Government in controlling the
pandemic and recovering the economy./. Vietnamese dragon fruit wins consumers’ favour in Australia Vietnamese
dragon fruit not only meets the world's top bio-safety import conditions but
also is highly welcomed by Australian consumers, said the Vietnam Trade
Office in Australia. All
customers’ feedback on the website of Australia's largest supermarket chain,
Woolworths, rated five stars for the frozen dragon fruit from Vietnam. Meanwhile,
the Coles and MCQ supermarket chains are selling fresh Vietnamese dragon
fruit all year round. Director of
the HoaAustralia company said dragon fruit is a strategic product of the
company to distribute along the coastal cities of Australia, adding that
there were times its supply had not met demand. Under the
direction of the Ministry of Industry and Trade, the Vietnam Trade Office in
Australia has intensified its activities to promote the fruit in 2020 and
2021. Since the
beginning of 2021, three promotion activities have been held and the export
value of Vietnamese dragon fruit to Australia has grown nearly 85 percent on
year./. Vietnam’s seaports set to handle 1.14-1.42 billion tonnes of
cargo by 2030 Vietnam’s
seaports are set to handle about 1.14-1.42 billion tonnes of cargo, including
38-47 million TEUs of container goods, and welcomed 10.1 – 10.3 million
passengers annually by 2030, according to a freshly approved master plan. Under the
master plan on developing domestic seaport network over the next 10 years,
with a vision towards 2050, Vietnam aims to develop a uniform system of
modern seaports that provide high-quality services, meet needs for
socio-economic development, and ensure national security and defence,
maritime safety and environmental protection, and improving the economy’s
competitiveness. It is expected to help the country fulfill its goal of
becoming an upper-middle-income developing country with modern industry by
2030. The plan
gives priority to developing infrastructure at major international gateway
ports such as Lach Huyen (Hai Phong) and Cai Mep (Ba Ria-Vung Tau). The
country will also adopt suitable policies for the construction of an
international transshipment port in Van Phong (Khanh Hoa) and look into the
possibility of a port in Tran De (Soc Trang). The plan
classifies Vietnamese seaports into five groups based on their geographical
locations. The first group includes five northern ports in Hai Phong, Quang
Ninh, Thai Binh, Nam Dinh and Ninh Binh. They are set to handle 305-357
million tonnes of cargo and 162,000-164,000 passengers by 2030, with an
annual growth of 5-5.3 percent and 1.5-1.6 percent, respectively, by 2050. The second
group consists of six ports in the north central region namely Thanh Hoa,
Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue; while the third
one features eight ports in the south central provinces of Da Nang, Quang
Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan and Binh Thuan. The fourth
group comprising five ports in Ho Chi Minh City and the southern provinces of
Dong Nai, Ba Ria-Vung Tau, Binh Duong and Long An are set to handle the
largest share of cargo volume – from 461-540 million tonnes – by 2030 and the
goods volume going through the ports is forecast to grow 3.5-3.8 percent by
2050. The last one
consists of 12 ports in the Mekong Delta city of Can Tho and provinces of
Dong Thap, Tien Giang, Vinh Long, Benh Tre, An Giang, Hau Giang, Soc Trang,
Tra Vinh, Ca Mau, Bac Lieu and Kien Giang. They will focus on serving passenger
transport with 6.1 – 6.2 million annually by 2030, the largest among the five
groups. Vietnam also
plans to develop its network of railways and expressways to enhance
connectivity between the Hai Phong and Ba Ria-Vung Tau Ports, categorised as
special class, and other ports nationwide./. Nine-month FDI inflows up 4.4 percent despite COVID-19 Despite
COVID-19 impacts, foreign direct investment (FDI) inflows into Vietnam during
the first nine months of this year rose 4.4 percent year on year to 22.15
billion USD, reported the Foreign Investment Agency under the Ministry of
Planning and Investment. As of
September 20, 12.5 billion USD was poured into 1,212 newly-licensed projects,
up 20.6 percent in value but the number of projects was down 37.8 percent
over the same period last year. Meanwhile, 6.6 billion USD was added into 678
underway projects, a year-on-year rise of 25.6 percent in capital but down
15.8 percent in project number. Foreign
investors also invested nearly 3.2 billion USD to share purchase deals, down
43.8 percent compared to the same period last year. So far this
year, the disbursement of FDI fell 3.5 percent year on year. Leaders of
the Foreign Investment Agency attributed the decreases in the numbers of new
and expanded projects to the travel restrictions and long quarantine policy,
which made it hard for foreign investors to make surveys for their planned
projects. Lockdown and travel restriction measures also affected operations
of FDI firms, they added. Among 18
sectors receiving investment from foreign investors in the first nine months
of this year, processing manufacturing took the lead with 11.8 billion USD,
accounting for 53.4 percent of the total FDI. It was followed by power
production and distribution with over 5.5 billion USD. Meanwhile,
Singapore led 94 countries and territories investing in Vietnam in the period
with total investment capital of nearly 6.3 billion USD, followed by the
Republic of Korea with over 3.9 billion USD, and Japan with nearly 3.3
billion USD. The Mekong
Delta province of Long An attracted the highest amount of FDI during the
period with over 3.6 billion USD, including 3.1 billion USD in a big energy
project. Northern
port city of Hai Phong came second with 2.7 billion USD, while Ho Chi Minh
City came third with nearly 2.4 billion USD. The export
revenue of the FDI sector still increased in the January-September period by
22.9 percent to nearly 178 billion USD. Vietnam, Mexico seek to optimise CPTPP to bolster bilateral
trade They agreed
that there is ample room for stronger trade partnership between the two sides
thanks to the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPCPP). Both sides
underlined the need to continue to increase bilateral trade collaboration
through trade promotion activities, focusing on the export of major products
of each side to each other's market, as well as fostering close coordination
in the implementation of the CPTPP. At the same
time, Vietnam and Mexico also highly valued cooperation results in many
fields. Amid the impacts of COVID-19 pandemic on the global
economy, the meeting was considered a joint effort and determination of both
sides in further bolster bilateral partnership, affirming that Vietnam and
Mexico consider each other as an important partner in the region and the
world. Concluding
the event, Hai and Luz María de la Mora signed the minutes of the meeting. Vietnam racks up trade surplus of US$15 billion with EU Vietnam
enjoyed a trade surplus of US$15.08 billion with the European Union during
the opening eight months of the year following the enforcement of the
EU-Vietnam Free Trade Agreement (EVFTA), according to the Ministry of
Industry and Trade (MoIT). Their
two-way trade turnover throughout the reviewed period reached US$36.88
billion, of which exports and imports were US$25.98 billion and US$10.9
billion, up 14.1% and 16.8% respectively year on year. July alone
saw Vietnam enjoy a trade surplus of US$2.03 billion with the EU,
representing an increase of 15.25% month on month. Iron and
steel exports continued to skyrocket by 77.89% compared to June, and surged
roughly 3.1% year on year. According to
the MoIT’s European-American Market Department, since the enforcement of the
EVFTA last year local firms have seized upon the various opportunities to
enjoy incentives from the trade deal. Data from
the Import-Export Department reveal that 29.09% of the country’s total
exports had used the EUR1 certificate of origin (C/O) form when being shipped
to the bloc during the first half of this year. Several key
exports, including vegetables, seafood, phones and computers have now met the
rule of origin, with many of these items taking full advantage of tariff
preferences under the terms of the trade pact. The
Netherlands, Germany, Italy, and Belgium represent the main consumers of
Vietnamese goods. As such, the export items that have recorded the highest
export turnover in these markets include phones and components, computers,
electronic products, shoes, machinery and equipment spare parts, textiles and
garments.
Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes |
Không có nhận xét nào:
Đăng nhận xét