VIETNAM BUSINESS NEWS FEBRUARY 22
16:27Export-import turnover
hits $21.41 bln in first half of February
 Export-import turnover hit 21.41
billion USD in the first half of February, according to the General
Department of Vietnam Customs. The country raked in 8.75 billion USD from
exports in the period. Three groups of commodities recording
the highest export turnover were phones and components; computers, electronic
products and components; and machinery and equipment. Meanwhile, Vietnam spent 12.66 billion
USD on imports during this period, with the two groups valued at over 1
billion USD being computers, electronic products and components; and
machinery, equipment, tools, and spare parts. As of February 15, the country’s total
import-export turnover reached 81.68 billion USD, the department said. As a result, Vietnam posted a trade
deficit of nearly 4 billion USD in the first half of February, and 2.5
billion USD in the period from the beginning of the year to February 15. Investment capital for Thu
Thiem-Long Thanh light railway allocated The capital allocation has been
addressed to speed up progress of construction project of the Thu Thiem-Long
Thanh light railway from this year. The Ministry of Transport on February
18 has proposed the Prime Minister to allow the People’s Committee of Dong
Nai Province to implement the construction project. Because the rail line
will run through HCMC, the province and HCMC must come to an agreement before
submitting the report to the Prime Minister in accordance with the Investment
Law. The Thu Thiem-Long Thanh light railway
has a length of 38 kilometers, starting at the Thu Thiem station in Thu Duc
City of HCMC, and ending at the Long Thanh International Airport in Dong Nai. The rail line is one of the important
projects aiming at strengthening transport infrastructures to connect with
Long Thanh Airport. Vietnamese overseas
investment soars in January Local enterprises invested a total of
US$36.9 million abroad in January, representing a 11.7 fold-increase compared
to the same period from last year, according to figures given by the Ministry
of Planning and Investment. During the course of this period,
firms received investment licenses for 15 projects worth roughly US$44.2
million, an increase of 14 times against last year’s corresponding period. Of the figure, US$9.19 million was
added to one project, while another project was adjusted to decrease capital
by a total of US$16.4 million. Capital outflows were mainly poured
into nine industries, with the mining sector taking the lead with a new
project capitalized at US$35.54 million, followed by the financial and
banking sector with US$9.19 million, in addition to the wholesale and retail
and transportation and warehousing sectors. Most notably, Laos was the largest
recipient of Vietnamese overseas investment in the reviewed period, making up
25% of the country’s overall investment abroad with US$48.23 million, trailed
by the United States with over US$7.8 million, China, the Republic of Korea,
and Japan. As of January 20, the nation had 1,463
valid overseas investment projects with a total investment capital of over
US$20.9 billion. Cashew sector forecast to
enjoy export growth in 2022 The cashew nut export target of US$3.8
billion for this year set by the Ministry of Agriculture and Rural
Development (MARD) may be achievable given the forecast of high demand for
the product in the near future, according to industry experts. The enforcement of major free trade
agreements (FTAs) such as the EU-Vietnam Free Trade Agreement (EVFTA), the
UK-Vietnam FTA (EVFTA), and the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP), has also brought about more chances for
local products to access the European, America, and Chinese markets. According to the Vietnam Cashew
Association (Vinacas), the cashew nut market is predicted to witness an
annual surge of 4.6% throughout the 2021 to 2026 period. In terms of Vietnam,
the market is expected to hit US$7 billion in 2025. Last year represented a successful
year for the Vietnamese cashew sector with an export volume of 579,800 tonnes
and a value of US$3.64 billion, annual rises of 12.6% and 13.3 %,
respectively. The highest growth in terms of cashew
export earnings was seen in the African market with 35%, followed by the
Asian market with 24%. In addition, Vietnamese cashew took 22% of the market
share in Europe and 23% in the United States, and even 89% in the Chinese
market. Petrol prices rise to all
time-high The retail prices of petrol and oil
continued to witness an increase as of 3 p.m. on February 21 following the
latest price review jointly conducted by both the Ministry of Industry and
Trade and the Ministry of Finance. This marks the fifth consecutive hike
in petrol prices and is the fourth increase in 2022. The latest review sees the price of
E5RON92 biofuel go up by VND961 to a maximum of VND25,531 per litre, while
the price of RON95-III edged up slightly by VND965 to VND26,285 per litre. Elsewhere, the prices of diesel 0.05S
and kerosene were capped at VND20,800 per litre and VND19,500 per litre. Furthermore, Mazut 180CST 3.5S is to
be sold at no more than VND17,930 per kilogram. Moreover, the two ministries also
decided to use VND250 per litre from the petrol price stabilisation fund for
E5RON92, with VND400 per litre being used for diesel. In addition, that of
mazut is VND300 per kilogram. Both the Ministry of Industry and
Trade and the Ministry of Finance are now in the process of reviewing and
adjusting domestic petrol and oil retail prices every 10 days on a par with
global market fluctuations. VBF official highlights
prospects of circular agriculture New initiatives, smart production
concepts, new farming models, digitisation, more efficient logistics and a
greater focus on circular agriculture and responsibility for the environment
will be highlights for this year, said David Whitehead, head of the Vietnam
Business Forum (VBF) Agri-Business Working Group at the annual VBF dialogue
in Hanoi on February 18. Whitehead underlined the need for the
agricultural sector of the world in general and Vietnam in particular to
renovate, with farmers becoming investors in the field. He said that large-scale farmers
should stay in office and check all information provided through sensor
systems and advanced technologies to monitor the use of water, fertilizer,
animal feed and environmental impacts from their production activities. According to Minister of Agriculture
and Rural Development Le Minh Hoan, the agricultural sector will focus on
developing circular agriculture to minimise waste and environment impacts,
improve productivity and shorten supply chains. Circular agriculture focuses on using
minimal amounts of external inputs, closing nutrients loops, regenerating
soils, and minimising the impact on the environment. It will be the key to
the effective management of agricultural resources, reducing resource requirements
as well as ecological footprints of agriculture. Rice produced by
multi-stakeholder partnership shipped abroad Loc Troi Group, a leading provider of
agricultural services and products in Vietnam, shipped more than 4,500 tonnes
of rice worth over 3 million USD to markets in Europe, Americas and Asia in
early 2022. The products, which met all
requirements set by each market, were produced with the partnership between
farming households and the company. The cooperation is part of the Loc
Troi agricultural ecosystem comprising cooperatives and 1,200 staffers
working with rice farmers, which helps raise efficiency, save costs and
benefit farming households who engage in the process. Customs clearance at northern border
gates faces difficulties There are only nine border gates and
crossings along the Vietnam-China land border operating after the Lunar New
Year festival, causing difficulties for customs clearance for goods, the
General Department of Vietnam Customs said. To deal with goods congestion in
northern border gates over the past time, the general department rolled out
many solutions to support businesses in customs clearance. However, there still remain
difficulties in customs clearance due to stringent COVID-19 prevention and
control measures imposed by China, along with the shortages of trucks and
workers. Given this, the general department has
suggested China’s customs agencies facilitate the process at the border gates
where all competent forces are working, especially main and auxiliary gates. It has also called for coordination of
Chinese localities, saying more trucks and workers are needed to load and
unload goods. The general department has suggested
border localities consider upgrading and expanding infrastructure at the
border gates and make reports to authorised agencies for approval. RoK aids aquaculture
productivity enhancement in Vietnam The Ministry of Oceans and Fisheries
(MOF) of the Republic of Korea (RoK) is implementing the first-year technical
cooperation project for aquaculture productivity enhancement in Vietnam’s
northern provinces. This is part of the ministry’s
official development assistance (ODA) endeavours, the ministry said on
February 21. As a model of interdepartmental
collaboration that combines the Korea Forest Service’s ongoing mangrove
reforestation efforts, covering 30 hectares for 2020-2024 with a budget of
4.5 billion KRW (3.78 million USD) and the MOF’s aquaculture expertise, the
project is expected to restore habitats rich in organic matter through
mangrove rehabilitation and create synergy with shellfish farming. More specifically, through the
project, the MOF will modernise aging seed production facilities and idle
aquaculture sites in northern Vietnam as well as dispatch Korean aquaculture
experts to the region for technology transfer and capacity-building
education. These measures are expected to
revitalise aqua farming in the region and raise income levels in local
communities. Project to upgrade rice value
chain in Red River Delta launched in Thai Binh A ground breaking ceremony for a
project to upgrade rice value chain in Vietnam’s Red River Delta was held in
the northern province of Thai Binh on February 21. The event was jointly held by the
Ministry of Agriculture, Food and Rural Affairs of the Republic of Korea
(RoK) and the Ministry of Agriculture and Rural Development of Vietnam. The project, part of a new framework
on agricultural development cooperation between Vietnam and the RoK, will be
carried out in Thai Binh, Nam Dinh and Hung Yen provinces until 2024. The project will be rolled out with a
non-refundable assistance worth 5 billion KRW (over 4.5 million USD) provided
by the RoK government through its agriculture ministry. Farm exports boom in new year Farm exports to difficult markets like
Japan, South Korea, Australia, and the EU have been prolific in the first two
months of this year, raising hopes for a successful year. Pham Thai Binh, general director of
Trung An Hi-tech Agriculture Joint Stock Company in Can Tho City, said his
company has fulfilled five orders for nearly 1,000 tonnes of fragrant rice
from Germany, Malaysia and Qatar. Loc Troi Agriculture Products JSC, a
subsidiary of Loc Troi Group, has exported more than 4,500 tonnes of
fragrant, white, brown, and glutinous rice varieties worth US$3 million to
Europe, the US, the Middle East, and Asia. Nguyen Van Thu, director of GC Food
Company in Dong Nai Province, said his firm shipped a container of aloe vera
and coconut jelly on February 7. His company’s exports have increased
by 30 per cent in the first two months of 2022 and it has many more export
orders to markets like Japan, Korea and Southeast Asia, he said. It targets exports of VND350 billion
(US$15.2 million) this year, up 67 per cent from 2021. General secretary of the Viet Nam
Fruit and Vegetable Association, Dang Phuc Nguyen, said in January exports of
vegetables and fruits to key markets such as Japan, Korea, Russia, Australia,
the Netherlands and the US grew by 12-69 per cent. Vietnamese firms are familiar with the
quality and other requirements in these markets, which has helped increase
exports significantly, he added. With the forecast being that in 2022
the Covid-19 epidemic will be full controlled and the global economy will
recover, GC Food has invested in modern production lines to double its total
capacity to 35,000 tonnes of products a year, Thu added. Proposed amendments to
e-commerce tax declaration and payment The Ministry of Finance is seeking
comments on a new draft decree that provides amendments to Decree No 126 on
tax administration and Decree No 123 on invoices. According to the new draft, e-commerce
platform owners must declare and pay tax on behalf of individual sellers for
goods and services sold on their platform online. For goods and services not sold
online, the owner must declare and pay tax on behalf of individual sellers,
under their authorisation. The owner is also required to disclose
information to tax authorities of traders, organisations and individuals, who
have made transactions on their platform. The information includes the sellers’
names, tax codes, IDs, addresses, phone numbers, and sales revenues of goods
and services sold online. People can make their comments on the
draft via the ministry's online portal. Three large-scale expressway
projects soon to be constructed Investment preparations are in full
swing from the government, relevant ministries, and sectors, regarding
highway construction projects during the next five years, focusing on three
massive expressway projects undertaken by the Ministry of Transport between
Bien Hoa-Vung Tau, Khanh Hoa-Buon Ma Thuot, and Chau Doc-Can Tho-Soc
Trang-Tran De. The prime minister has signed two decisions
on founding State Appraisal Council to appraise the pre-feasibility study
reports of two expressway projects, namely the ones between Bien Hoa and Vung
Tau and Khanh Hoa and Buon Ma Thuot based on proposals from Minister of
Planning and Investment Nguyen Chi Dung. On February 10, Minister of Transport
Nguyen Van The had proposed the PM and the National Assembly (NA) decide on
investment policies of the three expressways to create a key driving force
for development in the southeast region, the Central Highlands, and the
Mekong Delta. Earlier this month, at an online
meeting on the preparation for investments in the expressways, Deputy Prime
Minister Le Van Thanh assigned the Ministry of Planning and Investment to
submit proposals to the PM on the establishment of the State Appraisal
Council before February 16. For the Chau Doc-Can Tho-Soc
Trang-Tran De expressway, the State Appraisal Council was established under
Decision No.1456/QD-TTg from last September. The Bien Hoa-Vung Tau expressway has
an estimated length of 53.7km. To ensure investment efficiency, phase 1
involves building 4-6 lanes, with a designed speed of 100kmh. Total
investment value in phase 1 is about $775 million. The Khanh Hoa-Buon Ma Thuot expressway
will be 117.5km long. Total investment value stands at $953 million. The Chau Doc-Can Tho-Soc Trang-Tran De
expressway will have a length of 188.2km. In phase 1, the project will have
four lanes with a designed speed of 80kmh. Total investment value in this
period is calculated at $1.92 billion. Inflation forecast to be
under control at under 4% this year Despite the soaring prices of input
materials, including fuel and construction steel, inflation will be well
controlled and stand at under 4% this year, said Nguyen Thu Oanh, director of
the Price Statistics Department under the General Statistics Office. The consumer price index (CPI) in
January increased by 1.94% year-on-year, posing a potential surge in
inflation in 2022, Oanh said, adding that during the first months of the
year, the prices of goods in several countries soared, negatively impacting
domestic prices. However, with the Government’s
experience in controlling inflation over the past many years and the
effective collaboration between departments, agencies, cities and provinces,
this year’s inflation will still be under control at under 4% as targeted by
the National Assembly, according to Oanh. Can Tho seeks VND300b from
central budget for three projects The government of Can Tho has proposed
the central government allocate an additional VND300 billion to implement
three projects in the city this year. In a proposal recently sent to the
Ministry of Planning and Investment, the municipal government said Can Tho
would be allocated over VND2.7 trillion from the central budget for 2022
under the Prime Minister’s decision issued in December last year. Of the
amount, domestic capital accounts for over VND1.157 trillion, reported Tien
Phong newspaper. In the first project, the city will
build and expand the provincial road No.917. For the second project, it will
implement the provincial road No.918. The city was allocated VND100 billion
for each project and proposed an additional VND100 billion for each. As for the third project, it was
allocated nearly VND111 billion and proposed an additional allocation of
VND100 billion to build the provincial road No.921. Over VND6 trillion needed for
Cao Lanh-An Huu expressway The Cao Lanh-An Huu expressway project
linking Tien Giang and Dong Thap provinces in the Mekong Delta region will
require over VND6 trillion in investment funded from the State budget,
according to a prefeasibility study report of the project submitted to the
prime minister by the Ministry of Transport. The 30-kilometer expressway, part of
the Hong Ngu-Tra Vinh expressway, which is 188 kilometers long, will have
four lanes, the local media reported. The ministry proposed beginning site
clearance and resettlement processes in the 2022-2023 period, breaking ground
for the expressway in 2023 and putting it into operation in 2026. The project will comprise two
subprojects, with the first section 18.2 kilometers in length in Dong Thap
Province and the other over nine kilometers in length in Tien Giang Province. BOT toll stations nationwide
witnessing revenue reduction The Directorate for Road of Vietnam
(DRVN) has just announced that the income from BOT toll stations in 2021 only
reached VND11,000 billion (US$482 million), a considerable decreased compared
to the previous years. Accordingly, the 54 BOT projects
managed by the Transport Ministry last year earned the respective quarterly
revenues of over VND3,300 billion ($144.7 million), VND3,140 billion ($137.7
million), VND1,700 billion ($74.5 million), and VND3,000 billion ($131.6
million). The yearly income of $482 million was
a significant drop compared to 2020 (at VND12,500 billion - $548.1 million)
and 2019 (at VND13,500 billion - $592 million). The main reason lies in the severe
impact of the Covid-19 pandemic, leading to a great reduction of vehicles
using the roads, especially during the social distance time. In addition, BOT project businesses
had to reduce toll for certain subjects as regulated by the current law. For
example, DRVN has lately requested BOT project enterprises to decrease the
VAT tax to 8 percent in accordance with Decree No.15/2022/ND-CP, issued by
the Government on January 28, 2022. First foreign packaging
solutions company enhances nascent recycling industry in Viet Nam Tetra Pak, a Sweden-based food
processing and packaging solutions company, has become the first foreign
packaging solutions company investing in promoting the capacity of Viet Nam’s
nascent recycling industry. Accordingly, Tetra Pak will invest
€1.2 million in the installation of a €3.5 million-modern production line at
Dong Tien Packaging and Paper Company's recycling factory that separates
paper from used cartons in line with European technology standards, expected
to be completed in the fourth quarter of this year. The modern technology line for
separating paper from milk cartons is expected to almost double the factory's
capacity to reach 17,000 tons per year. The new line also enables the
production of premium recycled pulp that can be used to make products of high
commercial value, such as napkins, toilet paper, and office paper, thereby
helping to raise the commercial value of used cartons and income for collectors. Kien Giang expands
large-scale rice fields The Mekong delta province of Kien
Giang set up 20 large-scale rice fields with a total area of 1,600 hectares
last year, as part of its effort towards restructuring agricultural
production towards sustainability, and increasing quality and added value. According to Le Van Dung, deputy
director of the provincial Agriculture Extention Centre, it has supported the
building of 15 establishments that have met Vietnamese Good Agricultural
Practices (VietGAP) and Good Agricultural Practices (GlobalGAP) standards on
shrimp, rice, durian and mangosteen cultivation. An electronic system of
traceability using QR codes for 10 agricultural production chains for
production and businesses units, cooperatives and cooperative groups
certified with VietGAP standard was set up at the same time. The centre has also initiated three
programmes associated with the sale of rice including large-scale projects
meeting raw material region and responding to climate change on 4,800ha,
470ha for rice development and 220ha for organic rice farming. Once taking
part in the programmes, enterprises will coordinate with cooperatives and
cooperative groups in providing rice seeds and sale. Vietnam pins high hope on
export of phones, components The export of phones, which contribute
annually over 50 billion USD in the last three years, is expected to help
Vietnam expand its total export turnover by 6-8 percent in 2022. Phones and components reported the
largest export value the first months of 2022 with 4 billion USD, accounting
for 13.8 percent of the country’s total. Phones are exported to 50 countries
and territories worldwide, with China being the biggest importer. Last year, it recorded a two-digit
growth, hitting 58 billion USD, up 12.4 percent compared to 2020. China and the US were the biggest
importers of Vietnam’s phones in the year, spending 15.18 billion USD and
9.69 billion USD, respectively, posting year-on-year surges of 23 percent and
10.3 percent. Hard nuts to be cracked in
digital transformation in tourism The COVID-19 pandemic has posed big
challenges for almost all industries and fields, with tourism among those
suffering the heaviest. At the same time, due to the impact of the Fourth
Industrial Revolution, with changes in consumer habits, especially after the
COVID-19 outbreak, digital transformation has become an indispensable
requirement of the industry. The transformation of Vietnam's
tourism is said to have many barriers due to the uneven quality of workers,
low management capacity, and limited digital technology. In the coming time, in order to remove
those barriers, the industry must carry out effective solutions and overcome
limitations in terms of finance, human resources, policies, information
technology, organisation and management, and cooperation mechanisms. The top requirement of digital
transformation and development of tourism is to have good human resources, as
well as a large number of competent experts in information technology.
However, the current training system in Vietnam is still quite inadequate in
catching up with the trend of talent incubation and human resources
development in digital tourism. Another problem is differences in
digital technology between regions across the country. The areas having good
conditions for digital transformation in the tourism industry are mostly in
large cities and provinces. Experts say that Vietnam can learn
from international experience in building planning, synchronously developing
information infrastructure, the Internet of Things, and artificial
intelligence in a professional and modern direction, associated with the
tourism product value chain. In addition, Vietnam should focus on developing
smart cities along with tourism digital transformation infrastructure. Source:
VNA/SGT/VOV/VNN/SGGP/VGP/VNS/VIR |
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