Under-the-table fees still plague businesses, more transparency needed  Cập nhật lúc 14:46   The 2021 report on provincial competitiveness index (PCI) released by the Vietnam Chamber of Commerce and Industry (VCCI) on April 27 showed that unofficial fees are on the decrease, but remain common in some spheres of state management. The survey found that 41.4 percent of enterprises had to pay unofficial fees in 2021, lower than the 44.9 percent in 2020. This was the lowest level in the last 16 years. The amount of unofficial fees has also decreased: 4.1 percent of enterprises said they had to use 10 percent of revenue to pay this kind of fee, much lower than the 9.1 percent in 2016.  The number of enterprises paying unofficial fees to inspectors accounted for 20.9 percent, which meant a significant decrease from the 27.7 percent in 2020. The number of enterprises agreeing with the statement that paying ‘commission’ is necessary to have opportunities to win bids decreased from 40 percent to 36.8 percent in 2021. The number of enterprises paying unofficial fees to speed up land procedures fell from 32 percent in 2020 to 29.4 percent in 2021.  It is noteworthy that foreign invested enterprises (FIEs) said 41.9 percent of enterprises did not have to pay unofficial fees, a very encouraging figure, since 2010.  Nevertheless, enterprises still had to pay very high fees in some fields. Harassment by state agencies when enterprises follow administrative procedures accounted for 57.4 percent in 2021, higher than the 54.1 percent in 2019-2020. The average proportion of enterprises paying unofficial fees in construction inspection activities was 67.22 percent. The figure was 61.36 percent in granting licenses to enterprises in conditional business fields.  Paying unofficial fees on a small scale, or ‘petty corruption’, was still common and could be seen in two types. First, the ‘lubricating fee’ in essential public services such as business registration and land access. Second, the unofficial fees in market management, environment inspection, taxation, fire prevention and fighting inspection, land inspection and business registration inspection. As for FIEs, 5 percent of enterprises said they had to use 5-10 percent of revenue to pay unofficial fees, while the figure was just 2.1 percent in 2020. The figures are very high in some fields, such as import-export procedures (38.9 percent), examination and inspection (25.4 percent) and land procedures (21.1 percent). The unofficial cost for land procedures of FIEs in 2021 increased sharply compared with the 10.3 percent in 2020. The figure is consistent with the increase in percentage of enterprises complaining about troubles when following procedures related to land in the PCI report.  Up to 60.4 percent of enterprises said their work is solved after paying unofficial fees. This means that the predictability of work results when paying under-the-table money has increased significantly.  The benefit of this is that enterprises can predict the amount of under-the-table money they have to pay, while the serious consequence is that paying that kind of money has become common.  Vietnam enterprises’ competitiveness  Economists all said that unofficial fees are a heavy burden on businesses, affecting competitiveness of Vietnam’s enterprises. As the fees are taken into account when defining production costs, the selling prices of products are high and less competitive.  In order to legalize unofficial fees, enterprises have to pay more money, which results in fraud in business, such as trading invoices and dishonest finance and tax reports.  According to Dau Anh Tuan, Head of the Legal Department of VCCI, the production costs of Vietnam’s products are competitive if compared with other countries. However, because of unofficial fees for administrative procedures, Vietnam’s products are less competitive. So, the impact of unofficial fees is clear.  Unofficial fees not only lead to high compliance costs, but also make the business environment less healthy and less competitive, deterring enterprises that want fair competition. The major reason behind this, according to Tuan, is the low quality of the institutional system and legal documents. Unclear, unreasonable, complicated and unpredictable administrative procedures give opportunities to agencies and officers to harass enterprises and demand unofficial fees.  The survey on unofficial fees shows that space for reform remains and Vietnam still has a long path to go to minimize unofficial fees.  In order to eliminate unofficial costs, it is necessary to make all procedures public and transparent, and to put e-government into operation soon.   VNN

 

VIETNAM BUSINESS NEWS APRIL 28 Cập nhật lúc 14:38 Animal feed exports to the US rise sharply Vietnamese exports of animal feed and related materials to the United States reached US$12.29 million in March, a rise of 37% on-month and an annual increase of 30%. According to details given by the Ministry of Industry and Trade, the US is currently Vietnam’s third largest consumption market. In the first quarter of the year, animal feed export turnover to the US hit US$31.22 million, marking a climb of 31.9% compared to the same period from last year and accounting for 11.5% of Vietnam’s total export value of the products. Statistics compiled by the General Department of Vietnam Customs indicate that Vietnamese animal feed export turnover in Q1 rose 35.5% year on year to US$272.55 million. China was Vietnam’s largest consumption market in the reviewed period, spending US$125.16 million on importing its animal feed, up 140.8% year on year. It was followed by Cambodia that imported US$31.88 million worth of animal feed from Vietnam, a drop of 5.3%. Over 1.28 billion USD in FDI channeled into HCM City in 4 months Ho Chi Minh City lured 1.28 billion USD worth of foreign investment in the first fourth months of 2022, an annual rise of 12.18 percent, reported the municipal Department of Planning and Investment. Of the total, 186.25 million USD was injected into 181 new projects, up 81 percent in quantity but down 48.28 percent in value compared to the same period last year. Meanwhile, 640.42 million USD was added to 44 existing projects, annual increases of 58.91 percent and 46.67 percent, respectively. The lion’s share of the capital went to the fields of information-communications (51.48 percent), wholesale-retail and auto/motorbike repair (23.25 percent), and finance, banking and insurance (11.84 percent). Singapore was the biggest investor in HCM City during the period with its investment accounting for 51.95 percent of the total, followed by Japan and the Republic of Korea. Additionally, municipal authorities also recorded capital contributions and share purchases in 722 transactions totaling 453.04 million USD, up 31.99 and 19.97 percent annually, respectively. European businesses more positive about investing in Vietnam European business confidence in Vietnam’s investment environment continued to rise at the start of 2022, according to the website Fibre2Fashion.com. The website cited the business climate index (BCI) from the European Chamber of Commerce in Vietnam (EuroCham) conducted by YouGov as showing that for the first quarter of 2022, the index climbed to 73 points, once again reaching its highest point after the fourth wave of the pandemic. This is a 12-point increase compared to the fourth quarter of 2021, in addition to nearly 58 points of growth compared to the third quarter, with business leaders now more upbeat after the relaxation of Vietnam’s pandemic-related restrictions and the continued acceleration of its economic development, EuroCham Vietnam said in a press release. European business leaders are generally showing increasingly improving attitudes towards the prospective growth of Vietnam’s economy as well. More than two-thirds of respondents now believe that the Vietnamese economy is more likely to stabilise and improve in the second quarter of 2022, compared to 58 percent who held this view in the fourth quarter of 2021. European business stakeholders also indicated ambitious second quarter projections for their companies, especially when compared to projections made for the first quarter. Nearly 66 per cent of respondents are expecting increased revenue for the second quarter of the year, compared to 52 percent three months earlier. Likewise, more than 46 percent of respondents are forecasting headcount increases for next quarter. The BCI is a regular barometer of European business leaders and investors. This research was first conducted in 2013 and has been carried out by YouGov since 2020. US extends deadline for issuing conclusion on anti-dumping probe into plywood imported from Vietnam The US Department of Commerce (DOC) has announced the extension of deadline for issuing the final conclusion on the anti-dumping and anti-subsidy tax evasion investigation into hardwood plywood imported from Vietnam, according to the Ministry of Industry and Trade (MoIT). Accordingly, the DOC plans to issue the conclusion on October 17 instead of April 20. This is the third extension that the DOC has made on the case, which was launched on June 17, 2020 following a request by the US Customs and Border Protection (CBP). The MoIT said that the purpose of the investigation is to ensure the efficiency of trade remedies imposed on hardwood plywood of China.   Therefore, in case Vietnam's plywood manufacturers and exporters can prove that they are not evading the trade remedy measures the US is applying to China, they will not be subject to the anti-subsidy tax rates. Vietnam attends Seafood Expo Global 2022 in Spain Up to 28 Vietnamese firms, including nine pangasuis exporters, are currently attending the ongoing Seafood Expo Global 2022 in Spain. As the world's leading seafood trade event, the April 26-28 expo has attracted the participation of distributors, retailers, reporters, and buyers from hundreds of countries around the globe. The expo is expected to create a golden opportunity for Vietnamese pangasuis firms to break into both the Spanish and EU markets, particularly as demand for seafood products grows exponentially. Tra export value to Spain reached US$4.9 million in the first quarter of the year, recording annual growth of 67.5%, according to figures given to the Vietnam Association of Seafood Exporters and Producers (VASEP). Spain is the fourth largest Vietnamese pangasius export market in the EU. In the first quarter of the year, there were roughly 20 Vietnamese enterprises exporting this type of fish to the market. Vietnam poised to host first international property festival in Sept. An international property festival, the first of its kind in Vietnam, is set to get underway at the Saigon Exhibition and Convention Centre in Ho Chi Minh City from September 28 to October 2. Speaking at a press conference in Ho Chi Minh City on April 26, Pham Minh Toan, head of the organising board, noted the festival provides a forum for managers to share their experience in planning, investment, construction, service management, and human resource training in the field of real estate. Furthermore, businesses will have the opportunity to introduce real estate projects, provide investment consulting, and attract financiers, with a specific focus on such areas as social housing and industrial real estate. Most notably, the festival will help investors to expand their co-operation relationship, effectively mobilise foreign investment capital into Vietnamese real estate and vice versa, Toan said. This festival will also seek to contribute to the implementation of the 10-year socio-economic development strategy towards 2030 and the national housing development strategy for 2021 - 2030 with a vision towards 2045, especially the post-pandemic economic recovery period. Positive outlook ahead for squid and octopus exports in Q2 Following positive results recorded in the first quarter of the year, Vietnamese squid and octopus exports are anticipated to maintain their strong growth momentum moving forward, according to forecasts made by the General Department of Vietnam Customs. Throughout the reviewed period, local exports of squid and octopus surged by 35% to reach over US$156 million against the same period from last year. As a result, the export value of squid and octopus increased by 40% and 29% compared to last year’s corresponding year, respectively, with the export value of processed squid soaring by up to 99%. The largest importers of local squid and octopus include the Republic of Korea (RoK), Japan, China, Hong Kong (China), Thailand, the EU, the United States, Malaysia, Taiwan (China), and Israel, accounting for 98.4% of the total export value. Furthermore, exports of the products to China and Hong Kong (China) in the reviewed period enjoyed robust growth of 143%, while exports to Japan, the Republic of Korea, and the EU increased by 50%, 16%, and 47% respectively. Elsewhere, exports to Thailand endured a slight decrease of 0.4%. At present, the RoK remains the largest consumer of Vietnamese squid and octopus, making up 35% of the total export value with exports to the market expanding by 16% to reach over US$55 million in the first quarter of the year. Japan ranks second for importing squid and octopus from the nation, accounting for 23% of total export value. Exports of squid and octopus to the demanding market rose by 50% to US$36 million against the same period from last year, with the export value of processed octopus skyrocketing by 151%. Hanoi tourism gift expo 2022 to feature 100 stalls A 100-booth tourism gift trade fair of Hanoi is scheduled to run from April 29 to May 1 at the pedestrian street around Hoan Kiem Lake, as part of the efforts to revive the local tourism and activities to welcome the 31st Southeast Asian Games (SEA Games 31). According to the municipal Tourism Department, the event features different spaces for visitors to discover craft village culture, art, travel photos, and local products. Attendees will be treated to performances of graffiti art, flashmob, acoustic music, and skateboarding, as well as a cycle rickshaw ride around the lake. Other highlights of the fair include talk shows involving ca tru (ceremonial singing) performers and artisans of water puppet and paper fan; a coffee tasting event; hands-on experience activities of making children toys; and a photo exhibition on Hanoi. HCM City’s economy stages vigorous recovery Speaking at the meeting on April 26, Director of the municipal Department of Planning and Investment Le Thi Huynh Mai said the city’s Index of Industrial Production (IIP) in April expanded some 2 percent from the previous month and 9.7 percent year-on-year. Its total retail sales of goods and services also jumped 3.2 percent month-on-month and 6.2 percent year-on-year. Lodging and catering services increased more than 12 percent and travel services grew over 18 percent as compared with March. In the first four months of this year, the southern economic hub’s budget collection was over 168.77 trillion VND (7.34 billion USD), fulfilling 43.51 percent of the estimate for the whole year and up 13.87 percent year-on-year. Its IPP increased 2.6 percent during the four-month period, of which the four main sectors of food processing, pharmaceutical chemicals-rubber-plastic, mechanical engineering, and electronics rose some 6 percent against the corresponding time last year. Despite difficulties caused by the COVID-19 pandemic, a number of FDI firms are seeking local suppliers, which will be a good opportunity for enterprises operating in support industries to further integrate into the global supply chain and improve their competitiveness, a representative from the municipal Department of Planning and Investment said. Notably, outcomes in pandemic containment and economic recovery have helped warm up the tourism market, with foreign tourists in April increasing 100 percent year-on-year to 114,728. The city earned around 8.76 trillion VND from tourism, a year-on-year rise of 26.7 percent. Binh Thuan selected to host Visit Vietnam Year 2023 The southcentral province of Binh Thuan will host the Visit Vietnam Year 2023. Minister of Culture, Sports and Tourism Nguyen Van Hung announced this on April 26 during his working session with provincial leaders in Hanoi. Chairman of the provincial People's Committee Le Tuan Phong said that Binh Thuan has brought into full play its advantages to develop attractive tourism products and strived to build Binh Thuan tourism brand associated with international events with its own characteristics. Over the recent years, Binh Thuan has successfully organised international events and is forming a national marine sport tourism centre. In October 2021, the provincial Party Committee issued Resolution 06 on tourism development to 2025, with a vision to 2030, aiming at promoting potential and advantages to develop tourism into a spearhead economic sector, and identify it as one of the three economic development pillars of the province. Binh Thuan is prioritising the development of professional, sustainable and safe tourism, in association with the protection of the environment, preservation and promotion of the cultural identities and traditions of the nation. The locality currently counts nearly 600 operating accommodation facilities with 17,587 rooms. Moody's upgrades SeABank's basic credit assessment Moody's announced it would raise the baseline credit assessment (BCA) from B2 to B1 for Southeast Asia Commercial JS Bank (SeABank) in the 2022 rating review period. At the same time, Moody's continues to keep SeABank's issuer and long-term deposit rating at B1 for the fourth consecutive year with a positive development outlook. Moody's upgrade of BCA to B1 reflects the marked improvement of the bank's intrinsic strength in asset quality, profitability and capital. The assignment is proof of the efforts of the bank in maintaining stable business operations, improving asset quality, profitability and capital last year with outstanding business results. Its pre-tax profit reached more than 3.27 trillion VND (142.2 million USD), a year-on-year growth of 89 percent, and completed 135 percent of its plan. Total assets reached more than 211.66 trillion VND, up 18 percent. Ca Mau Airport upgrade may need over VND100 billion The Civil Aviation Authority of Vietnam (CAAV) has just proposed a plan to upgrade the Ca Mau Airport which may need VND100 billion (USD4.56 million) in funding. In a report recently sent to the Ministry of Transport, CAAV said that Ca Mau Airport now has a 1,500-metre-long runway, a taxiway and plane parking area with two slots. The airport can now only serve the ATR 72-500, AN-2, MIA-17, King Air B200 and similar planes. Only VASCO currently operates these models. The ATR 72-500 is already being used for the direct Ca Mau-HCM City flights. According to CAAV, Bamboo Airways has proposed to operate the Embraer 190 plane from Ca Mau Airport to Hanoi and HCM City. To serve that plane, it is necessary to upgrade the runway, taxiway, and parking area at the airport, which is estimated to take two and a half months and cost VND105 billion. Ca Mau Airport functions as both a commercial and military facility. Ca Mau Provincial People's Committee previously proposed to the PM to approve the decision to upgrade Ca Mau Airport in the 2021 to 2025 period and create favourable conditions for airlines to invest, open new air routes and encourage healthy competition. VIB posts pre-tax profit of nearly $100 million in Q1 Vietnam International Bank (VIB) has announced its pre-tax profit of nearly $100 billion in the first quarter, up 26 per cent on-year. VIB attributed its impressive increase in profit to its focus on a high-quality retail credit portfolio with retail loans accounting for nearly 90 per cent and 95 per cent of them being covered by collateral. The bank’s return on equity ratio was 30 per cent, among the highest in the banking industry during the period. Over the three months, VIB saw its total operating income surpass $178 million. Net interest income reached $152 million, marking an annual jump of 27 per cent, while non-interest income hit just over $28 million, contributing 16 per cent to the bank’s total operating income. More depositors save idle cash thanks to increases in savings interest rates Thanks to increases in savings interest rates, people have deposited more into their savings accounts, said the State Bank of Vietnam branch in Ho Chi Minh City. According to the state bank, deposits at banks increased in the first four months of 2022. The total capital mobilization of banks in the city is estimated to increase by 2.74 percent compared to the end of 2021 including deposits of individual customers surging by 3.26 percent.  This capital mobilization rate is higher than that during the same period in the last two years. Specifically, it increased by 1.25 percent in 2020 and by 0.13 percent in 2021 respectively. According to the State Bank’s information, people's idle cash is returning to the banking system. Specifically, deposit growth in the first two months of 2022 increased to reach more than VND159,600 billion, higher than the number in the whole year of 2021 with more than VND158,600 billion. Experts attributed this year’s growth to banks’ application of deposit interest rate hike programs to attract depositors; plus, banks offered many preferential programs to attract idle cash. HCMC opens two key road projects, seeks to ease traffic congestion HCMC held inauguration ceremonies this morning, 26 April, for its two key traffic projects: a road parallel to Vo Van Kiet Boulevard in District 1 and Dang Thuc Vinh Street in the outlying district of Hoc Mon. The upgrade of Dang Thuc Vinh Street, also known as Provincial Road No.9, cost around VND700 billion. The 5.3-kilometer road was widened from seven to 30 meters. The road links HCMC’s outlying districts of Cu Chi and Hoc Mon with the neighboring provinces of Binh Duong and Long An. The road upgrade took four years to complete due to obstacles linked to site clearance and the Covid-19 pandemic. Regarding the road project parallel to Vo Van Kiet Boulevard, it required over VND70 billion in investment. It is a small-scale project but has a significant meaning, said Tran Quang Lam, director of the HCMC Transport Department. The route will help ease traffic congestion around the intersection of Ky Con and Vo Van Kiet streets. Further, it will help pave the way for the launch of a bus rapid transit route and a waterbus route in the area, the official added. The parallel route measures 615 meters long and is seven meters wide. It starts at Nguyen Thai Hoc Street and ends at Pasteur Street. Border trade set to resume as Quang Ninh reopens two border gates with China Bac Luan 2 and Hoanh Mo border gates in Quang Ninh Province resumed customs clearance today, April 26, after over two months of suspension. The government of Mong Cai City where Bac Luan 2 border gate is located said that customs clearance at Bac Luan 2 will undergo four phases, including handling backlogs stranded at monitoring areas, returning empty container trucks, clearing non-frozen goods and resuming normal operations. The plan was made by the Mong Cai City government and the authorities of Dongxing in China two days ago, the local media reported. The number of empty container trucks at parking lots in Mong Cai City is over 200, while Dongxing City has seen more than 200 trucks lying idle. It will take each of these empty trucks some 30 minutes for customs clearance. So, each day will see 20 trucks cleared, the Mong Cai customs sub-department said. As the pontoon bridge in the city has yet to reopen, some 300 trucks of frozen goods have been stranded. Similarly, the reopening of the Hoanh Mo border gate in Binh Lieu District is aimed at clearing empty trucks in parking lots on both sides – Vietnam and China. Binh Duong starts expansion of highway connecting with HCMC Binh Duong Province on April 26 broke ground on a project to add two more lanes to a section of National Highway 13 from HCMC to Binh Duong Province. Once in place, the 12.7-kilometer section will have eight lanes, helping ease traffic congestion and enhance connectivity between the two localities, the local media reported. The project, invested by Becamex IDC, also comprises some overpasses and tunnels at the Huu Nghi Boulevard and Binh Hoa, Hoa Lan, Phuoc Kien and Dinh Market intersections. The project will be executed under the build-operate-transfer format, with a total cost of nearly VND1.4 trillion. Corporate bond issuance in Vietnam declines sharply in Q1 Vietnam's total value of corporate bond issuance in the first quarter was estimated at VND45.3 trillion (US$1.97 billion), down 85% against the previous quarter but up 48.3% year-on-year, according to securities company VnDirect. Upon breaking down, private placement made up the majority of the issuance at 87%, with the remaining being proceeded via the public listing. VnDirect’s report noted a total of 40 companies issued corporate bonds of VND39.4 trillion ($1.7 billion) via private placement, up 67.2% year-on-year, but down 86% quarter-on-quarter. The biggest issuers among the lot were Tuong Khai Construction and Investment Company (VND6 trillion), Minh Truong Phu Construction (VND5.9 trillion), and Vietnam International Commercial Bank (VND4 trillion), and Eagle Side Development and Investment (VND3.4 trillion). Nearly VND6 trillion ($261 million) worth of corporate bonds was issued via public listing during the first quarter, down 15.7% year-on-year and 68.8% quarter-on-quarter, with names such as BIDV (VND2.2 trillion) and LienVietPostBank (VND1.7 trillion). VnDirect noted there has been a declining trend in corporate bond issuance via private placement, with the figures decreasing from VND27 trillion in January to VND8.2 trillion in February and VND4.1 trillion in March. Real estate companies continue to make up the largest portion of bond issuance with 40.2% of the total value in the first quarter, or VND15.8 trillion, up 25.2% year-on-year but down 86.5% quarter on quarter. The construction and finance-banking sectors claimed the second and third spots with 34.8% and 18.8% respectively. Vietnam’s target of becoming cybersecurity powerhouse is feasible: Experts It is feasible for Vietnam to master core products under a completed cybersecurity system to ensure the country’s safety in cyberspace. The view was shared among experts attending a conference held on April 25, discussing solutions to protect Vietnam’s cybersecurity amid growing risks of digital conflicts in the world. Trinh Ngoc Minh, vice chairman of the Vietnam Information Security Association - Southern Branch, noted for the country to become a cybersecurity powerhouse, it would need to address issues relating to investment capital, the number of technological products, domestically developed solutions, and qualified cyber security experts. In addition to the growing IT sector in Vietnam, the Government has been focusing on cybersecurity by offering incentives for “Make in Vietnam” cybersecurity products. The Ministry of Information and Communications (MIC) has proposed that 10% of the budget of any IT project should be allocated to cybersecurity. Southeast Asia’s 1st NFT trading platform launched in VN A non-fungible token trading platform, OpenLive NFT Marketplace, was inaugurated in HCM City on Monday. Developed under the OpenLive project, it is the first digital technology platform in Southeast Asia to exchange, buy and sell NFT assets. OpenLive is not just an NFT digital asset trading platform, but will also help conserve Việt Nam’s cultural heritage as blockchain digital technology helps to convert works of art into digital assets that are unique and belong to only one owner on the internet. There, the digital works will be kept and preserved forever. Trung Luong-My Thuan Expressway inaugurated The VND12 trillion Trung Luong-My Thuan Expressway was inaugurated today, April 27, after 13 long years of construction, and will be officially opened to traffic three days later to coincide with the celebration of Vietnam’s Reunification Day (April 30). The 51.5-kilometer expressway, which starts at the HCMC-Trung Luong Expressway and ends at the An Thai Trung Intersection in Tien Giang Province’s Cai Be District, is 98% complete, a senior authority of Trung Luong-My Thuan BOT JSC said. The surface of the road, 53 bridges along the route, bypasses, interchanges, overpasses, and lighting and traffic systems have been completed. Two main tollgates and three sub-tollgates are under construction. After the expressway is completed, road users will pay no toll fee for two months. The relevant agencies will later assess the quality and the operation of the road. The Trung Luong-My Thuan Expressway is 16 meters wide with four lanes. In the future, the expressway will be expanded to six lanes, including two emergency lanes. Flight fares up by 30 percent for domestic travel, bus tickets sold out Flight fares are up by 30 percent for domestic travel compared to prior while transport operators announced bus tickets have been sold out for the upcoming national holidays. Airlines announced airfare for the routes from Ho Chi Minh City to Buon Ma Thuot City in the Central Highlands Province of Dak Lak, Hanoi increased by 30 percent for upcoming national holidays. Moreover, ticket prices will increase 1.5-2 times compared to weekdays if customers buy on April 30. Vietjet and Vietnam Airlines sold the one-way tickets on Ho Chi Minh City - Buon Ma Thuot route on the morning of April 27 at more than VND1.1 million- VND1.9 million per passenger. Similarly, flight prices for some routes from Ho Chi Minh City to Hanoi range from VND2 million to VND3, 1 million per person, departing at noon or night of April 27 and departing at dawn on April 28. Those who book tickets on the Ho Chi Minh City - Buon Ma Thuot route on April 30 will pay almost double the sum compared to weekdays, ranging from VND1.5 million to nearly VND1.7 million a person. National carrier Vietnam Airlines announced from now until May 4, the airline will focus on increasing flights on eight key tourist routes, including those from the capital city of Hanoi to the Central Province of Thua Thien - Hue, the Central City of Da Nang, Cam Ranh District in the South-Central Province of Khanh Hoa, the Central Highlands city of Da Lat, the Mekong Delta Province of Kien Giang’s Phu Quoc island and from  Ho Chi Minh City to Da Nang, Cam Ranh, Phu Quoc. In the latest increase, the airline added more than 255 flights, equivalent to an increase of over 50,000 seats, bringing the total supply of the entire domestic and international network to nearly 2,700 flights and more than 524,000 seats from April 24 to May 4. Vietravel Airlines also said that 85 percent -100 percent of its flight seats from Ho Chi Minh City and Hanoi to tourist destinations such as Quy Nhon, Da Nang, and Phu Quoc have been filled during the peak season from April 27 to May 3. Budget overspending must not exceed VND240 trillion in 2022-2023: Govt The Government has set the budget overspending cap in 2022-2023 at 1%-1.2% of the country’s gross domestic product (GDP), not exceeding VND240 trillion. The Government Office has issued a statement on Deputy Prime Minister Le Minh Khai’s conclusions at a meeting to review funding sources for the socioeconomic recovery and development program, said local news reports. For fiscal policy, a maximum of VND176 trillion will go to the healthcare sector, the pandemic response, social welfare, support for enterprises and household businesses, infrastructure development and support for workers in paying home rentals. Monetary policy should be geared toward cutting interest rates by at least 0.5-1 percentage point to make more loans available in the economy. For businesses affected by COVID-19, their loans should be extended and interest rate cuts should be offered to them. More capital will be provided to the Vietnam Bank for Social Policies so that employers can borrow from the bank to pay salaries to their employees. The Government allowed the use of some VND5 trillion from the Vietnam Public-Utility Telecommunication Service Fund for the development of telecom infrastructure and the Internet and VND5 trillion for renewing technologies and incubating scientific and technological firms. US extends deadline for issuing conclusion on anti-dumping probe into plywood imported from Viet Nam       The US Department of Commerce (DOC) has announced the extension of the deadline for issuing a final conclusion on the anti-dumping and anti-subsidy tax evasion investigation into hardwood plywood imported from Viet Nam, according to the Ministry of Industry and Trade (MoIT). Accordingly, the DOC plans to issue the conclusion on October 17 instead of April 20. This is the third extension that the DOC has made on the case, which was launched on June 17, 2020 following a request by the US Customs and Border Protection (CBP). The MoIT said that the purpose of the investigation is to ensure the efficiency of trade remedies imposed on hardwood plywood of China. Therefore, in case Viet Nam's plywood manufacturers and exporters can prove that they are not evading the trade remedy measures the US is applying to China, they will not be subject to the anti-subsidy tax rates. Hana Financial acquires 35 per cent stake in BIDV Securities       The South Korean financial group Hana Financial Investment (HFI) has acquired a 35 per cent stake in BIDV Securities (BSC) in the form of private placement with a total transaction value of nearly US$117 million. After completing the transaction, HFI and BSC will launch strategic cooperation projects to increase the value of BSC. Hana Financial Investment will support BIDV Securities Joint Stock Company to accelerate the digital transformation process and become a digital securities company in Viet Nam. HFI plans to help BSC improve the quality of brokerage services, expand the customer base through optimising the digital trading platform as well as expand its business into the field of fund management. This is expected to help BSC build a comprehensive ecosystem of financial products and services for sustainable development as well as maximising corporate value. Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes

 

VIETNAM BUSINESS NEWS APRIL 27  16:27                                    US extends deadline for issuing conclusion on anti-dumping probe into plywood imported from Vietnam  The US Department of Commerce (DOC) has announced the extension of deadline for issuing the final conclusion on the anti-dumping and anti-subsidy tax evasion investigation into hardwood plywood imported from Vietnam, according to the Ministry of Industry and Trade (MoIT). Accordingly, the DOC plans to issue the conclusion on October 17 instead of April 20. This is the third extension that the DOC has made on the case, which was launched on June 17, 2020 following a request by the US Customs and Border Protection (CBP). The MoIT said that the purpose of the investigation is to ensure the efficiency of trade remedies imposed on hardwood plywood of China. Therefore, in case Vietnam's plywood manufacturers and exporters can prove that they are not evading the trade remedy measures the US is applying to China, they will not be subject to the anti-subsidy tax rates. Korean financiers eye greater investment in Hai Phong Investors from the Republic of Korea (RoK) have developed a greater presence in multiple fields in the northern port city of Hai Phong, including garments and textiles, electronics, automobiles, finance and banking. Most notably, the majority of investment projects in industrial parks and zones come from the world's leading technology corporations such as LG, Heesung, Ohsung, and Woosung. Le Trung Kien, head of the Hai Phong Economic Zone Authority (HEZA), said that among the RoK investors pouring capital into Hai Phong, the most prominent one is LG Group which has seven projects capitalised at US$7.24 billion, mainly operating in the fields of high-tech products such as audio-visual equipment, as well as mobile and home appliances. The total number of projects by LG group and supporting industry businesses have therefore contributed roughly 97% of the total FDI capital put in by RoK investors in industrial and economic zones in Hai Phong. Last year witnessed revenue from RoK-invested firms reach US$13.1 billion, while export turnover also hit US$13.59 billion. Skoda Auto of Czech Republic eyes Vietnam, ASEAN markets Skoda Auto, the leading automobile manufacturing of the Czech Republic, wants to invest in Vietnam to tap into a market of nearly 100 million consumers and to expand to Southeast Asia, said an executive of Skoda Auto. Petr Janeba, head of Sales China, Asia and Overseas of Skoda Auto, was speaking while receiving Vietnamese Ambassador to the Czech Republic Thai Xuan Dung and other officials of the Embassy at the manufacturer’s headquarters recently. Janeba said the Vietnamese market holds great potential, high growth prospects, friendly business and investment environment in line with Czech requirements for export markets. By investing in Vietnam, Skoda Auto wants to penetrate ASEAN - a lucrative, large market in Southeast Asia that boasts approximately 600 million consumers, he added. Skoda Auto has planned to seek a location in Vietnam to set up a production line. The group has since late 2021 sent a number of delegations to work with relevant Vietnamese ministries and agencies, as well as the administration of Quang Ninh province to explore the market and find partners. Early this year Skoda Auto unveiled a plan to develop a car factory in Quang Ninh, and if everything goes according to schedule, the first Skoda cars are expected to come out next year. VN's logistics must keep up with international standards There has been great pressure on Viet Nam's logistics industry to train, retrain and upgrade workers' knowledge as well as to keep up-to-date with international standards and measures, according to the Vietnam Logistics Business Association (VLA). In a recent survey by VLA, 59 per cent of businesses asked said they need to train their workers on modern quality management systems such as ISO 9001, ISO 14001, ISO 17025, HACCP, and ISO 22000. Meanwhile, industry experts have said it's high time Viet Nam established its own quality management system that is tailor-made to include small-and-medium-sized businesses, the country's infrastructure characteristics, means of transportation, and energy consumption. According to a report by World Bank, Viet Nam's logistics industry has made much progress in the last three decades. The country's criteria including customs, infrastructure, and logistical capacity have improved significantly. The Southeast Asian economy's Logistics Performance Index (LPI) ranked 3/10 among the bloc's member countries in 2018, after Singapore and Thailand. Binh Dinh extends coastal road Authorities in the southern province of Binh Dinh have started construction of a seven-kilometre coastal road that connects Hoai Nhon Town and Tam Quan Ward. The VND700 billion (USD30.43 million) road includes VND400 billion in funding from the state budget. The four-lane road is expected to be completed in two years. Thach Khe iron ore mining project awaits restart date The long-delayed Thach Khe iron ore mining and refining project is seeking the government's permission for resumption following a recent report sent by Vietnam Coal and Mineral Industries Group. The project that is financed by Thach Khe Iron JSC (TIC) has undergone a long period of careful research, appraisal, and approval by national and international councils as well as the government. Despite meeting the legal requirements, the Thach Khe iron ore mining and refining project has been stagnant for years. Commenting on the feasibility of the project, Pham Le Hung, chairman of the Board of Directors at Thang Long Mining and Trading Investment JSC, said that following the evaluation of local and foreign scientists, the project has adopted appropriate environmental protection measures to ensure safe and effective implementation. After shutting down, the project will leave a large freshwater lake with surrounding trees. The landscape is suitable for developing a park, a resort, and tourism. Once put into operation, the project will not only form a densely populated area but also promote services in the neighbourhood. This will create favourable conditions to develop other projects in the future. Hung noted the concerns of Ha Tinh People's Committee and the Ministry of Science and Technology about transporting iron ore from the Thach Khe iron ore mine to Vung Ang Port. They are afraid that this will place more pressure on the load capacity of the road, affecting the safety of people and other means of transportation. In the first phase, the project is planned to transport five million tonnes of iron ore per year. A 40-tonne truck will set off to make the journey every five minutes. A survey of the National Highway No.1A route through the Ben Thuy toll stations, Ha Tinh Bypass, and the Ngang Pass tunnel shows that there are currently less than 10 vehicles every five minutes. Regarding the consumption market, Hoa Phat Group has committed to buying all of the ore at market prices. This not only ensures efficient operation but also limits iron ore imports and foreign currency bleeding. Vietnam approves tax system reform strategy until 2030 Deputy Prime Minister Le Minh Khai has signed a decision on approving the tax system reform strategy until 2030 with the goal of streamlining tax management and expanding the tax base. Under the programme, Vietnam’s tax policy system will be perfected in line with international practices while meeting the resource requirements to implement the 2021-2030 socio-economic development strategy. The tax system will include the following: value added tax, special consumption tax, export-import tax, corporate income tax, personal income tax, natural resource tax, agricultural land use tax, non-agricultural land use tax, and environmental protection tax, along with other taxes and fees. With regards to tax management, Vietnam aims to raise the rate of taxpayers’ satisfaction with the service of tax agencies to at least 90% by 2025 and 95% by 2030. The rate of supporting taxpayers through electronic means is expected to reach 70% by 2025 and 90% by 2030. By 2030, the rate of tax filing and payment conducted electronically will reach at least 98% for enterprises and organisations and upwards of 90% for individuals. Vietnam will also create an integrated and centralised information system to meet all the demand of collecting, processing, storing and using data for tax management and providing online services for taxpayers. FLC Faros gets new board chairperson Nguyen Binh Phuong has been picked as new board chairwoman of FLC Faros Construction Joint Stock Company (ROS), replacing Huong Tran Kieu Dung who was arrested for alleged stock market manipulation. The 49-year-old took up the post of general director of FLC Faros on November 30, 2020. The company on April 21 announced its leadership shakeup. Le Tuan Hung, permanent deputy general director of the firm, was assigned to the post of deputy general director, while Tran The Anh replaced Hung as permanent deputy general director. Anh, aged 44, used to hold some senior positions in the FLC ecosystem, such as deputy general director of FLC Group, chairman of CFS Investment And Import Export Trading Joint Stock Company, and chairman of FLC Mining Investment & Asset Management Joint Stock Company. On April 8, Huong Tran Kieu Dung was prosecuted and detained for allegedly assisting the then FLC chairman Trinh Van Quyet with manipulating the stock market. Aside from serving as FLC Faros chairwoman, Dung was serving as permanent vice chairwoman of FLC Group and chairwoman of BOS Securities Corporation. Workers in HCMC find it hard to buy social homes Housing is increasingly unaffordable for low-income earners, while they find it hard to access social homes due to the complicated procedures for purchase and an undersupply. The demand for affordable homes is huge, but the number of such homes available remains small, Tran Thi Dieu Thuy, chairwoman of the HCMC Labor Federation, said at a meeting between the HCMC People’s Council and 500 female workers in the city on April 24. Huynh Thanh Khiet, deputy director of the HCMC Department of Construction, said that 10 groups of workers are entitled to social housing in line with the 2014 Housing Law. As State capital is limited, a majority of housing projects are funded by enterprises. As for non-State budget projects, the investors of these projects will be in charge of selecting the documents of house-buyers and transfer them to the municipal Department of Construction for consideration. Speaking at the meeting, Nguyen Thi Le, chairwoman of the HCMC People’s Council, said that the city should focus on developing social homes for laborers and add some 35,000 homes in the 2021-2025 period. Binh Duong to pour capital into construction project of Ring Belt No.3 The People’s Council of the Southeastern province of Binh Duong pledged to provide a state budget of 50 percent of the total investment capital to implement the construction project of a section running through the province of the Ring Belt No.3. The road is 76.34 kilometers long, including the 10.76-kilometer section running through Binh Duong Province, and passes HCMC and the provinces of Dong Nai and Long An. The project requires a total investment of nearly VND75.4 trillion VND (US$3.3 billion) which will be sourced from central and local budgets, including over US$24 trillion (US$1 billion) from HCMC’s budget. The Ring Road No. 3 project is expected to be kicked off in 2022 and completed in 2027, aiming at helping ease traffic jams in HCMC and connect with the southern key economic zone. Advertising activities in HCMC to be more strictly monitored The Standing Committee of Ho Chi Minh City People’s Council has just sent a formal document to the Standing Committee of HCMC People’s Committee regarding firmer management on advertising activities in the city. A recent survey in HCMC reveals inadequacies in the advertising field in the city. For instance, proper advertising planning has not been done yet. The management mechanisms between agencies, departments, and localities are not consistent, leading to ineffective monitoring, especially on post-checking work. The result is the content of certain advertisements does not observe the law (using foreign languages, content not in accordance with regulations, being unlicensed). Particularly, individuals and businesses find it challenging to register for an advertising permit due to loose cooperation among state agencies to fulfill the request. Advertising posters, panels sometimes violate regulations on size and encroach sidewalks or pedestrian-only ways, which negatively affects urban traffic. The address the above issues, the Standing Committee of HCMC People’s Committee is asked to direct related agencies and the local authorities of all districts, Thu Duc City to quickly complete their own advertising planning; develop a simple, detailed procedure for advertisement permit registration, with each agencies being responsible for a specific step; issue cooperative regulations among related agencies and departments in the city as to regularly checking advertising activities and strictly punishing any violations. The post-checking task must be done frequently, especially in the rainy season, to ensure safety. Finally, advertising activities on the Internet, on LED boards, and via SMS must be closely monitored. Six central provinces team up to promote tourism The central provinces of Phu Yen, Binh Dinh, Quang Ngai, Dak Lak, Gia Lai and Kon Tum have signed a joint cooperative program on tourism development. The signing ceremony took place on the sidelines of a recent tourism forum jointly hosted by the Kon Tum provincial People’s Committee and the Ministry of Culture, Sports and Tourism. The program aims to exploit potential tourism advantages of each locality; promote tourism development in a sustainable manner, contribute to job generation and improve people’s living standards. In addition, the Plan for Tourism Development in the Cambodia – Laos – Viet Nam Development Triangle Area for 2021-2025 with a vision towards 2030 was announced on this occasion. Under the three countries will cooperate to develop a common border area including five provinces of Viet Nam namely Dak Lak, Dak Nong, Gia Lai, Kon Tum, Binh Phuoc along with the provinces of Laos and Cambodia. The plan focuses on developing infrastructure, common tourism products, and trade. Ca Mau Airport upgrade may need over VND100 billion The Civil Aviation Authority of Vietnam (CAAV) has just proposed a plan to upgrade the Ca Mau Airport which may need VND100 billion (USD4.56 million) in funding. In a report recently sent to the Ministry of Transport, CAAV said that Ca Mau Airport now has a 1,500-metre-long runway, a taxiway and plane parking area with two slots. The airport can now only serve the ATR 72-500, AN-2, MIA-17, King Air B200 and similar planes. Only VASCO currently operates these models. The ATR 72-500 is already being used for the direct Ca Mau-HCM City flights. According to CAAV, Bamboo Airways has proposed to operate the Embraer 190 plane from Ca Mau Airport to Hanoi and HCM City. To serve that plane, it is necessary to upgrade the runway, taxiway, and parking area at the airport, which is estimated to take two and a half months and cost VND105 billion. Revitalizing tourism activities in post-pandemic era Minister of Culture, Sports and Tourism Nguyen Van Hung said that the ministry and localities have deployed various measures to activate tourism activities in post-pandemic perid. The minister praised the forum themed “Kon Tum Tourism – Potentials and Prospects for 2022”, serving to create favorable chances for travel companies to sign contracts on this field. Within the framework of the forum, Kon Tum introduced its tourism logo and slogan, and sign cooperation documents with other localities, associations, enterprises and investors. A hot air balloon festival is being held for the first time in the Central Highlands province of Kon Tum from April 23-24 to celebrate the 47th anniversary of the Liberation of the South and National Reunification (April 30). Over 412,000 square meters of floor area in Hanoi completed in Q1 During the first quarter of 2022, over 412,000 square meters of floor area, equivalent to 3,877 new apartments, have been built in Hanoi, according to a report from the municipal Department of Construction. These included 282,448 square meters of commercial housing projects, or 2,707 apartments, and 130,220 square meters of social housing ones, or 1,170 apartments. The city expects by late 2022 to complete one social housing project of 110,704 square meters, or 1,496 apartments, and 26 commercial projects with a combined floor area of 2.33 million square meters, equivalent to 13,724 apartments. In the coming time, the city would carry out a survey on the current housing status and map out a plan for housing development until 2030, with a vision for 2040, he added. For the 2021-2025 period, Hanoi plans to build 44 million square meters of housing to meet the growing demands of the public. Upon breaking down, social housing projects would make up 1.25 million square meters, other 560,000 square meters correspond to resettlement houses, while commercial housing totals 19.69 million square meters, and detached houses 22.5 million square meters. Vietnamese banks gain impressive business results in Q1 Many banks have reported large profits of up to trillions of Vietnamese dong in the first quarter of 2022 thanks to high earnings from services and bancassurance as well as good control of provision costs. Vietnam Prosperity Commercial Joint Stock Bank (VPBank) topped the list with profit nearly tripling over the same period last year to more than 11.1 trillion VND. The record high profit contributed to bringing the bank's equity to more than 95 trillion VND and capital adequacy ratio (CAR) to more than 15 percent. VPBank’s impressive profit was thanks to high income from service fees (26.5 percent) and notably from a bancassurance contract with AIA - which helped the bank increase its revenue from other activities nine times. Besides VPBank, three banks - Saigonbank, LienVietPostBank and PG Bank - also announced Q1 2022 financial statements with strong profit growth in the first quarter of the year. At Saigonbank, pre-tax profit reached more than 98 billion VND, up nearly 68 percent over the same period last year and fulfilled 52 percent of the annual plan thanks to all its business segments gaining positive results. Accordingly, Saigonbank’s net interest income surged by nearly 48 percent over the same period last year while service activities also increased by 11.6 percent. Notably, the bank's foreign exchange and other business activities grew strongly by 137 percent and 189.6 percent, respectively. LienVietPostBank’s pre-tax profit increased by 62 percent over the same period last year, reaching more than 1.79 trillion VND, in which net interest income grew by 40 percent due to the rising scale of retail lending and the interest recovery of loans restructured due to COVID-19. LienVietPostBank’s net profit from service activities increased by 34.4 percent to 217.4 billion VND thanks to services such as insurance, card and digital banking. Other business activities also brought the bank more than 191 billion VND in net profit, increasing many times over the same period. At other banks, though they have not yet announced their financial statements, Saigon Securities Incorporation (SSI) estimated more than ten banks gaining double-digit profit growth rates in Q1 2022. According to SSI, Saigon-Hanoi Commercial Joint Stock Bank (SHB) ranked second behind VPBank with an estimated profit growth of 92 percent to 3.2 trillion VND, thanks to the credit growth of 5 percent and deposit growth of 2.5 percent compared to the beginning of the year. The bank’s net interest margin (NIM) was estimated to remain stable. Saigon Thương Tín Commercial Joint Stock Bank (Sacombank) followed with an estimated rise of 40-50 percent, equivalent to a profit value of 1.4-1.5 trillion VND in Q1 2022, mainly from increases in operating income and good control of provisioning costs. The remaining banks with positive profit growth according to SSI’s report are Asia Commercial Joint Stock Bank (ACB), Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), HCM City Development Commercial Joint Stock Bank (HDBank), Military Commercial Joint Stock Bank (MB), Maritime Commercial Joint Stock Bank (MSB), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Tien Phong Commercial Joint Stock Bank (TPBank), Vietnam International Commercial Joint Stock Bank (VIB) and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank). The only bank that experienced a profit decline in SSI’s report is Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank). Accordingly, SSI believed although the credit and deposit growth rates of VietinBank by the end of Q1 2022 were estimated at high levels of 7 percent and 5 percent, respectively, compared to the beginning of the year, its pre-tax profit could be lower than the same period of 2021 due to the high comparison base. In addition, VietinBank’s fee revenue from the bancassurance deal with Manulife may not be recorded in Q1 2022. US among top consumers of Vietnamese agricultural products Vietnam remains the United States’ eighth largest export market for agricultural products and foodstuffs, said Benjamin Petlock, senior agricultural attaché of the US Consulate General in Ho Chi Minh City. The US trade official made the statement during a ceremony held on April 25 to mark the 17th anniversary of co-operation between the Saigon Professional Chefs Association under the HCM City Tourism Association (HTA) and the American Farm Bureau Federation. During the event, representatives from HTA highlighted the effective co-operation between the Saigon Professional Chefs Association and the American Farm Bureau Federation in helping local chefs seize upon the opportunities to experience and gain greater access to safe and abundant food sources from the US. The American Farm Bureau Federation has made an array of significant contribution to the development of the Vietnamese food and beverage industry (F&B), particularly as it has become one of the main sponsors for many events and culinary contests, according to HTA representatives. Currently, there is a huge diversity of American agricultural products on offer in the Vietnamese market, including beans, pork, beef, chicken, milk, dairy products, and seafood. US, Europe investors seek investment opportunities in Hue, Da Nang Businesses from the US and Europe have been seeking investment opportunities and cooperation in tourism, agriculture, energy, environment for green growth in Thua Thien Hue Province and Da Nang City, two key economic destinations and tourism hubs in central Viet Nam. While the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA), in partnership with the American Chamber of Commerce (AMCHAM) Da Nang, organised the ‘US Food and Beverage Showcase’ to promote US products to the Da Nang business community, Thua Thien Hue also hosted the Meet Green event with the participation of 70 businesses from the US last weekend. The F&B exhibition in Da Nang, which featured 21 exhibitors who are USDA Cooperators, state representatives, distributors, and manufacturers, was seen as an opportunity to expand the reach of US food products in a key hospitality market as international tourism resumes. The diverse exhibitors introduced a wide range of US products, including beef, pork, chicken, seafood, potatoes, cheese, raisins, pulses, soy products, apples and more to potential customers in the region. AMCHAM and Thua Thien Hue also agreed to boost ties between business from the US and the province to promote Hue as a key economic power in central Viet Nam. The cooperation deal will help businesses from the province approach technology, investment fund and advanced industries from the US and fund the trend of future green economic growth. Seafood processors urged to focus on sustainability According to Vietrade Deputy Director Le Hoang Tai, the EU has remained one of Viet Nam’s largest seafood importers for years. Taking effect from 2020, the EU-Viet Nam Free Trade Agreement (EVFTA) has provided Viet Nam with even broader access to the EU market, with all the tariffs on aquatic products eliminated in seven years. Viet Nam’s aquatic exports reached US$2.4 billion in the first quarter of 2022, up 40 per cent from last year. Shipments of tra fish to the EU totalled $28 million in the first two months of this year, up 76 per cent year-on-year, while those of shrimp hit $159 million, up 66 per cent, on the back of rebounding demand post-pandemic. Last year, Viet Nam exported over $1 billion worth of aquatic products to the EU, up 12 per cent against the previous year. The five biggest EU importers included the Netherlands, Germany, Belgium, Italy, and France, together accounting for 72 per cent of the total exports. At the two-day Viet Nam – EU Business Matching Webinar on Seafood Products 2022 co-hosted by the Viet Nam Trade Promotion Agency (Vietrade) and Trade Offices and Embassies of Viet Nam in EU member states ending on Tuesday, Tai expected through the webinar, the Vietnamese producers would have better understanding of the EU market and the partnership between the two sides to further accelerate the development of the fishery industry in Viet Nam. National Power Development Plan VIII paves way for renewable energy The National Power Development Plan for the 2021 - 2030 period, with a vision towards 2045 (PDP VIII) has taken into account the replacement of coal-fired power projects and those that are still pending, heard a meeting of the State Appraisal Council. Speaking at the meeting, held in Hanoi on April 26 under the chair of Deputy Prime Minister Le Van Thanh, Minister of Industry and Trade Nguyen Hong Dien said the plan also targets a balance in electricity generation between regions and encourages the development of other fuels like hydrogen and ammonia. Dr. Ngo Tuan Kiet, Director of the Vietnam Academy of Science and Technology, said data on wind power, both offshore and onshore, have been updated in the plan. However, the updated figures from international organisations are not enough and it still requires exclusive studies and assessments. With the inclusion of Prime Minister Pham Minh Chinh’s commitments at the 26th United Nations Climate Change Conference of the Parties (COP26), the plan has opened up opportunities for the development of wind power, especially offshore wind power, according to Associate Prof. Dr. Pham Hoang Luong. Deputy PM Thanh expressed his approval for assessments of the State Appraisal Council that PDP VIII has been prepared thoroughly and scientifically. The plan has also been sketched out in line with Resolution No. 55 of the Politburo on the national energy development strategy by 2030 with a vision towards 2045, he said. Under the plan, the national power capacity from now until 2030 would be 146,000 megawatts (MW), 35,000 MW less than the amount in the previous version, he said, noting that it aims to cut coal-fired power and increase renewable energy. Binh Duong calls for France’s investment to hi-tech projects Vice Chairman of the People’s Committee of Binh Duong southern province Nguyen Van Danh on April 26 presided over a virtual webinar which aims to promote investment from France. At the webinar, French firms were briefed on investment climate in Vietnam and Binh Duong, and viewpoints of French investors in the Vietnamese province. Relevant agencies fielded queries from those who are seeking investment chances in the province. Local authorities pledged to create favourable conditions for foreign investors, including those from France, and maintain regular dialogues with the business community at home and abroad to regulate policies conducive for the province’s development and legitimate benefits of the firms in a timely manner. PetroVietnam Camau Fertiliser JSC's after-tax profit sees 10-fold rise in Q1 The after-tax profit of the PetroVietnam Camau Fertiliser Joint Stock Company (PVCFC) in the first quarter of 2022 hit 1.51 trillion VND (65.73 million USD), representing a 10-fold rise from the same period last year, according to the company’s business report. The company produced 236,650 tonnes of urea and 26,400 tonnes of NPK fertiliser in the reviewed period, respectively. The surge was attributable to the rising global fertiliser prices, together with PVCFC's efforts in maintaining stable operations, reducing material consumption and seeking high-value export opportunities. Mong Cai international border gate reopens Bac Luan 2 border gate of Mong Cai international border gate in the northeastern province of Quang Ninh reopened on April 26 after a two-month halt due to the COVID-19 pandemic. Vietnamese and Chinese agencies helped handle procedures for hundreds of vehicles stranded in China’s Dongxing and Vietnam’s Mong Cai to return home. Import-export and migration activities at the border gate have resumed in tandem with COVID-19 prevention and control measures. On April 24, authorities of Mong Cai and Dongxing held talks discussing solutions to build safe COVID-19-free zones and resume operations at border gates and crossings, during which they reached an agreement to reopen the Bac Luan 2 border gate. Priority will be given to handling stranded commodities in supervised areas, returning vehicles without shipments, and resuming non-cold chain product trade. Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes