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