VIETNAM BUSINESS NEWS APRIL 4
16:40 Budget revenue from
foreign trade rises over 22 percent in Q1 This
is equivalent to 30.5 percent of the year’s target, according to the General
Department of Vietnam Customs. Also
in Q1, the customs sector coordinated with relevant agencies to uncover 3,706
violation cases involving over 1.28 trillion VND worth of goods, collecting
over 69.9 billion VND for the budget. Vietnam earns nearly 1 billion USD
from exporting animals, animal products Vietnam
earns nearly 1 billion USD from exporting animals and animal products each
year, according to the Ministry of Agriculture and Rural Development. At
present, animal products, milk and dairy products are being shipped to over
50 nations and territories, while processed chicken meat is available in
seven countries and is expected to be sold in many others as negotiations are
underway, and honey and bee products are being exported to 18 nations. Vietnam Int’l Travel Mart 2022
attracts 40,000 visitors The
Vietnam International Travel Mart (VITM) 2022 wrapped up in Hanoi on April 3,
drawing over 2,000 businesses and 40,000 visitors. Themed
“New normal – new opportunities for Vietnamese tourism, the event attracted
the participation of more than 500 firms from 52 provinces and cities
nationwide and six countries and territories, in a special context as the
tourism industry has experienced a two-year hiatus caused by the COVID-19
pandemic and is recovering after the country's full reopening of tourism
activities from March 15. As
many as 25 events were held in the framework of the four-day fair, including
a forum on Vietnam’s tourism recovery and a workshop on tourism human
resources development. Great progress reported in settlement
of suspected cashew nut scam in Italy As
of April 3, Vietnamese companies had recovered 12 out of 35 containers of
cashew nuts exported to Italy whose original documents was lost, a positive
progress thanks to great efforts and active support of relevant parties. The
office of Lawyer Davide Gallasso and colleagues said that Vietnamese
companies have regained the ownership of 9 containers of cashew nuts via
negotiations and confirmation with the buyer named in the documents that they
are in fact not related to the shipment. The
lawyers tried their best to work with an Italian company named on the
document, which then confirmed that it was not related to the above-mentioned
9 containers and had never purchased goods from Vietnam. Based
on that confirmation, Vietnamese businesses can change the bills of lading of
those 9 containers to sell to new buyers in a very short time, minimizing
losses. In
addition, Vietnamese businesses have also paid a guarantee for a shipping
company to bring three other containers back to Vietnam. Another
good news in the case is that so far, Vietnamese businesses have managed to
re-export 18 containers to the Netherlands and Turkey. The
lawyers has cooperated with the Vietnam Trade Office in Italy to connect with
reputable overseas Vietnamese businesses in Italy, Germany, the Czech
Republic, Austria, Belgium, and Hungary to help find new buyers in Europe.
Currently, a number of partners have shown interest and are considering
buying these goods. Layer
Gallasso recommended that when exporting goods, Vietnamese businesses should
choose safe payment methods, learn carefully about import partners, and
should be proactive in chartering means of transport to better control the
original documents and goods. According
to the Vietnam Cashew Association (Vinacas), through a Vietnamese broker,
several cashew nut exporters had signed contracts to export 100 containers of
the product to Italy, to be transported by international shipping lines
Cosco, YANGMING, HMM, and ONE to the ports of Genoa and La Spezia. The
sellers reported that there were changes made to the SWIFT code in the
documents of collection sent from Vietnamese banks to those allegedly
representing the importer in Turkey. The Turkish banks declared the buyer is
not their client and said they had sent back the documents. It is noteworthy
that those banks neither specified how they had sent back the documents nor
provided Vietnamese banks with bills of lading. Meanwhile,
after some documents of collection were sent to the buyer’s bank in Italy, the
Italian bank replied that it had received only copies of the bills of lading,
not the original versions, causing rising concerns among the exporters as the
whereabouts of the original documents remain unknown. Anyone with the
original documents can present them to the transporters for the release of
the goods. Property market to thrive in 2022 and
coming years: Vietnam Report Vietnam’s
real estate industry has developed along with the recovery of the economy
after the COVID-19 pandemic, and is forecast to see brighter and more
positive colours compared to 2021 and gradually return to the pre-pandemic
trajectory (in 2019), according to the Vietnam Report Joint Stock Company. The
growth of this industry in the near future is mainly thanks to companies’
restructuring of their operations and their recovery from the negative impact
of the pandemic, along with the support of stimulus packages. Under
the Government's economic incentives, interest rates remain low, the
disbursement of public investment is accelerated, foreign investment continue
to flow strongly into Vietnam, and remittances stay stable (except for those
from Russia and Ukraine). In
the short term, the Government's economic stimulus package, no matter which
area would benefit, will bring positive effects to the real estate market,
thanks to the improvement of people's purchasing power in general as well as
their future income expectations, according to the Vietnam Report. Vietnam
Report quoted Knight Frank's latest Prosperity report as saying that in the
next 5 years, the growth of the super-rich in Vietnam is forecast to reach 26
percent, on par with China’s Hong Kong and Taiwan. This is the basis for many
investors to continue pursuing the high-end and luxury segment in the coming
time. Reference exchange rate up 3 VND at
week’s beginning The
State Bank of Vietnam set the daily reference exchange rate for the US dollar
at 23,098 VND/USD on April 4, up 3 VND from the last working day of previous
week (April 1). With
the current trading band of +/-3 percent, the ceiling rate applicable to
commercial banks during the day is 23,790 VND/USD and the floor rate 22,405
VND/USD. During
the week from March 28 to April 1, the daily reference exchange rate
fluctuated variably but ended the week down 51 VND from the beginning of the
week. Hong Kong remains potential market for
Vietnamese exports With
export turnover to Hong Kong (China) soaring by 14.9% last year to reach
US$12 billion, the region continues to represent a potential export market
for Vietnamese goods, according to industry insiders. Last
year saw the country climb to be Hong Kong's seventh largest trading partner,
whilst being ranked second among ASEAN partners, with two-way trade turnover
between both sides reaching US$13.62 billion. Key
Vietnamese export items to Hong Kong include processed goods, commodities in
the manufacturing sector, garments and textiles, agriculture, forestry,
fisheries, and foodstuff. Hong
Kong has been Vietnam's fifth largest investor among 141 territories and
countries investing in the Vietnamese market, with a total registered capital
of US$27.83 billion as of December 20, 2021. The
majority of capital flows from Hong Kong primarily focuses on diverse fields,
including processing and manufacturing industry, real estate, garments and
textiles, hotel and restaurant services, transportation, and warehousing. Hawee M&E, Toenec Japan ink
investment co-operation deal Representatives
from Vietnam’s Hawee Electromechanical Joint Stock Company (Hawee M&E)
and Toenec Corporation of Japan recently signed a strategic partnership and
investment agreement via online platforms. Under
the agreement, both sides have committed to fully supporting and sharing
resources in the mechanical & Engineering (M&E) field as part of
efforts to improve construction and management capacity through the exchange
of personnel and training programmes. Furthermore,
Toenec will hold 40% of shares of Hawee M&E, and will send a number of
high-quality experts with international experience to Vietnam in the near
future. Bamboo Airways continues to operate
normally despite chairman's arrest The
Civil Aviation Authority of Viet Nam (CAAV) has recently sent a report to the
Ministry of Transport saying that the Bamboo Airways is still operating
normally after the arrest of its chairman Trinh Van Quyet earlier this week
on charge of stock market manipulation. The
arrest has not caused any turbulence within the airline so far. Its
performance indicators, including on-time performance and airport slots,
still remain high, as do its safety indicators. The
airline maintains its postholders for flight operations, the maintenance
system, crew training and ground operations. Its
total equity is still sufficient to meet the minimum requirement for an air
transport license even if Quyet’s assets are frozen. Additionally,
to date, no jet owners have requested the company to stop operations of their
leased jets or demanded any lease payment. However,
the authority claimed that it had to keep a close watch on the company to
ensure its stable operation, safeguarding the interests of passengers and
service providers. Ministry sets up 5 zones for agriculture,
forestry, fisheries HCM
City is joining hands with the Ministry of Agriculture and Rural Development
to establish five areas exclusively for agriculture, forestry or fisheries in
13 provinces at a cost of VND2.46 trillion (US$107 million) by 2025. They
will include areas for growing passion fruit, pineapple and mango in Hoa Binh
and Son La provinces, timber in Quang Tri and Thua Thien-Hue, coffee in Gia
Lai, Dak Lak, Dak Nong, and Kon Tum, rice in Kien Giang and An Giang, and
mango, jackfruit and durian in Dong Thap, Tien Giang and Long An. Their
targets include reducing input costs by 5-10 per cent, post-harvest losses by
5-10 per cent and increasing product value by 10-20 per cent, thus increasing
incomes by 5-10 per cent for 186,280 co-operative members and other farmers
participating in the project. Viet Nam among top destinations for
Indian companies Indian
companies with an ASEAN focus are highly optimistic about business growth in
the region, according to “Borderless Business: India-ASEAN Corridor,” a
strategic report that explores high-potential opportunities for cross-border
growth commissioned by Standard Chartered. Indian
companies expect their business to increase production in ASEAN, with a more
than 90 per cent projected growth in revenue over the next 12 months. In
terms of target countries within ASEAN, survey respondents consider Indonesia
(61 per cent) the top market that offers the best expansion opportunities for
their company, followed by Viet Nam (49 per cent), Malaysia and Singapore (46
per cent each). The
survey also showed Indian companies recognise a wide range of risks despite
the opportunities. The top three identified risks were the COVID-19 pandemic
or other health crises (85 per cent), a slow revival of the economy and a
drop in consumer spending (73 per cent), as well as geopolitical uncertainty
and trade conflicts (54 per cent). Prices of livestock, poultry, eggs in
HCM City to increase The
prices of livestock, poultry and eggs in HCM City will increase by 2-12 per
cent due to rising domestic gasoline prices, from April 1. According
to the city’s Department of Finance, local businesses have asked that the
proposed increase in cattle meat, poultry meat, and eggs be 2-3 per cent,
6-12 per cent, and 6-8 per cent, respectively. The
businesses said transportation costs account for the highest, about 70 per
cent of the total costs. After
participating in the city’s price stabilisation programme to keep prices
stable and avoid price fluctuations for two months, starting a month before
Tet (Lunar New Year), businesses have registered their products and price
adjustments. The
city plans to launch this year’s price stabilisation programme in April. Sacombank 2021 profits exceed target
by 10% Despite
facing difficulties caused by the COVID-19 pandemic, Sacombank’s pre-tax
profits were worth VND12.66 trillion (US$554.16 million) last year, though
after risk provisioning for loans and restructuring expenses, the actual
number was VND4.4 trillion ($193.1 million). Total
consolidated assets increased by 6 per cent to VND521.12 trillion ($22.85
billion), with profitable assets increasing by 8.9 per cent. It
had total deposits of over VND464.52 trillion and loans outstanding of over
VND388.22 trillion, a year-on-year increase of 14 per cent that is in line
with the credit quota assigned by the State Bank of Vietnam. The
bank collected nearly VND14.1 trillion ($616.52 million) worth of bad and
outstanding debts last year, of which nearly VND11.8 trillion was under the
restructuring project. By
selling mortgaged assets and receiving loan repayments on schedule, the bank
got back more than VND22.1 trillion worth of debts, far higher than the VND10
trillion target set at the beginning of the year. Market expected to inch higher this
week Last
week, news about the arrest of Trinh Van Quyet, former CEO of FLC Group and
Bamboo Airways, hit the market’s sentiment. However, the stock market still
ended the choppy week on a positive note as risk appetite improved. On
the Ho Chi Minh Stock Exchange (HoSE), the VN-Index surged 24.29 points, or
1.63 per cent, in the last trading session to break above the psychological
level of 1,500 points. Meanwhile, the HNX-Index on the Ha Noi Stock Exchange
(HNX) closed last week at 454.1 points, up 4.48 points, or 1 per cent. For
the week, the VN-Index increased by 1.2 per cent, marking its third straight
weekly gain, while the HNX-Index declined 1.66 per cent. The
market liquidity was improved, but still below the 20-week average. On
the other hand, foreign investors continued to be net buyers on the market
last week after net bought a value of over VND1.01 trillion. Saigon-Hanoi
Securities JSC (SHS) said that the VN-Index gained for the third consecutive
week with improved liquidity, showing that cash still flew strongly into the
market. Market violation cases on the rise
despite fines Although
the current Securities Law includes severe penalties, the number of stock
price manipulation cases is increasing, causing great damage to the market
and frustration for investors. According
to Nguyen Hoang Hai, Vice Chairman of the Viet Nam Association of Financial
Investors (VAFI), the recent case of FLC Group’s Chairman Trinh Van Quyet
arrested for alleged stock manipulation is just one among numerous other
violations in the stock market. According
to the new Securities Law, the supervision over the stock market has covered
three levels, from securities companies, the Stock Exchange to the State
Securities Commission. Blockchain crucial for digital
identifiers Blockchain
can play a big part in facilitating digital identifiers, improving online
public services and business employment practices, a conference heard in HCM
City. Viet
Nam has been focusing on researching and applying blockchain, a form of data
storage and transmission technology using encryption. Due
to its transparency in data sharing, high confidentiality and
trustworthiness, blockchain is being used in many industries such as finance,
logistics and retail. Do
Van Long, board chairman and general director of Viet Nam Blockchain JSC,
said that in recent years the Government has been focusing on promoting the
usage of 4.0 technologies for digital identification. Filip
Graovac, Viet Nam Deputy Country Representative from The Asia Foundation,
said that a personal identifier was crucial for societies and economies. According
to other experts at the conference, infrastructure security is crucial for
this system. Users must be allowed to have control of their digital
identifiers and know when who and why they are being shared. Ad revenues at broadcasting stations
fall by more than 40 per cent Broadcast
advertising revenue was estimated to decline by 40 - 50 per cent last year. The
Authority of Broadcasting and Electronic Information report shows that Viet
Nam had 78 radio channels and 198 domestic television channels last year. Television
increased by one, while radio broadcasting decreased by eight channels
compared to 2020. The
revenue of broadcasting units last year was estimated at VND9.2 trillion
(US$400 million). Specifically,
the broadcasting stations in provinces and municipalities achieved revenue of
about VND3.9 trillion. The
stations' advertising revenue reached VND2.83 trillion; funding provided by
State agencies was VND1.28 trillion. MWG seeks to find strategic partner
for Bach Hoa Xanh A
proposal to issue private equity shares of Bach Hoa Xanh (BHX) Trading JSC
will be presented to Mobile World Group's (MWG) shareholders soon, according
to the firm’s announcement. The
maximum offering rate is 20 per cent of BHX's total share capital, and the
transaction is slated to be completed in 2022-2023. Proceeds
would be used to expand BHX’s distribution network, upgrade technology, and
aid the development of online sales channels. Investors across the globe
(with the exception of direct rivals in Vietnam) who make the highest offer
to purchase BHX shares would be suitable partners. Foreign investment in Vietnam
continues bouncing back Despite
the COVID-19 pandemic’s adverse impacts, foreign investors still put their
trust in the economy and investment climate of Vietnam in the new normal
context, said Director of the Foreign Investment Agency (FIA) Do Nhat Hoang. A
total of 4.42 billion USD of foreign investment was disbursed in the first
three months of 2022, up 7.8 percent year on year, the FIA's statistics
showed. Though
the registered capital in Q1, 8.9 billion USD, is equivalent to just 87.9
percent of the figure in the same period last year, only investment in new
projects declined (by 55.5 percent) while the number of new projects still
increased (37.6 percent), and the capital poured into existing projects
surged 93.3 percent to top 4.06 billion USD. Foreign
investment through capital contribution and share purchase exceeded 1.63
billion USD, more than doubling the figure in Q1 last year. Foreign
investment into industrial parks is likely to increase in 2022, with
investors mainly coming from Japan, the Republic of Korea, Taiwan, and the
EU, the FIA Director noted. Higher recruitment demand felt for
senior personnel Along
with the recovery of the economy, the labour market has also recorded
positive signals since the beginning of this year. According
to the Recruitment Market Report 2022 published by TopCV Vietnam in February,
up to 65 per cent of businesses expect to increase recruitment demand this
year to make up for the shortage of workers. 71.3 per cent of enterprises
have a need to recruit experienced personnel. Businesses
that do not conduct massive recruitment still need more quality employees to
accelerate recovery and growth after a year of continuing to be heavily
affected by the pandemic. Businesses
often partner with “headhunting” channels, which are recruitment websites and
job exchanges, when looking for talented employees or senior and high-level
positions. The average salary offered by businesses for a business manager is
VND50-120 million ($2,200-5,200). Finance
is the field with the highest recruitment demand, with more than 80 per cent
of businesses increasing recruitment demand, followed by real estate,
education/training, retail, fast-moving consumer goods, and e-commerce. Statistics
from the Centre of Forecasting Manpower Needs and Labour Market Information
Ho Chi Minh City also show that the demand for trained human resources
accounts for 86.39 per cent, of which a university degree or higher accounts
for 21.58 per cent. Human resources who are fluent in foreign languages such
as English or Chinese and have many years of experience will have an
advantage over other candidates. MB reaches top spot in Vietnam's
bancassurance market With
impressive annual premium equivalent (APE) sales in February and March, MB
has taken the top spot in the bancassurance market. The
life insurance industry in Vietnam currently has 19 businesses, serving about
11 per cent of the population out of 96 million people. Among
the different players in this category, MB Bank recently recorded a
breakthrough in sales. According to a representative, the bank's APE sales in
February reached $4.7 million, and then $8.3 million in March. With these
results, MB cements its triumph in the local bancassurance market. CAKE by VPBank signs partnership with
Dragon Capital for micro-investment product Cake
by VPBank (CAKE) ties up with Dragon Capital VietFund Management JSC (DCVFM)
to launch a micro-investment option to customers under CAKE’s ecosystem. With
the newly-launched micro-investment product, CAKE’s customers can join the DC
Income Plus Bond Fund under the management of DCVFM with an initial
investment of at least VND10,000 ($0.44). CAAV proposes developing third runway
at Cam Ranh airport A
third runway will be needed at the Cam Ranh International Airport in Khanh
Hoa Province to increase its capacity to serve 28 million passengers by 2030,
said the national aviation authority. The
provincial government said the Civil Aviation Authority of Vietnam (CAAV) put
forward this proposal at a meeting with the south-central province yesterday,
April 1. According
to the proposal, the third runway should be built at one of three sites being
400 meters, 760 meters, and 2,050 meters away from the existing second
runway. A consulting unit said the last site is the most feasible for the
third runway. Under
the first plan, which requires low investment, the scale of the airport’s
runways will be kept unchanged. Only the first runway needs to be upgraded
and two more taxiways should be built some 2.36 kilometers away from the
second runway. As
per the second plan, the first runway will be rebuilt and be 360 meters away
from the second one and eight more taxiways will be developed. The upside of
this plan is that the airport will be able to handle 300,000 take-offs and
landings per year. However, this plan will need higher investment and more
land. Accordingly,
the consulting unit suggested selecting the first plan. HCMC to expand national highway
connecting with Long An The
HCMC Department of Transport has approved a plan to expand National Highway
50 linking the city and the Mekong Delta province of Long An in the 2022-2024
period, with a total investment of nearly VND1.5 trillion. The
road expansion will start at the intersection with Nguyen Van Linh Street and
end in Long An Province, with a total length of over 6.9 kilometers. The
project is aimed at boosting the connectivity between HCMC and Long An and
other Mekong Delta provinces, reducing traffic congestion and accidents
facing the national highway and fostering the socio-economic growth of HCMC
and Long An. ACV applies new airport entrance fees
for vehicles At
major airports such as Tan Son Nhat, Noi Bai and Danang, the fee is VND10,000
for the first 10 minutes for cars with no more than nine seats and trucks
below 1.5 tons. The fee is VND15,000 for vehicles with 10-29 seats each and
trucks weighing 1.5-seven tons, and VND25,000 for cars with 30 seats and more
and trucks weighing over seven tons each. Vehicles
parked at the airports for more than 10 minutes will be subject to the
previous fee levels. The
fee is VND720,000 per month for each bus, VND100,000 for each vehicle of
airport staff and VND180,000 for each vehicle with fewer than nine seats of
enterprises and organizations conducting business activities at the airports. As
for the 18 other airports, the lowest fee is VND5,000 for autos with no more
than nine seats each and trucks below 1.5 tons each in the first 10 minutes.
The fee will increase VND5,000 per vehicle in the next 50 minutes and
VND5,000 in the following two hours. The
highest fee level is VND25,000, applicable to autos with 30 seats and over
each and trucks weighing over seven tons each in the first 10 minutes,
VND10,000 in the next 50 minutes and VND10,000 in the next two hours. Local airlines allowed to decide
domestic flight frequency The
Ministry of Transport no longer decides the frequency of domestic flights of
local air carriers, meaning the frequency can be flexibly adjusted by
carriers based on market demand. According
to the Ministry of Transport, carriers can operate domestic flights in line
with their capacity and the availability of aviation infrastructure. Earlier,
their scheduled domestic flights had to be approved by the aviation
authority. Airlines
and other enterprises in the aviation sector must apply the anti-pandemic
measures of Decision 218/QD-BYT dated January 27 of the Ministry of Health
and other requirements of the national anti-pandemic steering committee, the
Ministry of Health and localities. Air
carriers have been selling tickets for flights during the upcoming holidays
and the summer season. Vietnam
Airlines, Pacific Airlines and VASCO will make nearly 750,000 seats
available, equivalent to some 4,000 domestic and international flights. MBG breaks ground on VND300-billion
electrical equipment plant MBG
Group, which lists its shares on the Hanoi Stock Exchange under the code MBG,
has held a groundbreaking ceremony for an electrical equipment assembly and
production plant in the An Phu Industrial Park in Phu Yen Province’s Tuy Hoa
City. The
VND300 billion plant, which is set to turn out eco-friendly products,
energy-efficient lighting devices, LED streetlights and solar LED lights, is
among the hi-tech projects in the park. Mien
Trung Industrial JSC, a unit of MBG, acts as the investor of the project,
whose first phase will be completed in the third quarter of 2022. When
in place, the plant will supply electrical lighting devices in Central
Vietnam, the southern and Central Highlands regions and for export. German firm to develop lubricating oil
plant in BR-VT Germany’s
Fuchs Lubricants Co. has rented 20,000 square meters of land in the Phu My 3
Specialized Industrial Park in Ba Ria-Vung Tau Province to build a new
lubricating oil plant. The
projected plant will cost over US$6 million and turn out more than 6,000
cubic meters of lubricating oil per year, according to the park. The
German firm selected the site in the province due to the competitive price
and its close proximity to the Cai Mep port terminal, which is handling 30%
of Vietnam’s total containers for export. The land lease agreement lasts for
55 years. EVN strengthens electricity
transmission from Laos to Vietnam The
Vietnam Electricity (EVN) informed that the Project 2 Management Board
(EVNPMB 2) signed two contracts providing devices, construction and
installation for the project of Bo Y 220kV switching substation including
220kV power lines connecting from Nam Kong 1, 2, 3 Hydropower Plant Cluster
in Laos to Vietnam's power system and the project of 220kV Dak Ooc switching substation
including 220kV power lines connecting from Nam Emoun Hydropower Plant in
Laos to Vietnam’s power system. Particularly,
the project of Bo Y 220kV switching substation was started its investment and
construction in Ngoc Hoi District, Kon Tum Province and it is expected to be
finished and operated in the fourth quarter of 2022. Meanwhile,
the project of 220kV Dak Ooc switching substation will be invested and built
in Nam Giang District of Quang Nam Province which is expected to be completed
and operated in the first quarter of 2023. Recently,
the EVN has completed Nam Mo 220kV transmission line from Laos to Vietnam
through Tuong Duong District of Nghe An Province. Source: VNA/VIR/SGT/VNS/VOV/Dtinews/SGGP |
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