BUSINESS NEWS HEADLINES TODAY  19:26                Imported pork faces slow sales despite cheaper prices Imported frozen pork has not sold well in shops and supermarkets in HCM City despite cheap prices. At Xanh Supermarket in Binh Tan District, on Tuesday, a kilo of pig collarbone was priced at VND149,000 (USD6.47) compared to around VND209,000 a kilo of locally raised fresh pork. Supermarket staff said that pork products were imported from the US, the Netherlands, Austria, Brazil, Poland and Canada. Thanh Nien Shop in Go Vap District is selling many Russian pork products ranging from just VND77,000-VND98,000 per kilo. Pork from Poland often has the highest prices due to higher import tax of 15%, followed by Canada with 9%. The imported pork is mainly bought by restaurants. Dang Thi Binh, a resident from Binh Tan District, said that she only bought fresh pork but not imported alternatives because she did not know how long it had been stored before being sold. Tran Minh, a representative from a meat importer in HCM City, admitted that the imported pork mostly provided for canteens, hotels and restaurants. Vietnamese people preferred buying fresh meat. According to the Ministry of Agriculture and Rural Development, since January 28, 15 Vietnamese companies have imported 3,464 tonnes of pork from Russia’s Miratorg Group. By March 27, Vietnam imported a total 39,191 tonnes of pork, up 312% on-year. Q1 sees nearly 35,000 businesses withdraw from market Approximately 35,000 enterprises based in Vietnam have made the step of withdrawing from the market in the first quarter of the year, a 2% increase on-year, according to the latest report released by the Ministry of Planning and Investment. Some of the worst-hit sectors include real estate, arts, entertainment,tourism, accommodation services, transport, and warehouse storage, with a number of firms from these sectors encountering difficulties and suspending their operations. Furthermore, the number of newly-established businesses throughout the reviewed period also endured a downturn. Overall, the country saw 29,700 new firms established during the first quarter of the year with a total registered capital of over VND 350,000 billion, representing a rise in the number of enterprises but a fall in registered capital compared to last year's same period. Shrimp processors concerned about material shortages for export A number of Vietnamese businesses have voiced their worries about shortages of shrimp for export with rumours circulating about the reluctance of breeders to deploy shrimp farming measures in the context of the novel coronavirus (COVID-19) epidemic. Truong Huu Thong, chairman of the board of directors cum general director of Thong Thuan Co., Ltd., said rumours regarding clients not moving to purchase shrimp or banks and other credit institutions not providing loans has made farmers reluctant to raise shrimp. According to the executive, the epidemic has so far had a little impact on the country's shrimp exports, with only 20% of the company’s export markets, to places such as Japan, Europe, and the United States, being affected with customers requesting deliveries be slowed down due to the COVID-19. Despite slower deliveries, domestic raw materials have been unable to meet requirements for factories and export orders, causing plenty of enterprises to face shortages in terms of production materials, Thong noted. Moreover, large economies such as China and India have begun to scale down their farming due to the pandemic, resulting in global supply sources becoming limited. He underlined the need to provide farmers with accurate information outlining the positive elements of the current shrimp price in the global market, so that a more upbeat outlook can be placed on the situation. The fact is that the past few months has seen the country's seafood export market negatively affected by the COVID-19, with the widespread epidemic causing disruptions in production and export activities, especially relating to seafood products. In response to this situation, Minister of Agriculture and Rural Development Nguyen Xuan Cuong asked craft associations and enterprises to make more concerted efforts to maintain traditional markets, while seeking new overseas outlets for aquatic products, including brackish shrimp - one of the country's typical products. In order to stabilise production, Tran Dinh Luan, General Director of the General Department of Fisheries, proposed that relevant agencies should instruct businesses to provide farmers with up-to-date information about market developments to help them stabilise production. In addition, businesses are required to draw up brackish water shrimp farming and processing plans adaptable to saline intrusion and the COVID-19 epidemic situation, to ensure sufficient supply sources of material for production. Businesses are advised to optimise their production chains to cut overall production costs while applying safe shrimp farming technology to produce a higher quality of raw material, said Luan. The Vietnam Association of Seafood Exporters and Producers (VASEP) forecast that the demand for aquatic products overseas will increase again as soon as the COVID-19 outbreak is contained. China and the Republic of Korea that have large shrimp farming areas have mapped out farming plans after the epidemic is brought under control. According to VASEP, shrimp exports to key markets will remain volatile in the near future, although they are expected to bounce back in June and July. Yet, VASEP is optimistic about the positive prospects in the global seafood export market moving forward. This is particularly prevalent in the US where retail sales of all kinds of fresh, frozen, and preserved seafood products have sharply increased in the context of the widespread COVID-19 pandemic. Majority of German firms set to continue with investment plans in Vietnam Despite German businesses in Vietnam expressing their concerns about the negative impact of the novel coronavirus (COVID-19) on the nation's business situation, 72% of them will continue to pursue their investment plans, whilst 27% of them are poised to recruit additional employees. The results from the annual Global German Business Confidence Survey were published by the Delegate of the German Industry and Commerce in Vietnam (GIC/AHK Vietnam). GIC/AHK Vietnam distributed the survey among German investors and businesses based in the country from a range of different sectors, including industry-construction, making up 41%, services 50%, and commerce 36% of the total. The remainder of the year is expected to pose challenges for the global economy due to the wide spread of the COVID-19 pandemic in recent weeks and its unpredictable nature. Although the Vietnamese government promptly responded to prevent the spread of the virus, its impact on all socio-economic life, as well as on the investment climate of German businesses, has still been felt. Indeed, the survey reveals that 43% of German businesses feel that the COVID-19 has impacted on the development of the Vietnamese economy in spite of impressive annual growth and a range of strengths. One out of five respondents affirmed their belief that the country will be able to revive the economy and continue its forward development momentum in the medium term. In response to the global spread of the epidemic, the government of Vietnam has been implementing bailout packages aimed at helping businesses get through the ongoing crisis. With bailout packages set to be provided for enterprises swiftly, many respondents expect the economy to bounce back soon and continue to record growth in the near future. Elsewhere, 14% of German businesses believe that their business performance this year will be worse than the figures posted last year. Slightly more optimistic were 59% of respondents, who expect to match 2019’s performance. Despite this, only 27% of German firms are optimistic about 2020’s business development in comparison to that of 2019, with the index showing that 77% were optimistic when asked last year. Compared with the average indicators assessed by German businesses and investors in Southeast Asia, the country’s indicators remain higher, outlining the optimism that German enterprises have about their future development in the nation. 9% of businesses estimate revenue will fall by over 50% One notable aspect of this year’s survey is that the majority of German firms are significantly lowering their financial goals. According to the results, 82% of them have seen simultaneous reductions to their sales due to the COVID-19, with 9% confirming that their revenue is set to drop by over 50% and more than 63% stating that their revenue will decline by between 10% and 50%. The majority of German firms based in the country are already beginning to feel and experience the effects of the disease on their businesses with 86% of firms noting that temporary travel restrictions have greatly affected their situation. A total of 59% of respondents indicated that the disease has disrupted their supply chains. Moreover, 55% of German enterprises have faced cancelations, with 50% of them being forced to indefinitely postpone their new investment plans as a result of the epidemic escalating. A positive feature of the survey was 72% of firms stating their intentions to continue their investment schemes in the country, with 27% of them drawing up plans to recruit more people to their workforce. This shows the superb efforts being put in to improve the investment environment by the Vietnamese government, in addition to the positive effects of free trade agreements, especially the Europe-Vietnam Free Trade Agreement (EVFTA). When the EVFTA comes into full force it is expected to serve as a lever to help the country’s economy rebound and return to its current growth rate, therefore attracting more major investors from Europe and Germany in both the medium and long term. Market demand and economic policy are seen as the main challenges for the further development of German enterprises when operating in the nation moving forward. According to the survey results, 68% of German firms believe that the COVID-19 pandemic will drastically reduce market demand, thereby leading to great losses for them in their Vietnamese investments. The survey reveals that 59% of them think that the country’s economic policy will pose a challenge to their business development plans over the next 12 months. Matters regarding finance, infrastructure, and a shortage of high-skilled workers also remain causes for concern among German businesses in the medium term. PM asks Dong Nai to focus on site clearance for Long Thanh airport Prime Minister Nguyen Xuan Phuc urged the southern province of Dong Nai to make every effort to complete site clearance for the construction of Long Thanh International Airport at an online meeting in Hanoi on April 8. He emphasised that this is an important political mission for Dong Nai authorities and will contribute to building a large-scale national construction work. The goal is to wrap up site clearance by 2025 or earlier, as set by the National Assembly, he said. He said the implementation of the task has been slow, and requested local authorities focus on this task. According to Dong Nai province's report, only 1.7 trillion VND out of a total of 17 trillion VND (723.6 million USD) allocated for the task has been disbursed so far. He said that the National Assembly and the Government pay particular attention to progress at the airport, so Dong Nai needs to fully implement resettlement activities. The PM asked the province to quickly complete the construction of resettlement areas. He also requested ministries and departments to coordinate with Dong Nai to speed up site clearance, particularly the Ministry of Transport, the Ministry of Natural Resources and Environment, and the Ministry of Finance. Dong Nai has so far completed 99 percent of site clearance at resettlement sites./. Red dragon fruit on shelves in Australia A total of five tonnes of red dragon fruit from Vietnam are being sold at supermarkets and grocery stores in the Australian states of New South Wales, Victoria, and Western Australia as part of a week-long promotional event held by the Vietnamese Trade Office in Australia and the Melbourne-based company Da Lat Import & Export from April 2 to 8. The fruit has been well-received by local consumers, particularly Vietnamese expats, and actually sold out in Western Australia. Head of the Vietnamese Trade Office in Australia Nguyen Phu Hoa said that despite the difficulties caused by the COVID-19 pandemic in the promotion and distribution of the red dragon fruit, the event was nonetheless successful thanks to the assistance provided by Vietnamese business associations in Australia and the local Vietnamese community. In light of travel restrictions triggered by the outbreak, Hoa said, the Trade Office plans to make use of digital tools to support Vietnamese exporters in Australia and help them promote their products. He revealed that the office has been working to develop a forum for agricultural exporters from Vietnam in Australia to together formulate common action plans and be better prepared for potential risks in the global market. Exports of Vietnamese dragon fruit to Australia were first permitted in July 2017, after nine years of negotiations. The Australian side has, notably, only opened its doors to fresh dragon fruit from Vietnam.In September 2018, the first batch of red dragon fruit grown in the northern province of Vinh Phuc was sent to Australia, paving the way for Vietnam to bolster its exports to one of the world’s most demanding markets. Ha Noi retail property market faces difficulties in Q1: JLL The Ha Noi retail property market faced a lot of difficulties in the first quarter this year due to the impact of the novel coronavirus (COVID-19) pandemic, according to Jones Lang Lasalle Vietnam Co Ltd (JLL). The market recorded a slight decrease of 48 percentage points quarter on quarter to 90.4 per cent in the occupancy rate of the first quarter. In addition, the regulation on restricting gatherings caused a sharp reduction in the number of visitors at shopping centres and made them pay more attention to online shopping, it said. The visitor decline had a direct impact on retail activities, causing shops in the shopping centres to scale back or temporarily close. Only supermarkets and convenience stores witnessed less impact from the pandemic because they sell essential goods. JLL reported that in the first quarter, Ha Noi did not have new supply on the retail property market. Large shopping malls outside the central business districts (CBD) continued to be attractive to customers in the capital city. The market still recorded some bright spots, including the re-opening of Vincom Pham Ngoc Thach Shopping Mall after upgrades. Of which, the first Uniqlo store in Ha Noi opened in Vincom Pham Ngoc Thach. In terms of price, the average rent in the retail property market remained stable at US$29.3 per sq.m in the first quarter, 1.6 per cent higher than the same period last year, according to JLL. Due to the impacts of the COVID-19 pandemic, many shopping centre owners had temporary support measures for their tenants, including reduction of rents by 10-50 per cent depending on commodity sectors, it said. JLL said that Ha Noi’s retail market would be seriously affected by the COVID-19 pandemic. The market needs time to recover because the prolonged disease has affected purchasing power and rental demand. In addition, with a large supply expected to enter the market in 2020, the competitive pressure will continue to increase, leading to a suitable adjustment of rents. Taseco Airs profit to fall by 90 per cent due to COVID-19 Thang Long Air Services Corporation (Taseco Airs) estimates its profit will plummet by 90 per cent due to the COVID-19 pandemic. Working in airport commercial services and airline shops and restaurants in major airports in the country, the firm predicts revenue of more than VND670 billion (US$28.6 million) and pre-tax profit of nearly VND27 billion, down 41 per cent and 90 per cent, respectively, compared to 2019. The estimates were built based on the assumption that the pandemic would stop in July and the market could gradually recover and return to normal by September. Last year, Taseco Airs recorded consolidated revenue of VND1.14 trillion, an increase of 32 per cent from 2018, in which non-aviation services business activities at international airports were the main contributors, accounting for 88.7 per cent of revenue. The remaining 11.3 per cent was from hotel services. Last year, it also reported consolidated profit before tax of VND263.16 billion, up more than 29 per cent compared to 2018. The COVID-19 epidemic began at the end of January in Viet Nam and was basically controlled in the first month. However, since March the pandemic became complicated which led the Government to stop issuing visas and not accept foreign visitors to the country as well as restrict travel and hotel services. International flights have been severely reduced while domestic routes are also restricted, massively reducing demand for the firm's services at airports. On the morning session of April 7, the firm's shares with the sticker of AST lost nearly 2 per cent to close at VND45,600 ($1.96) each on the Ho Chi Minh Stock Exchange (HoSE). Ten securities brokerage firms with the largest market shares in Q1 announced SSI Securities Corporation held the largest brokerage market share in the first quarter of this year despite seeing a drop in market share over 2019. According to a recent report by HCM City Stock Exchange, the market share of SSI was 12.32 per cent in Q1, 1.64 percentage points lower than 2019. SSI was followed by Ho Chi Minh City Securities Corporation which held a share of 11.03 per cent (falling from 10.54 per cent in 2019) and Ban Viet Securities with a share of 9.7 per cent (from a share of 8.19 per cent in 2019). VNDirect came fourth with a small increase of 0.14 percentage points in market share to 6.95 per cent. Mirae Asset Viet Nam surpassed MB Securities in the first quarter to rank fifth with a share of 5.5 per cent, an increase from 4.47 per cent in 2019. Other brokers in the top 10 were VPS Securities wih a share of 5.25 per cent, MBS 4.7 per cent, FPT Securities 3.48 per cent, Maybank KimEng 3.47 per cent and BSC with 3.47 per cent. MBS, FPT Securities and Maybank KimEng were newcomers to the top 10 list, replacing Bao Viet Securities, BOS Securities and KIS Securities Viet Nam. In the first quarter of this year, the VN-Index tumbled 31 per cent to 662.53 points, the second largest loss in history after the drop of 44.25 per cent in the first quarter of 2008 when the global economic crisis occurred. Hoa Phat's steel output notches record high in March Construction steel production reached a record high of 351,000 tonnes in March, up 42.2 per cent year-on-year, steel maker Hoa Phat Group has announced. Strong growth was seen last month in all three regions amid the novel coronavirus pandemic having hit the entire global economy. Production gained 89.7 per cent in the South, 23.2 per cent in the Central Region, and 14.7 per cent in the North. Exports in March were also high as the company shipped nearly 68,000 tonnes of finished steel to the likes of Japan, Cambodia and Australia. The figure almost equalled that recorded in the first three months of 2019. The company also shipped 135,000 tonnes of billets to overseas markets. In total, Hoa Phat produced and exported 486,000 tonnes of finished steel and billet in March. In the January-March period, the group sold a total of 732,000 tonnes of construction steel, 135,000 tonnes of finished steel and 350,000 tonnes of billet to both domestic and overseas customers. Production reached a record volume in March as civil construction demand rose high, according to the steel-producing group’s Hung Yen Province office. To meet the market’s rising demand during the virus-hit period, the group has been using applications to control its production and sale activities while making sure measures are taken to prevent the coronavirus from spreading to the employees and customers. Five newbies debut on UPCoM in March Five new companies debuted on the Unlisted Public Company Market (UPCoM) in March, according to the Ha Noi Stock Exchange. That was an improvement compared to the Ho Chi Minh and Ha Noi stock exchanges as only three companies debuted on both in March. As of the end of March, a total of 886 companies were trading on the secondary stock market UPCoM. Total volume of trading was more than 38.2 billion shares worth VND382 trillion (US$16.2 billion). The market tracker UPCoM-Index fell 13.48 per cent in March to 47.63 points. Total trading volume in March increased by two-thirds to 494 million shares from February, but trading value slid nearly 5 per cent on-month to VND6.07 trillion. An average of 22.5 million shares was traded in each session, up 51.9 per cent monthly, worth VND275.9 billion, down 13.57 per cent. Foreign investors bought VND604 billion worth of UPCoM shares but sold VND719 billion in March. They net-sold a total of VND115 billion in March. Ninh Thuan vows to facilitate renewable energy projects The south central province of Ninh Thuan will help investors speed up the implementation of renewable energy projects, with the goal of having 2,000MW of solar power and more than 60MW of wind power connected to the grid by the end of this year, chairman of the provincial People's Committee Luu Xuan Vinh said. Initially, the committee requested relevant departments and sectors to assist Trung Nam Group in completing procedures so that the enterprise can start construction of a 450MW solar power plant in Phuoc Minh Commune this month, the chairman said. The Thuan Nam solar power plant, expected to cost VND14 trillion (more than US$600 million), is slated for completion in the fourth quarter of this year. Once operational, the plant will be the largest of its kind in Viet Nam and Southeast Asia as well. The company will also build a 500kV substation and install 500kV and 220kV transmission lines to connect the plant with the national grid, chinhphu.vn reported. In order to facilitate investors, local authorities will continue speeding up administrative reforms to slash time and costs for the firms in fulfilling relevant procedures as well as ensure adequate personnel for the enterprises which are investing in solar and wind power projects in the province. Ninh Thuan aims to become the renewable energy centre of the country. The province has a high level of sunshine hours (2,467) per year and solar radiation per square metre (1,700kWh), making it ideal for solar energy projects. Under the province’s green energy plan, by 2030 it is expected to reach a total capacity of 1,500MW in wind energy and 3,912MW in solar energy. The province is now home to 17 operational solar power plants with a total capacity of 1,100 MW. It has also approved 13 wind power projects with a designed capacity of 680MW. Of the total, three have been already operational. Ha Noi promotes cashless payment, e-commerce Ha Noi plans to promote cashless payments as part of efforts to develop e-commerce in the capital. Under a plan recently issued by the municipal People’s Committee, the capital city targets that 90 per cent of modern retailers and water, electricity and telecommunications services providers together with 25 per cent of petrol stations would accept cashless payments by the end of this year. The move aims to strengthen online shopping to gradually change consumers’ shopping habit from traditional to modern channels. The capital city will also encourage the application of e-commerce in business and start-ups, with a focus on improving the logistics system to boost e-commerce development. The city wants 75 per cent of internet users to shop online by the end of this year, up 7 per cent against 2019. It would also want all safe food chains joining the payment system using QR Code for origin traceability. Online services in transportation such as booking, ticket purchase and ride-hailing as well as online education, health care and communications activity would also be promoted. The platform for safe agricultural products in Ha Noi at www.chonhaminh.gov.vn will continue to be updated. The city asked the municipal Department of Industry and Trade to work with the Trade Promotion Agency and Amazon Global Selling to provide instruction to small firms to do business on the Amazon.com platform. According to the Viet Nam E-commerce Association, Ha Noi ranks second after HCM City in the e-commerce business index with a score of 84.3. The capital city hopes to maintain the position this year. Thailand: 15,000 tour operators on verge of collapse need support The Thai Government has been urged to help 15,000 tour operators at risk of collapse due to stagnant cash flow. Vichit Prakobgosol, President of the Association of Thai Travel Agents (Atta), said at least 11 troubled sectors still cannot access the government's aid measures for businesses affected by the coronavirus outbreak. Tourism workers need financial aid from the Social Security Fund (SSF), as well as hotel workers who automatically receive compensation from the fund when following provincial orders to close hotels temporarily to curb the infection, Vichit said. Apart from 15,000 inbound, outbound and domestic tour operators that have more than 300,000 employees, other sectors that should be included in the scheme are land-sea-air transport, restaurants, souvenir shops, recreation, MICE (meetings, incentives, conferences, exhibitions), and domestic and international tourism relations. The SSF should support tourism workers by giving back 62 percent of their salary when employers shut down business by themselves without an official order,” he said. At present, tour guides already received financial support — 5,000-THB monthly handouts — to relieve the mounting financial pressure from paralysed tourism. The Tourism and Sports Ministry assured hoteliers that they would be included in the benefit, even hotels that decided to close of their own accord. Other tourism sectors still need financial assistance to help them stay afloat, Vichit said. According to an Atta survey, tour operators have sufficient cash flow to survive for just two months. If they have to bear labour costs without help from available sources, some may collapse by that time. The country’s tourism industry was the first segment hit by the outbreak at the end of January. The situation was worse in March when the government imposed measures restricting international and domestic connections to contain the virus spread. Data released by the Tourism and Sports Ministry shows that Thailand’s tourism revenue fell nearly 40 perccent year-on-year in the first quarter of 2020 to 335 billion THB (10.25 billion USD). The number of foreign visitors to Thailand in the period was 6.7 million, down 38 percent from the same period last year./. Cargo handled at seaports up in Q1 The volume of cargo handled at Vietnam’s seaports reached nearly 160 million tonnes in the first quarter, up 8.4 percent over the same period last year, according to the Vietnam Maritime Administration. Container goods were estimated at over 5 million TEUs, a year-on-year rise of 14 percent. The total number of vessels carrying passengers, however, was down 10 percent to 16,473. More than 1.6 million passengers visited Vietnam through seaports from January to March, a year-on-year decline of 36 percent. The administration said freight volumes at seaports were not overly impacted by the COVID-19 pandemic and remain on an upward trend despite growth being slower than the average in previous years. Nevertheless, the number of cruise ships and passengers fell significantly, especially from abroad. To resolve difficulties facing businesses, the administration said it has simplified administrative procedures and provided essential equipment to ensure loading and unloading at ports proceed as normal. It also proposed the State Bank of Vietnam direct credit institutions to adopt support measures such as cutting interest rates for businesses and delaying debt repayments. The Ministry of Finance, meanwhile, suggested fee reductions and exemptions for seaport enterprises affected by COVID-19. Vietnam’s cassava exports recover in first quarter Vietnam achieved cassava export growth in both volume and value in the first quarter of this year despite experiencing difficulties, according to the Ministry of Agriculture and Rural Development (MARD). Cassava exports in the first quarter rose by 14 percent in volume to 772,000 tonnes and 0.4 percent in value to 257 million USD year-on-year, the MARD’s Department of Agro-product Processing and Market Development said. Of which, exports reached 335,000 tonnes in March, earning 113 million USD. However, the average export price of cassava in the quarter fell by 12 percent to 332.5 USD per tonne. In terms of product structure during the first three months, cassava chip exports were estimated at 263,000 tonnes, earning 57 million USD, up 70 percent in volume and 96 percent in value over the same period last year. Cassava starch exports reached 509,000 tonnes, earning 200 million USD, down 2 percent in volume and 12 percent in value. During the quarter, lower supply of cassava chips due to prolonged hot weather and the pandemic pushed up export prices by 16 percent to 217 USD per tonne compared to the same period last year. Meanwhile, the average export price of cassava starch fell by 10 percent to 393 USD per tonne. The Ministry of Industry and Trade’s Import and Export Department said the cassava export growth in the first quarter was mainly due to growth to mainland China. Besides that, businesses also promoted exports to Malaysia, Taiwan and Japan. According to the General Department of Customs, in the first two months this year, China was the largest export market of Vietnam's cassava and cassava products, reaching 402,480 tonnes worth about 130.9 million USD. These exports had an increase of 10.6 percent in volume but a plunge of 2.8 percent in value over the same period last year. Meanwhile, the nation saw strong growth in both volume and value of cassava exports to Malaysia in the first quarter. Exports were up by 48.5 percent in volume to 7,400 tonnes and by 49.4 percent in value to 3.2 million USD. Vietnam’s cassava export price is expected to increase due to lower supply on the domestic market as hot weather, disease and the pandemic take hold. Meanwhile, output of this product in Thailand, which is the largest exporter of cassava to China so far this year, is expected to decrease by 20 percent compared to 2019. On the other hand, according to MARD, China would have increased demand for cassava to promote ethanol production after the pandemic and animal feed for pigs. China has faced a shortage of pork due to African swine fever. However, the export of cassava starch via the border gates is likely to slow because China is prioritising imports of fruit and other essential foods. In 2019, Vietnam's cassava exports reached 2.46 million tonnes, earning 948 million USD. Exports surged by 2.9 percent in volume but fell by 0.2 percent in value compared to 2018./. COVID-19 pushes banks to lower deposit rates Many banks have cut their deposit interest rates significantly this month due to a credit growth slowdown in the wake of the pandemic. Private banks such as VPBank, MBBank, ACB and Viet Capital Bank have reduced their interest rates by 0.2-0.7 percentage points per year. VP Bank has lowered its interest rate on savings accounts by 0.2-0.7 percentage points for many terms, with six-month deposits standing at 6.6 percent a year and 6.7-7.2 percent a year for 12-month deposits. For the bank’s online deposits, the interest rate has also dropped by 0.35 percent to 6.9-7.2 percent per year for 18-36-month term deposits. MBBank has also announced a new deposit interest rate list this month, down 0.1-0.5 percentage points from the previous rate. For six-month term deposits, the interest rate at the counter has decreased by 0.4 percentage points to 6 percent per year while the rate for 13-month deposits has been lowered by 0.1 percentage points to 6.6 percent. ACB has lowered its interest rate on savings accounts for almost all terms by 0.25-0.55 percentage points per year, with 12-month deposits staying at only 6.7-7 percent per year, depending on the total of deposits. State-owned banks have also dropped their deposit interest rates. Vietcombank has lowered its deposit interest rates by 0.2-0.3 percentage points for periods of six months or more. An individual account will now get a 6.6 percent interest rate per year for a 12-month deposit instead of 6.8 percent. Vietinbank has cut its interest rates by 0.2 percentage points to 6.6 percent for terms of six to less than 12 months, keeping the rate for a 12-month fixed deposit unchanged at 6.8 percent. BIDV has cut its rates by 0.05-0.2 percentage points for most periods, except for 12-month deposits which is still 6.8 percent. Previously, banks cut short-term deposit rates after the central bank in March reduced the cap on interest rates on VND deposits of one to six months from 5 percent to 4.75 percent. The cut came as the country’s bank credit growth in the first quarter of this year was only 1.1 percent, slowing significantly against the 2.28 percent rate in the same period last year, with many firms scaling down their business due to the adverse impacts of the COVID-19 pandemic. Experts said decreasing credit demand meant banks had high liquidity and therefore don’t need to mobilise more cash. However, they said, if the pandemic worsens, more companies would need credit to save their businesses and at that time deposit interest rates could rise./. Singapore plans to step up domestic food production The Singaporean Government on April 8 announced new measures to accelerate local food production as the COVID-19 pandemic has disrupted global supply chains. The city-state currently produces only about 10 percent of its food needs but has plans to increase that as climate change and population growth threaten global food supplies. Restrictions on population movement because of the COVID-19 outbreak around the world are wreaking havoc on farming and food supply chains and raising concern of widespread shortages and price increases. Authorities said in a statement that the current COVID-19 situation underscores the importance of local food production, as part of Singapore's strategies to ensure food security. Local food production mitigates Singapore’s reliance on imports, and provides buffer in the event of food supply disruptions. Farmers and the government have been seeking ways to overcome the shortage of land in Singapore, where only 1 percent of its 724 sq km is devoted to agriculture and production costs are higher than the rest of Southeast Asia. In response to the outbreak, authorities aim to speed up local production over the next six months to two years. This includes providing a 30 million SGD (21 million USD) grant to support production of eggs, leafy vegetables, and fish in the shortest time possible, and identifying alternative farming spaces, such as industrial areas and vacant sites. As part of the project, Singapore's food agency will launch a tender for rooftop farms on public housing car parks for urban farming starting next month./. Commercial banks cut profit target amid COVID-19 pandemic Many banks in Vietnam have reduced their profit target for 2020, and plan to support companies severely impacted by the COVID-19 pandemic. Besides, the State Bank of Vietnam (SBV) issued instructions on 31 March to banks to cut costs and bonus payments and not pay dividends in cash. Nam A Bank has reviewed its 2019 performance and 2020 plans, and said it now targets pre-tax profit of only 800 billion VND (34 million USD) in 2020, 13.5 percent down from last year. But it plans to keep some other targets unchanged. The bank said it would seek to achieve the credit target it set based on the State Bank of Vietnam’s credit growth quota. It is set to lower lending interest rates by 2 percentage points, with businesses in agriculture, hospitality and import-export benefiting the most from this. It has also unveiled a 1 trillion VND (42.5 million USD) loan package for individual customers at an interest rate of 9.9 percent. Hoang Viet Cuong, deputy general director of the lender, said it is meant to enable borrowers to revive production and get their lives back to normalcy. Bad debts this year would not exceed 3 percent, the bank said. Sai Gon – Hanoi Commercial Joint Stock Bank (SHB) also plans to cut its 2020 profit target, adding that it would be by at least 1 trillion VND. It also plans to reduce operation costs. Its executives have volunteered a 50 percent wage cut until the pandemic ends, while department heads are amenable to 10-30 percent cuts. The bank has earmarked 25 trillion VND for loans with many preferential offers including a 2 percentage point interest rate cut. It also plans to restructure customers’ loans. It is expected that more banks will announce changes to strategies and interest rate cuts to support clients in the coming days. A report from the National Statistics Office said the credit growth this year has been only 0.68 percent, 1.22 percentage points down year-on-year. Deposit growth has fallen to 0.51 percent from 1.72 percent, it added./. VNN