BUSINESS NEWS HEADLINES MAY 18     02:27        VN to strengthen simplification of business regulations in 2020-25 period  Tra fish processed at the Southern Seafood Corporation. Viet Nam targeted to remove and simplify at least 20 per cent of the number of regulations and reduce at least 20 per cent of compliance costs for firms by 2025. Viet Nam will strengthen the removal and simplification of business regulations in the next five-year period to create favourable conditions for enterprises and promote their development as a driver for socio-economic growth. Under the Government’s Resolution No 68/NQ-CP issued early this week, Viet Nam targeted to remove and simplify at least 20 per cent of the number of regulations and reduce at least 20 per cent of compliance costs firms incurred to adhere to Government regulations which were in effect as of May 31. The list of existing legal documents regulating business operation must be announced before October 31. At the same time, the Government’s programme also aimed to strictly control the promulgation of new legal documents regulating business operation, especially ministers’ circulars, Prime Minister’s decisions and Government’s decrees to prevent the creation of unnecessary and unreasonable regulations. This year, software providing adequate and accurate updates about business regulations and compliance costs would be put into operation, which would be a base for reviews for cuts and simplifications. Priority would be placed on regulations about checks on imported-exported products. Dialogues between the management agencies and businesses would be increased so that the quality of simplification would be improved, meaning that the effort would really bring benefits to enterprises. The Government Office’s statistics showed that the since 2016, 3,893 out of 6,191 business prerequisites had been removed or simplified, together with 6,776 out of 9,926 categories of goods subjected to customs checks and 20 out of 120 administrative procedures related to customs checks. The effort helped save an estimated 18 million workdays per year, equivalent to more than VND6.3 trillion. Viet Nam ranked 70th among 190 economics in the World Bank’s Doing Business 2020 report.  Banks aid 318,000 COVID-19 affected borrowers Commercial banks cut interest rates on VND980 trillion (US$42.6 billion) of loans to support 318,000 COVID-19 affected individual and corporate borrowers by the end of April, the latest data from the State Bank of Viet Nam (SBV) showed. The interest rate reduction was commonly 0.5-2 percentage points per year. Some credit institutions even offered a higher rate cut of 2.5-4 percentage points per year. It was estimated if the banks cut the rate by 1 percentage points on average for the VND980 trillion in loans, their profits will be lowered by at least VND100 trillion. By the end of April, banks also rescheduled debt repayments for more than 170,000 customers with loans of nearly VND130 trillion, according to the SBV’s data. The SBV has required commercial banks to further simplify lending procedures to help COVID-19-affected firms easily access preferential interest rate loans. However, he noted, banks must still meet lending standards to ensure the safety and stability of the financial and banking system. Some businesses have recently claimed they could not access new loan packages with preferential interest rates due to their failure to meet banks’ lending standards and proposed that banks ease lending rules. However, Nghiem Xuan Thanh, chairman of Vietcombank, said most companies that could not access the package are inefficiently operating their businesses. Banks would not ease lending standards as they must avoid risks, Thanh noted, explaining that the package does not come from the State budget but from commercial banks. Echoing Thanh, Tran Hoang Ngan, head of the HCMC Economic Development Institute, said banks were themselves businesses so they were always afraid of bad debts. According to Nguyen Quoc Hung, director of the SBV’s Credit Department, in the current situation, it is forecast the bad debt ratio of the banking system will increase this year and negatively affect the country’s plans to deal with bad debts and recover poor-performing banks. Grab Food takes biggest bite of food delivery in Viet Nam: survey Grab Food is the most popular food delivery application in Viet Nam with 79 per cent market share, a report by Q&Me, an online market research service, revealed. Now ranked second with 56 per cent, followed by Go Food (41 per cent), Bacmin (15 per cent) and Loship (12 per cent). Q&Me has recently released a survey on the increasing food delivery demand after the COVID-19 pandemic. The survey was conducted among 840 respondents in HCM City and Ha Noi last month. Food delivery services in Viet Nam increased in popularity due to the social isolation measures imposed during the COVID-19 pandemic, said the report. Seventy-six per cent of respondents used food delivery services, out of which 24 per cent are new users who started to use food delivery services for the first time due to COVID-19. Among existing users, 70 per cent have increased food delivery usage in the last 60 days, probably due to the pandemic. As per the ordering method, delivery apps are the most popular. While users in HCM City use apps more, Hanoians have a higher ratio of social media or telephone orders. Eighty per cent are satisfied with using delivery apps because of good service and fast delivery. Seventy-nine per cent of people order food at least once per week. High shipping costs are a concern for a number of users.  New urban area planned on Vung Tau Airport land A new urban area will be built on the land of Vung Tau Airport once the airport is relocated to Go Gang Island. Ba Ria-Vung Tau Provincial Standing Committee has had a meeting with Van Phu-Invest Company, VCI Company and the consultants to discuss the planning of Go Gang Airport. In exchange, the two firms asked for permission to invest in two urban area projects on the 172ha land of Vung Tau Airport. There will be a 35ha compact city, 46ha central park, 24ha for transit area and mixed commercial services, 20ha for the financial and hi-tech area and 25ha for the urban symbolic constructions. Ba Ria-Vung Tau Provincial Standing Committee showed interests in the projects but said that there must be detailed research about population density, traffic density, parking lots to connect with the city's traffic infrastructure, including both elevated and underground routes. The financial and hi-tech centre should be reviewed and changed to a hub of bank branches. The local authorities are preparing for a bidding process for Go Gang Airport. Nguyen Hong Linh, party secretary of Ba Ria-Vung Tau, proposed to include the Vung Tau-Go Gang airport project in the list of the provincial key projects to speed up the process and more rapidly deal with problems. Many people have supported the idea to relocate and replace Vung Tau Airport to Go Gang. The new airport is located next to Truong Sa Street. One side is adjacent to the river and others are next to the mangrove forests. Land prices in Vung Tau City surged as soon as it was announced that Go Gang Airport will be built on a 250 ha of land in Long Son District. A 900 square-metre plot that is about 400 metres from the road used to cost some hundreds of millions of VND but now it is being sold for VND1.6bn (USD68,200). A 700-square-metre land that is next to the supposed entrance to Go Gang Airport is being sold for VND2bn. "With higher land prices, I can sell some land to build more houses and expand business. I'm glad," a local said. Vung Tau People's Committee advised the buyers and investors to be more careful and research carefully to avoid too good to be true offers. Vietnam sees greater prospects ahead for shrimp exports Vietnamese shrimp products are expected to enjoy greater export opportunities providing that the novel coronavirus (COVID-19) shows signs of abating during the second quarter of the year following the reopening of the global market, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). Despite plenty of local commodities experiencing a downward export trend, including such items as tra fish, tuna, Vietnam’s shrimp exports throughout the first quarter displayed positive signs amid complicated developments relating to the COVID-19 pandemic.  At present, the United States is the second largest importer of Vietnamese shrimp, making up 18.4% of the country's total shrimp export value. During the opening three months of the year, shrimp exports to the US market enjoyed a surge of 18.2% to US$115.5 million in comparison to last year’s corresponding period. Despite the COVID-19 epidemic resulting in stagnant import-export activities to the US market along with a decline in import demand, retail stores are still buying regular goods in order to combat shortages after American consumers scrambled to purchase higher levels of stock since the start of the epidemic. As shrimp supply sources from key players such as India, Ecuador, and Thailand begin to drop as a result of various national lockdowns, several US consumers have made moves to purchase Vietnamese shrimp. Amid the domestic market, after suffering an initial fall, the price of raw shrimp in the Mekong Delta has gradually been increasing since the beginning of April. This development is expected to bring about an array of bright prospects for shrimp production ahead in the new season. While the price of raw shrimp has increased, farmers remain hesitant to move into shrimp farming because of the risks relating to the effects of drought, saltwater intrusion, disease outbreaks on shrimp, as well as the complicated nature of the COVID-19 severely affecting major consumer markets. According to the VASEP, there are positive signs ahead for the export of brackish shrimp over the course of the year thanks to high demands for shrimp globally, in addition to the epidemic being brought under control in both China and the Republic of Korea. Moreover, Vietnamese shrimp is poised to enjoy benefits relating to a substantial reduction in tax rates from the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to come into effect in July, in comparison to shrimp products from India, Thailand, and other countries. In contrast, there is still plenty of risks, requiring processing enterprises and shrimp farmers needing to work closely seize opportunities when the market begins to bounce back. Which scenario for the post COVID-19 hotel market? No matter what recovery scenarios occur as the nation begins to emerge from the effects of the novel coronavirus (COVID-19), this year’s hotel market is expected to witness a sharp decline in terms of room capacity and will only get back to normal levels in 2021. This comes after Savills Vietnam, the nation’s largest property consultancy with real estate services running since 1995 stated that most hotels must move to suspend parts or all of their business operations in a bid to cut costs while keeping on only key personnel as they prepare plans to resume operations.  According to Savills Vietnam, these strategies will partly offset the revenue decline faced in the short term. However, hotel owners have not been able to map out longer term plans due to the uncertainty over how long it will take for the tourism industry to return to pre-epidemic levels. Savills believes that the global economic impact and complex developments of the COVID-19 will make it challenging for the hotel industry to fully recovery in 2020, with a full recovery likely to take place by 2021. Moreover, domestic tourism demand, especially among young travelers, is set to play an important role in the process of the hotel industry’s recovery. Elsewhere, CBRE Vietnam stated that the situation with regard to the hotel market in Hanoi is more positive than that of Ho Chi Minh City. The segment of four to five star hotels in Hanoi will enjoy a faster recovery as international businesses begin to get operations back to normal. In addition, domestic guests and a small number of international visitors from Northeast Asia are poised to serve as contributory factors that drive the recovery of the Hanoi hotel market once the epidemic has been fully brought under control. According to CBRE forecast for the country, if the disease is controlled by June, the average room rate this year will drop by between 8% and 13% compared to 2019’s figure, with the occupancy rate falling by between 46% to 51%. If the epidemic is successfully contained by September, the average room rate will decrease by between 15% to 20%, with the room capacity dropping by between 50% and 55% from last year. Following this, the Vietnam National Administration of Tourism has outlined a slow recovery scenario for the country’s tourism industry with the number of international arrivals to the nation in 2020 anticipated to fall by 70% compared to 2019, providing the epidemic is brought under control in June. In a worse-case scenario, the number of international visitors will be reduced by up to 75% if the epidemic is not controlled until September. In all of the scenarios, the year will see an unprecedented slowdown in terms of the number of tourists visiting the nation, leading to a serious decline in room occupancy in the hotel market, the Vietnam National Administration of Tourism notes. Saigon Autotech & Accessories 2020 pushed back to December The 17th version of the Saigon International Autotech & Accessories Show (Saigon Autotech & Accessories) is set to be postponed from its original date of May 21 to May 24 and will now take place from December 12 in Ho Chi Minh City as a result of the novel coronavirus (COVID-19) epidemic. Despite the date change, the event will still be organised at the Saigon Exhibition and Convention Centre by the Ministry of Industry and Trade’s Department of Industry, the Asia Trade Fair, Business Promotion JSC, and the K-Wellness association of the Republic of Korea.  According to organisers, the country has now entered into a new phase in fighting the COVID-19 and will work hard to gradually revive the economy following the easing of social distancing restrictions for production and business establishments as set out by the Government. Due to the complicated COVID-19 picture globally, the Government has halted all entry to foreigners in an attempt to reduce the risk of infection coming into the country from abroad. The end of the year’s third quarter is considered to represent an appropriate time to organise the event, which is expected to contribute to promoting economic and trade co-operation among local and foreign businesses, whilst simultaneously providing a boost to the automobile and supporting industries, as well as reviving the national economy. Ninh Minh Uyen, a representative of the organisers, said that over the course of recent years the global and domestic automobile industry has displayed a trend of shifting to hi-tech products through the use of artificial intelligence, robot technology, and big data that is utilised at every stage of the production process. The 17th Saigon Autotech & Accessories exhibition will take note of global trends occurring in technology in order to fully meet the development needs of the automobile-motorcycle and supporting industries based in the nation. Along with the participation of 11 international partners from Asia and Europe, foreign businesses participating in the event are expected to increase by 15% to 20% compared to previous exhibitions. Enterprises will be able to display and introduce their products in an area of 15,000 square metres across 500 booths. Overall, the event is expected to attract 15,000 visitors. Contingent of US footwear importers to hold online trade exchange with local firms An online trade exchange is scheduled to be held from May 28 to May 30 with the participation of 60 footwear importers from the United States, with the aim of supporting domestic footwear enterprises promote the export of footwear products to the US market, according to the Ministry of Industry and Trade (MoIT). The event is set to be jointly held by the MoIT, the Vietnamese embassy’s trade office based in the United States, and the Footwear Distributors and Retailers of America.  Throughout the duration of the event, both representatives of state management agencies and industry associations from both sides will be granted a platform to provide updated information relating to the US footwear market in the context of the novel coronavirus (COVID-19) pandemic. Moreover, participants will be able to assess the export prospects and adaptability of the ever-changing landscape, as well as introducing the nation’s plans for developing the footwear industry and intensifying trade exchange activities moving forward in the footwear sector in relation to the US market, according to the Vietnam Trade Promotion Agency. Indeed, it is anticipated that the trade exchange will draw the participation of between 60 and 80 domestic footwear enterprises. With 2019 being considered a successful year for footwear exports due to the sector’s revenue enjoying a surge of 12.8% to US$18.3 billion against the same period from the previous year, the US now makes up the largest export market with a value of US$6.65 billion, an increase of 14.2%. Following this, the US has remained as the leading importer of Vietnamese footwear products during the first quarter of the year with a turnover of US$1.56 billion, an annual increase of 10%. Despite this, a number of contracts have yet to be finalised in the second and third quarters of the year. This can largely be attributed to a decline in consumption within the US market. Aside from a fall in order numbers, many foreign partners have suddenly cancelled orders, leading to numerous difficulties for local businesses. It is hoped that through the event both Vietnamese enterprises and US importers will be able to gain greater insights into the needs and capacities of each other, seize upon co-operative opportunities, and quickly respond to trade and market developments due to the demand for footwear in the US market predicted to bounce back once the COVID-19 epidemic is eradicated. Export of processed industrial goods drops 20% in April According to the Ministry of Industry and Trade, Vietnam's export revenue in April was estimated at US$19.7 billion, down 18.4% compared to March and down 3.5% over the same period last year. Remarkably, the processing industry dropped sharply by 20% comparing to March, estimated at US$16.4 billion. Statistics showed that exports of computers, electronic products and components decreased by 10.5% compared to March 2020, reaching US$3.3 billion. Telephones and accessories decreased by 37.9%, reaching US$3.3 billion. In addition, exports of textiles and garments decreased by 18.8%, reaching US$1.9 billion, while other machinery, equipment, tools and spare parts decreased by 8.3%, (US$1.8 billion); footwear down 6.6%, (US$1.3 billion); wood and wooden products dropped by 13.8%, (US$850 million). To support enterprises to overcome the COVID-19 epidemic in the coming time, Minister of Industry and Trade Tran Tuan Anh suggested that ministries, branches and businesses should continue to take advantage of the free trade agreements, thereby continuing to improve the cooperation frameworks with these supply chains and partners in the region and around the world. In addition, he also emphasised the need to improve policy frameworks that promote supply chain mechanisms and supply chains, both domestically and internationally, as well as accelerate the implementation of the Politburo's Resolution No.23 on industry, and Government's Decree No.111/CP on supporting industry. HCMC reclaims over VND1.8 trillion from Dai Quang Minh HCMC has reclaimed over VND1.8 trillion in unpaid land-use fees from Dai Quang Minh Real Estate Investment JSC, which developed four key road projects in exchange for land in the Thu Thiem new urban area project in District 2. The city has assigned the relevant agencies to consult with the Government Inspectorate on calculating the interest due on the unpaid land-use fees, HCMC Chairman Nguyen Thanh Phong said at a web meeting with the prime minister on May 8. Phong also presented a report on the application of the Government Inspectorate’s conclusions on the Thu Thiem project. Also, the city is auditing all build-transfer projects in the Thu Thiem new urban area, he remarked. After the inspectorate’s conclusions were announced, the municipal government established a working team to launch plans to deploy them and direct the relevant agencies to promptly apply them, he noted. Organizations and individuals guilty of shortcomings with the project have admitted their failures, the local media reported. Under the Government Inspectorate’s report on its conclusions, issued on June 26, the HCMC government was asked to pay the fees plus interest to the State budget, as the city’s use of land as a means of payment for the construction of the four roads without prior land price management or approval of the land use are illegal.  HCMC reclaims over VND1.8 trillion from Dai Quang Minh HCMC has reclaimed over VND1.8 trillion in unpaid land-use fees from Dai Quang Minh Real Estate Investment JSC, which developed four key road projects in exchange for land in the Thu Thiem new urban area project in District 2. The city has assigned the relevant agencies to consult with the Government Inspectorate on calculating the interest due on the unpaid land-use fees, HCMC Chairman Nguyen Thanh Phong said at a web meeting with the prime minister on May 8. Phong also presented a report on the application of the Government Inspectorate’s conclusions on the Thu Thiem project. Also, the city is auditing all build-transfer projects in the Thu Thiem new urban area, he remarked. After the inspectorate’s conclusions were announced, the municipal government established a working team to launch plans to deploy them and direct the relevant agencies to promptly apply them, he noted. Organizations and individuals guilty of shortcomings with the project have admitted their failures, the local media reported. Under the Government Inspectorate’s report on its conclusions, issued on June 26, the HCMC government was asked to pay the fees plus interest to the State budget, as the city’s use of land as a means of payment for the construction of the four roads without prior land price management or approval of the land use are illegal. Vung Tau Airport to be rebuilt into urban area After being relocated to Go Gang Island, the existing Vung Tau Airport in the city center will be developed into an urban area. The standing board of the Party Committee of Ba Ria-Vung Tau Province has met with representatives of a consortium comprising Van Phu-Invest Investment JSC and VCI Investment JSC, and of consulting firms to discuss the development of Hai Dang new urban area and another residential area at the existing airport in Vung Tau City. The provincial government stated that the consortium had earlier written to the province seeking approval to study and invest in Go Gang Airport in Long Son Commune. Besides this, the two firms proposed developing the two residential areas. As for the Vung Tau airport, which covers some 172 hectares of land, the consortium proposed building a new urban area comprising a 35-hectare compact city, a 46-hectare central park, a 24-hectare transit and trading service complex, a 20-hectare financial and technology center and a 25-hectare complex. The standing board praised the idea, calling on the consortium to carefully assess the density of the population, the number of vehicles and the traffic flow at the projected area to work out a solution for traffic connections and the construction of parking lots. Apart from this, the consortium should reconsider the feasibility of constructing a financial center, the standing board said, suggesting gathering branches of banks in the province at the center. Nguyen Hong Linh, secretary of the provincial Party Committee, told the relevant agencies to add the urban area project at the existing airport to the province’s list of key projects to speed up preparatory procedures and promptly remove obstacles to progress, Nguoi Lao Dong newspaper reported. Many urban traffic experts threw their support behind the relocation of Vung Tau Airport to Go Gang Island, pointing out that moving the airport from the city center would contribute to the establishment of new urban areas in both parts of Vung Tau. HCMC to launch tender for Thu Thiem 4 Bridge The government of HCMC has asked the Department of Planning and Investment to map out a plan for launching a tender to choose an investor for the Thu Thiem 4 Bridge project, under the public-private partnership format, Tuoi Tre newspaper reported. Meanwhile, the Department of Planning and Architecture was assigned by city vice chairman Vo Van Hoan to work with the Department of Transport, the government of District 7 and consulting firms to ensure an optimized connection between the bridge and the Nguyen Van Linh-Huynh Tan Phat and Tan Thuan 2-Nguyen Van Linh intersections. The department is also in charge of working with consulting firms to complete the selected designs for the bridge, such as the "Vietnamese bamboo" option. The Thu Thiem 4 Bridge, which will connect District 7 and Thu Thiem Peninsula in District 2, is nearly 2.2 kilometers long and 28 meters wide, with six lanes and two pedestrian sidewalks. The cost is estimated at roughly VND5.2 trillion. It is expected to be in service for up to 100 years, with the capacity to handle 7-magnitude earthquakes and vehicles driving across it at a maximum speed of 60 kilometers per hour. The bridge will have an iconic architectural design and become a highlight for the two districts. It will cross the Saigon River and link to the Thu Thiem New Urban Area and is expected to ease traffic congestion between the city center and its southern districts, accelerating the growth of the urban area and the city’s socioeconomic development. Under the city’s plan, five bridges and a tunnel will be built to connect Thu Thiem Urban Area with other parts of the city. Among them, the Thu Thiem 1 Bridge and the Saigon River tunnel have been opened to traffic. Meanwhile, work on Thu Thiem 2 Bridge, requiring almost VND3.1 trillion in investment, began in 2015 but has not been completed due to site clearance obstacles in District 1. HCMC works on plan to build fifth metro line The HCMC Management Authority for Urban Railways (MAUR) has completed a prefeasibility study for the first phase of the city’s fifth metro line project, reported Thanh Nien newspaper. The municipal government in late April asked the HCMC Department of Planning and  Investment to coordinate with the relevant agencies to consider the project’s prefeasibility study in the first phase, according to MAUR. The study will be submited to the prime minister for consideration this year before being sent to the National Assembly for approval. The Metro Line No.5 in its first phase will run from Bay Hien Intersection in Tan Binh District to Saigon Bridge, stretching some 8.9 kilometers. It is projected to connect with the city’s other metro lines in the years to come, such as Metro Line No.1 at Saigon Bridge, Metro Line 3b at Hang Xanh Intersection, Metro Line No.4 at Phu Nhuan Intersection, Metro Line 4b at Hoang Van Thu Park and Metro Line No.2 at Bay Hien Intersection. According to the latest data from Transport Engineering Design Inc. based on a study report from Spain-based ICOM consulting firm, the fifth metro line will include a 7.46-kilometer-long underground section and a 1.43-kilometer-long elevated one, with eight stations. The project requires some US$1.66 billion in investment, equivalent to VND38.7 trillion, jointly backed by the Spanish Government, the Asian Development Bank, the European Investment Bank and German development bank KfW. It is scheduled for construction between 2025 and 2029 and is slated for operation in 2030. Also, MAUR is working with the Korea Eximbank and some South Korean investors on the signing of a memorandum of understanding to begin the project’s second phase, under the public-private partnership format. Transport operators oppose toll fee hike proposal Many transport operators have voiced their objections to the Ministry of Transport’s proposal to increase the toll fees for some build-operate-transfer (BOT) road projects, insisting that the fee hike in the current climate is unreasonable. Nguyen Van Quyen, chairman of the Vietnam Automobile Transport Association, stated that as many transport firms are facing difficulties caused by the coronavirus pandemic, it is unfeasible to hike the toll fees at this time. These transport companies have just resumed operations as the pandemic has been brought under control, so the volume of goods and customers remains low, leading to a low frequency of transportation, the local media reported. As such, the Ministry of Transport should carefully consider proposals to raise the fees across multiple BOT road projects during a time of hardship, he remarked. Echoing the view, Khuc Huu Thanh Hai, director of Dat Cang Transportation Trading and Services JSC in Haiphong City, noted that the low frequency of transportation and the decline in customers have affected transport companies heavily, while toll fees for BOT road projects and road maintenance fees are burdening them in addition to the hardships triggered by Covid-19. If the fees are raised to support investors in BOT projects, other firms active in various fields will also be affected heavily, Hai stressed. He added that the fees for BOT road projects account for a large proportion of transport costs, at some 40%. At this time, the State should not raise these fees, he said, suggesting a fee hike when transport operations rebound and the country’s economy recovers fully. Earlier, the Ministry of Transport proposed the Government increase the toll fees for some BOT road projects to help the investors in these projects who have been affected by Covid-19 and reported a sharp drop in revenues. Danang seeks ways to stimulate tourism As localities are stimulating domestic tourism under the recent direction of the prime minister, tourism businesses in the central city of Danang have proposed pricing promotions and updated tourist attractions to solicit guests this summer. This information was unveiled at a meeting on May 12, on ways that tourism businesses and authorities can stimulate tourism in the post-Covid-19 world. The Tourism Department should ask the municipal People’s Council to offer free entry to tourist sites such as Marble Mounts and Champa Museum as well as visa fee exemptions, suggested Cao Tri Dung, chairman of the Danang Tourism Association. “Hotels and resorts should offer large discounts,” stated Dung, who is also the chairman of Vietnam TravelMart Co. “Businesses specializing in travel, accommodation and tourist sites can band together to offer tourism packages to encourage guests to visit over the summer and during the year-end festive season,” he said. Meanwhile, Nguyen Hai Dang, director of Vietravel in Danang City, noted that these groups should organize trips to localities to directly offer their products. “The city should also offer free parking and relax inspections to create favorable conditions for those serving the tourism transportation industry, so they can recover after the Covid-19 crisis,” remarked Ngo Tan Nhi, general director of Vitraco Co. and vice president of the Danang Tourism Transport Society. Meanwhile, Nguyen Duc Quynh, deputy general manager of Furama Resort Danang, proposed that Danang rebrand itself quickly so that sensitive tourism source markets like South Korea will return to normal after the epidemic. At the meeting, Truong Thi Hong Hanh, director of the Danang Tourism Department, reported that her department is planning many programs to help businesses recover as fast as possible. "However, businesses should not be too optimistic. They must always ensure the safety of tourists,” stressed Hanh. Accordingly, the city’s tourism industry will initially focus on attracting tourists from nearby localities as they can easily travel to Danang City. These localities include Quang Tri, Quang Binh, Thua Thien-Hue, Quang Nam and Binh Dinh. Visitors often travel in groups, with families or as couples with their own means of transportation. Leisure packages, including health care, with reasonable prices are suitable for guests who prefer short holidays. In addition, Danang city is cooperating with domestic airlines to serve travelers from localities with direct air links to the city, such as Hanoi, HCMC, Can Tho, Haiphong, Quang Ninh and Gia Lai. The memorandum of understanding between the city's People's Committee and Vietnam Airlines will be applied to run appropriate policies and incentives for passengers on flights from Hanoi and HCMC and on transit flights to Danang. At the same time, the city is coordinating with Viettravel to actively attract local visitors from Hanoi, HCMC and the Mekong Delta region to Danang. Regarding entertainment programs, the Department of Tourism, in coordination with the Department of Industry and Trade and the Danang Tourism Association, will run the "Danang Thank You" program with promotions related to tours, accommodation, dining, shopping, health care, air fare, ground transportation and so on. The city will also organize an overnight town feature in Ngu Hanh Son District, apart from developing community tourism in the Tho Quang-Man Thai area and at Nam O Beach. Nguyen Thi Hoai An, deputy director of the Danang Tourism Promotion Center, added that the city’s tourism industry plans to invite KOLs to join these stimulation programs. Danang will also have its own song to promote tourism. Viet Valley Ventures to invest in three local startups Newly founded venture capital firm Viet Valley Ventures has announced its investments in three Vietnamese technology startups.  Under agreements signed on May 12, JobsGo JSC, Vietnam Windsoft Technology Company (Windsoft) and Ecommerce Easy Company (EcomEasy) will receive US$200,000-US$500,000 in funding each. The specific investment amount remains unknown. Aside from providing financial investment, the company will offer consultancy services on development orientations to these startups. Nguyen Khanh Trinh, managing director of Viet Valley Ventures, told the Saigon Times that the three startups’ operations are associated with technology. They hold potential for further growth, have a low cash burn rate and are expected to earn immediate profits. The venture capital company made a thorough analysis before deciding to back these startups, he added. Viet Valley Ventures was founded last year by senior tech executives working in Silicon Valley with an initial investment of US$3 million and seeks to offer financial and tech support to local startups. Among the three startups, JobsGo is a mobile recruitment platform established in Vietnam in 2018 with one million users to date. It has attracted 20,000 recruiters and recorded three million job applications. WindSoft specializes in providing software solutions and mobile applications to help businesses with management and digital transformation to increase sales and enhance customers’ experiences. EcomEasy offers ecommerce marketing and sales solutions to companies. It currently runs four offices in Vietnam, Thailand and Singapore. Vietnam’s economic growth will rebound strongly in 2021: IMF The International Monetary Fund (IMF) has forecast that Vietnam’s economic growth will slow to 2.7% this year due to the coronavirus pandemic but may rebound strongly to 7% next year. According to IMF representative in Vietnam Francois Painchaud, the country’s strict measures to contain the coronavirus, the global recession and weak domestic demand are elements that will slow its economic growth this year from an average of roughly 7% in 2018 and 2019. However, Painchaud noted that growth is expected to recover as preventive measures are lifted, reaching 7% in 2021, supported by monetary and fiscal easing, the country’s relatively strong macroeconomic fundamentals and a gradual recovery in external demand. Speaking at a meeting of the government last week, Prime Minister Nguyen Xuan Phuc said the Vietnamese Government is determined to achieve an economic growth rate this year higher than the IMF’s estimate of 2.7%, possibly over 5%. Standard Chartered earlier lowered Vietnam’s economic growth forecast in 2020 to 3.3%. The bank forecast that growth would rebound to 6.5% in 2021 given an expected recovery in demand. Meanwhile, the Asian Development Bank predicted that the coronavirus pandemic could drop Vietnam’s growth to 4.8% this year, but the country would remain one of the fastest growing economies in Asia. Long An converts 200 hectares of forestland for solar power projects The Long An government has approved the conversion of over 223 hectares of forestland, with some 200 hectares being earmarked for the development of solar power projects. The provincial government on May 12 noted that it will allow the conversion for solar power projects in Binh Hoa Nam Commune in Duc Hue District. Specifically, the provincial government allowed Hoan Cau L.A Co., Ltd, to convert over 47.4 hectares of forestland to develop Solar Park 01 and permitted Vietnam Solar JSC to build Solar Park 02 on 48.7 hectares of forestland set for conversion. Meanwhile, Long An Solar Park Corporation and Solar ENERGY LA JSC were allowed to convert over 48.3 hectares and 48.4 hectares of forestland for the construction of Solar Parks 03 and 04, respectively. Apart from these four firms, other enterprises seeking to invest in residential areas, gas and oil and seafood farming were also permitted to convert forestland for their purposes. Under the decision, the firms allowed to convert forestland must plant new forests in compensation for the forestland lost, or make payments to plant forests and fulfill all relevant financial obligations in line with prevailing regulations. However, due to the lack of land for planting new forests, most of these firms have offered to make payments, the local media reported. Data from the Long An Department of Agriculture and Rural Development indicated that Long An Province has over 22,600 hectares of forestland, with 21,000 hectares of plantation forests and over 800 hectares of natural forests. Over 18,000 HCMC-based household businesses stop operations The coronavirus pandemic has put a crimp on household businesses in HCMC, forcing over 18,620 of them out of business over the first four months of this year. Tax collections from household businesses have plunged due to the impact of Covid-19, the disease caused by the coronavirus, according to the HCMC Tax Department. Between January and April, the number of household businesses registering for suspension owing to the pandemic accounted for 7.5% of the city’s total operational ones. The city’s tax department has offered an exemption from tax payments of VND12.7 billion each month to these suspended household businesses, the local media reported. Apart from this, as a series of individual and household businesses suspended their operations following the prime minister’s Directive 15, tax collection revenue from these businesses dropped by an additional VND82.8 billion in April. As for enterprises active in the city, the first four months of 2020 saw over 1,520 firms register for dissolution, soaring by 54.8% year-on-year. Meanwhile, the city attracted a mere US$1.05 billion in foreign investment, dipping by 33% against the year-ago period. The HCMC Tax Department noted that stagnant business activities due to the social distancing measures to prevent the spread of Covid-19 drove the total tax revenue in the four-month period down by 7.9% year-on-year. The total revenue met only 30% of the target. In January-April, the city witnessed revenue from multiple types of taxes tumble. Corporate income tax revenue, for example, fell by 11.08% year-on-year, while the revenue from value added taxes inched down by 6.3%. Industrial zone developers reap profits despite pandemic While many businesses in various fields have been hit hard by the coronavirus pandemic, industrial zone developers in Vietnam have been flourishing. This sector is expected to maintain its growth as the country is seen as an attractive investment destination, especially after the Covid-19 crisis is over. Sonadezi Corporation, which has a long history in the investment, development and trade of industrial park infrastructure in Vietnam, recently announced that its net revenue in the first quarter of the year expanded nearly 11% to over VND1 trillion and net profit inched up a staggering 42% to over VND150 billion over the same period last year. Of these, Sonadezi’s revenue from industrial zone services rose by 66% to VND293 billion. Its after-tax profit totaled some VND271 billion, up 51% versus the year-ago figure, mainly thanks to the lease of Chau Duc Industrial Park. Overall, Sonadezi wrapped up the first quarter reaching 30% of its 2020 profit target. Nam Tan Uyen Joint Stock Corporation, another industrial zone developer, recorded its Q1 net revenue jumping by 6.4% to exceed VND41 billion, with sales generated from real estate trade activities reaching VND31 billion. Long Hau JSC (LHG) also reported growth in revenue and profit in Q1, with net sales edging up some 19% to VND206 billion and gross profit surging over 20% to more than VND93 billion against the 2019 figures. LHG’s revenue from offering land lots for lease to develop infrastructure rose 21% to VND159 billion, contributing 77% of the developer’s total revenue. The firm posted a 22% increase in revenue obtained by leasing industrial parks and residential areas, at nearly VND21 billion. Other developers in the field including Phuoc Hoa Rubber JSC and Tan Tao Investment and Industry Corporation also saw their profits rising drastically. Given the disruptions in the global supply chain caused by Covid-19, experts forecast that many firms may gradually move their factories out of China to reduce their reliance on this country. Vietnam, among other Southeast Asian nations, holds great potential to become a safe investment destination in the years to come, especially as it has been praised for its success in combating Covid-19. Vietnamese tra fish exports to China, U.S., EU to fare well: officials China, the United States and the European Union are likely to remain the main consumers of Vietnam’s tra fish (pangasius) products for the next five years, making up a staggering 65% of the Southeast Asian country’s total exports, stated officials. Despite many fluctuations, the three markets remain sustainable in terms of the volumes and revenues of Vietnamese tra fish exports, according to Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP). China, the United States and the European Union have long been among the top three buyers of Vietnamese tra fish products based on earnings, remarked Hoe. He added that local tra fish producers have been able to satisfy more stringent requirements for food quality and safety for the three markets. The recognition of the Vietnamese tra fish industry’s equivalence by the U.S. Department of Agriculture is evidence that Vietnam meets U.S. standards, he pointed out. Also, the long-awaited free trade agreement between Vietnam and the European Union, better known as EVFTA, which will soon go into effect, will put Vietnamese tra fish at a distinct advantage on the European market over the next five years, noted the official. The tariff on Vietnam’s frozen tra fish fillet shipments to the European Union will fall to zero from the current 5.5% in the next three years, stated Tran Dinh Luan, head of the Vietnam Directorate of Fisheries, at a conference in the southern province of An Giang last week. Luan said it will take some seven years for Vietnam’s processed tra fish fillet products to have their export tariffs lowered to zero from the current 7%. The trade pact serves as a catalyst for growth, which will open up ample opportunity for Vietnamese tra fish processors to establish a foothold in the European market of some 508 million people with a gross domestic product value of roughly US$18 trillion, he added. The Association of Southeast Asian Nations (ASEAN) is also poised to be a promising market for Vietnamese tra fish products until 2025, according to VASEP General Secretary Hoe. He explained that the 2018-2019 period had seen positive growth in tra fish exports to the ASEAN, with 2018 surging by 41.5% from a year earlier to reach US$202.6 million. Last year saw a slight decline of 3.6%, but the ASEAN market still ranked fourth, at US$195.4 million, behind China, the United States and the European Union. Brazil and Middle Eastern countries are predicted to be major consumers of Vietnamese tra fish in the years to come as well. However, technical bottlenecks and barriers need to be resolved. For example, Brazil is a potential market for Vietnam’s tra fish exporters to South America, but the past two years saw declines in earnings. Brazil expects Vietnam to open its doors for its agricultural products, such as beef and cantaloupe, according to the official. He pointed out that Brazilian authorities have thus set higher technical barriers for Vietnamese exporters compared with those from the United States and the European Union to slow down the growth of Vietnamese tra fish products. “Brazil only accepts tra fish products without any additives,” noted Hoe. He explained that this requirement alone has already hurt Vietnamese tra fish processors as it drives up the prices of their finished products, making it harder to attract customers. VNN