VIETNAM'S BUSINESS NEWS HEADLINES JUNE 17 01:46         Vietnam's aquatic exports drop 6 percent in five months Vietnam earned 570 million USD from exporting aquatic products in May, raising the total figure in the first five months of this year to nearly 3 billion USD, a year-on-year decline of 6 percent.  Especially, the export of tra fish to the EU plunged 36 percent year-on-year to 53.4 million USD. The shipments to this market are forecast to continue decreasing in the next several months. According to the Vietnam Association of Seafood Exporters and Producers, in the five-month period, only shrimp maintained a growth rate of nearly 4 percent with an export value of nearly 1.2 billion USD. Seafood exports were estimated at over 1.1 billion USD, down over 4 percent over the same period in 2019. The drop in aquatic exports was blamed for the impact of COVID-19, which hit almost all export markets of Vietnam like China, the Republic of Korea, the EU countries and the US./. Vietnam could achieve economic growth of 5.2% this year The national economy is likely to enjoy a stellar growth rate of 5.2% this year if all-out efforts are made to achieve the figure, said Hoang Van Cuong, a National Assembly (NA) deputy from Hanoi and Vice Rector of the National Economics University (NEU), during the 14th NA’s ninth session in Hanoi on June 15. During his address, Cuong stated that the country has served as an exemplary model in terms of COVID-19 prevention and control.  With regard to the economy, while many major economies have been suffering from negative growth, the nation has emerged as a leader in terms of economic growth. The NEU has also published research forecasting that the Vietnamese economy could reach 4.8%, or even 5.2%, for the year providing the Government is willing to exert greater efforts to achieve the goal. In order to turn the opportunity into reality, the Vice Rector outlined that special measures must be taken to turn foreign investors into a pillar of domestic manufacturing industries. Prime Minister Nguyen Xuan Phuc has set about creating a special working group to proactively search for investors, while the Government needs to select and support a number of local enterprises that have the potential to receive foreign investors, therefore turning them into a partner of domestic corporations. As a means of creating a breakthrough development, according to Cuong, it remains necessary to promote innovation and creativity within management, with evaluation mechanisms based on compliance through processes and regulations needing to be replaced with results-based evaluation mechanisms. Indeed, innovation within the economy means having to discover ways in which to solve other problems faster whilst achieving better results at a greater rate of efficiency, he noted. Proposing a number of solutions aimed at contributing to socio-economic development in the near future, Mai Thi Phuong Hoa, an NA deputy from the northern province of Nam Dinh, said that many investors consider the nation to be a safe destination. Therefore, the country can enjoy plenty of opportunities and advantages in which to welcome investment waves following the novel coronavirus. She suggested that in taking this opportunity, there should also be a form of investment promotion launched which is suitable for global groups that enjoy a strong financial and technological capacity and who are highly interested in the Vietnamese market. There should be new incentives introduced in the field of competitive investment compared to other countries, Hoa stressed, adding the necessity of being flexible whilst maximising the decentralisation and authorisation of the Government and PM Phuc so he can take the initiative when negotiating with investors. Alongside these breakthroughs, it is the PM’s responsibility to the National Assembly and the National Assembly Standing Committee. It is therefore seen as imperative to give more resources to investment in strategic infrastructure facilities which play a role in connecting regions and inter-regions such as highways, airports, ports, telecommunications infrastructure, information technology, and strong e-commerce development, Hoa added./. Solutions aimed at removing “bottlenecks” for post-pandemic economic recovery Minister of Industry and Trade Tran Tuan Anh has pointed out the three "bottlenecks" that exist in the road to economic recovery following the novel coronavirus (COVID-19) epidemic, largely in labour supply sources, input supply, and the general market. His remarks came during the 14th National Assembly (NA)’s ninth session held on June 15 to discuss socio-economic development, emphasising that in order to be proactive in taking measures to restore and promote economic activities in the period after the COVID-19 pandemic, it is imperative to be able to effectively deal with three major issues.  Firstly, it is essential to reorganise supply chains for industrial production, therefore serving to create sustainability and greater flexibility, while avoiding dependence on a few supply chains, partners, markets, and determining the focus placed on the supporting industry sector. Moreover, steps can be taken such as restructuring chains to serve industrial production, especially some major local manufacturing and processing industries such as garments and textiles, footwear, electronics, and wood products in a more sustainable manner with partners such as Japan, the Republic of Korea, and India. Secondly, a particular focus should be placed on promoting export development, taking advantage of opportunities from recently signed free trade agreements, most notably the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the European Union – Vietnam Free Trade Agreement (EVFTA). This should be done alongside immediately reconsidering scenarios for this year’s import and export growth in an effort to bolster exports. Furthermore, there should be new forms of trade promotion implemented to enhance trade links between Vietnamese firms and their partners abroad who are keen to import from markets that have seen an early recovery, such as China, Taiwan (China), the Republic of Korea, and Japan. In addition, local firms must gradually expand into other markets in line with how the epidemic situation evolves. The Ministry of Industry and Trade and Amazon are set to deploy a broad range of events such as conferences, seminars, and training courses, to support the export activities of Vietnamese enterprises through their e-commerce platforms to try and build significant brands for domestic products and industries, the Minister said. Thirdly, Minister Tuan Anh suggested focusing on stimulating consumption domestically whilst accelerating the restructuring of the domestic market and developing e-commerce locally now the epidemic has been controlled. Particularly, the Ministry of Industry and Trade has made efforts to focus on a "project to develop an e-commerce application platform" that can promote the connection between manufacturers and distributors on the basis of closely linked information from manufacturers to the distribution system whilst receiving State support. Finally, it can be considered necessary to continue with activities aimed at connecting supply and meeting the demand of goods, in order to facilitate the consumption of domestically produced items through both traditional and modern distribution channels. This can be done by implementing schemes which encourage Vietnamese people to priotise the use of local goods, he emphasised./. Vietnam could become leading global rice exporter this year It is likely that the nation will become the world’s main rice exporter this year, Minister of Industry and Trade Tran Tuan Anh said on June 15 during the ongoing ninth session of the 14th National Assembly in Hanoi. This comes after the country’s rice exports surged by 31.7% throughout the first two months of the year due to other nations increasing their purchases of grain whilst also boosting storage following the emergence of the novel coronavirus (COVID-19) epidemic.   Due to the potential for this sudden increase to lead to a shortage of supplies domestically, Prime Minister Nguyen Xuan Phuc moved to suspend rice exports until the end of May. Upon re-evaluating the situation, the Government leader later consented to allow the resumption of rice exports in May while working alongside authorities in 13 localities based in the Mekong Delta. As a result, the country successfully exported 3.06 million tonnes of rice at a value of US$1.48 billion during the first five months of the year, a year-on-year increase of 11.8% in volume and 25.44% in value, respectively. "It can therefore be affirmed that we have achieved the goal of sticking to the rice export schedule to ensure absolute national food security in the most complicated period of the the COVID-19 epidemic," the minister stated./. Bac Giang stabilises lychee growing area to guarantee quality The main “thieu” lychee harvest is on the horizon, with the fruit helping farmers earn more stable and higher incomes compared to other crops. Bac Giang is well-known for its “thieu” lychee, but has decided to stabilise the growing area to ensure quality. Covering an area of four hectares, Tran Van Lam’s “thieu” lychee orchard can produce about 400 tonnes a year. He revealed that he pockets some 26,000 USD annually from the fruit, making lychee one of the most profitable crops there is. On average, each household in Nam Duong commune in Luc Ngan district owns three or four hectares of lychee. Most are satisfied with their current earnings, but to ensure quality they should stabilise their growing area. District leaders in Luc Ngan recognise that to ensure quality it is necessary to stabilise the growing area, especially as the sweetness of the lychee differs from place to place. This year, Bac Giang has over 28,000ha of lychees with an estimated output of over 160,000 tonnes, an increase of 10,000 tonnes year-on-year.The province’s policy is to stabilise the growing area while increasing productivity and quality./. Promotion campaign launched to boost northwestern's tourism A promotion campaign to lure visitors to Vietnam’s northwestern region took place in Hanoi on June 12. The event is a joint effort between the Vietnam Tourism Association and 8 expanded northwestern provinces. It drew the participation of over 150 travel agencies nationwide. The programme aims to enhance regional tourism exploitation, contributing to improving local people’s lives. A fact finding tour to eight expanded northwestern provinces, namely Hoa Binh, Son La, Dien Bien, Lai Chau, Lao Cai, Yen Bai, Phu Tho will be held from June 12-16./. Quang Binh offers large discounts to boost tourism Authorities in the central province of Quang Binh have approved a plan to cut entrance fees to a series of natural beauty spots in half from now till the end of the year. The large discount, which will be applied to tours of some famous caves in the area, aims to attract more visitors and stimulate tourism development in the province after the COVID-19 pandemic, according to the provincial People's Council at a working session this week. The meeting was held to discuss urgent issues including those related to tourism challenges for the rest of 2020 and finPhong Nha Caved solutions to help tourism enterprises overcome obstacles amid the global COVID-19 pandemic. Specifically, tours that take visitors to will have entrance fees reduced from 150,000 VND (6.5 USD) to 75,000 VND (3.2 USD) per person. The rate for entrance fees to Tien Son and Nuoc Mooc caves will be down from 80,000 VND to 40,000 VND each. Fees for visiting Thien Duong and Me Bong Con caves are discounted from 250,000 VND to 125,000 VND, respectively. Meanwhile, the cost for other tours will also be reduced by 50 percent including the route through Rao Thuong - En – Nuoc Lanh caves which is now at 240,000 VND and Tu Lan cave system, which is 140,000 VND for four days and three nights visiting a total of seven tourist spots. In particular, those who want to conquer Song Doong – the largest cave in the world – will now have only to pay 4.4 million VND for the entrance fee per person. Moreover, tourists will benefit from discounts on transportation costs, accommodation and food at restaurants during the tours, according to the provincial tourism authority. Quang Binh province's Department of Tourism said that, since the beginning of the year, due to the effects of the pandemic, the number of tourists to the locality dropped sharply but it has begun to recover since the social distancing measures were eased and the province opened its doors to welcome visitors back. The department said the number of visitors at weekends has started to increase. It revealed an approximate number of 35,000 people visiting the province during the 45th anniversary of the Liberation of the South and National Reunification Day on April 30 and May Day. The visitors mainly came from Hanoi and neighbouring provinces. The provincial tourism authority has directed tourism businesses in the province to change the structure of the tourist service market from serving foreigners to focusing on domestic customers and diversify tourism products with more reasonable prices to meet demands of tourists with new conditions of operation due to the pandemic./. Trade counselor advises firms on ways to optimise EVFTA Vietnamese Trade Counsellor to Germany Bui Vuong Anh has outlined important notes for domestic enterprises to make the most of the EU-Vietnam Free Trade Agreement (EVFTA). The Vietnamese National Assembly's ratification of the EVFTA marked a fairly good start but it is more important for Vietnamese companies to explore ways to optimise benefits from the trade deal to boost exports to Germany, according to Anh. The EVFTA supplements the World Trade Organisation (WTO), Anh told the Vietnam News Agency's correspondents, adding that Vietnam and Germany have basically completed required procedures to set up a joint committee for economic cooperation this year. Germany plays a vital part in the EU and it is a major importer of most of Vietnam’s key products shipped to the EU, he said. Germany has become one of Vietnam’s leading trade partner in recent years, with the two-way trade exceeding 15 billion USD in 2019, of which exports to Germany hitting nearly 11 billion USD. The trade counselor urged domestic producers to enhance productivity and use of advanced technology in production while adding values for their products and meeting Germany’s health and food safety requirements. They should bring into full play the special mechanism from both the EVFTA and the Vietnam – Germany joint committee for economic cooperation to gain broader access to the German as well as EU markets, he added./. Indonesian consumer confidence plunges in May Indonesia’s consumer confidence index (IKK) dropped to 77.8 in May from 84.83 in the previous month, indicating consumer pessimism about the domestic economy’s prospects, a Bank Indonesia (BI) survey has shown. As of May 27, more than 1.79 million people had lost their jobs as many nonessential businesses shut down to comply with government restrictions, according to data from the country’s Manpower Ministry. Meanwhile, the country’s economy grew by only 2.97 percent in the first quarter, the weakest since 2001, because of cooling household spending and investment during the COVID-19 pandemic. Consumer spending grew by just 2.84 percent year-on-year in the first quarter, much lower than the 5.01-percent growth recorded in the same period last year, according to the Jakarta Post newspaper. BI said household spending is the key pillar of the Indonesian economy, as it contributed about 58 percent to the country’s GDP in the first quarter alone. “For the next six months, however, consumers remain upbeat about economic conditions supported by the prospect of job availability and higher income as the COVID-19 pandemic subsides,” the newspaper quoted the report as saying. To support the country’s economic recovery, the government will widen the budget deficit to 6.34 percent of GDP this year to cover a stimulus package of Rp 677.2 trillion (47.7 billion USD) aimed at jump-starting economic recovery./. Thailand boosts domestic demand to revive tourism The Thai government will offer a scheme worth 20 billion baht (645,570 USD) to revitalise the tourism industry. The scheme is part of attempts to drive total tourism revenue to 1.23 trillion baht this year after achieving 520 billion baht in the first five months.  Of the goal, 402 billion baht should come from domestic receipts and 828 billion baht from international spending. Thai Tourism and Sports Minister Phiphat Ratchakitprakarn said a complete package, combining benefits from booking both hotel and airfare, will be submitted to the cabinet for approval next week. The ministry expects to stimulate 100 million domestic trips while the international market recovers slowly. Another stimulus package is tailored to 1.2 million medical personnel, village health volunteers and subdistrict health-promotion hospital workers. Phiphat said that during a meeting on June 12 of the Centre for COVID-19 Situation Administration (CCSA), there was discussion about bilateral agreements to let people between two countries travel without a 14-day quarantine, known as a travel bubble. The final proposal on the travel bubble will be submitted to the next CCSA meeting on June 17./. Malaysia's FDI rises 3.1 percent in 2019 Malaysia's foreign direct investment (FDI) increased 3.1 percent to 31.7 billion ringgit last year from 30.7 billion ringgit recorded in 2018, according to the Department of Statistics Malaysia (DOSM).  The country's direct investment abroad (DIA) also posted a growth of 26.5 percent to 26.1 billion ringgit last year. Chief statistician Mohd Uzir Mahidin said the higher FDI was mainly due to injection of equity from Japan to Malaysia in health activity. The foreign inflows were mainly channeled into services sector, particularly in health, real estate and financial activities, he added. Manufacturing sector was the second highest, mainly in the form of debt instruments and equity in refined petroleum and electric and electronic products, followed by the mining and quarrying sector. DOSM statistics also showed major contributors to FDI flows in 2019 were Japan, Hong Kong and the Netherlands. In terms of DIA, Mahidin said overseas investment rebounded after recording continuous decline since 2015 due to uncertainty in the global environment and subdued crude oil prices. Brazil became the top country for Malaysia's DIA, particularly investment in the oil and gas industry./. ASEAN, China to promote digital economy cooperation The Association of Southeast Asian Nations (ASEAN) and China will enhance cooperation in digital economy this year. Speaking at the virtual opening ceremony for the ASEAN-China digital economy cooperation year, Chinese Minister of Industry and Information Technology Miao Wei said the two sides will expand cooperation in 5G, the internet of things, artificial intelligence, industrial internet, as well as digital epidemic prevention. By 2025, ASEAN's digital economy is expected to increase from 1.3 percent of GDP in 2015 to 8.5 percent, ASEAN Secretary-General Lim Jock Hoi said. China is at the forefront of the development of digital infrastructure and is a valuable partner of ASEAN in promoting the development of the digital economy in the region, he added. During the January-May period, ASEAN was China's largest trading partner, with trade up by 4.2 percent year on year to about 241 billion USD, accounting for 14.7 percent of China's total foreign trade, Chinese customs data showed. Founded in 1967, ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam./. Hanoi launches promotion programme to boost consumption The Hanoi Department of Industry and Trade launched a concentrated promotion programme on June 12 to promote consumption. The programme is part of a series of domestic stimulus events in Hanoi in order to remove difficulties for businesses, reduce inventories, stimulate consumption, and increase goods and service revenue in 2020. The programme entitled “60 golden days – bustling shopping” will be held throughout June, July and November with a number of attractive promotional events. Notably, more than 600 enterprises are participating in the programme who have registered nearly 800 promotional events with discounts of up to 70 percent. It is expected that thousands of enterprises will participate in the programme by the end of July. A series of promotional events are being held in June, including the Vietnamese Products Week, Golden Promotion Day, and Vietnamese Fair, among others. July is expected to see a fair of exported goods and November will witness the annual Hanoi promotion month, among others./. Country’s largest seedling-growing district steps up production Farmers in Ben Tre province’s Cho Lach district are boosting production of seedlings for all kinds of crops to make up for those damaged by drought and saltwater intrusion during the just-ended dry season. The district, the country’s largest seedling producer, is entering the rainy season like the rest of the Mekong Delta. Nguyen Thi Hong from the district’s Tan Lieng commune said the number of seedlings she had grown this year was only equal to 60 percent of last year’s because of the saltwater intrusion and lack of water for irrigation. She was growing more to meet the market demand, she said. But a big difficulty was the shortage of plants required for grafting because of the damage caused by the drought and saltwater, she said. She had spent more than 150 million VND (6,500 USD) to buy water but still could not save many of her seedlings. Besides grafting, farmers here also produce seedlings by growing from rooted cuttings, seeds and air layering. To ensure they have plants for grafting now many farmers had to grow them elsewhere in the delta during the last dry season and transport them to the district. Dang Van Mi of the district’s Long Thoi commune said he had to grow plants in provinces like An Giang, Vinh Long and Dong Thap to ensure he would have plants available to graft seedlings to sell come the rainy season. Seedling prices have doubled from 12 months ago because of the lack of supply, according to traders. Many like jackfruit, avocado and coconut are in high demand now. Cho Lach produces more than 30 million seedlings a year with the main season being the beginning of the rainy season in May, according to the district’s Bureau of Agriculture and Rural Development. However, the output this year was only 10 percent of last year, said Bui Thanh Liem, head of the bureau. But farmers were increasing production and would have enough to supply to the market in two to three months, he said. District authorities have taken many measures to help farmers overcome the adverse impacts of the drought and saltwater intrusion, and taught them techniques to grow seedlings. The district’s seedlings, mostly for fruit trees, are sold all over the country./. Businesses join HCM City's demand stimulus programme Ho Chi Minh City is organising a number of activities to boost retail demand as local lives return to normalcy after the social distancing period. Nguyen Huynh Trang, deputy director of the HCM City Department of Industry and Trade, said many businesses had signed up for two-month promotional programmes designed to stimulate demand. Businesses in the programme can launch promotional activities and offer up to 100 percent discount (as opposed to the usual limit of 50 percent) as well as benefit from the programme’s general promotional activities in the media. The programme will be held until the end of July at most of the city’s markets, supermarkets and malls. Online businesses can also benefit from the programme. The total amount of goods signed up so far has reached over 146 billion VND (6.3 million USD) in value. The city is also working with other regional localities' departments of Industry and Trade to organise a trade fair to stimulate demand and promote the regions' respective strengths. The fair, to be held July 2 to 5 in Thu Duc district, will allow participating businesses to offer discounts higher than 50 percent. Around 500 stalls are expected to be set up. The first five months of the year saw a 4.9 percent year-on-year decrease in total retail and consumer service revenue, at 506.7 trillion VND, due to lower demand and a drop in tourism during the social distancing period. While total retail revenue saw an 8.4 percent increase at 331.5 trillion VND during the period, the growth rate was lower than the 13.7 percent growth rate in 2019 against the same period the previous year./. Thailand to collect nearly 100 million USD of VAT from e-commerce platforms Thailand’s Ministry of Finance has said the newly approved value-added tax (VAT) law on foreign e-commerce platforms in the country will rake in about 3 billion baht (97 million USD) revenue into the government's coffer. The Ministry's Revenue Department said at a press briefing on June 11 that it expects global e-commerce and digital platforms, Facebook, Uber or Netflix, to agree to abide by Thailand's new tax bill when it becomes law after a vote in the Parliament. Earlier, at the Cabinet meeting, ministers gave the green light to amending the Revenue Code to collect a value-added "E-Service" tax from foreign digital platforms that do not have a subsidiary company in Thailand. According to the department’s director-general Ekniti Nitithanprapas the law could allow the department to collect taxes from all foreign services of those platforms, such as movie watching, video games downloading, or taxi booking. Besides, the new law will empower the department to collect taxes from those businesses earning revenue from advertising on each platform. The law will, mainly, order those foreign entrepreneurs providing the services in Thailand to register and disburse the VAT similar to Thai businesses./. Philippines: Remittances may shrink 5 percent this year Governor of the Philippine central bank (BSP) Benjamin Diokno has said overseas remittances to the country could shrink 5 percent this year because of COVID-19. Remittances may fall to 28.6 billion USD from the record 30.7 billion USD last year. The central bank is closely monitoring the latest reports from the Philippine Overseas Employment Administration (POEA), the Department of Labour and Employment (DOLE), and the Department of Foreign Affairs (DFA) on the deployment, displacement, and repatriation status of overseas Filipino workers (OFWs). Earlier, DOLE said more than 1 million OFWs would be displaced by December 2021 due to the pandemic. Actual data shows that over 320,000 OFWs had already lost their jobs as of May and the figure is expected to double to nearly 610,000 by December. The World Bank has estimated that global remittances will be down 20 percent this year. The East Asia and Pacific region is expected to see a 13 percent decline, driven mainly by falling inflows from the US./. Telefilm 2020 expo set for HCM City in September The Vietnam International Exhibition on Film and Television Technology (Telefilm) 2020 is scheduled to take place in HCM City from September 17 to 19. The expo will be co-organised by the Adpex Joint Stock Company, the Department of Market Development and Science and Technology Enterprises at the Ministry of Science and Technology, the Vietnam Internet Association, the Vietnam Computer Association, and the Vietnam Digital Communications Association. It presents an opportunity for domestic film producers to access new technologies, learn of the latest trends in TV, and seek potential partners. Telefilm 2020 will feature displays in a wide range of categories, from screenplays, entertainment, music, and sports to technology programmes, virtual reality, and games. Businesses can choose the appropriate field to promote their business or find new partners and distributors, while staying abreast of trends. Seminars on radio and TV in the digital era, future TV technology trends, and business-to-business matching programmes will be held on the sidelines of the expo./. Thailand’s baht surges due to foreign inflows Thailand’s baht has surged past 31 per US dollar on the back of month-to-date net foreign inflows moving into local equities and bonds, a motion contrary to Thailand's economic outlook. The currency has strengthened by 2.7 percent against the dollar since the end of May, ranking third after Indonesia's rupiah and the Republic of Korea's won, according to the Bank of Thailand (BoT). The baht's value touched 30.82 at one point on June 11. Its value against the greenback has seen a sharp appreciation, surging from 33 in early April to pierce the 31-per-dollar threshold this month. The baht was Asia's top-performing currency in 2019, ending the year with a value of 29.90 to the dollar as investors perceived it as a safe haven because of Thailand's high current account surplus and foreign reserves. Chantavarn Sucharitakul, assistant governor for communications and corporate relations at the BoT, said the baht's appreciation is in line with the trend of regional currencies as the dollar weakens. Month-to-date net foreign inflows are valued at 5.8 billion baht moving into local equities and 23 billion baht into bonds, according to data from the Stock Exchange of Thailand and the Thai Bond Market Association./. Vietnam a gateway to ASEAN for EU: Italian news site An Italian news site ran an article on the Vietnamese National Assembly’s recent ratification of the EU – Vietnam Free Trade Agreement (EVFTA) and Investment Protection Agreement (EVIPA), after the European Parliament ratified the two documents in February. The www.affaritaliani.it site noted that for Vietnam, the agreements will open create important opportunity to access the European market, which already is the second export market of the Southeast Asian nation. Data of the Ministry of Planning and Investment shows that Vietnam’s export turnovers to the EU will increase by about 20 percent this year, 42.7 percent in 2025 and 44.37 percent in 2030, compared to the scenario without EVFTA. Sectors benefitting from this the most will be textiles, footwear, farm produce and fishery products, it said. The signing of these agreements also has a very significant regional value, the Italian site remarked, as Vietnam becomes a gateway for EU countries to the Association of Southeast Asian Nations (ASEAN) which comprises of countries that are experiencing fast growth and development rates while attracting large foreign investments. In addition to trade, Vietnam aims to attract foreign direct investment (FDI) with the strategic goal of turning itself into a middle-income country and regional hub, in an effort to become part of the global value chains. The chances for growth based on FDI are enormous, said the article. At present, the EU is the largest investor in ASEAN countries, but only the fifth FDI partner in Vietnam. To attract quality investments in the future, Vietnam needs to satisfy standards of environmental protection, corporate social responsibility and human resource training, it added./. Footwear exports to the US set for tough year Footwear exports to the US have been forecast to struggle in the remaining months of this year due to falling demand, though it recorded a 10 percent increase in revenue in the first quarter of the year.   Footwear Distributors and Retailers of America President Matt Priest was quoted by Cong Thuong (Industry and Trade) online newspaper as saying that the COVID-19 pandemic caused unemployment in the US to rise and income to fall, hurting consumption. Demand for footwear products in the US saw declines in January-May and the downward trend was forecast to continue for the remaining months of this year, he said. He cited statistics that footwear sales in the US dropped by nearly 30 percent in March against the same period last year while footwear imports fell to the lowest level since March, 2017. Vietnam’s footwear exports to the US decreased by nearly 20 percent in April. He forecast it will be difficult to see a significant increase in Vietnam’s footwear exports to the US in the rest of this year. Still, there are opportunities for Vietnamese footwear producers to expand exports in the US. From 2003 to date, he said that while the US’s footwear imports from other countries saw downward trends, imports from Vietnam increased. After the COVID-19 pandemic, the global supply chain is being rebuilt with a trend of moving out of China. Figures showed China accounted for 90 percent of the US’ footwear market 12 years ago but now its market share was reduced to 7 percent and importers tended to look for more supply sources. Diep Thanh Kiet, deputy chairman of the Vietnam Leather, Footwear and Handbag Association, said that it is a difficult time for Vietnam’s footwear exports to the US due to low demand. The US market also has high requirements about corporate social responsibility and environmental protection in footwear production, Kiet said, urging producers to pay attention to these requirements to expand exports to the US. Kiet also said that producers must focus on designs and quality to satisfy consumers’ tastes. Despite the pandemic, Vietnam’s footwear exports to the US rose 10 percent to reach 1.56 billion USD in revenue in the first quarter of this year. The US was the largest footwear export market of Vietnam with revenue of 6.65 billion USD in 2019, a year-on-year increase of 14.2 percent. Vietnam exported 18.3 billion USD worth of footwear products in total last year, up 12.8 percent against 2018. Made-in-Vietnam footwear products were present in more than 100 countries worldwide. The country hopes to earn 20 billion USD from footwear exports this year./. Indonesia expands rice fields on Borneo island Indonesian President Joko Widodo has directed the Ministry of Public Works and Housing (PUPR) to expand the country’s agricultural land programme through a project to optimise 165,000 hectares of rice fields in Pulang Pisau district in Central Kalimantan on Borneo island. PUPR Minister Basuki Hadimulyono said that 85,500 hectares of land in this region are being used for agricultural purposes and an additional 79,500 hectares need to be reclaimed with the aim of raising the rice productivity to 2 tonnes per hectare. The project will be carried out in 2020 and last until 2022. It aims to optimise alluvial land, not peatland in the Government’s Peatland Development Project (PLG). Data announced on April 28 showed that 20 out of the 34 provinces and cities of Indonesia were facing a lack of food, thus making food security one of the Government’s top priorities. General Secretary of the Consortium for Agrarian Reform (KPA) Dewi Kartika attributed the Government’s agricultural reform programme to the lack of food as agricultural land has been gradually cut to mining projects and industrial tree plantations. She cited the National Land Agency’s statistics as saying that 650,000 hectares of agrarian land were lost in 2018./. Budget collection drops 9.2 percent in Jan-May An estimated 577 trillion VND (24.86 billion USD) was collected for the State budget in the first five months of the year, equal to 38.2 percent of the estimate and down 9.2 percent compared to the same period last year. According to the State Budget Department under the Finance Ministry, the COVID-19 pandemic, although already put under control in Vietnam, is still raging in many big trade partners of Vietnam such as the US and the EU, thus greatly affecting budget revenues and spending. Specifically, domestic revenues dropped 5.9 percent, revenues from crude oil were down 17.8 percent and from import-export activities down 23.4 percent. Budget collection from half of the revenue sources has not met the set target. Collection from the State-run sector met only 33.4 percent of the estimate, and that from the foreign-invested sector met just 37.5 percent of the estimate. Tax revenue is also on the decline, including revenue from value-added tax, special consumption tax and corporate income tax. Another reason behind the decrease in budget collection is the policy to postpone the payment of tax and land use fees for enterprises, organisations and business households affected by COVID-19. As of the end of May, the amount of delayed tax amounted to 37 trillion VND (about 1.6 billion USD). Meanwhile, State budget spending in the five-month period was estimated at 603.4 trillion VND, or 34.5 percent of the estimate. Spending on development investment reached only 26 percent of the estimate./. Thailand promotes marketing-led production strategy The Thai Ministry of Commerce has teamed up with the Ministry of Agriculture and Cooperatives to drive a marketing-led production strategy, aiming to upgrade Thailand into a hub of quality agricultural products and food. According to the local media, the two ministries also agreed to set up four working groups chaired by their permanent secretaries to supervise four key missions to achieve the strategy. The ministries want to jointly develop a single big data system for agricultural products and establish a central digital platform for agriculture. They are also committed to building up confidence in the quality, food safety and traceability of Thai farm products, while developing workforce and products to serve market demand for both offline and online channels. Commerce Minister Jurin Laksanawisit said the strategy will focus largely on crops, livestock, fisheries, processed agriculture and agricultural services, with the development done mainly through mega-farms, cooperatives, community enterprises, innovation, food safety and technology. He said the ministry wants to promote contract farming and counter-trade on a domestic and global level. Viroj NaRanong, research director for health and agriculture policy at Thailand Development Research Institute, said to deal with global price competition, Thailand should focus on research and development of key economic crops./. Cambodia-Thailand trade hit 3.1 billion USD in four months Two-way trade between Cambodia and Thailand hit 3.1 billion USD in four months of this year, up 18.3 percent year-on-year, Cambodia’s Fresh News website quoted the Cambodian Embassy in Thailand as saying on June 13. Accordingly, Cambodia spent 2.4 billion USD on imports from Thailand, mostly machinery, electronics, fuel, construction materials, food, cosmetics and household appliances and earned 687 million USD from exports to the neighbouring country, including jewelleries and farm produce. Fresh News said the two countries are looking toward a two-way trade of 15 billion USD this year compared to 9.4 billion USD in 2019 and 8.3 billion USD in 2018./. Cambodia forecasts economic contraction of 1.9 percent this year Cambodian Prime Minister Hun Sen recently predicted that the country’s economy may contract 1.9 percent this year due to the COVID-19 pandemic. In a circular on budget planning for 2021-2023, he said Cambodia has recorded a strong fall in demand from its trading partners. Its growth heavily relies on garment and footwear exports, tourism, construction and real estate, and agriculture. However, garment and footwear exports and tourism have been hit the hardest by the coronavirus outbreak. Yet, the PM is still optimistic that Cambodia’s economy will bounce back to 3.5 percent in 2021 thanks to the gradual recovery of global economy and external demand. He forecast inflation at a manageable level of 2.8 percent this year and slightly up to 3.1 percent next year due to a projected rise in international oil prices. The World Bank said in its latest report late May that the Cambodian economy is likely to shrink between 1 percent and 2.9 percent this year, which will be the slowest pace since 1994. Meanwhile, credit rating agency Moody’s last month predicted that the Southeast Asian economy may expand by about 0.3 percent in 2020 and 6 percent next year./. Northwestern provinces move to promote travel demand A tourism demand stimulus programnme for the northwestern region has been launched with the participation of more than 150 travel companies. The programme is carried out by the Vietnam Tourism Association and the provinces of Ha Giang, Hoa Binh, Son La, Dien Bien, Lai Chau, Lao Cai, Yen Bai and Phu Tho. It aims to join nationwide efforts to promote domestic travel demand to revive the tourism market and prepare for welcoming foreign tourists back once the COVID-19 pandemic is brought under control. At the launch in Hanoi on June 12, Deputy General Director of the Vietnam National Administration of Tourism Nguyen Thi Thanh Huong said the northwestern region and nearby localities boast huge potential and advantages for tourism development. They are blessed with magnificent natural beauty in terms of climate, geology, landscape and ecosystem, as well as special culture and history. Speaking highly of the eight provinces’ tourism connectivity, she said to boost cooperation efficiency, aside from working with state agencies, tourism associations should also strengthen links between travel firms, especially those in potential markets like Hanoi, Hai Phong, Quang Ninh, Da Nang and Ho Chi Minh City, and tourism service providers in the northwestern region and nearby provinces to create high-quality and attractive products with reasonable prices. Vice Chairman of the Vietnam Tourism Association Vu The Binh said tourism demand stimulus has become a strong movement across the industry, promising good outcomes for the sector, which has been battered by the pandemic. In May, this organisation coordinated with the Mekong Delta Tourism Association to launch a nationwide travel demand stimulus campaign. Following that, a number of localities also carried out their own stimulus activities./. Thailand plans to reopen borders to tourists from low-risk countries Thailand is planning to reopen its borders to tourists from countries which have comparably low coronavirus infections as it is striving to revitalise the pandemic-hit tourism industry. The country closed its borders at the start of April, leading to millions of job losses across this sector. Despite registering the first COVID-19 case outside of China in January, Thailand has recorded just more than 3,130 infections with 58 deaths so far. Given the low figures, tourism officials are hoping to lure back visitors from regional countries where the disease has been controlled well, including China, Vietnam, the Republic of Korea, Australia and New Zealand. Taweesin Visanuyothin, spokesman for the Thai Government’s Centre for COVID-19 Situation Administration, told the media recently that the so-called “travel bubbles” will allow people from countries who have the same level of virus to visit without the mandatory 14-day quarantine. He said travellers will need to have completed "health checks" before and after arrival as well as valid medical insurance. However, he did not give a date for the selective reopening, adding that talks over coming days between health and tourism officials will outline the next steps. Taweesin noted his country is targeting sports tourists like golfers because they stay in certain areas and have limited contact with locals, as well as businessmen and medical tourists. Tourism, which accounts for around 20 percent of Thailand’s GDP, is predicted to suffer from revenue losses of up to 47 billion USD this year as arrivals may drop to 14 million from 40 million last year, according to a recent HSBC Global Research note. Hoa Binh group among top 10 prestigious companies in construction sector The Hoa Binh Construction Group (HBG) has been named in the list of top 10 prestigious construction and building materials companies selected by the Vietnam Report JSC. In particular, HBG also came first among top 10 reputable building contractors in 2020, followed by Viglacera Corporation and Vicostone JSC, according to an independent survey released by Vietnam Report in early June. The rankings are based on studies of multiple financial factors, corporate reputation on the media and surveys of experts in the industry. According to the survey, 73.9 percent of companies questioned said they believed 2020 would be a difficult year while 13 percent were optimistic the construction and building material industry would see growth this year. Some 4.3 percent said that the industry would maintain stability compared to 2019. Notably, about 8.7 percent of the respondents said it is likely that the real estate market would experience a slowdown in the first half of the year and make a comeback in the second half as the COVID-19 pandemic is brought under control. A survey by the General Statistics Office found that up to 47.5 percent of firms said they were struggling, 33.7 percent maintained stable production and 18.8 percent saw better performance in the first quarter of this year. During the period, the construction and building material sector reported revenue and after-tax profit declining 9.5 percent and 10.2 percent, respectively due to the impacts of COVID-19./. Barcodes indispensable in global e-commerce The use of barcodes is an indispensable condition and a challenge when participating in global e-commerce.  Nguyen Thi Mai Huong, head of the Conformity Assessment Department under the Directorate for Standards, Metrology and Quality, Ministry of Science and Technology, said that barcodes were an international language to draft information packages on orders, shipping and payment in electronic information exchange services. Therefore, using barcodes is indispensable when participating in e-commerce globally, at the same time, promoting market development, expanding market share, participating in international markets and boosting imports and exports worldwide, said Huong. In international trade, using barcodes helps manufacturers and suppliers avoid commercial fraud, and protect consumers' rights. Barcodes help promote trade and international integration by facilitating businesses in global e-commerce and product traceability. They also integrate with customs and tax authority data to facilitate declarations, clearance, and tax calculation; and support the flow of imports and exports, said Huong. Countries are increasingly checking the origin of products and goods thanks to barcodes. In the context of increasing trade tensions between countries, origin fraud has greatly affected the production of genuine businesses, the reputation of products and the business environment of each country. To make sure there is no room for fraud of origin, some countries have implemented measures to crack down on fake goods and origin fraud to ensure the prestige of products of its nation. The use of barcodes of foreign partners in Vietnam contributes to helping Vietnamese goods be exported more smoothly. In addition, there are also some cases where businesses intentionally use foreign barcodes without authorisation, making Vietnamese export goods face difficulties in international markets. Therefore, it was necessary to strongly implement solutions to support Vietnamese exporters to raise their responsibility in the use of barcodes before Vietnamese and international laws, as well as ensuring the image and reputation of Vietnamese products and goods. In the context of businesses affected by the COVID-19 pandemic, implementing the direction of the Prime Minister at a meeting with businesses last year, the Ministry of Science and Technology has actively implemented a series of solutions to support businesses such as reducing the time for administrative procedures to certify the use of foreign codes within one working day. The ministry will also consider and accelerate the handling of administrative procedures on level 4 online public services and research to integrate with the national one-stop shop portal to meet the Government's requirements on the implementation of e-government. In addition, the Ministry of Science and Technology has proposed the Ministry of Finance to reduce 50 percent of the fee for granting and certifying the use of foreign codes. The Ministry of Finance has also issued Circular 45/2020/TT-BTC dated May 26, which takes effect from May 26 to December 31 this year. Registration fee to use foreign barcodes will be 50 percent of the fee rate regulated in Circular 232/2016/TT-BTC dated on November 11, 2016 of the Ministry of Finance. In addition, the Ministry of Science and Technology has also worked with relevant ministries and branches on sustainable development and national competitiveness enhancement./. Thai Vietjet becomes first airline to return to Phuket airport Following the announcement of the Civil Aviation Authority of Thailand (CAAT) about re-opening Phuket International Airport for domestic flight operation starting from June 13, Thai Vietjet is the first and only airline confirmed to resume operation of the route between Bangkok (Suvarnabhumi) and Phuket international airport to serve passengers demand from that date. The airline, a subsidiary of Vietnamese budget carrier Vietjet Air, strictly complies with current safety and health procedures including measuring passengers and crews’ body temperature, social distancing at the airport and on-board the flights. Passengers are required to wear face masks throughout the journey. Currently, Thai Vietjet is operating stable flight operation covering Thailand domestic network including routes between Bangkok and Chiang Mai/ Chiang Rai/ Phuket/ Krabi/ Udon Thani. The airline also continuously increases flights and extends its network in response to rising demand. Earlier, Thai Vietjet has offered one-year complimentary travel to front line medical staff, including all members of Thai COVID-19 Prevention & Control Committee and all doctors and nurses of 160 appointed hospitals for treatment of COVID-19 patients in Thailand as a way to express appreciation of the heroes who have been working hard to prevent and control the outbreak until the situation is recovered. The new-age carrier Vietjet has not only revolutionized the aviation industry in Vietnam but also been a pioneering airline across the region and around the world. With a focus on cost management ability, effective operations and performance, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diversified services to meet customers’ demands. Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam’s largest private carrier, the airline was awarded the highest ranking for safety with 7 stars in 2018 and 2019 by the world’s only safety and product rating website airlineratings.com and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in 2018 and 2019. The airline has also been named as Best Low-Cost Carrier by renowned organizations such as Skytrax, CAPA, Airline Ratings, and many others./. Denmark supports Vietnam’s offshore wind power development The Danish Energy Agency (DEA) and the Vietnamese Electricity and Renewable Energy Authority have recently organised a webinar seeking ways to help Vietnam optimise its estimated 160GW offshore wind power energy. Speaking at the event, DEA deputy director general Martin Hansen said that the organisation of the high-level offshore wind event is a testament to the extraordinary government-to-government energy partnership that Vietnam and Denmark have developed since 2013. He expressed his delight to see that cooperation and activities within offshore wind are on track despite the COVID-19 pandemic. The official affirmed Vietnam has a huge potential for offshore wind, which could play a key role in the green transition of the country. Since 2009, Denmark has provided over 60 million USD in non-refundable aid for Vietnam in the fields of energy and climate change. The third phase of the two countries’ partnership cooperation programme in the energy field will begin in late 2020 until 2025, with the focus on offshore wind power. VNS/VNA/VIR/SGT/VOV/ND/Hanoitimes/Dtinews/SGGP