VIETNAM'S BUSINESS NEWS HEADLINES JUNE 22 01:45         Development strategy for building material sector to be devised A development strategy is being drawn up for the building material industry for 2021-2030, with a vision to 2050, as the management and development of the sector are still facing a number of shortcomings. According to a report at a working session in Hanoi on June 18, the building material industry has continually been invested and developed over the past years. The design capacity and production output of some products have risen twice or thrice compared to 10 – 15 years ago. Thanks to product diversity and quality meeting developed countries’ standards, the sector has met the growing domestic demand and had its products exported. In particular, Vietnam is currently the fifth biggest cement manufacturer in the world, after China, India, the US, and Russia. Its cement output has doubled within 10 years, from 45.5 million tonnes in 2009 to about 100 million tonnes, turning the country from a cement and clinker importer to the world’s largest exporter of these commodities, with over 30 million tonnes shipped aboard in 2018 – doubling the figure of Thailand that stood second. However, there remain a number of shortcomings in the management and development of building materials, participants heard. Vice Chairman of the Vietnam Concrete Association Tran Ba Viet said the country ranks fifth in terms of cement production, but the cement export value is still low while this is an energy- and natural resource-intensive sector. He suggested considering the export of precast concrete blocks which have much higher value while minising the shipment of clinker and cement. Echoing the view, Chairman of the Vietnam Association for Building Materials Tong Van Nga said the country is exporting many cheap building materials. Meanwhile, it has yet to optimise by-products and waste of other industries, such as coal residues of cement and chemical production and thermal power plants, to produce building materials. At the meeting, Deputy Prime Minister Trinh Dinh Dung said the building material sector has obtained major achievements but is still facing difficulties and challenges, including low content of creativity and added value in products, lack of new products able to compete with regional and global rivals, and insufficient attention to research and development. He noted the most important task for the industry in the time ahead is meeting domestic demand so as to contribute to the construction sector and socio-economic development. As global demand for building materials will also increase, the development of this sector will also help boost export, he added. To that end, a development strategy for 2021-2030, with a vision to 2050, is necessary, the Deputy PM said, requesting that it must associate the sector’s development with modern technology application, natural resources and energy saving, waste recycle, low carbon emissions, climate change adaptation, and environmental protection./. Thailand stops imposing anti-dumping tariffs on VN steel products Thailand has stopped imposing anti-dumping tariffs on some imported steel from Viet Nam since June 7, 2020, the Trade Remedies Authority of Viet Nam under the Ministry of Industry and Trade said on its website on June 18. Thailand’s authority said that after six years of applying this tariff, Thailand's steel production has improved. There is no evidence of serious damage or threats to the domestic steel industry due to increased imports, according to the final conclusion issued in May on an anti-dumping investigation for 169 HS codes of non alloy hot rolled steel products in coils and not in coils originating or imported from Viet Nam. Therefore, Thailand does not need to continue imposing this safeguard measure to protect local products against the imports. Thailand initiated an investigation of anti-dumping for Vietnamese steel products in 2014. It had three reviews on this case with the applied tariffs at 21 per cent, 20.87 per cent and 20.74 per cent of cost, insurance and freight (CIF) prices for the three times, respectively, from June 7, 2017 to June 6, 2020./. Vietnam-UK trade to benefit from EVFTA: Official Trade and investment relations between Vietnam and the UK are to benefit from the EU-Vietnam Free Trade Agreement (EVFTA), according to Trade Counsellor at the Vietnamese Embassy in the UK Nguyen Canh Cuong. Developing trade and investment ties with Vietnam is a priority for many UK businesses, and once the deal takes effect they will have a range of investment opportunities and are likely to shift existing investment to Vietnam. He said the EU-Vietnam Investment Protection Agreement (EVIPA) is waiting for ratification from parliaments in some EU member nations, which along with the EVFTA has created trust among EU investors. Vietnam holds advantages in trade and investment relations with the EU and other countries in the region thanks to the two agreements, as within ASEAN, only Singapore has signed an FTA with the EU. Vietnam, with nearly 100 million consumers, will be a more attractive market for European investors. COVID-19 is also changing trade practices in the UK, with dependence on Chinese suppliers being lessened. The UK is likely to establish new trade channels with businesses from countries it has signed FTAs with and those parties to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Cuong added that the EVFTA will help raise the competitiveness of many Vietnamese products over equivalents from countries without an FTA with the UK, such as China, India, Thailand, Malaysia, Indonesia, the Philippines, Myanmar, and Brazil. Trade between Vietnam and the UK increased by an average of 17.8 percent per year in the 2010-2019 period, with Vietnam posting a surplus for many years. Vietnam has exported nearly 7 billion USD worth of goods to the UK in the last three years, primarily mobile phones and spare parts, garments and textiles, footwear, fisheries, wood and wooden products, computers and components, cashew nuts, coffee, and pepper. Bilateral trade was just over 1.5 billion USD in the first four months of 2020, a year-on-year decline of 17.8 percent due to COVID-19./. Dong Nai anticipates new investment waves Industrial parks in Dong Nai province in the gateway of the southern key economic zone have been preparing for an influx of foreign direct investment (FDI). According to the management board of industrial parks (IPs) in Dong Nai, the locality now houses 32 IPs with a total area of more than 10,240 ha, with 31 operational. Up to 50.3 ha of land in the IPs have been leased so far this year, mainly in Nhon Trach 6, Loc An-Binh Son, Dau Giay, An Phuoc and Giang Dien, the board said, adding that priorities have been given to projects with big investment capital and environmentally friendly. Nguyen Thi Cam Hong, Deputy General Director in charge of Dau Giay Industrial Zone JSC, said some investors from the Republic of Korea (RoK) and Japan came to the industrial zone last May. Figures released by the provincial Statistics Office show that in the first five months of this year, newly-registered and additional FDI in the locality reached 490 million USD. In anticipation of new investment waves, Dong Nai has built three new IPs, namely Binh Phuoc in Long Thanh district, Cam My in Cam My district, and Gia Kiem in Thong Nhat district, and proposed expanding many others. The province has also asked the Government to prioritise inter-regional infrastructure planning, particularly expressways, belt roads and logistics ports to create momentum for the southern key economic zone./. HCM City Vietbuild expo to feature nearly 1,800 booths The Vietbuild International Exhibition with the theme Construction – Building materials – Real Estate – Interior and Exterior Decoration will be held in Ho Chi Minh City from June 24 to 28. The exhibition will have nearly 1,800 booths of more than 400 exhibitors, including many foreign brands. It is among the first exhibitions this year. Many Vietbuild exhibitions with different themes will be held in the country’s four biggest cities of Hanoi, HCM City, Can Tho and Da Nang this year. On display will be building materials, electrical equipment, interior and exterior decorative items, hygiene equipment, door and door accessories, paints, water purifiers, hand tools and others, with many new models and improved features and quality to meet higher requirements from customers for environmentally friendly products. Professional seminars and business-matching events will be held on the sidelines of the exhibition, including a seminar on “Breakthrough technologies and materials in the construction industry in post COVID-19”, which seeks to encourage businesses to continue research and produce new and high-tech products to meet urban construction and housing market demands towards green and sustainable development. The exhibitions will offer a platform for companies to meet, exchange information, explore co-operation prospects, and introduce their latest products and technologies, according to the organisers. They will also help exhibitors understand more about the market and consumers’ tastes so that they can map out appropriate business strategies. Co-organised by the Ministry of Construction’s Information Centre and VIETBUILD Construction International Exhibition Organisation Corp, the exhibition will be held at the Saigon Exhibition and Convention Centre in District 7./. Thailand signs U-Tapao airport city deal Thailand’s Prime Minister Prayut Chan-o-cha on June 19 presided over a contract signing between the Eastern Economic Corridor (EEC) and BBS Joint Venture to develop U-Tapao International Airport and the Eastern Airport City Project. Prayut said the 290-billion-baht (over 9 billion USD) project is among Thailand’s major infrastructure development projects aiming to boost socio-economic growth in the country’s eastern region. This project will upgrade the country to be the regional aviation hub, he said. EEC Office secretary-general Kanit Sangsubhan said this project would generate 305.55 billion baht for the government, another 62 billion baht in tax and create 15,600 jobs a year in the first five years. All assets would revert to the state after the expiration of the 50-year contract, he added. The U-Tapao International Airport City Project & Eastern Airport City Project also incorporates a high-speed train route linking the three major airports – Don Mueang, Suvarnabhumi and U-Tapao. The BBS consortium comprises Sino-Thai Engineering and Construction, Bangkok Airways and BTS Group Holdings./. Phu Tho strives to meet targets amid COVID-19 Despite being severely impacted by COVID-19, the northern province of Phu Tho will still attempt to meet targets set for 2020 rather than making adjustments. The provincial Department of Planning and Investment said the locality will step up the reform of administrative procedures, especially those relating to investment, and improve its business environment and provincial competitiveness. It will also introduce solutions to support businesses and remove difficulties faced by investors. According to Bui Van Quang, Chairman of the provincial People’s Committee, Phu Tho will prioritise projects that use high-technologies and high-quality workers and create high production values and budget collections so as to create socio-economic breakthroughs. Projects that may pollute the environment, use too much land, cause waste, or are too labour-intensive will not be accepted, he said. It will also further restructure its agricultural sector towards high added value and scientific application, promote near-urban and high-tech agriculture, mass production and value chains, and combine material production with preservation, processing, and consumption. Nguyen Ngoc Son, Director of the provincial Department of Agriculture and Rural Development, said natural disasters and diseases, especially African swine fever, have impacted the local farming sector. Given this, the department is keeping a close watch on diseases among livestock, especially African swine fever and avian influenza, to prevent them from breaking out. More effort will be made to restructure and replenish pig herds, with priority to be given to complete farms, biological safety, and animal quarantine, while transforming the crop structure, focusing on varieties of high productivity and quality. Authorities have also encouraged locals to transform land-use purposes, created conditions for businesses and cooperatives to invest in agriculture, and encouraged farms to expand production. Despite the impact of the pandemic, Phu Tho’s growth has been estimated at 1.24 percent for the first half of the year thanks to a range of measures introduced to promote production and business. Its GDP was some 33.46 trillion VND (1.4 billion USD) and export value 1.707 billion USD, up 110 percent year-on-year. Total social investment capital stands at 12.2 trillion VND, equivalent to 95.9 percent of the same period last year, while State budget collections hit 3.52 trillion VND, or 56.9 percent of the estimate set by the provincial People’s Council. Another six communes have been recognised as new-style rural areas, raising the total to 112. Phu Tho plans to mobilise 2 trillion VND to build new-style rural areas this year. The province is therefore speeding up production in association with agricultural restructuring and focusing on developing organic farm produce. Authorities will encourage locals to contribute funds and effort to develop transport infrastructure, irrigation networks, and cultural works in rural areas. Phu Tho will also pay greater attention to building production and consumption chains and promoting key products under the “One Commune, One Product” (OCOP) programme. It has moved up nine places in the Provincial Competitiveness Index (PCI) over the last five years and is set to do more to further raise its position. In the 2019 rankings, revealed by the Vietnam Chamber of Commerce and Industry (VCCI) and the US Agency for International Development (USAID), Phu Tho ranked 26th among Vietnam’s 63 cities and provinces and was third among the 14 northern mountainous provinces. It has jumped nine places since coming in at 35th in 2015, primarily thanks to local efforts to improve the investment climate. To rise further, the provincial People’s Committee has requested relevant State agencies press on with simplifying administrative procedures to create more favourable conditions for businesses, organisations, and individuals in all economic sectors and to ensure equality for all. In particular, it asked agencies to raise awareness and encourage a sense of responsibility among officials and public servants while stepping up online payments and the provision of online public services to the third and fourth levels. Phu Tho ranked 20th out of 63 cities and provinces in the Public Administration Reform Index (PAR INDEX) in 2019, up two places from 2018 and putting it third in the northern midland region./. Tourists flock again to Quang Ninh after social distancing rules lifted The northern province of Quang Ninh has seen a boom in domestic tourist arrivals over the last month after the weeks-long social distancing order to curb the spread of COVID-19 was lifted, enabling the province to welcome back visitors. Quang Ninh received more than 1.2 million tourists between May 15 and mid-June to earn about 2.7 trillion VND (116.03 million USD) in revenue The province has launched a stimulus package worth 200 billion VND to boost travel demand. It offered free admission for visitors to the World’s Heritage Site Ha Long Bay, Quang Ninh Museum, and the Complex of Yen Tu Monuments and Landscape in May and is giving discounts to those visiting these sites during June and July. New services have also been rolled out to lure tourists, such as Yoko Onsen Quang Hanh – the first Japan-style onsen resort in Vietnam - and five-star express boat from Tuan Chau to the islands of Co To and Minh Chau./. ADB helps strengthen water supply infrastructure in Philippines' capital The Asian Development Bank (ADB) on June 19 said it has approved a 126 million USD loan to support the construction of a 15-km water transmission pipeline aimed at helping secure water supply for nearly 13 million residents in the Philippine capital region. The Manila-based bank said the financing for the construction named Angat Water Transmission Improvement Project will help strengthen the water system's downstream transmission capacity in Metro Manila. According to ADB, the project is part of the city's effort to rehabilitate the Umiray-Angat-Ipo dam system, which supplies about 90 percent of Metro Manila's water. "Climate change is making annual rainfall unpredictable, putting tremendous pressure on water resource use," said Director of the Urban Development and Water Division of ADB's Southeast Asia Department Vijay Padmanabhan in a statement. The Philippine government is increasing investments in clean infrastructure for environmentally sustainable water resource management across the country. Through this project, ADB is helping the Philippines secure Metro Manila's water supply, Padmanabhan added. The ADB said the new aqueduct, with a 3.6-meter diameter, will have a welded steel concrete-coated pipe. With cutting-edge technology to help it withstand magnitude 7.2 earthquakes, adding the project will reduce the risk of a system breakdown and increase the resiliency of Metro Manila's water supply. The ADB said the loan supplements ongoing ADB financing, approved in 2016 to fund the construction of a 6.3-km modern, earthquake-resilient upstream water tunnel. It added the tunnel is expected to be completed in June, three months ahead of schedule./. Vietnamese “Golden Lychee” arrives in Australia The first batch of Vietnamese “Golden Lychee” which distinguishes itself from other varieties with yellowish skin and fresh sweetness has arrived in Australia and hit shelves in West Australia and South Australia. The Vietnamese Trade Office in Australia on June 19 coordinated with 4 Ways Fresh, an Australia-based company specialising in the production and trading of Vietnamese agricultural products, to promote Vietnamese lychee at fruit and vegetable markets in Adelaide city in South Australia. Since the Vietnamese lychee was approved for entry into Australia in 2015, the fruit has been available for sales in this market annually, beside red lychee from Luc Ngan (Bac Giang) and Thanh Ha (Hai Duong). A survey by the office last year found that Australian consumers thought the yellowish skin of “Golden Lychee” was a sign of fading because of long-distance transportation. To change that perception, the office has coordinated with 4 Ways Fresh to launch an awareness campaign promoting this fruit as “Golden Lychee: Fruit of Luck”, which implies the fruit is not only tasty but its golden skin also symbolizes good luck./. Cambodia hopes for more visitors despite 3,000 USD deposit Cambodia Airports, which has been developing three international airports in the country, is looking forward to seeing travellers back to the Kingdom despite strict government health measures and a prolonged suspension of tourist visas to foreigners, according to the Khmer Times. France’s VINCI Airports, which is a shareholder of 70 percent of Cambodia Airports, said that the situation has slightly returned to normal because some countries have lifted their travel bans. “Our sister companies start resuming their commercial flights at the beginning of June. Strong health and safety measures have been implemented at all our airports, such as the obligation to wear a mask throughout all the journey and at the airport. In Cambodia, we are looking forward to seeing travellers return,” the company said. Cambodia Air Communications and Public Relations Director Khek Norinda said by email on June 18 that air traffic has remained largely tepid and only a few airlines have been operating with reduced frequencies since the beginning of the viral outbreak. “Some airlines have considered restoring flights to Cambodia in the next three months pending better market conditions and countries easing travel and border restrictions,” he said. Norinda said while the company fully supports the government’s policy to combat the spread of COVID-19, this recent measure may give the perception that visiting Cambodia is costly. Cambodia’s tourism and aviation have been gravely threatened by new requirements imposed by the government that require foreigners to pay a 3,000 USD returnable deposit. Many say this would kill the tourism and aviation industries. However, the government said that it will not charge Cambodians holding foreign passports for laboratory testing and medical treatment while foreign diplomats are allowed to self-quarantine upon arrival in the Kingdom. Chea Aun, spokesman of the State Secretariat of Civil Aviation, said early this month that there were about 200 to 300 passengers entering Cambodia per day. Since Cambodia lifted the ban on people from six countries, including Iran, Italy, Germany, Spain, France and the US on May 20, the number has increased by 20-300 per day. Cambodia’s three international airports welcomed 11.6 million passengers last year, a 10.2 percent increase from 2018, according to a report from Cambodia Airports./. Most Southeast Asian economies to fall into recession, rebound in 2021: report Vietnam will emerge from the pandemic the least affected of all countries in Southeast Asia, though it is not immune to the sharp slowdown in trade flows, according to a report by the Institute of Chartered Accountants in England and Wales and Oxford Economics. The “Coronavirus global outlook: After the Outbreak” report says most regional economies will fall into recession in the first half of 2020 due to the severe impact of the outbreak. However, growth is expected to spring back to an average of 8 percent in 2021, supported by fiscal stimulus packages and monetary easing. An enduring COVID-19 outbreak will see world GDP shrink by 4.7 percent in 2020, more than double the impact of the global financial crisis in 2008 and the biggest recession in post-war history. Similarly, most Southeast Asian economies will fall into recession in the first half of 2020 and record a 1.9 percent contraction for the year. Measures to lock down countries and cities in the region to varying degrees have substantially cut domestic demand, with many countries bringing in restrictions on exports of food produce to safeguard domestic food supplies, further dampening export growth. Thailand is forecast to be one of the worst hit, because tourism and travel, which have particularly suffered because of the pandemic, account for 20 percent of its GDP. The adverse impact on Southeast Asia will ease in the second half of 2020 as Chinese import demand and global trade recover at a consistent pace, while a slower pace of normalisation will continue to weigh on tourism-dependent economies. Co-ordinated fiscal stimulus packages and monetary easing by authorities across the region will support the recovery in economic growth. Mark Billington, ICAEW regional director, Greater China and South-East Asia, said: “Beyond a global health and economic crisis, the pandemic is also an important chapter of an unfolding bigger inter-connected catastrophe of climate emergency, massive bio-diversity loss and increasing inequality. “Our recovery will need to include sustainable solutions that benefit nature, society and economy. As countries in the region gradually ease lockdown restrictions and start to open their economies, organisations and businesses will have to adapt to a ‘new normal’ for sustained growth and performance in the post-outbreak world.” At the regional Virtual Economic Forum hosted by ICAEW on June 4, industry leaders discussed the impact of COVID-19 on businesses in the ASEAN region, and panellists shared their viewpoints on the impact of the pandemic on Southeast Asian economies and the recovery outlook. Vietnam is poised to benefit from a manufacturing shift by multinational companies though the impact of the slowdown on global demand that would continue to weigh on its supply chains and manufacturing sector./. 329 listed companies fully comply with rules on information disclosure Some 329 listed companies on the Hanoi and Ho Chi Minh stock exchanges have met all information disclosure requirements, 70 companies more than last year, according to a survey on information disclosure on the stock market conducted by the IR Awards 2020 programme. The number of surveyed firms totalled 729, 16 companies more than last year. Of the 329 listed companies that comply with information disclosure obligations, the real estate industry led in terms of number of businesses, total market capitalisation and net profit, followed by the banking and food - beverage sectors. Information disclosure is a mandatory obligation for all listed companies on the country’s two stock exchanges. This is also the responsibility of listed firms with the investor community in general and shareholders in particular. The criteria of the survey was based on regulations prescribed in Circular 155 on information disclosure on the stock market issued by the Ministry of Finance in 2015 and other regulations and notices from relevant State agencies related to information disclosure and sanctioning for violations in disclosure information. Meeting information disclosure obligations helps increase the quality of investor relations between listed companies and investors in general and shareholders in particular, thereby improving the investment value for shareholders. Survey results in 2020 show that businesses are increasingly paying more attention to compliance with information disclosure requirements. The IR Award programme is organised by Vietstock and Finance and Life online newspaper FiLi.vn of the Vietnam Association of Financial Executives. The annual awards seek to raise awareness among listed companies of the need to comply with disclosure requirements and to have good relations with investors and shareholders in order to have an open, transparent and effective stock market. The awards ceremony is scheduled to take place in August./. Database launched to boost links in manufacturing, supporting industries A database of Vietnamese manufacturing and supporting industries was launched on June 19 with a view to helping enhance links between businesses, including between domestic and foreign concerns. The database was launched under a coordinated effort by the Ministry of Industry and Trade’s Industry Agency and the International Finance Corporation (IFC), part of the World Bank Group, with sponsorship from Australia’s Department of Foreign Affairs and Trade and the Swiss State Secretariat for Economic Affairs. Addressing the ceremony, Minister of Industry and Trade Tran Tuan Anh said the database aims to boost business-to-business connectivity, including between domestic and foreign enterprises. It will help companies and investors find accurate information swiftly, thus facilitating partnerships and increasing opportunities for cooperation between Vietnamese companies and multilateral companies, he noted. The system will prove itself even more useful given that the COVID-19 pandemic has disrupted face-to-face partnership activities, he went on, and will help companies seize the opportunities generated by new-generation free trade agreements Vietnam has signed, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). Supporting industries have been a magnet for foreign investment in Vietnam but links in production chains remain slack and local firms are still struggling to match supply and demand. The Industry Agency has updated the database with information on 500 companies in mechanical engineering, 347 in the auto industry, 750 in the electronics sector, 1,145 in textile and garment production, and 910 in leather and footwear manufacturing. IFC Country Manager for Vietnam Kyle Kelhofer said the database debuts just as COVID-19 is having a major impact on global value chains. Enhancements to links between domestic and multilateral companies via the database, along with Vietnam’s stable and low-risk business climate, which was confirmed by its success in swiftly controlling COVID-19, promise to help assert the country as a key processing and manufacturing hub in the region, he added. With an annual growth rate of 10.6 percent, processing and manufacturing is the driver of Vietnam’s entire industrial sector. It attracted 21.6 billion USD in foreign investment in 2019, or 67.8 percent of the total./. Vietnam, New Zealand expect trade value of 1.7 billion USD in 2020 Vietnam and New Zealand are eyeing 1.7 billion USD in two-way trade this year. According to the Vietnamese Trade Office in New Zealand, Vietnam is currently New Zealand’s 16th largest trade partner. Bilateral trade enjoyed a three-fold increase in the decade since the two countries established their comprehensive partnership, from 320 million USD in 2009 to over 1 billion USD in 2018. The figure is expected to rise to 1.7 billion USD as the two are working to upgrade relations to a strategic partnership and both are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The two economies also possess numerous advantages in complementing and supporting each other. New Zealand needs to import commodities which Vietnam holds strengths, such as garment and textiles, footwear, wood, tropical farm produce, and fisheries products, while Vietnam needs to import milk and dairy products, wine, lamb, fruit, and raw materials for garment and textiles and footwear from New Zealand. Of note, New Zealand has permitted the import of three types of fresh Vietnamese fruit - mango, dragon fruit, and rambutan. Vietnam is also seeking to export fresh lemons and passionfruit to the country. In return, Vietnam has opened its doors to New Zealand exporters of potatoes, beef, kiwi fruit, and apples. Keith Conway, Chargé d’Affaires at the New Zealand Embassy in Vietnam, said the country welcomes the ratification of the CPTPP, as it is an important step in improving trade principles and will contribute to boosting investment and business between the two countries. 2020 is significant for both countries, as Vietnam is the ASEAN Chair and celebrations are underway for the 45th anniversary of bilateral diplomatic ties. New Zealand Prime Minister Jacinda Ardern is scheduled to take part in the ASEAN-New Zealand Leaders’ Summit, which is viewed as a good opportunity for leaders to discuss measures to expand bilateral cooperation, especially in trade. To expand the market share of Vietnamese exports in New Zealand, Le Hoang Oanh, Director of the Ministry of Industry and Trade’s Asia-Africa Market Department, suggested Vietnamese companies pay greater attention to trade and product promotions. The ministerial-level Economic and Trade Joint Committee, established in 2005, is expected to convene its seventh meeting in the fourth quarter of this year in New Zealand to seek additional measures to expand bilateral trade. Meanwhile, the Regional Comprehensive Economic Partnership (RCEP), once signed by the ten ASEAN member states and Australia, China, India, Japan, the Republic of Korea, and New Zealand, will form the largest free trade bloc in the world, with around 3.5 billion people and 30 percent of global GDP. Minister of Industry and Trade Tran Tuan Anh said the agreement will bring about opportunities for Vietnamese businesses to boost exports, participate in new value chains, and attract more investment from New Zealand. He recently asked New Zealand to support Vietnam in developing hi-tech agriculture and fostering sustainable growth./. Indonesia spends nearly 50 million USD on Jakarta subway services The Indonesian Government has approved a budget package worth 700 billion Rp (close to 50 million USD) to assist subway transport services in Jakarta, unveiled Governor of the capital Anies Baswedan. According to the official, it is the second package of this type granted for the city, with the first one worth 672 billion Rp approved in 2019 aiming to encourage more people to use the mass rapid transport (MRT) services. William Sabandar, President Director of the PT MRT Jakarta, said the number of MRT passengers, in recent month, dropped significantly due to COVID-19 and the city’s associated large-scale social restrictions. He noted the investment will create momentum for his corporation to resume operation, adding that the company is seeking other sources of investments to help restore its transport services like it was before the pandemic./. Potential for Vietnam-Switzerland cooperation in digital transformation: experts Experts from the Association of Vietnamese Intellectuals and Experts in Switzerland (AVIES) have shared the view that Vietnam and Switzerland have great potential and ample space to boost their cooperation in digital transformation and innovation. Speaking at a recent symposium, they said Switzerland is always in Top 5 in the Organisation for Economic Cooperation and Development (OECD) in digital transformation, with its outstanding performance in health care and government digitalisation. Thanks to achievements in the sector, Switzerland is one of the countries worldwide that have well contained the COVID-19 pandemic, they said. The epidemic has brought about great opportunities to Vietnam in its national digital transformation strategy, the experts added. With a young population, Vietnam has favourable conditions for digital transformation, they said. Besides, the Government has prioritised the sector over the past time. They, however, pointed to challenges faced by the country during the process such as the big development gap between cities and rural and mountainous areas. They suggested Vietnam gradually create an open, synchronous digital foundation, and improve people’s capacity for digital technology./. Wood and forestry exports plunge in second quarter The export value of the wood processing and forestry sector was 2.18 billion USD in the second quarter of 2020, dropping 11.3 percent against the first quarter and 20 percent against the same period last year. According to the Vietnam Administration of Forestry (VAF), the revenue gained from the sector’s biggest importer – the US – reached 1.03 billion USD, down 18 percent year-on-year and 33.4 percent quarter-on-quarter. Its exports to other key markets, namely China, Japan, and the Republic of Korea, recorded a annual rise ranging between 5 and 20 percent. In the first half of 2020, the sector’s export earnings hit 11.75 billion USD in total, up 3.9 percent from 2019. Vietnamese wood and forestry products have been shipped to over 120 countries and territories worldwide. The country ranks first in ASEAN, second in Asia and fifth in the world for wood exports./. EU to remove tax on 11,500 tonnes of Vietnamese canned tuna The European Union (EU) will eliminate tariffson Vietnamese fresh and frozen tuna products as soon as the EU-Vietnam Free Trade Agreement (EVFTA) comes into effect.  Specifically, import duty on frozen tuna loin and fillets code HS030487 will be reduced from 18% to 0% across a3-year schedule. Meanwhile, the EU will cut duty from the basic rate of 24% to 0% on steamed tuna loin and fillets across a 7-year roadmap. Other types of canned tuna products will be exempted from duty up to a quota of 11,500 tonnes per year. According to the General Department of Vietnam Customs, Vietnamese tuna exports to the EU in the first four months of 2020 decreased by 7.2% compared to the same period in 2019. However, the export of canned tuna rose by 2.7% over the same period last year. The signing of the EVFTA is expected to provide lots of opportunities for Vietnam’s tuna industry to expand and gain greater access to wider markets. Under the agreement, Vietnamese tuna will have tax advantages compared to other countries such as Thailand and China,Vietnam’s major competitors in terms of the export of tuna to the EU./. Around 22,000 tonnes of Bac Giang litchi exported to China Around 22,000 tonnes of litchi from the northern province of Bac Giang were exported to China by Wednesday. Nguyen The Thi, vice chairman of Luc Ngan District People’s Committee, said that 45 Chinese traders, who had finished their quarantine in Vietnam, have come to the district to buy litchi.    Luc Ngan litchi market is very crowded with vehicles queuing along a long road to take the fruit. Thi added that around 1,800 and 2,300 tonnes of litchi are exported to China daily. Over the past week, the number of litchi transportation vehicles to Tan Thanh Border Gate in Lang Son Province have increased by 5-6 times against the beginning of the crop, accounting for two thirds out of Vietnam's total farm produce exported to China during this period. A representative from Tan Thanh Border Gate said that litchi is a prioritised product at the border gate so it takes exporters only a few minutes to complete the export procedures. Last year, Bac Giang’s total litchi output was estimated at 145,600 tonnes, pulling in a total revenue of VND6.3 trillion (273.91 million). This year, more than 300 Chinese traders have registered to buy Bac Giang litchi and the figure has continued rising. After arriving in Vietnam, they have to have a 14-day quarantine for Covid-19 prevention. In 2019, around 400 Chinese traders went to Bac Giang to buy litchi./. Can Tho businesses ask for help to recover after COVID-19 Businesses in Can Tho City have asked for favourable financial policies to help them recover from the COVID-19 crisis. Nguyen Phuong Lam, director of the Viet Nam Chamber of Commerce and Industry in Can Tho City, said that busineses were requesting the Government to carefully resume trade with countries that have COVID-19 under control. They also have urged the completion of traffic infrastructure (such as the upcoming Trung Luong - My Thuan and My Thuan - Can Tho highways) to relieve congestion, which would help them in their recovery. Businesses have asked Can Tho City to use fund programmes to aid businesses impacted by COVID-19, develop infrastructure for tourism development, and push for administrative reforms. Pham Thai Binh, general director of Trung An Hi-tech Agriculture Joint Stock Company, said the city should ask commercial banks to offer more favourable loan interest rates to businesses in prioritised sectors, as instructed by the Prime Minister and the State Bank of Viet Nam. Binh also said the city should work with departments to carry out policies that facilitate co-operation in rice production and purchases. Nguyen Thuc Hien, director of the city's Department of Planning and Investment, said the department would help the city gain access to credit packages to aid businesses; extend deadlines for tax, fees, land rent and social insurance payments; and carry out demand stimulation programmes. The city will also implement promotional policies to stimulate tourism, especially towards foreign tourists when international flights are allowed in the future, and policies to connect production and consumption of agriculture products./.  Viet Nam aims to enhance value of building materials Viet Nam should develop more new, environmentally friendly and high value-added products to build a brand to increase the value of products of Viet Nam, Deputy Prime Minister Trinh Dinh Dung has said. Dung visited the Viet Nam Institute for Building Materials on Thursday where he discussed the development strategy plan of the local building material industry for the next 10 years and towards 2050. According to the Ministry of Construction (MoC), the building material industry has been invested in, innovated and developed well in the past year. Some products have design capacity and output two and three times higher than they had in the last 10-15 years. The MoC also said many local products with diverse models and better quality have been replacing imported goods and have been exported. Local materials have been exported in great numbers such as cement, clinker and construction ceramics. Tran Ba Viet, Vice Chairman of Viet Nam Concrete Association told Vietnam News Agency: "Viet Nam is ranked fifth in the world in terms of cement production capacity, but the export value of cement is not high, while the manufacturing industry consumes much energy and resources." Viet suggested they work to export products with much higher economic value and lower exports of clinker and cement in the near future. Noting that building materials play an important role in construction works and infrastructure, Deputy PM Dung said there should be better investment in the industry. “Some investment of construction materials is not rational, small-scale, dispersed while the export of construction materials still has a high content of raw materials and low added value," he said. “New construction materials are underdeveloped, there are not many new products to meet domestic demand and yet to compete in the region and the world. In addition, research and development activities have not been paid attention to or have had ineffective investment from businesses," Dung added. Dung also told the MoC and the institute to choose materials to export carefully to avoid losses to the nation's resources, asking them to be based on quality, standards and environmental criteria. “In the next phase, the process of industrialisation and urbanisation will continue very strongly in Viet Nam. Therefore, the development of building materials to meet the demand for domestic construction is a critical mission," he said. He also said there was an increasingly high demand in the world and the industry should aim to improve export value. “We should strengthen new, environmentally friendly and high value-added materials to gradually replace traditional construction materials,” said Dung./. Shares set to gain on corporate earning hopes The Vietnamese market is forecast to enter a new rising phase with investors waiting for positive second-quarter earnings reports, said brokerages. The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 1.55 per cent to end Friday at 868.56 points. The southern market index gained 0.58 per cent last week. An average of 439 million shares were traded on the southern market during each session last week, worth VND8.6 trillion (US$370 million). According to analysts from MBS Securities JSC, short-term correcting pressures have passed and caused no significant disturbance. “With the pessimism gone, the market is set to enter a new rising phase and stocks with positive Q2 business results will attract cash flow,” MBS said. BIDV Securities Co (BSC) said in its daily report that the ETF restructuring process had been completed amid rising liquidity and good market breadth, indicating a positive trading trend next week. Viet Dragon Securities (VDSC) said after an accumulation period with low liquidity, the VN-Index had rebounded significantly in Friday's trading session. VDSC recommended that investors consider disbursing as the market corrects slightly next week to increase profits in their portfolios. Agribank Securities JSC kept a prudent view that the market would fluctuate in the range of 830 - 870 points, continuing the sideways trend, moving in a stable range and will not form a specific trend for a long time. The market recovered slightly last week amid mounting fears that the second wave of the COVID-19 pandemic was approaching some countries. However, stimulus measures from the US Federal Reserve have helped soothe global market sentiment, said Sai Gon-Ha Noi Securities Co. “The market is forecast to fluctuate with a wide divergence among sectors next week, between 840-845 and 883-888 points,” said Bao Viet Securities Co. “The index may possibly face correction pressure during early sessions of this week before recovering toward resistance 883-888 points. However, please note that the market could enter a strong decline if breaking down 840-845 points,” the company said. Foreign investors net bought nearly VND14.7 trillion on the stock market, much higher than VND422 billion in the previous week. Stocks of the 'Vin' family were the main driving force for the rebound last week with Vingroup (VIC) up 6.1 per cent, Vincom Retail (VRE ) rising 7.4 per cent and Vinhomes (VHM) gaining 2.5 per cent. Steel stocks also performed well with Hoa Phat Group (HPG) increasing 3.2 per cent and Hoa Sen Group (HSG) gaining 8.2 per cent. On the downside, pillar stocks in the food and beverage group dropped the most, with Vinamilk (VNM) losing 2.5 per cent, Masan Group (MSN) declining 2.6 per cent and Sabeco (SAB) dropping 3.3 per cent. Aviation stocks also fell with budget carrier Vietjet (VJC) decreasing by 3 per cent and national flag carrier Vietnam Airlines (HVN) losing 1.6 per cent. Stocks of the oil and gas industry had mixed results with the Viet Nam National Petroleum Group (PLX) increasing by 1.9 per cent, PetroVietnam Technical Services Corporation (PVS) up 1.1 per cent, PetroVietnam GAS JSC (GAS) losing 2.7 per cent, PetroVietnam Construction Corporation (PVC) declining 6.2 per cent and PVPower (POW) decreasing by 0.8 per cent.  VNN