VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 31
02:35
ODA
disbursement targets a challenge: Official
While the
disbursement of official development assistance (ODA) has seen progress,
without drastic solutions, it will be difficult for ministries and sectors to
achieve allocation targets, Deputy Minister of Finance Tran Xuan Ha has said.
He told a
meeting in Hanoi on August 26 that 3.742 trillion VND (nearly 161.5 million
USD) in ODA funding had been disbursed as of the end of August, or 21.64
percent of this year’s target, and higher than the disbursement in the same
period last year yet still lower than the disbursement of domestic public
capital, which currently stands at 40 percent.
Among
ministries, the Ministry of Transport posted the best performance in ODA
disbursement, at about 51 percent as of the end of August. It acknowledged,
however, that disbursement still falls short of expectations.
It blamed
the slowness partly on the impact of COVID-19, which has been an obstacle to
foreign experts coming to the country and also affected the bidding process,
as well as the prolonged handling of adjustments to certain projects.
The Ministry
of Agriculture and Rural Development said that since the beginning of the
year, it has requested subordinate units make disbursement commitments for
each month and quarter.
However, it
noted, the coronavirus outbreak has affected the bidding process. Also, most
agricultural projects are small and scattered over different localities,
which are slow to provide reciprocal capital, to the detriment of project
implementation.
Another
official at the event pointed out that projects funded via ODA or foreign
preferential loans are suffering more from the pandemic compared to those
using domestic funds, because they must satisfy lenders’ requirements such as
using imported equipment or foreign experts, contractors, and advisers.
Apart from
disbursing assigned capital for 2020, ministries and sectors also have to
work on funds they didn’t finish allocating last year, adding more to their
workload, he added.
To speed up
ODA and foreign capital disbursement, the Ministry of Finance has asked other
ministries and sectors to consider completing their public investment
allocation targets as an important political task.
Deputy
Minister Ha called for coordination among them to thoroughly deal with the
obstacles, adding that his ministry will discuss problems arising during
disbursement with lenders./.
Finance Ministry launches
open budget portal
The Ministry
of Finance (MoF) launched an open budget portal at
https://ckns.mof.gov.vn/ on August 26.
Built based
on advanced models from around the world and Vietnam’s requirements for
openness and transparency in public finances, it looks to improve
efficiencies in the distribution, management, and utilisation of public
resources.
It is also
expected to help MoF compile reports on open budgets in a faster and more
accurate manner and keep a close watch on budget reports from ministries,
State agencies, and localities.
Speaking at
the launch ceremony, which was also part of the activities marking the 75th
anniversary of Vietnam’s financial sector, Minister of Finance Dinh Tien Dung
underlined that the launch of the portal is of great importance to openness
and transparency in public finances.
It is also
the first step towards the implementation of the financial sector’s open data
portal, which will be linked with national portals.
The portal
is expected to provide individuals, businesses, researchers, and local and
international organisations with useful data and information on public
finances, thereby enhancing social accountability and the effective use of
State budget funds, he added.
Operations
Manager for the World Bank (WB) in Vietnam Stefanie Stallmeister voiced a
belief that the new portal will improve openness and transparency and
effectiveness in balancing the budget, along with macro-economic management,
risk awareness, and responsibility in public service provision.
The portal
was built with support from the Vietnam Public Financial Management (PFM)’s
Analytical and Advisory Assistance (AAA) Programme, and co-financed by the
Swiss and Canadian Governments through the WB in 2016./.
Farmers in An Giang reap
bumper rice crop
Farmers
in the Mekong Delta province of An Giang have done extremely well from the
recent summer-autumn rice crop despite facing challenges since the beginning
of the year, in particular from saline intrusion.
Though severely affected by climate change, the Mekong Delta province of An Giang nonetheless earned handsome profits from the recent summer-autumn rice crop, with local farmers potentially pocketing 900 to 1,300 USD per hectare after deducting costs.
Rice
production in the province’s summer-autumn crop amounted to some 1.2 million
tonnes amid the adverse impacts of climate change. The achievement is
primarily due to proactive measures being taken against saltwater intrusion,
including retaining fresh water, rescheduling crops, and changing rice
varieties.
All local
rice has been sold, mostly for export. According to the local agriculture
sector, the bright prospects for rice exports nationwide in recent times
encouraged local companies to buy large amounts from farmers, including those
from An Giang.
Still, the
rice sector faces numerous challenges from now until the end of the year as
the flood season has only just begun. Numerous response plans have been
deployed, including switching crops to ensure the financial security of
farmers.
Mekong Delta
provinces have carried out various response measures against the COVID-19
pandemic and climate change since the beginning of this year, with rice
production not interrupted to any great extent. The rice sector has also been
striving to meet the strict requirements of fastidious foreign markets. With
abundant harvests and exponential export growth, farmers’ livelihoods have
been greatly improved.
COVID-19: Indonesia boosts
foreign investment attraction to revive economy
Indonesian
President Joko Widodo plans to boost foreign investment to support the
virus-battered economy as the government’s stimulus spending remains slow and
household spending weak.
The leader
has instructed Coordinating Maritime Affairs and Investment Minister Luhut
Pandjaitan to bolster investment in the third quarter this year, saying this
would be the key to economic growth.
Indonesia’s
economy dropped by 5.32 percent in the second quarter of 2020 compared to the
same period last year.
Household
spending, which makes up over 50 percent of the local GDP, declined by 5.51
percent year-on-year, while investment reduced by 8.61 percent./.
Thai PM proposes opening door
for foreign tourists
Thai Prime
Minister Prayut Chan-o-cha on August 26 proposed opening the country’s door
to foreign tourists who come from countries with a small number of COVID-19
cases.
The proposal
was in response to a call from the state and private sectors.
The Thai
leader said he agreed that Thailand should open the door in a limited way to
foreign tourists so as to improve the economic situation, and affirmed his
government will do all it can to ease the economic difficulties caused by the
pandemic.
He added
that state officials are discussing suitable measures to solve the problem of
the tourist quantity while ensuring the general safety.
Thailand did
not see any community-infected COVID-19 case over the past three months.
However, the country’s economy experience a fall as tourism and export – its
two main sources of income – are heavily influenced by the pandemic.
Indonesia, Philippines
enhance economic, trade cooperation
Indonesia
and the Philippines have discussed a proposal to organise dialogues in copper
and textiles, taking each other’s advantages and boost economic and trade
links between the two countries.
At the
virtual 8th Meeting of the Joint Working Group (JWG) on Trade, Investments,
Handicrafts and Shipping held on August 11, Iman Pambagyo, Director-General
for International Trade Negotiations at Indonesia’s Ministry of Trade, and
Ceferino S. Rodolfo, Undersecretary for Industry Development and Trade Policy
of the Department of Trade and Industry of the Philippines, agreed to
finalise a number of Memoranda of Understanding on investment promotion,
halal products quality assurance, and the creative economy.
The two
sides also agreed to hold dialogues on cooperation in copper and textiles
within the year in order to exchange information on best practices and
current industry regulations, and discuss collaboration activities, with the
participation from both the government and private sector.
They
consented that in the long term, these dialogues are seen as avenues to boost
the manufacturing capabilities of the two countries’ industrial sectors
through the infusion of investments and technology.
The
Indonesian side proposed increasing cooperation in fisheries and border
trade.
The
Philippines is committed to consider the proposals given its relevance to
both the Philippines and Indonesia as archipelagic states with common borders
and taking into account the developments in sub-regional integration,
Undersecretary Rodolfo said.
The two
countries also committed to work on outstanding issues with the end view of
enhancing the business environment affecting the operations of both sides’
businesses.
The JWG
serves as a focused mechanism to discuss trade, investments, economic cooperation
and other issues affecting the business environment, apart from the regular
engagement of both countries under the ASEAN framework.
In 2019,
Indonesia was the Philippines’ 8th trading partner, with total two-way trade
hitting 7.5 billion USD. Indonesia was also the Philippines’ 13th export
market, 6th import source (out of 191), and 27th source of approved
investments.
GMS countries seek to revive
tourism
Countries
from the Greater Mekong Subregion (GMS) convened the first Destination
Mekong Summit via video conference on August 26 to discuss ways to
revive tourism during and after the COVID-19 crisis, according to the
Cambodian Ministry of Tourism.
Senior
official from the GMS countries, namely Cambodia, China, Myanmar, Thailand,
Laos and Vietnam, touched upon various topics including solutions to the
impact of the pandemic, ways to restore regional tourism, and measures taken
by each GMS country to ensure tourists' safety and to prevent the spread of
the virus.
The meeting
noted that the infection rate in the GMS countries is very low compared to
that of other regions but foreign tourists are still not permitted because
the risk of imported cases is still high.
Thailand
initiated the "green travel bubble" concept on a bilateral or
trilateral basis during the meeting, and if successful it could be extended
to a multilateral level.
Vinamilk issues additional
shares to increase capital
The Vietnam
Dairy Products Joint Stock Company (Vinamilk) has announced it will issue
additional shares worth over 3.48 trillion VND (150 million USD).
The 348
million new shares will cost 10,000 VND each.
The list of
shareholders will be finalised on September 30.
As of August
25, more than 1.74 million Vinamilk shares were sold on the market.
Total
capital was estimated at over 44.6 trillion VND in 2019.
It posted
consolidated net revenue of some 15.4 trillion VND in the second quarter of
this year, up 9.5 percent against the previous quarter and 6.1 percent
against the same period of 2019./.
Minister calls on northern
localities to use ODA selectively
Minister of
Planning and Investment Nguyen Chi Dung urged localities on August 26 to not
use Official Development Assistance (ODA) loans next year for projects where
funding can be mobilised from the private sector or domestic sources.
Interest
rates on ODA are relatively high, so funds must be used selectively on
projects that are practical and vital to the development of localities, Dung
told an online conference on the formulation of socio-economic development
and public investment plans for the northern midlands and mountainous region
and the Red River Delta in the next five years and 2021.
It aimed to
address difficulties facing cities and provinces in the region in building
2021-2025 plans for socio-economic development and public investment and in
proposing solutions and policies to fuel economic growth and disburse public
investment and other funding sources this year.
The minister
asked localities to continue promoting reforms with a strategic vision in a
bid to formulate plans that best match their potential and advantages.
Localities
must also economically and effectively exploit resources, especially land,
Dung said, adding that they need to exert tight control over modified public
investment projects to minimise revenue lost from the State budget and
prevent waste.
They should
also prioritise major projects that create momentum and have a positive
effect on local socio-economic growth.
Similar
conferences will also be held for the central, central highlands, southern,
and Mekong Delta regions./.
Singapore, Indonesia to begin
discussions on “fast lane” for essential travel
Singapore
and Indonesia are set to begin discussions on a "fast lane" to
allow essential travel to gradually resume, said Singapore's Ministry of
Foreign Affairs on August 25.
It was
agreed by Singapore Foreign Minister Vivian Balakrishnan and his Indonesian
counterpart Retno Marsudi during the latter’s visit to Singapore from August
24 – 26. Marsudi has also paid a courtesy call on Prime Minister Lee Hsien
Loong.
Singapore
has established “fast lane” with Malaysia and China and is discussing the
setup of similar lanes with several others, including Japan. Indonesia has
also established “fast lane” for essential travel for business purposes with
China, the Republic of Korea and the UAE.
Both
ministers discussed how the two countries can continue to work together to
overcome common challenges brought about by the COVID-19 pandemic, said the
Singapore Ministry of Foreign Affairs in a statement.
They agreed
that both countries should work closely together to strengthen public health
cooperation, enhance economic growth and investments, deepen financial
cooperation and facilitate safe travel, it said.
In a
Facebook post on August 25, PM Lee said he spoke to Indonesian President Joko
Widodo several times in the past few months, and continued the discussion
with Indonesian FM Marsudi on "jointly overcoming the pandemic".
He also
noted that Singapore is on track to remain the top investor in Indonesia this
year, which has been the case since 2014./.
German businesses eyeing
Vietnam
Authorities
in the German city of Hamburg and German businesses in general have expressed
their interest in the potential the Vietnamese market holds and their belief
that the EU-Vietnam Free Trade Agreement (EVFTA) will help open up more
opportunities for German companies in the country.
At a recent
working session with Ambassador of Vietnam Nguyen Minh Vu, First Mayor of
Hamburg Peter Tschentscher spoke highly of the traditional friendship and
potential for cooperation between the two countries.
Hamburg
always has its doors open and is ready to bolster cooperation with Vietnam,
especially in fields where both sides possess strengths, he affirmed.
The mayor
lauded the Vietnamese community’s dynamic integration into German society as
well as its contribution to Hamburg’s economic development and cultural
diversity.
For his
part, Ambassador Vu said Germany is a leading partner of Vietnam in the EU,
with two-way trade reaching 14 billion EUR in 2019.
He also
highlighted the development of relations between Vietnam and Hamburg,
particularly in trade, maritime transport, shipbuilding, and tourism, saying
the German port city is as an important gateway for Vietnamese goods entering
Germany and Europe.
Trade
between Vietnam and Hamburg exceeded 2.32 billion EUR last year, up 10.8
percent year-on-year, according to the ambassador.
He said the
two sides still have substantial potential for cooperation, most notably in
maritime transport and renewable energy, including wind power, which is one
of Hamburg’s strengths, and human resources training.
The
ambassador hopes that Hamburg can step up connectivity and cooperation with
coastal localities in Vietnam such as Da Nang, Hai Phong, and HCM City.
At a meeting
with representatives from the Hamburg Chamber of Commerce (IHK), the German
Asia-Pacific Business Association (OAV), and German companies, Vu spoke about
Vietnam’s socio-economic development this year and the Vietnamese
Government’s efforts at reforming administrative procedures and improving the
local business environment to attract more foreign investors.
The EVFTA
and the EU-Vietnam Investment Protection Agreement are both expected to
create new opportunities for Vietnam and its partners, he said.
The embassy
is ready to work with German companies to promote cooperation between the two
sides and to organise trade, investment, and tourism promotions between
Vietnam and Hamburg.
President of
IHK Hamburg Norbert Aust spoke highly of Vietnam’s dynamic development over
the last 30 years, affirming the country is an attractive destination for
both European and German investors.
More than
200 companies from Hamburg have established economic ties with Vietnam, while
60 others have opened representative offices or joint ventures in the
country.
President of
OAV Hans-Georg Frey said the association has focused on cooperation with
ASEAN member countries while highlighting the long-term relationship between
Vietnam and Germany in cooperation projects, particularly in renewable
energy, the environment, and vocational training.
Vietnam, he
added, has become an attractive destination for German companies in recent
years.
He expressed
his belief that with the Vietnamese Government’s efforts to improve the
investment environment, the country’s socio-economic stability, and the EVFTA
coming into effect, Vietnam can serve as a potential and reliable partner in
the region, and the Vietnam-Germany strategic partnership will thrive in the
near future.
German business
representatives also shared their experience in doing business in various
sectors in Vietnam, such as food, coffee, design, and foreign trade, with
many saying the EVFTA will help remove tariff barriers and offer greater
opportunities to both sides.
Participants
were also impressed by Vietnam’s success in containing the coronavirus,
expressing their hope that entry restrictions and quarantine procedures will
be lifted soon so that trade may resume between the two countries./.
Import-export expected to
drive credit growth
Credit
growth for the remainder of the year will be driven by imports and exports,
according to a recent survey by the State Bank of Vietnam (SBV).
The SBV’s
Monetary Forecasting and Statistic Department said almost half (49 percent) of
credit institutions that took part in the survey believe this will be the
major impetus to boost credit.
Wholesale
and retail (47 percent), garment and textile (41 percent) and construction
(40 percent), were the next best industries according to the findings.
These four
sectors were also expected to push credit growth in 2021 with import and
export predicted to be the major driving force.
Credit
institutions expected a significant increase in credit demand in the second
half of this year, based on economic recovery forecasts and demand for
business expansion.
Credit risk
level of loans in the second half of this year was lower than the first but
for the whole year, the risk level would be higher than 2019, the survey
found.
Credit
institutions said they had cut marginal interest rates and costs in the first
six months of 2020 to increase credit accessibility for customers. Lending
terms would also be more relaxed.
However,
institutions tightened requirements on mortgaged assets and credit rating,
especially loans for real estate business, securities and consumer loans, to
ensure credit quality and limit risks.
The central
bank’s statistics showed credit expanded at less than four percent in the
first seven months of this year, equivalent to only half of the same period
last year.
Tran Du
Lich, member of the Prime Minister Nguyen Xuan Phuc’s Economic Advisory Council,
said the credit growth would hardly reach the target of 10 percent this year,
given the low credit absorbability of the economy in the COVID-19 pandemic./.
HCM City strives to speed up
public investment disbursement
The
Government has asked the Asian Development Bank (ADB) for a loan of
approximately 1 billion USD to ensure capital supply for the Ben Thanh - Suoi
Tien metro project, HCM City’s second metro line.
The new loan
is expected to be approved by the Government and the ADB next year.
The HCM City
People’s Committee, in consultation with the city’s Management Authority for
Urban Railways (MAUR), is working with the Ministry of Finance on procedures
for verifying re-lending conditions, which will serve as a foundation for
talks on supplementary loans over the next year.
MAUR
announced on August 25 that both new loans and the cancellation of a previous
loan of 390 million USD from the ADB had undergone thorough consideration by
the municipal People’s Committee and the MAUR and been approved by the bank.
This will
not affect project implementation, as the new loan covers the cancelled
amount, MAUR explained, adding that it will also reduce financing costs.
The ADB also
urged Vietnam to promptly abort the previous loan to balance out emergency
assistance for other programmes and projects on mitigating the impact of
COVID-19, as agreed by the bank and the Vietnamese Government./.
July auto sales stagnate
after surging in June
Auto sales
stagnated in July following a surge in the sale of both locally-assembled and
imported cars in June.
Figures from
the Vietnam Automobile Manufacturers’ Association (VAMA) reveal that sales
totalled 24,065 units in July, an increase of a mere 0.3 percent
month-on-month after rising 26 percent in June.
July sales
included 16,088 locally-assembled units, up 2 percent year-on-year, while
sales of imported vehicles stood at 7,977, down 2 percent.
June saw the
sale of locally-assembled cars rise 43 percent month-on-month to 15,874 units
and imported vehicles by 21 percent to 8,155. The sharp increases were
attributed to the fact that most local car dealers were offering major
discounts to kick-start demand.
The
Government’s move to cut car registration fees by half also stimulated
buying.
Director of
auto dealer Thien Phuc An, Nguyen Tuan, said most customers had refrained
from buying a new car until registration fees were cut from the beginning of
July.
They rushed
to sign good deals in June then waited before registering the new car, he
said.
For that
reason, few sales took place in July.
Insiders
have forecast that sales will slow down further during lunar July, which is
from mid-August to mid-September. This is traditionally called the “Month of
the Ghost” in Vietnam, and people widely believe they should not make major
decisions, such as purchasing cars or real estate, to avoid bad luck.
Sales of
imported vehicles totalled 4,078 in the first half of August, almost equal to
the July figure and only down slightly year-on-year.
As of August
15, Vietnam had imported close to 49,050 vehicles this year, worth more than
1.1 billion USD. This was only half of the 89,860, worth over 2 billion USD,
imported in the same period last year.
Thailand and
Indonesia remained the two largest exporters of automobiles to Vietnam,
accounting for 76 percent of the total in July.
Thailand
topped the list, sending more than 2,300 cars to Vietnam, up 33.3 percent
month-on-month. Indonesia sent 1,300, an increase of 664 (or 100.04 percent)
against June.
Other major
exporters included China, with 719 vehicles, the Republic of Korea with 121,
and Japan with 80./.
MoIT urges plastic producers
to apply for anti-dumping duty exemption
The Ministry
of Industry and Trade has urged plastic producers to apply for exemptions
from anti-dumping duty on the ministry’s public service e-portal at
https://dichvucong.moit.gov.vn or to the Trade Remedies Authority of Viet
Nam.
Deadline for
the submission is 5pm, September 24, 2020.
On July 20,
the ministry issued Decision No 1900/QD-BCT about the imposition of official
anti-dumping duty on plastics and articles made of polymers of propylene
originating from China, Thailand and Malaysia. The official duties ranged
from 9.05 per cent to 23.71 per cent, taking effect from July 23 and valid
for five years.
Under the
ministry's Circular 37/2019/TT-BCT regulating the application of trade
defence instruments, the exemption of anti-dumping duty would be given to
imported products which domestic producers could not produce or which could
not be replaced by domestically-produced products.
Other items
subject to the exemption included imported products which competed directly
with domestically-produced products but were not sold in the domestic market
and products for which local production did not meet domestic demand.
In order to
obtain exemptions from the anti-dumping duty, importers of one of the
products eligible for exemption must submit applications regarding the
anti-dumping duty.
VN firms urged to embrace
digital transformation to boost exports
Vietnamese
firms regardless of their scale need to get up to speed on digital
transformation to enable them to further penetrate global markets, a webinar
heard on Wednesday.
Tran Phu Lu,
deputy director of the Investment and Trade Promotion Centre of HCM City,
told the seminar titled Digital Transformation and Key Legal Points to Take
Advantage of the EVFTA’s Opportunities in the Current Context that trade
disputes and the COVID-19 pandemic have affected global investment and trade,
and supply chains have been disrupted.
Viet Nam’s
trade revenues were down 2.1 per cent year-on-year in the first half of the
year to US$238.4 billion, with exports falling 1.1 per cent to $121.2
billion.
Lu quoted
World Bank experts as saying that in the long run, the impacts of COVID-19
and trade tensions could lead to a profound restructuring of global value
chains, enabling Vietnamese firms to enter them.
Viet Nam is
the EU’s 17th largest trading partner and the second largest in Southeast
Asia while the EU is one of the country’s major markets, he said.
“The
European Union-Viet Nam Free Trade Agreement (EVFTA), which has taken effect
since earlier this month, is expected to open new doors and create growth momentum
for Viet Nam’s economy and exporters.
“It is
expected to boost digital transformation at Vietnamese companies to enable
them to capitalise on opportunities brought by the agreement.”
Viet Nam’s
exports to the EU last year accounted for only 1.8 per cent of the bloc’s
total imports, and so there is much room left, especially with the EVFTA
removing 85.6 per cent of tariff lines, equivalent to more than 70 per cent
of the country’s exports to the EU.
To succeed
in that market, Vietnamese firms need to focus on obtaining market
information, improving the quality of their products and services, building
and promoting their brands, professionalising sales, and increasing the
adoption of advanced technologies.
Besides,
their products must meet safety standards as well as social responsibility
and intellectual property requirements.
Dr Nguyen
Tuan Hoa of the Green Economic Institute, an arbitrator at the Viet Nam
International Arbitration Centre, concurred with Lu, saying that to
capitalise on the EVFTA, Vietnamese firms need to meet three main criteria:
product origin, quality and digital capability.
“EU
businesses are 10-15 years ahead of Vietnamese enterprises in terms of
digital capacity, and so we must strive to achieve the similar level as them
so that we can do business with them.
“Thus,
digital transformation is an inevitable process. If we don't do it, we will
be left behind.”
Enterprises
should start to get acquainted with e-contracts, pay digital taxes and
digitalise all business activities, he said.
Digital
transformation is the process of creating a new operating method based on
digital technologies like IoT, cloud, big data, AI, and blockchain to create
new production and business models, he said.
“Successful
digital transformation will bring many benefits to businesses such as
reducing costs and enabling them to access any market, not just the EU.”
E-contract
Lawyer Dinh
Quang Thuan of the Global Vietnam Lawyers Co. Ltd said the most popular
trading method today is the signing of electronic contracts using e-signature
technologies and digital signature certification services.
Signing of
e-contracts would help businesses save time and costs, especially in the
current situation, he said.
In reality,
the number of Vietnamese firms signing e-contracts remains modest since they
are afraid of legal and security risks and increase in costs, he said.
He expected
the signing of e-contracts to increase soon as companies realise the
importance of investment in digital transformation to enhance their
competitive advantages.
To reduce
the risks involved in e-contracts, firms should carefully study their
business partners, choose prestigious ones, exchange information via email
through clearly registered and owned domain names, he said.
They should
consult experts and lawyers before signing e-contracts to help ensure safety,
he said.
Lu said: “In
the context of the prolonged epidemic, the use of digital transformation for
market access and penetration is [vital].
“This is the
time for businesses to realise the advantages of the digital economy and the
urgent need for digital transformation.”
The webinar
was organised by the Investment and Trade Promotion Centre of HCM City and
the Viet Nam International Arbitration Centre.
Rooftop solar power needs
more policy support
The Viet Nam
Renewable Energy Week 2020 was launched in Ha Noi on Tuesday. It is
co-organised by the Viet Nam Sustainable Energy Alliance, the Viet Nam
Climate Action Alliance, and the Viet Nam Union of Science and Technology
Associations. This fifth event, “Breakthrough to Recovery and Green
Development for a Peaceful Life”, aims to put forward measures promoting
sustainable energy development, ensuring energy security, removing barriers,
and bolstering green economy recovery and growth.
The four-day
event will also offer the chance for stakeholders to contribute to the
country’s energy transition in an effective and sustainable manner.
Cecile Leroy
from the Delegation to the European Union in Viet Nam said the EU has signed
numerous cooperation agreements with Vietnamese ministries and sectors in
sustainable energy transition.
It has also
provided its Vietnamese partners with assistance in energy development
policies and in raising capacity, awareness and energy access among the
public.
The EU
stands ready to share knowledge in projects, finance and the legal framework
for green recovery and development, she said.
Renewable
energy currently accounts for 10 per cent of the national grid’s total
capacity and Viet Nam has emerged as a leader in the development of renewable
energy resources in Southeast Asia.
Rooftop power
Rooftop
solar power in Viet Nam has exploded with 1,000MWp in just two years,
however, there are still many obstacles, especially policies, finance and
initiatives to promote its development.
A seminar
titled “Developing rooftop solar power in Viet Nam: Benefits, bottlenecks and
solutions" was held within the framework of the event.
Viet Nam
Electricity (EVN) reported that the country has a total of 45,299 rooftop
solar power projects put into operation nationwide by August 23, with a
capacity of 1,029MWp, output reaching about 500,692MWh, emissions reduction
of about 457,132 tonnes of CO2 (equivalent to 77,257 TOE).
Nguy Thi
Khanh, director of Green Innovation and Development Centre (GreenID), said
that the supporting price mechanism has helped Viet Nam achieve 1,000MWp for
rooftop solar power in the past two years, and at the same time create
conditions for thousands of domestic and foreign investors and enterprises to
participate in the market from research, production to distribution.
However, the
result was low compared to the technical potential estimated at 48,000MWp of
rooftop solar power, said the director.
"There
are still many bottlenecks that need to be removed, especially related to
policies and finance to promote rooftop solar power development," said
Khanh.
Tran Viet
Nguyen, an EVN representative, said that rooftop solar power had generated a
lot of electricity on the grid.
To continue
to promote rooftop solar power development, EVN had publicised processes,
procedures, and created maximum conditions for investors in the process of
signing the connection agreements, and power trading contracts.
However,
Nguyen said that in reality, the communications and promotion for rooftop
solar power were still limited; many households were hesitant in investment
due to a lack of information about product quality, equipment installation,
operation and warranty units.
At the same
time, the cost of equipment and installation was still high, there were no
policies to encourage household customers to invest and install; there were
no national technical standards for rooftop solar power equipment and
systems, he added.
To promote
rooftop solar power projects, Nguyen proposed the Government, ministries,
sectors and investors continue to study initiatives, mechanisms and
supporting packages to reduce costs of installation and operation, then it
was possible to replicate rooftop solar power, especially for low-income
households.
In addition,
EVN also proposed the Ministry of Industry and Trade and the Ministry of
Science and Technology to soon study and promulgate safety standards and
techniques for rooftop solar power.
Intraday trading, short
selling soon available: draft circular
Investors
may be able to buy and sell shares within the day if the securities firm is
allowed to balance the shortage of securities to settle the transactions,
according to the Ministry of Finance.
Investors
must sign a contract with their securities companies and the contract should
clarify the risks, expenses and losses that investors must pay for, the ministry
said in a draft circular to guide the securities market trading.
Each of
investors can only open one intraday trading account at the same securities
firm where they have the main trading accounts.
The intraday
trading account must be separated from the main account or it should sub for
the main account. The securities firm is obliged to split an investor’s main
account, intraday trading account and depository account (if any) from one
another.
The list of
stocks available for intraday trading will be picked by the securities
company and those stocks should be the ones available for margin lending at
the stock exchanges.
The
brokerage must post the list of stocks available for intraday trading on its
website.
Within the
trading day, if the total quantity of stocks bought by the investor
outclasses the quantity of stocks offered for sale or vice versa, the
brokerage house is obliged to balance the cash or the stock difference when
the transactions are settled.
On the other
hand, investors are required to pay all expenses to the securities firm for
its support to settle the transactions. In return, the brokerage may ask the
investors to deposit collaterals for their transactions in cash or
securities.
The total
value of all intraday trading deals at each securities firm cannot exceed a
specific rate compared to its equity capital. The figure cannot beat the rate
compared to the firm’s daily average trading value made in the previous
month. The rates will be regulated by the State Securities Commission (SSC).
The SSC is
also empowered to halt the intraday trading session to settle the market amid
potential turbulence.
In addition,
investors are able to short-sell if they open short accounts at the eligible
brokerages where their main trading accounts are managed. The short account
is a sub to the main account or it should be a separate account.
Under the
draft circular, stocks traded on the Unlisted Public Company Market (UPCoM)
may be available for margin lending.
According to
Bao Viet Securities Co (BVSC), the regulations on intraday trading and short
selling may give the market a boost if the circular gets approved as the two
methods will attract more investors and increase the market trading
liquidity.
The company
also said that the two tools will help Viet Nam meet the standards set by the
two international finance firms FTSE and MSCI, improving its chance to be
upgraded to the emerging market level and draw more foreign capital.
Conference promotes Japanese
investment in Binh Duong
About 280
leaders of Japanese enterprises took part in an online investment promotion
conference held on August 26 to introduce the southern province of Binh
Duong’s industrial capacity and potential.
Co-organised
by the Osaka Chamber of Commerce and Industry and Binh Duong-based industrial
infrastructure developer Becamex IDC, the function gave information on the
local industrial parks and incentives for investors, while collecting
investors’ profiles and demand.
Representatives
of the provincial competent agencies and sectors took the occasion to answer
questions from Japanese firms that are looking for investment and cooperation
opportunities in the locality.
Speaking at
the event, Permanent Vice Chairman of the provincial People’s Committee Mai
Hung Dung said Vietnam in general and Binh Duong in particular prioritise
foreign-funded projects that apply advanced technologies and have high value
added and linkages to form global supply chains.
With
strength in industrial development, Binh Duong is the best option for foreign
investors in Vietnam, he added.
Currently,
the province is ranked second nationwide in terms of foreign investment
attraction by reeling in over 35.05 billion USD from 65 nations and
territories. Japan has so far poured capital in many big projects here./.
Japanese investors satisfied
with investment conditions in Hung Yen: diplomat
Japanese
enterprises operating at Hung Yen’s industrial park are pleased with
favourable conditions they have received here, with many planning to expand
their investment, according to Japanese Ambassador to Vietnam Yamada Takio.
The diplomat
made the remark at a meeting between working delegations of the Foreign
Ministry and the embassy with authorities of the northern province on August
26 to promote investment cooperation between Japan and Hung Yen.
Hung Yen
adjoins Hanoi and is located close to the capital’s Noi Bai international
airport, as well as to the Hai Phong and Cai Lan ports.
At the
meeting, Deputy Foreign Minister Le Hoai Trung said the province has all
conditions needed to serve all types of investment.
He expressed
his hope that the embassy will inform more investors on the locality to boost
related economic and cultural cooperation ties.
Chairman of
the provincial People’s Committee Nguyen Van Phong stated Japan investors in
Hung Yen are highly valued for their investment scale, production
technologies, environmental protection efforts, and tax payment.
Currently,
Japan is the biggest foreign investor in the province with 166 projects worth
over 3 billion USD.
For his
part, Yamada Takio highlighted Hung Yen has favourable conditions for
building factories, adding that in addition to big names like Panasonic,
Toto, and Daikin, small Japanese firms also choose to invest in the locality.
Many of them
operate at the local Thang Long 2 industrial park, he said, noting that the
expansion of the park will help attract even more Japanese capital.
The diplomat
took the occasion to list a number of difficulties in purchasing materials in
Vietnam and seeking high-quality employees, then asked local authorities to
promote linkages among firms and the development of support industry.
He also
suggested Hung Yen boost the quality of high school education and the
teaching of the Japanese language at school./.
Construction starts on Ca Na
Seaport Complex Project
Ninh Thuan
Province people's Committee held the groundbreaking ceremony for the first
phase of Ca Na General Seaport Project on August 25.
The seaport
will cover over 100 ha with a designed capacity to deal with 3.3 million tonnes
of goods each year. It is located to the west of Sung Trau tourism area,
Phuoc Diem Commune, Thuan Nam District. This is the border area between Ninh
Thuan and Binh Thuan provinces and adjacent to the coastal road DT 701.
The first
phase of the project was approved by Ninh Thuan People's Committee in 2018
and an adjustment was issued on August 24.
The project
includes several main constructions including two 70,000-100,000 DWT ports, a
20,000 DWT port, warehouses and other infrastructure. The port will enable
firms in Ninh Thuan as well as the South Central Coast and Central Highlands
to work more efficiently. It would also help to improve the transportation of
components of renewable energy projects in Ninh Thuan.
The project
will use smart technology to help deal with the cargo and promote sustainable
development.
The first
port is expected to be completed in December 2022. The construction of the
second port will be started in January 2023 and completed in October 2025.
The 20,000 DWT port will be built in November 2025 and completed in August
2026.
ASEAN economic ministers hold
consultation with Australia, New Zealand
The ASEAN
economic ministers held the virtual 25th consultation with external
partners Australia and New Zealand on August 29, within the framework of the
52nd ASEAN Economic Ministers’ Meeting and related meetings.
The event
was co-chaired by Vietnamese Minister of Industry and Trade Tran Tuan Anh,
Australian Minister for Trade, Tourism and Investment Simon Birmingham, and
Minister of State for Trade and Export Growth Damien O’Connor.
They said
two-way trade between ASEAN and Australia rose slightly to 87.8 billion USD
last year from 86.8 billion USD in 2018. Meanwhile, that between ASEAN and
New Zealand went up 6.6 percent to 12.1 billion USD in 2019 from 11.4 billion
USD in 2018.
Australia’s
direct investment in the bloc reached 32.6 billion USD last year, or 5.5
percent of the country’s total. New Zealand also poured 560 million USD in
the grouping, accounting for 3.2 percent.
Expressing concern
over the impacts of COVID-19, ministers said the hardest-hit sectors include
transportation, tourism, retail and other services, besides disruption of
supply chains and financial markets.
They
reaffirmed commitment to opening trade and investment markets to reinforce
resilience and sustainability of regional supply chains and maintain the flow
of goods and services.
They pledged
not to impose new trade limitation measures, including non-tariff ones that
hurt the flow of key goods and services in the fight against the pandemic.
Participants
agreed to give priority to facilitating economic recovery following the
pandemic, as well as strive to sign the Regional Comprehensive Economic
Partnership this year, thus expressing support for regional multilateral
trade system and regional economic integration.
Acknowledging
progress in negotiations for the upgrade of the agreement establishing
the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), they directed
officials to continue stepping up the process in the near future, including
removing unnecessary barriers to restore regional business community’s trust.
They
highlighted a need to reform the World Trade Organisation and vowed to join
hands during the process to meet expectation of member states.
They
consented to hold the 12th AANZFTA Joint Committee and the ninth ASEAN –
Closer Economic Relations (CER) Integration Partnership Forum at the earliest
possible time.
ASEAN, India seek ways to
foster economic growth
Economic
ministers of 10 ASEAN member states and India discussed measures to fight the
COVID-19 pandemic and maintain macro-economic stability at the 17th AEM-India
Consultations held within the framework of the 52nd ASEAN Economic Ministers’
Meeting (AEM-52) on August 29.
The event
was co-chaired by Vietnamese Minister of Industry and Trade Tran Tuan Anh and
India’s Minister of Railways and Minister of Commerce and Industry Piyush
Goyal.
The
ministers said that to boost economic development and ensure macro-economic
stability, it is necessary to reopen markets and ensure sustainable supply
chains in the region, especially for essential commodities such as
pharmaceuticals, medicine and food.
They
recalled both sides’ efforts to ratify their investment agreement and review
the ASEAN-India Trade in Goods Agreement (AITIGA).
They also
highly evaluated activities of the ASEAN-India Business Council in 2020,
especially amid the COVID-19 pandemic, which they said, have helped promote
trade and investment cooperation and mitigate negative impact of the
pandemic.
ASEAN
statistics showed that the trade turnover between ASEAN and India accounted
for 2.7 percent of the bloc’s total trade value, while India’s investment in
the bloc made up 1.3 percent of the total FDI attracted by the bloc.
ASEAN, partners agree to
promote post-COVID-19 economic cooperation
The Economic
Ministers of ASEAN member states and their partner countries on August 28
emphasised the importance of further strengthening regional economic
cooperation and promoting economic growth post COVID-19.
In a Joint
Media Statement issued after the 8th East Asia Summit (EAS) Economic
Ministers’ Meeting, which was held in the form of a video conference as part
of the 52nd ASEAN Economic Ministers’ Meeting and related meetings (AEM-52),
the Economic Ministers from the ten ASEAN Member States, Australia, China,
India, Japan, the Republic of Korea, New Zealand, Russia and the United
States underscored the importance of strengthening regional supply chains to
make them resilient and less vulnerable to shocks and to advance sustainable
economic growth.
They
reaffirmed their commitment to promote trade and investment, minimize
disruptions to trade and global supply chains and facilitate supply chain
connectivity, including for essential goods such as medical supplies,
medicines, including vaccines, food, commodities and other essential supplies
and services in the region.
They
welcomed regional initiatives to mitigate the impact of the pandemic
including the establishment of the ASEAN COVID-19 Response Fund, as well as
the work towards the establishment of the ASEAN Regional Reserve of Medical
Supplies and the Standard Operating Procedures for Public Health Emergencies
Response.
They
acknowledged the important role of initiatives which aim to ensure the
equitable global distribution of safe and effective COVID-19 vaccines,
recognized the importance of facilitating essential movement of people across
borders, without undermining each country’s efforts to prevent the spread of
the virus, to stabilize the trade and investment.
The
Ministers reiterated their support for ASEAN and ASEAN-centred architecture,
reflected among others in the ASEAN Outlook on the Indo-Pacific (the
Outlook), which could contribute to post-pandemic recovery in the region.
They
exchanged views on how to accelerate economic growth, maintain supply chains
and market stability, and strengthen the economic resilience of the EAS
region post COVID-19.
They also
discussed the importance of harnessing the opportunities of digital economy,
and how to enhance the application and the utilization of digital
technologies in the region to facilitate digital economy.
The
Ministers affirmed that this is especially important during the COVID-19
pandemic and this provides appropriate hard/soft infrastructure and human
resources development that considers the needs and reskilling and upskilling
of persons likely to lack digital skills and access to technology including
women, MSMEs and other vulnerable groups, especially those living in remote
and rural areas and more likely to lack digital skills and access to
technology.
They also
underscored the importance of collective efforts in promoting economic and
social resilience in the region, and reiterated their support for the necessary
reform of the WTO.
The
Ministers vowed to continue to work together to realize a free, fair,
transparent, nondiscriminatory, predictable, and stable trade environment,
and affirmed the importance of agreed upon rules in the WTO, which can
enhance market predictability and business confidence.
They agreed
that any trade restrictive emergency measures put in place to address the
impact of COVID-19 must be targeted, proportionate, transparent, temporary,
consistent with WTO rules and do not create unnecessary barriers to trade or
disruption of global and regional supply chains.
The
Ministers acknowledged the significant contribution of Economic Research
Institute for ASEAN and East Asia (ERIA) through activities that support
economic integration and digital economy in the region.
They
welcomed ERIA’s paper on "Accelerating restoration of economic growth,
maintaining market stability and strengthening resilience of the EAS region
in response to the COVID-19 pandemic", and encouraged ERIA to undertake
policy-based research to improve trade and investment including making value
chains resilient to shocks of EAS economies, effectively address the
impending recession, promote new technologies and develop a framework for the
EAS regional economic integration and development after overcoming the
COVID-19 pandemic, taking into account existing initiatives.
ASEAN, Canada look to
negotiate bilateral trade deal
The 9th
AEM-Canada Consultations took place on August 29 within the framework of
the 52nd ASEAN Economic Ministers’ Meeting (AEM-52).
Vietnamese
Minister of Industry and Trade Tran Tuan Anh and Canadian Minister of Small
Business, Export Promotion and International Trade Mary Ng co-chaired the
virtual event.
Participating
ministers evaluated growth in trade exchange and investment between the two
sides when two-way trade reached 17.1 billion USD and Canada’s investment in
ASEAN hit 3.2 billion USD last year.
These
figures helped Canada become ASEAN’s ninth biggest trader and fifth largest
investor, they noted.
They
acknowledged positive progresses in implementing a plan within the framework
of the ASEAN-Canada Joint Statement on Trade and Investment in the 2016-2020
period, and approved another plan for 2021-2025 with extensive commitments.
They
appreciated main outcomes of the fourth trade policy dialogue between the
bloc and Canada held on June 8-12, with the focus on Government procurement,
labour, environment and State-owned enterprises.
The
ministers also hailed both sides’ efforts towards negotiations on a bilateral
trade agreement in the time ahead, while showing concerns over negative
impact of the COVID-19 pandemic on people’s lives and economic development in
the region and over the globe.
They pledged
to continue opening the market and boosting investment to encourage the
circulation of essential goods and services.
They also
agreed not to apply protection measures, including non-tariff measures that
negatively affect the flow of essential goods and services in the coming time
to join hands in fighting the pandemic.
Source:
VNA/VNN/VNS/VIR/VOV/SGT/NDO/Dtinews
|
Thứ Hai, 31 tháng 8, 2020
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét