VIETNAM BUSINESS NEWS JULY 215:40 Vietnam makes great strides in clean energy development: Asiatimes 
According to the article, the renewable energy sector is booming in Vietnam thanks to its rapid economic growth over the past five years, led by massive inflows of foreign direct investment (FDI) as multinational companies set up their factories here to diversify supply chains and to benefit from Vietnam’s young and well-educated labour force. Economic growth and FDI inflows have led to a huge surge in demand for energy in the country, it said. In the context of limited domestic power sources, in recent years, Vietnam has shifted towards development of renewable energy, mainly solar and wind energy, the article noted. According to Fitch Ratings, Vietnam’s solar production already reached 16,640 MW last year, accounting for 24 percent of the total energy output of the country. Asiatimes.com quoted Frederick Burke, Managing Director of Baker McKenzie/Vietnam, as saying that Vietnam has hit a home run in terms of solar energy, and it is way above its original power development plan target at about double what it was targeting. He said that one reason for the clean energy boom in Vietnam is due to customer demand, specifically from brand-name consumer product conglomerates that are looking for a “Green supply chain” to satisfy their home market requirements for more climate-friendly goods. Investment flowing into Vietnam's industrial parks has been spent on rooftop solar as a climate-appropriate solution to meet the electricity demand of those IPs themselves. Obbon Thiracahi, senior analyst for corporates at Fitch Ratings, said many energy giants have come to Vietnam because there are many opportunities for investment in the Southeast Asia nation./. Target for agro-forestry-fishery export value revised up to 45 billion USD The total export turnover of agricultural, forestry and aquaculture products reached 24.23 billion USD in the first six months of 2021, an increase of 28.2 percent compared to the same period of 2020, according to the Ministry of Agriculture and Rural Development (MARD). Based on the encouraging outcome and signs of recovery in the world market, the ministry has raised the yearly target for export earnings from those products to 45 billion USD, 3 billion VND higher than the amount assigned by the government. The high export turnover in the first half was
attributable to surges in the export value of several products, such as
rubber, tea, pepper bean, cashew nuts, fruit and vegetables, cassava and
cassava products, timber and wood products. Notably, rubber saw increases of
41.3 percent in export volume and 80 percent in value; cashew nut up 22.2
percent in volume and 11.1 percent in value; timber and wood products up
almost 75 percent in value. Quang Ninh acts as gateway for Vietnam-China cross-border economic ties Over the past years, the northern province of Quang Ninh has been working to gradually establish itself as a “gateway” for cross-border trade between Vietnam and China, thus contributing to bilateral economic ties. Quang Ninh, which shares more than 118km of land border and 191km of sea border with China, is located at the start of the countries’ “Two Corridors, One Belt” economic cooperation zone, in the Nanning - Singapore Economic Corridor, and the expanded Gulf of Tonkin inter-regional cooperation area under the ASEAN - China Free Trade Area. It has signed 26 provincial-level agreements with Chinese localities. Via these cooperative ties, the province has gradually established itself as “a gateway, a bridge” in the Vietnam - ASEAN - China cooperation, helping to achieve major outcomes in almost all areas, especially cross-border economic and trade partnerships, road transport, border gate opening and upgrade, border management, and the fight against cross-border crimes. In 2020, the value of goods traded through Quang Ninh’s border gates approximated 2.79 billion USD, including over 1.11 billion USD in exports, 980 million USD in imports, and 695 million USD worth of items temporarily imported for re-export or stored in bonded warehouses. Of the total figure, Mong Cai city of the province posted over 1.09 billion USD in exports, nearly 1.04 billion USD in imports, and 694 million USD of goods temporarily imported for re-export or stored in bonded warehouses. Hai Ha district recorded 3.5 million USD in exports and 4.5 million USD in imports, and Binh Lieu district had 16.6 million USD in exports and 65.9 million USD in imports. On July 16, 2021, authorities of Quang Ninh and the Guangxi Zhuang Autonomous Region of China officially launched customs clearance through Bac Luan No 2 Bridge, which links Mong Cai International Border Gate of Vietnam with Dongxing Border Gate of China. The two sides have also coordinated to complete infrastructure for Hoanh Mo - Dong Zhong border gate area so that this border gate pair will officially make debut in the near future. After a hiatus caused by the COVID-19 pandemic, some local border gates, crossings, and sites for shipping goods to China have been reopened such as the Mong Cai International Border Gate and Bac Luan No 2 Bridge (on February 7, 2020), and the Hoanh Mo Border Gate in Binh Lieu district (March 2, 2020). Bac Phong Sinh Border Gate in Hai Ha district resumed customs clearance on June 18 last year and export and import activities less than one month later, on July 6. Facing the pandemic’s substantial impacts on trading, people’s exit from and entry into the country, as well as cooperation between Quang Ninh and the Guangxi Zhuang Autonomous Region, the provincial Party Committee has ordered relevant authorities and localities to comply with the Party and Government’s directions while proactively adjusting plans so as to simultaneously curbing the outbreak and sustaining cooperation activities with the Chinese side. Since the beginning of 2021, the administration of Mong Cai city has held five meetings with its Guangxi counterpart to work out measures to promote bilateral trade. As a result, in spite of the pandemic’s impacts, the city’s environment for export and import activities has continued to improve, more goods have been traded via official channels, and the trade revenue has also been on the rise. As of May 31, Mong Cai recorded 1.47 billion USD in trade revenue, growing 14 percent from a year earlier. The turnover included 628 million USD in imports, down 28 percent, and 842 million USD in exports, up 103 percent. For 2021, Quang Ninh province is moving to carry out the Party and State’s foreign policy and effectively implementing friendship exchanges and cooperation programmes with Guangxi. Its authorities and localities are also working to maintain relations with their Guangxi counterparts in combating COVID-19, stepping up transport connectivity, upgrading border gate pairs, facilitating customs clearance, and gradually resuming cross-border trade, investment, and tourism./. HCMC encourages enterprises to conduct weekly Covid-19 tests on laborers The HCMC government has encouraged enterprises in the city to buy test kits and conduct quick Covid-19 tests on their employees once a week as part of the city’s plan to combat the pandemic until July 10. Accordingly, enterprises will conduct the tests under the instructions of the municipal Center for Disease Control, the local media reported. The city has also worked out a plan to take samples and conduct screening in industrial and export processing zones and hi-tech parks and produce the results within 12 hours. In addition, the testing of residents in districts has been enhanced. The healthcare sector should take the initiative to improve the testing capacity. People at centralized quarantine centers and in areas under lockdown should have their samples taken daily. If quick tests show a negative result, the healthcare sector will conduct group tests of five to 10 samples, using the Realtime-PCR method, to test one million samples per day. The city has also asked the healthcare sector to determine the areas with a high risk of pandemic transmission an hour after Covid-19 cases are detected. As some medical workers have been infected with the coronavirus, the municipal government asked all medical staff to strictly comply with protective measures and prevent cross infection at treatment facilities. The city has also reviewed the capacity of existing centralized quarantine centers to draw up plans to expand them to meet the demand in case the number of direct contacts of confirmed Covid-19 cases increases sharply. Hotels meeting requirements in the city have been requisitioned as paid quarantine facilities. In addition, the city has piloted the home quarantine of those in direct contact with Covid-19 cases in line with the Ministry of Health’s directions. Plans and resources have been made available in case of 10,000 Covid-19 patients. A group in charge of buying Covid-19 vaccines must quickly work with partners and vaccine producers to accelerate the purchase of the vaccines. The first vaccine batch must be shipped to the city at the end of this quarter at the latest so that two thirds of the city’s population will be vaccinated against Covid-19 this year. Besides monitoring the compliance with anti-pandemic regulations at supermarkets, wholesale and traditional wet markets, the city will shut down those failing to ensure safety. HCMC is experiencing the largest-ever Covid-19 outbreak with the number of new Covid-19 cases surging despite social distancing measures. Farm exports expected at US$45 billion this year Despite the impact of the Covid-19 pandemic, the Ministry of Agriculture and Rural Development is determined to beat the agro-forestry-fishery export target for 2021 by US$3 billion, reaching US$45 billion. The ministry is upbeat about the new target given the positive results in the first half of the year. Between January and June, the country’s agro-forestry-fishery exports reached US$24.2 billion, a year-on-year rise of 28.2%, with agricultural, fishery and forestry products gaining respective export growth of 13%, 12.5% and 61.1%. Minister of Agriculture and Rural Development Le Minh Hoan asked the relevant units to enhance their efforts to implement the dual task of fighting Covid-19 and ensuring economic growth in the second half of the year to fulfill the target of farm exports. It is necessary to adopt effective solutions focusing on key products to ramp up their exports, said Minister Hoan. In 2021, the ministry set a target for the agriculture sector’s gross domestic product growth rate at 3%-3.2%. Besides, the sector’s production value is projected to rise by 3.2%-3.5%, of which cultivation, husbandry, forestry and aquaculture will advance by 1.55%, 5.9%, 4% and 3.8%, respectively. Over the past six months, Vietnam saw an impressive performance in the cultivation, husbandry, forestry and aquaculture sectors. Specifically, the total area under perennial plant cultivation was over 3.6 million hectares, up by 46,100 hectares year-on-year, while the fruit tree area reached 1.1 million hectares, a 3.2% year-on-year rise. As for the husbandry sector, cattle and poultry farming recovered. The total meat output reached some 3.2 million tons over the six-month period, up 22.6% year-on-year. Apart from this, the total output of fishery products was 4.1 million tons between January and June, up 2.8% year-on-year, the local media reported. Green hydrogen development associated with offshore wind power, experts say The Ministry of Industry and Trade (MoIT) needs to study and direct Vietnam Electricity (EVN) to issue regulations on the transmission and distribution system to ensure the stable operation of the power system amid abundant wind and solar power sources, said Tran Viet Ngai, Chairman of the Vietnam Energy Association. He said the ministry should also develop energy storage systems (ESS), stored hydroelectricity to be synchronised with renewable energy development. One of the difficulties to develop wind and solar power in the Draft Power Plan VIII is to ensure the construction of a synchronised and stable grid system. Projects that combine offshore wind power with green hydrogen production with a large enough scale bring a new approach for both domestic and export to international market, a viable solution that is applied and accelerated in many countries. Nguyen Viet Anh, Vice President of the German-Vietnamese Innovative Network, said: “Hydrogen will be an important foundation to provide stable and sustainable energy for Vietnam and an important foundation in National Power Planning VIII. However, the necessary condition here is to continue to expand and improve the existing infrastructure through international programmes and cooperation.” Green hydrogen is produced using renewable energy to provide electrolysed energy - separating water molecules into hydrogen and oxygen, which is strongly developed to replace fossil fuels, serving the production, storage of electricity, industry, transportation, fertiliser production and chemicals. According to analysts of Fitch Solutions, global annual hydrogen demand is forecast to increase from about 80 million tonnes in 2021 to 100 million tonnes by 2030. The green hydrogen sector could produce about 10 million tonnes per year by 2030 - up from the current 0.1 percent hydrogen market share. The portfolio of green hydrogen projects reached 71 GW in February although there were no projects in the 2019-20 period and increased in the second quarter to 121GW, including 136 projects in the planning and development phase. The average investment is about 4.5 billion USD. Global growth is being driven by Western Europe and Asia-Pacific, with these regions accounting for 82 percent of the above-mentioned green hydrogen projects. This is due to increasingly strict emissions regulations, the strong development of renewable energy with low electricity prices and "ambitious" decarbonisation targets. Reaching the economic target of zero greenhouse emissions by the middle of this century will likely require the use of about 500 to 800 million tonnes of green hydrogen per year, a 5-7 times increase from today. By 2050, green hydrogen (and its derivatives) can account for 15-20 percent of the final energy demand, according to the Energy Transition Committee. There are two factors that greatly affect the cost of producing green hydrogen, including the cost of input electricity, accounting for up to 80 percent and the cost of storage and transportation. Vietnam has world-class wind and solar power potential according to the figures outlined in the Draft Power Plan VIII, especially offshore wind power up to 475GW. The country is located on international maritime routes with many seaports. These are favourable factors to attract foreign investment to develop offshore wind power projects and green hydrogen projects, exporting to potential markets such as Japan, the Republic of Korea and EU countries. The combination of offshore wind power projects with green hydrogen also reduces the investment burden of the domestic transmission grid and maintains the system’s stability through electricity storage by green hydrogen batteries, solving the challenges of electricity generation. The current guidelines set out in the Draft Power Master Plan VIII promote the development of renewable energy in particular and industries in general in a green and sustainable direction. Resolution 55-NQ/TW dated February 11, 2020 of the Politburo has set the task of “Performing technological research, developing a number of pilot projects for production and encouraging the use of hydrogen energy appropriately with the general trend of the world”. The draft power plan VIII needs to be supplemented with goals and a roadmap for the development of offshore wind power with green hydrogen. Currently, Vietnam has a number of investors interested in developing hydrogen, including Enterprize Energy Group (EE-UK) has proposed to the Government and the MoIT to combine the development of Thang Long offshore wind power project (in Binh Thuan province) with green hydrogen production. Ian Hatton, the group’s chairman, said: “With the results of the survey, wind measurement for more than 12 consecutive months and the geology of the seabed off the coast of Binh Thuan province that EE Group has obtained, the use of wind turbines with large capacity to produce electricity combined with hydrogen through the seawater electrolysed system is very potential. Vietnam can fully use wind energy towards this goal, meeting domestic demand and exports.”/. Vietnam’s green mangos promoted in Australia A programme popularising Vietnam’s green mangos is being held in Australia till the end of July, after five tonnes of the fruit have arrived in the country. The batch was imported by Melbourne-based Dalat Import-Export Company and distributed by ASEAN Produce Pty Company. Another batch of 25 tonnes of Son La green mangos, exported by Rong Do Company, is also expected to be delivered soon. As part of the programme, the Vietnam Trade Office in Australia is also working to add Vietnamese green mangos to restaurants’ menus. Accordingly, An Viet restaurant chain in Sydney agreed to not only bring green mangos to its menus but also place orders and deliver them to consumers. The office also offered a prize worth 500 AUD for a lucky consumer who buys green mangos or orders dishes made from the fruit. It also launched marketing campaigns on social media and called on residents to buy mangos in Sydney and Melbourne. Consumers will also have a chance to win prizes such as Vietnamese coffee branded Dr. Nam. In the first four months of this year, Vietnam exported mangos worth 275,000 USD to Australia. Since 2019, green mangos have been chosen by the office to step up marketing, together with frozen durian, rice and other farm produce. In 2020, green mango exports to Australia doubled the volume in the previous year. In the first five months of 2021, Vietnam’s farm produce exports to Australia surged by 51 percent year-on-year to over 34 million USD./. Austria supports EU-Vietnam Investment Protection Agreement An Austrian economic official has voiced his country’s
support for the EU-Vietnam Investment Protection Agreement (EVIPA) during
receiving Vietnamese ambassador to Austria Nguyen Trung Kien on June 30. Ambassador Kien thanked Austria for its support and said Austrian businesses have many opportunities to invest in Vietnam in the future. Austrian companies can invest in Vietnam to access a market of 97 million people, and through Vietnam to access the ASEAN market with 670 million consumers, noted the diplomat. The two sides highly appreciated the positive development of bilateral economic, trade and investment relations in recent times, especially after the Free Trade Agreement between the EU and Vietnam (EVFTA) officially took effect in August 1, 2020. Vietnam wishes to absorb leading technologies from Austria to improve the competitiveness of its economy, and on the other hand, it wants to bring its high-quality agricultural products to the Austrian market, Kien said. The two sides agreed to organize various activities in the coming time to promote their products and increase trade exchanges, including activities to celebrate 50 years of bilateral diplomacy in 2022. They reaffirmed their desires to cooperate in vocational training and employment, especially in the fields of information technology and nursing. They also consented to strengthen bilateral cooperation in e-commerce, aiming to serve the interests of micro, small and medium enterprises. The two sides agreed to maintain and soon kick-start the regular roundtable meeting every quarter between the Embassy and the Austrian Ministry for Digital and Economic Affairs in order to remove difficulties in bilateral cooperation and to exchange information about opportunities and potential areas of cooperation. Vietnam, Tunisia strive to enhance trade exchanges Approximately 100 Tunisian and Vietnamese businesses
attended a teleconference held on June 30 with the aim of seeking greater
import-export opportunities to markets of both sides in the near future. Tai noted that the event will allow local businesses to introduce import and export prospects for their agricultural products, seafood, and beverages to Tunisian consumers, along with potential customers in the African market as a whole. In response, Najeh ben Abdesalem, vice president of the Tunisian Chamber of Commerce and Industry, said the teleconference provided an ideal venue in which businesses could promote trade exchanges, adding that Tunisia represents an important gateway for Vietnamese enterprises and foreign investors to penetrate Africa's vast market. With a population of more than 1.25 billion people, there are major prospects ahead throughout the continent, with North Africa in particular having plenty of prospects, especially countries such as Algeria and Libya. It was reported at the event that two-way trade exchanges between both countries remains modest at only US$65 million annually. The two sides were therefore advised to increase their exchange of trade delegations and actively participate in forums, trade fairs and exhibitions in the near future. According to the General Department of Vietnam Customs, trade turnover between Vietnam and Tunisia in 2019 stood at only US$36.2 million, of which Vietnam exported goods worth US$21.4 million, mainly coffee, peppers, cashew nuts, seafood, machinery and equipment, tools and spare parts, along with garments and textiles. Meanwhile, Tunisia’s key exports to the Vietnamese market include seafood, chemicals, machinery and equipment, plastics, garments and textiles, in addition to animal feed and raw materials. Hoang Duc Nhuan, Vietnamese Trade Councilor in Algeria, underlined the need to disseminate market information, organise seminars, forums, and international trade fairs like Vietnam Expo or Vietnam Food Expo in order to boost connectivity among businesses via both direct and online platforms in order to boost trade exchanges. He also suggested bringing into full play the meeting of the Vietnam-Tunisia intergovernmental committee, fine-tuning the legal framework by signing an Investment Promotion and Protection Agreement, a Memorandum of Understanding (MOU) on co-operation between Vietrade and the Tunisian Center for Export Promotion (CEPEC), and setting up business councils in both countries. IFC helps GreenFeed Vietnam expand sustainable livestock production The International Finance Corporation (IFC), a member of the World Bank Group, is set to pour approximately US$43 million in order to help GreenFeed Vietnam Corporation increase its pig breeding and farming capacity. The primary aim of the move is to help ensure a reliable supply of safe and quality pork, while simultaneously enhancing livestock production practices and supporting the Vietnamese growing livestock industry. IFC's investment is set to come through a seven-year bond and will allow GreenFeed to expand its pork production activities in Vietnam. The company's fattening pig production capacity is anticipated to increase by 750,000 pigs by 2023 and supply over 125,000 metric tonnes of pork annually, which the IFC estimates will benefit roughly 385,000 additional pork consumers. Pork remains a staple and a vital source of protein for Vietnamese consumers, accounting for up to 70% of the total meat consumption in the country. At present, about half of Vietnam’s pork is supplied by small-scale pig farms which typically have low biosecurity standards. Over the past two years, the spread of African Swine Fever (ASF), a fatal and highly contagious viral disease affecting pigs globally, within Vietnam has dramatically reduced supply, thereby causing a sharp rise in pork prices. Indeed, live hog prices are now some 50% higher than pre-ASF prices, after doubling since 2019. IFC's investment comes in alignment with the Government's target of producing 70% of the nation's pork in industrial farms which are both modern and biosecure. It is thought that this will serve to help address the severe pork supply shortage and the price volatility triggered by the ASF. "IFC's financing will help GreenFeed scale up its pig farming capacity, providing traceable and safe pork to meet the rising demand for animal-based food in Vietnam," said Ly Anh Dung, chairman of GreenFeed Vietnam Corporation. "IFC's support will also help us continue working toward becoming a leading player in the pork-based food value chain in Vietnam and globally, while adhering to Vietnam and global industry best practices,” Dung noted. "Adopting biosecure and sustainable production practices will help improve the resilience of Vietnam's livestock sector, ensuring a stable supply of vital animal protein products in the country," added Kyle Kelhofer, country manager for Vietnam, Cambodia, and Laos of IFC. "By supporting companies like GreenFeed, we are promoting the development of more efficient and sustainable local private enterprises along the agribusiness supply chain. This will help boost competition and improve farming standards, supporting the sector's continued modernization and implementation of international best practices," Kelhofer stated. Ha Giang tourism businesses seeking measures to survive Tourism businesses and authorities in the northern province of Ha Giang are implementing several solutions to survive amid the COVID-19 pandemic. The tourism sector was the first and worst impacted by the pandemic, with the number of tourists decreasing sharply and the number of tours dropping. Cancellation of bookings was common for local homestays, hotels and tourism businesses. The fourth wave of COVID-19 cases in late April this year has pushed many businesses into further difficulties. According to many tourism establishments, most tours to Ha Giang Province in June were cancelled. Dinh Quoc Khanh, owner of Sky View Homestay in Suoi Thau 2 Hamlet, Ban Luoc Commune of Hoang Su Phi District, said: “My homestay covers an area of 3,000 sq.m and we invested over VND4 billion (US$173,000). We just opened in early 2020.” “But since then, we have been continuously affected by the COVID-19 pandemic,” Khanh said. “During May and June this year, we had to cancel tours and refund tourists,” he said. The homestay owner had to find ways to maintain income while waiting for the pandemic to be brought under control and tourism activities to resume. “We decided to plant fruit trees such as plums, pears and peaches to increase our income as well as make the area greener,” she said. “Along with that, we are trying to promote our image, so that when the pandemic is controlled, we can welcome more guests,” Khanh said. For tourism businesses, the larger the investment, the greater the damage. H’mong Village Investment and Tourism Company is one example. With an investment of over VND80 billion (US$3.5 million), when it first came into operation last year, this facility was also continuously affected by the COVID-19 pandemic due to continuous postponment and cancellation, causing great losses to the business. In May and June this year, all accommodation bookings in H'Mong Village Resort. Quan Ba District, were cancelled due to the fourth wave of the pandemic spreading to many localities in the country. Lai Quoc Tinh, the company’s management board chairman, said: "In the difficult situation, we planned to lauch promotion programmes to assure tourists that Ha Giang is a safe destination.” “We built a programme to welcome tourists for 1 to 2 days, which is enough for visitors to experience the cultural space. The goal was to welcome tourists in Ha Giang and some neighbouring provinces," Tinh said. Nguyen Hong Hai, director of the provincial Culture, Sport and Tourism Department, said that Ha Giang was one of the provinces that did well in the prevention and control of the COVID-19 pandemic but the provincial tourism industry was still facing great difficulties. All business establishments, resorts, cultural villages, travel businesses and tourism-related services have been badly affected, he said. In the first six months this year, Ha Giang Province attracted an estimated 642,000 tourists, just 38 per cent of the regular figure, and total revenue from tourists reached VND1.157 trillion (US$50 million), 37.8 per cent of the yearly plan. Due to the pandemic, all cultural and tourism events in Ha Giang were postponed, meaning tourism and service businesses had no income. Business establishments still had to pay salaries, insurance for employees, rental fees and interest that caused losses to these establishments. “To help tourism businesses survive in the pandemic, the province has directed the tourism industry to coordinate with relevant sectors to focus on guiding and supporting tourism and service businesses to enjoy the supporting policies of the Government and the province to partly ease difficulties,” said Hai. The province also requested the establishments to strictly comply with anti-pandemic regulations and prepare well for when the pandemic was controlled, he added. HCM City economy expands by 5.46% in 1st half despite COVID Despite being hit hard by the COVID-19 pandemic, HCM City’s economy grew by 5.46 per cent in the first half of the year, according to the city Statistics Office. The outbreak has affected the growth of many industries, but smart growth by the services sector made up for the declines in others. It grew by 5.86 per cent year-on-year, with the commercial sector growing at 6.01 per cent, transportation and warehousing at 5.73 per cent, and finance, banking and insurance at 8.22 per cent. Industrial production grew at 4.16 per cent, double the rate in the same period last year and showing green shoots of recovery. Construction growth shrank to 0.98 per cent from 1.17 per cent since many projects were interrupted and prices of materials increased. Retail sales of consumer goods and services were estimated at VND541.68 trillion (US$23.6 billion), up 7.3 per cent. There were 18,441 newly registered enterprises with a total investment of nearly VND311trillion ($13.5 billion), year-on-year increases of 3.8 per cent and 39.2 per cent. But FDI decreased by nearly 30 per cent to $1.43 billion. Public investment has been worth only 25 per cent of the planned amount at VND9.09 trillion. Exports by city enterprises (including crude oil) rose by 5.6 per cent to $20.34 billion. They included five items exceeding $1 billion each: computers, electronic products and components ($7.7 billion), garment and textiles ($1.6 billion), machinery, equipment, tools, and parts ($1.13 billion), and footwear ($ 1.1 billion). Fruit, vegetable prices soar The prices of fresh fruit and vegetables sold at traditional markets in HCM City have soared over the last few days amid tightening of social distancing measures to curb the spread of COVID-19. On Monday tomatoes and cucumbers sold for VND25,000-30,000 ($1-1.3) a kilo, a rise of nearly VND10,000 a kilogramme compared to earlier this month. The price of other vegetables increased by VND5,000-10,000 a kilogramme, while some types of fruit and vegetables sold at double the previous prices. A trader at Ba Hoa Market in Tan Binh District said the prices of fresh fruit and vegetables sold at wholesale markets in the city had risen by 30 per cent. HCM City and many provinces are currently implementing social distancing measures to curb the recent COVID-19 outbreak, which has resulted in a spike in goods transport fares from other provinces to the city. Fresh fruit and vegetables transported to markets from other provinces are being sold at higher prices. However, the price of fresh fruit and vegetable sold at supermarkets has risen only slightly or remained the same. The Hoc Mon agricultural wholesale market in HCM City has been closed for one week, starting from Monday for disinfection following four COVID-19 infection cases. Nguyen Tien Dung, director of Hoc Mon Agriculture Wholesale Market Co said that infection cases were found after quick tests at the market on June 25. The city’s Department of Industry and Trade on Sunday shifted the supply of goods from Hoc Mon Market to Binh Dien and Thu Duc wholesale markets. It also asked supermarkets and businesses in the city to join the price stabilisation programme to ensure a sufficient supply of goods. New firms, registered capital hit records on business optimism The number of new firms set up in the first half of this year and the capital registered to be poured into the economy hit record highs, reflecting the business optimism for post-pandemic recovery. The latest updates from the General Statistics Office (GSO) showed that nearly 67,100 new firms were established in the first half of this year with a total registered capital of VND942.6 trillion (US$40.6 billion) employing 484,300 people, representing a rise of 8.1 per cent, 34.3 per cent and a drop of 4.5 per cent, respectively. On average, each new firm had a registered capital of VND14.1 billion, 24.2 per cent higher than the same period last year. Bui Anh Tuan, Director of the Ministry of Planning and Investment’s Agency for Business Registration, said the number of new firms in the first half of this year hit a record high ever, breaking the previous record of 66,958 firms recorded in the first half of 2019. “This is a special record in the outbreak of the COVID19-pandemic since the end of April with the most complicated development so far,” Tuan said. "The record new firms demonstrated the business optimism on the economic recovery and business opportunities." Together with nearly VND1.2 trillion worth of additional capital from 23,700 existing enterprises, more than VND2.09 trillion was registered to be poured into the economy, excluding two new firms with unusually huge registered capital of VND25 trillion and VND500 trillion on May 20 in HCM City. This also set a new record for the registered capital, Tuan said. “This is a positive sign, reflecting the recovery of production and business,” he added. Still, the pandemic was heavily affecting the production of business of many enterprises, especially those operating in virus-hit sectors such as trade and services and those of small and medium sized enterprises, he said. He added that most enterprises which temporarily halted operation or were dissolved were those which were operating for less than five years, of small scale and operating in the virus-hit sectors. About 26,100 enterprises resumed operations in the first half of this year, 3.9 per cent higher than the same period in 2020. On average, 15,500 enterprises were set up and resumed operation each month. In June alone, 11,300 enterprises were created with a total registered capital of VND164.3 trillion, a drop of 2.5 per cent in the number of new firms but a increase of 9.1 per cent in the registered capital, together with more than 4,800 enterprises returning to the market. June saw 3,877 firms temporarily halt operations, up by 20.2 per cent, 5,238 waiting for dissolution procedures, up 36.3 per cent and 1.919 completing dissolved, up by 40.3 per cent over the same period last year. GSO’s survey on enterprises operating in the processing and manufacturing industry in the second quarter of this year showed that 30.5 per cent saw better business than the first quarter, 37.7 per cent saw stable while 38.6 per cent saw a more difficult business climate. More than 39 per cent expected better business in the third quarter while 22 per cent forecast difficult times ahead. Business community plays important role in Viet Nam-US ties: Deputy PM The US business community plays an important role in promoting economic partnership between Viet Nam and the US, Deputy Prime Minister Pham Binh Minh has said. The Deputy PM was speaking during online talks with US firms on Wednesday to discuss promoting bilateral ties and supporting Viet Nam in its post-pandemic recovery and development. At the event, which gathered representatives of nearly 500 US firms, Minh said the Vietnamese Government is working hard to control COVID-19 and boost economic growth. He said Viet Nam has maintained positive growth, with an expansion of 2.91 per cent in 2020 and 5.64 per cent in the first half of 2021. Meanwhile, the International Monetary Fund has forecast that the Vietnamese economy will expand 6.5 per cent this year. The Deputy PM said economic cooperation plays a key role in Viet Nam-US relations. Two-way trade has grown to US$90 billion in 2020 from $450 million in 1994. Over the years, the US has been the largest export market of Viet Nam, while the country is 11th out of 40 countries and territories investing in Viet Nam, with a total capital of nearly $10 billion. Combined with investment through a third country, US investors have poured more than $14 billion into Viet Nam, noted Minh, adding that many leading American firms are prospering in Viet Nam. Deputy PM Minh recognised and lauded the contributions of US businesses, including the US Chamber of Commerce, US-ASEAN Business Council, and Business Council for International Understanding, in deepening economic ties between the two countries. The Vietnamese Government is always willing to listen to straightforward and constructive opinions from US firms regarding the national investment and business environment, as well as ideas on measures to enhance ties between the two countries, said Minh. The Deputy PM praised the US commitment of $4 billion to the COVID-19 Vaccines Global Access (COVAX) initiative, expressing a hope that the government and businesses of the US will continue helping Viet Nam access vaccine sources as well as vaccine production technology. Representatives of the US firms hailed Viet Nam’s achievements in COVID-19 prevention and control, as well as the economic cooperation potential between the two countries. They proposed a number of ideas on how to foster bilateral cooperation in digital economy, infrastructure building, renewable and green energy, and sustainable development, as well as collaboration in areas of Viet Nam’s demand and the US' strength. They spoke highly of the coordination among ministries, sectors and localities of Viet Nam in seeking measures to remove obstacles facing foreign investors. Participants also discussed initiatives and solutions to support Viet Nam in accessing vaccine supplies and seeking cooperation in vaccine production, as well as in post-pandemic economic recovery and development. Experts call for speeding up life-course immunisation in Southeast Asia Vaccination remains one of the most cost-effective interventions available to protect against infectious diseases, a report titled ‘The Decade of Healthy Ageing in ASEAN: Role of Life-Course Immunisation’ has emphasised. Released by the EU-ASEAN Business Council, KPMG in Singapore and drug company Sanofi with support from the Western Pacific Pharmaceutical Forum (WPPF), it lists healthy ageing barriers in Southeast Asia and calls for urgent and greater focus on implementing life-course immunisation. With age, the immune function goes into decline, increasing older people’s susceptibility to infectious diseases such as the flu and pneumonia, which can cause other health risks and complications, and vaccination helps protect against the diseases, it said. Despite the obvious benefits, Southeast Asia lags behind the rest of the world in life-course immunisation, falling significantly short of the 75 per cent target rate set by the World Health Organization, it added. John Jackson, president of the WPPF, said: “While the region focuses on COVID-19, and rightly so, we need to also give attention urgently to another pressing issue, ageing societies. “As we age, we are more susceptible to health complications. Many diseases that afflict the elderly can be thwarted by immunisation. Yet, the role and value of life-course vaccination or vaccination at every stage of life beyond childhood is not fully realised. “Today’s report provides a starting point for governments across the region to implement incremental policy changes that can further empower healthy ageing and economies. The report, which seeks to inform programming and high-level dialogue at the regional and local levels, covers Singapore, Malaysia, Thailand, Viet Nam, the Philippines, and Indonesia with insights and inputs from 27 experts in the six countries as well as Switzerland and the US. Chris Humphrey, executive director of the EU-ASEAN Business Council, said: “This report shows us the dividends that we can harness by better ensuring a healthier, more productive older working population. Southeast Asia needs to start planning now to ensure that we take the right policy action including preventative care.” Eric Mansion, general manager, Asia Zone, Sanofi Pasteur, said: “Health is wealth but protecting our older adults goes beyond monetary impacts [since] healthy ageing allows ageing populations to enjoy a good quality of life in their golden years and contribute meaningfully to social situations and beyond. “Life-course immunisation should urgently be prioritised as a vital part of healthy ageing policies in Southeast Asia to lessen the impact of ageing societies and to protect against vaccine-preventable diseases.” Jackson said: “Although further implementing life-course immunisation programmes will be a costly and logistically complex endeavour, the alternative will be far more expensive and not just in monetary terms. “Time is running out, and swift, decisive action to address the issues that threaten to undermine having a healthy, ageing population is imperative.” Shares bounce back on strong growth of securities group Shares advanced on Thursday after a slight drop in the previous session, boosted by strong growth of brokerage companies. On the Ho Chi Minh Stock Exchange, the VN-Index increased 0.61 per cent to close the trade at 1,417.08 points. The southern market’s index inched down 0.1 per cent on Wednesday. Meanwhile, the HNX-Index on the Ha Noi Stock Exchange gained 0.74 per cent to end the day at 325.72 points. The northern market’s index also lost 0.1 per cent on Wednesday. The market breadth was positive with 312 gainers, 257 losers and 138 unchanged on the two markets. Market liquidity was high with 910 million shares worth VND29.9 trillion (US$1.3 billion) traded, up 30 per cent in volume and 27.5 per cent in value compared to Wednesday’s levels. The securities industry led the market with an average growth of more than 5 per cent, according to data on vietstock.vn. Many shares hit the intra-day maximum growth, including Vietinbank Securities (CTS), Bao Viet Securities (BVS), BIDV Securities (BSI), Agribank Securities (AGR) and MB Securities (MBS). Of which, AGR’s liquidity increased substantially to more than 11 million shares, the highest in the past year, following information that its estimated six-month profit before tax reached VND160 billion, up 132 per cent compared to the same period last year and exceeding the profit plan for the whole year. Saigon Securities Inc (SSI), the biggest brokerage house on the stock market, also gained 4.5 per cent, closing Thursday at VND57,500 ($2.48) per share, setting a new record high since going public. On Thursday, the liquidity of all securities groups reached more than VND2.7 trillion and was also net bought by foreign investors. Besides securities, the building materials industry, which represents the two big names – Hoa Phat Group (HPG) and Hoa Sen Group (HSG) – also performed positively. HPG increased by 4.5 per cent and HSG rose 1.7 per cent. Blue chips maintained growth momentum on Thursday as 22 of the top 30 largest shares by market value and liquidity gained value and only seven declined. Ending June, Viet Nam’s stock market was the second best performer in the world with a six-month growth of 27.6 per cent, only behind Saudi Arabia’s Adu Dhabi Index. The market capitalisation also increased more than 29 per cent while the trading value soared 146 per cent compared to the same period of 2020. According to KB Securities Vietnam (KBSC), Viet Nam’s stock market is predicted to sustain its growth in the latter half of this year, propped up by recovery in production and business activities of listed companies, especially the large-cap firms in banking, steel, securities, utilities and IT. However, a correction phase may happen in the second half of the third quarter when the positive effects from the second quarter business results reporting season are over, analysts at KBSC said in a note. VCI repurchases over $21 million unmatured bonds Viet Capital Securities JSC (VCI) just announced the repurchase of bonds prior to maturity, which were issued in 2020. Accordingly, the securities firm agreed to buy back 50,000 bonds, worth VND500 billion (US$21.7 million). The deal will be carried out 10 days after the announcement, starting from July 7 to July 12. VCI has raised over VND1.35 trillion through bond issuance since the beginning of the year to increase the size of working capital. Of which, it will divide the fund to supplement capital for government bond business activities, pay expenses related to the bond issuance, and supplement regular operating capital. On June 21, VCI also completed the issuance of 166.5 million shares. Therefore, the company's charter capital doubled from nearly VND1.67 trillion to VND3.33 trillion. Issuance rate was 1:1, meaning shareholders with one share will receive one new share. Issuing value at par value of nearly VND1.67 trillion. In 2021, the company set a target of VND2.05 trillion in revenue and VND1.25 trillion in profit after tax, up 18.5 per cent and more than 31 per cent, respectively, compared to the previous year. The forecasted numbers were based on the current situation of the stock market and expectation that the VN-Index will hover around 1,250 points at the end of this year. VCI said that the main driving force of the global economy in 2021 is that the pandemic is brought under control. COVID-19 will gradually be contained with the production and distribution of vaccines in many countries around the world this year, including Viet Nam. On the Ho Chi Minh Stock Exchange (HoSE), VCI shares were traded at VND53,000 per share yesterday. Further FDI incentives forecast to spur on high-value inflows While 2021’s difficulties have significantly hurt Vietnam’s foreign direct investment mobilisation so far this year, the remarkable increase of the average size of ventures that are going ahead is reflecting an improvement in quality of selection. Bright spots for foreign direct investment (FDI) mobilisation in the first half of the year mainly come from new and additionally-registered investment, according to the latest announcement from the Ministry of Planning and Investment’s Foreign Investment Agency (FIA). Of these, 804 projects – down 43.3 per cent on-year – received new investment certificates, with the total registered capital of nearly $9.55 billion, a rise of 13.2 per cent on-year. Explaining the decrease of project numbers and the rise of newly-registered capital, FIA director general Do Nhat Hoang said that the number of small-scale initiatives have dropped in particular. The number of new projects under $5 million in the first half declined by 48.2 per cent on-year, and by 56.1 per cent over 2019, while the number of new projects between $5-50 million was also reduced by 13.4 per cent on-year. “However, the number of new projects with more $50 million has risen by 73.3 per cent on-year,” Hoang said. The most outstanding of these projects remains the Long An I and II liquefied natural gas scheme developed by VinaCapital GS Energy Pte., Ltd., a joint venture between South Korean GS Energy and VinaCapital. They were granted investment certificates in March and are expected to be put into operation by the end of 2025 with capacity of 3,000MW. Meanwhile the billion-dollar O Mon II thermal power plant developed by a joint venture between Vietnam Trading Engineering Construction JSC and Marubeni Corporation from Japan was granted an investment certificate in January. Despite the prolonged pandemic, many overseas investors are attempting to retain commitment and belief in Vietnam’s investment climate through the expansion and increase of FDI over recent times. In the first half of 2021, 460 projects – down 12.5 per cent on-year – increased capital with a total of $4.12 billion, up 10.6 per cent on-year. The most contributions are the adjustment of Polytex Far Eastern Vietnam Co., Ltd. from Taiwan, which raised its capital by $610 million in May, and LG Display Haiphong of South Korea with the capital by $750 million in February. Hoang of the FIA also highlighted that while the number of newly- and additionally-registered projects declined, “the average size of a new project has soared to $11.8 million per venture from about $6 million in the first half of last year, and adjusted project have risen to $8.9 million each from $7.1 million last year.” However, capital contributions and share purchases were still on the downtrend during 2020 and in the first half of 2021. There were only 1,855 such instances – down 55 per cent on-year, and the total investment of $1.61 billion - down 54.3 per cent on-year in the first half of the year. “The health crisis has significantly hit deals because investors need to research the market and business operations carefully before making any decision of capital contributions and share purchases,” Hoang explained. “The difficulties in travel since last year have been holding back numerous decisions and plans of investors.” The total newly-registered and added capital, as well as capital contributions and share purchases in the first half of 2021, amounted to $15.27 billion, equalling 97.4 per cent on-year. Of this, new and additionally-registered FDI captures almost 90 per cent of total FDI, and soared by 12.4 per cent. The FIA stated that some reasons could explain the decrease of the number of new, adjusted, and capital-contribution and share-purchase projects. Global FDI activities are on a downtrend and the pandemic is still causing chaos, and most countries are still heavily restricting travel. “Vietnam’s selective investment attraction policies have reduced the volume and increased the value. However, some investment and business procedures are still challenging investors, and it is difficult to find out new effective measures replacing the old investment promotion activities,” Hoang added. He highlighted some advantages and disadvantages of FDI mobilisation, as well as an expected boom in such investment when new policies on incentives and management of industrial zones will be adopted in the near future. SBV asked to weigh piloting virtual currencies The prime minister has requested the State Bank of Vietnam (SBV) to study and pilot the use of virtual currencies from 2021 to 2023. Under a prime minister's decision on the e-Government development strategy heading toward the digital Government in 2021-2025, the study, development and pilot of virtual currencies is one of the missions to master core technologies. To date, Vietnam has yet to determine a clear definition of virtual currencies and assets. The trading of Bitcoin, Etherum and the like has become popular among financial investors worldwide. However, in Vietnam, the central bank has repeatedly affirmed that virtual currencies are not legal e-money and cryptocurrencies remain an illegal means of transaction in Vietnam. SBV and the Ministries of Justice and Finance are building a legal foundation for the management of virtual currencies and assets. The Ministry of Finance has established a team to study virtual currencies and assets. The prime minister also sought the study and development of core technologies. The Ministry of Science-Technology and Information-Communications were assigned to boost the study of technologies where Vietnam has an advantage, such as Artificial Intelligence, blockchain, virtual reality/augmented reality and Big Data. Ecommerce platforms required to provide sellers’ data to tax agencies Ecommerce platforms will have to provide certain personal data of sellers to tax agencies on a monthly basis, as regulated in Circular No. 40/2021 which will take effect from August 1 this year. The Ministry of Finance has issued Circular No. 40 giving guidelines on value added tax, personal income tax and tax management for business households and business individuals. Under the circular, business individuals offering ecommerce services, including those earning revenue from digital products and services, have been added to the list of taxpayers. Commenting on the tax collection methods for these business individuals, Nguyen Thi Lan Anh, head of the Tax Administration Department on Small and Medium Enterprises, Business Households and Individuals under the ministry’s General Department of Taxation, said that ecommerce platforms will have to make tax statements and pay taxes on behalf of business individuals as stipulated in Clause 1, Article 8, of the circular. To do this, Lan said that ecommerce platforms will identify taxable revenues and the amount of taxes they have to pay on behalf of business individuals based on revenues and other earnings that these business individuals have obtained via ecommerce platforms. The other earnings include the amount of money gained through delivery service providers and intermediary payment services. Ecommerce platforms will record all the information about tax statements and tax payments that they paid on behalf of sellers, Anh told a virtual conference held by the General Department of Taxation on June 15. Ecommerce platforms are also required to provide invoices and other legal documents for each order for buyers and sellers from now on. Sellers have to provide invoices and related documents upon the request of buyers, in line with prevailing regulations. She added that ecommerce platforms are responsible for providing e-information about sellers’ full names, identity cards/passports, tax codes, email addresses, residential addresses, phone numbers, revenues and bank accounts to tax agencies monthly. As for platforms that have insufficient data as mentioned above, they have to update their data system before August 1 this year, she noted. In addition, sellers on ecommerce platforms were required to have fixed business locations and register for tax at their place of business to be granted tax codes. Besides this, sellers have to provide business information for ecommerce platforms, including names, addresses of their business locations, business registration certificate/tax codes, phone numbers, information about products, services, prices, delivery services and payment methods. Nguyen Thi Thanh Huyen, deputy general director of EY Vietnam Company, said that Circular No.40 taking effect from August 1 would leave a huge impact on enterprises and such a regulation is unprecedented. She added that up to 3.5 million transactions are made on e-commerce platforms each day in Vietnam. Ecommerce platforms handle a substantial amount of workload every day. Therefore, tax agencies should arrange groups of IT experts in the taxation sector to coordinate with ecommerce platforms to upgrade their infrastructure to serve the tax administration, Huyen suggested. Vu Thi Minh Tu, director of Lazada Company, proposed the local taxation authority work out a feasible roadmap to implement the circular as well as issue guidelines on which State agencies are authorized to ask for information and the scope of information from enterprises to ensure information security and avoid violating regulations of other sectors. Wrapping up the online event, Dang Ngoc Minh, deputy head of the General Department of Taxation, said that all feedback from businesses on the circular was recorded. Tax authorities will study and suggest solutions to address problems arising in the tax management on ecommerce platforms and submit them to the higher authority for consideration. Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes |
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